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Registration number: 07078765

Hottinger Private Office Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 December 2017

 

Hottinger Private Office Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Consolidated Profit and Loss Account

8

Consolidated Balance Sheet

9

Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Statement of Changes in Equity

12

Consolidated Statement of Cash Flows

13

Notes to the Financial Statements

14 to 28

 

Hottinger Private Office 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

Strategic Report for the Year Ended 31 December 2017

The directors present their strategic report for the year ended 31 December 2017.

Fair review of the business

Following the merger with Archimedes Family Office, which completed in July 2016 to form the Hottinger Group, 2017 saw Hottinger Private Office and Hottinger Investment Management benefit from the proposed synergies as clients were introduced to the full services of the Group.

Hottinger Private Office Limited saw growth across the board, with mandated and advisory fee income driving profitability. The Company benefited from the transfer of the Swiss mandated fees into the UK operations, in addition to the new business generated from Group introductions.

Hottinger Investment Management saw gross income improve over the year as assets under management increased from both Group introductions and new business in core areas such as discretionary management.

2017 also saw Group efficiencies on the cost side as Group entities moved into the office thereby creating more efficient use of space and reducing building costs and office administration for the company. New roles and responsibilities also saw major savings in personnel costs and early retirement plans coinciding with the introduction of new, young team members has brought a new vibrancy to the company.

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 28 September 2018 and signed on its behalf by:

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

 

Hottinger Private Office Limited

Directors' Report for the Year Ended 31 December 2017

The directors present their report and the for the year ended 31 December 2017.

Directors of the group

The directors who held office during the year were as follows:

M J Robertson

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.

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 28 September 2018 and signed on its behalf by:

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

 

Hottinger Private Office 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

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

Opinion

We have audited the financial statements of Hottinger Private Office Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2017, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2017 and of the group's profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the group 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

the directors’ use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group’s or the parent company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

 

Hottinger Private Office Limited

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the group and the parent 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 parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group’s and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

 

Hottinger Private Office Limited

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 auditor's report.

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 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.

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

22 Chancery Lane
London
WC2A 1LS

28 September 2018

 

Hottinger Private Office Limited

Consolidated Profit and Loss Account for the Year Ended 31 December 2017

Note

2017
£

2016
£

Turnover

3

2,365,856

1,213,246

Administrative expenses

 

(1,989,422)

(1,348,062)

Other operating income

50,818

7,115

Operating profit/(loss)

4

427,252

(127,701)

Other interest receivable and similar income

735

1,724

Profit/(loss) before tax

 

427,987

(125,977)

Taxation

8

(98,445)

9,606

Profit/(loss) for the financial year and total comprehensive income / (loss)

 

329,542

(116,371)

Attributable to:

 

Owners of the company

 

320,536

(95,146)

Minority interests

 

9,006

(21,225)

 

329,542

(116,371)

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

 

Hottinger Private Office Limited

(Registration number: 07078765)
Consolidated Balance Sheet as at 31 December 2017

Note

2017
£

2016
£

Fixed assets

 

Intangible assets

9

638,962

719,146

Tangible assets

10

15,626

23,029

 

654,588

742,175

Current assets

 

Debtors

12

1,842,810

664,524

Cash at bank and in hand

13

663,869

729,361

 

2,506,679

1,393,885

Creditors: Amounts falling due within one year

14

(1,161,448)

(464,157)

Net current assets

 

1,345,231

929,728

Total assets less current liabilities

 

1,999,819

1,671,903

Provisions for liabilities

(899)

(2,525)

Net assets

 

1,998,920

1,669,378

Capital and reserves

 

Called up share capital

15

1,000

1,000

Other capital contributions

16

1,478,400

1,478,400

Profit and loss account

 

268,611

(51,925)

Equity attributable to owners of the company

 

1,748,011

1,427,475

Minority interests

 

250,909

241,903

Total equity

 

1,998,920

1,669,378

Approved and authorised by the Board on 28 September 2018 and signed on its behalf by:

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

M J Robertson

Director

 

Hottinger Private Office Limited

(Registration number: 07078765)
Balance Sheet as at 31 December 2017

Note

2017
£

2016
£

Fixed assets

 

Tangible assets

10

4,732

13,290

Investments

11

1,762,474

1,762,474

 

1,767,206

1,775,764

Current assets

 

Debtors

12

1,138,775

99,974

Cash at bank and in hand

13

9,404

16,588

 

