REG - Walker Crips Group - Final results for the year ended 31 March 2024
31/07/2024 13:00
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RNS Number : 6263Y Walker Crips Group plc 31 July 2024
31 July 2024
Walker Crips Group plc
("Walker Crips", the "Company" or the "Group")
Final results for the year ended 31 March 2024
Walker Crips Group plc, the investment management and wealth management
services, pensions administration and regulation technology Group, announces
audited results for the year ended 31 March 2024.
Financial highlights
● Total revenues broadly flat at £31.57 million (2023: £31.61
million).
● Operating profit declined by 89.9% to £63,000 (2023: £625,000).
● Profit before tax declined by 38.8% to £387,000 (2023:
£632,000).
● Adjusting for exceptional items, the Group is reporting an
operating loss of £162,000 (2023: operating profit of £1,179,000) and a
profit before tax of £162,000 (2023: £1,186,000)*.
● Adjusted EBITDA of £1.77 million (2023: £3.25 million), a
decline of 45.4%.**
● Underlying cash generated in the year £2.30 million (2023: £3.36
million), reducing by 31.6%.***
● Cash and cash equivalents of £13.86 million (2023: £13.14
million).
● Assets Under Management ("AUM") decreased by 13.5% to £2.7
billion (2023: £3.1 billion).
● Proposed final dividend of 0.25 pence per share (2023: 0.25 pence
per share), bringing the total dividends for the year to 0.50 pence per share
(2023: 0.50 pence per share).
* Exceptional items are disclosed in note 9 to the accounts and a
full reconciliation to IFRS results is presented in the Finance Director's
review.
** Adjusted EBITDA represents earnings before interest, taxation,
depreciation and amortisation, and exceptional items. The Directors present
this result as it is a metric widely used by stakeholders when considering an
entity's financial performance. A full reconciliation to IFRS results is
provided in the Finance Director's review.
*** Underlying cash generated from operations represents the cash generated
from operations adjusted for lease liability payments under IFRS 16,
non-cyclical working capital movements and operational exceptional items. The
Directors consider that this metric helps readers understand the cash
generating performance of the Group. A full reconciliation to the IFRS results
is provided in the Finance Director's review.
For further information, please contact:
Walker Crips Group plc Tel: +44 (0)20 3100 8000
Craig Harrison, Media Relations
Four Agency
Jonathan Atkins Tel: +44 (0)20 3920 0555
walkercrips@four.agency
Singer Capital Markets Tel: +44 (0)20 7496 3000
Charles Leigh-Pemberton/Asha Chotai
Further information on Walker Crips Group is available on the Company's
website: www.walkercrips.co.uk
Chairman's statement
"Our year to 31 March 2024 has been a difficult one. We had a significant
year-on-year cost increase, caused in part by high inflation, our compliance
transformation project and by recruiting, and maintaining in real terms the
salaries paid to staff within our organisation. Staff are our key asset and
so it is right we pay market rates to ensure we retain top calibre
employees. In our compliance transformation programme, we have learned from
past events and are fully committed to ensuring our compliance and risk
management follows best practice. This comes with a cost, both in financial
terms and senior management time, but we remain committed to ensuring our
customers are fully protected and that we deliver good outcomes for them. In
addition, achieving best practice has meant losing several investment managers
and their related clients. Although we have suffered financially, we believe
that this was the right outcome, aligning with the values we uphold.
Looking forward, we are making important investments for growth. We have
recruited new financial planners and have now met our targeted staffing
levels. We are committed to offering more choice for clients and have
hired new business development managers. We have also launched a new
structured deposit product.
We are developing a full strategic integrated plan closely linked with our
compliance transformation project and we look forward to announcing details of
this in the coming months."
Chairman's statement
Our financial year to 31 March 2024 has been a year of continuing
challenges. A large part of the year was overshadowed by global conflicts,
political uncertainty, high inflation and high interest rates. These external
influences coupled with the costs incurred to strengthen our compliance and
risk framework significantly affected our results. Inevitably, inflation
increased our cost base. In addition, to bring our remuneration levels in
line with the market and to negate the impact of the cost-of-living crisis on
our staff, we approved what overall was a substantial increase in staff
remuneration. Further, rising interest rates impacted our market driven fee
and commission income, although this was offset by retaining a share of
interest income earned on our own reserves and customer trading cash balances.
In terms of our results, the Group, for the 12-month period to 31 March 2024,
is reporting an operating profit of £63,000 (2023: £625,000) and profit
before tax of £387,000 (2023: £632,000). Excluding exceptional items, the
Group is reporting an operating loss of £162,000 (2023: operating profit of
£1,179,000) and profit before tax of £162,000 (2023: £1,186,000). A more
detailed explanation of our results is set out in the Finance Director's
review.
I have already referenced our compliance and risk framework. Since I took
over as Chairman of the Group, I have been making reference to investments
that we have been making in this respect, originally specifically on our
financial crime framework and, in my statement in our annual report to March
2023 and our interim statement, I noted more generally our strategic
initiative to improve our regulatory and compliance framework. This work is
still continuing and still requiring considerable investment. During the
year, in addition to implementation and embedding changes to reflect the
Consumer Duty regime, management has been working with external consultants on
a number of high priority projects extending from client assets management
specifically, to compliance and risk management generally with the objective
of ensuring that our operational and regulatory control environment is fit for
purpose and up to date with market best practice.
Last year I noted that we needed to strengthen our senior management team to
address some self-identified weaknesses. Previously, we had been minded to
recruit once the business was performing better. We have concluded that this
is a false economy, unreasonably stretching our senior management and holding
back the business. I am therefore pleased to report that we have recently
recruited a senior Chief Risk and Compliance Officer, Christian Dougal, to
work alongside the CEO and CFO. We believe that his experience and
expertise, having worked for nearly thirty years in risk and compliance, will
enable the Group finally to move to a robust comprehensive and integrated
platform, and to reduce substantially the reliance on external consultants.
Turning to the business operations, the Board fully recognises that the Group
must grow to return, at the least, to an acceptable level of profitability.
Establishing a robust operational, compliance and risk framework is, of
course, an essential prerequisite. Equally we still need to grow the senior
executive team, and have further plans so to do.
Our business development team has been working hard in promoting our products
and services to the IFA community and new customer groups and we are expecting
their good work to translate to new customers and ultimately new revenues. The
Board is developing plans to generate new income by way of broadening and
improving our offering in a way that will enable us to serve the requirements
of existing clients better and more comprehensively as well as attracting new
customers and new assets under management. This initiative will go beyond
the business-as-usual efforts of our investment managers and beyond the
significant gains from our business development initiative. This is likely
to involve much greater cooperation between different divisions within the
Group.
On a positive note, our York Division, which has been on a recruitment drive,
has now recruited their target number of financial advisers. This plan
envisages that the anticipated new revenues should now be coming on stream and
the division is expected to move to profitability in the coming year. This
will pave the way for the division to become self-sufficient at its current
levels and to pay back the investment made by the Group. I would like to
thank the management team of the York Division and wish them continued good
fortune in the coming months.
Our Structured Products division, whilst it had a difficult year with the
industry shifting towards deposits, launched a new structured deposit
initiative last year, allowing us to expand to a new customer cohort. We are
expecting the team to generate new income from this initiative in the coming
year.
Finally, the underpayment of Stamp Duty Reserve Tax that I referenced in my
2023 statement has been resolved, following an extensive internal
investigation and our tax advisers are in communication with the HMRC to agree
the final settlement. The extent of underpayment was lower than we initially
estimated last year and the excess, net of professional fees, has been written
back to exceptional items in the current year. I am pleased to report that
an HMRC case officer has been appointed and we hope to conclude this matter in
the coming months.
In addition to our regulatory framework, the FCA's Consumer Duty regulations
were high on the list of priorities during the year. A detailed review of
our products and services and how they are matched to clients and their needs
was carried out during the year. Further details on how we implemented the
Duty are contained in the CEO's statement.
Dividend
We aim to reward our shareholders for their continued patience and support.
Given the current economic environment and reported results, the Board will
recommend for shareholders' approval at the forthcoming AGM a final dividend
of 0.25 pence per share (2023: 0.25 pence) payable on 4 October 2024 to those
shareholders on the register at the close of business on 20 September 2024,
with an ex-dividend date of 19 September 2024.
Directors, Account Executives and staff
I would like to thank my fellow Directors, our investment managers and
advisers and all members of staff for their efforts, resilience and continued
commitment to the Group. We have had a difficult couple of years, with more
work to do this year, but the path to a more robust operating model and
business plan is now much clearer.
As announced, our Senior Independent Director, Clive Bouch, resigned and
relinquished his role on 27 June 2024. Clive and I had discussed his wish
to step down and we are grateful to him for deferring the step by several
months. On behalf of the Board, I wish to thank Clive for his considerable
contribution to the Group over the last seven years and I wish him all the
best with his future endeavours.
Clive's resignation leaves the governance of the Group short of what is
required by the UK Corporate Governance Code. The Board is addressing this
and, as part of the plans to which I refer, we are in discussions to appoint
two new Independent Non-executive Directors. As soon as we are able, we will
provide further updates.
Outlook
As you are aware from my previous communications, we have been working to
improve our financial crime framework and I am pleased to report that we have
successfully completed this work and changes are now embedded to our
day-to-day operations. In addition to this, overseen directly by me, with
support from independent external advisers and led now by our Chief Risk and
Compliance Officer, we are carrying out an extensive review of other areas
across our Compliance, Risk, Suitability, Monitoring functions and adoption of
Consumer Duty regulation to establish a target future state for risk and
compliance. This will be linked to additional business planning and change
management resource we are currently putting in place that will enable us to
develop a comprehensive and integrated plan for the entire Group. We expect
to complete the majority of this work in the financial year 2025.
I anticipate that this programme we have set out to achieve, whilst wholly
necessary, will require considerable management time and resource in the
coming year.
There is little doubt that we have short-term challenges we need to overcome,
and we are committed to this course. We will have another year of high costs
and pressure on management to deliver a fit for purpose operational and
regulatory framework. Despite these short-term challenges, which I see as an
investment, for the reasons described, I remain optimistic about the
longer-term future of our Group.
Martin Wright
Chairman
31 July 2024
CEO's statement
Innovating, Digitising and Focusing on Customer Outcomes
This has been a mixed year for us. We have put a great deal of effort into the
rolling out of the Consumer Duty (The Duty) regulations, in a manner that I
consider has been to the benefit of our customers and the organisation as a
whole. The market for our structured products diminished slightly during this
financial year, but the team was innovative and launched an additional
structured deposit model which is already generating considerable interest.
