Skybound Wealth Management Limited - Limited company accounts 23.1

REGISTERED NUMBER: 04479650 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTOR AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2021

FOR

SKYBOUND WEALTH MANAGEMENT LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Director

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTOR:

F Neill

REGISTERED OFFICE:

Mbp3 Carbrook Hall Road

Sheffield

S9 2EQ

REGISTERED NUMBER:

04479650 (England and Wales)

AUDITORS:

Haines Watts, Statutory Auditor

Chartered Accountants

The Lightbox

87 Castle Street

Reading

Berkshire

RG1 7SN

The director presents her strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS

The Directors are pleased to report an increase of revenue in the year from £2,197,173 to £4,213,069, this represents an increase of over 90%.

The company focused on increasing its fee-paying Assets under Advice (AUA) since 2020.

From the launch of the initiative and during 2021 the AUA grew as a result.

The AUA growth was further strengthened by a positive year in equity markets.

The strategy included the rebranding of the company, improvement of the investment portfolios, increased business development initiatives and

Introducer partnerships.

Due to the AUA increase and a significant amount of new clients being introduced, the revenue increased.

PRINCIPAL RISKS AND UNCERTAINTIES

In consideration of the business and regulatory risks inherent to the Company and its industry, the Directors have identified, in their judgment, the following key risks with the detail as to how the Company implements risk mitigation procedures to reduce the risk to an acceptable level:

Key Person Risks - The Company is long established with defined processes and controls. Together with a cross-over of key functions and the ability to delegate to experienced support while maintaining the appropriate level of duty segregation adequately mitigates the associated risk. Further, as part of a larger Group there is sufficient expertise available to fulfil all functions.

Regulatory Compliance - The Company has strong systems and implements rigorous controls to provide appropriate oversight of the Financial Planning process to adequately mitigate the associated risk. To further inform the compliance view, the Company is advised by three different independent regulatory consultancy firms.

Regulatory Changes - Due to the wealth of compliance experience within the Company, it is adept at process change to proactively respond to regulatory changes and appropriately mitigate the associated risk. Adhering strictly to legal and regulatory affairs, the Company liaises, listens and proactively reacts to updates provided by the independent regulatory consultants to align the Company with RCA requirements.

Market Performance - The Company ethos is one of low-risk capital management. The Company provides a wide diversity of fund choices which reduces client exposure if markets fall, thereby providing adequate mitigation of the associate risk. Adroit choice, meticulous risk analysis and investment funds of substance that maintain substantial liquidity are additional key drivers. The latter gives flexibility in times of downturn, providing easy access to fund withdrawals. Continuous portfolio reviews preserve stability. Unbroken personal interaction linked to constant communication with clients, facilitates the Company's ability to react to protect clients.

Protection of client personal information - Fulfilling legal and social responsibility to protect personal information is ingrained throughout the corporate activities of the Company. The Company complies with Data Protection rules applicable to the UK through specifically designed processes and implemented controls to adequately mitigate the associated risk. Included in our annual Anti Money Laundering Regulation review is a reaffirmation of the need to protect all client information and to be aware of identity theft.

SECTION 172(1) STATEMENT

The Directors consider they have effectively implemented their roles and responsibilities under section 172 of the Companies Act 2006 with the following processes continuing to be employed:

-Establishing a long-term strategy for the business which will continue to deliver successful results for the business, its employee's and wider stakeholders.

-Fostering relationships throughout the business, acting fairly between members of the company and treating all stakeholders with respect.

-Considering the impact, we have on the environment and the communities in which we work both on individual projects and the business as a whole.

STRATEGIC PLANS

The Company plans to increase net profit after tax as a key performance indicator for Shareholders through the following Strategic Plans:

- Identify value added services to offer the existing clients base to maximise the return of assets under advisory.

- Identify organic growth opportunities and implement growth initiates to increase assets under advisory in the current geographical market in which the Company operates.

