REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 30 June 2020 |
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Chelsea Financial Services PLC |
REGISTERED NUMBER:
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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 30 June 2020 |
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for |
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Chelsea Financial Services PLC |
Chelsea Financial Services PLC (Registered number: 01728085) |
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Contents of the Financial Statements |
for the Year Ended 30 June 2020 |
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Page |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditor | 6 |
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Income Statement | 9 |
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Other Comprehensive Income | 10 |
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Balance Sheet | 11 |
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Statement of Changes in Equity | 12 |
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Cash Flow Statement | 13 |
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Notes to the Financial Statements | 14 |
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Chelsea Financial Services PLC |
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Company Information |
for the Year Ended 30 June 2020 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITOR: |
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Statutory Auditor |
Owner |
PO Box 27075 |
London |
N2 0FZ |
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SOLICITORS: |
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Senator House |
85 Queen Victoria Street |
London |
EC4V 4JL |
Chelsea Financial Services PLC (Registered number: 01728085) |
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Strategic Report |
for the Year Ended 30 June 2020 |
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The directors present their strategic report for the year ended 30 June 2020. |
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REVIEW OF BUSINESS |
New business during the period was £29.5 million. This is in context given continued BREXIT concerns, Covid 19 and continued issues with the Aegon platform.Global stock markets have been on a roller-coaster over the 12 month period, reaching records highs and then a big fall as Covid 19 spread across the globe.The company remains in good financial health despite the stock market crash following the Covid-19 outbreak. Markets have recovered well since the lows of March and have now stabilised. |
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We have total assets of £9.2 million as at 30 June 2020 which is mainly made up of cash and quoted investments. |
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No staff have been furloughed or made redundant due to Covid 19. We have successfully carried out our disaster recovery plan and implemented working from home for all staff. That said the office has been staffed by at least one of the team every day to deal with the post. |
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In June 2017 we launched a range of managed funds for clients and attracted inflows of £56m in the first year.The AUM of the funds at the end of June 2020 was £85.7m. These now bring in a steady amount of income amounting to £179,707 in the year.. Performance of these funds has been very good. We are in the process of putting the funds in the relevant IA sectors. |
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Regarding our "off platform assets" the FCA has said there is no current threat to the continuation of payment of trail commission to us. We have had several meetings with our Asset Management suppliers and they have no intention to make changes at this time. |
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Unfortunately our platform provider, Aegon has continued to have operational and technology issues and not implemented the improvements we were promised. Hence we are launching a new platform for our clients "The new Chelsea Platform" is set to launch in Q4 2020.The new platform will enable Chelsea to take more control of its service proposition and branding. New technology will bring immediate benefits to Chelsea's customers in the form of a significantly improved client portal, more functionality, a fully integrated pension and continuing enhancements such as in-app". |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risk to the Company's business remains that a severe stock market downturn would reduce the level of renewal commissions and fees and might precipitate a general move by clients to disinvest, though experience of recent volatility suggests that most clients do not sell their investments and some regard it as an opportunity to buy. |
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Any unforeseen regulatory change could also impact us but there are no obvious issues on the horizon today. We continue to meet and give feedback with the FCA on issues that may affect us and our clients. |
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There have been no significant events that would affect the accounts since the year end. |
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The Board consider that the effects of Brexit will not be significant with regard to future results. |
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Chelsea Financial Services PLC (Registered number: 01728085) |
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Strategic Report |
for the Year Ended 30 June 2020 |
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KEY PERFORMANCE INDICATORS |
The Directors consider Key Performance Indicators continue to be fee income and net profit. After taking into account compensation fees received last year from the problems with the platform, ongoing income has reduced by 2.5% which the directors consider satisfactory in the current climate. Net profit has been impacted by the reduction in fees and the increase in administration costs arising from the granting of share options during the year, such that net profit has reduced by 61%. Additional expenditure on technology was also a factor in the reduced profits. |
