|
|
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
|
FINANCIAL STATEMENTS |
|
FOR THE YEAR ENDED 31 DECEMBER 2018 |
|
FOR |
|
ALEXANDER DAVID SECURITIES LIMITED |
|
|
REGISTERED NUMBER:
|
|
|
|
|
|
|
|
|
|
|
STRATEGIC REPORT, REPORT OF THE DIRECTOR AND |
|
FINANCIAL STATEMENTS |
|
FOR THE YEAR ENDED 31 DECEMBER 2018 |
|
FOR |
|
ALEXANDER DAVID SECURITIES LIMITED |
ALEXANDER DAVID SECURITIES LIMITED (REGISTERED NUMBER: 06015379) |
|
|
|
|
|
|
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
|
|
|
|
Page |
|
Company Information | 1 |
|
Strategic Report | 2 |
|
Report of the Director | 4 |
|
Report of the Independent Auditors | 5 |
|
Statement of Income and Retained Earnings | 7 |
|
Statement of Financial Position | 8 |
|
Notes to the Financial Statements | 9 |
|
ALEXANDER DAVID SECURITIES LIMITED |
|
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
|
|
|
|
|
|
|
DIRECTOR: |
|
|
|
|
|
|
SECRETARY: |
|
|
|
|
|
|
REGISTERED OFFICE: |
|
|
|
|
|
|
|
|
REGISTERED NUMBER: |
|
|
|
|
|
|
AUDITORS: |
|
A trading name of PCM Accounting Limited |
2 Jardine House |
Harrovian Business Village |
Bessborough Road |
Harrow |
Middlesex |
HA1 3EX |
ALEXANDER DAVID SECURITIES LIMITED (REGISTERED NUMBER: 06015379) |
|
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
|
The board presents this strategic report and financial statements for the year ended 31st December, 2018. |
|
FAIR REVIEW OF BUSINESS |
During 2018; revenue, which includes net income from corporate finance and broking services, commissions earned on |
placings, retainer fees, compliance and rental income has increased to £447,558 (2017: £395,177). Expenses incurred |
during the same period have increased to £477,863 (2017: £454,596) and the net profit before taxation increased to |
28,755 (2017: £7,755). |
|
Corporate clients remained at 16, the Financial Conduct Authority (FCA) Appointed Representatives remained at 1 and |
there were 7 staff members (2017: 7), including the director. |
|
PRINCIPAL RISKS AND UNCERTAINTIES |
Pillar 3 disclosures: |
The company is authorised and regulated with the FCA. The FCA is responsible in the United Kingdom for the |
implementation of the Capital Requirements Regulation and Directive IV (CRD IV Framework). |
|
The company is categorised as a limited license firm by the FCA for regulatory capital requirements purposes. |
|
CAPITAL RESOURCES |
The capital resources of the business comprise Tier 1 capital only. |
|
The company has calculated its capital needs in accordance with the relevant regulations and sufficient capital is |
maintained at all times. |
|
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES |
The risk management policy reflects the FCA requirement that adequate financial resources and adequate systems and |
controls are necessary for the effective management of risks. The board of directors determine the company's business |
strategy and risk appetite in conjunction with designing and implementing a risk framework that recognises the risks that |
the business faces. The board also determines how those risks may be mitigated and assess on an on-going basis the |
controls and procedures necessary to manage those risks. The board considers the following as key risks to the company: |
|
BUSINESS RISK |
This risk represents the loss of key staff which may reduce the fee income earned by the company and hinder its ability |
to finance its operations and reimburse its expenses. Business risks are assessed and mitigated as part of the Internal |
Capital Adequacy Assessment Process ("ICAAP"). |
|
OPERATIONAL RISK |
This risk covers a wide range of operational exposures from failed internal processes or external failures in systems |
making it difficult to operate and risk of a regulatory breach. Operational risks and how these are mitigated are assessed |
as part of the ICAAP. |
|
CREDIT RISK |
This risk relates to the exposure to the company's bank balance and any other debtors. This is monitored and assessed on |
a regular basis. |
|
ALEXANDER DAVID SECURITIES LIMITED (REGISTERED NUMBER: 06015379) |
|
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
|
KEY PERFORMANCE INDICATORS |
|
The board will continue to monitor the overhead costs and fee generation capabilities of the company as well as the |
maintenance of resources as part of the regular business reviews. |
|
Key performance indicators are as follows: |
|
2018 | 2017 | 2016 |
£ | £ | £ |
Turnover | 447,558 | 395,177 | 541,456 |
Profit / (Loss) before taxation | 28,755 | 7,755 | (114,976 | ) |
Shareholders' funds | 191,891 | 163,136 | 155,381 |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
ALEXANDER DAVID SECURITIES LIMITED (REGISTERED NUMBER: 06015379) |
|
REPORT OF THE DIRECTOR |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
|
The director presents his report with the financial statements of the company for the year ended 31 December 2018. |
|
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of an investment broker and corporate adviser. |
|
DIRECTORS |
|
|
Other changes in directors holding office are as follows: |
|
|
|
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Strategic Report, the Report of the Director 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: |
|
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
|
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. |
|
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act |
2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a |
director in order to make himself aware of any relevant audit information and to establish that the company's auditors are |
