Registration number:
Absolute Return Investment Advisers (ARIA) Limited
trading as
for the Year Ended 31 March 2018
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Contents
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Profit and Loss Account |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Strategic Report for the Year Ended 31 March 2018
The directors present their strategic report for the year ended 31 March 2018.
Principal activity
The principal activity of the company is the provision of investment advisory services
Fair review of the business
The Company made a pre-tax profit of £506,127 compared to £177,197 in 2017 and had net assets of £986,608 at the balance sheet date.
The Directors consider this to be a satisfactory outcome for the year given the Company's focus on establishing UCITS V fund structures, as well as continued development of the welath management platform. The Directors consider the Company is well placed to take advantage of changes in the global financial services industry.
Principal risks and uncertainties
The Directors have, in May 2017, undergone a thorough analysis of the risks inherent in the Company’s activities. The analysis identified the likelihood of the event occurring as well as the magnitude of the impact on the Company should the event occur. The Directors considered the level of control exercised by the Company to manage the risk that the event occurs, as well as identifying the persons to manage the risk and those persons to supervise and monitor the risk.
The main risk that the Directors identified was from the disintermediation of the Financial Services industry and its increasingly global nature, given historically much of the client business has been intermediated by professional advisers. The Directors consider that the Company’s size and the ability to react rapidly to changing market and industry conditions marks a considerable strength as well as presenting opportunities.
The Company also minimises this risk whenever possible through diversification and broadening of its service proposition. To this end, the Company has developed more ‘direct-to-client’ services, and developed platforms for new client types, such as a securitisation platform, which will move the Company towards a multi-distribution channel business.
Approved by the
.........................................
M Brittain
Chief executive
.........................................
A McKenzie-Smart
Director
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Directors' Report for the Year Ended 31 March 2018
The directors present their report and the financial statements for the year ended 31 March 2018.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The main financial performance indicator applicable to the Company is the value of funds under management. The Company obtained approval from industry regulators to provide UCITS V funds, which are within the range of permissible assets for approved pension funds. During 2017/18 the Company launched the UCITS V Funds, thereby providing suitable investment funds for its clients. Furthermore, the uncertainties around the Brexit transition mean the funds domiciled in Europe could prove particularly beneficial.
Moreover the Company has taken steps to diversify its income through the development of corporate fiduciary and the establishment of family office services. During the year the Company formed a family office structure, Aurifera. Aurifera will provide investment and office administration to Ultra High Net Worth individuals and their families.
The Company has also entered into joint venture arrangements with intermediaries in Singapore, Hong Kong, Malta, Switzerland and the Benelux area, so that the Company has a global presence.
The value of funds under management is an indicator of the performance of individual portfolios and the underlying funds and these are regularly reviewed against industry standards.
Price risk, credit risk, liquidity risk and cash flow risk
The Company's Pillar 3 disclosures can be found on its website on www.ariacm.com.
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Directors' Report for the Year Ended 31 March 2018
Disclosure of information to the auditors
Each of the directors have taken steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. Each director confirms that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Warrener Stewart Chartered Accountants as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Approved by the Board on
.........................................
M Brittain
Chief executive
.........................................
A McKenzie-Smart
Director
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
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.
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Independent Auditor's Report to the Members of Absolute Return Investment Advisers (ARIA) Limited
Opinion
We have audited the financial statements of Absolute Return Investment Advisers (ARIA) Limited (the 'company') for the year ended 31 March 2018, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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).
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.
In our opinion the financial statements:
• |
give a true and fair view of the state of the company's affairs as at 31 March 2018 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. |
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 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.
Emphasis of matter
Contingent liability
We draw attention to note 19 of the financial statements which describes litigation affecting the company. Our opinion is not modified in respect of this matter.
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. |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Independent Auditor's Report to the Members of Absolute Return Investment Advisers (ARIA) 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 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, or returns adequate for our audit have not been received from branches not visited by us; or |
• |
the financial statements are not in agreement with the accounting records and returns; or |
• |
certain disclosures of directors’ remuneration specified by law are not made; or |
• |
we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the 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 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.
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Independent Auditor's Report to the Members of Absolute Return Investment Advisers (ARIA) 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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
• |
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
• |
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control. |
• |
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
• |
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. |
• |
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
• |
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion. |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Independent Auditor's Report to the Members of Absolute Return Investment Advisers (ARIA) Limited
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
......................................
For and on behalf of
Harwood House
43 Harwood Road
SW6 4QP
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Profit and Loss Account for the Year Ended 31 March 2018
Note |
2018 |
2017 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
|
|
|
Other interest receivable and similar income |
- |
|
|
Interest payable and similar expenses |
( |
( |
|
(31,430) |
(21,357) |
||
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Page 9 |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
(Registration number: 07091239)
Balance Sheet as at 31 March 2018
Note |
2018 |
2017 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
Approved and authorised by the
.........................................
M Brittain
Chief executive
.........................................
A McKenzie-Smart
Director
Page 10 |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Statement of Changes in Equity for the Year Ended 31 March 2018
Share capital |
Profit and loss account |
Total |
|
At 1 April 2017 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
Dividends |
- |
( |
( |
At 31 March 2018 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 April 2016 |
|
|
|
Profit for the year |
- |
|
|
Total comprehensive income |
- |
|
|
At 31 March 2017 |
|
|
|
Page 11 |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Statement of Cash Flows for the Year Ended 31 March 2018
Note |
2018 |
2017 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
- |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in trade debtors |
( |
( |
|
Increase/(decrease) in trade creditors |
|
( |
|
Cash generated from operations |
|
( |
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
( |
|
Cash flows from investing activities |
|||
Interest received |
- |
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
- |
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Dividends paid |
( |
- |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 April |
|
|
|
Cash and cash equivalents at 31 March |
277,553 |
52,604 |
Page 12 |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Notes to the Financial Statements for the Year Ended 31 March 2018
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
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 using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the provision of investment management services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Tax
The corporation tax expense for the period comprises current tax.
