Company Registration No. 13168186 (England and Wales)
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
COMPANY INFORMATION
Director
C D Payne
Company number
13168186
Registered office
4-7 Great Pulteney Street
London
W1F 9NA
United Kingdom
Auditor
HW Fisher LLP
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The director presents the strategic report for the year ended 31 December 2023.
Principal activities
The principal activity of the company remains that of the provision of investment, administrative and strategic advisory services.
Review of Business
The results of the year are set out on page 8. The profit for the year before tax was £101,193 (2022: £729,157) and the net asset position was £3,290,692 (2022: £3,017,123).
From the 1 September 2023, the company transferred its non-regulated service offerings, including staff and related assets, to a separate business to drive efficiencies and improve the cost base, profitability and margins going forwards.
Principal Risks and Uncertainties
The main financial risks related to the services that the Company provides are defined as follows:
Liquidity Risk - the risk that the Company is unable to make a payment, particularly to suppliers, when required. This is reduced by adequate funding and basic liquidity requirements; and
Operational Risk – the risk of loss arising from inadequate or failed internal processes, personnel or systems. This is reduced through implementation of a control framework.
Key Performance Indicators
Management assess the performance of the business based on the below Key Performance Indicators (“KPIs”).
2023
2022
% Change
Turnover
14,146,453
11,079,897
27.7%
Profit Before Tax
101,193
729,157
-86.1%
Gross Margin %
0.7%
6.6%
The business has grown significantly in the year with an increase in average headcount to 40 (2022: 27).
Future Developments
The director confirms that the company will continue to provide investment, administrative and strategic advisory services and the Company’s activities are not expected to change in the foreseeable future.
Section 172 Statement
The director has acted in a way that they consider, in good faith, to be most likely to promote the success of the Company for the benefit of its members as a whole and in doing so had regard, amongst other matters, to:
(a) the likely consequences of any decision in the long term;
(b) the interests of the company’s employees;
(c) the need to foster the company’s business relationships with suppliers, customers and others;
(d) the impact of the company’s operations on the community and the environment;
(e) the desirability of the company maintaining a reputation for high standards of business conduct; and
(f) the need to act fairly between members of the company.
The Company’s principle activities are set out above and when making business decisions the board carefully considers the impact on the success of the Company, its long term (financial and non-financial) impact.
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Long term success is predicated on the collective talent, skills and values of the Company’s workforce, so the board considers and discusses information from across the organisation to help it understand the impact of its operations on the interests and views of the employees and as a result has implemented a hybrid flexible working policy.
The director understands that supplier relationships are key to the effective running of the business and as such the firm endeavours to pay all suppliers within the stated payment terms. This is managed as part of the liquidity risk mitigation controls.
As the Company is committed to minimising its impact on the environment and promoting sustainable practices within its business operations. The company recognise that climate change is one of the greatest challenges facing society today, and as a responsible business, is taking the following steps to reduce its carbon footprint and conserve natural resources.
In the past year, the company moved to a more energy efficient office which have put in place initiatives to reduce office energy consumption
The company has partnered with organisation to support the communities in which we work, notably donating unused office items to a safe house for women charity connected to Barnet Council in North London.
To ensure that the Company is performing at the highest standards the firm is regulated by the FCA and adhered to all the relevant regulatory and capital requirements in the period.
The director recognises the necessity to act fairly across the group entities to ensure the success of the group as a whole, and not just the Company. This is managed through the use of Service agreements between companies detailing the scope of services and pricing structure.
C D Payne
Director
11 April 2024
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The director presents his annual report and financial statements for the year ended 31 December 2023.
Results and Dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
G K Humphreys
(Resigned 9 February 2024)
C D Payne
Auditor
In accordance with the company's articles, a resolution proposing that HW Fisher LLP be reappointed as auditor of the company will be put at a General Meeting.
Strategic Report
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. It has done so in respect of principal risks including reference to financial risks and future developments.
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.