aware of that information. |
|
AUDITORS |
The auditors, Barber & Company (Statutory Auditors), will be proposed for re-appointment at the forthcoming Annual |
General Meeting. |
|
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small |
companies. |
|
ON BEHALF OF THE BOARD: |
|
|
|
|
|
|
|
|
|
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALEXANDER DAVID SECURITIES LIMITED |
|
Opinion |
We have audited the financial statements of Alexander David Securities Limited (the 'company') for the year ended |
31 December 2018 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position 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: |
- |
give a true and fair view of the state of the company's affairs as at 31 December 2018 and of its profit for the year
then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
|
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. |
Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the |
financial statements section of our report. We are independent of the company in accordance with the ethical |
requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, |
and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit |
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
|
Conclusions relating to going concern |
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: |
- |
the director's use of the going concern basis of accounting in the preparation of the financial statements is not
appropriate; or |
- |
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 in the Strategic |
Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors |
thereon. |
|
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise |
explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
|
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing |
so, consider whether the other information is materially inconsistent with the financial statements or our knowledge |
obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or |
apparent material misstatements, we are required to determine whether 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. |
|
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- |
the information given in the Strategic Report and the Report of the Director for the financial year for which the
financial statements are prepared is consistent with the financial statements; and |
- |
the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal
requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ALEXANDER DAVID SECURITIES LIMITED |
|
|
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, |
we have not identified material misstatements in the Strategic Report or the Report of the Director. |
|
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you |
if, in our opinion: |
- |
adequate accounting records have not been kept, or returns adequate for our audit have not been received from
branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- |
the director was not entitled to prepare the financial statements in accordance with the small companies regime and
take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Director. |
|
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page four, 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 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 has no realistic |
alternative but to do so. |
|
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from |
material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. |
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with |
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are |
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic |
decisions of users taken on the basis of these financial statements. |
|
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting |
Council's website at www.frc.org.uk/auditorsresponsibilities . This description forms part of our Report of the Auditors. |
|
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the |
Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those |
matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent |
permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's |
members as a body, for our audit work, for this report, or for the opinions we have formed. |
|
|
|
|
|
for and on behalf of
|
A trading name of PCM Accounting Limited |
2 Jardine House |
Harrovian Business Village |
Bessborough Road |
Harrow |
Middlesex |
HA1 3EX |
|
|
ALEXANDER DAVID SECURITIES LIMITED (REGISTERED NUMBER: 06015379) |
|
STATEMENT OF INCOME AND RETAINED EARNINGS |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
|
31.12.18 | 31.12.17 |
Notes | £ | £ |
|
REVENUE |
|
|
|
Administrative expenses |
|
|
(30,305 | ) | (59,419 | ) |
|
Other operating income |
|
|
OPERATING (LOSS)/PROFIT | ( |
) |
|
|
Gain/loss on revaluation of investments | 52,307 | (31,726 | ) |
29,044 | 8,355 |
|
Interest payable and similar expenses |
|
|
PROFIT BEFORE TAXATION |
|
|
|
Tax on profit | 4 |
|
|
PROFIT FOR THE FINANCIAL YEAR |
|
|
|
Retained earnings at beginning of year | ( |
) | ( |
) |
|
RETAINED EARNINGS AT END OF
YEAR |
( |
) |
( |
) |
ALEXANDER DAVID SECURITIES LIMITED (REGISTERED NUMBER: 06015379) |
|
STATEMENT OF FINANCIAL POSITION |
31 DECEMBER 2018 |
|
31.12.18 | 31.12.17 |
Notes | £ | £ |
CURRENT ASSETS |
Debtors | 5 |
|
|
Investments | 6 |
|
|
Cash at bank |
|
|
|
|
CREDITORS |
Amounts falling due within one year | 7 |
|
|
NET CURRENT ASSETS |
|
|
TOTAL ASSETS LESS CURRENT
LIABILITIES |
|
|
|
CAPITAL AND RESERVES |
Called up share capital | 8 |
|
|
