Company Registration No. 06462818 (England and Wales)
LONDON WEALTH MANAGEMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
LONDON WEALTH MANAGEMENT LIMITED
COMPANY INFORMATION
Directors
J P Hoban
B J Howland
E T Tudor
Secretary
J P Hoban
Company number
06462818
Registered office
Batchworth House
Batchworth Place
Church Street
Rickmansworth
Hertfordshire
WD3 1JE
Auditor
Mercer & Hole
Batchworth House
Batchworth Place
Church Street
Rickmansworth
Hertfordshire
WD3 1JE
Business address
6 Kingly Street
London
W1B 5PF
LONDON WEALTH MANAGEMENT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Statement of cash flows
9
Notes to the financial statements
10 - 18
LONDON WEALTH MANAGEMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2020
- 1 -
The directors present the strategic report for the year ended 31 January 2020.
Fair review of the business
The financial year ended 31 January 2020 has proved a good year for the business, resulting in a 7% increase in revenue and a corresponding increase in underlying expenditure. Client portfolios performed strongly against benchmark, remaining within their agreed asset allocated risk mandates, given challenging investment markets and political outlook. We maintain our commitment to face-to-face client meetings in order to regularly review objectives and underlying attitudes to investment risk, resulting in appropriate asset allocation and allowing us to deliver positive client outcomes.
The year focussed on alleviating client worries on BREXIT and the December election, as well the implementation of the Senior Manager & Certification Regime Requirements.
As a BIPRU regulated firm, the company continues to be capitalised in excess of regulatory imposed minimum capital adequacy requirements.
Principal risks
Management continue to formally meet quarterly to regularly plan and control principal risks that affect the business, namely:
Uncertainties in the stock market continue, resulting in anticipated greater volatility in client portfolios, but management look to evaluate risks on an ongoing basis via our robust risk analysis of underlying portfolios.
Key performance indicators
Internal management accounts and cash-flow forecasts are reviewed on a monthly basis and are considered a sufficient and suitable indicator of our underlying business position and performance.
Future outlook
The company is potentially looking to a modest increase in client numbers that require our bespoke financial planning led discretionary investment services.
J P Hoban
Director
12 March 2020
LONDON WEALTH MANAGEMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2020
- 2 -
The directors present their annual report and financial statements for the year ended 31 January 2020.
Principal activities
The principal activity of the company continued to be that of
provision of financial services.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J P Hoban
B J Howland
E T Tudor
Results and dividends
Ordinary dividends were paid amounting to £564,000. The directors do not recommend payment of a final dividend.
Auditor
The auditor, Mercer & Hole, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
Other matters
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
On behalf of the board
J P Hoban
Director
12 March 2020
LONDON WEALTH MANAGEMENT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JANUARY 2020
- 3 -
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.
LONDON WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LONDON WEALTH MANAGEMENT LIMITED
- 4 -
Opinion
We have audited the financial statements of London Wealth Management Limited (the 'company') for the year ended 31 January 2020 which comprise 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 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 FRS 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 January 2020 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
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 directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are 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.
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' r
eport 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.
LONDON WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LONDON WEALTH MANAGEMENT LIMITED
- 5 -
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 identifie
d
material misstatements in the strategic report and the directors'
r
eport
.
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 directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s 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.
Mark Cassidy FCA (Senior Statutory Auditor)
for and on behalf of Mercer & Hole
12 March 2020
Chartered Accountants
Statutory Auditor
Batchworth House
Batchworth Place
Church Street
Rickmansworth
Hertfordshire
WD3 1JE
LONDON WEALTH MANAGEMENT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JANUARY 2020
- 6 -
2020
2019
Notes
£
£
Turnover
2
1,844,402
1,717,563
Administrative expenses
(990,317)
(902,677)
Operating profit
3
854,085
814,886
Interest receivable and similar income
7
2,029
1,707
Profit before taxation
856,114
816,593
Tax on profit
8
(161,098)
(164,959)
Profit for the financial year
695,016
651,634
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
LONDON WEALTH MANAGEMENT LIMITED
BALANCE SHEET
AS AT
31 JANUARY 2020
31 January 2020
- 7 -
2020
2019
Notes
£
£
£
£
Fixed assets
Tangible assets
10
59,695
3,442
Current assets
Debtors
11
41,525
46,584
Cash at bank and in hand
829,415
723,521
870,940
770,105
Creditors: amounts falling due within one year
12
(286,720)
(260,648)
Net current assets
584,220
509,457
Total assets less current liabilities
643,915
512,899
Capital and reserves
Called up share capital
14
150,000
150,000
Profit and loss reserves
493,915
362,899
Total equity
643,915
512,899
The financial statements were approved by the board of directors and authorised for issue on 12 March 2020 and are signed on its behalf by:
J P Hoban
B J Howland
Director
Director
Company Registration No. 06462818
LONDON WEALTH MANAGEMENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2020
- 8 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2018
150,000
275,265
425,265
Year ended 31 January 2019:
Profit and total comprehensive income for the year
-
651,634
651,634
Dividends
9
-
(564,000)
(564,000)
Balance at 31 January 2019
150,000
362,899
512,899
Year ended 31 January 2020:
Profit and total comprehensive income for the year
-
695,016
695,016
Dividends
9
-
(564,000)
(564,000)
Balance at 31 January 2020
150,000
493,915
643,915
LONDON WEALTH MANAGEMENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JANUARY 2020
- 9 -
2020
2019
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
17
896,102
802,995
Income taxes paid
(164,959)
(169,150)
Net cash inflow from operating activities
731,143
633,845
Investing activities
Purchase of tangible fixed assets
(63,937)
(1,523)
Issue of other loans
659
1,009
Interest received
2,029
1,707
Net cash (used in)/generated from investing activities
(61,249)
1,193
Financing activities
Dividends paid
(564,000)
(564,000)
Net cash used in financing activities
(564,000)
(564,000)
Net increase in cash and cash equivalents
105,894
71,038
Cash and cash equivalents at beginning of year
723,521
652,483
Cash and cash equivalents at end of year
829,415
723,521
LONDON WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2020
- 10 -
1
Accounting policies
Company information
London Wealth Management Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Batchworth House, Batchworth Place, Church Street, Rickmansworth, Hertfordshire, WD3 1JE.