On behalf of the board
C D Payne
Director
11 April 2024
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:
select suitable accounting policies and then 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;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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. He is 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.
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CLAYMORE CAPITAL MANAGEMENT LIMITED
- 5 -
Opinion
We have audited the financial statements of Claymore Capital Management Limited (the 'company') for the year ended 31 December 2023 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 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 December 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CLAYMORE CAPITAL MANAGEMENT LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the director's 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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.
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.
As part of our planning process:
We enquired of management the systems and controls the company has in place, the areas of the financial statements that are most susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.
We obtained an understanding of the legal and regulatory frameworks applicable to the company. We determined that the following were most relevant: FRS 102, Companies Act 2006 and compliance with the regulations of the Financial Conduct Authority.
We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.
Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CLAYMORE CAPITAL MANAGEMENT LIMITED
- 7 -
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
Testing revenue lines, in particular cut-off, for evidence of management bias.
Viewing and obtaining third-party confirmation of material bank and other loan balances.
Documenting and verifying all significant related party balances and transactions.
Reviewing documentation such as the company board minutes for discussions regarding internal matters and strategy.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with management.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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 him 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.
Simon Mott-Cowan (Senior Statutory Auditor)
For and on behalf of HW Fisher LLP
Chartered Accountants
Statutory Auditor
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
18 April 2024
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
14,146,453
11,079,897
Administrative expenses
(14,018,897)
(10,321,762)
Other operating income
7,307
13,627
Operating profit
4
134,863
771,762
Interest receivable and similar income
8
17,592
2,316
Interest payable and similar expenses
9
(51,262)
(44,921)
Profit before taxation
101,193
729,157
Tax on profit
10
172,376
(148,981)
Profit for the financial year
273,569
580,176
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
13,705
15,543
Tangible assets
12
46,553
274,487
60,258
290,030
Current assets
Debtors
13
4,066,837
9,526,330
Cash at bank and in hand
4,001,326
1,789,319
8,068,163
11,315,649
Creditors: amounts falling due within one year
14
(4,837,729)
(8,528,641)
Net current assets
3,230,434
2,787,008
Total assets less current liabilities
3,290,692
3,077,038
Provisions for liabilities
Deferred tax liability
16
59,915
-
(59,915)
Net assets
3,290,692
3,017,123
Capital and reserves
Called up share capital
18
2,000,000
2,000,000
Profit and loss reserves
1,290,692
1,017,123
Total equity
3,290,692
3,017,123
The financial statements were approved by the board of directors and authorised for issue on 11 April 2024 and are signed on its behalf by:
C D Payne
Director
Company Registration No. 13168186
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
2,000,000
436,947
2,436,947
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
580,176
580,176
Balance at 31 December 2022
2,000,000
1,017,123
3,017,123
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
273,569
273,569
Balance at 31 December 2023
2,000,000
1,290,692
3,290,692
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
22
2,006,446
(1,424,781)
Interest paid
(1,262)
(1,633)
Income taxes refunded/(paid)
70,211
(83,509)
Net cash inflow/(outflow) from operating activities
2,075,395
(1,509,923)
Investing activities
Purchase of intangible assets
(955,933)
Proceeds on disposal of intangibles
1,488,822
Purchase of tangible fixed assets
(100,667)
(210,895)
Proceeds on disposal of tangible fixed assets
219,687
Interest received
17,592
2,316
Net cash generated from investing activities
136,612
324,310
Financing activities
Proceeds from borrowings
2,500,000
Net cash (used in)/generated from financing activities
2,500,000
Net increase in cash and cash equivalents
2,212,007
1,314,387
Cash and cash equivalents at beginning of year
1,789,319
474,932
Cash and cash equivalents at end of year
4,001,326
1,789,319
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information
Claymore Capital Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4-7 Great Pulteney Street, London, United Kingdom, W1F 9NA.
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 amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A connected beneficiary has offered financial support to the company should it be required. Thereforetrue, at the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the director continues to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue from Management Service Agreements for the provision of professional services is invoiced at cost plus mark up and invoiced quarterly in advance. Revenue is recognised in the period in which the service is completed.
