Exness (UK) Ltd - Limited company accounts 23.1

REGISTERED NUMBER: 08861481 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

EXNESS (UK) LTD

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Statement of Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Statement of Cash Flows

12

Notes to the Financial Statements

13

DIRECTORS:

P Valov

D R Morris

REGISTERED OFFICE:

107 Cheapside

London

EC2V 6DN

REGISTERED NUMBER:

08861481 (England and Wales)

AUDITORS:

AGK Partners

Chartered Accountants & Statutory Auditors

1 Kings Avenue

London

N21 3NA

The directors present their strategic report for the year ended 31 December 2022.

REVIEW OF BUSINESS

The principal activity of Exness (UK) Ltd ("the Company") is that of the provision of investments services in relation to foreign exchange and contracts for difference ("CFDs").

The company is authorised and regulated by the Financial Conduct Authority ("FCA") as a IFPRU €730K firm (CRD IV Full Scope).

The Company fulfilled its regulatory responsibilities during the year under review and is well positioned to address compliance requirements arising from the growth of its B2B and liquidity provision business. The new IFPRU regulatory regime came into effect in January 2002 and the changes to the daily capital calculations had no significant impact on the company's capital requirements.

The expected on-boarding drive in 2022 was slowed to allow for further development of the product. However, trading volumes continued to provide steady income throughout the year.

Going forward it is expected that the company will add further CFD instruments to broaden its market reach. With a well-developed product offering moving into 2023, the company is confident of a steady increase in client acquisition.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks arising from the Company's business activities are identified as operational risk, liquidity risk, market risk, counterparty and credit risk.

The company remains capitalised well in excess of the regulatory capital requirements.

The risk management undertaken mitigates the risks as detailed in the company's Internal Capital Adequacy and Risk Assessment Process (ICARA). The ICARA provides an ongoing assessment of the risks that the Company believes may have a significant detrimental impact on its financial performance.The board sets the strategy and policies for the management of these risks and assigns the management and monitoring of these risks as appropriate.

The principal risks are further detailed in the Company's Disclosures, that can be found at https://www.exness.uk/legal_documents/.

KEY PERFORMANCE INDICATORS

The key performance indicators are: Net assets $63,010,441 an increase on last years figure of $62,721,470.

The company's Liquidity position has improved by circa 8% maintaining our robust financial position.

Trading Revenue of $3,409,209 an increase of circa 95% compared to the previous year $1,722,709.

Operating profit $570,859. There is an increase of $514,704 in comparison to last year's operating profit of $56,155.

There is a small decrease in profit before tax from $427,655 (2021) to $378,563 (2022), due mainly to revaluation of investments.

ON BEHALF OF THE BOARD:

D R Morris - Director

25 April 2023

The directors present their report with the financial statements of the company for the year ended 31 December 2022.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

P Valov

D R Morris

DISCLOSURE IN THE STRATEGIC REPORT

Information relating to the following areas have been disclosed in the strategic report:

- Review of the business

- Principal activities of the company

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, AGK Partners, have signified their willingness to continue in office as auditors.

ON BEHALF OF THE BOARD:

D R Morris - Director

25 April 2023

Opinion

We have audited the financial statements of Exness (UK) Ltd (the 'company') for the year ended 31 December 2022 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 company's affairs as at 31 December 2022 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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 three, 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 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.

