Hottinger Private Office Limited 07078765 false 2016-01-01 2016-12-31 2016-12-31 The principal activity of the company is the provision of wealth advisory services. 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Registration number: 07078765

Hottinger Private Office Limited

(formerly Archimedes Private Office (UK) Limited)

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2016

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 6

Consolidated Profit and Loss Account

7

Consolidated Balance Sheet

8

Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Statement of Changes in Equity

11

Consolidated Statement of Cash Flows

12

Notes to the Financial Statements

13 to 25

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Company Information

Directors

M J Robertson

G W D Heseltine

Registered office

4th Floor
27 Queen Anne's Gate
London
SW1H 9BU

Bankers

Natwest
25 High Street
Colchester
Essex
CO1 1DG

Auditors

Dixon Wilson
22 Chancery Lane
London
WC2A 1LS

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Strategic Report for the Year Ended 31 December 2016

The directors present their strategic report for the year ended 31 December 2016.

Fair review of the business

For Hottinger Private Office Ltd 2016 was a similar year to 2015 in terms of business, however in 2017 the company will see a significant increase in the number of its clients and income as client mandates are transferred to the company, and it is anticipated that some new client families will be onboarded.

For Hottinger Investment Management Ltd 2016 was a year of transition with the merger with Hottinger Private Office being completed in July 2016. There were a number of changes in personnel unrelated to the merger, due to individual changes in circumstances, leading to a reduction in payroll costs.

In 2016 there was a notable decline in special mandate income, due to a mixture of bankruptcy, death and structural changes, all outside of the company's control. Once FCA approval of the merger was granted in July 2016, the synergies proposed during the merger discussions were enacted, leading to a marked increase in the introduction of new clients and an injection of new income. As a result, there was an increase in management fees in H2 2016.

2016 also saw a refurbishment of the London Office, with a significant upgrade and re-modelling of the offices, enhancing the quality and increasing the efficiency of the floor space, sharing office space and occupancy costs with other group companies. The company is in a good position to benefit from the cost reductions and the new income growth, and a return to profitability is expected in 2017.

Principal risks and uncertainties

The principle risks to Hottinger Private Office Ltd are:
- fall in the markets could result in a reduction in the value of funds under advice
- The loss of any existing client policies
- The non-payment of fees owed to the company

The principal risks to Hottinger Investment Management Ltd are:
- A fall in markets could result in a reduction in the value of funds under management, on which the company's income is based.
- Any failures in operating controls could lead to reputational damage, withdrawal of funds, compensation, penalties and potentially the company's authorisation to carry on regulated activities being revoked.

Approved by the Board on 6 December 2017 and signed on its behalf by:

.........................................
M J Robertson
Director

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Directors' Report for the Year Ended 31 December 2016

The directors present their report and the for the year ended 31 December 2016.

The company changed name from Archimedes Private Office (UK) Limited to Hottinger Private Office Limited on 19 September 2016.

Director of the group

The director who held office during the year was as follows:

M J Robertson

The following director was appointed after the year end:

G W D Heseltine (appointed 9 January 2017)

Financial instruments

The company's principal financial instruments consist of financial assets and liabilities such as cash at bank, trade debtors and trade creditors. These arise directly from its operations.

Price risk, credit risk, liquidity risk and cash flow risk

Price risk
Price risk arises on financial instruments because of change in, for example, commodity prices or equity prices. The group does not currently have any direct risk of price exposure.

Liquidity risk
The group manages its cash to maximise interest income whilst maintaining sufficient liquid resources to meet the operating needs of its business.

Interest rate risk
The group makes use of its business reserve account to minimise short to medium term cash flow interest rate risk.

Credit risk
Investments of cash surpluses are made through reputable banks with suitably high credit ratings. Receivables are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Foreign currency risk
The principal foreign currency exposure arises from revenues in foreign currencies.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved by the Board on 6 December 2017 and signed on its behalf by:

.........................................
M J Robertson
Director

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Independent Auditor's Report to the Members of Hottinger Private Office Limited

We have audited the financial statements of Hottinger Private Office Limited for the year ended 31 December 2016, set out on pages 7 to 25. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (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.