Our financial planning division showed an increased loss, but this was a
consequence of our strategy to rebuild the team, and there tends to be a time
lag between recruitment and new revenue coming 'on stream'.
As mentioned in the Chairman's Statement, we have struggled with bandwidth at
the senior management level. To address this, we have made a number of senior
hires, including a new Chief Risk and Compliance Officer. We will continue to
review our resource requirements and adjust accordingly. We have also hired
for the front office new business development individuals, investment managers
and financial planners to service our existing customers, and to grow new
revenues. We also believe in the training of young people and our Graduate
Trainee and Internship programmes have enabled us to bring new individuals
into the industry who could well become the new leaders of the firm in the
future. More details on our regulated subsidiaries are mentioned below.
Our Financial Highlights show that our financial performance has not met our
initial projections or expectations. Operating profit declined by 89.9% to
£63,000 (2023: £625,000) and, adjusting for exceptional items, we are
reporting an operating loss of £162,000 (2023: operating profit of
£1,179,000). With the additional senior risk and compliance hires and the new
front office personnel, we believe that we have in place a plan that will put
the business on to a better risk and compliance footing and on to a platform
for growth.
We continue to invest in greater digitisation to improve customer facing
services such as the provision of better systems to our investment managers,
associates, financial planners and IFAs who work with the Group, updating our
Client Portal, substantially enhancing our mobile apps, improving the
documentation provided to customers, revised and standardised our tariff of
fees and commission and simplifying our supplementary tariff.
Consumer Duty
Throughout the past year, we have focused on the implementation of the
Consumer Duty (The Duty) regulations which serves to set higher and clearer
standards of consumer protection across financial services, and require firms
to put customers' needs first. The Duty effectively codifies our fundamental
principle of taking all reasonable steps to avoid causing foreseeable harm to
customers, enabling them to pursue their financial objectives, and always act
in good faith towards them.
We have reviewed all the services that we provide to our customers, clarified
the target market of our services, we benchmarked our services to our peers to
ensure that we are competitive, we clarified the benefits that our customers
are receiving from the services that we provide, we reviewed the cost to the
business in providing those services, we also reviewed our fees and
commissions and simplified our supplementary tariff and we conducted a value
assessment to ensure our customers are receiving what they are paying for. We
are particularly mindful of those who may be vulnerable and take extra care in
supporting them and delivering the level of service and outcomes that match
their needs.
Our review has included the Group's approach to the treatment of cash held by
our own or external custodians on customers' behalf, with the objective of
ensuring consistency and fairness in relation to the income derived and the
cost of managing and protecting customers' assets under our control.
Our delivery strategy has been, for a number of years, to "simplify and
digitise", and The Duty has helped push this development further and faster.
This has included the simplification of tariffs, the improvement of
communication with customers, moving from static customer feedback to regular
and continuous based on activity and there is even a smiley-face
quick-feedback feature, where appropriate. We have ensured that our documents
are clearly written and understood and that our website is written in 'plain
language', as was certified by the Plain Language Commission. The Duty has
caused a positive mindset change within the Group and has permeated through
the organisation, and it is not just top down, but exhibited by all staff.
However, our approach in the implementation of The Duty, the development of
new and revised policies and procedures, the streamlining of our tariff, the
further simplification of our business, was not wholly acceptable by a number
of our self-employed investment management associates who decided to leave us.
It is always disappointing to see colleagues whom we've known for a long time
leave the Group; nevertheless, we do wish them well.
Divisional performance
Our regulated entities have only a moderate amount of cross-over but over the
coming year, the Group executive and our divisional heads will be making
greater efforts to have individuals from across divisions collaborating in
order to increase the provision of a consolidated approach to engagement with
our customers, all the while ensuring that we are providing good outcomes to
them.
Our Investment Management division has invested in the building blocks for
growth. We have hired specialist business development individuals with a clear
mandate to attract new investment portfolios into the business by promoting
our products and services to the IFA community and new customer groups such as
sportspersons and future investors, through our #WalkerCripsInSports and
#WalkerCripsInSchools initiatives. Our team has reviewed our product offering,
removed complications, and simplified/streamlined our model portfolio service.
We have also re-launched our AIM inheritance tax portfolio service and created
a new Gilt portfolio service.
Our Structured Investments division launched a new structured deposit
initiative which will allow us to expand into a new group of customers and we
have already seen encouraging investment inflows.
Our Financial Planning division continues to grow with highly experienced
financial planners (FPs) joining us. In 2021, we were left with two full-time
FPs and we embarked on a rebuilding programme and now, in 2024, we have 12
qualified FPs serving our customers. Most of the customers of these new FPs
'followed' them and opened accounts with Walker Crips. Over that period, our
AUA within our Financial Planning division grew from £141m to £415m (June
2024).
Barker Poland Asset Management (BPAM) continues to focus on financial planning
and discretionary investment management for UK based individuals, providing
advice on strategy, tax wrappers and associated tax, retirement, cash flow
management, insurance and estate planning. On investments, BPAM runs a range
of risk adjusted models containing active and passive funds. It is aiming for
a profit of circa £450k from c.£2.4m turnover for the next financial year
while keeping focus on reducing costs of funds, and keeping its back office as
streamlined as possible. BPAM is also recruiting trainees/juniors with the
intention of developing them into advisers over time. It has always placed
great emphasis on personal contact, which is one way it seeks to differentiate
itself in a highly competitive market space.
Ebor Trustees (Ebor) has been driving to keep its pricing competitive and
increasing the adoption of digitised solutions. The division is also preparing
its marketing campaign which will take place between October and March 2025,
and with a more targeted campaign for Accountants, promoting the benefits of
pension platforms and how they may fit into the overall financial plan for
customers.
For more information about the financial performance of the Divisions, please
refer to the Finance Director's Review.
Corporate responsibility
I wish to reiterate my message from the last few years, that we can all do our
part in reducing our carbon footprint:
REFUSE - Avoid buying harmful, wasteful or non-recyclable products
REDUCE - Reduce the use of harmful, wasteful, and non-recyclable products
REUSE - Get rid of the "buy and throw-away" mindset, re-use what you have
REPAIR - Try to repair before tossing them out
REPURPOSE - Upcycle, break down and reconstitute as something else
ROT - Compost if you can
RECYCLE - Make recycling your last step, after going through all the R's above
We are committed to sustainability and environmental responsibility because we
recognise the urgent need to address climate change and mitigate our
environmental impact. We also believe that our commitment to sustainable
practices will also present us with opportunities for innovation and cost
efficiencies.
Mental health charity
As a Group, we continue to support twiningenterprise.org.uk, the mental health
charity. In addition to financial support, we also try to use our technology
for good, through technology philanthropy. If you wish to find out more, or
want to support Twining financially, please visit walkercrips.co.uk/community.
Conclusion
I wish to echo our Chairman's thanks to our Audit Committee Chairman and
Director, Clive Bouch, who stepped down on 27 June 2024. Clive's attention to
detail and thoroughness has been invaluable to the Group. We wish him well.
We shall continue to make investment rewarding for our customers, our
shareholders and our staff, and to give our customers a fair deal. We continue
to support our investment advisers and our staff by being a technology-driven
financial services company. We have had significant challenges, as mentioned
in the Chairman's Statement and above, but we are optimistic about the future,
with the right strategies, personnel, and the right mindset to overcome the
challenges and create opportunities. We remain committed to delivering
sustainable growth, creating value for our stakeholders, and making a positive
impact on society.
Sean Lam
Chief Executive Officer
31 July 2024
Finance Director's review
The financial year to 31 March 2024 was one of dealing with difficult
challenges. Our primary focus during the year was the continuation of the
initiatives to improve our compliance and risk management framework including
the initial work relating to the financial crime control framework review and
remediation that we noted last year. It is a significant undertaking, in terms
of management time and the resource required. As described in the Chairman's
Statement, the work is ongoing and it is a worthwhile and necessary investment
to improve our control environment, customer service and ultimately leading to
improve operating margins and profitability in the long run.
Financial performance
The Group's results were impacted by external pressures and internal
operational matters that saw trading commissions and management fees impacted
negatively, whilst inflationary pressures, together with continued costs and
investment in strengthening our regulatory and compliance functions, kept our
cost base high. Our performance, as noted in my report last year, was also
impacted by five self-employed investment managers and their client base
leaving the group during the year. We will see one more self-employed
investment manager depart early in the new financial year.
The negative impact of these were somewhat mitigated by interest income from
managing customer deposits and the firm's own money, and an exceptional income
arising from a lower than expected liability in relation to the previously
reported Stamp Duty Reserve Tax (SDRT) underpayment and related professional
fees (see note 9).
We are reporting a Group profit before tax of £387,000 (2023: £632,000),
reflecting the outcome of challenges noted by the Chairman. Adjusting for
exceptional items, there has been a marked decline in year-on-year pre-tax,
pre-exceptional profits of £162,000 (2023: £1,186,000). Further explanation
of these headline results is provided below.
Notwithstanding the headline results, we did not lose focus on strategic
measures to ensure that the Group's underlying performance in the future is
strengthened with the hiring of business development managers with a clear
mandate to attract new customers and new assets under management. They have
had some success already and there is a considerable book of prospects in the
pipeline.
We also launched a new structured deposit initiative to help us identify and
open new doors for new clients and revenues. During the financial year, we saw
the first shoots from this initiative with 152 new clients investing £5.2
million into our opening structured deposit.
We remain cautiously optimistic about the future as we view much of the work
in relation to improvements to our compliance and risk management framework,
internal controls, financial crime prevention systems, client asset management
processes and Consumer Duty implementation as investments which are necessary
to protect client and Group assets from which we can reap long-term benefits.
Total revenue
Total revenue, due to a number of variables, decreased by 0.1% to £31.57
million (2023: £31.61 million). The decrease, as I referenced last year, was
partly driven by a number of self-employed investment managers exiting the
Group at the start of the year, and partly driven by difficult market and
uncertain economic pressures depressing trading commissions and management
fees, which were offset by higher retention of interest earned on managing
customer trading balances.
Total commission income reduced by 17.9% to £4.9 million (2023: £6.0
million). The loss of a number of self-employed investment managers and their
clients, and the revenue therein, and persisting market uncertainty were
direct causes of the reduction in commission. It is also important to
recognise that the Group has been slowly moving away from volume based
variable income to more stable fee income, and this is expected to be more
prominent next year with the recent tariff alignment exercise conducted by the
Investment Management division, which will be in place for a full financial
year.
