Company Registration No. 06110770 (England and Wales)
INVESTMENT FUND SERVICES LIMITED
ANNUAL REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
INVESTMENT FUND SERVICES LIMITED
COMPANY INFORMATION
Directors
Andrew Staley
Nicholas F J Cooling
Allan Hamer
Wayne Green
Helen Redmond
Dom Clarke
Helen Derbyshire
Guy Sears
Richard Goodall
(Appointed 7 December 2018)
David Kiddie
(Appointed 14 December 2018)
Sarah Peaston
(Appointed 1 October 2019)
Secretary
Chris Young
Company number
06110770
Registered office
Marlborough House
59 Chorley New Road
Bolton
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
INVESTMENT FUND SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 5
Profit and loss account
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 17
INVESTMENT FUND SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 1 -
The directors present the strategic report for the year ended 30 September 2019.
Fair review of the business
The company continues to provide independent ACD services. Assets under management, the key driver of revenue, has decreased during the year to 30 September 2019 by 15.8% (from £4,593 million to £3,869 million), however, this was due to the transfer out of £1.6 billion of assets shortly before the year end which has had little impact on these accounts. There has been some recovery in assets under management post year end due predominantly to growth of new funds, with IFSL having on-boarded 4 new clients in the financial year and 2 more due to on-board in 2019/20.
Annual management charge revenue for the year was £33.1 million (2018: £31.4 million), an increase of 5.4% from the previous year, which was predominantly due to the launch of 12 new funds and strong sales of funds already managed by the company.
Expenses have increased by 8.1%, mainly due to the increase in expenses such as external advisory and investment management fees which are directly impacted by the increase in average assets under management over the year.
The Company posted profit before tax of £863k (2018: £729k).
The largest items on the balance sheet are amounts due from and to investors for deals each totalling around £37m (2018: £19m). These arise from transactions in the units/shares in the funds under management during the normal settlement cycle and were settled within a few days of the year end.
At the year end, the company had net assets of £3.94m (2018: £3.24m). Profits generated during the year have not been distributed which left the company holding qualifying assets of over 2x its capital adequacy requirement as at 30 September 2019.
The Directors of the company are aware of the trend in merger and acquisition activity within, and new entrants to, the industry and regulatory changes also pose a challenge in the immediate future with likely impacts on distribution and margins. They are also aware of the FCA review of the independent ACD market following recent high-profile coverage of the funds sector. At the time of writing IFSL’s involvement in the review has not been requested by the FCA. However, we remain confident in, but not complacent about, our high standards of governance and operation and work closely with our industry trade body and other stakeholders to stay abreast of developments and best practice.
The Directors are satisfied with the results and financial position for the year under review. The company remains profitable unlike a number of its competitors and continues to differentiate on quality of service including its highly experienced and collaborative senior leadership and relationship management teams. The Directors are also pleased to be able to offer a wider, international service offering following the establishment of an Irish domiciled Super ManCo as a sister company to IFSL. This complements the independent ACD service of IFSL for those firms wishing to expand overseas or secure a Brexit contingency.
The Company’s activities are not expected to change in the foreseeable future, with the focus being on continuous client asset growth and new business to generate targeted scale. The Directors are confident that the Company possesses staff with the appropriate talents to meet its objectives and overcome the aforementioned challenges.
In addition to the key financial performance indicators, referred to above, the company is aware of its environmental responsibilities and endeavours to minimise the company’s impact on the environment by recycling and reducing energy consumption wherever possible. The company would also consider that employee relations are a factor which need to be carefully monitored. The company considers that it has an appropriate policy both as to remuneration and welfare of its employees.
Dom Clarke
Director
21 January 2020
INVESTMENT FUND SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 2 -
The directors present their annual report and financial statements for the year ended 30 September 2019.
Principal activities
The principal activity of the Company is to act as the authorised corporate director (“ACD”) for OEICs and as an authorised fund manager for unit trusts. It hosts collective investment schemes for regulated firms. The Company is authorised by the Financial Conduct Authority to act as both an Undertaking for Collective Investment in Transferable Securities (“UCITS”) firm as well as an Alternative Investment Fund Manager (“AIFM”).