Respective responsibilities of directors and auditor

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. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board’s (APB’s) Ethical Standards for Auditors to the financial statements.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company’s circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on the financial statements

In our opinion the financial statements:

give a true and fair view of the state of the group's and the company's affairs as at 31 December 2016 and of the group's loss 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.

Other Matter

The corresponding figures are unaudited.

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Independent Auditor's Report to the Members of Hottinger Private Office Limited

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 by the company, or returns adequate for our audit have not been received from branches not visited by us; or

the company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

......................................
Steven Wakefield (Senior Statutory Auditor)
For and on behalf of Dixon Wilson, Statutory Auditor

22 Chancery Lane
London
WC2A 1LS

7 December 2017

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Consolidated Profit and Loss Account for the Year Ended 31 December 2016

Note

2016
£

2015
£

Turnover

3

1,213,246

349,692

Administrative expenses

 

(1,348,062)

(372,572)

Other operating income

7,115

-

Operating loss

4

(127,701)

(22,880)

Other interest receivable and similar income

1,724

-

Loss before tax

 

(125,977)

(22,880)

Taxation

8

9,606

(7,285)

Loss for the financial year and total comprehensive loss

 

(116,371)

(30,165)

Attributable to:

 

Owners of the company

 

(95,146)

(30,165)

Minority interests

 

(21,225)

-

 

(116,371)

(30,165)

The group has no recognised gains or losses for the year other than the results above.

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

(Registration number: 07078765)
Consolidated Balance Sheet as at 31 December 2016

Note

2016
£

2015
£

Fixed assets

 

Intangible assets

9

719,146

-

Tangible assets

10

23,029

19,071

 

742,175

19,071

Current assets

 

Debtors

13

664,524

46,059

Cash at bank and in hand

 

729,361

1,071,788

 

1,393,885

1,117,847

Creditors: Amounts falling due within one year

15

(464,157)

(57,817)

Net current assets

 

929,728

1,060,030

Total assets less current liabilities

 

1,671,903

1,079,101

Provisions for liabilities

(2,525)

-

Net assets

 

1,669,378

1,079,101

Capital and reserves

 

Called up share capital

16

1,000

1,000

Other capital contributions

17

1,478,400

1,034,880

Profit and loss account

 

(51,925)

43,221

Equity attributable to owners of the company

 

1,427,475

1,079,101

Minority interests

 

241,903

-

Total equity

 

1,669,378

1,079,101

Approved and authorised by the Board on 6 December 2017 and signed on its behalf by:

.........................................

M J Robertson

Director

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

(Registration number: 07078765)
Balance Sheet as at 31 December 2016

Note

2016
£

2015
£

Fixed assets

 

Tangible assets

10

13,290

19,071

Investments

11

1,762,474

-

 

1,775,764

19,071

Current assets

 

Debtors

13

99,974

46,059

Cash at bank and in hand

 

16,588

1,071,788

 

116,562

1,117,847

Creditors: Amounts falling due within one year

15

(377,424)

(57,817)

Net current (liabilities)/assets

 

(260,862)

1,060,030

Total assets less current liabilities

 

1,514,902

1,079,101

Provisions for liabilities

(2,525)

-

Net assets

 

1,512,377

1,079,101

Capital and reserves

 

Called up share capital

1,000

1,000

Other capital contributions

1,478,400

1,034,880

Profit and loss account

32,977

43,221

Total equity

 

1,512,377

1,079,101

The company made a loss after tax for the financial year of £10,244 (2015 - loss of £30,165).

Approved and authorised by the Board on 6 December 2017 and signed on its behalf by:
 

.........................................