The current itax 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 company operates and generates taxable income.
Tangible assets
Tangible assets are stated in the statement of financial position 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.
Page 13 |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Notes to the Financial Statements for the Year Ended 31 March 2018
Depreciation
Depreciation is charged so as to write off the cost of assets, over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Computer equipment |
4 years straight line |
Fixtures and fittings |
5 years straight line |
Website |
2 years straight line |
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.
Trade debtors
Trade debtors are amounts due from customers for 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 company will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company 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.
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. 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. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Page 14 |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Notes to the Financial Statements for the Year Ended 31 March 2018
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Judgements in applying accounting polices and key sources of estimation uncertainly |
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised if the revision affects only that year or in the year of revision and future years if the revision affects both current and future years.
Management considers the key estimates and judgements made in the financial statements to be related to:
A. Valuation of the shares, securities and other assets held by the Company's investment funds which determine the Company's management and performance fees receivable.
B. The timing of commissions and fees receivable from the Company's investment funds.
C. The company has also included commissions receivable by the Company which are payable to the firm's introducers as income and associated costs during the year. Under these agreements the Company considers it is acting as principal with an agent to pay the introducer rather than as the introducers' agent.
Revenue |
The analysis of the company's revenue for the year from continuing operations is as follows:
2018 |
2017 |
|
Rendering of services |
|
|
The analysis of the company's turnover for the year by class of business is as follows:
2018 |
2017 |
|
Investment Advisory |
|
|
The analysis of the company's turnover for the year by market is as follows:
2018 |
2017 |
|
UK |
|
|
Rest of world |
|
- |
|
|
Page 15 |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Notes to the Financial Statements for the Year Ended 31 March 2018
Operating profit |
Arrived at after charging/(crediting)
2018 |
2017 |
|
Depreciation expense |
|
|
Other interest receivable and similar income |
2018 |
2017 |
|
Other finance income |
- |
|
Interest payable and similar expenses |
2018 |
2017 |
|
Interest expense on other finance liabilities |
|
|
Foreign exchange (gains) / losses |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2018 |
2017 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
- |
Other employee expense |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2018 |
2017 |
|
Administration and support |
|
|
Page 16 |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Notes to the Financial Statements for the Year Ended 31 March 2018
Directors' remuneration |
The directors' remuneration for the year was as follows:
2018 |
2017 |
|
Remuneration |
|
|
Auditors' remuneration |
2018 |
2017 |
|
Audit of the financial statements |
|
|
Taxation |
Tax charged/(credited) in the income statement
2018 |
2017 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
( |
80,770 |
20,525 |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2017 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2018 |
2017 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
( |
Tax increase from other short-term timing differences |
|
|
Total tax charge |
|
|
Page 17 |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Notes to the Financial Statements for the Year Ended 31 March 2018
Tangible assets |
Short leasehold land and buildings |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Total |
|
Cost or valuation |
|||||
At 1 April 2017 |
|
|
|
|
|
Additions |
- |
|
- |
|
|
At 31 March 2018 |
|
|
|
|
|
Depreciation |
|||||
At 1 April 2017 |
|
|
|
|
|
Charge for the year |
|
|
- |
|
|
At 31 March 2018 |
|
|
|
|
|
Carrying amount |
|||||
At 31 March 2018 |
|
|
- |
|
|
At 31 March 2017 |
|
|
- |
|
|
Included within the net book value of land and buildings above is £44,532 (2017 - £59,376) in respect of short leasehold land and buildings.
Page 18 |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Notes to the Financial Statements for the Year Ended 31 March 2018
Debtors |
2018 |
2017 |
|
Trade debtors |
|
|
Other debtors |
|
|
Prepayments |
|
|
|
|
Cash and cash equivalents |
2018 |
2017 |
|
Cash on hand |
|
- |
Cash at bank |
|
|
|
|
Creditors |
Note |
2018 |
2017 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts due to related parties |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
- |
|
Accruals |
|
|
|
Income tax liability |
119,235 |
49,323 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling
£
Page 19 |
Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Notes to the Financial Statements for the Year Ended 31 March 2018
Share capital |
Allotted, called up and fully paid shares
2018 |
2017 |
|||
No. |
£ |
No. |
£ |
|
|
|
73,636 |
|
73,636 |
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2018 |
2017 |
|
Not later than one year |
|
- |
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Contingent liabilities |
The Company is currently the subject of litigation for material damages from a financial services intermediary regarding a failed investment transaction. The Company has taken legal advice regarding the claim. It considers that the litigation should be addressed to the investment fund that was the transacting party, or its investment managers based in the Cayman Islands rather than the Company, the fund’s investment advisers. The Fund and its administrators consider themselves to be indemnified by the underlying client involved, and the Company therefore considers that it would have a right of recovery from the Fund regarding any litigation settlement. Accordingly the Company considers that aside from reserving for the litigation costs, no provisions should be made in the Company’s accounts for the damages claimed.
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Absolute Return Investment Advisers (ARIA) Limited
trading as ARIA Capital Management
Notes to the Financial Statements for the Year Ended 31 March 2018
Related party transactions |
Key management personnel
Witan Partners Limited, a company in which the director David Brimacombe is also a director and Smart Accounting and Tax Solutions LLP a partnership in which Andrew McKenzie-Smart is a partner.
Summary of transactions with key management
Expenditure with and payables to related parties
2018 |
Key management |
Rendering of services |
|
2017 |
Key management |
Rendering of services |
|
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