Capital Financial Markets Limited - Limited company accounts 20.1

REGISTERED NUMBER: 08224800 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

CAPITAL FINANCIAL MARKETS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Statement of Directors' Responsibilities

5

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

14

DIRECTORS:

P Coffin

Mrs C F Coffin

A D Stancliffe

REGISTERED OFFICE:

21 Bunhill Row

London

EC1Y 8LP

REGISTERED NUMBER:

08224800 (England and Wales)

AUDITORS:

Taylor Viney & Marlow Limited

Chartered Accountants

Statutory Auditors

46-54 High Street

Ingatestone

Essex

CM4 9DW

The directors present the strategic report for the year ended 31 December 2020.

REVIEW OF BUSINESS

The business grew organically, with revenues up 27% year on year. This increase is predominantly down to new business. Markets were also helpful and although very turbulent, the overall trend was very positive.

The Jarvis platform continues to be robust and our service to clients continue to improve due to the user-friendly online portal, which allows clients to receive and for us to supply valuations, contract notes and statements immediately by email pdf, with ease. These issues continue to be the bedrock of any private investment manager. By disseminating accurate information in a timely fashion to our clients and investment managers, we gain significant up flow through the business that compounds the benefits throughout the organisation.

Our revenue is split 55% recurring management fees, 35% broking commission.

The office move to 21 Bunhill Row in 2019 provided us with fully refurbished office space and provides capacity to grow by attracting new teams. The view over the HAC provides a very respectable backdrop in which to meet with clients and a good working environment for us and any new joiners.

CRM

We continue to develop our CRM functionality and constantly strive to improve our service offerings to clients and achieve sustainable growth.

BUSINESS LEVELS AND OUTLOOK

Given the social and economic crisis arising from the Covid-19 pandemic, I am delighted with how the business has performed. We continue to gain a reputation as a firm that migrates customers from SIPPs with large providers such as Standard Life, onto our own platform using lower cost bespoke SIPP providers and within those SIPPs, providing our personalised Investment management service. This business is very long term and provides recurring revenue. We gain a considerable number of referrals for this type of business.

STAFF

We continue to invest in staff training and have monitored our staff's well-being throughout the Covid pandemic.

KEY PERFORMANCE INDICATORS

Growth of client base and assets under management - both grew successfully during the year resulting in a 27% rise in revenues.

Complaints - No complaints received during this or the previous year.

PRINCIPAL RISKS AND UNCERTAINTIES

We continue to work mainly from home. All our main software packages are in the cloud which meant that we did not experience any disruption to our services, as our teams could already work from anywhere. We rely heavily on Office 365, Microsoft Teams and SharePoint. Our phone system is a VOIP system so again can be used from any computer, Android phone or IOS.

Our balance sheet continues to strengthen and we expect this to continue for the foreseeable future. Much of our cost remains variable and this provides us with the flexibility to quickly adapt to market conditions should markets take a significant fall in the future.

Whilst the long-term effects of Covid-19 remain uncertain, it does appear that the general consensus is that the UK and global economy will rebound and we are positioned to benefit from the positive outlook on the future.

For the markets, Covid-19 remains the main uncertainty. The roll-out of vaccines appear to be making a substantial difference in the countries where large-scale vaccinations are being carried out. The risk of new variants and vaccine supply issues could delay the anticipated economic recovery, but there appears to be a pent up demand in the economy that is likely to see a major upturn as we move into the early Summer of 2021. So, whilst there remains positivity, any significant delays or changes in the positive trend is likely to create shockwaves throughout the global economy and may lead to many firms finding it increasingly hard to restart their businesses.

ON BEHALF OF THE BOARD:

P Coffin - Director

21 April 2021

PRINCIPAL ACTIVITY

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

DIVIDENDS

Ordinary dividends were paid amounting to £41,281. The directors do not recommend the payment of a further dividend.

FUTURE DEVELOPMENTS

The company has chosen to include this information in the Strategic Report in accordance with section 414C of the Companies Act 2006.

DIRECTORS

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

P Coffin

Mrs C F Coffin

A D Stancliffe

PILLAR 3 DISCLOSURE

Details of the company's unaudited Pillar 3 disclosures, required under section 11 of the FCA's Prudential Sourcebook for Banks, Building Societies and Investment Firms (BIPRU), are being made via the company's website and a copy is also available on request from the company's registered office.

