HFMC Asset Management Limited - Limited company accounts 20.1

REGISTERED NUMBER: 03891979 (England and Wales)

FOR

Page

Company Information  

1

Strategic Report  

2

Report of the Directors  

4

Report of the Independent Auditors  

6

Statement of Comprehensive Income  

8

Statement of Financial Position  

9

Statement of Changes in Equity  

10

Notes to the Financial Statements  

11

DIRECTORS:

J N J Hoyland

M E Waller

S Dunn

R H Ibbotson

P Patient

SECRETARY:

L A R Paris

REGISTERED OFFICE:

Russell House

140 High Street

Edgware

Middlesex

HA8 7LW

REGISTERED NUMBER:

03891979 (England and Wales)

AUDITORS:

Moore Kingston Smith LLP

Devonshire House

60 Goswell Road

London

EC1M 7AD

The directors present their strategic report for the year ended 5 April 2020.

REVIEW OF BUSINESS

The company received fees during the period of £1,605,284 (2019: £1,742,617) including management fees totalling £66,200 (2019: £45,200) in the period from group undertakings. The company is regulated by the FCA (Financial Conduct Authority).

The directors are satisfied with the performance of the company during the period. The only KPI of the company is the continued monitoring of the FCA's capital requirements.

The company's only business risk is the capital requirements under FCA regulations. The company monitors these requirements and is supported by related party companies, which ensures all capital commitments are met.

The directors foresee that the principal activities of the Company will remain constant and are confident with the assistance of related parties that the Company will continue to be able to monitor the FCA's capital requirements.

PRINCIPAL RISKS AND UNCERTAINTIES

Asset Valuation Risk

As an increasing proportion of the revenues of the Company relate to the value of the assets managed, reduction in the value of such assets will adversely impact upon topline revenues. Subject to the risk profiles of our clients a prudent approach is taken with regard to both advisory and discretionary asset management.

Interest Rate Risk

The Company's exposure in this regard is minimal in that the Company has almost no borrowings and surplus funds are placed in short-term deposits where returns are currently close to zero. The risk is therefore only in the more generalised sense of increasing interest rates potentially slowing economic activity and hence impacting clients in relation to mortgages demand, propensity to save etc.

Liquidity Risk

The Company continuously monitors forecast and actual cash flows and has significantly enhanced its cash flow forecasting capability in the past year. The Company manages its liquidity by maintaining appropriate levels of available funds tracked against a number of rigorous internal metrics.

Statement by the directors in performance of their statutory duties in accordance with section 172 Companies Act 2006

As required by Section 172 of the UK's Companies Act, the directors of the company must act in the way they consider, in good faith, would most likely promote the success of the company, having regard to the detailed matters covered in s172 of the Companies Act 2006.  These matters are:

· the likely consequences of any decision in the long term,

· the interests of the company's employees

· the need to foster the company's business relationships with suppliers, customers, and others,

· the impact of the company's operations on the community and the environment,

· the desirability of the company maintaining a reputation for high standards of business conduct, and

· the need to act fairly as between members of the company.

The board recognises that the long term success of the business is dependent on effective engagement with relevant stakeholders and understanding their views on material issues which may impact the business. Stakeholder engagement is managed by the board of directors but takes place at all levels within the company. We report the performance of the company in line with the guidelines in these standards to all stakeholders through the Corporate Responsibility pages on the website.

Employees

The board recognises that our employees are crucial to the delivery of the business strategy and future growth. Through a wide range of training and development we aim to develop people so that we can promote from within and employees can meet their full potential.

Company performance is monitored by the Directors and new targets are set at the quarterly management meetings, and progress is reported to the company's employees through the Employee Newsletter.

Customers

The board are in regular contact with key potential and past customers, to obtain feedback on matters such as product quality and customer service and drive long term relationships. One of our key performance indicators is monitored through customer satisfaction surveys which shows that 100% of our customers thought the service was excellent or good.

Suppliers

The board has direct involvement in maintaining supplier relationships, to understand market conditions affecting the supply chain, and how it can impact the company's activities. The company ensures it pays suppliers in line with agreed timescales.

Community & environment

The business strategy is to produce the stone to meet or exceed the customers demand with minimal environmental impact.  We seek to continue to improve the companies' quality of its products and service, its health and safety performance and our environmental impact through the Occupational Health and Safety Management ISO 18001, ISO 9001 Quality, ISO 14001 Environmental and BES 6001 Responsible Sourcing standards.

ON BEHALF OF THE BOARD:

J N J Hoyland - Director

27 October 2020

The directors present their report with the financial statements of the company for the year ended 5 April 2020.

PRINCIPAL ACTIVITY

DIVIDENDS

No dividends will be distributed for the period ended 5 April 2020.

DIRECTORS

The directors shown below have held office during the whole of the period from 6 April 2019 to the date of this report.

J N J Hoyland

M E Waller

Other changes in directors holding office are as follows:

S Dunn , R H Ibbotson and P Patient were appointed as directors after 5 April 2020 but prior to the date of this report.

L A R Paris and M R A Carlton ceased to be directors after 5 April 2020 but prior to the date of this report.

PILLAR 3 DISCLOSURES

The company's Pillar 3 disclosures can be found on the company's website

www.hfmcwealth.com/legal-and-compliance.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

AUDITORS

The auditors,  Moore Kingston Smith LLP,  are deemed to be re-appointed under section 487(2) of the Companies Act 2006.

BY ORDER OF THE BOARD:

L A R Paris - Secretary

27 October 2020

Opinion

Basis for opinion

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-

the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-

the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-

the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-

the 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

As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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 a Report of the Auditors 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 financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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 a Report of the Auditors 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.

