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Strategic Report, Report of the Directors and |
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Financial Statements for the Year Ended 30 June 2018 |
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Chelsea Financial Services PLC |
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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 2018 |
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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 2018 |
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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 | 3 |
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Report of the Independent Auditor | 5 |
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Income Statement | 8 |
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Other Comprehensive Income | 9 |
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Balance Sheet | 10 |
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Statement of Changes in Equity | 11 |
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Cash Flow Statement | 12 |
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Notes to the Financial Statements | 13 |
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Chelsea Financial Services PLC |
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Company Information |
for the Year Ended 30 June 2018 |
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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 2018 |
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The directors present their strategic report for the year ended 30 June 2018. |
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REVIEW OF BUSINESS |
New business during the period was good, supported by a rise in global stock markets. |
In June 2017 we launched a range of managed funds for clients and attracted inflows of £56m in the first |
year. We are very happy with this and all four funds were ahead of comparable benchmarks at the 1 year |
anniversary. In July 2018 we began to charge our fee for these funds, which had no investment |
administration fee from June 2017-June 2018. |
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Aegon have bought Cofunds and migrated our client assets to their technology in May 2018. This has caused |
our clients and the company some problems. We are working closely with the senior management of Aegon |
to make the issues better. |
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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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We have implemented MIFID 2 as appropriate to our business and our ongoing due diligence and Target |
Market work continues.. |
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After a period of competition in the platform market we are a very stable business and continue to attract |
new customers to our services. |
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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 suggest 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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KEY PERFORMANCE INDICATORS |
Fee income increased by 6% from the previous year which the Board consider very encouraging. |
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The net profit margin for the year ended 30 June 2018 increased by 6.94% from the previous year. |
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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 2018 |
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The directors present their report with the financial statements of the company for the year ended 30 June 2018. |
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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 2018 will be £800,000. |
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FUTURE DEVELOPMENTS |
The directors report that the revenue and profits for 2019 should be similar to that of 2018. 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 2017 to the date of |
this report. |
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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; |
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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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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. |
Chelsea Financial Services PLC (Registered number: 01728085) |
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Report of the Directors |
for the Year Ended 30 June 2018 |
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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 2018 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: |
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give a true and fair view of the state of the company's affairs as at 30 June 2018 and of its profit for the
year then ended; |
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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: |
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the directors' use of the going concern basis of accounting in the preparation of the financial statements is
not appropriate; or |
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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 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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Opinion on other matters prescribed by the Companies Act 2006 |
In my opinion, based on the work undertaken in the course of the audit: |
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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 |
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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 |
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 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. |
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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: |
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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 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. |
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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. |
Report of the Independent Auditor to the Members of |
Chelsea Financial Services PLC |
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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. |
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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 2018 |
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2018 | 2017 |
Notes | £ | £ |
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TURNOVER | 3 |
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Administrative expenses |
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2,159,367 | 1,861,309 |
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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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2,427,752 | 1,940,112 |
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Interest payable and similar expenses | 6 |
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PROFIT BEFORE TAXATION |
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Tax on profit | 7 |
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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 2018 |
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2018 | 2017 |
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 2018 |
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2018 | 2017 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
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Investments | 10 |
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CURRENT ASSETS |
Debtors | 11 |
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Investments | 12 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 13 |
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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 | 15 |
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Share reserves | 16 |
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Retained earnings | 16 |
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SHAREHOLDERS' FUNDS |
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The financial statements were approved by the Board of Directors on
its behalf by: |
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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 2018 |
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Called up |
share | Retained | Share | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
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Balance at 1 July 2016 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - |
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Balance at 30 June 2017 |
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Changes in equity |
Dividends | - | ( |
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Total comprehensive income | - | 1,918,459 | - | 1,918,459 |
Balance at 30 June 2018 |
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Chelsea Financial Services PLC (Registered number: 01728085) |
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Cash Flow Statement |
for the Year Ended 30 June 2018 |
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2018 | 2017 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 23 |
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Interest paid | ( |
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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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Sale of tangible fixed assets |
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Sale of fixed asset investments |
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Purchase of current asset investments | - | (68,737 | ) |
Interest received |
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Net cash from investing activities |