RESULTS

The results for the year are set out on page 9.

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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

Taylor Viney & Marlow were appointed as auditor to the company, and in accordance with section 485 of the Companies Act 2006 will be proposed for re-appointment at the forthcoming Annual General meeting

ON BEHALF OF THE BOARD:

P Coffin - Director

21 April 2021

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), 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 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.

Opinion

We have audited the financial statements of Capital Financial Markets Limited (the 'company') for the year ended 31 December 2020 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 31 December 2020 and of its profit 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, the Report of the Directors and the Statement of Directors' Responsibilities, 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.

-

the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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.

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:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Audit staff with sufficient knowledge and expertise to identify non-compliance with laws and regulations were deployed on the audit.

Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. We did not identify any key audit matters relating to irregularities, including fraud.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

David J. Stevens (Senior Statutory Auditor)

for and on behalf of Taylor Viney & Marlow Limited

Chartered Accountants

Statutory Auditors

46-54 High Street

Ingatestone

Essex

CM4 9DW

21 April 2021

TURNOVER

3

547,264

430,427

Cost of sales

114,324

92,781

GROSS PROFIT

432,940

337,646

Administrative expenses

310,626

264,459

122,314

73,187

Other operating income

4

3,079

-

OPERATING PROFIT

6

125,393

73,187

Interest receivable and similar income

8

25,075

144

150,468

73,331

Gain/loss on revaluation of investments

16,167

-

166,635

73,331

Interest payable and similar expenses

9

770

-

PROFIT BEFORE TAXATION

165,865

73,331

Tax on profit

10

28,940

14,429

PROFIT FOR THE FINANCIAL YEAR

136,925

58,902

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

136,925

58,902

FIXED ASSETS

Intangible assets

12

7,000

-

Tangible assets

13

4,307

6,098

11,307

6,098

CURRENT ASSETS

Debtors

14

181,526

159,596

Investments

15

95,663

-

Cash at bank and in hand

96,954

83,722

374,143

243,318

CREDITORS

Amounts falling due within one year

16

166,162

125,772

NET CURRENT ASSETS

207,981

117,546

TOTAL ASSETS LESS CURRENT LIABILITIES

219,288

123,644

CAPITAL AND RESERVES

Called up share capital

18

25,000

25,000

Share premium

19

25,000

25,000

Retained earnings

19

169,288

73,644

SHAREHOLDERS' FUNDS

219,288

123,644

The financial statements were approved by the Board of Directors and authorised for issue on 21 April 2021 and were signed on its behalf by:

P Coffin - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2019

25,000

48,237

25,000

98,237

Changes in equity

Profit for the year

-

58,902

-

58,902

Total comprehensive income

-

58,902

-

58,902

Dividends

-

(33,495

)

-

(33,495

)

Total transactions with owners, recognized directly in equity

-

(33,495

)

-

(33,495

)

Balance at 31 December 2019

25,000

73,644

25,000

123,644

Changes in equity

Profit for the year

-

136,925

-

136,925

Total comprehensive income

-

136,925

-

136,925

Dividends

-

(41,281

)

-

(41,281

)

Total transactions with owners, recognized directly in equity

-

(41,281

)

-

(41,281

)

Balance at 31 December 2020

25,000

169,288

25,000

219,288

Cash flows from operating activities

Cash generated from operations

1

129,582

(14,808

)

Interest paid

(770

)

-

Tax paid

(14,430

)

(21,455

)

Net cash from operating activities

114,382

(36,263

)

Cash flows from investing activities

Purchase of intangible fixed assets

(7,000

)

-

Purchase of tangible fixed assets

(1,106

)

(3,905

)

Purchase of current asset investments

(79,496

)

-

Interest received

25,075

144

Net cash from investing activities

(62,527

)

(3,761

)

Cash flows from financing activities

Amount withdrawn by directors

(421

)

16,681

Government grants received

3,079

30,000

Equity dividends paid

(41,281

)

(33,495

)

Net cash from financing activities

(38,623

)

13,186

Increase/(decrease) in cash and cash equivalents

13,232

(26,838

)

