Company registration number 02456103 (England and Wales)
FINANCIAL MODELS CORPORATION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
FINANCIAL MODELS CORPORATION LIMITED
COMPANY INFORMATION
Directors
P Pedonti
C Bremner
Company number
02456103
Registered office
The Rex Building
62 Queen Street
London
England
EC4R 1EB
Auditor
Azets Audit Services
Suites B & D
Burnham Yard
Beaconsfield
Bucks
United Kingdom
HP9 2JH
FINANCIAL MODELS CORPORATION LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 18
FINANCIAL MODELS CORPORATION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 1 -
The directors present the strategic report for the year ended 31 December 2022.
Fair review of the business
The Statement of Comprehensive Income shows a profit before taxation of £140.7m (2021: £59.0m) for the year, and income from shares in group undertakings (dividend received) of £24.3m (2021: £43.8m). The Balance Sheet shows the Company has a net current asset position of £676.9m at 31 December 2022 (2021: net current liability position of £43.2m).
Principal risks and uncertainties
The Company’s principal assets are its investments in subsidiaries. The principal risks and uncertainties facing the subsidiaries are outlined below.
The majority of the Company’s receivables or payables are internal to the group. The Company does not have material cash balance or bank borrowings. As a result, it is considered that the Company is not exposed to any significant financial risk apart from those risks faced by its subsidiary companies.
Key performance indicators
Given the straightforward nature of the business as a holding Company, the Company’s directors are of the opinion that an analysis using KPls is not necessary for an understanding of the development, performance or position of the business.
P Pedonti
Director
27 September 2023
FINANCIAL MODELS CORPORATION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
The directors present their annual report and financial statements for the year ended 31 December 2022.
Principal activities
The company’s principal activity is as a holding company for the investments in SS&C Financial Services Limited, SS&C Depositary Services Limited, SS&C Technologies Limited, SS&C Solutions Limited, SS&C DST Holdings Limited, Bolt Bidco Limited, SS&C Wealth & Insurance Ireland Limited and Hubwise Holdings Limited.
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
P Pedonti
C Bremner
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Future developments
No changes are anticipated in the operation of the company.
Auditor
The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
FINANCIAL MODELS CORPORATION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 3 -
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
P Pedonti
Director
27 September 2023
FINANCIAL MODELS CORPORATION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FINANCIAL MODELS CORPORATION LIMITED
- 4 -
Opinion
We have audited the financial statements of Financial Models Corporation Limited (the 'company') for the year ended 31 December 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 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 December 2022 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' 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.
FINANCIAL MODELS CORPORATION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FINANCIAL MODELS CORPORATION LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which 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 directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities 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.
FINANCIAL MODELS CORPORATION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FINANCIAL MODELS CORPORATION LIMITED
- 6 -
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
David Cary LLB FCA (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
28 September 2023
Chartered Accountants
Statutory Auditor
Suites B & D
Burnham Yard
Beaconsfield
Bucks
United Kingdom
HP9 2JH
FINANCIAL MODELS CORPORATION LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
2022
2021
Notes
£'000
£'000
Administrative expenses
78,356
(818)
Interest receivable and similar income
6
141,229
78,044
Interest payable and similar expenses
7
(78,838)
(45,592)
Gain/(loss) on disposal of investments
8
27,322
Profit before taxation
140,747
58,956
Tax on profit
9
(25,318)
6,768
Profit for the financial year
115,429
65,724
The profit and loss account has been prepared on the basis that all operations are continuing operations.
