Company registration number 06277530 (England and Wales)
PRESTIGE CAPITAL SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PRESTIGE CAPITAL SERVICES LIMITED
COMPANY INFORMATION
Directors
D A Winward
M A Romanek
R McGregor
Secretary
G P May
Company number
06277530
Registered office
1 Charterhouse Mews
London
England
EC1M 6BB
Auditor
Henton & Co LLP
Stag House
Old London Road
Hertford
Hertfordshire
SG13 7LA
PRESTIGE CAPITAL SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Statement of cash flows
14
Notes to the financial statements
15 - 25
PRESTIGE CAPITAL SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present the strategic report for the year ended 31 December 2022.
Review of the business
The directors are satisfied with the company's continued profitability in an economic climate that is challenging for many businesses. Fees receivable have decreased by 0.7% (2021:8.3% decrease) in comparison with last year and costs have increased by 2.3% (2021:13.5% decrease) resulting in profits that are 4.4% of turnover (2021:7.1%).
The directors are satisfied that the company has maintained a strong and stable balance sheet position with a high level of liquidity. Net assets have increased by 6.5% (2021:12% increase) during the year and represent a surplus over the capital requirements set out in the financial reports that the company is required to file as an FCA regulated entity.
Principal risks and uncertainties
As an entity regulated by the FCA, the firm's risk management approach is clearly documented and that appropriate levels of capital are maintained.
At the date of this report, there remains uncertainty about the long-term impact that the Coronavirus pandemic and the conflict in Ukraine will have on the global economy, however the directors consider that the firm is sufficiently robust and that its operations will not be significantly affected by these events. The directors are continuously monitoring the company's cost base and will take action wherever necessary in order to protect all stakeholders should the period of uncertainty continue for longer than expected.
Business Risk
The directors consider that the company's principal business risks are associated with the performance of the investment funds to which its services are provided. The directors are confident that funds are well placed to retain existing clients and attract new business.
Liquidity Risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Foreign currency Risk
The company's principal foreign currency exposures arise from trading with overseas companies and the company has limited its exposure by invoicing its overseas customers in sterling although some exposure may still remain with regards to foreign currency costs. The company policy permits but does not demand that these exposures be hedged in order to fix the cost in sterling.
Credit Risk
Investments of cash surpluses, borrowings, and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the board. All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.
PRESTIGE CAPITAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
Promoting the success of the company
The directors have the following comments regarding the performance of their duties to promote the success of the company:
Interests of members of the company
The company remains a wholly owned subsidiary with a board consisting of one executive director and two non-executive directors. The interests of the board and the shareholders are broadly aligned in that the company should create value by generating strong and sustainable results.
The company reports to and is regulated by the Financial Conduct Authority (FCA"). It is the directors' responsibility to ensure that the company is fully compliant with FCA rules. Regular updates and review of the firm's risk management approach ensure that the company maintains levels of capital that are a surplus over its regulatory requirements.
Board decisions during the year
During the year the company has continued to provide its clients with an excellent level of service and has continued to apply an appropriate level of uplift to the overheads incurred as part of the work undertaken.
The most recent compliance review confirmed that the company maintains levels of capital that are a surplus over its regulatory requirements.
The interests of employees
The company continues to focus on training and supporting its employees in the understanding that a well informed and trained workforce is essential for the company's ongoing success. The company holds regular staff meetings, attended by members of the board, and carries out annual appraisals. The company encourages feedback from its staff and where possible and practical implements suggestions made to improve its procedures and the working environment.
The company offers its employees competitive remuneration packages and all staff members have the opportunity to join the company's Group Pension Plan.
The interests of our customers
It is imperative that customers are provided with an excellent level of customer service and the company's ethos is that the work performed must be of the highest quality to ensure this.
The interests of our suppliers
Due to the nature of the company's activities it is not reliant on suppliers in order to generate our revenue as this is achieved through our staff base. Suppliers are used to provide auxiliary services to our offices and for adhoc services.
The impact of the Company's operations on the community and the environment
The company provides services internationally in many different geographical locations such as the Cayman Islands and Europe. These regions have exacting operating procedures to ensure as little effect as possible is made on the environment and we endeavour to use technology wherever possible to reduce unnecessary travel by our staff.
Maintaining a reputation for high standards of business conduct
The company is committed to maintaining a reputation of the high standards of business conduct associated with FCA regulated firms. The company has a number of policies for all employees to follow and externally prepared compliance reviews are undertaken in respect of any regulated activities.
PRESTIGE CAPITAL SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
D A Winward
Director
12 April 2023
PRESTIGE CAPITAL SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 4 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The principal activity of the company in the year under review was that of providing marketing and administration services.
Results and dividends
The results for the year are set out on page 10.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
D A Winward
M A Romanek
R McGregor
Auditor
The auditors, Henton & Co LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
The company has documented the disclosures required by the FCA under BIPRU 11.3. These are available on the company website.
