S G Wealth Management Limited - Limited company accounts 23.2

REGISTERED NUMBER: 04164888 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 June 2023

for

S G WEALTH MANAGEMENT LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Cash Flow Statement

10

Notes to the Cash Flow Statement

11

Notes to the Financial Statements

12

DIRECTORS:

S M Girling

A C Wood

H J Gaskin

SECRETARY:

S M Girling

REGISTERED OFFICE:

53-57 St Martin's Lane

Norwich

Norfolk

NR3 3SA

REGISTERED NUMBER:

04164888 (England and Wales)

AUDITORS:

Stephenson Smart (East Anglia) Limited

Queens Head House

The Street

Acle

Norwich

NR13 3DY

BANKERS:

Santander UK plc

Administration Team

301 St Vincent Street

Glasgow

G2 5HN

The directors present their strategic report for the year ended 30 June 2023.

REVIEW OF BUSINESS

In the last 12 months to the reporting date, the company continued to add new clients and funds under management with consequent increases to fee revenues. The FCA's Consumer Duty initiative required significant time and resources to implement, although the principles of putting clients first and ensuring good outcomes for them is embedded in the way the company was set up and has not therefore required a change of culture for us.

PRINCIPAL RISKS AND UNCERTAINTIES

Economic and political uncertainty and the war in Ukraine have all had impact on global investment markets, which in turn impact our recurring revenues. The company continued to experience strong demand for its services from potential new clients however, with the directors confident they maintain sufficient resources to withstand these continued challenges.

ON BEHALF OF THE BOARD:

S M Girling - Director

12 October 2023

The directors present their report with the financial statements of the company for the year ended 30 June 2023.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report.

S M Girling

A C Wood

H J Gaskin

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.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

S M Girling - Director

12 October 2023

Opinion

We have audited the financial statements of S G Wealth Management Limited (the 'company') for the year ended 30 June 2023 which comprise the Income Statement, Other 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 30 June 2023 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 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; or

-	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 from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

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

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:-

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

We communicate those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

Henry Pettitt FCA (Senior Statutory Auditor)

for and on behalf of Stephenson Smart (East Anglia) Limited

Queens Head House

The Street

Acle

Norwich

NR13 3DY

12 October 2023

TURNOVER

3,023,773

3,276,642

Administrative expenses

2,721,266

2,860,205

302,507

416,437

Other operating income

7,200

29,455

OPERATING PROFIT

4

309,707

445,892

Interest receivable and similar income

16,455

4,059

PROFIT BEFORE TAXATION

326,162

449,951

Tax on profit

5

76,293

79,004

PROFIT FOR THE FINANCIAL YEAR

249,869

370,947

PROFIT FOR THE YEAR

249,869

370,947

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

249,869

370,947

FIXED ASSETS

Intangible assets

6

-

-

Tangible assets

7

33,227

45,033

33,227

45,033

CURRENT ASSETS

Debtors

8

236,044

246,611

Cash at bank and in hand

953,287

1,011,236

1,189,331

1,257,847

CREDITORS

Amounts falling due within one year

9

402,998

586,689

NET CURRENT ASSETS

786,333

671,158

TOTAL ASSETS LESS CURRENT LIABILITIES

819,560

716,191

CAPITAL AND RESERVES

Called up share capital

12

18,478

18,478

Share premium

13

113,414

113,414

Retained earnings

13

687,668

584,299

SHAREHOLDERS' FUNDS

819,560

716,191

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

The financial statements were approved by the Board of Directors and authorised for issue on 12 October 2023 and were signed on its behalf by:

S M Girling - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 July 2021

18,478

955,379

113,414

1,087,271

Changes in equity

Profit for the year

-

370,947

-

370,947

Total comprehensive income

-

370,947

-

370,947

Dividends

-

(742,027

)

-

(742,027

)

Balance at 30 June 2022

18,478

584,299

113,414

716,191

Changes in equity

Profit for the year

-

249,869

-

249,869

Total comprehensive income

-

249,869

-

249,869

Dividends

-

(146,500

)

-

(146,500

)

Balance at 30 June 2023

18,478

687,668

113,414

819,560

Cash flows from operating activities

Cash generated from operations

1

169,075

683,636

Tax paid

(92,610

)

(148,257

)

Net cash from operating activities

76,465

535,379

Cash flows from investing activities

Purchase of tangible fixed assets

(4,369

)

(43,038

)

Sale of fixed asset investments

-

16,295

Interest received

16,455

4,059

Net cash from investing activities

12,086

(22,684

)

Cash flows from financing activities

Equity dividends paid

(146,500

)

(742,027

)

Net cash from financing activities

(146,500

)

(742,027

)

