Registration number:
Agora-Direct Limited
for the Year Ended 31 December 2020
Agora-Direct Limited
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Accountants' Report |
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Statement of Income and Retained Earnings |
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Balance Sheet |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Agora-Direct Limited
Company Information
Directors |
M Nowatzki A S H Din T J Ahmad |
Registered office |
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Bankers |
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Accountants |
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Agora-Direct Limited
Strategic Report for the Year Ended 31 December 2020
The directors present their strategic report for the year ended 31 December 2020.
Principal activity
The principal activity of the company is to offer introducing brokerage services in equity and derivative products to retail clients. The company has been authorised to carry out its business by the Financial Conduct Authority since 2015.
Fair review of the business
We are pleased to report that the turnover and profitability of the business has increased again this year, and that the net assets of the business continue to grow.
The objective of the company was to expand the client base in the UK market much more significantly during 2020. However, 2020 was a year heavily affected by the global pandemic known as Covid-19, and also relevant to the market of our business, the end of the Brexit transition period.
With a UK focus and business being largely transacted by internet and phone the company is well placed to deal with both of these uncertainties. However, the physical restrictions have delayed the growth and development plans for the company due to management being more remote, and the focus of potential clients being elsewhere during this time.
The company continues to have significant expansion plans for the future, which it hopes to develop further as soon as the current restrictions are lifted and uncertainties reduce.
The company's key financial and other performance indicators during the year were as follows:
Unit |
2020 |
2019 |
|
Turnover |
£ |
54,670 |
47,266 |
Profit before tax |
£ |
10,049 |
5,820 |
Net current assets |
£ |
43,369 |
33,320 |
Capital adequacy is monitored monthly. Regulatory Capital requirements have been met throughout the financial year ended 31 December 2020.
Objectives and policies
The Company is an introducing broker introducing retail clients to Interactive Brokers UK Ltd. and receives commissions for its services. All decision-making underlies the principle of the respectable merchant.
Principal risks and uncertainties
It is the responsibility of senior management to consider the risks facing the business and put in place measures to mitigate their impact. We have adopted the FCA model of breaking risk down into three broad sub-headings for risk: business, controls and oversight & governance. We have created a structure to ensure that these are considered and regularly reviewed.
At Agora Direct Limited we will review each quarter the risk approach of the firm to identify new issues and any trends from the management information. Additionally, we have a retained compliance consultant who will assist us to monitor key concerns of the FCA. Key to our work in this area is maintaining the good reputation of the business.
Agora-Direct Limited
Strategic Report for the Year Ended 31 December 2020
Market Risk
The company is in risk of competition.
Credit Risk
Hike in interest rates creating cash flow issues – own business and third parties – also impact on attractiveness of pricing.
Operational Risk
Process not delivering expected outcome. Language and distance under passporting.
Product Risk
Not delivering expected return on our investment.
Regulatory Risk
Complexity and change in regulation. Failure to fulfil AML or other obligations.
Environmental Risk
Legislative or taxation change.
Counterparty Risk
Failure of third party to deliver service. End of relationship with major source of new business.
Prudential Risk
Unexpected call on resources may raise capital adequacy or liquidity concerns.
Reputational Risk
Complaints or litigation having negative impact on profile of the firm.
Approved by the
.........................................
Director
Agora-Direct Limited
Directors' Report for the Year Ended 31 December 2020
The directors present their report and the financial statements for the year ended 31 December 2020.
Statement of directors responsibilities
The directors acknowledge their responsiblilties 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; 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.
Directors of the company
The directors who held office during the year were as follows:
Approved by the
.........................................
Director
Chartered Certified Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Agora-Direct Limited
for the Year Ended 31 December 2020
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Agora-Direct Limited for the year ended 31 December 2020 as set out on pages 6 to 14 from the company's accounting records and from information and explanations you have given us.
As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/gb/en/
discover/public-value/rulebook.html.
This report is made solely to the Board of Directors of Agora-Direct Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of Agora-Direct Limited and state those matters that we have agreed to state to the Board of Directors of Agora-Direct Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2009/october/factshe
et-163-audit-exempt-companies.html. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Agora-Direct Limited and its Board of Directors as a body for our work or for this report.
It is your duty to ensure that Agora-Direct Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of Agora-Direct Limited. You consider that Agora-Direct Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the accounts of Agora-Direct Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.
.................................................................
Millennium Way
Pride Park
Derby
DE24 8HG
Agora-Direct Limited
Statement of Income and Retained Earnings for the Year Ended 31 December 2020
Note |
2020 |
(Restated) |
|
Turnover |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
|
|
|
Interest payable and similar charges |
( |
( |
|
(434) |
(279) |
||
Profit before tax |
|
|
|
Profit for the financial year |
|
|
|
Retained earnings brought forward |
(60,680) |
(66,500) |
|
Retained earnings carried forward |
(50,631) |
(60,680) |
Agora-Direct Limited
(Registration number: 09349168)
Balance Sheet as at 31 December 2020
Note |
2020 |
2019 |
|
Current assets |
|||
Debtors |
|
|
|
Other financial assets |
14,991 |
4,157 |
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
( |
( |
|
Total equity |
|
|
For the financial year ending 31 December 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
|
• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These accounts have not been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
Approved and authorised by the
.........................................