1,148,179

116,562

Creditors: Amounts falling due within one year

14

(1,046,603)

(377,424)

Net current assets/(liabilities)

 

101,576

(260,862)

Total assets less current liabilities

 

1,868,782

1,514,902

Provisions for liabilities

(899)

(2,525)

Net assets

 

1,867,883

1,512,377

Capital and reserves

 

Called up share capital

15

1,000

1,000

Other capital contributions

16

1,478,400

1,478,400

Profit and loss account

388,483

32,977

Total equity

 

1,867,883

1,512,377

The company made a profit after tax for the financial year of £355,506 (2016 - loss of £10,244).

Approved and authorised by the Board on 28 September 2018 and signed on its behalf by:
 

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

M J Robertson

Director

 

Hottinger Private Office Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 December 2017
Equity attributable to the parent company

Share capital
£

Other capital contributions
£

Profit and loss account
£

Total
£

Non- controlling interests
£

Total equity
£

At 1 January 2017

1,000

1,478,400

(51,925)

1,427,475

241,903

1,669,378

Profit for the year

-

-

320,536

320,536

9,006

329,542

Total comprehensive income

-

-

320,536

320,536

9,006

329,542

At 31 December 2017

1,000

1,478,400

268,611

1,748,011

250,909

1,998,920

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

 

Hottinger Private Office Limited

Statement of Changes in Equity for the Year Ended 31 December 2017

Share capital
£

Other capital contributions
£

Profit and loss account
£

Total
£

At 1 January 2017

1,000

1,478,400

32,977

1,512,377

Profit for the year

-

-

355,506

355,506

Total comprehensive income

-

-

355,506

355,506

At 31 December 2017

1,000

1,478,400

388,483

1,867,883

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

 

Hottinger Private Office Limited

Consolidated Statement of Cash Flows for the Year Ended 31 December 2017

Note

2017
£

2016
£

Cash flows from operating activities

Profit/(loss) for the year

 

329,542

(116,371)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

87,011

12,212

Finance income

(735)

(1,724)

Corporation tax expense

8

98,445

(9,606)

 

514,263

(115,489)

Working capital adjustments

 

Increase in trade debtors

12

(1,117,152)

(249,385)

Increase in trade creditors

14

467,350

74,874

Cash generated from operations

 

(135,539)

(290,000)

Income taxes received/(paid)

8

6

(7,292)

Net cash flow from operating activities

 

(135,533)

(297,292)

Cash flows from investing activities

 

Interest received

735

1,724

Acquisitions of tangible assets

(8,612)

(15,067)

Acquisition of intangible assets

9

9,188

(9,188)

Advances of loans, classified as investing activities

 

(81,270)

(95,000)

Net cash movement from acquisition of subsidiary

 

-

(437,124)

Net cash flows from investing activities

 

(79,959)

(554,655)

Cash flows from financing activities

 

Proceeds from other borrowing draw downs

 

150,000

66,000

Capital contributions received, other than issues of share capital

 

-

443,520

Net cash flows from financing activities

 

150,000

509,520

Net decrease in cash and cash equivalents

 

(65,492)

(342,427)

Cash and cash equivalents at 1 January

13

729,361

1,071,788

Cash and cash equivalents at 31 December

13

663,869

729,361

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

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'.

Basis of preparation

These financial statements have been prepared in accordance with the Financial Reporting Standards 102 - 'The Financial Reporting Standards Applicable to the UK and Republic of Ireland' (FRS 102) and applicable legislation as set out in the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2017.

No income statement is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £355,506 (2016 - loss of £10,244).

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

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.

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge 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.

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.

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

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

10% per annum

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.

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.

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

3

Turnover

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

2017
£

2016
£

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

2,365,856

1,213,246

4

Operating profit

Arrived at after charging/(crediting)

2017
£

2016
£

Depreciation expense

16,015

12,212

Amortisation expense

70,996

-

Foreign exchange losses/(gains)

7,943

(822)

Operating lease expense - property

136,107

166,615

5

Staff costs

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

2017
£

2016
£

Wages and salaries

917,656

703,158

Social security costs

86,958

60,674

Other short-term employee benefits

22,412

10,046

Pension costs, defined contribution scheme

45,181

17,248

Other employee expense

6,658

-

1,078,865

791,126

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

2017
No.

2016
No.

Administration and support

9

5

Senior management

5

5

14

10

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

6

Directors' remuneration

The directors' remuneration for the year was as follows:

2017
£

2016
£

Remuneration

247,500

146,667

Contributions paid to money purchase schemes

12,500

-

Compensation for loss of office

-

16,250

260,000

162,917

In respect of the highest paid director:

2017
£

2016
£

Remuneration

125,000

-

Company contributions to money purchase pension schemes

12,500

-

7

Auditors' remuneration

2017
£

2016
£

Audit of these financial statements

5,400

4,500

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

11,000

12,000

16,400

16,500

Other fees to auditors

Taxation compliance services

6,524

-

All other non-audit services

9,446

5,001

15,970

5,001


 

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

8

Taxation

Tax charged/(credited) in the income statement

2017
£

2016
£

Current taxation

UK corporation tax

87,406

7,472

UK corporation tax adjustment to prior periods

(7,471)

-

79,935

7,472

Deferred taxation

Arising from origination and reversal of timing differences

18,510

(17,078)

Tax expense/(receipt) in the income statement

98,445

(9,606)

Reconciliation of tax charge to profit before tax multiplied by the standard rate of corporation tax for the period of 19.25% (2016 - 20%).

2017
£

2016
£

Profit/(loss) before tax

427,987

(125,977)

Corporation tax at standard rate

82,373

(25,195)

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

16,594

7,682

UK deferred tax (credit)/expense relating to changes in tax rates or laws

(522)

7,907

Total tax charge/(credit)

98,445

(9,606)

Deferred tax assets and liabilities - Group

2017

Asset
£

Liability
£

Accelerated tax depreciation

2,155

899

Tax losses

91,947

-

 

94,102

899

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 £75,000 (2016 - £35,000).

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

Deferred tax assets and liabilities - Company

2017

Liability
£

Accelerated tax depreciation

899

   

2016

Liability
£

Accelerated tax depreciation

2,525

   

Factors that may affect future tax charges

Finance (No. 2) Act 2015 sets the main rate of corporate tax at 17% with effect from the financial year 2020.

9

Intangible assets

Group

Goodwill
 £

Website development costs
 £

Total
£

Cost or valuation

At 1 January 2017

709,958

9,188

719,146

Disposals

-

(9,188)

(9,188)

At 31 December 2017

709,958

-

709,958

Amortisation

Amortisation charge

70,996

-

70,996

At 31 December 2017

70,996

-

70,996

Carrying amount

At 31 December 2017

638,962

-

638,962

At 31 December 2016

709,958

9,188

719,146

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

10

Tangible assets

Group

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 January 2017

52,513

52,513

Additions

8,612

8,612

Disposals

(29,630)

(29,630)

At 31 December 2017

31,495

31,495

Depreciation

At 1 January 2017

29,483

29,483

Charge for the year

16,016

16,016

Eliminated on disposal

(29,630)

(29,630)

At 31 December 2017

15,869

15,869

Carrying amount

At 31 December 2017

15,626

15,626

At 31 December 2016

23,029

23,029

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

10

Tangible assets (continued)

Company

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 January 2017

40,748

40,748

Additions

994

994

Disposals

(29,630)

(29,630)

At 31 December 2017

12,112

12,112

Depreciation

At 1 January 2017

27,458

27,458

Charge for the year

9,552

9,552

Eliminated on disposal

(29,630)

(29,630)

At 31 December 2017

7,380

7,380

Carrying amount

At 31 December 2017

4,732

4,732

At 31 December 2016

13,290

13,290

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

11

Investments

Company

Subsidiaries

£

Cost

At 1 January 2017

1,762,474

Carrying amount

At 31 December 2017

1,762,474

At 31 December 2016

1,762,474

Details of subsidiary undertakings

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2017

2016

Hottinger Investment Management Limited

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

Ordinary

80%

80%

         

Hottinger Group Limited

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

Ordinary

100%

100%

         

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

12

Debtors

 

Group

Group

Company

Company

2017
£

2016
£

2017
£

2016
£

Trade debtors

384,836

259,531

369,836

-

Amounts owed by related parties

902,817

137,830

671,343

42,590

Other debtors

47,693

50,481

40,876

23,384

Prepayments

55,569

68,382

4,720

-

Accrued income

357,793

34,062

52,000

34,000

Deferred tax assets

94,102

114,238

-

-

Total current trade and other debtors

1,842,810

664,524

1,138,775

99,974

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

13

Cash and cash equivalents

 