M J Robertson

Director

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2016
Equity attributable to the parent company

Share capital
£

Other capital contributions
£

Profit and loss account
£

Total
£

Non- controlling interests
£

Total equity
£

At 1 January 2016

1,000

1,034,880

43,221

1,079,101

-

1,079,101

Loss for the year

-

-

(95,146)

(95,146)

(21,225)

(116,371)

Total comprehensive income

-

-

(95,146)

(95,146)

(21,225)

(116,371)

Capital contributed

-

443,520

-

443,520

-

443,520

NCI arising on acquisition of subsidiary

-

-

-

-

263,128

263,128

At 31 December 2016

1,000

1,478,400

(51,925)

1,427,475

241,903

1,669,378

Share capital
£

Other capital contributions
£

Profit and loss account
£

Total
£

Non- controlling interests
£

Total equity
£

At 1 January 2015

1,000

-

73,386

74,386

-

74,386

Loss for the year

-

-

(30,165)

(30,165)

-

(30,165)

Total comprehensive income

-

-

(30,165)

(30,165)

-

(30,165)

Capital contributed

-

1,034,880

-

1,034,880

-

1,034,880

At 31 December 2015

1,000

1,034,880

43,221

1,079,101

-

1,079,101

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Statement of Changes in Equity for the Year Ended 31 December 2016

Share capital
£

Other capital contributions
£

Profit and loss account
£

Total
£

At 1 January 2016

1,000

1,034,880

43,221

1,079,101

Loss for the year

-

-

(10,244)

(10,244)

Total comprehensive income

-

-

(10,244)

(10,244)

Capital contributions received

-

443,520

-

443,520

At 31 December 2016

1,000

1,478,400

32,977

1,512,377

Share capital
£

Other capital contributions
£

Profit and loss account
£

Total
£

At 1 January 2015

1,000

-

73,386

74,386

Loss for the year

-

-

(30,165)

(30,165)

Total comprehensive income

-

-

(30,165)

(30,165)

Capital contributions received

-

1,034,880

-

1,034,880

At 31 December 2015

1,000

1,034,880

43,221

1,079,101

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Consolidated Statement of Cash Flows for the Year Ended 31 December 2016

Note

2016
£

2015
£

Cash flows from operating activities

Loss for the year

 

(116,371)

(30,165)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

12,212

8,981

Finance income

(1,724)

-

Corporation tax expense

8

(9,606)

7,285

 

(115,489)

(13,899)

Working capital adjustments

 

Increase in trade debtors

13

(249,385)

(11,965)

Increase in trade creditors

15

74,874

45,092

Cash generated from operations

 

(290,000)

19,228

Income taxes paid

8

(7,292)

-

Net cash flow from operating activities

 

(297,292)

19,228

Cash flows from investing activities

 

Interest received

1,724

-

Acquisitions of tangible assets

(15,067)

(6,712)

Acquisition of intangible assets

9

(9,188)

-

Advances of loans, classified as investing activities

 

(95,000)

-

Net cash movement from acquisition of subsidiary

 

(437,124)

-

Net cash flows from investing activities

 

(554,655)

(6,712)

Cash flows from financing activities

 

Proceeds from other borrowing draw downs

 

66,000

-

Capital contributions received, other than issues of share capital

 

443,520

1,034,880

Net cash flows from financing activities

 

509,520

1,034,880

Net (decrease)/increase in cash and cash equivalents

 

(342,427)

1,047,396

Cash and cash equivalents at 1 January

 

1,071,788

24,392

Cash and cash equivalents at 31 December

 

729,361

1,071,788

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Notes to the Financial Statements for the Year Ended 31 December 2016

1

General information

The company is a private company limited by share capital incorporated in England.

The address of its registered office is:
4th Floor
27 Queen Anne's Gate
London
SW1H 9BU
United Kingdom

2

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'. The date of transition to FRS102 is 1 January 2015.

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.

Summary of disclosure exemptions

The company has taken advantage of the exemption conferred by s408 of the Companies Act 2006 not to disclose its individual profit and loss account..

Going concern

The financial statements have been prepared on a going concern basis. The directors are satisfied that the company's shareholders will provide the company and group with necessary support to enable it to continue trading for the foreseeable future.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2016.

