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Registered number: 15812369
TOWER TRADING GROUP (LP) LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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TOWER TRADING GROUP (LP) LTD
COMPANY INFORMATION
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J R Taylor (appointed 1 July 2024)
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S Bhana (appointed 1 July 2024)
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Chartered Accountants & Statutory Auditor
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TOWER TRADING GROUP (LP) LTD
CONTENTS
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Independent Auditors' Report
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Consolidated Statement of Comprehensive Income
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Consolidated Statement of Financial Position
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Company Statement of Financial Position
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Consolidated Statement of Changes in Equity
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Company Statement of Changes in Equity
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Consolidated Statement of Cash Flows
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Consolidated Analysis of Net Debt
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Notes to the Financial Statements
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TOWER TRADING GROUP (LP) LTD
GROUP STRATEGIC REPORT
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
The directors present the strategic report for Tower Trading Group LP Ltd ("the Group") and Tower Trading Group LP Ltd ("the Company") for the period ending 31 March 2025.
The Company was incorporated on 1 July 2024 and on 25 July 2024 acquired the Group formerly known as "TTG Options LLP". The principal activity of the Group is that of trading derivatives in financial markets. The principal activity of the Company is that of a holding company.
As reported in the Statement of Comprehensive Income, the Group generated trading revenues of £14,971,929 and made an operating profit of £2,070,564 for the 9 month period.
Principal risks and uncertainties
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Management continually monitors the Group's key risks and assesses the controls used to manage these risks. The board of directors formally reviews and documents the principal risks the business face on an ongoing basis.
The revenues are related to the trading of interest rate options and futures in Euribor and SONIA on the ICE exchange.
The Group's main risk is the volatility or lack of it in the derivative markets.
Financial key performance indicators
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Management use spreadsheets and risk tools to monitor and manage the risk to the business.
The principal indicators are as follows:
Turnover: £14,971,929.
Operating profit: £2,070,564.
Management also monitor cash balances on a regular basis to ensure sufficient liquidity.
Other key performance indicators
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Other key performance indicators include trading returns.
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TOWER TRADING GROUP (LP) LTD
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
Directors' statement of compliance with duty to promote the success of the Group
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The directors of the Group are acutely aware of the requirement to act in a way that is most likely to promote the success of the Group for the benefit of its members as a whole. In considering this duty the directors consider the following stakeholders:
Shareholders
The directors ensure that the business strategy of the Group is completely aligned with the strategic objectives of the shareholders.
Employees
Directors and staff meet on a regular basis and interact freely with each other. The Group also provides internal communications when needed and flexibility on working hours and holidays. The management offers training to staff when required to improve their skills and experience.
Suppliers
The Group does have significant costs attributed to various financial data vendors, which allows the Group to operate and continue trading. The directors are aware that the Group is open to risk in the event that these suppliers were to fail however the Group have taken the necessary steps to limit this risk.
This report was approved by the board and signed on its behalf.
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TOWER TRADING GROUP (LP) LTD
DIRECTORS' REPORT
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
The directors present their report and the financial statements for the 9 month period ended 31 March 2025.
Directors' responsibilities statement
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The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of the Company is that of holding an investment in a group that are trading derivatives in financial markets.
The loss attributable to owners of the parent company for the 9 month period, after taxation and minority interests, amounted to £113,223.
The directors did not declare a dividend.
The directors who served during the 9 month period were:
J R Taylor (appointed 1 July 2024)
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S Bhana (appointed 1 July 2024)
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We expect the Group to continue trading within the derivatives and financial markets sector for the foreseeable future. Specifically, the Group will continue to trade the ICE derivative markets in Euribor and SONIA.
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TOWER TRADING GROUP (LP) LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
Engagement with suppliers, customers and others
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Engagement with suppliers, customers and others is disclosed in the Strategic report.
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.
No events have occurred after the period end that require disclosure in these financial statements.
