Company Registration No. 06110770 (England and Wales)
INVESTMENT FUND SERVICES LIMITED
ANNUAL REPORT
AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
INVESTMENT FUND SERVICES LIMITED
COMPANY INFORMATION
Directors
Andrew Staley
Allan Hamer
Wayne Green
Helen Redmond
Helen Derbyshire
Guy Sears
Sarah Peaston
Company number
06110770
Registered office
Marlborough House
59 Chorley New Road
Bolton
Auditor
Barlow Andrews LLP
Carlyle House
78 Chorley New Road
Bolton
Bankers
HSBC Bank Plc
60 Queen Victoria Street
London
INVESTMENT FUND SERVICES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 18
INVESTMENT FUND SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 1 -
The directors present the strategic report for the year ended 30 September 2021.
Fair review of the business
The company continues to provide independent ACD services. Assets under management, the key driver of revenue, increased during the year to 30 September 2021 by 43% (from £4,575 million to £6,540 million).
Annual management charge revenue for the year was £26.5 million (2020: £22.5 million), an increase of 18% from the previous year, which was predominantly due to an increase in assets under management resulting both from the growth of existing funds and the launch of 8 funds during the year, containing almost £1bn of assets.
There has been a further significant increase in assets under management post year end due to the transfer of assets from another group entity following a group restructure – post-year end, assets under management of £6.5bn were novated from Marlborough Fund Managers Ltd, another ACD within the Group. This is expected to have further favourable impact on the company’s revenue. This restructure leaves the group with a single ACD, and once complete the restructure will reduce the number of regulated firms within the group as well as delivering operational efficiencies.
Expenses have increased by 25.1%, mainly due to the increase in expenses such as external advisory and investment management fees which have been impacted by the launch of new funds and the growth of existing funds during the year. The expenditure increase is also partially due to continued investment by the company in staff and systems, which have been covered by the additional revenue generated from growth in funds and assets under management.
The Company recorded profit before tax of £838k (2020: £780k).
The largest items on the balance sheet are amounts due from and to investors for deals each totalling around £41m (2020: £44m). 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 £5.2m (2020: £4.6m). Profits generated during the year have not been distributed, which left the company holding qualifying assets of over 2x its Pillar 1 capital adequacy requirement as at 30 September 2021. Since the year end, the company’s assets under management have increased significantly and its cost base has also increased following a Group restructure. In order to ensure that the company continues to maintain comfortable coverage over its capital adequacy requirement, the company has been injected with a further £4m of share capital.
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 company is committed to service excellence and high standards of business conduct and has continued to invest in recruitment to enable the company to maintain this throughout its growth.
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.
The company faces various economic, regulatory and social challenges over the coming year, and the Directors believe that by working closely with stakeholders, the company will meet and overcome these 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 reducing travel, reducing paper usage, recycling paper and reducing energy consumption wherever possible.
INVESTMENT FUND SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 2 -
The company would also consider that employee relations are a factor which need to be carefully monitored. During the pandemic the majority of staff have worked from home and the company has ensured staff are supported with the equipment and personal support they need for this. During the year under review, the company has continued to provide flexible working wherever possible and has not furloughed any staff or made use of government assistance schemes. The company considers that it has an appropriate policy both as to remuneration and welfare of its employees, including regular communications throughout the pandemic and lockdowns. The company has also invested in welfare arrangements for employees.
Allan Hamer
Director
21 January 2022
INVESTMENT FUND SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 3 -
The directors present their annual report and financial statements for the year ended 30 September 2021.
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”).
Results and dividends
The results for the year are set out on page 8.
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:
Andrew Staley
Nicholas F J Cooling
(Resigned 27 May 2021)
Allan Hamer
Wayne Green
Helen Redmond
Dom Clarke
(Resigned 27 May 2021)
Helen Derbyshire
Guy Sears
Richard Goodall
(Resigned 27 May 2021)
David Kiddie
(Resigned 2 December 2021)
Sarah Peaston
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.
Energy and carbon report
Th
is 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. The company
has therefore taken advantage of exemptions from the disclosure
requirements relating to energy and carbon
reporting.
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
Allan Hamer
Director
21 January 2022
INVESTMENT FUND SERVICES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 4 -
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
- 5 -
Opinion
We have audited the financial statements of Investment Fund Services Limited
(the 'company')
for the year ended 30 September 2021 which comprise t
he 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 2021 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'
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
- 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 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
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
.