No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a loss after tax for the financial year of £10,244 (2015 - loss of £30,165).

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Notes to the Financial Statements for the Year Ended 31 December 2016

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of financial services and related commission. Turnover is shown net of value added tax and discounts.

Turnover is recognised in the period in which services are provided.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Notes to the Financial Statements for the Year Ended 31 December 2016

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements and on unused tax losses or tax credits in the group. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture, Fixtures & Fittings

25% straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill on investment in Hottinger Investment Management

20% per annum, commencing 2017

Other intangible assets

33% per annum

Investments

Investments in the subsidiary in the company's individual financial statements are measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Notes to the Financial Statements for the Year Ended 31 December 2016

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the debtors.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Borrowings from related parties are interest free, unsecured and payable on demand. They are measured at the transaction price.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Other capital contributions received without any obligation to make repayment are also classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

3

Turnover

The analysis of the group's revenue for the year from continuing operations is as follows:

2016
£

2015
£

Rendering of services - investment management, brokerage and related advisory and support services

1,213,246

349,692

4

Operating loss

Arrived at after charging/(crediting)

2016
£

2015
£

Depreciation expense

12,212

8,981

Foreign exchange gains

(822)

-

Operating lease expense - property

166,615

78,887

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Notes to the Financial Statements for the Year Ended 31 December 2016

5

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2016
£

2015
£

Wages and salaries

703,158

136,858

Social security costs

60,674

7,556

Other short-term employee benefits

10,043

-

Pension costs, defined contribution scheme

17,248

-

791,123

144,414

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2016
No.

2015
No.

Administration and support

5

1

Senior management

5

2

10

3

6

Directors' remuneration

The directors' remuneration for the year was as follows:

2016
£

2015
£

Remuneration

146,667

43,371

Compensation for loss of office

16,250

-

162,917

43,371

7

Auditors' remuneration

2016
£

2015
£

Audit of these financial statements

4,500

-

Audit of the financial statements of subsidiaries of the company pursuant to legislation

12,000

-

16,500

-

Other fees to auditors

All other non-audit services

5,000

-


 

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Notes to the Financial Statements for the Year Ended 31 December 2016

8

Taxation

Tax charged/(credited) in the income statement

2016
£

2015
£

Current taxation

UK corporation tax

7,472

7,285

Deferred taxation

Arising from origination and reversal of timing differences

(17,078)

-

Tax (receipt)/expense in the income statement

(9,606)

7,285

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2015 - the same as the standard rate of corporation tax in the UK) of 20% (2015 - 20%).

The differences are reconciled below:

2016
£

2015
£

Loss before tax

(125,977)

(22,880)

Corporation tax at standard rate

(25,195)

(4,576)

Effect of expense not deductible in determining taxable profit (tax loss)

7,682

5,061

UK deferred tax expense relating to changes in tax rates or laws

7,907

-

Tax increase from other short-term timing differences

-

6,800

Total tax (credit)/charge

(9,606)

7,285

Deferred tax

Group

Deferred tax assets and liabilities

2016

Asset
£

Liability
£

Accelerated tax depreciation

2,332

2,525

Tax losses

111,906

-

 

114,238

2,525

The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £35,000. The reversal reflects the anticipated realisation of deferred tax assets by Hottinger Investment Management in respect of losses brought forward

Company

Deferred tax assets and liabilities

2016

Liability
£

Accelerated tax depreciation

2,525

   
 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Notes to the Financial Statements for the Year Ended 31 December 2016

9

Intangible assets

Group

Goodwill
 £

Website development costs
 £

Total
£

Cost or valuation

Additions acquired separately

-

9,188

9,188

Acquired through business combinations

709,958

-

709,958

At 31 December 2016

709,958

9,188

719,146

Amortisation

At 31 December 2016

-

-

-

Carrying amount

At 31 December 2016

709,958

9,188

719,146

10

Tangible assets

Group

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 January 2016

36,342

36,342

Additions

15,067

15,067

Acquired through business combinations

1,103

1,103

At 31 December 2016

52,512

52,512

Depreciation

At 1 January 2016

17,271

17,271

Charge for the year

12,212

12,212

At 31 December 2016

29,483

29,483

Carrying amount

At 31 December 2016

23,029

23,029

At 31 December 2015

19,071

19,071

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Notes to the Financial Statements for the Year Ended 31 December 2016