Fee generating client assets fell by 13.5% to £2.7 billion (2023: £3.1
billion). The reduction in these assets naturally resulted in our fee income
reducing by 4.9% to £16.9 million, down £0.8 million from last year (2023:
£17.7 million). During the year, in conjunction with the Consumer Duty
implementation, the Investment Management division standardised its fee
tariffs across all its service range thereby removing historical commercial
arrangements agreed at customer level. As a result, the division is expected
to see its aggregate fee income increasing in the next financial year. This
will support our commitment to reduce our reliance on retained interest
income.
Our Structured Investment division ended the financial year reporting £3.0
million of gross income, down £0.9 million from last year (2023: £3.9
million). The reduction in reported income is largely down to the structured
products industry shifting from structured investments to structured deposits.
The team is currently involved in a project to digitise its operations and the
outcome of this is expected to create capacity to increase customer engagement
and revenue growth. The team's recent product launch is one of their steps in
their journey to increase market share in the UK.
Arbitrage business reported a modest increase in contribution to £152,000 for
the year (2023: £97,000).
Barker Poland Asset Management saw a 4.4% increase in revenue and reported
£2.3 million of gross income (2023: £2.2 million) compared to last year.
Our Financial Planning division, following a successful recruitment drive, saw
their income increasing by 26.4% to £2.5 million (2023: £1.9 million),
showing great promise and giving optimism for the near future.
Interest income increased by 82.8% to £5.8 million (2023: £3.2 million).
This revenue stream does provide the Group with a level of protection against
adverse fluctuations of income linked to high interest environments which make
asset prices and indices susceptible to stagnation or low growth. The Group is
committed to reducing this reliance and has already taken steps towards
achieving this objective. It should, however, be noted that there are
significant costs associated with managing client assets and money and changes
made to Group's business model will take a period of time to be fully
effective.
Commissions and fees paid
The aforementioned departure of certain self-employed investment managers also
resulted in reducing our income sharing. This saw a reduction of £1.5 million
to £5.8 million (2023: £7.3 million), contributing to an increase in our
gross operating margin to 81.7% from 77.0% in 2023. At the same time our
operating margin reduced to 0.4% (2023: 2.6%), reflecting our higher cost base
this year.
Expenses
Administrative expenses, excluding exceptional items, salaries and related
staff costs, depreciation and amortisation, increased by 7.9% in the year,
with investments made to strengthen our compliance and risk management
framework significantly increasing our cost base. This, along with general
inflationary increases in a number of areas, was offset by a reduction in FCA
fees and levies in the year. Salaries and staff related costs saw a
year-on-year increase of 16.8%, with salaries increasing by 15.7% to £15.8
million in the year (2023: £13.7 million), partly due to the current labour
market demanding higher pay packages to attract high calibre staff and partly
as a result of pay increases awarded to our existing staff to support them
through the inflation-driven cost-of-living pressures. The Group, as part of
its overall strategy, will continue to search and onboard high-calibre staff
to all parts of our business. These, along with the costs of benefits offered
to staff, contributed to increasing our related staff costs in the year by
43.1% to £0.8 million (2023: £0.6 million).
I am pleased to report, with support from our tax advisers, and following an
extensive internal investigation, we have now completed the issue in relation
to the underpayment of SDRT that I reported last year, and our tax advisers
are in communication with the HMRC to agree the final settlement. As a
result, the Group is reporting an exceptional income totalling £225,000
(2023: exceptional cost of £554,000), being the credit adjustment to reduce
the final SDRT liability and professional costs estimate to a more accurate
figure (see note 9).
UK inflation has come down from a peak of 11.1% in October 2022, to 3.2% in
March 2024 and down to the government CPI target of 2% in May 2024. The 2%
inflation target, however, does not translate to a cost reduction, but merely
an indication that costs are not increasing from their all-time higher base
over a set period. This means that our high-cost base will continue into the
future, and as noted in the Chairman's report, we are on a strategic
initiative to improve our compliance and risk management framework which will
require considerable investment over the next 12 months.
Cash management
The Group remains cash generative and recorded a cash inflow from operations
of £0.97 million (2023: £3.5 million), much lower than in the previous year,
reflecting low income generation in a period of rising costs, leading to much
lower operating profits.
The underlying cash generated from operations, reflecting the impact of lease
liability payments, non-cyclical working capital movements and cash flows from
exceptional items (see adjacent reconciliation) showed a performance of £2.3
million (2023: £3.4 million). The underlying cash generation compared to last
year was lower due to reasons noted above, but it does demonstrate the cash
generative nature of the underlying business model.
After deducting cash deployed in investing activities and dividends paid, cash
and cash equivalents increased to £13.9 million at year-end (2023: £13.1
million).
Looking forward to next year, we have a number of key priorities with
uplifting our compliance and risk management framework and the investment
required therein being at the core. We will continue with initiatives to
generate more income, as mentioned above in relation to business development
and structured deposits. Changes already made to align our fee structure and
the output of these ongoing initiatives will place the Group in a good
standing to deliver on our commitment to reduce our reliance on retained
interest income, which will see some pressure on cash generation, however, our
going concern forecast model indicates a modest year on year increase in cash
and cash equivalent next year.
Financial result and alternative performance measures
The Group reported operating profit and profit before tax for the year of
£63,000 and £387,000, respectively (2023: £625,000 and £632,000).
Adjusting for exceptional items (see below reconciliations and further detail
in note 9), the Group made an operating loss of £162,000 for the year (2023:
operating profit 1,179,000) and a profit before tax of £162,000 (2023:
£1,186,000). The Group's adjusted EBITDA (being EBITDA adjusted for
exceptional items - see adjacent reconciliation) is £1.8 million (2023: £3.3
million), not surprisingly a decrease of 45.4%.
Total Assets Under Management and Administration ("AUMA") stood at £4.9
billion at the end the financial year (2023: £5.0 billion). Discretionary and
Advisory Assets Under Management fell by 13.5% to £2.7 billion (2023: £3.1
billion). The decrease in AUMA values can be attributed partly to a number
of self-employed investment managers and their client base departing the Group
and partly to existing customers deploying cash to alternative needs during a
period of high inflation and rising costs offset by onboarding new customers.
In addition to this and disappointingly, we have also lost a small number of
customers as a result of the tariff standardisation exercise that resulted in
the removal of historical fee and commission arrangements.
Notwithstanding above and after the completion of our initiative to improve
our compliance and risk management framework, with its high calibre staff base
and improved systems coupled with revenue generating initiatives in the
pipeline, the Group would be ideally placed to propel forward to a profitable
landscape.
Reconciliation of operating profit to operating (loss)/profit before 2024 2023
exceptional items
£'000 £'000
Operating profit 63 625
Operating exceptional items (note 9) (225) 554
Operating (loss)/profit before exceptional items (162) 1,179
Reconciliation of profit before tax to profit before tax and exceptional items 2024 2024
£'000 £'000
Profit before tax 387 632
Total exceptional items (note 9) (225) 554
Profit before tax and exceptional items 162 1,186
Adjusted EBITDA 2024 2023
£'000 £'000
Operating profit 63 625
Operating exceptional items (note 9) (225) 554
Amortisation/depreciation (note 30) 1,299 1,301
Right-of-use assets depreciation charge (note 30) 636 771
Adjusted EBITDA 1,773 3,251
Underlying cash generated from operations 2024 2023
£'000 £'000
Net cash inflow from operations 970 3,539
Working capital (note 30) 1,124 156
Lease liability payments under IFRS 16 (note 30) (722) (332)
Cash outflow on operating exceptional items 928 -
Underlying cash generated in the period 2,300 3,363
Divisional performance
The Investment Management division, including exceptional costs, delivered an
operating profit of £1.63 million for the year, compared to £1.55 million in
the previous year. Adjusting for exceptional items, the division reported an
operating profit of £1.41 million (2023: £2.11 million). The division took
the brunt of the aforementioned effects of fee and commission revenues, cost
of investment in improving our compliance and risk management framework, and
inflationary cost pressures. On a positive note, the division has
successfully onboarded a new business development team, invested in a number
of new salaried investment managers and launched a new structured deposit
product, all of which are the necessary ingredients to move the Group to a
higher margin operating model.
The Financial Planning division has now successfully completed its recruitment
drive to increase its advisor base with several key hires in the year. The
division saw its year-on-year income increase by 26.4% to £2.45 million
(2023: £1.94 million) however reported an increased loss of £0.63 million
(2023: £0.31 million). The advisers onboarded will take time to bring their
client base across and operate at full capacity and the division is expected
to return to profitability in the coming year.
Our software as a service (SaaS) division, represented by our subsidiary EnOC
Technologies Limited (EnOC), has returned an operating loss of £490,000
(2023: £128,000 loss) after removing intercompany revenues. However,
standalone performance, including revenue generated from providing its
services to Group entities, saw it generate operating profit of £102,000 (see
note 6). EnOC benefited from the transfer of intellectual property from the
Investment Management division on 1 April 2023, an action intended to allow
EnOC the ownership and control of the Group's internally generated
intellectual property and to allow it to maintain and develop it with its own
staff and dedicated resources, while leasing its services to sister companies.
Capital resources, liquidity and regulatory capital
The Group's capital structure, consisting solely of equity capital, provides a
stable platform to support the Group's strategic plan and initiatives. At year
end, net assets are £21.3 million (2023: £21.2 million), reflecting a net
increase of £0.1 million (2023: £0.2 million net decrease), from reported
profit after tax, less dividends paid. Liquidity remains strong with cash and
cash equivalents increasing over the year to £13.9 million (2023: £13.1
million). Regulatory capital at year end, including audited reserves for the
year, is £13.4 million (2023: £12.4 million), comfortably in excess of the
Group's Own Funds (Capital) Threshold Requirement, as shown in the tables
below.
Regulatory own funds and own funds requirements 2024 2023
£'000 £'000
Own funds
Share capital 2,888 2,888
Share premium 3,763 3,763
Retained earnings 10,259 10,104
Other reserves 4,723 4,723
Less:
Own shares held (312) (312)
Regulatory adjustments (7,880) (8,800)
Total own funds 13,441 12,366
Own funds requirement (OFR) (5,075) (4,854)
Regulatory capital surplus over OFR 8,366 7,512
Cover on own funds as a % 264.8% 254.8%
Own Funds Threshold Requirement (OFTR) (7,022) (7,227)
Regulatory capital surplus over OFTR 6,419 5,139
Cover on own funds as a % 191.4% 171.1%
Dividends
In view of the Group's financial performance, capital and liquidity position,
the Board recommends a final dividend of 0.25 pence per share to be paid on 4
October 2024 for those members on the shareholders' register on 20 September
2024, the ex-dividend date being 19 September 2024. Including the interim
dividend of 0.25 pence per share (2023: 0.25 pence per share), the total
dividend paid and proposed in respect of the year is 0.50 pence per share
(2023: 0.50 pence per share).