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ON BEHALF OF THE BOARD: |
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Chelsea Financial Services PLC (Registered number: 01728085) |
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Report of the Directors |
for the Year Ended 30 June 2020 |
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The directors present their report with the financial statements of the company for the year ended 30 June 2020. |
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PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of arranging investment transactions on an execution only basis. |
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DIVIDENDS |
The total distribution of dividends for the year ended 30 June 2020 will be £775,000. |
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FUTURE DEVELOPMENTS |
The directors report that the revenue and profits for 2021 should be similar to that of 2020. Assets Under Administration have been growing steadily over the last few years. |
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The directors are satisfied that the company is in very good health financially. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2019 to the date of this report. |
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POLITICAL DONATIONS AND EXPENDITURE |
There were no political donations. |
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CLOSE COMPANY |
The Company is a close company as defined by the Income and Corporation Taxes Act 1988. |
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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. |
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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: |
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- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
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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. |
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Chelsea Financial Services PLC (Registered number: 01728085) |
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Report of the Directors |
for the Year Ended 30 June 2020 |
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STATEMENT OF DIRECTORS' RESPONSIBILITIES - continued |
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. |
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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 auditor is 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 auditor is aware of that information. |
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AUDITOR |
The auditor, Paul Hartley FCA, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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Report of the Independent Auditor to the Members of |
Chelsea Financial Services PLC |
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Opinion |
I have audited the financial statements of Chelsea Financial Services PLC (the 'company') for the year ended 30 June 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and 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). |
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In my opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 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. |
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Basis for opinion |
I conducted my audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. My responsibilities under those standards are further described in the Auditor responsibilities for the audit of the financial statements section of my report. I am independent of the company in accordance with the ethical requirements that are relevant to my audit of the financial statements in the UK, including the FRC's Ethical Standard, and I have fulfilled my other ethical responsibilities in accordance with these requirements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my opinion. |
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Conclusions relating to going concern |
I have nothing to report in respect of the following matters in relation to which the ISAs (UK) require me to report to you where: |
- | the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
- | the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. |
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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 my Report of the Auditor thereon. |
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My opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in my report, I do not express any form of assurance conclusion thereon. |
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In connection with my audit of the financial statements, my responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or my knowledge obtained in the audit or otherwise appears to be materially misstated. If I identify such material inconsistencies or apparent material misstatements, I am required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work I have performed, I conclude that there is a material misstatement of this other information, I am required to report that fact. I have nothing to report in this regard. |
Report of the Independent Auditor to the Members of |
Chelsea Financial Services PLC |
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Opinions on other matters prescribed by the Companies Act 2006 |
In my 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. |
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Matters on which I am 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, I have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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I have nothing to report in respect of the following matters where the Companies Act 2006 requires me to report to you if, in my opinion: |
- | adequate accounting records have not been kept, or returns adequate for my audit have not been received from branches not visited by me; 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 |
