Registration number:
Hottinger Private Office Limited
for the Year Ended 31 December 2017
Hottinger Private Office Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Hottinger Private Office Limited
Company Information
Directors |
M J Robertson G W D Heseltine |
Registered office |
|
Bankers |
|
Auditors |
|
Page 1 |
Hottinger Private Office Limited
Strategic Report for the Year Ended 31 December 2017
The directors present their strategic report for the year ended 31 December 2017.
Fair review of the business
Following the merger with Archimedes Family Office, which completed in July 2016 to form the Hottinger Group, 2017 saw Hottinger Private Office and Hottinger Investment Management benefit from the proposed synergies as clients were introduced to the full services of the Group.
Hottinger Private Office Limited saw growth across the board, with mandated and advisory fee income driving profitability. The Company benefited from the transfer of the Swiss mandated fees into the UK operations, in addition to the new business generated from Group introductions.
Hottinger Investment Management saw gross income improve over the year as assets under management increased from both Group introductions and new business in core areas such as discretionary management.
2017 also saw Group efficiencies on the cost side as Group entities moved into the office thereby creating more efficient use of space and reducing building costs and office administration for the company. New roles and responsibilities also saw major savings in personnel costs and early retirement plans coinciding with the introduction of new, young team members has brought a new vibrancy to the company.
Principal risks and uncertainties
The principle risks to Hottinger Private Office Ltd are:
- fall in the markets could result in a reduction in the value of funds under advice
- The loss of any existing client policies
- The non-payment of fees owed to the company
The principal risks to Hottinger Investment Management Ltd are:
- A fall in markets could result in a reduction in the value of funds under management, on which the company's income is based.
- Any failures in operating controls could lead to reputational damage, withdrawal of funds, compensation, penalties and potentially the company's authorisation to carry on regulated activities being revoked.
Approved by the Board on
.........................................
M J Robertson
Director
Page 2 |
Hottinger Private Office Limited
Directors' Report for the Year Ended 31 December 2017
The directors present their report and the for the year ended 31 December 2017.
Directors of the group
The directors who held office during the year were as follows:
Financial instruments
The company's principal financial instruments consist of financial assets and liabilities such as cash at bank, trade debtors and trade creditors. These arise directly from its operations.
Price risk, credit risk, liquidity risk and cash flow risk
Price risk
Price risk arises on financial instruments because of change in, for example, commodity prices or equity prices. The group does not currently have any direct risk of price exposure.
Liquidity risk
The group manages its cash to maximise interest income whilst maintaining sufficient liquid resources to meet the operating needs of its business.
Credit risk
Investments of cash surpluses are made through reputable banks with suitably high credit ratings. Receivables are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Foreign currency risk
The principal foreign currency exposure arises from revenues in foreign currencies.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the Board on
.........................................
M J Robertson
Director
Page 3 |
Hottinger Private Office Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 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; and |
• |
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.
Page 4 |
Hottinger Private Office Limited
Independent Auditor's Report to the Members of Hottinger Private Office Limited
Opinion
We have audited the financial statements of Hottinger Private Office Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2017, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 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 group's and the parent company's affairs as at 31 December 2017 and of the group's 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. |
Basis for 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 group 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 group’s or the parent 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. |
Page 5 |
Hottinger Private Office Limited
Independent Auditor's Report to the Members of Hottinger Private Office Limited
Other information
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.
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• |
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the parent company 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 Statement of Directors' Responsibilities [set out on page 4], 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 group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.
Page 6 |
Hottinger Private Office Limited
Independent Auditor's Report to the Members of Hottinger Private Office Limited
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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our 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.
......................................
For and on behalf of
22 Chancery Lane
WC2A 1LS
Page 7 |
Hottinger Private Office Limited
Consolidated Profit and Loss Account for the Year Ended 31 December 2017
Note |
2017 |
2016 |
|
Turnover |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit/(loss) |
|
( |
|
Other interest receivable and similar income |
|
|
|
Profit/(loss) before tax |
|
( |
|
Taxation |
( |
|
|
Profit/(loss) for the financial year and total comprehensive income / (loss) |
|
( |
|
Attributable to: |
|||
Owners of the company |
|
( |
|
Minority interests |
|
( |
|
|
( |
The group has no recognised gains or losses for the year other than the results above.