Company

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 January 2016

36,342

36,342

Additions

4,406

4,406

At 31 December 2016

40,748

40,748

Depreciation

At 1 January 2016

17,271

17,271

Charge for the year

10,187

10,187

At 31 December 2016

27,458

27,458

Carrying amount

At 31 December 2016

13,290

13,290

At 31 December 2015

19,071

19,071

11

Investments

Company

Subsidiaries

£

Cost

Additions

1,762,474

Carrying amount

At 31 December 2016

1,762,474

Details of subsidiary undertakings

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2016

2015

Hottinger Investment Management Limited

27 Queen Anne's Gate, London, SW1H 9BU

Ordinary

80%

0%

         

Hottinger Group Limited

27 Queen Anne's Gate, London, SW1H, 9BU

Ordinary

100%

0%

         

The principal activity of Hottinger Investment Management Limited is investment management. The company acquired 80% of the shares in Hottinger Investment Management during 2016.
Hottinger Group Limited is a dormant entity, wholly owned by Hottinger Investment Management Limited

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Notes to the Financial Statements for the Year Ended 31 December 2016

12

Business combinations

On 27 July 2016, Hottinger Private Office Limited acquired 80% of the issued share capital of Hottinger Investment Management Limited (a provider of portfolio management advisory and discretionary services), obtaining control.

Hottinger Investment Management Limited contributed £446,643 revenue and £(106,128) to the group's profit for the period between the date of acquisition and the balance sheet date.

The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below:
 

£

Assets and liabilities acquired

Financial assets

1,393,385

Tangible assets

1,104

Financial liabilities

(78,845)

Total identifiable assets

1,315,644

Less: minority interest at acquisition

(263,128)

Goodwill

709,958

Total consideration

1,762,474

Satisfied by:

Cash

1,762,474

Cash flow analysis:

Cash consideration

1,762,474

Less: cash and cash equivalent balances acquired

(1,138,910)

Net cash outflow arising from acquisition

623,564

£186,440 of cash outflows from the acquisition are due in a later period.

The useful life of goodwill is 5 years, and will be amortised starting in 2017.

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Notes to the Financial Statements for the Year Ended 31 December 2016

13

Debtors

   

Group

Company

Note

2016
£

2015
£

2016
£

2015
£

Trade debtors

 

259,531

33,309

-

33,309

Amounts owed by related parties

19

137,830

-

42,590

-

Other debtors

 

50,481

12,750

23,384

12,750

Prepayments

 

68,382

-

-

-

Accrued income

 

34,062

-

34,000

-

Deferred tax assets

8

114,238

-

-

-

Total current trade and other debtors

 

664,524

46,059

99,974

46,059

14

Cash and cash equivalents

 

Group

Company

2016
£

2015
£

2016
£

2015
£

Cash at bank

729,361

1,071,788

16,588

1,071,788

15

Creditors

   

Group

Company

Note

2016
£

2015
£

2016
£

2015
£

Due within one year

 

Trade creditors

 

44,030

5,049

7,854

5,049

Amounts due to related parties

19

113,090

29,264

113,090

29,264

Social security and other taxes

 

47,275

4,377

24,417

4,377

Other payables

 

192,455

3,784

192,454

3,784

Accrued expenses

 

59,842

8,058

32,144

8,058

Corporation tax liability

8

7,465

7,285

7,465

7,285

 

464,157

57,817

377,424

57,817

16

Share capital

Allotted, called up and fully paid shares

 

2016

2015

 

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

         
 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Notes to the Financial Statements for the Year Ended 31 December 2016

17

Reserves

Other capital contributions

Other capital contributions are amounts provided to the company by its parent entity without a formal issue of shares but where the company has no obligation to make repayment. The amounts were contributed to enable the company to purchase the subsidiary.