- | I have not received all the information and explanations I require for my audit. |
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Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on pages four and 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. |
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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. |
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Auditor's responsibilities for the audit of the financial statements |
My 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 Auditor that includes my 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. |
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A further description of my 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 my Report of the Auditor. |
Report of the Independent Auditor to the Members of |
Chelsea Financial Services PLC |
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Use of my 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. My audit work has been undertaken so that I might state to the company's members those matters I am required to state to them in a Report of the Auditor and for no other purpose. To the fullest extent permitted by law, I do not accept or assume responsibility to anyone other than the company and the company's members as a body, for my audit work, for this report, or for the opinions I have formed. |
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Statutory Auditor |
Owner |
PO Box 27075 |
London |
N2 0FZ |
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Chelsea Financial Services PLC (Registered number: 01728085) |
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Income Statement |
for the Year Ended 30 June 2020 |
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2020 | 2019 |
Notes | £ | £ |
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TURNOVER | 3 |
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Administrative expenses |
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893,526 | 2,425,351 |
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Other operating income |
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OPERATING PROFIT | 5 |
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Interest receivable and similar income |
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PROFIT BEFORE TAXATION |
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Tax on profit | 6 |
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PROFIT FOR THE FINANCIAL
YEAR |
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Chelsea Financial Services PLC (Registered number: 01728085) |
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Other Comprehensive Income |
for the Year Ended 30 June 2020 |
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2020 | 2019 |
Notes | £ | £ |
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PROFIT FOR THE YEAR |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE
INCOME FOR THE YEAR |
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Chelsea Financial Services PLC (Registered number: 01728085) |
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Balance Sheet |
30 June 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
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Investments | 9 |
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CURRENT ASSETS |
Debtors | 10 |
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Investments | 11 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 12 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CAPITAL AND RESERVES |
Called up share capital | 14 |
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Share reserves | 15 |
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Retained earnings | 15 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors and authorised for issue on
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Chelsea Financial Services PLC (Registered number: 01728085) |
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Statement of Changes in Equity |
for the Year Ended 30 June 2020 |
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Called up |
share | Retained | Share | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
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Balance at 1 July 2018 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 30 June 2019 |
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Changes in equity |
Issue of share capital |
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Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 30 June 2020 |
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Chelsea Financial Services PLC (Registered number: 01728085) |
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Cash Flow Statement |
for the Year Ended 30 June 2020 |
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2020 | 2019 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 21 |
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Tax paid | ( |
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Net cash from operating activities |
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Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
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Purchase of current asset investments | - | (300,000 | ) |
Interest received |
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Net cash from investing activities |
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Cash flows from financing activities |
Amount introduced by directors | 25,000 | - |
Amount withdrawn by directors | - | (30,000 | ) |
Share issue |
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Equity dividends paid | ( |
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Net cash from financing activities | ( |
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Increase in cash and cash equivalents |
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Cash and cash equivalents at
beginning of year |
22 |
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6,287,129 |