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
:
-
the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
-
we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the financial services sector;
-
we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, FCA regulations, employment, environmental and health and safety legislation;
-
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
-
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
INVESTMENT FUND SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVESTMENT FUND SERVICES LIMITED
- 7 -
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
-
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
-
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
-
performed analytical procedures to identify any unusual or unexpected relationships;
-
tested journal entries to identify unusual transactions; and
-
assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
-
agreeing financial statement disclosures to underlying supporting documentation;
-
reading the minutes of meetings of those charged with governance;
-
enquiring of management as to actual and potential litigation and claims; and
-
reviewing correspondence with relevant regulators.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities 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 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 2022
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 2021
- 8 -
2021
2020
Notes
£
£
Turnover
3
30,096,122
24,167,534
Administrative expenses
(29,263,956)
(23,391,064)
Operating profit
4
832,166
776,470
Interest receivable and similar income
7
5,600
3,944
Profit before taxation
837,766
780,414
Taxation
8
(156,166)
(148,841)
Profit for the financial year
681,600
631,573
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 2021
30 September 2021
- 9 -
2021
2020
Notes
£
£
£
£
Fixed assets
Investments
9
100
100
Current assets
Debtors
11
44,790,530
47,171,694
Investments
12
14,927
19,370
Cash at bank and in hand
5,203,898
6,262,112
50,009,355
53,453,176
Creditors: amounts falling due within one year
13
(44,760,984)
(48,886,405)
Net current assets
5,248,371
4,566,771
Net assets
5,248,471
4,566,871
Capital and reserves
Called up share capital
15
10,000
10,000
Profit and loss reserves
5,238,471
4,556,871
Total equity
5,248,471
4,566,871
The financial statements were approved by the board of directors and authorised for issue on 21 January 2022 and are signed on its behalf by:
Allan Hamer
Wayne Green
Director
Director
Company Registration No. 06110770
INVESTMENT FUND SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2019
10,000
3,925,298
3,935,298
Year ended 30 September 2020:
Profit and total comprehensive income for the year
-
631,573
631,573
Balance at 30 September 2020
10,000
4,556,871
4,566,871
Year ended 30 September 2021:
Profit and total comprehensive income for the year
-
681,600
681,600
Balance at 30 September 2021
10,000
5,238,471
5,248,471
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 11 -
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 2021
1
Accounting policies
(Continued)
- 12 -
1.5
Cash and cash equivalents
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 2021
1
Accounting policies
(Continued)
- 13 -
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
d
asset are consumed.
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
1
Accounting policies
(Continued)
- 14 -
1.12
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.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2021
2020
£
£
Turnover analysed by class of business
Provision of management services
30,096,122
24,167,534
2021
2020
£
£
Other significant revenue
Interest income
5,529
3,842
Dividends received
71
102
2021
2020
£
£
Turnover analysed by geographical market
United Kingdom
30,096,122
24,167,534
4
Operating profit
2021
2020
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
12,940
11,820
Operating lease charges
37,543
36,167
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 15 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Office and management
163
144
Their aggregate remuneration comprised:
2021
2020
£
£
Wages and salaries
3,879,739
3,049,653
Social security costs
425,923
330,648
Pension costs
276,628
236,963
4,582,290
3,617,264
6
Directors' remuneration
2021
2020
£
£
Remuneration for qualifying services
672,338
583,468
Company pension contributions to defined contribution schemes
40,573
39,852
712,911
623,320
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 7 (2020 - 8).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2021
2020
£
£
Remuneration for qualifying services
135,820
137,680
Company pension contributions to defined contribution schemes
12,929
12,800
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 16 -
7
Interest receivable and similar income
2021
2020
£
£
Interest income
Interest on bank deposits
5,529
3,842
Other income from investments
Dividends received
71
102
Total income
5,600
3,944
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
5,529
3,842
Dividends from financial assets measured at fair value through profit or loss
71
102
8
Taxation
2021
2020
£
£
Current tax
UK corporation tax on profits for the current period
159,865
148,841
Adjustments in respect of prior periods
(3,699)
Total current tax
156,166
148,841
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:
2021
2020
£
£
Profit before taxation
837,766
780,414
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020: 19.00%)
159,176
148,279
Tax effect of expenses that are not deductible in determining taxable profit
702
581
Under/(over) provided in prior years
(3,699)
Dividend income
(13)
(19)
Taxation charge for the year
156,166
148,841
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 17 -
9
Fixed asset investments
2021
2020
Notes
£
£
Investments in subsidiaries
10
100
100
10
Subsidiaries
Details of the company's subsidiaries at 30 September 2021 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
Dormant
Ordinary
100.00
11
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
3,017,397
2,119,305
Money due from deals
40,954,791
44,212,021
Other debtors
300,000
Prepayments and accrued income
818,342
540,368
44,790,530
47,171,694
12
Current asset investments
2021
2020
£
£
Unlisted investments
14,927
19,370
13
Creditors: amounts falling due within one year
2021
2020
£
£
Trade creditors
1,906,844
3,136,333
Amounts due to group undertakings
745,559
790,668
Corporation tax
108,706
88,844
Money due on deals
40,632,830
43,767,875
Accruals and deferred income
1,367,045
1,102,685
44,760,984
48,886,405
INVESTMENT FUND SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2021
- 18 -
14
Retirement benefit schemes
2021
2020
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
276,628
236,963
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
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
Each share issued is entitled to one vote in any circumstances.
16
Events after the reporting date
On 26 November 2021, the company allotted 4,000,000 ordinary shares, with a nominal value of £1 per share.
Following this, on 26 November 2021, the company acquired trade from a fellow subsidiary, Marlborough Fund Managers Ltd, which ceased trade from this date.
17
Related party transactions
Transactions with related parties
The company has managed 56 authorised collective investment schemes during the year and generated income of £30,096,122 (2020: £24,167,534) directly from these funds. At 30 September 2021, there was £3,019,260 (2020: £2,076,286) due from the funds.
18
Ultimate controlling party
The parent company is Marlborough Group Holdings Limited.
UFC Fund Management Plc
is
the ultimate group parent.
The company is included in the consolidated accounts of
Marlborough Group Holdings Limited and UFC Fund Management Plc. The registered office of these companies is Marlborough House, 59 Chorley New Road, Bolton.
2021-09-30
2020-10-01
false
CCH Software
CCH Accounts Production 2022.100
Andrew Staley
Nicholas F J Cooling
Allan Hamer
Wayne Green
Helen Redmond
Dom Clarke
Helen Redmond
Dom Clarke
Helen Derbyshire
Guy Sears
Richard Goodall
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