Registration number:
Duet Alternative Investments (UK) Limited
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Brebners
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Duet Alternative Investments (UK) Limited
Contents
Company Information |
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Strategic Report |
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Director's Report |
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Statement of Director's Responsibilities |
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Independent Auditor's Report |
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Statement of Income and Retained Earnings |
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Statement of Financial Position |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Duet Alternative Investments (UK) Limited
Company Information
Director |
H I Gabay |
Registered office |
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Auditor |
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Duet Alternative Investments (UK) Limited
Strategic Report for the Period from 1 January 2018 to 30 June 2019
The director presents his strategic report for the period from 1 January 2018 to 30 June 2019.
Principal activity
The company is authorised and regulated by the Financial Conduct Authority. The principal activity of the company during the period was that of investment management.
Fair review of the business
Although the company’s revenue increased from £350,000 to £650,036 the company made a loss of £47,484 during the period as a result of exchange rate losses amounting to £102,856. Excluding the exchange losses the company’s profitability showed improvement. Net assets have decreased from £287,423 as at December 2017 to £239,939 as at June 2019.
The proportionate increase in revenue in 2019 was primarily driven by new advisory contracts that the company took on during the period. Whilst the level of employment and related costs, that make up the largest proportion of the company’s costs, remained unchanged in 2019, the company made a loss in the period due to foreign currency losses.
The company's key financial and other performance indicators during the period were as follows:
Unit |
2019 |
2017 |
|
Turnover |
£ |
650,036 |
350,000 |
Non-financial performance indicators
The company seeks to ensure that responsible business practice is fully integrated into the management of all of its operations and into the culture of all parts of its business. It believes that the consistent adoption of responsible business practice is essential for operational excellence, which in turn, ensures the delivery of its core objective of returning to profitability.
In a company this size the directors consider there are collectively numerous non-financial performance indicators but none individually are key.
Principal risks and uncertainties
The board is responsible for determining the level of risk acceptable to the company. This is subject to regular review. The company seeks to mitigate its risks through the application of strict limits and controls and a monitoring process at operational level. Where it is appropriate and cost effective risks are passed to insurers.
Duet Alternative Investments (UK) Limited
Strategic Report for the Period from 1 January 2018 to 30 June 2019
Credit Risk
Credit risk is the risk that counterparties will not be able to meet their obligations as they fall due. There are regular credit reviews of counterparty limits to ensure debtors remain at a reasonable level. Credit reviews are undertaken before new counterparties are accepted.
Operational Risk
Operational risk is caused by failures in business processes or the systems or physical infrastructure that support them that have the potential to result in financial loss or reputation damage. This includes errors, omissions, systems failure, lack of resources or physical assets and deliberate acts such as fraud.
The regulated environment in which the company operates, imposes extensive reporting requirements and continuing self assessment and appraisal. The company seeks to continually improve its operating efficiencies and standards.
Liquidity Risk
The company ensures that liquidity is maintained by monitoring cash balances daily to ensure it retains flexibility in the management of cash flows.
Market Risk
The company is subject to being affected by changes in market performance, as income of the company is derived from both performance and management fees arising from funds under management and fees from opportunistic one-off transactions. Changes in market performance present opportunities to the company and the company directors have significant experience in dealing with the markets.
Foreign Currency Risk
The company is exposed to currency risk where it renders or receives invoices in Euros and US Dollars but the company does not hold any significant currency balances. Furthermore, in order to mitigate foreign currency exposures, the company has been working to have its assets and liabilities denominated in GBP where possible.
Interest Rate Risk
The company is exposed to Interest rate risk as interest rates affect the markets in which it advises. Surplus funds are placed on interest bearing deposits wherever practicable, but this does not form a significant proportion of the company income.
COVID-19
The COVID-19 pandemic has had a significant impact on the world economy. It is not expected to affect the firm's opportunities as opportunistic investments will continue to be available as a result of the Pandemic. Duet Group staff have successfully transitioned to working from home. The firm will continue to monitor the situation.
Duet Alternative Investments (UK) Limited
Strategic Report for the Period from 1 January 2018 to 30 June 2019
Future developments
In October 2020, Duet Group made a strategic decision to effect a reorganisation to solely focus on private markets and real assets. As at the date of this report no formal decision had been made about the future of the company.
Approved by the
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Director
Duet Alternative Investments (UK) Limited
Director's Report for the Period from 1 January 2018 to 30 June 2019
The director presents his report and the financial statements for the period from 1 January 2018 to 30 June 2019.