Ian Matthews (Senior Statutory Auditor)

for and on behalf of Moore Kingston Smith LLP

Devonshire House

60 Goswell Road

London

EC1M 7AD

9 December 2020

TURNOVER

4

1,605,284

1,742,617

Cost of sales

(1,539,084

)

(1,697,417

)

GROSS PROFIT

66,200

45,200

Administrative expenses

(65,433

)

(58,332

)

OPERATING PROFIT/(LOSS) and

PROFIT/(LOSS) BEFORE TAXATION

767

(13,132

)

Tax on profit/(loss)

7

(146

)

2,495

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

621

(10,637

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME/(LOSS)

FOR THE YEAR

621

(10,637

)

CURRENT ASSETS

Debtors

8

349,937

399,850

Cash at bank

2,823

1,602

352,760

401,452

CREDITORS

Amounts falling due within one year

9

(227,337

)

(276,650

)

NET CURRENT ASSETS

125,423

124,802

TOTAL ASSETS LESS CURRENT

LIABILITIES

125,423

124,802

CAPITAL AND RESERVES

Called up share capital

12

125,663

125,663

Retained earnings

13

(240

)

(861

)

SHAREHOLDERS' FUNDS

125,423

124,802

The financial statements were approved by the Board of Directors and authorised for issue on 27 October 2020 and were signed on its behalf by:

J N J Hoyland - Director

M E Waller - Director

Called up

share

Retained

Total

capital

earnings

equity

£   

£   

£   

Balance at 6 April 2018

125,663

9,776

135,439

Changes in equity

Total comprehensive loss

-

(10,637

)

(10,637

)

Balance at 5 April 2019

125,663

(861

)

124,802

Changes in equity

Total comprehensive income

-

621

621

Balance at 5 April 2020

125,663

(240

)

125,423

1.

COMPANY INFORMATION

HFMC Asset Management Limited is a Limited company incorporated in England and Wales. It's principal place of business is 29 St John's Lane, Clerkenwell, London, EC1M 4NA.

2.

STATUTORY INFORMATION

HFMC Asset Management Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

3.

ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.  

The financial statements are prepared in sterling , which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have considered the impact of the COVID-19 outbreak and the measures taken to contain it on the company and whilst the ultimate impact cannot currently be quantified, given the nature of the company's activities the directors do not believe that the impact will be significant. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Revenue recognition

Turnover represents the amounts receivable for the provision of financial services.

Revenue is measured at the fair value of the consideration received or receivable net of sales tax, trade discounts and customer credits.

Financial Instruments

The company has elected to apply the provisions of Section 11 ' Basic Financial Instruments' and ' Section 12 ' Other Financial Instruments Issues' of FRS 102 to all its financial instruments.

Financial instruments are recognised in the company's Statement of Financial Position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset , with 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.

Basic financial assets

Basic financial assets, which include trade and other debtors and cash and bank balances, are initially measured at transaction price including transaction costs and where material are subsequently measured at amortised cost using the effective interest method, less any impairment.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and where material the changes in fair value are recognised in the Statement of Total Comprehensive Income, except that investments in equity instruments that are not publicly traded and whose fair value cannot be measured reliably are measured at cost less impairment.

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial. The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating the interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash receipts through the life of the debt instrument to the net carrying amount on initial recognition.

Financial instruments (continued)

Impairment of financial assets

Financial assets , other than those held at fair value are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. The impairment loss is recognised in the Statement of Total Comprehensive Income

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity

Basic financial liabilities

Basic financial liabilities, including trade and other payables and loans from group undertakings that are classified as debt are initially measured at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at the market rate of interest .

Trade creditors are obligations to pay for goods or services that have been acquired that have been acquired in the ordinary course of business from suppliers. Accounts payables are classified as current liabilities if a payment is due within one year or less. If not, they are present as non current liabilities. Short term creditors are initially recognised at transaction price and where material are subsequently measured at amortised cost using the effective interest method

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company's obligations are discharged, cancelled, or they expire.

Taxation

Current tax is recognised for the amount of Corporation tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by the reporting date.

Deferred taxation

Deferred tax is recognised as a liability or an asset if transaction or events that give the Company the obligation to pay more tax in future or a right to pay less tax in future or a right to pay less tax in future have occurred by the Balance sheet date.

4.

TURNOVER

5.

EMPLOYEES AND DIRECTORS

2020

2019

£   

£   

Directors' remuneration

-

-

6.

OPERATING PROFIT/(LOSS)

The operating profit (2019 - operating loss) is stated after charging:

2020

2019

£   

£   

Auditors' remuneration

2,575

4,250

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2020

2019

£   

£   

Current tax:

UK corporation tax

146

-

Over payment in prior years

-

(2,495

)

Tax on profit/(loss)

146

(2,495

)

UK corporation tax was charged at 19%) in 2019.

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£   

£   

Other debtors

121,381

129,997

Tax

2,494

2,495

Prepayments and accrued income

226,062

267,358

349,937

399,850

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£   

£   

Trade creditors

770

11,297

Tax

146

-

VAT

4,129

-

Accruals and deferred income

222,292

265,353

227,337

276,650

10.

SECURED DEBTS

The company has provided security under a multilateral cross guarantee for the bank loan disclosed in the consolidated financial statements of HFMC Wealth Holdings Limited, a company under common control.

11.

FINANCIAL INSTRUMENTS

Carrying amount of financial assets

2020

2019

£   

£   

Debt instruments measured at amortised cost

121,381

129,997

Carrying amount of financial liabilities

2020

2019

£   

£   

Measured at amortised cost

223,062

276,650

12.

CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£   

£   

12,566,295

Ordinary

1p

125,663

125,663

13.

RESERVES

Retained

earnings

£   

At 6 April 2019

(861

)