Registration number:
Year Ended
Knox Capital Company Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Knox Capital Company Limited
Company Information
Company number |
08531026 |
FCA FRN |
670881 |
Directors |
J C S Chenevix-Trench A L De Normann K J Steele |
Registered office |
|
Auditors |
|
Knox Capital Company Limited
Strategic Report
Year Ended 31 May 2021
The directors present their strategic report for the year ended 31 May 2021.
Principal activity
The principal activity of the company is the provision of investment management and related services.
Review of the business
During the financial year, the company continued the investment management activities commenced in 2015. The company made a profit before tax for the 2021 financial year of £108,255, which follows the profit before tax of £47,042 in 2020. The company’s turnover is a percentage of managed funds. The company intends to pursue similar activities during the next financial year and will be looking to increase the value of funds under management. During the year a further investment was made in the CCM Knox Global Balanced Fund, a related party, which paid a small amount of dividend income and is accounted for at fair value, with any changes in value being put through the profit and loss account.
At the year end the company had capital and reserves of £392,498 (2020 - £301,643). These reserves exceed the company’s regulatory capital requirements and are more than adequate to enable the company to continue to trade for the foreseeable future.
The COVID 19 pandemic has had little effect the Company’s working practices and the Directors do not envisage this changing at the time of writing. The directors still consider that it is appropriate to treat the company as a going concern.
The company is authorised and regulated by the Financial Conduct Authority with reference number 670881.
Principal risks and uncertainties
The principal risk to the company is a failure in operational controls or poor performance that could lead to reputational damage, loss of clients, compensation, penalties and potentially the loss of authorisation to carry out regulated activities. These could have a significant impact on the company's ability to continue in business.
Approved by the Board on
.........................................
A L De Normann
Director
Knox Capital Company Limited
Directors' Report
Year Ended 31 May 2021
The directors present their report and the financial statements for the year ended 31 May 2021.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Liquidity risk
Expenditure consists largely of fixed overheads. Liquid reserves are maintained to meet forthcoming expenses plus an appropriate margin. At present the company has sufficient liquid reserves in excess of anticipated needs.
Credit risk
Cash surpluses are only deposited with regulated financial institutions. Amounts due under management or service contracts are invoiced regularly and the creditworthiness of clients is monitored. Debtors are also monitored on an ongoing basis. The level of credit risk experienced by the company is taken into account for the purpose of its capital levels, in accordance with the company's FCA authorisation.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved by the Board on
.........................................
A L De Normann
Director
Knox Capital Company Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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.
Knox Capital Company Limited
Independent Auditor's Report to the Members of Knox Capital Company Limited
Opinion
We have audited the financial statements of Knox Capital Company Limited (the 'company') for the year ended 31 May 2021, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• |
give a true and fair view of the state of the company's affairs as at 31 May 2021 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 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 were 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.
Other information
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.
Knox Capital Company Limited
Independent Auditor's Report to the Members of Knox Capital Company Limited
We have nothing to report in this regard.
Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• |
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. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 4, 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.
Knox Capital Company Limited
Independent Auditor's Report to the Members of Knox Capital Company Limited
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.
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 gained an understanding of the legal and regulatory framework applicable to the company by considering, amongst other things, the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the assessed level of risk, but recognised that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, UK Company Law, UK tax legislation and FCA regulations.
Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.
As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by management that represented a risk of material misstatement due to fraud.
There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Knox Capital Company Limited
Independent Auditor's Report to the Members of Knox Capital Company Limited
......................................
For and on behalf of
22 Chancery Lane
WC2A 1LS
Knox Capital Company Limited
Profit and Loss Account
Year Ended 31 May 2021
Note |
2021 |
2020 |
|
Turnover |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
|
|
|
Gain/(loss) on financial assets at fair value through profit and loss account |
|
( |
|
Other interest receivable and similar income |
|
|
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
Knox Capital Company Limited
(Registration number: 08531026)
Balance Sheet as at 31 May 2021
Note |
2021 |
2020 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Other financial assets |
285,042 |
99,660 |
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Share premium reserve |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
.........................................
