Registration number:
LGB & Co. Limited
for the Year Ended 31 March 2022
LGB & Co. Limited
Contents
Company Information |
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Directors' Report |
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Balance Sheet |
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Notes to the Financial Statements |
LGB & Co. Limited
Company Information
Directors |
Andrew Boyle Cedric Parent Simone Westerhuis |
Company secretary |
Marlena Rosser |
Registered office |
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Auditor |
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LGB & Co. Limited
Directors' Report for the Year Ended 31 March 2022
The directors present their report and the financial statements for the year ended 31 March 2022.
Directors of the company
The directors who held office during the year were as follows:
Principal activity
The principal activities of the company are the provision of capital raising and investment services.
Pillar 3 Disclosure
LGB & Co Limited (“the Company” or “LGB”) is required by the FCA to make Pillar 3 disclosure. LGB was authorised by the Financial Services Authority on 21 February 2006. The Company is a Solo regulated entity. Its activities give it the categorisation of an IFPRU Firm. The Company has documented the disclosures required by the FCA and they are available upon request to the Company Secretary at the Company’s registered office.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Small companies provision statement
This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
Approved and authorised by the
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LGB & Co. Limited
(Registration number: 05602072)
Balance Sheet as at 31 March 2022
Note |
2022 |
2021 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Other financial assets |
684,259 |
640,434 |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Revaluation reserve |
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Other reserves |
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Profit and loss account |
( |
( |
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Total equity |
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These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
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LGB & Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Presentational currency is Sterling Pound (GBP).
Audit report
LGB & Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Revenue recognition
Turnover represents amounts chargeable, net of value added tax, in respect of services provided to the customers.
The company's services can be broadly categorised as:
- Corporate Finance advice in relation to Merger & Acquisition and financing
- Arrangement fees/commissions in respect of Merger & Acquisition and finance transaction success fees.
- Provision of investment advice to individual and institutional investors
Revenue is recognised during a given period when:
1. An invoice for services rendered is issued to a client.
2. An income accrual is made on contracted work according to :
a) With respect to hourly billing; the hourly rate multiplied the number of hours completed.
b) With respect to per annum charges: the annual rate multiplied by the portion of the year elapsed.
c) With respect to fundraising commissions; the total amount of commitments made by investors multiplied by the percentage commission.
3. The Company is entitled to a percentage of profits on some investment portfolios. Carried interest in respect of profits on contracted advisory investment portfolios is recognised by:
a) Accrual on unrealised profits according to a Black-Scholes option pricing mechanism in advance of an invoicing event
b) Accrual on the actual profit made on realised investments in advance of an invoicing event.
c) Invoicing of unrealised/realised profits according to the terms of the particular advisory contract.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Furniture, fittings and equipment |
25% straight line |
Intangible assets
Intangible asset relates to development cost incurred towards building the company’s website. These are stated in the balance sheet at historical cost less accumulated amortisation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
LGB & Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Website development cost |
25% straight line but none in the year of capitalisation |
Investments
Investments in securities are classified on initial recognition as available-for-sale and are carried at fair value, except where their fair value cannot be measured reliably, in which case they are carried at cost, less any impairment. By their nature the investments, being in unquoted companies, are illiquid and can be subject to volatility in value.
Unrealised holding gains and losses other than impairments are recognised in other comprehensive income. On maturity or disposal, net gains and losses previously deferred in accumulated other comprehensive income are recognised in income.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method.
Dividends on equity securities are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
LGB & Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
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.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
LGB & Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Intangible assets |
Website development cost |
Total |
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Cost or valuation |
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At 1 April 2021 |
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Additions acquired separately |
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At 31 March 2022 |
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Amortisation |
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At 1 April 2021 |
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Amortisation charge |
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At 31 March 2022 |
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Carrying amount |
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At 31 March 2022 |
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At 31 March 2021 |
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Tangible assets |
Fixtures and fittings |
Other tangible assets |
Total |
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Cost or valuation |
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At 1 April 2021 |
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At 31 March 2022 |
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Depreciation |
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At 1 April 2021 |
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Charge for the year |
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At 31 March 2022 |
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Carrying amount |
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At 31 March 2022 |
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At 31 March 2021 |
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LGB & Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Other financial assets (current and non-current) |
Financial assets at cost less impairment |
Total |
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Non-current financial assets |
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Cost or valuation |
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At 1 April 2021 |
640,434 |
640,434 |
Revaluations |
70,543 |
70,543 |
Disposals |
(26,718) |
(26,718) |
At 31 March 2022 |
684,259 |
684,259 |
Impairment |
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Carrying amount |
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At 31 March 2022 |
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684,259 |
Debtors |
Current |
2022 |
2021 |
Trade debtors |
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Prepayments |
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Other debtors |
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Debtors includes £132,802 (2021 - £255,220) receivable after more than one year in relation to Carried Interest.
Carried Interest represents the Company's contractual share of profits earned on advisory clients' investment portfolios. The value of Carried Interest has been calculated using Black-Scholes options pricing model using implied volatility rates which the directors believe reflect market circumstances at the balance sheet date. These profits are realisable when the clients' gains are realised.
During the year ended, the Company has placed a provision of £27,918 (2021: £Nil) for Carried Interest due to the planned transition of the Company's advisory services to a fixed fee only basis. This is in conjunction with the Company’s utilisation of a new online investment platform and a review of its investment advisory accounts.
LGB & Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Creditors |
Creditors: amounts falling due within one year
Note |
2022 |
2021 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Taxation and social security |
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Accruals and deferred income |
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Other creditors |
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Creditors: amounts falling due after more than one year
Note |
2022 |
2021 |
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Due after one year |
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Loans and borrowings |
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Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
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No. |
£ |
No. |
£ |
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141,872 |
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141,720 |
Reserves |
The changes to each component of equity resulting from items of other comprehensive income for the current year were as follows:
Revaluation reserve |
Total |
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Surplus/deficit on revaluation of other assets |
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The changes to each component of equity resulting from items of other comprehensive income for the prior year were as follows:
Revaluation reserve |
Total |
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Surplus/deficit on revaluation of other assets |
( |
( |
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LGB & Co. Limited
Notes to the Financial Statements for the Year Ended 31 March 2022
Loans and borrowings |
2022 |
2021 |
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Current and non-current loans and borrowings |
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Bank borrowings |
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Loan notes |
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The loan notes are issued under the terms of LGB’s Medium Term Note Programme. The average interest rate is 7.5%. The loan interest is payable at the end of each quarter except for one issue on which interest is rolled up to the maturity of 15th December 2024.
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2022 |
2021 |
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Not later than one year |
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The amount of non-cancellable operating lease payments recognised as an expense during the year was £