18

Obligations under leases

Group

Operating leases

The total of future minimum lease payments is as follows:

2016
£

2015
£

Not later than one year

151,985

61,688

Later than one year and not later than five years

140,841

80,159

292,826

141,847

Company

Operating leases

The total of future minimum lease payments is as follows:

2016
£

2015
£

Not later than one year

63,985

61,688

Later than one year and not later than five years

16,174

80,159

80,159

141,847

19

Related party transactions

Transactions between wholly owned group members are not disclosed unless considered material to an understanding of the financial statements.

Key management personnel

Key management are the directors. Remuneration is shown in note 6

Summary of transactions with parent

In December 2016 a loan of £95,000 was advanced by Hottinger Investment Management Limited to the ultimate parent, ArchCo Limited. The loan is interest free, unsecured and falls due in December 2017.

During the period Hottinger Private Office Limited received contributions of £443,520 (2015 - £1,034,880) from ArchCo Limited. Hottinger Private Office does not have any obligation to repay these contributions, which have been classified as equity. The contributions were not a formal issue of shares and do not carry any voting, dividend, or specific redemption rights.

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Notes to the Financial Statements for the Year Ended 31 December 2016

Summary of transactions with entities under common control

Turnover includes £600,000 (2015 - £207,000) in respect of investment services provided by Hottinger Private Office Limited to an entity under common control of ArchCo Limited.

Summary of transactions with other related parties

An investor in ArchCo Limited has lent Hottinger Private Office Limited £66,000 (2015 - £nil) interest free, unsecured and payable on demand.

20

Financial instruments

Categorisation of principal financial instruments

2016
£

2015
£

Group

Bank balances

729,361

1,071,788

Financial assets that are debt instruments measured at amortised cost

95,000

-

Financial liabilities measured at amortised cost

(252,440)

-

2016
£

2015
£

Company

Bank accounts

16,588

1,071,788

Financial assets that are equity instruments measured at cost less impairment

1,762,474

-

Financial liabilities measured at amortised cost

(252,440)

-

Financial liabilities measured at amortised cost are short term liabilities, being borrowings from related parties. They are unsecured and interest free.
Equity instruments are the investment in the company's subsidiary.

21

Parent and ultimate parent undertaking

The company's immediate and ultimate parent is ArchCo Limited, incorporated in Malta.

ArchCo Limited does not prepare consolidated financial statements.

 

 

Hottinger Private Office Limited
(formerly Archimedes Private Office (UK) Limited)

Notes to the Financial Statements for the Year Ended 31 December 2016

22

Transition to FRS 102 and prior period corrections

FRS102 transition
£34,000 of income that had been recognised in 2015 has been restated as part of an earlier period. This error had not required restating under previous UK GAAP as it was not fundamental. The transitional adjustments are the same for the company and the group financial statements.

Other prior period restatement
Contributions of £1,034,880 received from the parent entity in December 2015 have been reclassified from current liabilities to reserves. The company does not have an obligation to make repayment.

The line items restated, and changes in total equity, are shown below.

Balance Sheet at 1 January 2015
 

As originally reported
£

Remeasurement
£

As restated
£

Debtors

94

34,000

34,094

Profit and loss account

39,386

34,000

73,386

Total equity

40,386

34,000

74,386

Balance Sheet at 31 December 2015
 

As originally reported
£

Reclassification
£

As restated
£

Creditors: Amounts falling due within one year

1,092,697

(1,034,880)

57,817

Other capital contributions

-

1,034,880

1,034,880

Total equity

44,221

1,034,880

1,079,101

Profit and Loss Account for the year ended 31 December 2015
 

As originally reported
£

Remeasurement
£

As restated
£

Turnover

383,692

(34,000)

349,692

Profit/(loss) for the financial year

3,835

(34,000)

(30,165)