Under section 487 (2) of the Companies Act 2006, BKL Audit LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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TOWER TRADING GROUP (LP) LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOWER TRADING GROUP (LP) LTD
We have audited the financial statements of Tower Trading Group (LP) Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the 9 month period ended 31 March 2025, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
∙give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 March 2025 and of the Group's profit for the 9 month period then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
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In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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TOWER TRADING GROUP (LP) LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOWER TRADING GROUP (LP) LTD (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Directors' Report for the financial 9 month period for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
∙the parent Company financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
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As explained more fully in the Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
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TOWER TRADING GROUP (LP) LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOWER TRADING GROUP (LP) LTD (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙Enquiring of management around actual and potential litigation and claims;
∙Reviewing financial statement disclosures and testing supporting documentation to assess compliance with applicable laws and regulations;
∙Performing audit work over the risks of management override of controls, including testing of journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business and accounting estimates for bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
∙Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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TOWER TRADING GROUP (LP) LTD
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF TOWER TRADING GROUP (LP) LTD (CONTINUED)
∙Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
Catalina Feier (FCA) (Senior Statutory Auditor)
for and on behalf of
BKL Audit LLP
Chartered Accountants
Statutory Auditor
35 Ballards Lane
London
N3 1XW
18 September 2026
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TOWER TRADING GROUP (LP) LTD
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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9 month period ended 31 March
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Interest receivable and similar income
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Interest payable and similar expenses
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Profit for the financial 9 month period
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Profit for the 9 month period attributable to:
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Non-controlling interests
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Owners of the parent Company
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There were no recognised gains and losses for 2025 other than those included in the consolidated statement of comprehensive income.
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The notes on pages 17 to 36 form part of these financial statements.
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TOWER TRADING GROUP (LP) LTD
REGISTERED NUMBER: 15812369
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
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Debtors: amounts falling due within one year
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Current asset investments
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Equity attributable to owners of the parent Company
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Non-controlling interests
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 36 form part of these financial statements.
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TOWER TRADING GROUP (LP) LTD
REGISTERED NUMBER: 15812369
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Net current (liabilities)/assets
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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(Loss) for the 9 month period
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Profit and loss account carried forward
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 36 form part of these financial statements.
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TOWER TRADING GROUP (LP) LTD
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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Equity attributable to owners of parent Company
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Non-controlling interests
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Comprehensive income for the 9 month period
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Loss for the 9 month period
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Equity attributable to non controlling interest
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Contributions by and distributions to owners
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Shares issued during the 9 month period
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The notes on pages 17 to 36 form part of these financial statements.
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TOWER TRADING GROUP (LP) LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
Comprehensive income for the period
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Loss for the 9 month period
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Contributions by and distributions to owners
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Shares issued during the 9 month period
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The notes on pages 17 to 36 form part of these financial statements.
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TOWER TRADING GROUP (LP) LTD
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
Cash flows from operating activities
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Profit for the financial 9 month period
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Amortisation of intangible assets
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(Increase)/decrease in debtors
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(Increase)/decrease in amounts owed by non controlling interests
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Increase in amounts owed to non controlling interests
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Deferred tax asset released
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Increase/ (decrease) in liabilities at fair value
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(Increase)/ decrease in assets at fair value
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Profit attributable to non-controlling interests included within debtors and creditors
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of intangible fixed assets
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Purchase of tangible fixed assets
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Net cash from investing activities
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TOWER TRADING GROUP (LP) LTD
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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Cash flows from financing activities
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Net cash used in financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at the end of 9 month period
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Cash and cash equivalents at the end of 9 month period comprise:
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The notes on pages 17 to 36 form part of these financial statements.
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TOWER TRADING GROUP (LP) LTD
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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Acquisition and disposal of subsidiaries
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The notes on pages 17 to 36 form part of these financial statements.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
The principal activity of Tower Trading Group LP ("the Group") is that of trading derivatives in financial markets. The principal activity of the Company is a holding company.
The Company is a private company limited by shares and is incorporated in England and Wales.
The Registered Office address is 30 Old Broad Street, London, England, EC2N 1HT and principal place of business is 30 Old Broad Street, London, England, EC2N 1HT.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
The Company was incorporated on 1 July 2024 and on 25 July 2024 acquired the Group formerly known as "TTG Options LLP".
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
2.Accounting policies (continued)
The financial statements have been prepared on a going concern basis, which assumes that the Company will continue in operational existence and be able to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of these financial statements.
The Company made a loss after tax of £ 481,362 during the period, reporting net current liabilities of £2,213,439 and an overall net liabilities position of £481,223.
In assessing the appropriateness of the going concern basis, the directors have reviewed the Group's and Company's forecasts and budgets for the period of at least twelve months from the date of approval of these financial statements. Based on this assessment, including a review of post year end trading results and a strong liquidity position, the directors are satisfied that the Group and Company have sufficient financial resources to continue in operational existence and meet their liabilities as they fall due.