- Identify strategic acquisition targets to increase or augment the Company's geographical footprint and to increase assets under advisory.

- Manage costs effectively.

- Continue to improve on the client offering with specific focus on the clients' digital experience and provide improved technology tools to advisors to ensure that have the best tools available to advise the clients.

- Increase the company's ability to add to the services it is able to offer its existing clients with the aim to manage a larger proportion of the clients wealth.

- Improvement of systems and processes through technology to ensure the company to scale and grow revenue while limiting cost increases.

- Continued recruitment efforts to attract more advisors and their clients to the company and its branch.

ON BEHALF OF THE BOARD:

F Neill - Director

16 June 2023

The director presents her report with the financial statements of the company for the year ended 31 December 2021.

PRINCIPAL ACTIVITY

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

BRANCH

Skybound Wealth Management Limited operates internationally through a branch in Abu Dhabi.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2021.

DIRECTORS

F Neill has held office during the whole of the period from 1 January 2021 to the date of this report.

Other changes in directors holding office are as follows:

J J Burton ceased to be a director after 31 December 2021 but prior to the date of this report.

STAKEHOLDER ENGAGEMENT

The directors recognise the importance of considering all stakeholders in its decision making.

Clients

Skybound Wealth Management is a company that prides itself on innovation. We welcome new ideas and we believe that strong relationships can add value for everyone.

Our ambition is to provide the correct level of services to the clients, and have a minimal environmental impact. We believe that growth starts with understanding our clients and being relevant to their needs.

Insights into our markets, competitors and clients are important to identify and priorities opportunities. We continuously monitor the operating environment and how it is changing through on-going dialogue with our clients. Client experience is at the centre of everything we do and the experience we deliver to them must always meet their expectations.

Employees

Our people are our most important asset, and our future depends on continuing to attract, retain and develop the right people and evolve with them. Our employees are provided with opportunities, responsibilities, and the authority to act. The company promotes continuous employee development and employees are actively encouraged to seek out opportunities and develop their own career.

The company must manage social and ethical issues and observes high standards of integrity and responsible practices. Ethical employee behaviour is central to this and is promoted among employees through the group-wide code of conduct. The code is a key component of the induction program, and all employees are expected to follow it from day one. The code of conduct underlines commitment to fair employment conditions and labour rights, and takes clear stand against human rights abuses, child labour and forced labour of any kind.

Suppliers and Partners

The company has established and maintains a strong relationship with suppliers and partners.

Wherever we do business, we follow our code of conduct and abide by the laws and regulations governing business ethics in the countries in which we operate. We require all of our partners to do the same.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is 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 director is required to:

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable 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 company will continue in business.

The director is 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 her to ensure that the financial statements comply with the Companies Act 2006. She is 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 director is 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 she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Haines Watts, Statutory Auditor, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

F Neill - Director

16 June 2023

Opinion

We have audited the financial statements of Skybound Wealth Management Limited (the 'company') for the year ended 31 December 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 31 December 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other matters

The prior period numbers are unaudited. The Company was exempt from audit in accordance with s477 of the Companies Act 2006.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Director 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 Director 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 Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page five, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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:

We obtained an understanding of the legal and regulatory framework applicable to the Company and the industry in which it operates. We determined that the following laws and regulations were most significant: FRS102 - the Financial Reporting Standard applicable in the UK & The Republic of Ireland, the companies Act 2006 relevant tax compliance regulations in the UK. and The Financial Conduct Authority 'FCA'.

We obtained an understanding of how the Company is complying with those legal and regulatory frameworks by making enquiries of management.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by meeting with management to understand where management considered there was susceptibility to fraud. Audit procedures performed by the audit team included:

- Challenging assumptions and judgements made by management in its significant accounting estimates;

- Identifying and testing journal entries, with a focus on entries made with unusual accounting combinations;

- Confirming with management whether they have knowledge of any actual, suspected or illegal fraud;

- Evaluating whether there was evidence of bias by management that represents a risk of material misstatement due to fraud.