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Andrew Staley
Nicholas F J Cooling
Allan Hamer
Wayne Green
Helen Redmond
Dom Clarke
Helen Derbyshire
Guy Sears
Richard Goodall
(Appointed 7 December 2018)
David Kiddie
(Appointed 14 December 2018)
Sarah Peaston
(Appointed 1 October 2019)
Results and dividends
The results for the year are set out on page 6.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Auditor
In accordance with the company's articles, a resolution proposing that Barlow Andrews LLP be reappointed as auditor of the company will be put at a General Meeting.
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
Dom Clarke
Director
21 January 2020
INVESTMENT FUND SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 3 -
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;
-
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 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.
INVESTMENT FUND SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INVESTMENT FUND SERVICES LIMITED
- 4 -
Opinion
We have audited the financial statements of Investment Fund Services Limited
(the 'company')
for the year ended 30 September 2019 which comprise
the Profit And Loss Account, the Balance Sheet, the Statement of Changes in Equity
and
notes to the financial statements, including a summary of significant accounting policies
. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 30 September 2019 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the
financial statements
does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
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' r
eport 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.
INVESTMENT FUND SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTMENT FUND SERVICES 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 identifie
d
material misstatements in the strategic report or the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of directors' remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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 for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://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 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.
Mark Pearson (Senior Statutory Auditor)
for and on behalf of Barlow Andrews LLP
21 January 2020
Chartered Accountants
Statutory Auditor
Carlyle House
78 Chorley New Road
Bolton
INVESTMENT FUND SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 6 -
2019
2018
Notes
£
£
Turnover
3
35,325,525
32,542,803
Administrative expenses
(34,485,631)
(31,914,421)
Operating profit
4
839,894
628,382
Interest receivable and similar income
7
22,938
101,103
Profit before taxation
862,832
729,485
Taxation
8
(166,513)
(121,151)
Profit for the financial year
696,319
608,334
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There is no other comprehensive income for the year. The total comprehensive income is the profit for the financial year shown above.
INVESTMENT FUND SERVICES LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2019
30 September 2019
- 7 -
2019
2018
Notes
£
£
£
£
Fixed assets
Investments
9
100
100
Current assets
Debtors
11
40,278,811
22,181,394
Investments
12
26,209
39,124
Cash at bank and in hand
7,049,838
4,964,044
47,354,858
27,184,562
Creditors: amounts falling due within one year
13
(43,419,660)
(23,945,683)
Net current assets
3,935,198
3,238,879
Total assets less current liabilities
3,935,298
3,238,979
Capital and reserves
Called up share capital
15
10,000
10,000
Profit and loss reserves
3,925,298
3,228,979
Total equity
3,935,298
3,238,979
The financial statements were approved by the board of directors and authorised for issue on 21 January 2020 and are signed on its behalf by:
Allan Hamer
Dom Clarke
Director
Director
Company Registration No. 06110770
INVESTMENT FUND SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 8 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2017
10,000
2,620,645
2,630,645
Year ended 30 September 2018:
Profit and total comprehensive income for the year
-
608,334
608,334
Balance at 30 September 2018
10,000
3,228,979
3,238,979
Year ended 30 September 2019:
Profit and total comprehensive income for the year
-
696,319
696,319
Balance at 30 September 2019
10,000
3,925,298
3,935,298
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 9 -
1
Accounting policies
Company information
Investment Fund Services Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Marlborough House, 59 Chorley New Road, Bolton.
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 a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of 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
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash
f
low and related notes and disclosures
;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ – Carrying amounts, 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 33 ‘Related Party Disclosures’ – Compensation for key management personnel
.
Investment Fund Services Limited is a wholly owned subsidiary of
Marlborough Group Holdings Limited
and the results of Investment Fund Services Limited are included in the consolidated financial statements
of Marlborough Group Holdings Limited
which are available from Companies House, Crown Way, Cardiff.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue 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 the provision of management services and from the servicing of transactions in the funds under management in the period. Revenue is recognised as the services are provided on a day to day basis.
1.4
Fixed asset investments
Interests in subsidiaries
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.
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 10 -
1.5
Cash at bank and in hand
Cash
at bank and in hand
are basic financial assets
and
include cash in hand
and
deposits held at call with banks
.
1.6
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.
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.
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
1
Accounting policies
(Continued)
- 11 -
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 and loans from
fellow group companies, 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 receipts 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. A
m
ounts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.7
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable
.