Included within other creditors are amounts owed to a related party of £680,562. The Company and Group have obtained assurances that the balance will not be recalled unless the Company and Group has sufficient financial resource to settle the balance. As a result, the directors have prepared the financial statements on a going concern basis.
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Consolidated Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
2.Accounting policies (continued)
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue comprises profits and losses derived from dealings in futures and options, together with market maker and other rebates.
In accordance with accepted practice, the profits and losses from dealings in futures and options include unrealised profits and losses at the period end, as open positions are included at market value.
The directors consider this to be necessary to show a true and fair value, since the marketability of the instruments enables decisions to be taken continually about whether to hold or sell them.
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Operating leases: the Group as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
Finance costs are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
2.Accounting policies (continued)
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life of 10 years.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
Current asset investments are open positions on the Group's derivatives trading and these are measured at fair value through profit and loss as determined by market forces and the gains and losses arising are recognised in turnover.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
The Group only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like other debtors.
(i) Financial assets
Basic financial assets, including other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Such assets are subsequently carried at amortised cost using the effective interest method.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
2.Accounting policies (continued)
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Financial instruments (continued)
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At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the Statement of Comprehensive Income.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
(ii) Financial liabilities
Basic financial liabilities, including other creditors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
(iii) Offsetting
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the year end date and the amounts reported for revenue and expenses during the year end. However, the nature of estimation means that actual outcomes could differ from those estimates.
The following are key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year:
∙Brokerage costs are accrued in respect of transactions executed prior to the year end but for which final settlement confirmations are received after the reporting date. The accrual is based on management's best estimate of costs incurred, taking into account contracts with counterparties, historical settlement patterns, transaction data received up to the reporting date and, where applicable, estimates of volumes and rates not yet confirmed.
∙The fair value of the earn-out liability recognised as contingent consideration within a business combination requires management to make estimates regarding the future financial performance of the acquired business and the likelihood of achieving the agreed performance targets. Changes in these assumptions could result in a material adjustment to the carrying value of the earn-out liability and the associated goodwill recognised on acquisition.
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An analysis of turnover by class of business is as follows:
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Designated market maker rebates
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Net trading profits and other income
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All turnover arose within the United Kingdom.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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The operating profit is stated after charging:
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Other operating lease rentals
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During the 9 month period, the Group obtained the following services from the Company's auditors and their associates:
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Fees payable to the Company's auditors and their associates for the audit of the consolidated and parent Company's financial statements
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Fees payable to the Company's auditors and their associates in respect of:
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The auditing of accounts of subsidiaries of the Company
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Taxation compliance services
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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Staff costs were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the 9 month period was as follows:
Directors - Group (3) Company (2)
Administration - Group (2) Company (0)
IT development and maintenance - Group (3) Company (0)
Back office - Group (1) Company (0)
Total - Group (9) Company (2)
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Current tax on profits for the year
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
8.Taxation (continued)
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Factors affecting tax charge for the 9 month period/period
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The tax assessed for the 9 month period/period is higher than the standard rate of corporation tax in the UK of. The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
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Non-tax deductible amortisation of goodwill and impairment
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Unrelieved tax losses carried forward
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Total tax charge for the 9 month period/period
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Factors that may affect future tax charges
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The Group have unrelieved tax losses amounting to £200,000 which are available to be offset against future trading profits.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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Charge for the 9 month period on owned assets
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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Investments in subsidiary companies
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The following were subsidiary undertakings of the Company:
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30 Old Broad Street, London, England, EC2N 1HT
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Trading derivatives in financial markets
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TTG Options Markets Limited *
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30 Old Broad Street, London, England, EC2N 1HT
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30 Old Broad Street, London, England, EC2N 1HT
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Trading derivatives in financial markets
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30 Old Broad Street, London, England, EC2N 1HT
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30 Old Broad Street, London, England, EC2N 1HT
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Tower Trading Group (EQ) Ltd
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30 Old Broad Street, London, England, EC2N 1HT
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* indirect holdings.
TTGEQ Ltd and Tower Trading Group (EQ) Ltd have both been excluded from the consolidation on the basis that they are immaterial to the consolidated financial statements.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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Amounts owed by non controlling interests
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Prepayments and accrued income
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Current asset investments
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The short term investments are financial assets at fair value through profit or loss, and held as part of a trading portfolio.