Revenue from Investment Management Agreement for the provision of investment management services is invoiced at a pre-agreed rate based on the average month end NAV of the relevant Portfolio and invoiced quarterly in arrears. Revenue is recognised in the period in which the service is completed.
1.4
Intangible fixed assets
Intangible assets acquired are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost of the assets less their residual values over their useful lives on the following bases:
Development costs
Straight line over 10 years
Intangible assets which are not yet in use are not amortised at year end.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Plant and equipment
Straight line over 5 years
IT hardware - Monitors
Straight line over 5 years
IT hardware - Computer & phones
Straight line over 3 years
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.
During the year, the estimated useful life of IT hardware specific to computers and phones was changed from 5 years to 3 years, to better reflect the time over which the assets are expected to be in use.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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).
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.8
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.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
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.
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
In the opinion of the Directors, there are no critical judgements or estimation used to derive figures presented within these financial statements.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Provision of services
14,146,453
11,079,897
2023
2022
£
£
Other significant revenue
Interest income
17,592
2,316
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
14,146,453
11,079,897
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Exchange differences
16,305
17,944
Depreciation of owned tangible fixed assets
107,440
49,206
Loss on disposal of tangible fixed assets
1,474
-
Amortisation of intangible assets
1,838
1,830
Operating lease charges
1,144,890
1,084,602
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
43,250
31,750
For other services
All other non-audit services
15,820
5,000
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
40
27
Their aggregate remuneration including variable pay of £2,595,999 (2022: £1,878,988), of which none was deferred, comprised of:
2023
2022
£
£
Wages and salaries
7,753,791
5,537,789
Social security costs
1,016,442
849,861
Pension costs
366,640
277,652
9,136,873
6,665,302
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
1,274,230
1,660,000
Company pension contributions to defined contribution schemes
3,565
20,700
1,277,795
1,680,700
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Director's remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
950,771
1,250,000
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
17,592
2,316
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
1,262
1,633
Other finance costs:
Other interest
50,000
43,288
51,262
44,921
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
(116,322)
117,266
Deferred tax
Origination and reversal of timing differences
(56,054)
31,715
Total tax (credit)/charge
(172,376)
148,981
From 01 April 2023, the corporation tax rate increased to 25%.
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
10
Taxation
(Continued)
- 18 -
The actual (credit)/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:
2023
2022
£
£
Profit before taxation
101,193
729,157
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
23,801
138,540
Tax effect of expenses that are not deductible in determining taxable profit
6,586
17,817
Adjustments in respect of prior years
(186,163)
Effect of change in corporation tax rate
7,768
7,612
Other permanent differences
(1,264)
Fixed asset differences (super deduction)
(499)
(14,988)
Movement in deferred tax not recognised
(22,605)
Taxation (credit)/charge for the year
(172,376)
148,981
11
Intangible fixed assets
Development costs
£
Cost
At 1 January 2023 and 31 December 2023
18,301
Amortisation and impairment
At 1 January 2023
2,758
Amortisation charged for the year
1,838
At 31 December 2023
4,596
Carrying amount
At 31 December 2023
13,705
At 31 December 2022
15,543
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
12
Tangible fixed assets
Plant and equipment
IT Hardware
Total
£
£
£
Cost
At 1 January 2023
11,482
326,307
337,789
Additions
565
100,102
100,667
Disposals
(12,047)
(311,613)
(323,660)
At 31 December 2023
114,796
114,796
Depreciation and impairment
At 1 January 2023
3,437
59,865
63,302
Depreciation charged in the year
1,504
105,936
107,440
Eliminated in respect of disposals
(4,941)
(97,558)
(102,499)
At 31 December 2023
68,243
68,243
Carrying amount
At 31 December 2023
46,553
46,553
At 31 December 2022
8,045
266,442
274,487
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,147,298
7,962,785
Other debtors
1,444,958
1,249,041
Prepayments and accrued income
1,455,837
314,504
4,048,093
9,526,330
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 16)
18,744
Total debtors
4,066,837
9,526,330
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
15
2,500,000
2,500,000
Trade creditors
527,575
444,649
Corporation tax
93,760
117,266
Other taxation and social security
599,431
1,714,247
Other creditors
416,579
80,121
Accruals and deferred income
700,384
3,672,358
4,837,729
8,528,641
15
Loans and overdrafts
2023
2022
£
£
Other loans
2,500,000
2,500,000
Payable within one year
2,500,000
2,500,000
The entity has drawn down £2,500,000 from a loan facility made available. The drawdown is repayable on demand and has an applicable rate of interest of 2%.