Page 8 |
Hottinger Private Office Limited
(Registration number: 07078765)
Consolidated Balance Sheet as at 31 December 2017
Note |
2017 |
2016 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Other capital contributions |
|
|
|
Profit and loss account |
|
( |
|
Equity attributable to owners of the company |
|
|
|
Minority interests |
|
|
|
Total equity |
|
|
Approved and authorised by the
.........................................
M J Robertson
Director
Page 9 |
Hottinger Private Office Limited
(Registration number: 07078765)
Balance Sheet as at 31 December 2017
Note |
2017 |
2016 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets/(liabilities) |
|
( |
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Other capital contributions |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
The company made a profit after tax for the financial year of £355,506 (2016 - loss of £10,244).
Approved and authorised by the
.........................................
M J Robertson
Director
Page 10 |
Hottinger Private Office Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2017
Equity attributable to the parent company
Share capital |
Other capital contributions |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 January 2017 |
|
|
( |
|
|
|
Profit for the year |
- |
- |
|
|
|
|
Total comprehensive income |
- |
- |
|
|
|
|
At 31 December 2017 |
|
|
|
|
|
|
Share capital |
Other capital contributions |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
|
At 1 January 2016 |
|
|
|
|
- |
|
Loss for the year |
- |
- |
( |
( |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
( |
( |
Capital contributed |
- |
|
- |
|
- |
|
NCI arising on acquisition of subsidiary |
- |
- |
- |
- |
|
|
At 31 December 2016 |
|
|
( |
|
|
|
Page 11 |
Hottinger Private Office Limited
Statement of Changes in Equity for the Year Ended 31 December 2017
Share capital |
Other capital contributions |
Profit and loss account |
Total |
|
At 1 January 2017 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Total comprehensive income |
- |
- |
|
|
At 31 December 2017 |
|
|
|
|
Share capital |
Other capital contributions |
Profit and loss account |
Total |
|
At 1 January 2016 |
|
|
|
|
Loss for the year |
- |
- |
( |
( |
Total comprehensive income |
- |
- |
( |
( |
Capital contributions received |
- |
|
- |
|
At 31 December 2016 |
|
|
|
|
Page 12 |
Hottinger Private Office Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2017
Note |
2017 |
2016 |
|
Cash flows from operating activities |
|||
Profit/(loss) for the year |
|
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
( |
|
Corporation tax expense |
|
( |
|
|
( |
||
Working capital adjustments |
|||
Increase in trade debtors |
( |
( |
|
Increase in trade creditors |
|
|
|
Cash generated from operations |
( |
( |
|
Income taxes received/(paid) |
|
( |
|
Net cash flow from operating activities |
( |
( |
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Acquisition of intangible assets |
|
( |
|
Advances of loans, classified as investing activities |
( |
( |
|
Net cash movement from acquisition of subsidiary |
- |
( |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Proceeds from other borrowing draw downs |
|
|
|
Capital contributions received, other than issues of share capital |
- |
|
|
Net cash flows from financing activities |
|
|
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
663,869 |
729,361 |
Page 13 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
General information |
The company is a private company limited by share capital incorporated in England.
The address of its registered office is:
United Kingdom
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared in accordance with the Financial Reporting Standards 102 - 'The Financial Reporting Standards Applicable to the UK and Republic of Ireland' (FRS 102) and applicable legislation as set out in the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
Basis of consolidation
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2017.
No income statement is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £355,506 (2016 - loss of £10,244).
Page 14 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of financial services and related commission. Turnover is shown net of value added tax and discounts.
Turnover is recognised in the period in which services are provided.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Page 15 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible assets are stated at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Furniture, Fixtures & Fittings |
25% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Page 16 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill on investment in Hottinger Investment Management |
10% per annum |
Other intangible assets |
33% per annum |
Investments
Investments in the subsidiary in the company's individual financial statements are measured at cost less impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Borrowings from related parties are interest free, unsecured and payable on demand. They are measured at the transaction price.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Other capital contributions received without any obligation to make repayment are also classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.