Retained earnings | 9 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
|
|
|
|
|
The financial statements were approved by the director on
|
|
|
|
|
|
|
|
ALEXANDER DAVID SECURITIES LIMITED (REGISTERED NUMBER: 06015379) |
|
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
|
1. | STATUTORY INFORMATION |
|
Alexander David Securities Limited is a
|
The company's registered number and registered office address can be found on the Company Information page. |
|
2. | ACCOUNTING POLICIES |
|
Basis of preparing the financial statements |
|
|
Preparation of consolidated financial statements |
The financial statements contain information about Alexander David Securities Limited as an individual |
company and do not contain consolidated financial information as the parent of a group. The company is exempt |
under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial |
statements. |
|
Going concern |
The company meets its day to day working capital requirements with the support of its director, bankers and |
creditors. At the time of approving these financial statements, the board have a reasonable expectation that the |
company has adequate resources to continue in operational existence for the foreseeable future. The board have |
taken all of these factors into account in their decision to prepare the financial statements on a going concern |
basis. |
|
Turnover |
Turnover represents amounts receivable for corporate advisory fees, fund management fees, commission income |
and other ancillary fees. It also includes the fair value of options over securities which have been received as |
consideration for corporate finance services rendered. |
|
Fees for advisory engagements for which the work is substantially complete or which are at a stage where work |
for which separate payment is due is substantially complete, and which will become due but are not yet invoiced |
are recorded on a right to consideration basis. Where such fees are contingent on the outcome of of a transaction |
they are only accounted for after the transaction has completed. |
|
Turnover is the amount derived from ordinary activities and is stated after trade discounts and Value Added Tax. |
|
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and |
Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or |
directly in equity. |
|
Current or deferred taxation assets and liabilities are not discounted. |
|
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or |
substantively enacted by the statement of financial position date. |
|
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the |
statement of financial position date. |
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from |
those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that |
have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the |
timing difference. |
|
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they |
will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
ALEXANDER DAVID SECURITIES LIMITED (REGISTERED NUMBER: 06015379) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
|
2. | ACCOUNTING POLICIES - continued |
|
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension |
scheme are charged to profit or loss in the period to which they relate. |
|
Financial instruments |
Financial instruments are recognised in the company's statement of financial position when the company |
becomes party to the contractual provisions of the instrument. |
|
Investments |
Investments in quoted equity instruments are carried at fair value and the changes in fair value are recognised in |
the profit and loss account; all other investments are measured at cost less impairment. |
|
3. | EMPLOYEES AND DIRECTORS |
|
The average number of employees during the year was
|
|
4. | TAXATION |
|
Analysis of the tax charge |
No liability to UK corporation tax arose for the year ended 31 December 2018 nor for the year ended |
31 December 2017. |
|
5. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.18 | 31.12.17 |
£ | £ |
Trade debtors |
|
|
Amounts owed by group undertakings |
|
|
Other debtors |
|
|
Prepayments and accrued income |
|
|
|
|
|
6. | CURRENT ASSET INVESTMENTS |
31.12.18 | 31.12.17 |
£ | £ |
Quoted investments | 371,360 | 239,136 |
Unquoted investments | 25,000 | 80,556 |
Warrants to buy quoted investments |
|
|
|
|
|
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.18 | 31.12.17 |
£ | £ |
Trade creditors |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accruals and deferred income |
|
|
|
|
|
Creditors at the balance sheet date include gross cost provisions in relation to the company's director amounting |
to £115,672. |
ALEXANDER DAVID SECURITIES LIMITED (REGISTERED NUMBER: 06015379) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2018 |
|
8. | CALLED UP SHARE CAPITAL |
|
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.18 | 31.12.17 |
value: | £ | £ |
|
Ordinary | £1 | 3,891,644 | 3,891,644 |
|
9. | RESERVES |
Retained |
earnings |
£ |
|
At 1 January 2018 | ( |
) |
Profit for the year |
|
At 31 December 2018 | ( |
) |
|
10. | RELATED PARTY DISCLOSURES |
|
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The |
Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party |
transactions with wholly owned subsidiaries within the group. |
|
11. | ULTIMATE CONTROLLING PARTY |
|
The ultimate parent company is Rosendale Investments Limited. Rosendale Investments Limited is incorporated |
in England & Wales and a copy of its financial statements is available from its registered office located at 30 |
Percy Street, London, W1T 2DB. |