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Cash and cash equivalents at end of
year |
22 |
7,283,183 |
7,251,734 |
Chelsea Financial Services PLC (Registered number: 01728085) |
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Notes to the Financial Statements |
for the Year Ended 30 June 2020 |
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1. | STATUTORY INFORMATION |
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Chelsea Financial Services PLC is a public limited company not listed on any exchange, 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. |
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The presentation and functional currency of the accounts is £Sterling. |
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2. | ACCOUNTING POLICIES |
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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 modified to include certain assets at fair value. |
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Turnover |
Turnover represents brokerage and fees and is taken to credit when earned, with the exception of life and pensions brokerage fees which are credited when received. Brokerage and fees received post year end that relate to the current year are recognised on a time-proportioned basis. |
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Depreciation |
Depreciation is provided using the following rates and bases to reduce by annual instalments the cost of tangible and intangible assets over their estimated useful lives:- |
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Office Equipment,Fixtures and Fittings | 10-20% | Straight Line |
Computer Equipment | 33 1/3% | Straight Line |
Leasehold improvements - short | 10% | Straight Line over the life of the lease |
Leasehold improvements - long | 2% | Straight Line |
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Art Work has been purchased for decorative purposes, rather than for capital growth, and so is included in tangible fixed assets at cost. Depreciation is no longer provided on the art work as its residual value is not considered to be less that the current carrying value. |
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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. |
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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. |
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Chelsea Financial Services PLC (Registered number: 01728085) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 June 2020 |
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2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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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. |
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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. |
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Pension costs and other post-retirement benefits |
Pension contributions are charged to the profit and loss account in the year of payment. These contributions are invested separately from the company's assets. |
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Consolidated accounts |
The company has not prepared consolidated accounts as the subsidiary company is dormant and any effect would be immaterial. |
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Employee benefit trust |
The Company operates an EBT and has de facto control of the shares held by the trust and bears their benefits and risks. The Company records certain assets and liabilities of the trust as its own. Finance costs and administrative expenses are charged as they accrue. Consideration paid by the EBT scheme for shares of the Company is deducted in arriving at shareholders' funds. |
Chelsea Financial Services PLC (Registered number: 01728085) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 June 2020 |
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2. | ACCOUNTING POLICIES - continued |
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Share based payments |
The company has issued share options to certain directors and employees. These must be measured at fair value and recognised as an expense in the profit and loss account with a corresponding increase in equity. The fair value of the options was estimated at the date of grant using the Black-Scholes option-pricing model. The fair value will be charged as an expense in the profit and loss account over the vesting period. The charge is adjusted each year to reflect the expected and actual level of vesting. |
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Investments |
Current asset investments are valued at fair value. Listed investments are included at Stock market bid price. |
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Operating Leases |
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Rentals payable under operating leases are taken to the profit and loss account on a straight line basis over the lease term. |
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Debtors and Creditors |
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Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
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Key Judgments and Estimations |
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The key judgments and estimations used by the directors are the residual value and useful lives of fixed assets including artwork |
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3. | TURNOVER |
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The turnover and profit before taxation are attributable to the one principal activity of the company. |
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An analysis of turnover by class of business is given below: |
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2020 | 2019 |
£ | £ |
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An analysis of turnover by geographical market is given below: |
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2020 | 2019 |
£ | £ |
United Kingdom |