1.1
Accounting convention
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.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the principal accounting policies adopted as set out below. These policies have been consistently applied to all years presented.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents
invoiced sales of financial services, excluding value added tax
.
Revenue from contracts for the provision of
financial
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
measured by reference to the invoicing period specified in client specific contracts
. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Over the five year lease
Fixtures, fittings & equipment
25% on cost
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.
LONDON WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 11 -
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.
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.
1.6
Cash and cash equivalents
Cash at bank and in hand
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.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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.
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.
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.
LONDON WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 12 -
Basic financial liabilities
Basic financial liabilities, including creditors, 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
paymen
ts 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. A
m
ounts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
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.
LONDON WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 13 -
1.10
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.
1.11
Retirement benefits
All pension costs relate to contributions the company makes into personal pension schemes. Contributions payable are charged to the profit and loss account in the period to which they relate.
1.12
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 lease
s
asset are consumed.
2
Turnover and other revenue
An analysis of the company's turnover is as follows:
2020
2019
£
£
Turnover analysed by class of business
Financial services
1,844,402
1,717,563
2020
2019
£
£
Other significant revenue
Interest income
2,029
1,707
3
Operating profit
2020
2019
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
7,684
1,569
Operating lease charges
71,965
63,367
4
Auditor's remuneration
2020
2019
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
7,300
7,300
LONDON WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 14 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Directors
3
3
Employees
8
6
11
9
Their aggregate remuneration comprised:
2020
2019
£
£
Wages and salaries
416,413
427,362
Social security costs
42,630
44,867
Pension costs
56,175
47,916
515,218
520,145
6
Directors' remuneration
2020
2019
£
£
Remuneration for qualifying services
42,699
41,993
The directors of the company are the sole key management personnel.
7
Interest receivable and similar income
2020
2019
£
£
Interest income
Interest on bank deposits
2,029
1,707
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
2,029
1,707
8
Taxation
2020
2019
£
£
Current tax
UK corporation tax on profits for the current period
161,098
164,959
LONDON WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
8
Taxation
(Continued)
- 15 -
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:
2020
2019
£
£
Profit before taxation
856,114
816,593
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2019: 19.00%)
162,662
155,153
Tax effect of expenses that are not deductible in determining taxable profit
6,918
9,979
Change in unrecognised deferred tax assets
(8,482)
(173)
Taxation charge for the year
161,098
164,959
9
Dividends
2020
2019
£
£
Interim paid
564,000
564,000
10
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 February 2019
-
34,403
34,403
Additions
51,960
11,977
63,937
At 31 January 2020
51,960
46,380
98,340
Depreciation and impairment
At 1 February 2019
-
30,961
30,961
Depreciation charged in the year
4,612
3,072
7,684
At 31 January 2020
4,612
34,033
38,645
Carrying amount
At 31 January 2020
47,348
12,347
59,695
At 31 January 2019
-
3,442
3,442
LONDON WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 16 -
11
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
67
768
Other debtors
15,159
20,067
Prepayments and accrued income
26,299
25,749
41,525
46,584
12
Creditors: amounts falling due within one year
2020
2019
£
£
Trade creditors
15,529
10,589
Corporation tax
161,098
164,959
Other taxation and social security
80,013
72,794
Other creditors
3,113
1,237
Accruals and deferred income
26,967
11,069
286,720
260,648
13
Retirement benefit schemes
2020
2019
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
56,175
47,916
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.
14
Share capital
2020
2019
£
£
Ordinary share capital
Issued and fully paid
136,500 Ordinary A shares of £1 each
136,500
136,500
13,500 Ordinary B shares of £1 each
13,500
13,500
150,000
150,000
LONDON WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 17 -
15
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:
2020
2019
£
£
Within one year
70,000
36,667
Between two and five years
256,667
-
326,667
36,667
16
Directors' transactions
Interest free loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Interest free loan
-
1,696
7,500
(7,684)
1,512
Interest free loan
-
1,028
8,231
(8,178)
1,081
Interest free loan
-
1,406
7,939
(8,466)
879
4,130
23,670
(24,328)
3,472
The balances outstanding at 31 January 2020 were repaid shortly after the year end.
17
Cash generated from operations
2020
2019
£
£
Profit for the year after tax
695,016
651,634
Adjustments for:
Taxation charged
161,098
164,959
Investment income
(2,029)
(1,707)
Depreciation and impairment of tangible fixed assets
7,684
1,569
Movements in working capital:
Decrease/(increase) in debtors
4,400
(10,537)
Increase/(decrease) in creditors
29,933
(2,923)
Cash generated from operations
896,102
802,995
LONDON WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2020
- 18 -
18
Analysis of changes in net funds
1 February 2019
Cash flows
31 January 2020
£
£
£
Cash at bank and in hand
723,521
105,894
829,415
2020-01-31
2019-02-01
false
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