Sanath Dandeniya
Finance Director
31 July 2024
Consolidated income statement
year ended 31 March 2024
Note 2024 2023
£'000 £'000
Revenue 5 31,574 31,612
Commissions and fees paid 7 (5,769) (7,264)
Gross profit 25,805 24,348
Administrative expenses 8 (25,967) (23,169)
Exceptional items 9 225 (554)
Operating profit 63 625
Investment revenue 10 446 95
Finance costs 11 (122) (88)
Profit before tax 387 632
Taxation 13 (19) (214)
Profit for the year attributable to equity holders of the Parent Company 368 418
Earnings per share
Basic and diluted 15 0.86p 0.98p
The following Accounting Policies and Notes form part of these financial
statements.
Consolidated statement of comprehensive income
year ended 31 March 2024
2024 2023
£'000 £'000
Profit for the year 368 418
Total comprehensive income for the year attributable to equity holders of the 368 418
Parent Company
The following Accounting Policies and Notes form part of these financial
statements.
Consolidated statement of financial position
as at 31 March 2024
Note 2024 2023
£'000 £'000
Non-current assets
Goodwill 16 4,388 4,388
Other intangible assets 17 3,741 4,648
Property, plant and equipment 18 815 989
Right-of-use asset 19 2,075 2,340
Total non-current assets 11,019 12,365
Current assets
Trade and other receivables 21 31,902 36,301
Investments - fair value through profit or loss 20 538 1,276
Cash and cash equivalents 22 13,863 13,138
Total current assets 46,303 50,715
Total assets 57,322 63,080
Current liabilities
Trade and other payables 25 (31,961) (36,849)
Current tax liabilities (242) (269)
Deferred tax liabilities 23 (260) (371)
Provisions 26 (355) (878)
Lease liabilities 27 (718) (341)
Deferred cash consideration 35 (25) (94)
Total current liabilities (33,561) (38,802)
Net current assets 12,742 11,913
Long-term liabilities
Deferred cash consideration 35 (15) (71)
Lease liabilities 27 (1,736) (2,389)
Provision 26 (689) (652)
Total non-current liabilities (2,440) (3,112)
Net assets 21,321 21,166
Equity
Share capital 28 2,888 2,888
Share premium account 28 3,763 3,763
Own shares 29 (312) (312)
Retained earnings 29 10,259 10,104
Other reserves 29 4,723 4,723
Equity attributable to equity holders of the Parent Company 21,321 21,166
The following Accounting Policies and Notes form part of these financial
statements.
The financial statements of Walker Crips Group plc (Company registration no.
01432059) were approved by the Board of Directors and authorised for issue on
31 July 2024.
Signed on behalf of the Board of Directors
Sanath Dandeniya FCCA
Director
31 July 2024
Consolidated statement of cash flows
year ended 31 March 2024
Note 2024 2023
£'000 £'000
Operating activities
Cash generated from operations 30 970 3,539
Tax paid (157) (120)
Net cash generated from operating activities 813 3,419
Investing activities
Purchase of property, plant and equipment (114) (150)
Sale / (Purchase) of investments held for trading 642 (205)
Consideration paid on acquisition of intangible assets (104) (183)
Dividends received 10 19 47
Interest received 10 427 48
Net cash generated from/(used in) investing activities 870 (443)
Financing activities
Dividends paid 14 (213) (617)
Interest paid 11 (23) (2)
Repayment of lease liabilities ** (623) (246)
Repayment of lease interest ** (99) (86)
Net cash used in financing activities (958) (951)
Net increase in cash and cash equivalents 725 2,025
Net cash and cash equivalents at beginning of period 13,138 11,113
Net cash and cash equivalents at end of period 13,863 13,138
** Total repayment of lease liabilities under IFRS 16 in the period was
£722,000 (2023: £332,000)
The following Accounting Policies and Notes form part of these financial
statements.
Consolidated statement of changes in equity
year ended 31 March 2024
Share Share Own Capital Other Retained Total
capital premium shares redemption £'000 earnings equity
£'000 account held £'000 £'000 £'000
£'000 £'000
Equity as at 31 March 2022 2,888 3,763 (312) 111 4,612 10,303 21,365
Comprehensive income for the year - - - - - 418 418
Total comprehensive income for the year - - - - - 418 418
Contributions by and distributions to owners
Dividends paid - - - - - (617) (617)
Total contributions by and distributions to owners - - - - - (617) (617)
Equity as at 31 March 2023 2,888 3,763 (312) 111 4,612 10,104 21,166
Comprehensive income for the year - - - - - 368 368
Total comprehensive income for the year - - - - - 368 368
Contributions by and distributions to owners
Dividends paid - - - - - (213) (213)
Total contributions by and distributions to owners - - - - - (213) (213)
Equity as at 31 March 2024 2,888 3,763 (312) 111 4,612 10,259 21,321
The following Accounting Policies and Notes form part of these financial
statements.
Notes to the accounts
year ended 31 March 2024
1. General information
Walker Crips Group plc ("the Company") is the Parent Company of the Walker
Crips group of companies ("the Company"). The Company is a public limited
company incorporated in the United Kingdom under the Companies Act 2006 and
listed on the London Stock Exchange. The Group is registered in England and
Wales. The address of the registered office is Old Change House, 128 Queen
Victoria Street, London EC4V 4BJ.
The significant accounting policies have been disclosed below. The accounting
policies for the Group and the Company are consistent unless otherwise stated.
2. Basis of preparation
The consolidated financial statements have been prepared in accordance with
UK-adopted international accounting standards in conformity with the
requirements of the Companies Act 2006.
The principal accounting policies adopted in the preparation of the
consolidated financial statements are set out in note 3. The policies have
been consistently applied to all the years presented, unless otherwise stated.
The consolidated financial statements are presented in GBP Sterling (£).
Amounts shown are rounded to the nearest thousand, unless stated otherwise.
The consolidated financial statements have been prepared on the historical
cost basis, except for certain financial instruments that are measured at fair
value, and are presented in Pounds Sterling, which is the currency of the
primary economic environment in which the Group operates. The principal
accounting policies adopted are set out below and have been applied
consistently to all periods presented in the consolidated financial
statements.
The preparation of financial statements requires the use of certain critical
accounting estimates. It also requires management to exercise its judgement in
the process of applying the Group's accounting policies. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and
estimates are significant to the consolidated financial statements, are
disclosed in note 4.
There are a number of standards, amendments to standards, and interpretations
which have been issued by the IASB that are effective in future accounting
periods that the Group has decided not to adopt early.
The following amendments are effective for the period beginning on or after 1
January 2024:
• IFRS 16 Leases (Amendment - Liability in a Sale and Leaseback).
• IAS 1 Presentation of Financial Statements (Amendment - Classification of
Liabilities as Current or Non-current).
• IAS 1 Presentation of Financial Statements (Amendment - Non-current
Liabilities with Covenants).
The Group is currently assessing the impact of these new accounting standards
and amendments. The Group does not believe that the amendments to IAS 1 will
have a significant impact on the classification of its liabilities, as it does
not have convertible debt instruments.
The Group does not expect any other standards issued by the IASB, but not yet
effective, to have a material impact on the Group.
Going concern
The financial statements of the Group have been prepared on a going concern
basis. At 31 March 2024, the Group had net assets of £21.3 million (2023:
£21.2 million), net current assets of £12.7 million (2023: £11.9 million)
and cash and cash equivalents of £13.9 million (2023: £13.1 million). The
Group reported an operating profit of £63,000 for the year ended 31 March
2024 (2023: £625,000), inclusive of operating exceptional income of £225,000
(2023: operating exceptional expense of £554,000), and net cash inflows from
operating activities of £0.9 million (2023: £3.5 million).
The Directors consider the going concern basis to be appropriate following
their assessment of the Group's financial position and its ability to meet its
obligations as and when they fall due. In making the going concern assessment
the Directors have considered:
● The Group's three-year base case projections based on current
strategy, trading performance, expected future profitability, liquidity,
capital solvency and dividend policy.
● The outcome of stress scenarios applied to the Group's base case
projections prior to deployment of management actions.
● The principal risks facing the Group and its systems of risk
management and internal control.
● The Group's ability to generate positive operating cash flow
during the year to 31 March 2024 and projected future cash flows.
Key assumptions that the Directors have made in preparing the base case
projections are:
● Trading commission is expected to be flat for the foreseeable
future and management fee growth expectation of 2.5% has been set, while also
having adjusted for expected client attrition in respect of the recent
self-employed investment manager departures (see Finance Director's review).
● UK base rate to remain at 5.25% for a main part of 2024 and see a
gradual reduction over the next 24 months to 4%.
● Inflation to remain below 3% for the foreseeable future.
Key stress scenarios that the Directors have then considered include:
● A "bear stress scenario": representing a 10% reduction in
management fees, trading commissions, and interest income with the consequent
reduction in revenue sharing based costs, compared to the base case in the
reporting periods ending 31 March 2025 and 31 March 2026.
● A "severe stress scenario": representing a 20% fall in management
fees, trading commissions, and interest income with the consequent reduction
in revenue sharing based costs, compared to the base case in the reporting
periods ending 31 March 2025 and 31 March 2026.
Liquidity and regulatory capital resource requirements exceed the minimum
thresholds in both the base case and bear scenarios. In the severe stress
scenario, although the Group has positive liquidity throughout the period, the
negative impact on our prudential capital ratio is such that it is projected
to fall below the regulatory requirement in February 2026. The Directors
consider the severe stress scenario to be remote in view of the prudence built
into the base case projections and that further mitigations available to the
Directors are not reflected therein. Such mitigating actions within
Management's control include reduction in proprietary risk positions, delayed
capital expenditure, further reductions in discretionary spend, not paying
planned dividends and reductions in employee headcount. Other mitigating
actions may include disposal of businesses, stronger cost reductions and
potential to seek shareholder support.
Based on the assessment of the Group's financial position and its ability to
meet its obligations as and when they fall due, the Directors do not consider
there are material uncertainties that cast significant doubt on the Group's
ability to continue as a going concern in the 12-month period from the date of
approval of the Annual Report and Accounts.