Auditors' 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 a Report of the Auditors 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. - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the Investment advisory sector and FCA regulated firms;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- obtaining an understanding of the policies and procedures including internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations in order to design audit procedures that are appropriate in the circumstances (but not not for the purpose of expressing an opinion on the effectiveness of the company's internal control)

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

To address the risk of fraud through management bias and override of controls, we:

- identified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error, design and performed audit procedures responsive to those risks, and obtained audit evidence that is sufficient and appropriate to provide a basis for our opinion

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates in relation to income recognition were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors;

- evaluating 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 (i.e. gives a true and fair view);

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims;

- reviewing correspondence with HMRC and the company's legal advisors; and

- Concluding 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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve collusion, forgery, deliberate concealment and omissions, misrepresentations, or the override of internal control.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Alekos Christofi (FCCA) (Senior Statutory Auditor)

for and on behalf of AGK Partners

Chartered Accountants & Statutory Auditors

1 Kings Avenue

London

N21 3NA

25 April 2023

REVENUE

3

3,433,209

1,746,709

Cost of sales

240,000

-

GROSS PROFIT

3,193,209

1,746,709

Administrative expenses

2,622,350

1,690,554

OPERATING PROFIT

570,859

56,155

Income from fixed asset investments

-

10,707

Interest receivable and similar income

1,142,496

755,626

1,142,496

766,333

1,713,355

822,488

Gain/loss on revaluation of investments

(1,334,792

)

(394,833

)

PROFIT BEFORE TAXATION

6

378,563

427,655

Tax on profit

8

89,592

-

PROFIT FOR THE FINANCIAL YEAR

288,971

427,655

OTHER COMPREHENSIVE

Foreign Exchange Translation reserve

Income tax relating to other comprehensive

-

-

OTHER COMPREHENSIVE FOR THE YEAR, NET OF INCOME TAX

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

288,971

427,655

FIXED ASSETS

Property, plant and equipment

10

3,848

3,930

Investments

11

5,443,191

9,123,982

5,447,039

9,127,912

CURRENT ASSETS

Debtors

12

425,886

496,207

Investments

13

3,570,069

5,638,742

Cash at bank

55,331,536

51,037,614

59,327,491

57,172,563

CREDITORS

Amounts falling due within one year

14

1,764,089

3,579,005

NET CURRENT ASSETS

57,563,402

53,593,558

TOTAL ASSETS LESS CURRENT LIABILITIES

63,010,441

62,721,470

CAPITAL AND RESERVES

Called up share capital

15

64,940,822

64,940,822

Other reserves

16

(295,134

)

(295,134

)

Retained earnings

16

(1,635,247

)

(1,924,218

)

SHAREHOLDERS' FUNDS

63,010,441

62,721,470

The financial statements were approved by the Board of Directors and authorised for issue on 25 April 2023 and were signed on its behalf by:

D R Morris - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

$

$

$

$

Balance at 1 January 2021

64,940,822

(2,351,873

)

(295,134

)

62,293,815

Changes in equity

Total comprehensive income

-

427,655

-

427,655

Balance at 31 December 2021

64,940,822

(1,924,218

)

(295,134

)

62,721,470

Changes in equity

Total comprehensive income

-

288,971

-

288,971

Balance at 31 December 2022

64,940,822

(1,635,247

)

(295,134

)

63,010,441

Cash flows from operating activities

Cash generated from operations

1

(986,798

)

3,720,007

Net cash from operating activities

(986,798

)

3,720,007

Cash flows from investing activities

Purchase of tangible fixed assets

(2,889

)

(2,563

)

Purchase of fixed asset investments

(2,371,268

)

-

Proceeds on sale of investments

6,545,507

6,817,629

Interest received

1,142,496

755,626

Dividends received

-

10,707

Net cash from investing activities

5,313,846

7,581,399

Cash flows from financing activities

Net movements in participating interest

(33,126

)

(237,208

)

Net cash from financing activities

(33,126

)

(237,208

)

Increase in cash and cash equivalents

4,293,922

11,064,198

Cash and cash equivalents at beginning of year

2

51,037,614

39,973,416

Cash and cash equivalents at end of year

2

55,331,536

51,037,614

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2022

2021

$

$

Profit before taxation

378,563

427,655

Depreciation charges

2,971

3,210

Loss on disposal of fixed assets

240,434

324,753

Loss on revaluation of fixed assets

1,334,792

394,833

Finance income

(1,142,496

)

(766,333

)