Page 17 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Turnover |
The analysis of the group's revenue for the year from continuing operations is as follows:
2017 |
2016 |
|
Rendering of services - investment management, brokerage and related advisory and support services |
|
|
Operating profit |
Arrived at after charging/(crediting)
2017 |
2016 |
|
Depreciation expense |
|
|
Amortisation expense |
|
- |
Foreign exchange losses/(gains) |
|
( |
Operating lease expense - property |
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2017 |
2016 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Other short-term employee benefits |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
- |
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2017 |
2016 |
|
Administration and support |
|
|
Senior management |
|
|
|
|
Page 18 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Directors' remuneration |
The directors' remuneration for the year was as follows:
2017 |
2016 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
- |
Compensation for loss of office |
- |
|
260,000 |
162,917 |
In respect of the highest paid director:
2017 |
2016 |
|
Remuneration |
|
- |
Company contributions to money purchase pension schemes |
|
- |
Auditors' remuneration |
2017 |
2016 |
|
Audit of these financial statements |
5,400 |
4,500 |
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
11,000 |
12,000 |
|
|
|
Other fees to auditors |
||
Taxation compliance services |
|
- |
All other non-audit services |
|
|
|
|
Page 19 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Taxation |
Tax charged/(credited) in the income statement
2017 |
2016 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
- |
79,935 |
7,472 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
( |
Tax expense/(receipt) in the income statement |
|
( |
Reconciliation of tax charge to profit before tax multiplied by the standard rate of corporation tax for the period of
2017 |
2016 |
|
Profit/(loss) before tax |
|
( |
Corporation tax at standard rate |
|
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
UK deferred tax (credit)/expense relating to changes in tax rates or laws |
( |
|
Total tax charge/(credit) |
|
( |
Deferred tax assets and liabilities - Group
2017 |
Asset |
Liability |
Accelerated tax depreciation |
|
|
Tax losses |
|
- |
|
|
2016 |
Asset |
Liability |
Accelerated tax depreciation |
|
|
Tax losses |
|
- |
|
|
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £
Page 20 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Deferred tax assets and liabilities - Company
2017 |
Liability |
Accelerated tax depreciation |
|
2016 |
Liability |
Accelerated tax depreciation |
|
Factors that may affect future tax charges
Finance (No. 2) Act 2015 sets the main rate of corporate tax at 17% with effect from the financial year 2020.
Intangible assets |
Group
Goodwill |
Website development costs |
Total |
|
Cost or valuation |
|||
At 1 January 2017 |
|
|
|
Disposals |
- |
( |
( |
At 31 December 2017 |
|
- |
|
Amortisation |
|||
Amortisation charge |
|
- |
|
At 31 December 2017 |
|
- |
|
Carrying amount |
|||
At 31 December 2017 |
|
- |
|
At 31 December 2016 |
|
|
|
Page 21 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Tangible assets |
Group
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
||
At 1 January 2017 |
|
|
Additions |
|
|
Disposals |
( |
( |
At 31 December 2017 |
|
|
Depreciation |
||
At 1 January 2017 |
|
|
Charge for the year |
|
|
Eliminated on disposal |
( |
( |
At 31 December 2017 |
|
|
Carrying amount |
||
At 31 December 2017 |
|
|
At 31 December 2016 |
|
|
Page 22 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
10 |
Tangible assets (continued) |
Company
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
||
At 1 January 2017 |
|
|
Additions |
|
|
Disposals |
( |
( |
At 31 December 2017 |
|
|
Depreciation |
||
At 1 January 2017 |
|
|
Charge for the year |
|
|
Eliminated on disposal |
( |
( |
At 31 December 2017 |
|
|
Carrying amount |
||
At 31 December 2017 |
|
|
At 31 December 2016 |
|
|
Page 23 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Investments |
Company
Subsidiaries |
£ |
Cost |
|
At 1 January 2017 |
|
Carrying amount |
|
At 31 December 2017 |
|
At 31 December 2016 |
|
Details of subsidiary undertakings
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2017 |
2016 |
|||
|
27 Queen Anne's Gate, London, SW1H 9BU |
Ordinary |
|
|
|
27 Queen Anne's Gate, London, SW1H, 9BU |
Ordinary |
|
|
The principal activity of Hottinger Investment Management Limited is investment management. The company acquired 80% of the shares in Hottinger Investment Management during 2016.
