Lumen Asset Management Limited - Limited company accounts 20.1

REGISTERED NUMBER: 11880792 (England and Wales)

Strategic Report,

Report of the Directors and

Financial Statements

for the Year Ended 30th April 2021

for

Lumen Asset Management Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

J A de Lavenere Lussan

L Guo

REGISTERED OFFICE:

7th Floor (North)

11 Old Jewry

London

EC2R 8DU

REGISTERED NUMBER:

11880792 (England and Wales)

AUDITORS:

Meyer Williams

Chartered Accountants

& Statutory Auditors

Stag House

Old London Road

Hertford

Hertfordshire

SG13 7LA

The directors present their strategic report for the year ended 30th April 2021.

REVIEW OF BUSINESS

The company obtained authorisation from the Financial Conduct Authority ("FCA") on 2nd September 2019 but has not yet commenced its investment activities and plans to start this during the next financial year.

The costs incurred to date are those associated with the company's continued compliance.

The level of net assets reported in the period end balance sheet represents a surplus over the company's regulatory capital requirements and a strong base for the planned expansion of business activities.

PRINCIPAL RISKS AND UNCERTAINTIES

Business risk

The directors consider that the company's principal business risks are losing or failing to attract new customers and investment executives and other normal risks associated with the performance of the investments under management. The directors are confident that the company is well placed to attract new clients.

Coronavirus risk

The Coronavirus pandemic has had a significant impact on the global economy, and there remains uncertainty for how long it will continue to do so. The directors consider that the firm's operations will not be significantly affected. The directors are continuously monitoring the company's cost base and will take action wherever necessary in order to protect its stakeholders should the period of uncertainty continue for longer than expected.

Liquidity risk

The company manages its cash in order to ensure that it has sufficient liquid resources to meet the operating needs of the business.

Foreign currency risk

The company's principal foreign currency exposures would arise from trading with overseas entities. The company's policy permits but does not demand that derivative foreign exchange products are used to eliminate undue risks contained in these cash flows.

Credit risk

The company places its cash with creditworthy institutions and debtors are reviewed on a regular basis with provision made against doubtful debts when necessary. The carrying amount of cash and debtors represent the maximum credit risk that the company is exposed to.

SECTION 172(1) STATEMENT

The directors have the following comments regarding the performance of their duties to promote the success of the company:

Interests of members of the company

The company was privately owned during the period under review and the company's main shareholder is represented on the board which consists of two executive directors. In common with many private companies the interests of the board and the shareholders are broadly aligned in that the company should create value by generating strong and sustainable results.

The company reports to and is regulated by the Financial Conduct Authority ("FCA"). It is the directors' responsibility to ensure that the company is fully compliant with FCA rules and maintaining levels of capital that are a surplus over its regulatory requirements.

Board decisions during the period

The company has obtained the authorisation required to carry out regulated activities as it seeks to establish a client base to commence trading which has been held up due the Covid-19 pandemic.

The interests of employees

The company is yet to employee any staff and will focus on the training and support of its employees in the future, understanding that a well informed and trained workforce is essential for the company's ongoing success.

The company will offer its employees competitive remuneration packages in order to secure the best talent available.

The interests of our customers

It is imperative that customers are provided with an excellent level of customer service and the company's ethos is that the work performed must be of the highest quality to ensure this.

The interests of our suppliers

Due to the nature of the company's activities it is not reliant on suppliers in order to generate revenue as this will be achieved through our staff base. Suppliers will be used to provide auxiliary and support services.

The impact of the Company's operations on the community and the environment

The company aims to provide services internationally in many different geographical locations which are likely to include the Caribbean and Europe. These regions have exacting operating procedures to ensure as little effect as possible is made on the environment and we endeavour to use technology wherever possible to reduce unnecessary travel by our staff.

Maintaining a reputation for high standards of business conduct

We are committed to maintaining a reputation of the high standards of business conduct associated with FCA regulated firms. The company has a number of policies for all employees to follow and externally prepared compliance reviews are undertaken in respect of any regulated activities.

ON BEHALF OF THE BOARD:

J A de Lavenere Lussan - Director

29th April 2022

The directors present their report with the financial statements of the company for the year ended 30th April 2021.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of investment management.

DIVIDENDS

No dividends will be distributed for the year ended 30th April 2021.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st May 2020 to the date of this report.

J A de Lavenere Lussan

L Guo

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Meyer Williams, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J A de Lavenere Lussan - Director

29th April 2022

Opinion

We have audited the financial statements of Lumen Asset Management Limited (the 'company') for the year ended 30th April 2021 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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 company's affairs as at 30th April 2021 and of its loss for the year 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.

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

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 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.

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 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.

