ACCOUNTS - Final Accounts
ACCOUNTS - Final Accounts
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Registered number: 10600192 (England and Wales)
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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COMPANY INFORMATION
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CONTENTS
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GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The Director presents the strategic report and consolidated financial statements of Fintech Partners Ltd ("the Company") and its subsidiary ("the Group") for the year ended 31 December 2023.
The Group is a wholly owned subsidiary of Financial Technology Partners LP (“FTP LP”). FTP LP is a limited partnership formed and domiciled in the United States of America (the “USA”).
The principal activity of the Group is to provide investment banking consulting services to its parent entity FTP LP and to its affiliate entity FTP Securities LLC ("FTP Securities").
FTP LP is a global investment banking advisory firm focused exclusively on the financial technology sector. FTP LP, together with its subsidiary FTP Securities, provides investment banking services to clients in connection with mergers and acquisitions, and capital raising advisory services pertaining to equity and debt including private placements. The Group is compensated on a cost-plus basis for its service.
The Director has reviewed the Group’s financial position at the year-end. The Group had liquid assets of £7.2 million (December 2022: £6.7 million) and current liabilities of £2.3 million (as restated December 2022: £3.0 million). The Director determined that the Group had sufficient financial resources to meet its liabilities as they fall due.
The Director has the responsibility to identify risks and uncertainties that might adversely affect the Group's business. The Director has identified the following primary risks and taken steps to mitigate these risks:
Failure to maintain sufficient employees at appropriate levels of seniority and experience Having sufficient employees at appropriate levels to undertake projects is critical to the continued success of the Group. The Group aims to hire and retain the most talented of people by providing competitive compensation and benefits packages, creating a sense of community across the group, and taking other steps to empower every employee to meet their full potential. The Director monitors people metrics, including retention statistics to identify any trends or issues. Loss of IT systems and data Implementing and maintaining robust IT infrastructure which incorporates effective security, data storage, and network is critical to the continued success of the Group. The Group has implemented appropriate disaster recovery and business continuity plans. Additionally, confidentiality of data is taken very seriously. Information security controls and procedures are overseen by senior executives. Compliance risks The Group operates in a highly regulated industry. The Company is an entity registered with the Financial Conduct Authority (“FCA”), with certain employees of the Group being registered representatives of an FCA registered entity. Additionally, FTP Securities, to which the Group provides services, is a regulated entity in the USA. In providing services to FTP Securities, the employees of the Group are required to comply with certain rules and regulations of the security industry in the USA. The Group provides various training and education to ensure that its employees understand and adhere to applicable rules and regulations.
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GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Due to the accounting reference date change in 2022, the Group’s operating results discussed in this section pertain to the 12-month period ended 31 December 2023 and the 10-month period ended 31 December 2022.
The Company reported turnover of £11.9 million (10 months ended 31 December 2022: £17.4 million) and operating profit of £0.8 million (10 months ended 31 December 2022: £0.8 million). The decrease in turnover was driven by lower compensation and benefits costs for the 12-month period ended 31 December 2023 compared to the 10-month period ended 31 December 2022 driven by a decrease in headcount. The operating profit margin remained consistent at 5% from 2022 to 2023.
The Director monitors several Key Performance Indicators (KPls). Because the Group’s turnover is calculated on a cost-plus basis, the KPIs monitored by the Director are primarily related to costs. In addition, the Director monitors KPIs related to employee retention. The KPls monitored by the Director include the following:
• Compensation and benefits cost • Travel and entertainment cost • Staff compensation market index • Staff turnover The Director is pleased to report that the Group’s performance with respect to all KPls monitored were satisfactory during the period.
This report was approved by the board and signed on its behalf.
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DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
The Director presents his report and the financial statements for the year ended 31 December 2023.
In accordance with s414c (II) of the Companies Act 2006, certain information required to be included in the Director's Report has otherwise been included in the Strategic Report.
The Director who served during the year was:
Due to the accounting reference date change in 2022, the Group’s operating results discussed in this section pertain to the 12-month period ended 31 December 2023 and the 10-month period ended 31 December 2022.
The profit for the year, after taxation, amounted to £427,576 (Period ended 31 December 2022 - £540,707).
The Director is responsible for preparing the Group Strategic Report, the Director's Report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Director is required to:
∙select suitable accounting policies for the Group's financial statements 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 Group will continue in business.
The Director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
In July 2024, the Group entered into a sublease contract for its long term leasehold property for the amount of £895,455 per annum. Given the sublease conditions were not present at the balance sheet date, a provision has been recorded for the onerous lease (as detailed in note 18) and this is deemed to be a non-adjusting event.