Standards and interpretations affecting the reported results or the financial
position
The accounting standards adopted are consistent with those of the previous
financial year. Amendments to existing IFRS standards did not have a material
impact on the Group's Consolidated Income Statement or the Statement of
Financial Position.
The Group does not expect standards yet to be adopted by the UK endorsement
body ("UKEB") to have a material impact in future years.
3. Significant accounting policies
Basis of consolidation
The Group financial statements consolidate the financial statements of the
Group and companies controlled by the Group (its subsidiaries) made up to 31
March each year. The Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and has the
ability to affect those returns through its powers to direct relevant
activities of the entity. Subsidiaries are fully consolidated from the date on
which control is obtained and no longer consolidated from the date that
control ceases; their results are in the consolidated financial statements up
to the date that control ceases.
Entities where the interest is 49% or less are assessed for potential
treatment as a Group company against the control tests outlined in IFRS 10,
being power over the investee, exposure or rights to variable returns and
power over the investee to affect the amount of investors' returns. At the
reporting date there were no entities where the Group had an interest below
49%.
All intercompany balances, income and expenses are eliminated on
consolidation.
Business combinations
The acquisition of subsidiaries is accounted for using the acquisition method.
The cost of the acquisition is measured at the aggregate of the fair values,
at the date of exchange, of assets given, liabilities incurred or assumed, and
equity instruments issued by the Group in exchange for control of the
acquiree. The acquiree's identifiable assets, liabilities and contingent
liabilities that meet the conditions for recognition under IFRS 3 Business
Combinations are recognised at their fair value at the acquisition date.
Acquisition-related costs are expensed as incurred.
If the business combination is achieved in stages, the acquisition date
carrying value of the acquirer's previously held equity interest in the
acquiree is re-measured to fair value at the acquisition date; any gains or
losses arising from such remeasurement are recognised in profit or loss.
Contingent consideration is classified either as equity or as a financial
liability. Amounts classified as a financial liability are subsequently
remeasured to fair value, with changes in fair value recognised in profit or
loss.
Interests in associate
An associate is an entity in which the Group has significant influence, but
not control or joint control. The Group uses the equity method of accounting
by which the equity investment is initially recorded at cost and subsequently
adjusted to reflect the investor's share of the net assets of the associate.
Intangible assets
(a) Goodwill
Goodwill arises on the acquisition of subsidiaries and represents the excess
of the consideration transferred, the amount of any non-controlling interest
in the acquiree and the acquisition-date fair value of any previous equity
interest in the acquiree over the fair value of the identifiable net assets
acquired. If the total of consideration transferred, non-controlling interest
recognised and previously held interest measured at fair value is less than
the fair value of the net assets of the subsidiary acquired, in the case of a
bargain purchase, the difference is recognised directly in the income
statement.
Goodwill is initially recognised as an asset at cost and is subsequently
measured at cost less any accumulated impairment losses. Goodwill is not
amortised but is reviewed for impairment at least annually. Any impairment is
recognised immediately in profit or loss and is not subsequently reversed in
future periods.
For the purpose of impairment testing, goodwill acquired in a business
combination is allocated to each of the cash generating units ("CGUs"), or
groups of CGUs, that is expected to benefit from the synergies of the
combination. Each unit or group of units to which the goodwill is allocated
represents the lowest level within the entity at which the goodwill is
monitored for internal management purposes. Goodwill is monitored at the
operating segment level.
Goodwill impairment reviews are undertaken annually or more frequently if
events or changes in circumstances indicate a potential impairment. The
carrying value of the CGU containing the goodwill is compared to the
recoverable amount, which is the higher of value-in-use and the fair value
less costs of disposal. Any impairment is recognised immediately as an expense
and is not subsequently reversed.
(b) Client lists
Client lists are recognised when it is probable that future economic benefits
will flow to the Group and the cost of the asset can be measured reliably
whilst the risk and rewards have also transferred into the Group's ownership.
Intangible assets classified as client lists are recognised when acquired as
part of a business combination, when separate payments are made to acquire
clients' assets by adding teams of investment managers, or when acquiring the
ownership of client relationships from retiring in-house self-employed
investment managers.
Some client list acquisitions are linked to business combination acquisitions
such as those related to the historical acquisition of Barker Poland Asset
Management LLP and others are related to the purchase of client lists related
to an individual investment manager or investment management team
recruitment-related costs.
The cost of acquired client lists and businesses generating revenue from
clients and investment managers are capitalised. These costs are amortised on
a straight-line basis over their expected useful lives of three to 20 years at
inception. The amortisation period and amortisation method for intangible
assets are reviewed at least each financial year end. All client list
intangible assets have a finite useful life. Client lists associated with
self-employed investment managers were revised in 2023 so that no client list
was amortised for periods longer than six years from 1 April 2022.
Amortisation of intangible fixed assets is included within administrative
expenses in the consolidated income statement.
At each statement of financial position date, the Group reviews the carrying
amounts of its intangible assets to determine whether there is any indication
that those assets have suffered an impairment loss. If any such indication
exists, the recoverable amount of the asset is estimated in order to determine
the extent of the impairment loss (if any). Where the asset does not generate
cash flows that are independent from other assets, the Group estimates the
recoverable amount of the cash-generating unit to which the asset belongs.
(c) Software licences
Computer software which is not an integral part of the related hardware is
recognised as an intangible asset when the Group is expected to benefit from
future use of the software and the costs are reliably measured and amortised
using the straight-line method over a useful life of up to five years.
Impairment of non-financial assets
Intangible assets that have an indefinite useful life or intangible assets not
ready to use are not subject to amortisation and are tested annually for
impairment. Assets that are subject to amortisation are reviewed for
impairment whenever events or changes in circumstances indicate that the
carrying amount may not be recoverable. An impairment loss is recognised for
the amount by which the asset's carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset's fair value less
costs of disposal and value-in-use. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are largely
independent cash inflows (cash-generating units). Prior impairments of
non-financial assets (other than goodwill) are reviewed for possible reversal
at each reporting date.
Own shares held
Own shares consist of treasury shares which are recognised at cost as a
deduction from equity shareholders' funds. Subsequent consideration received
for the sale of treasury shares is also recognised in equity with any
difference being taken to retained earnings. No gain or loss is recognised on
sale of treasury shares.
Revenues recognised under IFRS 15
Revenue from contracts with customers:
● Gross commissions on stockbroking activities are recognised on
those transactions whose trade date falls within the financial year, with the
execution of the trade being the performance obligation at that point in time.
● Management fees earned from managing various types of client
portfolios are accrued daily over the period to which they relate with the
performance obligation fulfilled over the same period.
● Fees in respect of financial services activities of Walker Crips
Financial Planning are accrued evenly over the period to which they relate
with the performance obligation fulfilled over the same period.
● Fees earned from structured investments are recognised on the date
the underlying security of the structured investment is traded and settled,
with the execution of the trade being the performance obligation at that point
in time.
● Fees earned from software offering, Software as a Service
("SaaS"), are accrued evenly over the period to which they relate with the
performance obligation fulfilled over the same period.
Other incomes:
● Interest is recognised as it accrues in respect of the financial
year.
● Dividend income is recognised when:
o The Group's right to receive payment of dividends is established;
o When it is probable that economic benefits associated with the dividend
will flow to the Group;
o The amount of the dividend can be reliably measured; and
● Gains or losses arising on disposal of trading book instruments
and changes in fair value of securities held for trading purposes are both
recognised in profit and loss.
The Group does not have any long-term contract assets in relation to customers
of any fixed and/or considerable lengths of time which require the recognition
of financing costs or incomes in relation to them.
Operating expenses
Operating expenses and other charges are provided for in full up to the
statement of financial position date on an accruals basis.
Exceptional items
To assist in understanding its underlying performance, the Group identifies
certain items of pre-tax income and expenditure and discloses them separately
in the Consolidated income statement.
Such items include:
1. profits or losses on disposal or closure of businesses;
2. corporate transaction and restructuring costs;
3. changes in the fair value of contingent non-cash consideration; and
4. non-recurring items considered individually for classification as
exceptional by virtue of their nature or size.
The separate disclosure of these items allows a clearer understanding of the
Group's trading performance on a consistent and comparable basis, together
with an understanding of the effect of non-recurring or large individual
transactions upon the overall profitability of the Group. The exceptional
items arising in the current period are explained in note 9.
Deferred income
Income received from clients in respect of future periods to the transaction
or reporting date are classified as deferred income within creditors until
such time as value has been received by the client.
Foreign currencies
The individual financial statements of each of the Group's companies are
presented in Pounds Sterling, which is the functional currency of the Group
and the presentation currency of the consolidated financial statements.
In preparing the financial statements of the individual companies,
transactions in currencies other than the entity's functional currency
(foreign currencies) are recorded at the rates of exchange prevailing on the
dates of the transactions. At each statement of financial position date,
monetary assets and liabilities that are denominated in foreign currencies are
retranslated at the rates prevailing on the balance sheet date. Exchange
differences arising on the settlement of monetary items, and on the
retranslation of monetary items, are included in the consolidated income
statement for the period.
Where consideration is received in advance of revenue being recognised, the
date of the transaction reflects the date the consideration is received.
Property, plant and equipment
Fixtures and equipment are stated at historical cost less accumulated
depreciation and provision for any impairment. Depreciation is charged so as
to write-off the cost or valuation of assets over their estimated useful lives
using the straight-line method on the following bases:
Computer hardware 33( 1)/(3)% per annum on cost
Computer software between 20% and 33( 1)/(3)%
per annum on cost
Leasehold improvements over the term of the lease
Furniture and equipment 33( 1)/(3)% per annum on cost
Right-of-use assets held under contractual arrangements are depreciated over
the lengths of their respective contractual terms, as prescribed under IFRS
16.
The gain or loss on the disposal or retirement of an asset is determined as
the difference between the sales proceeds and the carrying amount of the asset
and is recognised in income. The residual values and estimated useful life of
items within property, plant and equipment are reviewed at least at each
financial year end. Any shortfalls in carrying value are impaired immediately
through profit or loss.
Taxation
The tax expense for the period comprises current and deferred tax.
Tax is recognised in the income statement, except to the extent that it
relates to items recognised directly in equity. In this case the tax is also
recognised directly in other comprehensive income or directly in equity,
respectively.
