|
Basis of opinion |
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. |
|
Other information |
The other information comprises the information included in the report and financial statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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 the audit: |
● |
the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
● |
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. |
|
Matters on which we are required to report by exception |
DIRECT MARKET TOUCH LIMITED
|
Statement of Cash Flows |
for the year ended 31 October 2017
|
|
Notes |
|
2017 |
|
2016 |
£ |
£ |
Operating activities |
Profit for the financial year |
141,030 |
|
127,569 |
|
Adjustments for: |
Interest receivable |
(181) |
|
(254) |
Interest payable |
35 |
|
- |
Tax on profit on ordinary activities |
35,998 |
|
33,827 |
Depreciation |
1,791 |
|
1,676 |
Decrease/(increase) in debtors |
51,343 |
|
(62,656) |
(Decrease)/increase in creditors |
(2,922) |
|
90,248 |
|
|
|
227,094 |
|
190,410 |
|
Interest received |
181 |
|
254 |
Interest paid |
|
|
(35) |
|
- |
Corporation tax paid |
(33,933) |
|
(7,704) |
|
Cash generated by operating activities |
193,307 |
|
182,960 |
|
|
|
|
|
|
Investing activities |
Payments to acquire tangible fixed assets |
(2,638) |
|
(1,139) |
|
Cash used in investing activities |
(2,638) |
|
(1,139) |
|
|
|
|
|
|
Financing activities |
Equity dividends paid |
(100,000) |
|
(100,000) |
|
Cash used in financing activities |
(100,000) |
|
(100,000) |
|
|
|
|
|
|
Net cash generated |
Cash generated by operating activities |
193,307 |
|
182,960 |
Cash used in investing activities |
(2,638) |
|
(1,139) |
Cash used in financing activities |
(100,000) |
|
(100,000) |
|
Net cash generated |
90,669 |
|
81,821 |
|
Cash and cash equivalents at 1 November |
448,533 |
|
366,712 |
Cash and cash equivalents at 31 October |
539,202 |
|
448,533 |
|
|
|
|
|
|
Cash and cash equivalents comprise: |
Cash at bank |
539,202 |
|
448,533 |
|
|
|
|
|
|
|
|
|
Debtors
|
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
|
|
|
Creditors
|
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
|
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
|
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
|
|
|
Foreign currency translation |
|
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
|
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
|
|
2 |
Analysis of turnover |
2017 |
|
2016 |
£ |
£ |
|
|
Security brokerage and fund management fees and commissions |
876,673 |
|
707,812 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
876,673 |
|
707,812 |
|
|
|
|
|
|
|
|
|
|
3 |
Operating profit |
2017 |
|
2016 |
£ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
1,791 |
|
1,676 |
|
Operating lease rentals - land and buildings |
59,514 |
|
58,201 |
|
Auditors' remuneration for audit services |
5,700 |
|
5,100 |
|
|
|
|
|
|
|
|
|
|
4 |
Directors' emoluments |
2017 |
|
2016 |
£ |
£ |
|
|
Emoluments |
26,000 |
|
24,000 |
|
|
|
|
|
|
|
|
|
|
5 |
Staff costs |
2017 |
|
2016 |
£ |
£ |
|
|
Wages and salaries |
322,229 |
|
226,102 |
|
Social security costs |
31,867 |
|
22,860 |
|
|
|
|
|
|
354,096 |
|
248,962 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Administration |
2 |
|
2 |
|
Marketing |
1 |
|
1 |
|
Sales |
5 |
|
3 |
|
|
|
|
|
|
8 |
|
6 |
|
|
|
|
|
|
|
|
|
|
6 |
Taxation |
2017 |
|
2016 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
35,855 |
|
33,934 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
143 |
|
(107) |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
35,998 |
|
33,827 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2017 |
|
2016 |
£ |
£ |
|
Profit on ordinary activities before tax |
177,028 |
|
161,396 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK
|
19.41% |
|
20% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
34,361 |
|
32,279 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
1,658 |
|
1,548 |
|
Capital allowances for period in excess of depreciation |
(164) |
|
107 |
|
|
Current tax charge for period |
35,855 |
|
33,934 |
|
|
|
|
|
|
|
|
|
|
|
Factors that may affect future tax charges |
|
The company is expected to benefit from the upcoming changes to the corporation tax rate, which according to current legislation will be reduced to 17% from 1 April 2020.