A L De Normann
Director
Knox Capital Company Limited
Statement of Changes in Equity
Year Ended 31 May 2021
Share capital |
Share premium |
Profit and loss account |
Total |
|
At 1 June 2020 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
At 31 May 2021 |
|
|
|
|
Share capital |
Share premium |
Profit and loss account |
Total |
|
At 1 June 2019 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
At 31 May 2020 |
|
|
|
|
Knox Capital Company Limited
Statement of Cash Flows
Year Ended 31 May 2021
Note |
2021 |
2020 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Financial instrument net (gains)/losses through profit and loss |
( |
|
|
Finance income |
( |
( |
|
Tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
(Increase)/decrease in debtors |
( |
|
|
Increase/(decrease) in creditors |
|
( |
|
Cash generated from operations |
|
|
|
Taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Acquisitions of tangible assets |
- |
( |
|
Acquisition of other financial assets |
( |
( |
|
Dividend income |
|
|
|
Net cash flows from investing activities |
( |
( |
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 June |
|
|
|
Cash and cash equivalents at 31 May |
70,237 |
163,336 |
Knox Capital Company Limited
Notes to the Financial Statements
Year Ended 31 May 2021
General information |
The company is a private company limited by share capital incorporated in England & Wales.
The address of its registered office is:
United Kingdom
The principal place of business is:
83 Marylebone High Street
London
W1U 4QW
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except as disclosed below certain items are included at fair value.
Going concern
The accounts have been prepared on a going concern basis. The directors have assessed the risks posed by the Covid-19 pandemic and have concluded that there has been little impact on the company’s operational performance. While the company experienced a small decline in monthly income at the start of the Covid-19 outbreak, pre-pandemic income levels have now resumed. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of portfolio management services to customers. Turnover is recognised as the related services are supplied to customers. Turnover is shown net of sales/value added tax, rebates, and discounts.
Knox Capital Company Limited
Notes to the Financial Statements
Year Ended 31 May 2021
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss.
Current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the Company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets are recognised in respect of unused tax losses only to the extent that they are more likely than not to be recovered.
Tangible assets
Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Furniture, Fittings and Equipment |
Straight line over 5 years |
Investments
All investments are held in OEICs and therefore the fair value can be reliably ascertained based on the underlying value of their net assets. Any changes in fair value are recognised in the profit or loss.
Dividends on OEICs are recognised in income when receivable.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Knox Capital Company Limited
Notes to the Financial Statements
Year Ended 31 May 2021
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.
Financial instruments
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
2021 |
2020 |
|
Investment Management Services |
|
|
100% of services were supplied to customers based in the UK.
Operating profit |
Arrived at after charging:
2021 |
2020 |
|
Depreciation expense |
|
|
Other interest receivable and similar income |
2021 |
2020 |
|
Dividend income |
|
|
Knox Capital Company Limited
Notes to the Financial Statements
Year Ended 31 May 2021
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2021 |
2020 |
|
Wages and salaries |
|
|
Social security costs |
|
|
|
|
The average number of persons employed by the company during the year, analysed by category was as follows:
2021 |
2020 |
|
Administration and support |
|
- |
Directors |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2021 |
2020 |
|
Remuneration |
|
|
Auditors' remuneration |
2021 |
2020 |
|
Audit of the financial statements |
|
|
Other fees to auditors |
||
Taxation compliance services |
|
|
All other non-audit services |
|
|
|
|
Knox Capital Company Limited
Notes to the Financial Statements
Year Ended 31 May 2021
Taxation |
Tax charged in the profit and loss account
2021 |
2020 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
- |
14,967 |
10,652 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2020 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2021 |
2020 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Tax decrease from effect of capital allowances and depreciation |
( |
( |
Tax decrease from other short-term timing differences |
( |
- |
Tax decrease from effect of dividends from UK companies |
( |
( |
Adjustment in respect of prior years |
( |
- |
Total tax charge |
|
|
Knox Capital Company Limited
Notes to the Financial Statements
Year Ended 31 May 2021
Deferred tax
Deferred tax assets and liabilities
2021 |
Liability |
Capital allowances in excess of depreciation |
|
2020 |
Liability |
Capital allowances in excess of depreciation |
|
Deferred tax in both the current and prior year has been calculated using the tax rates that are expected to apply in the periods in which timing differences reverse.