814,264

384,118

Decrease in trade and other debtors

11,336

321,959

(Decrease)/increase in trade and other creditors

(1,812,398

)

3,013,930

Cash generated from operations

(986,798

)

3,720,007

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2022

31.12.22

1.1.22

$

$

Cash and cash equivalents

55,331,536

51,037,614

Year ended 31 December 2021

31.12.21

1.1.21

$

$

Cash and cash equivalents

51,037,614

39,973,416

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.22

Cash flow

At 31.12.22

$

$

$

Net cash

Cash at bank

51,037,614

4,293,922

55,331,536

51,037,614

4,293,922

55,331,536

Liquid resources

Current asset investments

5,638,742

(2,068,673

)

3,570,069

5,638,742

(2,068,673

)

3,570,069

Total

56,676,356

2,225,249

58,901,605

1.	STATUTORY INFORMATION

Exness (UK) Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The Financial Statements of the company are presented in its functional currency, US dollar on the basis that this represents the currency of the primary economic environment in which it operates.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The principal activity of Exness (UK) Limited ("the Company") is that of the provision of investments services in relation to foreign exchange and contracts for difference ("CFDs").

The company's reporting currency is US Dollars $.

Significant judgements and estimates

In the application of the company's accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period. or in the period of the revision and future periods where the revision affects both current and future periods.

There are no significant judgements and estimates in the accounts for the year ended 31 December 2022.

Revenue recognition

Revenue represents profits and losses and commissions charged on foreign exchange trading, and CFDs (contracts for difference), together with gains or losses on financial instruments measured at fair value.

Tangible fixed assets

Tangible assets are stated at cost less accumulated depreciation. Cost includes the original purchase price and costs directly attributable to bringing the assets to working condition.

Depreciation is provided in order to write down the cost less estimated residual value of all tangible fixed assets over their estimated useful life, using the straight-line method. The rates of depreciation for each asset class are as follows:

Computer equipment - 20% on cost

Upon disposal of a tangible fixed asset, the gain or loss is calculated as the difference between the sales proceeds and the carrying value of the asset, and is recognised in the income statement.

Financial instruments

Financial instruments are recognised in the company's statement of financial position when the company becomes a party to the contractual provisions of the instrument.

Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price and are subsequently carried at amortised cost using the effective interest method. Financial assets that are receivable within one year are not amortised. At the end of each reporting period financial assets carried at amortised cost are remeasured to their fair value with the resulting gain or loss being recognised in the income statement immediately.

At the end of the reporting period financial assets are assessed for indicators of impairment. A provision for impairment of financial assets 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 contract.The amount of the provision is the difference between the carrying amount and the recoverable amount, being the present value of estimated future cash flows, discounted at the effective interest rate. The carrying amount of the asset is reduced through the use of an allowance account, and the amount of the loss is recognised in the income statement. Subsequent recoveries of amounts previously written off are recognised in profit or loss.

Basic financial liabilities, including trade and other payables, are initially recognised at transaction price. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payables are classified as current liabilities if the payment is due within one year.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements.

Deferred tax is recognised on all timing differences at the reporting date. 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 tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Foreign currencies

Transactions in foreign currencies are translated into USD at the spot exchange rate ruling at the date of transaction.

Assets and liabilities (monetary items) denominated in foreign currencies are retranslated into USD at the rates of exchange ruling at the statement of financial position date. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction.

Foreign exchange gains and losses resulting from the settlement of transactions and the retranslation at period-end exchange rates of monetary items denominated in foreign currency are recognised in the income statement.

Client money

The Company holds client money on behalf of clients in accordance with the Client Asset (CASS) rules of the Financial Conduct Authority. Such client monies and the corresponding amounts due to clients are not shown on the face of the Statement of Financial Position as these are segregated funds helds under client accounts. Funds held in client accounts are shown as a note to the accounts.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank, deposit held at call with banks and other short-term highly liquid investments with maturity of three months or less and bank overdrafts. Bank overdrafts, when applicable, are shown within borrowings in current liabilities.