Directors of the company
The directors who held office during the period were as follows:
Disclosure of information in the strategic report
Details of developments and principal financial instruments of the entity are disclosed in the strategic report.
Dividends
No interim dividends were paid in the period. The directors do not recommend the payment of a final dividend.
Disclosure of information to the auditors
The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.
Approved by the Board on
.........................................
H I Gabay
Director
Duet Alternative Investments (UK) Limited
Statement of Director's Responsibilities
The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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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. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Duet Alternative Investments (UK) Limited
Independent Auditor's Report to the Members of Duet Alternative Investments (UK) Limited
for the Period from 1 January 2018 to 30 June 2019
Opinion
We have audited the financial statements of Duet Alternative Investments (UK) Limited (the 'company') for the period from 1 January 2018 to 30 June 2019, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows, 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).
In our 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 2019 and of its loss for the period then ended; |
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have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
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have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
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the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or |
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the director has 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. |
Other information
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Duet Alternative Investments (UK) Limited
Independent Auditor's Report to the Members of Duet Alternative Investments (UK) Limited
for the Period from 1 January 2018 to 30 June 2019
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Director's Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
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adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
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the financial statements are not in agreement with the accounting records and returns; or |
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certain disclosures of director's remuneration specified by law are not made; or |
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we have not received all the information and explanations we require for our audit. |
Responsibilities of the director
As explained more fully in the Statement of Director's Responsibilities (set out on page 6), the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Duet Alternative Investments (UK) Limited
Independent Auditor's Report to the Members of Duet Alternative Investments (UK) Limited
for the Period from 1 January 2018 to 30 June 2019
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
130 Shaftesbury Avenue
W1D 5AR
Duet Alternative Investments (UK) Limited
Statement of Income and Retained Earnings for the Period from 1 January 2018 to 30 June 2019
Note |
2019 |
2017 |
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Turnover |
|
|
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Cost of sales |
- |
( |
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Gross profit |
|
|
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Administrative expenses |
( |
( |
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Operating loss |
( |
( |
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Loss before tax |
( |
( |
|
Taxation |
- |
|
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Loss for the financial period |
( |
( |
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Retained earnings brought forward |
112,423 |
290,136 |
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Retained earnings carried forward |
64,939 |
112,423 |
Duet Alternative Investments (UK) Limited
Statement of Financial Position as at 30 June 2019
Note |
2019 |
2017 |
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Current assets |
|||
Debtors |
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|
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Cash at bank and in hand |
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|
|
|
|
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Creditors: Amounts falling due within one year |
( |
( |
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Net assets |
|
|
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Capital and reserves |
|||
Called up share capital |
175,000 |
175,000 |
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Profit and loss account |
64,939 |
112,423 |
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Shareholders' funds |
239,939 |
287,423 |
Approved and authorised by the
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H I Gabay
Director
Company registration number: 04185482
Duet Alternative Investments (UK) Limited
Statement of Cash Flows for the Period from 1 January 2018 to 30 June 2019
Note |
2019 |
2017 |
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Cash flows from operating activities |
|||
Loss for the period |
( |
( |
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Adjustments to cash flows from non-cash items |
|||
Income tax expense |
- |
( |
|
( |
( |
||
Working capital adjustments |
|||
Decrease in trade and other debtors |
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|
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Increase in trade and other creditors |
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|
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Net cash flow from operating activities |
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|
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Cash flows from financing activities |
|||
Proceeds/payments from loans from group undertaking |
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( |
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Net increase/(decrease) in cash and cash equivalents |
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( |
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Cash and cash equivalents at 1 January |
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|
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Cash and cash equivalents at 30 June |
465,206 |
2,272 |
Duet Alternative Investments (UK) Limited
Notes to the Financial Statements for the Period from 1 January 2018 to 30 June 2019
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
The principal activity of the company is that of investment management and advisory services.
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
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.
Basis of preparation
These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.
Going concern
The statement of financial position at 30 June 2019 showed that the company had net assets of £239,939 including cash at bank of £465,206.
The director considers that the company has adequate financial resources to be able to pay its creditors as they fall due. The company is part of a larger group which pledges full support to the entity, should it be required. As a consequence the directors believe the company is well placed to manage its business risks successfully despite the current uncertain economic outlook.
The company has been able to continue to trade during the Covid-19 pandemic and the director and employees have successfully worked remotely during the restrictions. The company's management accounts to 30 June 2021 shows the company has incurred a loss before taxation of approximately £100,000 but has retained sufficient working capital.