PRESTIGE CAPITAL SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
On behalf of the board
D A Winward
Director
12 April 2023
PRESTIGE CAPITAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PRESTIGE CAPITAL SERVICES LIMITED
- 6 -
Opinion
We have audited the financial statements of Prestige Capital Services Limited (the 'company') for the year ended 31 December 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 2022 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.
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
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
PRESTIGE CAPITAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PRESTIGE CAPITAL SERVICES LIMITED
- 7 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 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 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.
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.
PRESTIGE CAPITAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PRESTIGE CAPITAL SERVICES LIMITED
- 8 -
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, and non-compliance with laws and regulations, our procedures included the following: enquiring of management concerning the company's policies with regards identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; enquiring of management concerning the company's policies detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; enquiring of management concerning the company's policies in relation to the internal controls established to mitigate risks related to fraud or non- compliance with laws and regulations; discussing among the engagement team where fraud might occur in the financial statements and any potential indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the company operates in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the UK Companies Act 2006, Financial Reporting Standard 102, the Financial Services and Markets Act 2000 and applicable tax legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance concerning compliance with such laws and regulations and any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
The company was authorised and regulated by the Financial Conduct Authority ('the FCA') throughout the period and non-compliance with the rules of the FCA was an area of focus. Our procedures to respond to risks identified in relation to regulatory compliance included the following; enquiries of management and those charged with governance; reviewing the firm's higher level standards and internal compliance reports; reviewing returns submitted to and correspondence with the regulator, performing analytical review to detect receipts of client money and remaining alert to the possibility of accidental receipt of client monies.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). We are not responsible for preventing non compliance and cannot be expected to detect non-compliance with all laws and regulations.
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.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
PRESTIGE CAPITAL SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PRESTIGE CAPITAL SERVICES LIMITED
- 9 -
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.
Stuart Heaney
For and on behalf of Henton & Co LLP
14 April 2023
Statutory Auditor
Stag House
Old London Road
Hertford
Hertfordshire
SG13 7LA
PRESTIGE CAPITAL SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
2022
2021
Notes
£
£
Turnover
3
583,056
587,086
Administrative expenses
(557,594)
(545,309)
Operating profit
4
25,462
41,777
Interest receivable and similar income
7
155
5
Profit before taxation
25,617
41,782
Tax on profit
8
(5,208)
(8,228)
Profit for the financial year
20,409
33,554
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PRESTIGE CAPITAL SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 11 -
2022
2021
£
£
Profit for the year
20,409
33,554
Other comprehensive income
-
-
Total comprehensive income for the year
20,409
33,554
PRESTIGE CAPITAL SERVICES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
9
1,744
4,903
Current assets
Debtors
11
69,382
66,944
Cash at bank and in hand
303,452
283,554
372,834
350,498
Creditors: amounts falling due within one year
12
(40,833)
(41,658)
Net current assets
332,001
308,840
Total assets less current liabilities
333,745
313,743
Provisions for liabilities
Deferred tax liability
13
138
545
(138)
(545)
Net assets
333,607
313,198
Capital and reserves
Called up share capital
15
1,000
1,000
Capital redemption reserve
10,000
10,000
Profit and loss reserves
322,607
302,198
Total equity
333,607
313,198
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved by the board of directors and authorised for issue on 12 April 2023 and are signed on its behalf by:
D A Winward
Director
Company registration number 06277530 (England and Wales)
PRESTIGE CAPITAL SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2021
1,000
10,000
268,644
279,644
Year ended 31 December 2021:
Profit and total comprehensive income
-
-
33,554
33,554
Balance at 31 December 2021
1,000
10,000
302,198
313,198
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
20,409
20,409
Balance at 31 December 2022
1,000
10,000
322,607
333,607
PRESTIGE CAPITAL SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 14 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
20
28,155
25,655
Income taxes paid
(8,365)
(2,924)
Net cash inflow from operating activities
19,790
22,731
Investing activities
Purchase of tangible fixed assets
(47)
(4,790)
Interest received
155
5
Net cash generated from/(used in) investing activities
108
(4,785)
Financing activities
Amount introduced by directors
990
Net cash (used in)/generated from financing activities
-
990
Net increase in cash and cash equivalents
19,898
18,936
Cash and cash equivalents at beginning of year
283,554
264,618
Cash and cash equivalents at end of year
303,452
283,554
PRESTIGE CAPITAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
1
Accounting policies
Company information
Prestige Capital Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Charterhouse Mews, London, England, EC1M 6BB.
1.1
Accounting convention
Statement of compliance
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The directors have a reasonable expectation that the company will have adequate resources to continue in operational existence for the foreseeable future. In making this assessment the directors have considered the impact of world events, such as COVID-19 and the war in Ukraine and the effect this has had on the wider economy on the company, its employees, clients and suppliers.
While there is uncertainty about the further impact that these events will have on the global economy the directors do not believe they impact the use of the going concern basis of preparation nor do they cast significant doubt about the company's ability to continue as a going concern for a period of twelve months from the date of the financial statements being authorised for issue.