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Chelsea Financial Services PLC (Registered number: 01728085) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 June 2020 |
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3. | TURNOVER - continued |
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The turnover is wholly attributable to that of Chelsea Financial Services PLC, which during the year represented brokerage and commission earned and life and pensions brokerage fees received. |
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4. | EMPLOYEES AND DIRECTORS |
2020 | 2019 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
2020 | 2019 |
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Administration |
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2020 | 2019 |
£ | £ |
Directors' remuneration |
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Directors' pension contributions to money purchase schemes |
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Information regarding the highest paid director is as follows: |
2020 | 2019 |
£ | £ |
Emoluments etc |
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5. | OPERATING PROFIT |
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The operating profit is stated after charging: |
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2020 | 2019 |
£ | £ |
Auditors remuneration |
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Operating lease rentals Land and Buildings |
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Fair value gain on listed investments |
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Commission paid to a director | 150,000 | 181,250 |
Benefits in Kind | 24,412 | 17,550 |
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The number of directors accruing benefits under money purchase
pension schemes are: |
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Number | Number |
Money Purchase | 3 | 3 |
Chelsea Financial Services PLC (Registered number: 01728085) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 June 2020 |
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6. | TAXATION |
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Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2020 | 2019 |
£ | £ |
Current tax: |
UK corporation tax |
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Prior year adjustment | - | (36,769 | ) |
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Tax on profit |
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Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
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2020 | 2019 |
£ | £ |
Profit before tax |
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Profit multiplied by the standard rate of corporation tax in the UK
of |
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Effects of: |
Expenses not deductible for tax purposes |
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Capital allowances in excess of depreciation | ( |
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Adjustments to tax charge in respect of previous periods |
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( |
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Underprovision | 16,794 | - |
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Total tax charge | 219,732 | 478,434 |
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7. | DIVIDENDS |
2020 | 2019 |
£ | £ |
Ordinary A shares of .01 each |
Final |
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Chelsea Financial Services PLC (Registered number: 01728085) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 June 2020 |
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8. | TANGIBLE FIXED ASSETS |
Fixtures |
Paintings | and |
& Artwork | fittings | Totals |
£ | £ | £ |
COST |
At 1 July 2019 |
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Additions |
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At 30 June 2020 |
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DEPRECIATION |
At 1 July 2019 |
and 30 June 2020 |
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NET BOOK VALUE |
At 30 June 2020 |
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At 30 June 2019 |
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9. | FIXED ASSET INVESTMENTS |
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Chelsea Portfolio Management Limited (Company No 10604512) is a dormant subsidiary company. The company, which has the same registered address at the parent, has £1 share capital which is held by Chelsea Financial Services plc and no assets or liabilities. |
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10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
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Amounts owed by associated |
undertakings | 84,271 | 138,711 |
Chelsea Pension Fund | 62 | 62 |
Employment Benefit Trust | 52,800 | 52,800 |
VAT |
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Prepayments |
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Debtors are shown after making provisions for all debts which the Directors feel are likely to prove irrecoverable. |
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The debtor of £52,800 is owed by the Employment Benefit Trust as per Accounting Policy (Note 2). |
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11. | CURRENT ASSET INVESTMENTS |
2020 | 2019 |
£ | £ |
Listed investments | 1,054,569 | 1,056,447 |
Market value of listed investments at 30 June 2020 - £ 1,054,569 (2019 - £ 1,056,447 ). |
Chelsea Financial Services PLC (Registered number: 01728085) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2020 |
|
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Corporation Tax | 139,818 | 230,730 |
Social security and other taxes |
|
|
Directors' current accounts | 25,000 | - |
Accruals and deferred income |
|
|
|
|
|
13. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2020 | 2019 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
In more than five years |
|
|
|
|
|
14. | CALLED UP SHARE CAPITAL |
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
|
Ordinary A | .01 | 50,000 | 50,000 |
|
Ordinary B | .01 | 4,400 | 2,600 |
54,400 | 52,600 |
|