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Timing difference
-
59,915
18,744
-
2023
Movements in the year:
£
Liability at 1 January 2023
59,915
Credit to profit or loss
(78,659)
Asset at 31 December 2023
(18,744)
The deferred tax liability set out above, charged at 25%, relates to accelerated capital allowances and will reverse over the intended life of the asset.
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
366,640
277,652
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.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,000,000
2,000,000
2,000,000
2,000,000
19
Operating lease commitments
Lessee
The lease detailed within this note commenced from 1 August 2022 for the initial period of 24 months with a break clause in July 2023. The lease had been transferred to Sentiem Services Ltd on 1 October 2023 as part of the asset transfer agreement entered on 1 September 2023.
At the reporting end date the company had outstanding commitments for future minimum lease payments under operating leases, which fall due as follows:
2023
2022
£
£
Within one year
875,000
20
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2022
£
£
Aggregate compensation
1,875,433
2,986,418
Other information
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Related party transactions
(Continued)
- 22 -
The company is taking advantage of the FRS 102 33.1A exemption in relation to disclosing related party transactions with fellow subsidiaries which are also part of Claymore Investment Trust (“CIT”).
During the year, the company charged Deep R&D Ltd £641,837 (2022: £755,458) for professional services. In addition, charged £812,255 (2022: £6,087,263) for disbursements. As at the year end, the company owes Deep R&D Ltd £153,615 (2022: Receivable £554,606).
The company was charged £1,473,352 (2022: £nil) for the transfer of net liabilities in the year and £292,082 (2022: £nil) for professional services. As at the year end, Sentiem Services Ltd owes the company £637,821 (2022: £nil).
The company charged Tethys Delta Limited £nil (2022: £94,220) for disbursements. As at the year end, Tethys Delta Limited owes the company £nil (2022: £94,263).
The company charged Deep Training Services Limited £nil (2022: £97,927) for disbursements. As at the year end, Deep Training Services Limited owes the company £nil (2022: £93,252).
21
Ultimate controlling party
The parent entity is CIT and as at 31 December 2023, Dr Frank Zindel was the person with significant control.
The parent entity does not prepare accounts or consolidated accounts that are available in the public domain.
22
Cash generated from/(absorbed by) operations
2023
2022
£
£
Profit for the year after tax
273,569
580,176
Adjustments for:
Taxation (credited)/charged
(172,376)
148,981
Finance costs
51,262
44,921
Investment income
(17,592)
(2,316)
Loss on disposal of tangible fixed assets
1,474
-
Amortisation and impairment of intangible assets
1,838
1,830
Depreciation and impairment of tangible fixed assets
107,440
49,206
Movements in working capital:
Decrease/(increase) in debtors
5,478,237
(5,674,912)
(Decrease)/increase in creditors
(3,717,406)
3,427,333
Cash generated from/(absorbed by) operations
2,006,446
(1,424,781)
CLAYMORE CAPITAL MANAGEMENT LIMITED
(FORMERLY CLAYMORE WEALTH MANAGEMENT LIMITED)
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
23
Analysis of changes in net funds/(debt)
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,789,319
2,212,007
4,001,326
Borrowings excluding overdrafts
(2,500,000)
-
(2,500,000)
(710,681)
2,212,007
1,501,326
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