The directors consider the company to be sufficiently robust that their operations will not be significantly affected and that they will be able to generate and maintain sufficient levels of cash in order to meet their ongoing commitments for at least the period under review. The company therefore continues to adopt the going concern basis in preparing its financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
PRESTIGE CAPITAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 16 -
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
Straight line over 3 years or 25% reducing balance method
Office equipment
Straight line over 3 years or 5 years or 25% reducing balance method
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
PRESTIGE CAPITAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 17 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
PRESTIGE CAPITAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 18 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
PRESTIGE CAPITAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 19 -
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. The nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had a significant effect on amounts recognised in the financial
statements:
- The annual depreciation charge for all assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually.
- The company makes estimates of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by geographical market
Europe
94,066
48,302
Rest of the World
488,990
538,784
583,056
587,086
2022
2021
£
£
Other revenue
Interest income
155
5
PRESTIGE CAPITAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 20 -
4
Operating profit
2022
2021
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
5,665
5,335
Depreciation of owned tangible fixed assets
3,206
3,611
(Profit)/loss on disposal of tangible fixed assets
-
138
Operating lease charges
19,534
23,149
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Directors
1
1
Non Executive Directors
2
2
Administration
8
8
Total
11
11
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
375,600
366,374
Social security costs
32,465
31,335
Pension costs
16,656
15,982
424,721
413,691
6
Directors' remuneration
2022
2021
£
£
Directors' remuneration
127,831
121,511
Directors' pension contributions to money purchase schemes
5,542
5,390
133,373
126,901
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
155
5
PRESTIGE CAPITAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
7
Interest receivable and similar income
(Continued)
- 21 -
2022
2021
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
155
5
8
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
5,615
8,365
Adjustments in respect of prior periods
52
Total current tax
5,615
8,417
Deferred tax
Origination and reversal of timing differences
(407)
(189)
Total tax charge
5,208
8,228
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
25,617
41,782
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
4,867
7,939
Tax effect of expenses that are not deductible in determining taxable profit
150
157
Adjustments in respect of prior years
52
Capital allowances in excess of depreciation
598
269
Deferred tax
(407)
(189)
Taxation charge for the year
5,208
8,228
PRESTIGE CAPITAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 22 -
9
Tangible fixed assets
Fixtures and fittings
Office equipment
Total
£
£
£
Cost
At 1 January 2022
11,835
8,493
20,328
Additions
47
47
At 31 December 2022
11,835
8,540
20,375
Depreciation and impairment
At 1 January 2022
8,470
6,955
15,425
Depreciation charged in the year
2,149
1,057
3,206
At 31 December 2022
10,619
8,012
18,631
Carrying amount
At 31 December 2022
1,216
528
1,744
At 31 December 2021
3,365
1,538
4,903
10
Financial instruments
2022
2021
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
303,452
283,554
11
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
51,083
47,527
Other debtors
8,903
11,017
Prepayments and accrued income
9,396
8,400
69,382
66,944
12
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
6,393
2,954
Corporation tax
5,615
8,365
Other taxation and social security
9,892
9,340
Other creditors
599
3,410
Accruals and deferred income
18,334
17,589
40,833
41,658
PRESTIGE CAPITAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 23 -
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
138
545
2022
Movements in the year:
£
Liability at 1 January 2022
545
Credit to profit or loss
(407)
Liability at 31 December 2022
138
The deferred tax liability set out above is expected to reverse within [12 months] and relates to accelerated capital allowances that are expected to mature within the same period.
14
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
16,656
15,982
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. There were no outstanding contributions payable to the scheme at the balance sheet date included in creditors (2021: £Nil).
15
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
100,000
100,000
1,000
1,000
PRESTIGE CAPITAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 24 -
16
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
6,350
15,240
Between two and five years
6,350
6,350
21,590
17
Related party transactions
During the year the company made sales amounting to £583,056 (2021: £587,086) to other related parties and the amounts outstanding from these companies at 31 December 2022 were £51,083 (2021: £47,527).
At the end of the year the company owed £44 (2021: £1,585) to a director of the company.
All transactions with related parties are undertaken on normal commercial terms. No interest has been charged on balances with related parties during the current year or the previous year.
18
Ultimate parent company
Premium Europe Group Holdings Limited (formerly Prime Holdings 2 Limited), a company registered in Malta, has been the parent and ultimate parent company throughout the current and the previous year.
19
Ultimate controlling party
C Reeves was the ultimate controlling party throughout the current and the previous year.
20
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
20,409
33,554
Adjustments for:
Taxation charged
5,208
8,228
Investment income
(155)
(5)
(Gain)/loss on disposal of tangible fixed assets
-
138
Depreciation and impairment of tangible fixed assets
3,206
3,611
Movements in working capital:
(Increase)/decrease in debtors
(2,438)
6,720
Increase/(decrease) in creditors
1,925
(26,591)
Cash generated from operations
28,155
25,655
PRESTIGE CAPITAL SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 25 -
21
Analysis of changes in net funds
1 January 2022
Cash flows
31 December 2022
£
£
£
Cash at bank and in hand
283,554
19,898
303,452
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