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Registered number: 06974140
AMERSHAM INVESTMENT MANAGEMENT LTD
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 OCTOBER 2019
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AMERSHAM INVESTMENT MANAGEMENT LTD
CONTENTS
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Notes to the Financial Statements
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AMERSHAM INVESTMENT MANAGEMENT LTD
REGISTERED NUMBER: 06974140
BALANCE SHEET
AS AT 31 OCTOBER 2019
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Capital redemption reserve
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The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 February 2020.
The notes on pages 2 to 9 form part of these financial statements.
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AMERSHAM INVESTMENT MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
Amersham Investment Management Limited is a company incorporated in England and Wales with a registration number 06974140. The address of the registered office is 25 Lexington Street, 1st Floor, London W1F 9AH. The nature of the company’s operations and principal activity is investment fund management.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
The financial statements are prepared in sterling which is the functional currency of the company and rounded to the nearest pound sterling.
The following principal accounting policies have been applied:
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
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AMERSHAM INVESTMENT MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
2.Accounting policies (continued)
Tax is recognised in the Statement of Comprehensive Income, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Short-term leasehold property
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of Comprehensive Income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
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AMERSHAM INVESTMENT MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
2.Accounting policies (continued)
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
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The average monthly number of employees, including directors, during the year was 3 (2018 - 3).
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Short-term leasehold property
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Charge for the year on owned assets
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AMERSHAM INVESTMENT MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
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Prepayments and accrued income
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Cash and cash equivalents
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AMERSHAM INVESTMENT MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Commitments under operating leases
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At 31 October 2019 the Company had future minimum lease payments under non-cancellable operating leases as follows:
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Later than 1 year and not later than 5 years
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Related party transactions
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During the year key management personnel were remunerated £40,000 (2018: £22,784). The company also incurred purchases of £219,902 (2018: £227,641) in respect of key management personnel services.
During the year the company made sales of £241,622 (2018: £458,318) to entities in which key management personnel has significant influence.
At the year end the following amounts were due to/(from) the related parties:
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Entities in which key management personnel has significant influence
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The ultimate controlling party is P Barnes by virtue of his majority shareholding.
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AMERSHAM INVESTMENT MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
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Amersham Investment Management Limited (“the Firm”) is authorised and regulated by the Financial Conduct Authority and is categorised as a BIPRU €50,000 Limited Licence Firm for regulatory purposes. The firm is not part of a group or subject to consolidated reporting. This statement has been prepared by the firm in accordance with BIPRU 11 and summarises the material disclosures the firm is required to make under Pillar 3 of the Capital Requirements Directive.
Frequency
Pillar 3 disclosures will be issued on an annual basis after the firm’s audited accounts have been prepared. The disclosures are made at the firm’s accounting reference date which is 31st October 2019.
Materiality
The firm regards the information in these disclosures as material if its omission or misstatement could change or influence the assessment or decision of a user relying on this information to make an economic decision. If the firm deems a certain disclosure to be immaterial, it may be omitted from this statement.
Risk Management
The firm is formally governed by its Board of Directors which consists of Mr Paul Barnes and Mr Michael Waller-Bridge. The Board of Directors, apart from being the primary body to consider and approve general business matters (such as strategy, finance, people and operational matters), oversees the stewardship of the firm’s reputation and stature with clients, counterparts and regulators. In order to discharge this responsibility, the Board of Directors meets at least annually to consider and approve, amongst other things: internal policies; compliance matters; financial results and budgets; capital adequacy; investment performance; terms of engagement with clients and investors.
Quarterly management accounts are used to monitor and project its capital resources and a compliance manual, a compliance monitoring programme and an ICAAP process have been adopted to facilitate risk management in the firm. Given the nature and activities of the firm, its risk appetite is low. It does not securitise assets or deal as principal and therefore it does not have a trading book.
The key risks are considered to be operational risks namely key person risk, reputational risk, client concentration risk, staff errors and IT security or system failures.
Remuneration disclosure
The Firm is authorised and regulated by the Financial Conduct Authority (“FCA”) as a Limited Licence Firm and so, it is subject to FCA Rules on remuneration. The FCA has sought to apply proportionality in the first instance by categorising firms into three levels. The Firm falls within the FCA's proportionality level three and as such this disclosure is made in line with the requirements for a Level three.
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AMERSHAM INVESTMENT MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
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Application of the requirements
We are required to disclose certain information on at least an annual basis regarding our Remuneration policy and practices for those staff whose professional activities have a material impact on the risk profile of the firm. Our disclosure is made in accordance with our size, internal organisation and the nature, scope and complexity of our activities.
1. Summary of information on the decision-making process used for determining the firm’s remuneration policy.
• The Firm’s policy has been agreed by the Board of Directors in line with the RemCode principles laid down by the FCA.
• Due to the size, nature and complexity of the Firm, we are not required to appoint an independent remuneration committee.
• The Firm’s policy will be reviewed as part of annual process and procedures, or following a significant change to the business requiring an update to its internal capital adequacy assessment.
• The Firm’s ability to pay bonuses is based on the overall performance of the Firm overall once its fund’s managed returns have been calculated by client appointed third party administrators and profits earned from its portfolio management activities determined.
2. Summary of how the firm links between pay and performance.
• Individuals are rewarded based on their contribution to the overall strategy of the business.
• Other factors such as performance, reliability, effectiveness of controls, business development and contribution to the business are taken into account when assessing the performance of the senior staff responsible for the infrastructure of the firm.
3. Aggregate quantitative information on remuneration, for staff whose actions have a material impact on the risk profile of the firm. The total amount of directors’ remuneration charged in the year ending 31st October 2019 was £40,000.
Capital Resources
As the firm is a BIPRU €50,000 Limited Licence Firm, it has calculated its capital resources in accordance with GENPRU 2.2. The firm’s capital resources are detailed in the below. As at 31st October 2019, the firm has £187,172 of Tier 1 resources and a capital requirement of the higher of the Base Capital Requirement (€50k); the sum of the Credit Risk Capital Requirement and the Market Risk Capital Requirement and the Fixed Overheads Requirement (3 months expenditure of the firm). In the opinion of the Directors the highest of these three is likely to be the Base Capital Requirement (€50k) while the firm’s current activity level is maintained.
Pillar 1 and Pillar 2
As at the date of this report the firm has a surplus of capital resources over its Pillar 1 capital resources requirement. Pillar 2 capital is additional capital against risks not adequately covered in Pillar 1. The firm has undertaken an Internal Capital Adequacy Assessment Process (ICAAP) to determine whether it needs any further regulatory capital due to the risks it faces as set out above. As a result of this review the firm has concluded that it does not need any further regulatory capital to meet its requirements under Pillar 2.
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AMERSHAM INVESTMENT MANAGEMENT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2019
The auditors' report on the financial statements for the year ended 31 October 2019 was unqualified.
The audit report was signed on 11 February 2020 by Charalambos Patsalides on behalf of Haslers, Chartered Accountants and Statutory Auditor.
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