These procedures were designed to provide reasonable assurance that the financial statements were free from fraud or error.

Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance with all laws and regulations.

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.

Martin Thomas FCCA (Senior Statutory Auditor)

for and on behalf of Haines Watts, Statutory Auditor

Chartered Accountants

The Lightbox

87 Castle Street

Reading

Berkshire

RG1 7SN

16 June 2023

TURNOVER

4

4,213,069

2,197,173

Cost of sales

3,239,195

1,575,141

GROSS PROFIT

973,874

622,032

Administrative expenses

997,730

838,597

(23,856

)

(216,565

)

Other operating income

-

6,692

OPERATING LOSS

6

(23,856

)

(209,873

)

Profit/loss on sale of invest

8

-

58,222

(23,856

)

(151,651

)

Interest receivable and similar income

-

2

(23,856

)

(151,649

)

Interest payable and similar expenses

9

572

418

LOSS BEFORE TAXATION

(24,428

)

(152,067

)

Tax on loss

10

-

(2,596

)

LOSS FOR THE FINANCIAL YEAR

(24,428

)

(149,471

)

OTHER COMPREHENSIVE INCOME

Foreign exchange gain/(loss)

(1,863

)

13,166

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

(1,863

)

13,166

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(26,291

)

(136,305

)

FIXED ASSETS

Tangible assets

11

3,905

21,505

CURRENT ASSETS

Debtors

12

1,156,580

945,837

Cash at bank and in hand

4,750

91,920

1,161,330

1,037,757

CREDITORS

Amounts falling due within one year

13

886,029

764,679

NET CURRENT ASSETS

275,301

273,078

TOTAL ASSETS LESS CURRENT LIABILITIES

279,206

294,583

CREDITORS

Amounts falling due after more than one year

14

(444,794

)

(441,852

)

PROVISIONS FOR LIABILITIES

17

(24,215

)

(16,243

)

NET LIABILITIES

(189,803

)

(163,512

)

CAPITAL AND RESERVES

Called up share capital

18

100

100

Other reserves

19

11,303

13,166

Retained earnings

19

(201,206

)

(176,778

)

SHAREHOLDERS' FUNDS

(189,803

)

(163,512

)

The financial statements were approved and authorised for issue by the director and authorised for issue on 16 June 2023 and were signed by:

F Neill - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 January 2020

100

(27,307

)

-

(27,207

)

Changes in equity

Total comprehensive income

-

(149,471

)

13,166

(136,305

)

Balance at 31 December 2020

100

(176,778

)

13,166

(163,512

)

Changes in equity

Total comprehensive income

-

(24,428

)

(1,863

)

(26,291

)

Balance at 31 December 2021

100

(201,206

)

11,303

(189,803

)

Cash flows from operating activities

Cash generated from operations

1

(95,412

)

71,356

Interest paid

(572

)

(418

)

Tax paid

2,450

(2,419

)

Net cash from operating activities

(93,534

)

68,519

Cash flows from investing activities

Purchase of tangible fixed assets

(2,924

)

(2,099

)

Sale of tangible fixed assets

898

590

Interest received

-

2

Net cash from investing activities

(2,026

)

(1,507

)

(Decrease)/increase in cash and cash equivalents

(95,560

)

67,012

Cash and cash equivalents at beginning of year

2

81,047

571

Effect of foreign exchange rate changes

(1,959

)

13,464

Cash and cash equivalents at end of year

2

(16,472

)

81,047

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

2021

2020

£

£

Loss before taxation

(24,428

)

(152,067

)

Depreciation charges

5,330

8,576

Loss on disposal of fixed assets

14,392

-

Finance costs

572

418

Finance income

-

(2

)

(4,134

)

(143,075

)

Increase in trade and other debtors

(213,193

)

(93,150

)