Tangible assets |
Furniture, fittings and equipment |
Total |
|
Cost |
||
At 1 June 2020 |
|
|
At 31 May 2021 |
|
|
Depreciation |
||
At 1 June 2020 |
|
|
Charge for the year |
|
|
At 31 May 2021 |
|
|
Carrying amount |
||
At 31 May 2021 |
|
|
At 31 May 2020 |
|
|
Knox Capital Company Limited
Notes to the Financial Statements
Year Ended 31 May 2021
Other financial assets (current and non-current) |
Financial assets at fair value through profit and loss |
Total |
|
Non-current financial assets |
||
Valuation |
||
At 1 June 2020 |
99,660 |
99,660 |
Additions |
158,307 |
158,307 |
Fair value adjustments |
27,075 |
27,075 |
At 31 May 2021 |
285,042 |
285,042 |
Carrying amount |
||
At 31 May 2021 |
|
285,042 |
At 31 May 2020 |
|
99,660 |
Debtors |
Note |
2021 |
2020 |
|
Trade debtors |
|
|
|
Amounts owed by related parties |
- |
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Accrued income |
|
|
|
|
|
Cash and cash equivalents |
2021 |
2020 |
|
Cash at bank |
|
|
Knox Capital Company Limited
Notes to the Financial Statements
Year Ended 31 May 2021
Creditors |
Note |
2021 |
2020 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts due to related parties |
|
- |
|
Social security and other taxes |
|
|
|
Accrued expenses |
|
|
|
Corporation tax |
15,265 |
10,951 |
|
|
|
Deferred tax and other provisions |
Deferred tax |
Total |
|
At 1 June 2020 |
|
|
Decrease in existing provisions |
|
|
At 31 May 2021 |
|
|
Share capital |
Allotted, called up and fully paid shares
2021 |
2020 |
|||
No. |
£ |
No. |
£ |
|
Ordinary Shares of £1 each |
13,000 |
13,000 |
13,000 |
13,000 |
Reserves |
Called up share capital represents the nominal capital paid per ordinary issued share.
Share premium is the premium paid on ordinary shares issued above nominal value.
The profit and loss account includes all current and prior period retained surpluses and losses.
Knox Capital Company Limited
Notes to the Financial Statements
Year Ended 31 May 2021
Related party transactions |
Key management personnel |
There are no key management personnel other than the directors. Remuneration is shown in note 7.
Transactions with directors
The directors are interested in a client of the company, the CCM Knox Global Balanced Fund as it is managed by Jonathan Chenevix-Trench and Kenneth Steele. Investment management fees chargeable to the fund in respect of the year amount to £203,176 (2020 - £184,477). At 31 May 2021 the company had accrued income due from the fund of £21,886 (2020 - £15,257).
|
Balances due from/(to) related parties
Directors |
|
At 1 June 2020 |
|
Repaid |
( |
At 31 May 2021 |
( |
During the year a sum of £2,250 was repaid by Anthony de Normann (2020 - £2,250 advanced to Anthony de Normann), and expenses of £60 were paid on behalf of the company by Kenneth Steele (2020 - expenses of £22 were paid on behalf of Kenneth Steele by the company). The loan outstanding from Kenneth Steele of £38 (2020 - to Kenneth Steele of £22) is interest free and repayable on demand.
Financial instruments |
2021 |
2020 |
|
Financial assets measured at fair value through profit or loss |
|
|
Financial assets that are debt instruments measured at amortised cost |
|
|
Financial liabilities measured at amortised cost |
( |
( |
Control |