|
|
|
7 |
Tangible fixed assets |
|
|
|
|
|
|
|
|
Fixtures, fittings and equipment |
|
|
|
|
|
|
|
|
At cost |
£ |
|
Cost or valuation |
|
At 1 November 2016 |
17,867 |
|
Additions |
2,638 |
|
At 31 October 2017 |
20,505 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 November 2016 |
16,124 |
|
Charge for the year |
1,791 |
|
At 31 October 2017 |
17,915 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 October 2017 |
2,590 |
|
At 31 October 2016 |
1,743 |
|
|
|
|
|
|
|
|
|
|
|
8 |
Debtors |
2017 |
|
2016 |
£ |
£ |
|
|
Trade debtors |
17,131 |
|
71,939 |
|
Other debtors |
40,270 |
|
40,270 |
|
Prepayments and accrued income |
32,952 |
|
29,487 |
|
|
|
|
|
|
90,353 |
|
141,696 |
|
|
|
|
|
|
|
|
|
|
9 |
Creditors: amounts falling due within one year |
2017 |
|
2016 |
£ |
£ |
|
|
Trade creditors |
13,021 |
|
11,978 |
|
Corporation tax |
35,855 |
|
33,933 |
|
Other taxes and social security costs |
4,639 |
|
- |
|
Other creditors |
104,011 |
|
111,660 |
|
Accruals and deferred income |
11,134 |
|
12,089 |
|
|
|
|
|
|
168,660 |
|
169,660 |
|
|
|
|
|
|
|
|
|
|
10 |
Deferred taxation |
2017 |
|
2016 |
£ |
£ |
|
|
Accelerated capital allowances |
492 |
|
349 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017 |
|
2016 |
£ |
£ |
|
|
At 1 November |
349 |
|
456 |
|
Charged/(credited) to the profit and loss account |
143 |
|
(107) |
|
|
At 31 October |
492 |
|
349 |
|
|
|
|
|
|
|
|
|
|
|
11 |
Share capital |
Nominal |
|
2017 |
|
2017 |
|
2016 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares
|
£1 each |
|
50,000 |
|
50,000 |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
12 |
Profit and loss account |
2017 |
|
2016 |
£ |
£ |
|
|
At 1 November |
371,963 |
|
344,394 |
|
Profit for the financial year |
141,030 |
|
127,569 |
|
Dividends |
(100,000) |
|
(100,000) |
|
|
At 31 October |
412,993 |
|
371,963 |
|
|
|
|
|
|
|
|
|
|
13 |
Dividends |
2017 |
|
2016 |
£ |
£ |
|
|
Dividends on ordinary shares (note 12) |
100,000 |
|
100,000 |
|
|
|
|
|
|
|
|
|
|
14 |
Other financial commitments |
|
|
Total future minimum lease payments under non-cancellable operating leases: |
|
|
|
Land and buildings |
|
Land and buildings |
Other |
Other |
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
£ |
£ |
£ |
£ |
|
Falling due: |
|
within one year |
- |
|
40,270 |
|
- |
|
- |
|
in over five years |
62,700 |
|
- |
|
- |
|
- |
|
|
62,700 |
|
40,270 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
15 |
Related party transactions |
2017 |
|
2016 |
£ |
£ |
|
|
Mr A R D Charalambous |
|
Director |
|
|
Interest-free loan to company |
|
Amount due to Mr A R D Charalambous |
3,669 |
|
52,329 |
|
|
Dividends paid to Mr A R D Charalambous |
50,000 |
|
50,000 |
|
|
#REF! |
|
Director |
|
|
Interest-free loan to company |
|
Amount due to Mr P Charalambous |
3,090 |
|
51,770 |
|
|
Dividends paid to Mr P Charalambous |
50,000 |
|
50,000 |
|
|
16 |
Controlling party |
|
|
The company is under joint control by the directors, Messrs A R D and P Charalambous.
|
|
|
17 |
Presentation currency |
|
|
The financial statements are presented in Sterling.
|
|
|
18 |
Legal form of entity and country of incorporation |
|
|
DIRECT MARKET TOUCH LIMITED is a private company limited by shares and incorporated in England. |
|
|
19 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
8-9 New Street |
|
London |
|
Director |
|
EC2M 4TP |