The current income tax charge is calculated on the basis of the tax laws
enacted or substantively enacted at the end of the reporting period in the
countries where the Company's subsidiaries and associates operate and generate
taxable income. Management periodically evaluates positions taken in tax
returns with respect to situations in which applicable tax regulation is
subject to interpretation. It establishes provisions where appropriate on the
basis of amounts expected to be paid to the tax authorities.
Deferred income tax is recognised, using the liability method, on temporary
differences arising between the tax bases of assets and liabilities and their
carrying amounts in the consolidated financial statements. However, the
deferred tax is not accounted for if it arises from initial recognition of an
asset or liability in a transaction other than a business combination that, at
the time of the transaction, affects neither accounting nor taxable profit or
loss. Deferred income tax is determined using tax rates (and laws) that have
been enacted, or substantially enacted, by the end of the reporting period and
are expected to apply when the related deferred income tax asset is realised,
or the deferred income tax liability is settled.
Deferred income tax assets are recognised only to the extent that it is
probable that future taxable profit will be available against which the
temporary differences can be utilised.
Deferred income tax liabilities are provided on taxable temporary differences
arising from investments in subsidiaries, associates and joint arrangements,
except for deferred income tax liability where the timing of the reversal of
the temporary difference is controlled by the Group and it is probable that
the temporary difference will not reverse in the foreseeable future.
Generally, the Group is unable to control the reversal of the temporary
difference for associates, unless there is an agreement in place that gives
the Group the ability to control the reversal of the temporary difference not
recognised.
Deferred income tax assets are recognised on deductible temporary differences
arising from investments in subsidiaries, associates and joint arrangements
only to the extent that it is probable the temporary difference will reverse
in the future and there is sufficient taxable profit available against which
the temporary difference can be utilised.
Deferred income tax assets and liabilities are offset when there is a legally
enforceable right to offset current tax assets against current tax
liabilities, and when the deferred income tax assets and liabilities relate to
income taxes levied by the same taxation authority on either the taxable
entity or different taxable entities where there is an intention to settle the
balances on a net basis.
Financial assets and liabilities
Financial assets and liabilities are recognised in the Consolidated Statement
of Financial Position when the Group becomes a party to the contractual
provisions of the instrument.
At initial recognition, the Group measures a financial asset or financial
liability at its fair value plus or minus transaction costs. Transaction costs
of financial assets and financial liabilities carried at fair value through
profit or loss ("FVTPL") are expensed in the income statement. Immediately
after initial recognition, an expected credit loss allowance ("ECL") is
recognised for financial assets measured at amortised cost, which results in
an accounting loss being recognised in profit or loss when an asset is newly
originated.
The Group does not use hedge accounting.
a) Financial assets
Classification and subsequent measurement
The Group classifies its financial assets in the following measurement
categories:
● Fair value through profit or loss ("FVTPL");
● Fair value through other comprehensive income ("FVTOCI"); or
● Amortised cost.
Financial assets are classified as current or non-current depending on the
contractual timing for recovery of the asset. The classification depends on
the purpose for which the financial assets were acquired. Management
determines the classification of its financial assets at initial recognition.
(i) Debt instruments
Classification and subsequent measurement of debt instruments depend on:
● the Group's business model for managing the asset; and
● the cash flow characteristics of the asset.
Business model: The business model reflects how the Group manages the assets
in order to generate cash flows. That is, whether the Group's objective is
solely to collect the contractual cash flows from the assets, to collect both
the contractual cash flows and cash flows arising from the sale of assets, or
solely or mainly to collect cash flows arising from the sale of assets.
Factors considered by the Group include past experience on how the contractual
cash flows for these assets were collected, how the assets' performance is
evaluated, and how risks are assessed and managed.
Cash flow characteristics of the asset: Where the business model is to hold
assets to collect contractual cash flows, the Group assesses whether the
financial instruments' contractual cash flows represent solely payments of
principal and interest ("the SPPI test"). In making this assessment, the Group
considers whether the contractual cash flows are consistent with a basic
lending instrument.
Based on these factors, the Group classifies its debt instruments into one of
two measurement categories:
Amortised cost: Assets that are held for collection of contractual cash flows
where those cash flows represent solely payments of principal and interest
("SPPI"), and that are not designated at FVTPL, are measured at amortised
cost. Amortised cost is the amount at which the financial asset is measured at
initial recognition minus the principal repayments, plus or minus the
cumulative amortisation, using the effective interest rate method, of any
difference between that initial amount and the maturity amount, adjusted by
any ECL recognised. The effective interest rate is the rate that discounts
estimated future cash payments or receipts through the expected life of the
financial asset to the gross carrying amount. Interest income from these
financial assets is included within investment revenues using the effective
interest rate method.
Fair value through profit or loss ("FVTPL"): Assets that do not meet the
criteria for amortised cost or fair value through other comprehensive income
("FVTOCI") are measured at fair value through profit or loss.
Reclassification
The Group reclassifies debt instruments when and only when its business model
for managing those assets changes. The reclassification takes place from the
start of the first reporting period following the change.
Impairment
The Group assesses on a forward-looking basis the expected credit loss ("ECL")
associated with its debt instruments held at amortised cost. The Group
recognises a loss allowance for such losses at each reporting date. On initial
recognition, the Group recognises a 12-month ECL. At the reporting date, if
there has been a significant increase in credit risk, the loss allowance is
revised to the lifetime expected credit loss.
The measurement of ECL reflects:
● an unbiased and probability weighted amount that is determined by
evaluating a range of possible outcomes;
● the time value of money; and
● reasonable and supportable information that is available without
undue cost or effort at the reporting date about past events, current
conditions and forecasts of future economic conditions.
The Group adopts the simplified approach to trade receivables and contract
assets, which allows entities to recognise lifetime expected losses on all
assets, without the need to identify significant increases in credit risk
(i.e. no distinction is needed between 12-month and lifetime expected credit
losses).
(ii) Equity instruments
Investments are recognised and derecognised on a trade date basis where a
purchase or sale of an investment is under a contract whose terms require
delivery of the instrument within the timeframe established by the market
concerned, and are initially measured at fair value.
The Group subsequently measures all equity investments at fair value through
profit and loss. Changes in the fair value of financial assets at FVTPL are
recognised in revenue within the Consolidated Income Statement.
(iii) Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with
financial institutions, other short-term, highly liquid investments with
original maturities of three months or less that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of
changes in value. Bank overdrafts are shown within current liabilities in the
statement of financial position.
Derecognition
Financial assets are derecognised when the rights to receive cash flows from
the financial assets have expired or have been transferred and the Group has
transferred substantially all the risks and rewards of ownership.
b) Financial liabilities
Classification and subsequent measurement
Financial liabilities are classified and subsequently measured at amortised
cost.
Financial liabilities are derecognised when they are extinguished.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument
is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities.
Trade payables
Trade payables are classified at amortised cost. Due to their short-term
nature, their carrying amount is considered to be the same as their fair
value.
Bank overdrafts
Interest-bearing bank overdrafts are initially measured at fair value and
shown within current liabilities. Finance charges are accounted for on an
accrual basis in profit or loss using the effective interest rate method and
are added to the carrying amount of the instrument to the extent that they are
not settled in the period in which they arise.
Equity instruments
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options
are shown in equity as a deduction, net of tax, from the proceeds.
Where any Group company purchases the Company's equity share capital (treasury
shares), the consideration paid, including any directly attributable
incremental costs (net of income taxes) is deducted from equity attributable
to the Company's equity holders, until the shares are cancelled or reissued.
Where such shares are subsequently reissued, any consideration received, net
of any directly attributable incremental transaction costs and the related
income tax effects, is included in equity attributable to the Company's equity
holders.
Share Incentive Plan ("SIP")
The Group has an incentive policy to encourage all members of staff to
participate in the ownership and future prosperity of the Group. All employees
can participate in the SIP following three months of service. Employees may
contribute a maximum of 10% of their gross salary in regular monthly payments
(being not less than £10 and not greater than £150) to acquire Ordinary
Shares in the Parent Company (Partnership Shares). Partnership Shares are
acquired monthly.
The matching option was reinstated to one-to-one from 1 April 2023 from the
previous one-half for every Partnership Share purchased. All shares awarded
under this scheme have been purchased in the market by the Trustees of the
SIP.
Provisions
Provisions are recognised when the Group has a present obligation as a result
of a past event, and it is probable that the Group will be required to settle
that obligation. Provisions are measured at the Directors' best estimate of
the expenditure required to settle the obligation at the statement of
financial position date, and are discounted to present value where the effect
is material.
Long-term liabilities - deferred cash and shares consideration
Amounts payable to personnel under recruitment contracts in respect of the
client relationships, which transfer to the Group, are treated as long-term
liabilities if the due date for payment of cash consideration is beyond the
period of one year after the year-end date. The value of shares in all cases
is derived by a formula based on the value of client assets received in
conjunction with the prevailing share price at the date of issue which in turn
determines the number of shares issuable.
Pension costs
The Group contributes to defined contribution personal pension schemes for
selected employees. For defined contribution schemes, the Group pays
contributions to publicly or privately administered pension insurance plans on
a mandatory, contractual or voluntary basis. The Group has no further payment
obligations once the contributions have been paid. The contributions are
recognised as employee benefit expenses when they are due. Prepaid
contributions are recognised as an asset to the extent that a cash refund or a
reduction in the future payments is available. The contribution rate is based
on annual salary and the amount is charged to the income statement on an
accrual basis.
Dividends paid
Equity dividends are recognised when they become legally payable. Dividend
distribution to the Company's shareholders is recognised as a liability in the
Group's financial statements in the period in which the dividends are approved
by the Company's shareholders. There is no requirement to pay dividends unless
approved by the shareholders by way of written resolution where there is
sufficient cash to meet current liabilities, and without detriment of any
financial covenants, if applicable.
Leases
The Group leases various offices, software and equipment that are recognised
under IFRS 16. The Group's lease contracts are typically made for fixed
periods of two to 10 years and extension and termination options enabling
maximise operational flexibility are included in a number of property and
software leases across the Group.
All leases are accounted for by recognising a right-of-use asset and a lease
liability except for:
● Leases of low value assets; and
● Leases with a duration of 12 months or less.
Payments associated with short-term leases and leases of low-value assets are
recognised on a straight-line basis as an expense in profit or loss.
Short-term leases are leases with a lease term of 12 months or less. Low-value
assets comprise IT equipment and small items of office furniture.