Decrease in cash and cash equivalents

(57,949

)

(229,332

)

Cash and cash equivalents at beginning of year

2

1,011,236

1,240,568

Cash and cash equivalents at end of year

2

953,287

1,011,236

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

2023

2022

£

£

Profit before taxation

326,162

449,951

Depreciation charges

16,175

23,963

Profit on disposal of fixed assets

-

(1,295

)

Finance income

(16,455

)

(4,059

)

325,882

468,560

Increase in trade and other debtors

(2,566

)

(32,067

)

(Decrease)/increase in trade and other creditors

(154,241

)

247,143

Cash generated from operations

169,075

683,636

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 30 June 2023

30.6.23

1.7.22

£

£

Cash and cash equivalents

953,287

1,011,236

Year ended 30 June 2022

30.6.22

1.7.21

£

£

Cash and cash equivalents

1,011,236

1,240,568

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.7.22

Cash flow

At 30.6.23

£

£

£

Net cash

Cash at bank and in hand

1,011,236

(57,949

)

953,287

1,011,236

(57,949

)

953,287

Total

1,011,236

(57,949

)

953,287

1.	STATUTORY INFORMATION

S G 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.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared n 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.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Tangible fixed assets are initially measured at cost. After initial recognition, tangible fixed assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

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

Office/computer equipment and furniture

- 25% on cost

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

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.

3.	EMPLOYEES AND DIRECTORS

2023

2022

£

£

Wages and salaries

1,734,594

1,811,331

Social security costs

154,857

188,623

Other pension costs

188,461

242,667

2,077,912

2,242,621

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

2023

2022

Sales and administration

32

32

Directors

3

4

35

36

2023

2022

£

£

Directors' remuneration

206,140

334,986

Directors' pension contributions to money purchase schemes

58,890

126,864

Information regarding the highest paid director is as follows:

2023

2022

£

£

Emoluments etc

167,633

183,112

Pension contributions to money purchase schemes

8,890

6,428

4.	OPERATING PROFIT

The operating profit is stated after charging:

2023

2022

£

£

Depreciation - owned assets

16,175

16,501

Other intangible assets amortisation

-

7,462

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2023

2022

£

£

Current tax:

UK corporation tax

67,466

96,916

Over/under provision of tax

(4,306

)

-

Total current tax

63,160

96,916

Deferred tax

13,133

(17,912

)

Tax on profit

76,293

79,004

6.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 July 2022

and 30 June 2023

44,763

AMORTISATION

At 1 July 2022

and 30 June 2023

44,763

NET BOOK VALUE

At 30 June 2023

-

At 30 June 2022

-

7.	TANGIBLE FIXED ASSETS

Plant and

machinery

etc

£

COST

At 1 July 2022

114,709

Additions

4,369

At 30 June 2023

119,078

DEPRECIATION

At 1 July 2022

69,676

Charge for year

16,175

At 30 June 2023

85,851

NET BOOK VALUE

At 30 June 2023

33,227

At 30 June 2022

45,033

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade debtors

98,903

79,149

Other debtors

13

-

Deferred tax asset

Other timing differences

1,386

14,519

Prepayments

85,013

88,947

Accrued income

50,729

63,996

236,044

246,611

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023

2022

£

£

Trade creditors

15,294

7,781

Tax

67,466

96,916

Social security and other taxes

35,802

50,030

VAT

40,634

36,681

Other creditors

21,372

71,502

Deferred income

15,355

20,049

Accrued expenses

207,075

303,730

402,998

586,689

10.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2023

2022

£

£

Within one year

68,500

29,833

Between one and five years

274,000

50,000

In more than five years

87,167

25,000

429,667

104,833

11.	DEFERRED TAX

£

Balance at 1 July 2022

(14,519

)

Charge to Income Statement during year

13,133

Balance at 30 June 2023

(1,386

)

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2023

2022

value:

£

£

7,162

Ordinary A

£1

7,162

7,162

7,162

Ordinary B

£1

7,162

7,162

1,847

Ordinary C

£1

1,847

1,847

2,307

Ordinary D

£1

2,307

2,307

18,478

18,478

13.

RESERVES

Retained

Share

earnings

premium

Totals

£

£

£

At 1 July 2022

584,299

113,414

697,713

Profit for the year

249,869

249,869

Dividends

(146,500

)

(146,500

)

At 30 June 2023

687,668

113,414

801,082

14.	RELATED PARTY DISCLOSURES

During the year the company paid rent of £54,667 (2022 - £52,000) in respect of property owned by a pension scheme controlled by one of the directors.

15.	ULTIMATE CONTROLLING PARTY

The controlling party is SGW Group Holdings Ltd.

The ultimate controlling party is S M Girling.