FINANCIAL MODELS CORPORATION LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 8 -
2022
2021
Notes
£'000
£'000
£'000
£'000
Fixed assets
Investments
10
1,199,377
1,061,827
Current assets
Debtors
12
1,467,089
157,794
Creditors: amounts falling due within one year
13
(790,191)
(201,040)
Net current assets/(liabilities)
676,898
(43,246)
Total assets less current liabilities
1,876,275
1,018,581
Creditors: amounts falling due after more than one year
14
(852,797)
(833,184)
Net assets
1,023,478
185,397
Capital and reserves
Called up share capital
15
93,311
93,311
Share premium account
722,652
Profit and loss reserves
207,515
92,086
Total equity
1,023,478
185,397
The financial statements were approved by the board of directors and authorised for issue on 27 September 2023 and are signed on its behalf by:
P Pedonti
Director
Company Registration No. 02456103
FINANCIAL MODELS CORPORATION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£'000
£'000
£'000
£'000
Balance at 1 January 2021
93,311
26,362
119,673
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
-
65,724
65,724
Balance at 31 December 2021
93,311
92,086
185,397
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
115,429
115,429
Issue of share capital
15
722,652
-
722,652
Balance at 31 December 2022
93,311
722,652
207,515
1,023,478
FINANCIAL MODELS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 10 -
1
Accounting policies
Company information
Financial Models Corporation Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Rex Building, 62 Queen Street, London, England, EC4R 1EB.
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 £'000.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of SS&C Technologies Holdings Inc. These consolidated financial statements are publicly available from its registered office.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
The company has been provided with a letter of financial support from its parent stating that they will provide funding to allow it to pay its liabilities as they fall due for a period of no less than 12 months from the date of approval of financial statements.
1.3
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
FINANCIAL MODELS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 11 -
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.4
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
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.
FINANCIAL MODELS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 12 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.6
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.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
FINANCIAL MODELS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 13 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
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.
1.9
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
FINANCIAL MODELS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
2
Judgements and key sources of estimation uncertainty
(Continued)
- 14 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Impairment of investments
The company makes an estimate of the recoverable value of its investments and will impair the carrying value when necessary. When assessing impairment of investments, management considers factors including the current profitability, strength of the balance sheet, historical experience and local economic conditions.
3
Revenue
2022
2021
£'000
£'000
Interest income
116,929
34,241
Dividends received
24,300
43,803
4
Operating profit/(loss)
2022
2021
Operating profit/(loss) for the year is stated after (crediting):
£'000
£'000
Exchange gains
(78,682)
(1,248)
Fees payable to the company's auditor for the audit of the company's financial statements
Audit fees are borne by a group company.
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
6
Interest receivable and similar income
2022
2021
£'000
£'000
Interest income
Interest receivable from group companies
116,929
34,241
Income from fixed asset investments
Income from shares in group undertakings
24,300
43,803
Total income
141,229
78,044
FINANCIAL MODELS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 15 -
7
Interest payable and similar expenses
2022
2021
£'000
£'000
Interest payable to group undertakings
78,838
45,592
8
Other gains and losses
2022
2021
£'000
£'000
Gain/(loss) on disposal of investments
-
27,322
9
Taxation
2022
2021
£'000
£'000
Current tax
UK corporation tax on profits for the current period
25,318
(6,768)
The actual charge/(credit) 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:
2022
2021
£'000
£'000
Profit before taxation
140,747
58,956
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
26,742
11,202
Tax effect of expenses that are not deductible in determining taxable profit
11,917
1,503
Tax effect of income not taxable in determining taxable profit
(14,021)
(19,730)
Under/(over) provided in prior years
680
257
Taxation charge/(credit) for the year
25,318
(6,768)
A deferred tax asset on unrelieved interest restrictions of £25.5 million (2021: £9.0 million) has not been recognised due to the uncertainty in its recoverability in future periods.
The Chancellor of the Exchequer announced on 11 March 2020 that the UK corporation tax rate will remain at 19% for the period 1 April 2020 to 31 March 2021 and 1 April 2021 to 31 March 2022. These changes were part of Finance Act 2020, which was enacted on 22 July 2020. The effect of the tax change has been reflected in the deferred tax balances.
The Chancellor further announced on 3 March 2021 that the UK corporation tax rate will increase to 25% from April 2023. These changes were enacted in Finance Act 2021 on 10 June 2021. The effect of this rate change has been reflected in the deferred tax balances.