Director
Agora-Direct Limited
Statement of Cash Flows for the Year Ended 31 December 2020
Note |
2020 |
2019 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Financial instrument net gains (losses) through profit and loss |
|
( |
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Finance costs |
|
|
|
|
|
||
Working capital adjustments |
|||
Decrease in trade debtors |
|
|
|
(Decrease)/increase in other financial assets |
( |
|
|
Increase in trade creditors |
|
|
|
Net cash flow from operating activities |
|
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
29,573 |
28,944 |
Agora-Direct Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
General information |
The company is a private company limited by share capital, incorporated in England.
The address of the registered office is given in the company information on page 1 of the financial statements.
The principal place of business is Derby.
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 Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention.
The financial statements are presented in Sterling (£) and rounded to the nearest £1.
Going concern
The global pandemic known as Covid-19 and the end of the transition period of Brexit have continued to cause uncertainty throughout the UK and global economy. The Directors have assessed a range of potential impacts on the company, such as reduced turnover or reduced value of assets held by the business. The going concern of the business is dependent on achieving minimum income projections, as well as on the continued financial support of the shareholders.
Based on the information available at the date of approving the accounts, and considering a reasonable range of assumptions the business can continue as a going concern and the accounts have been prepared on this basis.
Revenue recognition
Turnover comprises the commission received by the company, and this is recognised, net of rebates, claw-backs and discounts, when the transaction is completed and the broker has recorded the commission as due and payable to the company.
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss.
Agora-Direct Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Recognition and measurement
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
2020 |
2019 |
|
Commissions receivable (non-regulated income) |
|
|
Commissions receivable (regulated income) |
- |
|
|
|
Operating profit |
Arrived at after charging/(crediting)
2020 |
2019 |
|
Foreign exchange losses/(gains) |
|
( |
Interest payable and similar expenses |
2020 |
2019 |
|
Other finance costs |
|
|
Agora-Direct Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2020 |
2019 |
|
Wages and salaries |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
- |
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2020 |
2019 |
|
Administration department |
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2020 |
2019 |
|
Remuneration |
|
|
During the year the number of directors who were receiving benefits and share incentives was as follows:
2020 |
2019 |
|
Accruing benefits under money purchase pension scheme |
|
|
The directors are considered to be the key management of the buisness.
Agora-Direct Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Taxation |
Tax charged/(credited) in the income statement
2020 |
2019 |
|
Current taxation |
||
UK corporation tax |
- |
- |
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2019 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2020 |
2019 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
( |
( |
Total tax charge/(credit) |
- |
- |
Other financial assets (current and non-current) |
Financial assets |
Total |
|
Current financial assets |
||
Cost or valuation |
||
At 1 January 2020 |
4,157 |
4,157 |
Movements in the year |
10,834 |
10,834 |
At 31 December 2020 |
14,991 |
14,991 |
Carrying amount |
||
At 31 December 2020 |
|
14,991 |
At 31 December 2019 |
|
4,157 |
Agora-Direct Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Debtors |
2020 |
2019 |
|
Other debtors |
- |
|
Prepayments |
|
|
|
|
Cash and cash equivalents |
2020 |
2019 |
|
Cash at bank |
|
|
Creditors |
2020 |
2019 |
|
Due within one year |
||
Trade creditors |
|
|
Social security and other taxes |
|
|
Other creditors |
|
|
Accrued expenses |
|
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Agora-Direct Limited
Notes to the Financial Statements for the Year Ended 31 December 2020
Share capital |
Allotted, called up and fully paid shares
2020 |
2019 |
|||
No. |
£ |
No. |
£ |
|
|
|
94,000 |
|
94,000 |
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Reserves |
Profit and loss account
The profit and loss account represents cumulative profits and losses net of dividends and other adjustments.
Analysis of changes in net debt |
At 1 January 2020 |
Financing cash flows |
At 31 December 2020 |
|
Cash |
28,944 |
629 |
29,573 |
Related party transactions |
Transactions with directors |
2020 |
At 1 January 2020 |
Advances to directors |
Repayments by director |
At 31 December 2020 |
Interest free loans repayable on demand |
(56) |
( |
|
|
2019 |
At 1 January 2019 |
Advances to directors |
Repayments by director |
At 31 December 2019 |
Interest free loans repayable on demand |
(228) |
( |
|
( |
18 Prior year adjustment
There has been a reanalysis of the 2019 costs which has resulted in some costs moving from administrative expenses to interest payable and similar charges. This is just a reallocation and does not change the profit in the year.