Employee benefits and Pension cost

The company provides a range of benefits to employees, including paid holiday arrangements and a defined contribution pension scheme.

Short term benefit, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.

The company operates a defined contribution pension scheme, which is a pension scheme under which the company pays fixed contributions to a separate entity. Contributions payable to the company's pension scheme are charged to the income statement in the period to which they relate. Amounts not paid are shown in creditors in the statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

Investments

Investments in listed shares and securities including bonds are remeasured to market value at each year end date. Gains and losses on remeasurement are recognised in the profit or loss account for the period.

Investments in bonds maturing within one year are classified as current asset investments and those maturing after one year are classified as fixed asset investments.

Going concern

The directors have reasonable expectation that on the basis of the financial support from its owners, the company can continue to be in operational existence for the foreseeable future and to continue to adopt the going concern basis of accounting in preparing the financial statements.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Comparative Amounts

Comparative amounts have been restated to comply with current year's presentation.

3.

REVENUE

The revenue and profit before taxation are attributable to the one principal activity of the company.

An analysis of revenue by class of business is given below:

2022

2021

$

$

Trading revenue

3,409,209

1,722,709

Consulting revenue

24,000

24,000

3,433,209

1,746,709

4.	EMPLOYEES AND DIRECTORS

2022

2021

$

$

Wages and salaries

1,276,299

858,308

Social security costs

200,078

99,786

Other pension costs

104,173

60,726

1,580,550

1,018,820

The average number of employees during the year was as follows:

2022

2021

Management, Finance and administrative

8

4

5.	DIRECTORS' EMOLUMENTS

2022

2021

$

$

Directors' remuneration

349,985

380,815

Information regarding the highest paid director is as follows:

2022

2021

$

$

Emoluments etc

349,985

380,815

6.	PROFIT BEFORE TAXATION

The operating profit is stated after charging:

2022

2021

$

Depreciation- owned assets

2,971

3,566

Loss on disposal of fixed assets

240,434

324,753

Foreign exchange differences

140,026

21,461

7.	AUDITORS' REMUNERATION

2022

2021

$

$

Fees payable to the company's auditors for the audit of the company's financial statements

9,271

8,250

8.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2022

2021

$

$

Current tax:

UK corporation tax

89,592

-

Tax on profit

89,592

-

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2022

2021

$

$

Profit before tax

378,563

427,655

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

71,927

81,254

Effects of:

Expenses not deductible for tax purposes

249,498

44,955

Income not taxable for tax purposes

-

(1,477

)

Capital allowances in excess of depreciation

(969

)

(877

)

carried forward

Tax losses utilised

(230,864

)

(123,855

)

Total tax charge

89,592

-

Tax effects relating to effects of other comprehensive income

There were no tax effects for the year ended 31 December 2022.

2021

Gross

Tax

Net

$

$

$

Foreign Exchange Translation reserve

9.	EXPENSE BY NATURE

Description

Notes

2022$

2021$

Staff costs

4

1,580,550

1,018,820

Legal and professional

183,610

120,976

Rent

116,580

37,059

IT expenses

143,836

49,851

Travel expenses

79,177

26,919

Insurance

8,484

7,043

Accountancy fees

2,788

4,245

Advertising

10,735

-

Admin and handling fees

58,332

17,653

License and membership fees

15,268

10,581

Bank charges

13,599

32,988

Staff training and welfare

5,400

3,045

Office expenses

2,204

2,174

Auditors remuneration for audit services

9,271

8,250

Entertainment expenses

9,085

1,171

Foreign exchange losses

140,026

21,461

(Profit)/loss on sale of fixed asset investment

240,434

324,753

Amortisation- Computer software

-

-

Depreciation- Computer equipment

6

2,971

3,566

Total

2,622,350

1,690,555