Registered number:
For the year ended
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DSAM Partners (London) Ltd
Contents
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DSAM Partners (London) Ltd
Company Information
Page 1
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DSAM Partners (London) Ltd
Strategic report
For the year ended 31 December 2021
The directors present the strategic report of DSAM Partners (London) Ltd (the "Company") for the year ended 31 December 2021. The comparative period presented in these financial statements is for the year ended 31 December 2020.
The results for the year, and the Company's financial position at the end of the year, are shown on pages 9 to 10.
During the year the decision was taken to wind up the DSAM funds, the principal funds managed by the Company. As at the year end, the majority of assets had been returned to Investors. The Company has restructured significantly post the year end and is considering other opportunities including running as a sole family office.
The principal risks and uncertainties affecting the Company relate to the performance of the underlying funds it manages and the impact that poor performance has on the ability to attract and retain investors. The funds advised by the Company are subject to various market, counterparty, operational and regulatory risks that can ultimately have an impact on the Company's business. To the fullest extent possible the Company continues to monitor and improve controls and processes where required to provide the proper infrastructure for managing clients’ assets. Other risks and uncertainties relate to the ability to attract and retain key investment executives. The Company is not exposed to any significant price, credit, liquidity or cash flow risk.
Given the nature of the business, the directors are of the opinion that analysis using KPIs is not necessary for an understanding of the development, performance or position of the business.
The Company’s business activities, together with the factors likely to affect its future development and position, are set out in the ‘Business review and future developments’ and ‘Principal risks and uncertainties’ sections of this Strategic Report. The Company is unlikely to generate significant cash flows from its fund management activities for the immediate future, but is confident it will commence new activities in the next twelve months The directors are confident that the Company has sufficient resources to settle its liabilities in the ordinary course of business and have no reason to believe that material uncertainty exists that may cast significant doubt about the ability of the Company to continue as a going concern. In addition, the directors have considered the impact of Brexit and the Coronavirus and concluded that this is not expected to be significant. Accordingly, the financial statements have been prepared on a going concern basis.
This report was approved by the board
and signed on its behalf by:
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DSAM Partners (London) Ltd
Directors' report
For the year ended 31 December 2021
The directors present their report and the financial statements for the year ended 31 December 2021.
Total comprehensive income for the year amounted to a loss of $2,466,320 (2020: profit of $10,906,514).
The results for the year are set out on pages 9 and 10. No dividends were declared in the year ended 31 December 2021 (year ended 31 December 2020: $nil).
The directors who served during the year and up to the date of this report were:
Following the decision to wind up the DSAM Funds, the Company has implemented a significant restructure. Most of the employees involved in the management of those DSAM funds were made redundant at the 31 December 2021. A core team remains in place to manage the remaining activities.
The auditors, Jeffreys Henry LLP, will be proposed for reappointment in accordance with
section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf by:
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DSAM Partners (London) Ltd
Directors' responsibilities statement
For the year ended 31 December 2021
The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;
∙
make judgments 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 to 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.
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DSAM Partners (London) Ltd
Independent auditors' report to the members of DSAM Partners (London) Ltd
We have audited the financial statements of DSAM Partners (London) Ltd (the 'Company') for the year ended 31 December 2021, which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity
and the related notes, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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.
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DSAM Partners (London) Ltd
Independent auditors' report to the members of DSAM Partners (London) Ltd (continued)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the 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.
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.
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DSAM Partners (London) Ltd
Independent auditors' report to the members of DSAM Partners (London) Ltd (continued)
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 Auditors' 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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations was as follows:
∙
the senior statutory auditor ensured that the engagement team had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙
we identified the laws and regulations applicable to the company through discussions with directors and other management and from our knowledge and experience of the fund management sector;
∙
we focused on specific laws and regulations which we consider have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and in particular the requirements of the company in respect to compliance with FCA requirements;
∙
we assessed the extent of compliance with the laws and regulations through making enquiries of management, inspecting legal costs and respective correspondence.
∙
Identified laws and regulations were communicated within the audit team and the team remained alert to circumstances of non-compliance throughout the audit.
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud may occur and addressed the risk of fraud through management bias and override of controls, by:
∙
making enquiries of management as to whether they considered there was susceptibility to fraud and their knowledge of actual, suspected or alleged fraud;
∙
performing analytical procedures to identify any unusual or unexpected relationships;
∙
testing journal entries to identify unusual transactions;
∙
investigating the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures
which included, but were not limited to:
∙
agreeing financial statement disclosures to underlying supporting documentation;
∙
reading the minutes of meetings of those charged with governance;
∙
inquiring of management as to actual and potential litigation and claims;
∙
reviewing correspondence with HMRC and the company’s legal advisor.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transaction, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and other correspondence, if any.
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DSAM Partners (London) Ltd
Independent auditors' report to the members of DSAM Partners (London) Ltd (continued)
Material misstatements that arise due to fraud can be harder to detect than those that arise from error, as they
may involve deliberate concealment or collusion.