Hottinger Group Limited is a dormant entity, wholly owned by Hottinger Investment Management Limited
Debtors |
Group |
Group |
Company |
Company |
|
2017 |
2016 |
2017 |
2016 |
|
Trade debtors |
|
|
|
- |
Amounts owed by related parties |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
|
- |
Accrued income |
|
|
|
|
Deferred tax assets |
|
|
- |
- |
Total current trade and other debtors |
|
|
|
|
Page 24 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Cash and cash equivalents |
Group |
Group |
Company |
Company |
|
2017 |
2016 |
2017 |
2016 |
|
Cash on hand |
|
- |
|
- |
Cash at bank |
|
|
|
|
|
|
|
|
Creditors |
Group |
Group |
Company |
Company |
|
2017 |
2016 |
2017 |
2016 |
|
Due within one year |
||||
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Amounts due to related parties |
|
|
|
|
Social security and other taxes |
|
|
|
|
Other payables |
|
|
|
|
Accrued expenses |
|
|
|
|
Corporation tax liability |
87,406 |
7,465 |
87,406 |
7,465 |
|
|
|
|
Share capital |
Allotted, called up and fully paid shares
2017 |
2016 |
|||
No. |
£ |
No. |
£ |
|
Ordinary shares of £1 each |
1,000 |
1,000 |
1,000 |
1,000 |
Page 25 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Reserves |
Other capital contributions
Other capital contributions are amounts provided to the company by its parent entity without a formal issue of shares but where the company has no obligation to make repayment. The amounts were contributed to enable the company to purchase the subsidiary.
Obligations under leases |
Group
Operating leases - lessee
The total of future minimum lease payments is as follows:
2017 |
2016 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Operating leases - lessor
The total of future minimum lease receipts is as follows:
2017 |
2016 |
|
Not later than one year |
|
- |
Company
Operating leases - lessee
The total of future minimum lease payments is as follows:
2017 |
2016 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
- |
|
|
|
Operating leases - lessor
The total of future minimum lease receipts is as follows:
2017 |
2016 |
|
Not later than one year |
|
- |
Page 26 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Dividends |
Shortly before the year end the directors resolved to pay an interim dividend of €40,000. The dividend had not been paid by the balance sheet date and is not accrued in these financial statements.
Related party transactions |
Key management compensation
Key management are the directors. Remuneration is disclosed in note 6.
Summary of transactions with parent
During 2016 Hottinger Private Office Limited received contributions of £443,520 from ArchCo Limited. Hottinger Private Office does not have any obligation to repay these contributions, which have been classified as equity. The contributions were not a formal issue of shares and do not carry any voting, dividend, or specific redemption rights.
Summary of transactions with entities under common control
During the period Hottinger Private Office Limited advanced €90,000 to Hottinger Family Office Limited (Ireland), an entity under common control. This amount is interest free, payable on demand, and was outstanding at 31 December 2017.
During the period Hottinger Private Office Limited sublet an office to Quintessentially People Limited, an entity under common control. Rent and related service charges in the period were £53,579.
With effect from 1 January 2017 various expenses are shared and recharged among entities under common control, including staff costs, office rent, and IT and marketing costs. The net amount recharged by the company in the period was £191,873 (by the company and its subsidiary - £337,505). At 31 December 2017 the company had related receivables balances of £559,855 (group - £592,097) and payables of £386,322 (group - £272,932). In addition, some of the company’s clients have been introduced through other group entities.
Summary of transactions with other related parties
Page 27 |
Hottinger Private Office Limited
Notes to the Financial Statements for the Year Ended 31 December 2017
Financial instruments |
Categorisation of principal financial instruments
2017 |
2016 |
|
Group |
||
Bank balances |
663,284 |
729,361 |
Financial assets that are debt instruments measured at amortised cost |
|
|
Financial liabilities measured at amortised cost |
( |
( |
2017 |
2016 |
|
Company |
||
Bank accounts |
9,249 |
16,588 |
Financial assets that are debt instruments measured at amortised cost |
|
|
Financial assets that are equity instruments measured at cost less impairment |
|
|
Financial liabilities measured at amortised cost |
( |
( |
Financial assets measured at amortised cost include trade receivables and loans to related parties.
Financial liabilities measured at amortised cost include trade payables and borrowings from related parties.
Equity instruments are the investment in the company's subsidiary.
Parent and ultimate parent undertaking |
The company's immediate and ultimate parent is
ArchCo Limited does not prepare consolidated financial statements.
Page 28 |