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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

The Company is authorised as an investment firm by the FCA and compliance with FCA regulations is considered to be fundamental to the business. The audit procedures undertaken in relation to regulatory compliance consisted of enquiries of management and those charged with governance; reviewing the firm's higher level standards; reviewing returns submitted to and correspondence with the regulator; The firm does not have permission to hold client money and all bank receipts have been reviewed to ensure that no client money was received during the year.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Stuart Heaney (Senior Statutory Auditor)

for and on behalf of Meyer Williams

Chartered Accountants

& Statutory Auditors

Stag House

Old London Road

Hertford

Hertfordshire

SG13 7LA

29th April 2022

TURNOVER

-

-

Administrative expenses

2,609

2,093

OPERATING LOSS and

LOSS BEFORE TAXATION

(2,609

)

(2,093

)

Tax on loss

6

-

-

LOSS FOR THE FINANCIAL YEAR

(2,609

)

(2,093

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(2,609

)

(2,093

)

CURRENT ASSETS

Cash at bank

146,375

148,944

CREDITORS

Amounts falling due within one year

7

1,077

1,037

NET CURRENT ASSETS

145,298

147,907

TOTAL ASSETS LESS CURRENT LIABILITIES

145,298

147,907

CAPITAL AND RESERVES

Called up share capital

8

150,000

150,000

Retained earnings

9

(4,702

)

(2,093

)

SHAREHOLDERS' FUNDS

145,298

147,907

The financial statements were approved by the Board of Directors and authorised for issue on 29th April 2022 and were signed on its behalf by:

J A de Lavenere Lussan - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Changes in equity

Issue of share capital

150,000

-

150,000

Total comprehensive income

-

(2,093

)

(2,093

)

Balance at 30th April 2020

150,000

(2,093

)

147,907

Changes in equity

Total comprehensive income

-

(2,609

)

(2,609

)

Balance at 30th April 2021

150,000

(4,702

)

145,298

Cash flows from operating activities

Cash generated from operations

1

(2,569

)

(1,056

)

Net cash from operating activities

(2,569

)

(1,056

)

Cash flows from financing activities

Share issue

-

150,000

Net cash from financing activities

-

150,000

(Decrease)/increase in cash and cash equivalents

(2,569

)

148,944

Cash and cash equivalents at beginning of year

2

148,944

-

Cash and cash equivalents at end of year

2

146,375

148,944

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

13.3.19

Year Ended

to

30.4.21

30.4.20

£

£

Loss before taxation

(2,609

)

(2,093

)

Increase in trade and other creditors

40

1,037

Cash generated from operations

(2,569

)

(1,056

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30th April 2021

30.4.21

1.5.20

£

£

Cash and cash equivalents

146,375

148,944

Period ended 30th April 2020

30.4.20

13.3.19

£

£

Cash and cash equivalents

148,944

-

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.5.20

Cash flow

At 30.4.21

£

£

£

Net cash

Cash at bank

148,944

(2,569

)

146,375

148,944

(2,569

)

146,375

Total

148,944

(2,569

)

146,375

1.	STATUTORY INFORMATION

Lumen 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.

2.	STATEMENT OF COMPLIANCE

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.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions in applying the Company's accounting policies. There are no areas of management judgement which have had a significant effect on amounts recognised in the financial statements.

Going concern

The directors have a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future. In making this assessment the directors have considered the impact of the coronavirus outbreak ("COVID-19") that continues to effect the global economy on the Company, its employees and third-parties.

While the Coronavirus pandemic has had a significant impact on the global economy, and there remains uncertainty for how long it will continue to do so,, the directors do not believe it will impact the use of the going concern basis of preparation nor does it cast significant doubt on the Company's ability to continue as a going concern for a period of twelve months from the date of the financial statements being authorised for issue.

The Company therefore continues to adopt the going concern basis in preparing its financial statements.

Debtors

Basic financial assets, including trade and 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, less any impairment.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term 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.

Creditors

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of future payments discounted at a market rate of interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

Financial instruments

Debt instruments like loans and other accounts receivable and payable are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year, typically trade creditors or trade debtors are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an

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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Expenses

Expenses incurred have been recognised on an accruals basis.

4.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 30th April 2021 nor for the period ended 30th April 2020.

The average number of employees during the year was as follows:

Period

13.3.19

Year Ended

to

30.4.21

30.4.20

Directors

2

2

Period

13.3.19

Year Ended

to

30.4.21

30.4.20

£

£

Directors' remuneration

-

-

5.	OPERATING LOSS

The operating loss is stated after charging:

Period

13.3.19

Year Ended

to

30.4.21

30.4.20

£

£

Auditors' remuneration

900

900

6.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 30th April 2021 nor for the period ended 30th April 2020.

The company has tax losses of approximately £4,700 (2020 - £2,100) available to carry forward against future taxable profits.

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.4.21

30.4.20

£

£

Accruals and deferred income

1,077

1,037

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30.4.21

30.4.20

value:

£

£

150,000

Ordinary

£1

150,000

150,000

9.

RESERVES

Retained

earnings

£

At 1st May 2020

(2,093

)

Deficit for the year

(2,609

)

At 30th April 2021

(4,702

)

10.	ULTIMATE CONTROLLING PARTY

From the 13th March 2019, the ultimate controlling party was J A de Lavenere Lussan by virtue of his majority shareholding.