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( |
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Cash flows from financing activities |
Amount introduced by directors | 30,000 | - |
Amount withdrawn by directors | (55,000 | ) | - |
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 |
24 |
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4,535,046 |
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Cash and cash equivalents at end of
year |
24 |
6,287,129 |
5,599,813 |
Chelsea Financial Services PLC (Registered number: 01728085) |
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Notes to the Financial Statements |
for the Year Ended 30 June 2018 |
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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. There was no turnover in the year of |
the subsidiary company. |
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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 as the Art is for decorative |
purposes only. |
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Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less impairment. |
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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 2018 |
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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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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. |
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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 |
Chelsea Financial Services PLC (Registered number: 01728085) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 June 2018 |
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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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2018 | 2017 |
£ | £ |
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An analysis of turnover by geographical market is given below: |
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2018 | 2017 |
£ | £ |
United Kingdom |
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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 |
2018 | 2017 |
£ | £ |
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: |
2018 | 2017 |
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Administration | 21 | 17 |
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2018 | 2017 |
£ | £ |
Directors' remuneration |
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Directors' pension contributions to money purchase schemes |
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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 2018 |
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4. | EMPLOYEES AND DIRECTORS - continued |
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Information regarding the highest paid director is as follows: |
2018 | 2017 |
£ | £ |
Emoluments etc |
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5. | OPERATING PROFIT |
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The operating profit is stated after charging: |
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2018 | 2017 |
£ | £ |
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 | 181,250 | 252,500 |
Benefits in Kind | 17,550 | 11,200 |
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The number of directors accruing benefits under money purchase
pension schemes are: |
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Number | Number |
Money Purchase | 4 | 4 |
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6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2018 | 2017 |
£ | £ |
Interest on Pension Fund Loan |
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7. | TAXATION |
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Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2018 | 2017 |
£ | £ |
Current tax: |
UK corporation tax |
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Tax on profit |
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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 2018 |
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7. | TAXATION - continued |
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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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2018 | 2017 |
£ | £ |
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 | ( |
) | ( |
) |
options |
Rounding | - | 13 |
Total tax charge | 484,846 | 403,113 |
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8. | DIVIDENDS |
2018 | 2017 |
£ | £ |
Ordinary A shares of .01 each |
Final |
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9. | TANGIBLE FIXED ASSETS |
Fixtures |
Paintings | and |
& Artwork | fittings | Totals |
£ | £ | £ |
COST |
At 1 July 2017 |
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Additions |
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At 30 June 2018 |
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DEPRECIATION |
At 1 July 2017 |
and 30 June 2018 |
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NET BOOK VALUE |
At 30 June 2018 |
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At 30 June 2017 |
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The investment in Art Work is for decorative purposes and at cost. It is not feasible to revalue due to |
the unpredictability of the Art Market. |
Chelsea Financial Services PLC (Registered number: 01728085) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 June 2018 |
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10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2017 |
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Disposals | ( |
) |
At 30 June 2018 |
|
NET BOOK VALUE |
At 30 June 2018 |
|
At 30 June 2017 |
|
|
The 55% shareholding in Fundcalibre Limited was transferred to the directors at Nil cost (see Note |
20). |
|
JMSL Limited was struck off during the year. |
|
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Employment Benefit Trust | 52,800 | 52,800 |
VAT |
|
|
Prepayments |
|
|
|
|
|
Debtors are shown after making provisions for all debts which the Directors feel are likely to prove |
irrecoverable. |
|
The debtor of £52,800 is owed by the Employment Benefit Trust as per Accounting Policy (Note 2). |
|
12. | CURRENT ASSET INVESTMENTS |
2018 | 2017 |
£ | £ |
Listed investments | 721,649 | 705,233 |
Market value of listed investments at 30 June 2018 - £ 721,649 (2017 - £ 705,233 ). |
Chelsea Financial Services PLC (Registered number: 01728085) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2018 |
|
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2018 | 2017 |
£ | £ |
Corporation Tax | 136,769 | 51,922 |
Pension fund loan | - | 424,491 |
Directors' current accounts | 30,000 | 55,000 |
Accruals and deferred income |
|
|
|
|
|
14. | LEASING AGREEMENTS |
|
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2018 | 2017 |
£ | £ |
Within one year |
|
|
Between one and five years |
|
|
|
|
|
15. | CALLED UP SHARE CAPITAL |
|
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2018 | 2017 |
value: | £ | £ |
|
Ordinary A | .01 | 50,000 | 50,000 |
|
Ordinary B | .01 | 2,600 | 2,600 |
52,600 | 52,600 |
|
16. | RESERVES |
Retained | Share |
earnings | reserves | Totals |
£ | £ | £ |
|
At 1 July 2017 |
|
|
6,627,393 |
Profit for the year |
|
|
Dividends | ( |
) | ( |
) |
At 30 June 2018 |
|
|
7,745,852 |
|
17. | 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 £74,890 (2017 - £49,474). All contributions were paid in the year. |
Chelsea Financial Services PLC (Registered number: 01728085) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2018 |
|
18. | CONTINGENT LIABILITIES |
|
There are no contingent liabilities as at 30 June 2018. |
|
19. | CAPITAL COMMITMENTS |
|
There are no capital commitments as at 30 June 2018. |
|
20. | RELATED PARTY DISCLOSURES |
|
|
2018 | 2017 |
£ | £ |
Management Fee |
|
|
Expenses Paid | 68,202 | 45,849 |
Amount due from related party |
|
|
|
|
2018 | 2017 |
£ | £ |
Dividends | 800,000 | 650,000 |
|
|
2018 | 2017 |
£ | £ |
Rent Received from a company under common control | 6,000 | 6,000 |
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 |
|
|
Benefit Scheme Employment Benefit Trust |
|
|
Director's Current account |
|
|
|
|
|
There are no key management personnel other than the directors. Directors' remuneration can be |
found in Note 4. |
|
21. | 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 2018 |
|
22. | 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 on 3 December 2015. |
|
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 2018 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. |
|
Chelsea Financial Services PLC (Registered number: 01728085) |
|
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2018 |
|
23. |
RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS |
2018 | 2017 |
£ | £ |
Profit before taxation |
|
|
Finance costs | 24,447 | - |
Finance income | (46,686 | ) | (31,466 | ) |
2,381,066 | 1,908,646 |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
|
Cash generated from operations |
|
|
|
24. | 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 2018 |
30.6.18 | 1.7.17 |
£ | £ |
Cash and cash equivalents | 6,287,129 | 5,599,813 |
Year ended 30 June 2017 |
30.6.17 | 1.7.16 |
£ | £ |
Cash and cash equivalents | 5,599,813 | 4,535,046 |
|
25. | REVENUE COMMITMENTS |
|
The company has a lease agreement with Chelsea Financial Services PLC Pension Fund for its office |
premises from 22 February 2009 for 10 years to 22 February 2019 in the sum of £72,000 per annum |
which was reviewed in 2014 and is now £96,000. |
|
The company has also entered into a further lease agreement with Chelsea Financial Services PLC |
Pension Fund for additional premises from 1 July 2014 for 10 years to 30 June 2024 in the sum of |
£55,000 per annum. |
|
26. | SHARE RESERVES |
|
The group and the company have a Share Reserve credit due to the Share Based Calculation as stated |
in the Notes. |