Group

Group

Company

Company

2017
£

2016
£

2017
£

2016
£

Cash on hand

585

-

155

-

Cash at bank

663,284

729,361

9,249

16,588

663,869

729,361

9,404

16,588

14

Creditors

 

Group

Group

Company

Company

2017
£

2016
£

2017
£

2016
£

Due within one year

Loans and borrowings

216,000

66,000

216,000

66,000

Trade creditors

124,940

44,031

57,335

7,854

Amounts due to related parties

415,024

47,090

427,482

47,090

Social security and other taxes

73,035

47,275

46,603

24,417

Other payables

192,501

192,454

192,502

192,454

Accrued expenses

52,542

59,842

19,275

32,144

Corporation tax liability

87,406

7,465

87,406

7,465

1,161,448

464,157

1,046,603

377,424

15

Share capital

Allotted, called up and fully paid shares

 

2017

2016

 

No.

£

No.

£

Ordinary shares of £1 each

1,000

1,000

1,000

1,000

         
 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

16

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.

17

Obligations under leases

Group

Operating leases - lessee

The total of future minimum lease payments is as follows:

2017
£

2016
£

Not later than one year

104,174

151,985

Later than one year and not later than five years

36,667

140,841

140,841

292,826

Operating leases - lessor

The total of future minimum lease receipts is as follows:

2017
£

2016
£

Not later than one year

13,500

-

Company

Operating leases - lessee

The total of future minimum lease payments is as follows:

2017
£

2016
£

Not later than one year

16,174

63,985

Later than one year and not later than five years

-

16,174

16,174

80,159

Operating leases - lessor

The total of future minimum lease receipts is as follows:

2017
£

2016
£

Not later than one year

13,500

-

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

18

Dividends

Shortly before the year end the directors resolved to pay an interim dividend of €40,000. The dividend had not been paid by the balance sheet date and is not accrued in these financial statements.

19

Related party transactions

Key management compensation

Key management are the directors. Remuneration is disclosed 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, initially repayable in December 2017 and now due on demand.

During 2016 Hottinger Private Office Limited received contributions of £443,520 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.

Summary of transactions with entities under common control

Turnover includes £50,000 (2016 - £600,000) in respect of investment services provided by Hottinger Private Office Limited to Archimedes Private Office (Suisse) Sarl, an entity under the common control of ArchCo Limited. During the period the same entity advanced Hottinger Private Office Limited £150,000. This amount is interest free, payable on demand, and was outstanding at 31 December 2017.

During the period Hottinger Private Office Limited advanced €90,000 to Hottinger Family Office Limited (Ireland), an entity under common control. This amount is interest free, payable on demand, and was outstanding at 31 December 2017.

During the period Hottinger Private Office Limited sublet an office to Quintessentially People Limited, an entity under common control. Rent and related service charges in the period were £53,579.

With effect from 1 January 2017 various expenses are shared and recharged among entities under common control, including staff costs, office rent, and IT and marketing costs. The net amount recharged by the company in the period was £191,873 (by the company and its subsidiary - £337,505). At 31 December 2017 the company had related receivables balances of £559,855 (group - £592,097) and payables of £386,322 (group - £272,932). In addition, some of the company’s clients have been introduced through other group entities.

Summary of transactions with other related parties

An investor in ArchCo Limited has lent Hottinger Private Office Limited £66,000 (2016 - £66,000) interest free, unsecured and payable on demand.

 

Hottinger Private Office Limited

Notes to the Financial Statements for the Year Ended 31 December 2017

20

Financial instruments

Categorisation of principal financial instruments

2017
£

2016
£

Group

Bank balances

663,284

729,361

Financial assets that are debt instruments measured at amortised cost

1,693,139

481,904

Financial liabilities measured at amortised cost

(1,001,007)

(409,417)

2017
£

2016
£

Company

Bank accounts

9,249

16,588

Financial assets that are debt instruments measured at amortised cost

1,134,055

99,974

Financial assets that are equity instruments measured at cost less impairment

1,762,474

1,762,474

Financial liabilities measured at amortised cost

(912,594)

(345,542)

Financial assets measured at amortised cost include trade receivables and loans to related parties.
Financial liabilities measured at amortised cost include trade payables and borrowings from related parties.
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.