Increase in trade and other creditors

121,915

307,581

Cash generated from operations

(95,412

)

71,356

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 2021

31/12/21

1/1/21

£

£

Cash and cash equivalents

4,750

91,920

Bank overdrafts

(21,222

)

(10,873

)

(16,472

)

81,047

Year ended 31 December 2020

31/12/20

1/1/20

£

£

Cash and cash equivalents

91,920

571

Bank overdrafts

(10,873

)

-

81,047

571

3.	ANALYSIS OF CHANGES IN NET FUNDS/(DEBT)

At 1/1/21

Cash flow

At 31/12/21

£

£

£

Net cash

Cash at bank and in hand

91,920

(87,170

)

4,750

Bank overdrafts

(10,873

)

(10,349

)

(21,222

)

81,047

(97,519

)

(16,472

)

Total

81,047

(97,519

)

(16,472

)

1.	STATUTORY INFORMATION

Skybound Wealth 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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 have been prepared under the historical cost convention unless otherwise specific 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 management to exercise judgement in applying the Company's accounting policies.

Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover, represents initial and recurring fees in relation to the valuation of assets under management. Initial fees are recognised on an accruals basis and recurring fees are recognised initially and adjusted for any valuation movements through the period.

Tangible fixed assets

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 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:

Fixtures and fittings

-

15% on cost

Computer equipment

-

25% on cost

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.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, and loans to and from related parties.

Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received.

Financial assets that are measured at cost and amortised cost are assess 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 Statement of Comprehensive Income.

Debtors

Short term debtors are measured at transaction price less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits, with financial institutions repayable without penalty on notice of not more than 24 hours.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Operating leases

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

Pension costs and other post-retirement benefits

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Company in independently administered funds.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the process of applying its accounting policies, the Company is required to make certain estimates, judgement, and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the amount of assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting periods presented. On an ongoing basis, the Company evaluates its estimates using historical experience and other reasonable methods.

Actual results may differ materially from the estimate, the effect of which is recognised in the period in which the facts that give rise to the revision become known. The following paragraphs detail the estimates and judgements the Company believes to have the most significant impact on the annual results under FRS 102.

Turnover recognition and allowance for doubtful receivables

The Company recognises turnover generally at the time of delivery and when collection of the resulting receivable is reasonable assured. When the Company considers that the criteria for turnover recognition are not met for a transaction, turnover recognition is delayed until such time as collectability is reasonably assured. Payments received in advance of turnover recognition are recorded as deferred income. At each reporting date, the Company evaluates the recoverability of trade receivables and record allowances for doubtful receivables based on experience. These allowances are based on, amongst other things, a consideration of actual collection history. The actual level of receivable collected may differ from the estimated levels of recovery, which could impact operating results positively or negatively.

4.

TURNOVER

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

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

2021

2020

£

£

Initial and recurring fees

3,924,765

1,883,710

Group Management Income

288,304

313,463

4,213,069

2,197,173

5.	EMPLOYEES AND DIRECTORS

2021

2020

£

£

Wages and salaries

520,440

337,036

Social security costs

24,996

13,172

Other pension costs

4,083

2,078

549,519

352,286

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

2021

2020

Directors

2

2

Employees

11

18

13

20

2021

2020

£

£

Directors' remuneration

102,713

90,167

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

1

1

6.	OPERATING LOSS

The operating loss is stated after charging/(crediting):

2021

2020

£

£

Other operating leases

48,963

58,978

Depreciation - owned assets

5,330

8,576

Loss on disposal of fixed assets

14,392

-

Foreign exchange differences

25,039

(4,531

)

7.	AUDITORS' REMUNERATION

2021

2020

£

£

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

10,424

3,611

8.	EXCEPTIONAL ITEMS

2021

2020

£

£

Profit/loss on sale of invest

-

58,222

9.

INTEREST PAYABLE AND SIMILAR EXPENSES

2021

2020

£

£

Bank interest

572

418