Leases are recognised as a right-of-use asset and a corresponding liability at
the date at which the leased asset is available for use by the Group. Each
lease payment is allocated between the liability and finance cost. The finance
cost is charged to profit or loss over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of the liability
for each period. The right-of-use assets are depreciated over the shorter of
the asset's useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a
present value basis. Lease liabilities include the net present value of the
following lease payments:
● fixed payments (including in-substance fixed payments), less any
lease incentives receivable;
● variable lease payments that are based on an index or a rate;
● amounts expected to be payable by the lessee under residual value
guarantees;
● the exercise price of a purchase option if the lessee is
reasonably certain to exercise that option; and
● payments of penalties for terminating the lease, if the lease term
reflects the lessee exercising that option.
The lease payments are discounted using the interest rate implicit in the
lease. If that rate cannot be readily determined, which is generally the case
for leases held by the Group, the lessee's incremental borrowing rate is used.
To determine the incremental borrowing rate, the Group:
● where possible, uses recent third-party financing received by the
individual lessee as a starting point, adjust to reflect changes in financing
conditions since third-party financing was received;
● uses a build-up approach that starts with a risk-free interest
rate adjusted for credit risk for leases held by the Group, which does not
have recent third-party financing; and
● make adjustments specific to the lease, for example term, country,
currency and security.
Lease payments are allocated between principal and finance cost. The finance
cost is charged to profit and loss over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of the liability
for each period.
Right-of-use assets are measured at cost comprising the following:
● the amount of the initial measurement of lease liability;
● any lease payments made at or before the commencement date less
any lease incentives received;
● any initial direct costs; and
● restoration costs.
Right-of-use assets are depreciated over the shorter of the lease term and the
useful economic life of the underlying asset on a straight-line basis.
The Group does not have any leasing activities acting as a lessor.
Earnings per share
Basic earnings per share is calculated by dividing:
● the profit attributable to owners of the Company, excluding any
costs of servicing equity other than ordinary shares;
● by the weighted average number of ordinary shares outstanding
during the financial year, adjusted for bonus elements in ordinary shares
issued during the year and excluding treasury shares (note 15).
There are currently no obligations present that could have a dilutive effect
on ordinary shares.
Share-based payments
Share-based payments are remuneration payments to selected employees that take
the form of an award of shares in Walker Crips Group plc. Employees are not
able to exercise such awards in full until a period of two to five years,
based on the terms of each individual award (the vesting period).
Equity-settled share-based payments to employees are measured at fair value of
the equity instruments at the date of grant. The fair value excludes the
effect of non-market-based vesting conditions. Details regarding the
determination of the fair value of equity-settled share-based transactions are
set out in note 36.
As the share-based payment awards are for fully paid free shares, fair value
is measured as the market value of the shares at each grant date.
The fair value determined at the grant date of the equity-settled share-based
payments is expensed on a straight-line basis over the vesting period, based
on the Group's estimate of the number of shares that will eventually vest. At
each reporting date, the Group revises its estimate of the shares expected to
vest as a result of the effect of non-market based vesting conditions. The
impact of the revision of the original estimates, if any, is recognised in the
Income Statement such that the cumulative expense reflects the revised
estimate.
4. Key sources of estimation uncertainty and judgements
The Group makes certain estimates and assumptions regarding the future.
Estimates and judgements are continually evaluated based on historical
experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances. In the future, actual
experience may differ from these estimates and assumptions. The estimates
and assumptions that have a significant risk of causing a material adjustment
to the carrying amounts of assets and liabilities within the next financial
year are discussed below.
Impairment of goodwill - estimation and judgement
Determining whether goodwill is impaired requires an estimation of the fair
value less costs to sell and the value-in-use of the cash-generating units to
which goodwill has been allocated. The fair value less costs to sell involves
estimation of values based on the application of earnings multiples and
comparison to similar transactions. The value-in-use calculation requires the
entity to estimate the future cash flows expected to arise from the
cash-generating unit and apply a discount rate in order to calculate present
value. The assumptions used and inputs involve judgements and create
estimation uncertainty. These assumptions have been stress-tested as described
in note 16. The carrying amount of goodwill at the balance sheet date was
£4.4 million (2023: £4.4 million) as shown in note 16.
Other intangible assets - judgement
Acquired client lists are capitalised based on current fair values. When the
Group purchases client relationships from other corporate entities, a
judgement is made as to whether the transaction should be accounted for as a
business combination, or a separate purchase of intangible assets. In making
this judgement, the Group assesses the acquiree against the definition of a
business combination in IFRS 3. The useful lives are estimated by assessing
the historic rates of client retention, the ages and succession plans of the
investment managers who manage the clients and the contractual incentives of
the investment managers. There were no new purchases of client lists during
the year.
Key assumptions in this regard consist of the following:
1. The continuing going concern of the Company;
2. Life expectancy of clients based on the Office for National Statistics;
3. Succession plans in place for staff and investment managers;
4. Amounts of AUMA are consistent on average;
5. A growth rate of client list AUMA of a conservative 2%; and
6. A discount rate of 12%.
Provisions - estimation and judgement
Provisions are recognised when the Group has a present obligation as a result
of a past event, and it is probable that the Group will be required to settle
that obligation. Provisions are measured at the Directors' best estimate of
the expenditure required to settle the obligation at the statement of
financial position date, and are discounted to present value where the effect
is material.
IFRS 16 "Leases" - estimation and judgement
IFRS 16 requires certain judgements and estimates to be made and those
significant judgements are explained below.
The Group has opted to use single discount rates for leases with reasonably
similar characteristics. The discount rates used have had an impact on the
right-of-use assets' values, lease liabilities on initial recognition and
lease finance costs included within the income statement.
Where a lease includes the option for the Group to extend the lease term, the
Group has exercised the judgement, based on current information, that such
leases will be extended to the full length available, and this is included in
the calculation of the value of the right-of-use assets and lease liabilities
on initial recognition and valuation at the reporting date.
Provision for dilapidations - estimation and judgement
The Group has made provisions for dilapidations under six leases for its
offices. The Group entered into one new property lease in the period, which
was the renewal of an existing lease that had ended in the period. The amounts
of the provisions are, where possible, estimated using quotes from
professional building contractors. The property, plant and equipment elements
of the dilapidations are depreciated over the terms of their respective
leases. The obligations in relation to dilapidations are inflated using an
estimated rate of inflation and discounted using appropriate gilt rates to
present value. The change in liability attributable to inflation and
discounting is recognised in interest expense.
Provision for stamp duty liability - estimation and judgement
The Group, in the previous year, identified an obligation in respect of stamp
duty reserve tax which has arisen over a number of years. An initial provision
of £878,000 was made in the previous year and subsequently upon management
investigation and external tax advice, the liability including professional
fees outstanding, is estimated to be £355,000 which is fully provided in the
financial statements (see note 26).
5. Revenue
An analysis of the Group's revenue is as follows:
2024 2023
Broking Non- Total Broking Non- Total
income broking £'000 income broking £'000
£'000 income £'000 income
£'000 £'000
Stockbroking commission 4,934 - 4,934 6,008 - 6,008
Fees and other revenue * - 24,189 24,189 - 23,665 23,665
Investment Management 4,934 24,189 29,123 6,008 23,665 29,673
Wealth Management, - 2,451 2,451 - 1,939 1,939
Financial Planning & Pensions
Revenue 4,934 26,640 31,574 6,008 25,604 31,612
Investment revenue (see note 10) - 446 446 - 95 95
Total income 4,934 27,086 32,020 6,008 25,699 31,707
% of total income 15.4% 84.6% 100.0% 18.9% 81.1% 100.0%
* Includes £5.8 million (2023: £3.2 million) of interest income from
managing client trading cash funds.
Timing of revenue recognition
The following table presents operating income analysed by the timing of
revenue recognition of the operating segment providing the service:
2024 Investment Financial Planning & Wealth SaaS Consolidated
Management Management £'000 year ended
£'000 £'000 31 March
2024
£'000
Revenue from contracts with customers
Products and services transferred at a point in time 8,176 408 17 8,601
Products and services transferred over time 14,959 2,043 - 17,002
Other revenue
Products and services transferred at a point in time 153 - - 153
Products and services transferred over time 5,818 - - 5,818
29,106 2,451 17 31,574
2023 Investment Financial Planning & Wealth Consolidated
Management Management year ended
£'000 £'000 SaaS 31 March
£'000 2023
£'000
Revenue from contracts with customers
Products and services transferred at a point in time 10,104 272 16 10,392
Products and services transferred over time 16,295 1,666 - 17,961
Other revenue
Products and services transferred at a point in time 75 1 - 76
Products and services transferred over time 3,183 - - 3,183
29,657 1,939 16 31,612
6. Segmental analysis
For segmental reporting purposes, the Group currently has three operating
segments; Investment Management, being portfolio-based transaction execution
and investment advice; Financial Planning, being financial planning, wealth
management and pensions administration; and Software as a Service ("SaaS")
comprising provision of regulatory and admin software and bespoke cloud
software to companies. Unallocated corporate expenses, assets and liabilities
are not considered to be allocatable accurately, or fairly, under any known
basis of allocation and are therefore disclosed separately.
Walker Crips Investment Management's activities focus predominantly on
investment management of various types of portfolios and asset classes.
Walker Crips Financial Planning provides advisory and administrative services
to clients in relation to their wealth management, financial planning, life
insurance, inheritance tax and pension arrangements.
EnOC Technologies Limited ("EnOC") provides regulatory and admin software to
their business partners, including all of the Group's regulated entities. Fees
payable by subsidiary companies to EnOC have been eliminated on consolidation
and are excluded from segmental analysis.
Revenues between Group entities, and in turn reportable segments, are excluded
from the segmental analysis presented below.
The Group does not derive any revenue from geographical regions outside of the
United Kingdom.