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.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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 lease
s
asset are consumed.
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 12 -
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.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2019
2018
£
£
Turnover analysed by class of business
Provision of management services
35,325,525
32,542,803
2019
2018
£
£
Other significant revenue
Interest income
2,798
952
Dividends received
20,140
100,151
2019
2018
£
£
Turnover analysed by geographical market
United Kingdom
35,325,525
32,542,803
4
Operating profit
2019
2018
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
10,800
10,920
Operating lease charges
55,785
55,840
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 13 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2019
2018
Number
Number
Office and management
125
122
Their aggregate remuneration comprised:
2019
2018
£
£
Wages and salaries
2,700,898
2,459,788
Social security costs
294,907
262,551
Pension costs
200,466
167,261
3,196,271
2,889,600
6
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
584,163
437,558
Company pension contributions to defined contribution schemes
42,176
29,405
626,339
466,963
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 8 (2018 - 7).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2019
2018
£
£
Remuneration for qualifying services
141,272
137,389
Company pension contributions to defined contribution schemes
12,738
12,550
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 14 -
7
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on bank deposits
2,798
952
Other income from investments
Dividends received
140
151
Total income excluding fixed asset investments
2,938
1,103
Income from fixed asset investments
Income from shares in group undertakings
20,000
100,000
Total income
22,938
101,103
Investment income includes the following:
Dividends from financial assets measured at fair value through profit or loss
140
151
8
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
166,490
121,151
Adjustments in respect of prior periods
23
-
Total current tax
166,513
121,151
The actual 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:
2019
2018
£
£
Profit before taxation
862,832
729,485
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
163,938
138,602
Tax effect of expenses that are not deductible in determining taxable profit
8,243
2,295
Adjustments in respect of prior years
23
-
Group relief
(1,864)
(717)
Dividend income
(3,827)
(19,029)
Taxation charge for the year
166,513
121,151
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 15 -
9
Fixed asset investments
2019
2018
Notes
£
£
Investments in subsidiaries
10
100
100
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 October 2018 & 30 September 2019
100
Carrying amount
At 30 September 2019
100
At 30 September 2018
100
10
Subsidiaries
Details of the company's subsidiaries at 30 September 2019 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shareholding
Directly
IFSL Professional Services Limited
Marlborough House, 59 Chorley New Road, Bolton
Publication production and other services for Authorised Corporate Directors
Ordinary
100.00
11
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
2,661,777
2,854,406
Money due from deals
37,383,660
18,910,098
Corporation tax recoverable
-
29,589
Amounts due from group undertakings
20,000
139,067
Other debtors
3,445
3,445
Prepayments and accrued income
209,929
244,789
40,278,811
22,181,394
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 16 -
12
Current asset investments
2019
2018
£
£
Unlisted investments
26,209
39,124
13
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
1,288,490
22,076
Amounts due to group undertakings
1,693,068
1,149,720
Corporation tax
10,060
-
Money due on deals
37,252,439
19,606,022
Accruals and deferred income
3,175,603
3,167,865
43,419,660
23,945,683
14
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
200,466
167,261
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.
15
Share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
10,000 Ordinary shares of £1 each
10,000
10,000
Each share issued is entitled to one vote in any circumstances.
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2019
- 17 -
16
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2019
2018
£
£
Within one year
3,034
36,408
Between two and five years
-
3,034
3,034
39,442
17
Related party transactions
Transactions with related parties
The company has managed 62 authorised collective investment schemes during the year and generated income of £35,325,525 directly from these funds. At 30 September 2019, there was £2,120,982 (2018: £2,570,337) due from the funds.
18
Ultimate controlling party
The parent company is Marlborough Group Holdings Limited.
The ultimate parent company is UFC Fund Management Plc.
UFC Fund Management Plc
is under the ultimate control of
Mr A Staley.
The company is included in the consolidated accounts of
Marlborough Group Holdings Limited and UFC Fund Management Plc
.
2019-09-30
2018-10-01
false
CCH Software
CCH Accounts Production 2020.100
Andrew Staley
Nicholas F J Cooling
Allan Hamer
Wayne Green
Helen Redmond
Dom Clarke
Helen Redmond
Dom Clarke
Helen Derbyshire
Guy Sears
Richard Goodall
Chris Young
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