After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Duet Alternative Investments (UK) Limited
Notes to the Financial Statements for the Period from 1 January 2018 to 30 June 2019
Significant Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that effect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
Other than those involving estimations there are no judgements that management have made in the process of applying the entities accounting policies that have a significant effect on the amounts recognised in the financial statements. |
Key sources of estimation uncertainty
Impairment of fund debtors
The group makes an estimate of the recoverable value of fund debtors. When assessing any potential impairment of fund debtors, management considers factors including the ageing profile of debtors and historical experience.
Revenue recognition
The turnover shown in the profit and loss account represents amounts receivable for services provided during the year, exclusive of Value Added Tax.
Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Duet Alternative Investments (UK) Limited
Notes to the Financial Statements for the Period from 1 January 2018 to 30 June 2019
Financial instruments
arrangements entered into. An equity instrument is any contract that evidences a residual interest in the
assets of the entity after deducting all of its financial liabilities.
Revenue |
The analysis of the company's revenue for the period from continuing operations is as follows:
1 January 2018 to 30 June 2019 |
Year ended 31 December 2017 |
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Rendering of services |
|
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The turnover and profit/loss before tax are attributable to the one principal activity of the company.
No geographical analysis of turnover and profit before tax has been prepared as the directors are of the opinion that no part of the company's worldwide market is substantially different from any other and therefore no geographical analysis is required. The turnover and profit/loss before tax are attributable to the one principal activity of the company.
Auditor's remuneration |
1 January 2018 to 30 June 2019 |
Year ended 31 December 2017 |
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Audit of the financial statements |
|
|
Operating loss |
Arrived at after charging/(crediting)
1 January 2018 to 30 June 2019 |
Year ended 31 December 2017 |
|
Foreign exchange losses |
|
|
Exceptional item - legal and professional |
- |
50,369 |
Bad debts written off |
56,615 |
- |
Duet Alternative Investments (UK) Limited
Notes to the Financial Statements for the Period from 1 January 2018 to 30 June 2019
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
1 January 2018 to 30 June 2019 |
Year ended 31 December 2017 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
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The average number of persons employed by the company during the period, analysed by category was as follows:
2019 |
2017 |
|
Management staff |
|
|
Director's remuneration |
The directors' remuneration for the period was as follows:
1 January 2018 to 30 June 2019 |
Year ended 31 December 2017 |
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Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
192,501 |
123,750 |
During the period the number of directors who were receiving benefits and share incentives was as follows:
1 January 2018 to 30 June 2019 |
Year ended 31 December 2017 |
|
Defined contribution plans |
|
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Duet Alternative Investments (UK) Limited
Notes to the Financial Statements for the Period from 1 January 2018 to 30 June 2019
Taxation |
Tax charged/(credited) in the income statement
2019 |
2017 |
|
Current taxation |
||
UK corporation tax |
- |
( |
The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2017 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2019 |
2017 |
|
Loss before tax |
( |
( |
Corporation tax at standard rate |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
( |
Tax increase arising from group relief |
|
- |
Total tax credit |
- |
( |
Debtors |
30 June 2019 |
31 December 2017 |
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Prepayments |
|
|
287,002 |
586,114 |
Cash and cash equivalents |
30 June 2019 |
31 December 2017 |
|
Cash on hand |
|
|
Duet Alternative Investments (UK) Limited
Notes to the Financial Statements for the Period from 1 January 2018 to 30 June 2019
Creditors |
30 June 2019 |
31 December 2017 |
|
Due within one year |
||
Trade creditors |
|
|
Amounts due to group undertakings |
|
|
Social security and other taxes |
|
|
Other payables |
|
|
Accrued expenses |
|
|
Corporation tax liability |
12,191 |
12,191 |
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2019 |
2017 |
|||
No. |
£ |
No. |
£ |
|
|
|
175,000 |
|
175,000 |
There are no restrictions on the distribution of dividends or the repayment of capital.
Reserves |
Profit and loss account - this reserve records retained earnings and accumulated losses.
Duet Alternative Investments (UK) Limited
Notes to the Financial Statements for the Period from 1 January 2018 to 30 June 2019
Related party transactions |
Exemption has been taken under FRS 102 paragraph 33.1A not to disclose transactions or amounts fully due with companies wholly owned within the group.
Controlling Party |
The company is a subsidiary of Duet Alternative Investments Limited (incorporated and registered in Bermuda). The directors consider the controlling party to be Duet Smyrna Limited, registered in the British Virgin Islands.
The smallest group that produces group accounts, incorporating the results of Duet Alternative Investments (UK) Limited is Duet Smyrna Limited, whose registered office is Ritter House, Wickhams Cay II, Road Town, Tortola, VG1110, British Virgin Islands.