GRYPHON_EMERGING_MARKETS_ - Accounts

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial period ended 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Gryphon Emerging Markets Limited is a private company limited by shares incorporated in England and Wales. The registered office is Acre House, 11-15 William Road, London, NW1 3ER, United Kingdom. The principal place of business is 67 Grosvenor Street, London, W1K 3JN, United Kingdom.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Atruet 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. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

The current period relates to 18 months from 1 January 2022 to 30 June 2023. The comparative figure relates to the year ended 31 December 2021.

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT.

Turnover consists of retainer fees, advisory fees, success fees and expenses are recharged.

Retainer fees and advisory fees are recognised as the service is provided, in the year which it relates to and in accordance with the agreed terms.

Success fees are recognised in full on completion of a transaction.

The company incurs certain expenses in the normal course of business which is then recharged to the relevant client . The income is recognised when the expenditure has been incurred and the right to receive payment from the relevant client for the recharge has been established.

Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

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 profit or loss.

Fixed asset investments relates to investments in convertible loan notes and shares in unlisted investments. These are measured at fair value and the changes in fair value are recognised in profit or loss, except that investments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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). The impairment loss is recognised in profit or loss.

Cash at bank and in hand are basic financial assets and include deposits held at call with banks.

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

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

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

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

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.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors , are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.

Share capital represents the nominal value of equity shares that have been issued.

Share premium represents the amount subscribed for share capital in excess of nominal value. Any transaction costs associated with the issuing of shares are deducted from share premium.

The capital redemption reserve is designed to maintain a level of capital when shares have been redeemed and represents amounts transferred following the redemption or purchase of a company's own shares.

Profit and loss reserves represent all current and prior period retained profit and losses.

The costs of short-term employee benefits are recognised as a liability and an expense .

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

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

Dividend income

Dividend income is recognised when the right to receive payment is established.

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 is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Management reviews trade debtor balances for impairment and this is performed on a regular basis. Those balances which are considered to be recoverable remain in trade debtors and those which are not are impaired and the company recognises a provision for bad and doubtful debt for these balances. In making this estimate, management evaluates, among other factors, the duration and the financial health of and short-term business outlook for the trade debtors, including factors such as industry and sector performance. Please see note 6 for trade debtors. A provision for bad and doubtful debts of £64,127 (2021: £51,845) has been recognised against trade debtors. The profit and loss charge for bad and doubtful debts is included within administrative expenses.

Fixed asset investments relates to unlisted investments in convertible loan notes and investment in shares. These are measured at fair value and the changes in fair value are recognised in profit or loss, except that investments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. The valuation of the fixed asset investments is considered a key area of judgement and estimation by management.

The fair value of the investment in the convertible loan notes has been arrived at on the basis of a valuation carried out at the balance sheet date by the directors which is based upon third party valuations.

The fair value of the shares in unlisted investment has been arrived at on the basis of a valuation carried out at the balance sheet date by the directors which is based upon a valuation technique. Where the market for the asset is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, the directors have estimated the fair value by using a valuation technique.  The objective of using the valuation technique is to estimate what the transaction price would have been on the measurement date in an arm’s length exchange motivated by normal business considerations. 

Please see note 5 for fixed asset investments.

The average monthly number of persons (including directors) employed by the company during the period was:

Fixed asset investments consists of investment in convertible loan notes and shares in unlisted investments.

The fair value of the shares in unlisted investment has been arrived at on the basis of a valuation carried out at the balance sheet date by the directors which is based upon a valuation technique. The market for the asset is not active and recent transactions of an identical asset on their own are not a good estimate of fair value, and therefore the directors have estimated the fair value by using a valuation technique. The objective of using the valuation technique is to estimate what the transaction price would have been on the measurement date in an arm’s length exchange motivated by normal business considerations.

A provision for bad and doubtful debts of £64,127 (2021: £51,845) has been recognised against trade debtors. The profit and loss charge for bad and doubtful debts is included within administrative expenses.

The bank loan has an interest rate of 2.5% per annum and is secured over the cash held at bank. Repayments are at £833 per month, and the final repayment is due in May 2026.

The holders of the Ordinary A Shares and the Ordinary B shares have the same voting rights. Regulatory capital shares have no voting rights. Regulatory capital shares are potentially redeemable as and when the company's resources, from an FCA perspective, would allow it.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

During the year, key management personnel recharged the company for administrative expenses amounting to £29,312 (2021: £27,412).

During the year, expenses totalling £nil (2021: £10,186) were paid by the company on behalf of Gryphon Holdings Plc, its parent company. Included in debtors at the year end is £nil (2021: £12,390) due from Gryphon Holdings Plc. Included in creditors at the year end is £210,024 (2021: £238,332) due to Gryphon Holdings Plc. The balances due from and to Gryphon Holdings Plc are unsecured, interest free and repayable on demand.

The smallest and largest group in which the results of the company are consolidated is headed by Gryphon Holdings Plc, a company incorporated in the Isle of Man. The registered office of Gryphon Holdings Plc is Fort Anne, South Quay, Douglas, IM1 5PD, Isle of Man.

The immediate parent company is Gryphon Holdings Plc. The ultimate controlling party is the director J. R. W. Young.