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 Auditors' 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 Auditors' 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.
for and on behalf of Jeffreys Henry LLP
Chartered Accountants and Statutory Auditor Finsgate 5-7 Cranwood Street London EC1V 9EE
Date:
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DSAM Partners (London) Ltd
Statement of comprehensive income
For the year ended 31 December 2021
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DSAM Partners (London) Ltd
Registered number:
09690232
Statement of financial position
As at
The financial statements were approved and authorised for issue by the board and were signed on its behalf by
:
The notes on pages 13 to 25 form part of these financial statements.
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DSAM Partners (London) Ltd
Statement of changes in equity
For the year ended
31 December 2021
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DSAM Partners (London) Ltd
Statement of changes in equity
For the year ended
31 December 2020
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DSAM Partners (London) Ltd
Notes to the financial statements
For the year ended 31 December 2021
DSAM Partners (London) Ltd is a company limited by shares, incorporated and domiciled in England and Wales. The address of its registered office is 1st Floor, 14-15 Conduit Street, London, W1S 2XJ.
2.
Accounting policies
The financial statements have been prepared on the going concern basis under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102 ("FRS 102"), The Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙
the requirements of Section 7 Statement of Cash Flows;
∙
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙
the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of DSAM Capital Partners Ltd as at 31 December 2021 and these financial statements may be obtained from Companies' House.
The company has sufficient liquid assets to continue its operations for a period in excess of twelve months from the date of this report. The directors are therefore confident that the Company has sufficient resources to settle its liabilities in the ordinary course of business and have no reason to believe that material uncertainty exists that may cast significant doubt about the ability of the Company to continue as a going concern. In addition, the directors have considered the impact of Brexit and the Coronavirus and concluded that this is not expected to be significant. Accordingly, the financial statements have been prepared on a going concern basis
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DSAM Partners (London) Ltd
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
Functional and presentation currency
Transactions and balances
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate.
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DSAM Partners (London) Ltd
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
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DSAM Partners (London) Ltd
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.
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DSAM Partners (London) Ltd
Notes to the financial statements
For the year ended 31 December 2021
2.
Accounting policies (continued)
Financial assets
The Company’s financial assets comprise basic financial assets, being trade and other receivables and cash and bank balances. Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Trade and other receivables are measured at transaction price less any impairment. Any impairment loss is recognised in the statement of comprehensive income. The impairment loss is measured as the difference between an asset’s carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date. Financial assets are derecognised when contractual rights to the cash flows from the financial asset expire or are settled, or when substantially all the risks and rewards of ownership have been transferred. Financial liabilities The Company’s financial liabilities comprise basic financial liabilities, being trade and other payables. These are initially recognised at transaction price. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. Offsetting Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an 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. Derivative instruments The Company uses forward foreign currency contracts to reduce exposure to foreign exchange rates. Derivate financial instruments are initially measured at fair value on the date on which a derivative contract is entered into and are subsequently measured at fair value through other comprehensive income. Derivatives are carried as assets when the fair value is positive and as liabilities when the fair value is negative. The fair value of the forward currency contracts is calculated by reference to current forward exchange contracts with similar maturity profiles.
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DSAM Partners (London) Ltd
Notes to the financial statements
For the year ended 31 December 2021
The directors have not been required to use a significant degree of judgment in determining the timing and value of amounts recognised in these financial statements. The directors are not aware of any significant sources of estimation uncertainty in the preparation of these financial statements.
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DSAM Partners (London) Ltd
Notes to the financial statements
For the year ended 31 December 2021
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DSAM Partners (London) Ltd
Notes to the financial statements
For the year ended 31 December 2021
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DSAM Partners (London) Ltd
Notes to the financial statements
For the year ended 31 December 2021
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DSAM Partners (London) Ltd
Notes to the financial statements
For the year ended 31 December 2021
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DSAM Partners (London) Ltd
Notes to the financial statements
For the year ended 31 December 2021
12.
Debtors (continued)
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DSAM Partners (London) Ltd
Notes to the financial statements
For the year ended 31 December 2021
Fair value reserve
This reserve is used to record movements in the fair value of derivative financial instruments.
Profit and loss account
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to $199,111 (2020: $198,753). Contributions totalling $14,303 (2020: $14,975) were payable to the fund at the reporting date and are included within other creditors.
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DSAM Partners (London) Ltd
Notes to the financial statements
For the year ended 31 December 2021
The immediate parent undertaking is DSAM Capital Partners Ltd, a limited company registered in England and Wales. DSAM Capital Partners Ltd prepares consolidated financial statements which are available from its registered office address, 1st Floor, 14-15 Conduit Street, London, W1S 2XJ.
The ultimate controlling party is G. Shahar by virtue of his majority ownership of DSAM Cayman Ltd, the General Partner of DSAM Cayman LP, which is the parent company of DSAM Capital Partners Ltd. On 1 January 2022 the ultimate controlling party changed to J. Diner by virtue of his majority ownership of DSAM Capital Partners Ltd.
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