There were no adjusting or any other non-adjusting events occuring between the end of the reporting period and the date these financial statements were approved.
This report was approved by the board and signed on its behalf.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FINTECH PARTNERS LTD
We have audited the financial statements of Fintech Partners Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, 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).
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the Director's 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 Group's or the parent 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 Director with respect to going concern are described in the relevant sections of this report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FINTECH PARTNERS LTD (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The Director is responsible for the other information contained within the Annual Report. 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. 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 course of 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
In the light of the 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 Group Strategic Report or the Director's Report.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FINTECH PARTNERS LTD (CONTINUED)
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 Auditors' 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 Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙the responsible individual 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;
∙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 and taxation 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
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
∙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 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:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙enquiring of management as to actual and potential litigation and claims; and
∙reviewing correspondence with HMRC.
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF FINTECH PARTNERS LTD (CONTINUED)
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 deliberate concealment or collusion.
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 Auditors' 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 Auditors' 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
Chartered Accountatns and Statutory Auditors
Birchin Court
5th Floor
19-25 Birchin Lane
London
EC3V 9DU
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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 32 form part of these financial statements.
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COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023
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COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 32 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
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CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Fintech Partners Ltd is a private company limited by shares incorporated in the United Kingdom and registered in England and Wales. The registered offices is 3rd Floor 1 Ashley Road, Altrincham, Cheshire, United Kingdom, WA14 2DT.
The principal activity of the Group is to provide investment banking consulting services to its parent entity FTP LP and to its affiliate entity FTP Securities.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with 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 Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
On 28 November 2023, the accounting reference date was shortened from 28 February 2023 to 31
December 2022 in order to align with the wider group. Therefore, the prior reporting period is a short 10 month period and the financial statements are not entirely comparable for this reason.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Group is in a net asset position primarily supported by amounts owed by group undertakings. Despite this position, due to the Group's business model being solely a transfer pricing agreement with the parent company, FTP LP, it is reliant on the continued support of that company in order to remain a going concern.
The Group has received written confirmation from the parent company that it will continue to provide financial support to the Group for a period of at least 12 months from the date of signing these financial statements. Furthermore, the director has assessed the ability of the parent company to provide the support based upon a review of the cash flow forecasts and has concluded that the parent will have sufficient working capital to provide the necessary support. For this reason, the director continues to adopt the going concern basis in preparing the financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
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:
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 profit or loss.
Depreciation rates were incorrectly stated in the prior period and have been revised for the current year.
Debtors due after more than one year are measured initially at transaction price and then subsequently measured at amortised cost.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
Short term creditors are measured at the transaction price. Amounts owed to group undertakings
are intercompany loans measured at cost. These loans are unsecured, interest free and repayable on demand, other than that disclosed under note 14.
Functional and presentation currency
The Group's functional and presentational currency is GBP. Transactions and balances Foreign currency transactions are transalated into the functional currency ausing the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated usting the exchange rate at the date of the transactions and non-monetary items measured at fair value are measured using the exchnage rate when fair value was determined. Foreign echange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit and loss. On consolidation, the results of overseas operations or domestic operations with a non-GBP functional currency are translated into Sterling, at rated approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting place. Exchange differences arisings on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
2.Accounting policies (continued)
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash lows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
The estimates and assumptions that have a significant risk of causing material adjustment to the carrying amounts of assets and liabilities are addressed below. Depreciation and residual value of tangible fixed assets The director has reviewed the asset lives and associated residual values of all fixed asset classes, and has concluded that asset lives and residual values are appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, management consider factors such as technological innovation, product life cycles and maintenance programs. Dilapidation provision The director has considered the potential obligations arising as a result of the terms of the lease agreement. The provision is an estimate of the expected future cost of restoring its lease premises, based on management’s judgment of previous properties and the current state of the property. Onerous lease provisions The director has considered the potential unavoidable costs of a lease to exceed the economic benefit expected to be received from it. A provision is recognised at the present value of the expected obligations under the lease at a discount rate of 6.8%.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
9.Taxation (continued)
During the year, the main rate of UK corporation tax changed from 19% to 25% with effect from 1 April 2023.
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the year was £
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
Subsidiary undertaking
The following was a subsidiary undertaking of the Company:
The capital and reserves of the subsidiary at 31 December 2023 totalled £297.
In accordance with Section 479A of the Companies Act 2006, ADV LendCo UK Limited was entitled to exemption from an audit of their individual financial statements. This guarantee is made by Fintech Partners Ltd at the date of approval of these financial statements in relation to the year ended 31 December 2023.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
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