Cash and cash equivalents at beginning of year

2

83,722

110,560

Cash and cash equivalents at end of year

2

96,954

83,722

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

31.12.20

31.12.19

£

£

Profit before taxation

165,865

73,331

Depreciation charges

2,897

1,315

Gain on revaluation of fixed assets

(16,167

)

-

Government grants

(3,079

)

-

Finance costs

770

-

Finance income

(25,075

)

(144

)

125,211

74,502

Increase in trade and other debtors

(21,930

)

(89,861

)

Increase in trade and other creditors

26,301

551

Cash generated from operations

129,582

(14,808

)

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 31 December 2020

31.12.20

1.1.20

£

£

Cash and cash equivalents

96,954

83,722

Year ended 31 December 2019

31.12.19

1.1.19

£

£

Cash and cash equivalents

83,722

110,560

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.20

Cash flow

At 31.12.20

£

£

£

Net cash

Cash at bank

and in hand

83,722

13,232

96,954

83,722

13,232

96,954

Liquid resources

Current asset

investments

-

40,350

95,663

-

40,350

95,663

Total

83,722

53,582

192,617

1.	STATUTORY INFORMATION

Capital Financial Markets 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.	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 re rounded to the nearest pound.

The immediate and ultimate parent company is CFM Holdings Limited, a company registered in England and Wales. The parent company and its subsidiary undertakings comprise a small-sized group. The parent company has therefore taken advantage of the exemptions provided by section 399 of the Companies Act 2006 not to prepare group accounts.

Going concern

The impact of Covid-19 has been considered as part of the going concern review.

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 take great comfort from the positive results achieved in 2020 and thus continue to adopt the going concern basis of accounting in preparing the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate os revised where the revision affects only that period, or in the period od the revision and future periods where the revision affects both current and future periods.

There are not considered to be any key estimates or judgements.

Turnover

Turnover represents amounts receivable for services net of VAT and trade discounts.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are subsequently measured at cost less any accumulated amortisation or revalued to fair value.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

25% on cost

Computer equipment

-

25% on cost

Tangible fixed assets are initially measured at cost, and subsequently measured at cost less depreciation and impairment losses.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit or loss.

Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss.If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible ot estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current marker assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation increase.

Government grants

Government grants are recognised at the fair value of the amount received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. Grants are recognised in the profit and loss account in the period to which they relate.

During the year the company has received grant income totalling £3,079 from the UK Government under the Job Retention Scheme due COVID-19.

Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible other years and it further excludes items that are never taxable or deductible. The company's liability for current tax is calculated using the tax rates that have been enacted or substantively enacted by the reporting end date.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Financial instruments

The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments at fair value.

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 the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting 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. 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 profit and loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. that impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractural obligations expire or are discharged or cancelled.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.12.20

31.12.19

£

£

Broking services

547,264

430,427

547,264

430,427

An analysis of turnover by geographical market is given below:

31.12.20

31.12.19

£

£

United Kingdom

547,264

430,427

547,264

430,427

4.	OTHER OPERATING INCOME

31.12.20

31.12.19

£

£

Government grants

3,079

-

5.	EMPLOYEES AND DIRECTORS

31.12.20

31.12.19

£

£

Wages and salaries

78,354

195,854

Social security costs

3,333

4,666

Other pension costs

12,714

27,377

94,401

227,897

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

31.12.20

31.12.19

Management

3

3

Directors' remuneration

31.12.20

31.12.19

£

£

Remuneration for qualifying services

35,938

56,459

Company pension contributions to defined contribution schemes

12,714

13,450

48,652

69,909

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2019 - 1).

6.	OPERATING PROFIT

The operating profit is stated after charging:

31.12.20

31.12.19

£

£

Other operating leases

21,653

18,265

Depreciation - owned assets

2,897

1,315

7.	AUDITORS' REMUNERATION

31.12.20

31.12.19

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

5,500

7,750

Other non- audit services

-

3,922

8.

INTEREST RECEIVABLE AND SIMILAR INCOME

31.12.20

31.12.19

£

£

Bank interest receivable

91

144

Gain on disposal of listed investment

24,984

-

25,075

144

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.20

31.12.19

£

£

Bank interest

176

-

Interest on Investment acct

594

-

770

-