180,000 B ordinary shares of 1p were issued on 9 March 2020. These were issued under the terms of the share option scheme ( note 20 ) as follows: |
|
90,000 B ordinary shares of 1p were issued at 17p generating £15,300 and 90,000 B ordinary shares of 1p were issued at 33p generating £29,700. This resulted in the Share Reserves increasing by £43,200 ( Note 15 ) |
|
The share option scheme was exercised on 9 March 2020 and closed down. |
Chelsea Financial Services PLC (Registered number: 01728085) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2020 |
|
15. | RESERVES |
Retained | Share |
earnings | reserves | Totals |
£ | £ | £ |
|
At 1 July 2019 |
|
|
9,133,153 |
Profit for the year |
|
|
Dividends | ( |
) | ( |
) |
Share reserves | - | 43,200 | 43,200 |
At 30 June 2020 |
|
|
9,104,226 |
|
16. | PENSION COMMITMENTS |
|
The company operates five money purchase pension schemes. The assets of the schemes are held separately from those of the company in independently administered funds. Contributions payable by the company amounted to £73,476 (2019 - £59,905. All contributions were paid in the year. |
|
17. | CAPITAL COMMITMENTS |
|
There are no capital commitments as at 30 June 2020. |
|
18. | RELATED PARTY DISCLOSURES |
|
|
2020 | 2019 |
£ | £ |
Expenses Paid | 198,501 | 48,977 |
Rent received | 6,000 | 6,000 |
Balance due | - | 1,500 |
Amount due from related party |
|
|
|
|
2020 | 2019 |
£ | £ |
Dividends | 775,000 | 700,000 |
|
|
2020 | 2019 |
£ | £ |
Rent Paid to Pension Scheme in which directors are members and
trustees |
151,000 |
151,000 |
Amount due from Pension Scheme in which directors are members
and trustees |
|
|
Amount due from Benefit Scheme Employment Benefit Trust |
|
|
|
|
Chelsea Financial Services PLC (Registered number: 01728085) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2020 |
|
18. | RELATED PARTY DISCLOSURES - continued |
|
There are no key management personnel other than the directors. Directors' remuneration can be found in Note 4. |
|
19. | ULTIMATE CONTROLLING PARTY |
|
The controlling party is Dr J M Holder. |
Chelsea Financial Services PLC (Registered number: 01728085) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2020 |
|
20. | SHARE-BASED PAYMENT TRANSACTIONS |
|
Employee share option plan |
|
The group has an ownership based compensation for Directors and senior employees of the Group. |
In accordance with the provisions of the plan as approved by shareholders at a previous annual general meeting, directors and senior employees may be granted options to purchase ordinary shares at an exercise price at 33p and 17p for B Ordinary shares of 1p each. Half of each option vested in March 2015 and those vested options were exercised then. |
|
Each employee share option converts into one ordinary share of Chelsea Financial Services PLC on exercise. |
No amounts are paid or payable by the recipient on receipt of the option. The options carry neither rights to dividends nor voting rights. Options may be exercised at any time from the date of vesting to the date of their expiry. |
The number of options granted is calculated in accordance with the performance-based formula approved by shareholders at a previous annual general meeting and is subject to approval by the Directors. |
The formula rewards executives and senior employees to the extent of the Group's and individual's achievement against both qualitative and quantitative criteria from the following financial and customer service measures: |
Improvement in share price |
Reduction in warranty claims |
Improvement in net profit |
Results of client satisfaction surveys |
Improvement in return to shareholders |
Reduction in rate of staff turnover |
The options granted expire within twelve months of their maturity date, or one month of the resignation of the executive or senior employee, whichever is the earlier. |
|
Directors' and employees' interests including family interests of options in B Ordinary share of 1p each at 30 June 2019 were as follows: |
|
Date of Grant | No of Shares | Price | Exercise period |
Mrs JA Schooling Latter | 18 March 2010 | 30,000 | 17p | 2020 |
28 March 2013 | 20,000 | 33p | 2020 |
Mr SD Holder | 18 March 2010 | 30,000 | 17p | 2020 |
28 March 2013 | 20,000 | 33p | 2020 |
Mr ST McDermott | 18 March 2010 | 30,000 | 33p | 2020 |
28 March 2013 | 20,000 | 17p | 2020 |
1 Senior Employee | 28 March 2013 | 30,000 | 33p | 2020 |
|
All share options granted were treated as vesting immediately. |
|
The share option scheme was exercised on 9 March 2020 and the Share Option Scheme ceased to operate. |
Chelsea Financial Services PLC (Registered number: 01728085) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2020 |
|
21. |
RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED
FROM OPERATIONS |
2020 | 2019 |
£ | £ |
Profit for the financial year |
|
|
Loss on disposal of fixed assets |
|
|
Finance income | (17,324 | ) | (65,556 | ) |
Taxation |
|
|
907,159 | 2,500,179 |
Decrease in trade and other debtors |
|
|
Increase/(decrease) in trade and other creditors |
|
( |
) |
Cash generated from operations |
|
|
|
22. | 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 2020 |
30.6.20 | 1.7.19 |
£ | £ |
Cash and cash equivalents | 7,283,183 | 7,251,734 |
Year ended 30 June 2019 |
30.6.19 | 1.7.18 |
£ | £ |
Cash and cash equivalents | 7,251,734 | 6,287,129 |
|
|
23. | ANALYSIS OF CHANGES IN NET FUNDS |
|
At 1.7.19 | Cash flow | At 30.6.20 |
£ | £ | £ |
Net cash |
Cash at bank | 7,251,734 | 31,449 | 7,283,183 |
7,251,734 |
|
7,283,183 |
|
Liquid resources |
Current asset investments | 1,056,447 | (1,878 | ) | 1,054,569 |
1,056,447 | (1,878 | ) | 1,054,569 |
Total | 8,308,181 | 29,571 | 8,337,752 |
Chelsea Financial Services PLC (Registered number: 01728085) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2020 |
|
|
24. | REVENUE COMMITMENTS |
|
The company has a lease agreement with Chelsea Financial Services PLC Pension Fund for its office premises from 22 February 2014 for 10 years to 21 February 2024 in the sum of £96,000 per annum. |
|
25. | SHARE RESERVES |
|
The group and the company have a Share Reserve credit due to the Share Based Calculation as stated in the Notes. |