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Cash and cash equivalents
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Included within cash and cash equivalents is £2,330,641 held with the clearing agents through which the subsidiary LLP trades.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Amounts owed to non controlling interests
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Other taxation and social security
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Earnout liability (Note 20)
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Accruals and deferred income
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Amounts owed to group undertakings are interest free, unsecured and repayable upon demand.
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Creditors: Amounts falling due after more than one year
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See note 20 for further details.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
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Financial assets measured at fair value through profit or loss
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Derivative financial instruments measured at fair value through profit or loss held as part of a trading portfolio
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Financial assets and liabilities are measured at fair value through profit or loss and comprise open positions held with the clearing agents through which the subsidiary LLP trades.
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Allotted, called up and partly paid
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100 Ordinary A shares shares of £0.01 each
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12,519 Ordinary B shares shares of £0.01 each
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1,250 Ordinary C shares shares of £0.01 each
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During the period, 100 Ordinary A shares were issued for consideration of £1.
During the period, 12,519 Ordinary B shares were issued for consideration of £125.19.
During the period, 1,250 Ordinary C shares were issued for consideration of £12.50.
Subject to the Shareholders' Agreement and the Articles of Association, the A Ordinary Shares carry full voting rights but have no entitlement to dividends or to distributions on a winding up of the Company. The B Ordinary Shares and C Ordinary Shares carry no voting rights but are entitled to dividends and rank equally in any distribution on a winding up of the Company.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
Non controlling interests
Non-controlling interests represent the portion of the equity and results of subsidiary undertakings attributable to interests not owned, directly or indirectly, by the Group. They include the accumulated profits and losses attributable to non-controlling interests since acquisition.
Profit and loss account
Profit and loss account includes accumulated profit and losses incurred to date.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
On 25 July 2024 Tower Trading Group LP Ltd acquired 80.36% of the Group formerly known as "TTG Options LLP". The principal activity of the Group is that of trading derivatives in financial markets.
Goodwill arises on the acquisition of subsidiary undertakings and represents the excess of the fair value of the consideration transferred, together with the recognised amount of any non-controlling interest, over the fair value of the identifiable assets, liabilities and contingent liabilities acquired at the acquisition date.
The consideration transferred includes both amounts paid on completion and the fair value of contingent
consideration arrangements where payment is dependent on future events or performance conditions.
Contingent consideration is recognised at its fair value at the acquisition date and included in the calculation of goodwill. Where the contingent consideration is payable at a future date, the liability is initially recognised at its discounted present value using an appropriate discount rate. Subsequent changes in the expected amount payable under earnout arrangements are recognised in accordance with FRS 102 and do not adjust the amount of goodwill initially recognised unless they relate to the correction of a measurement-period error.
In calculating the goodwill arising on acquisition, the fair value of the acquired Group's identifiable net assets was assessed as follows:
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Acquisition of TTG Options LLP Group
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Recognised amounts of identifiable assets acquired and liabilities assumed
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Total Identifiable net assets
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Total purchase consideration
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
20.Business combinations (continued)
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Total purchase consideration
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Cash outflow on acquisition
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Purchase consideration settled in cash, as above
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Less: Cash and cash equivalents acquired
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Net cash outflow on acquisition
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The acquisition costs were borne by a separate company under common control.
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The results of TTG Options LLP Group since acquisition are as follows:
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Current period since acquisition
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Profit for the period since acquisition
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The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the entity in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £62,650. Contributions totalling £4,705 were payable to the fund at the reporting date.
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Commitments under operating leases
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The Group and the Company had no commitments under non-cancellable operating leases at the reporting date.
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TOWER TRADING GROUP (LP) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 9 MONTH PERIOD ENDED 31 MARCH 2025
|
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Related party transactions
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During the year, total remuneration of £214,937 was paid to a director of a subsidiary company within the group. Pension contributions to the director amounted to £18,119. There were no pensions accruing to directors within the group at year end.
Included within other debtors are amounts owed from a company under common control amounting to £76,643.
Included within other creditors are amounts owed to companies under common control amounting to £680,562.
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No events have occurred after the period end date that require disclosure in these financial statements.
The ultimate controlling party of the Company and Group is J R Taylor by virtue of his majority shareholding.
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