FINANCIAL MODELS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 16 -
10
Fixed asset investments
2022
2021
Notes
£'000
£'000
Investments in subsidiaries
11
455,514
396,540
Preference shares investment
743,863
665,287
1,199,377
1,061,827
Movements in fixed asset investments
Shares in subsidiaries
Preference shares investment
Total
£'000
£'000
£'000
Cost or valuation
At 1 January 2022
396,540
665,287
1,061,827
Additions
58,974
-
58,974
Valuation changes
-
78,576
78,576
At 31 December 2022
455,514
743,863
1,199,377
Carrying amount
At 31 December 2022
455,514
743,863
1,199,377
At 31 December 2021
396,540
665,287
1,061,827
During the year, the company acquired the entire issued share capital of Hubwise Holdings Limited and is now the immediate parent company of that company and its group.
FINANCIAL MODELS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 17 -
11
Subsidiaries
Details of the company's subsidiaries at 31 December 2022 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
SS&C Depositary Services Limited
UK
Ordinary
100.00
SS&C Financial Services Limited
UK
Ordinary
100.00
SS&C Technologies Limited
UK
Ordinary
100.00
SS&C Solutions Limited
UK
Ordinary
100.00
SS&C DST Holdings Limited
UK
Ordinary
100.00
SS&C Wealth & Insurance Ireland Limited
UK
Ordinary
100.00
Bolt Bidco Limited
UK
Ordinary
100.00
Hubwise Holdings Limited
UK
Ordinary
100.00
All subsidiaries other than Hubwise Holdings Limited have the same registration address as the Company - The Rex Building, 62 Queen Street, London, England, EC4R 1EB.
For Hubwise Holdings Limited solely, the registration address is Waverley Court, Wiltell Road, Lichfield, Staffordshire, England, WS14 9ET.
12
Debtors
2022
2021
Amounts falling due within one year:
£'000
£'000
Amounts owed by group undertakings
1,467,089
157,794
Amounts owed by the group and parent undertakings of £206,100,000 (2021: £157,794,000) are unsecured, non-interest bearing and have no fixed date of repayment.
Amounts owed by the group and parent undertakings of £1,260,989,000 (2021: £nil) are unsecured, bear average interest of 7.25% and are repayable on demand.
13
Creditors: amounts falling due within one year
2022
2021
£'000
£'000
Amounts owed to group undertakings
790,125
200,974
Accruals and deferred income
66
66
790,191
201,040
Amounts owed to the group and parent undertakings of £383,813,000 (2021: £200,974,000) are unsecured, non-interest bearing and have no fixed date of repayment.
Amounts owed to the group and parent undertakings of £406,312,000 (2021: £nil) are unsecured, bear average interest of 7.25% and are repayable on demand.
FINANCIAL MODELS CORPORATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 18 -
14
Creditors: amounts falling due after more than one year
2022
2021
£'000
£'000
Amounts owed to group undertakings
852,797
833,184
Amounts owed to the group and parent undertakings are unsecured, bear average interest of 5.29% and are repayable in more than 1 year.
15
Share capital
2022
2021
£'000
£'000
Ordinary share capital
Issued and fully paid
93,310,620 (2021: 93,310,619) Ordinary shares of £1 each
93,311
93,311
On 22 March 2022, the company issued 1 Ordinary share of £1 nominal value at a premium of £722,652,305 ($954,045,586).
16
Events after the reporting date
On 24 August 2023, the process to dissolve Bolt Bidco Limited, a subsidiary in the UK, began. As a result, the loan owed by Bolt Bidco was cancelled and an investment in Blue Prism Group Ltd, which was previously owned by Bolt Bidco Limited, was created.
On 7 September 2023, the Company increased its share capital by £1 and its share premium by £26,459,268 following an increased investment from the parent company. These funds were then passed to SS&C Solutions Limited, a subsidiary in the UK, and then onto SS&C Solutions Pty Limited, a subsidiary of SS&C Solutions Limited based in Australia, to fund an acquisition.
17
Ultimate controlling party
The immediate parent undertaking is SS&C Technologies Holdings Europe S.A.R.L. The ultimate parent undertaking and controlling party is SS&C Technologies Holdings, Inc., a company incorporated in United States of America. SS&C Technologies Holdings, Inc. is the only smallest and largest group to consolidate the financial statements at 31 December 2022. The consolidated financial statements of SS&C Technologies Holdings, Inc. can be obtained from its registered office.
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