Investment Financial Planning & Wealth SaaS Consolidated
2024 Management Management £'000 year ended
£'000 £'000 31 March
2024
£'000
Revenue
Revenue from contracts with customers 23,135 2,451 17 25,603
Other revenue 5,971 - - 5,971
Total revenue 29,106 2,451 17 31,574
Results
Segment result 1,632 (629) (490) 513
Unallocated corporate expenses (450)
Operating profit 63
Investment revenue 446
Finance costs (122)
Profit before tax 387
Tax (19)
Profit after tax 368
Investment Financial Planning & Wealth SaaS Consolidated
2024 Management Management £'000 year ended
£'000 £'000 31 March
2024
£'000
Other information
Capital additions 463 24 - 487
Depreciation 261 27 - 288
Statement of financial positions
Assets
Segment assets 54,333 1,279 406 56,018
Unallocated corporate assets 1,304
Consolidated total assets 57,322
Liabilities
Segment liabilities 37,984 315 242 38,541
Unallocated corporate liabilities (2,540)
Consolidated total liabilities 36,001
Investment Financial Planning & Wealth SaaS Consolidated
2023 Management Management £'000 year ended
£'000 £'000 31 March
2023
£'000
Revenue
Revenue from contracts with customers 26,399 1,938 16 28,353
Other revenue 3,258 1 - 3,259
Total revenue 29,657 1,939 16 31,612
Results
Segment result 1,553 (310) (128) 1,115
Unallocated corporate expenses (490)
625
Investment revenue 95
Finance costs (88)
Profit before tax 632
Tax (214)
Profit after tax 418
Investment Financial Planning & Wealth SaaS Consolidated
2023 Management Management £'000 year ended
£'000 £'000 31 March
2023
£'000
Other information
Capital additions 368 10 - 378
Depreciation 273 58 - 331
Statement of financial positions
Assets
Segment assets 57,255 1,163 406 58,824
Unallocated corporate assets 4,256
Consolidated total assets 63,080
Liabilities
Segment liabilities 39,546 247 329 40,122
Unallocated corporate liabilities 1,792
Consolidated total liabilities 41,914
The following table analyses the above segmental breakdown without cancelling
intercompany transactions to show the value of each segment to the Group
itself. Since EnOC acquired the intellectual property of the Advance Walkers
Online platform on 1 April 2023, it has become a profitable entity, reflecting
its value to the Group.
Investment Financial Planning & Wealth SaaS Consolidated
2024 Management Management £'000 year ended
£'000 £'000 31 March
2024
£'000
Revenue
Revenue from contracts with customers 23,135 2,544 609 26,288
Other revenue 5,971 - - 5,971
Total revenue 29,106 2,544 609 32,259
Results
Segment result 947 (536) 102 513
Unallocated corporate expenses (450)
63
Investment revenue 446
Finance costs (122)
Profit before tax 387
Tax (19)
Profit after tax 368
7. Commissions and fees paid
Commissions and fees paid comprises:
2024 2023
£'000 £'000
To authorised external agents - 3
To self-employed certified persons 5,769 7,261
5,769 7,264
8. Profit for the year
Profit for the year on continuing operations has been arrived at after
charging:
2024 2023
£'000 £'000
Depreciation of property, plant and equipment (see note 18) 288 331
Depreciation of right-of-use assets (see note 19) 636 771
Amortisation of intangibles (see note 17) 1,011 970
Staff costs (see note 12) 16,898 14,475
Recharge of staff costs (278) (248)
Settlement costs 1,029 994
Communications 1,385 1,387
Computer expenses 1,000 831
Other expenses 3,736 3,442
Auditor's remuneration 262 216
25,967 23,169
A more detailed analysis of auditor's remuneration is provided below:
2024 2024 2023 2023
£'000 % £'000 %
Audit services
Fees payable to the Company's auditor for the audit of its annual accounts 113 43 84 39
The audit of the Company's subsidiaries pursuant to legislation - current year 119 45 119 55
Non-audit services
FCA client assets reporting 30 12 13 6
262 100 216 100
9. Exceptional items
Certain amounts are disclosed separately in order to present results which are
not distorted by significant items of income and expenditure due to their
nature and materiality.
2024 2023
£'000 £'000
Exceptional items included within operating profit
SDRT liability to HMRC (225) 131
Accelerated amortisation - 423
Total exceptional items (225) 554
In the current year, the final SDRT liability to HMRC has been disclosed to
HMRC, which HMRC is examining. This adjustment reflects the restatement of the
final expected liability, net of actual and estimated professional costs.
In the prior year, the following items were classified as exceptional items
due to their materiality and non-recurring nature. These were:
a) SDRT liability to HMRC resulting from a system monitoring error where
stamp duty was omitted from a small number of client contracts.
b) Amortisation of client list intangible assets of £423,000.
10. Investment revenue
Investment revenue comprises:
2024 2023
£'000 £'000
Interest on bank deposits 427 48
Dividends from equity investment 19 47
446 95
11. Finance costs
Finance costs comprises:
2024 2023
£'000 £'000
Interest on lease liabilities (99) (86)
Interest on dilapidation provisions (2) 3
Interest on overdue liabilities (21) (5)
(122) (88)
12. Staff costs
Particulars of employee costs (including Directors) are as shown
below:
2024 2023
£'000 £'000
Wages and salaries 13,891 11,943
Social security costs 1,328 1,262
Share incentive plan 43 60
Other employment costs 1,636 1,210
16,898 14,475
Staff costs do not include commissions payable, as these costs are included in
total commissions payable to self-employed certified persons disclosed in note
7. At the end of the year there were 26 certified self-employed account
executives (2023: 32).
The average number of staff employed during the year was:
2024 2023
Number Number
Executive Directors 2 2
Certification and approved staff 60 49
Other staff 157 155
219 206
The table incorporates the staff classification in accordance with the Senior
Managers and Certification Regime ("SM&CR").
13. Taxation
The tax charge is based on the profit for the year of continuing operations
and comprises:
2024 2023
£'000 £'000
UK corporation tax at 25% (2023: 19%) 218 228
Prior year adjustments (175) (7)
Origination and reversal of timing differences during the current period (24) (46)
19 175
Corporation tax is calculated at 25% (2023: 19%) of the estimated assessable
profit for the year.
The charge for the year can be reconciled to the profit per the income
statement as follows:
2024 2023
£'000 £'000
Profit before tax 387 632
Tax on profit on ordinary activities at the standard rate UK corporation tax 97 120
rate of 25% (2023: 19%)
Effects of:
Tax rate changes for deferred tax - (8)
Expenses not deductible for tax purposes 9 64
Prior year adjustment * (175) (14)
Fixed asset differences 168 65
Non-taxable income ** (93) -
Other 13 (13)
19 214
* The prior year adjustment only relates to tax disclosure where the Group
received capital allowances on capital expenditure that were previously not
available due to expenditure recorded in the loss-making parent entity. Since
the assets were transferred to a profit-making subsidiary on 1 April 2022,
capital allowances claimed with HMRC and deductions received.
** This relates to the above matter where a landlord contribution write-down
was incorrectly taxed in prior years, which was subsequently by our tax
advisers and reversed, with the credit recognised in the current year.
Current tax has been provided at the rate of 25%. Deferred tax has been
provided at 25% (2023: 25%).
The exceptional credit of £225,000 (2023: the exceptional charge of
£554,000), disclosed separately on the consolidated income statement, is
taxable to the value of £56,250 (2023: tax deductible of £105,000) of
corporation tax. Classifying these credits/costs as exceptional has no effect
on the tax liability.
14. Dividends
When determining the level of proposed dividend in any year a number of
factors are taken into account including levels of profitability, future cash
commitments, investment needs, shareholder expectations and prudent buffers
for maintaining an adequate regulatory capital surplus. Amounts recognised as
distributions to equity holders in the period:
2024 2023
£'000 £'000
Final dividend for the year ended 31 March 2023 of 0.25p (2022: 1.20p) per 107 511
share
Interim dividend for the year ended 31 March 2024 of 0.25p (2023: 0.25p) per 106 106
share
213 617
Proposed final dividend for the year ended 31 March 2024 of 0.25p (2023: 106 106
0.25p) per share
The proposed final dividends are subject to approval by shareholders at the
Annual General Meeting and have not been included as liabilities in these
financial statements.
15. Earnings per share
The calculation of basic earnings per share for continuing operations is based
on the post-tax profit for the financial year of £368,000 (2023: £418,000)
and divided by 42,577,328 (2023: 42,577,328) Ordinary Shares of 6(2)/(3)
pence, being the weighted average number of Ordinary Shares in issue during
the year.
No dilution to earnings per share in the current year or in the prior year.
The calculation of the basic earnings per share is based on the following
data:
2024 2023
£'000 £'000
Earnings for the purpose of basic earnings per share
being net profit attributable to equity holders of the Parent Company 368 418
Number of shares
2024 2023
Number Number
Weighted average number of Ordinary Shares for the purposes of basic earnings 42,577,328 42,577,328
per share
This produced basic earnings per share of 0.86 pence (2023: 0.98 pence).
16. Goodwill
£'000
Cost
At 1 April 2022 7,056
At 1 April 2023 7,056
At 31 March 2024 7,056
Accumulated impairment
At 1 April 2022 2,668
At 1 April 2023 2,668
Impaired during the year -
At 31 March 2024 2,668
Carrying amount
At 31 March 2024 4,388
At 31 March 2023 4,388
Goodwill acquired in a business combination is allocated, at acquisition, to
the cash-generating units ("CGUs") that are expected to benefit from that
business combination or intangible asset. The carrying amount of goodwill has
been allocated as follows:
2024 2023
£'000 £'000
London York Fund Managers Limited CGU ("London York") 2,901 2,901
Barker Poland Asset Management LLP CGU ("BPAM") 1,487 1,487
4,388 4,388
The recoverable amounts of the CGUs have been determined based upon
value-in-use calculations for the London York CGU and fair value, less costs
of disposal for the BPAM CGU.
The London York computation was based on discounted five-year cash flow
projections and terminal values. The key assumptions for these calculations
are a pre-tax discount rate of 12%, terminal growth rates of 2% and the
expected changes to revenues and costs during the five-year projection period
based on discussions with senior management, past experience, future
expectations in light of anticipated market and economic conditions,
comparisons with our peers and widely available economic and market forecasts.
The pre-tax discount rate is determined by management based on current market
assessments of the time value of money and risks specific to the London York
CGU. The base value-in-use cash flows were stress tested for an increase in
discount rates to 16% and a 20% fall in net inflows resulting in no
impairment.
The discount rate would need to increase above 28% for the London York CGU
value-in-use to equal the respective carrying values. Revenues would need to
fall by 63.7% per annum in present value terms for the London York CGU
value-in-use to equal the respective carrying values.
The BPAM CGU recoverable amount was assessed, in accordance with IAS 36, by
adopting the higher method of the fair value less cost of disposal to
determine the recoverable amount (as opposed to the lower value-in-use). The
recoverable amount at the year-end calculated for the BPAM CGU, determined by
the fair value less cost of disposal, exceeded that produced by the
value-in-use calculation. The fair value less cost of disposal amounted to
£13 million (2023: £10 million) with headroom, after selling costs, of £9.8
million (2023: £6.7 million) after applying price earnings multiples based on
the average of the Group's and its peers' published results. Accordingly, this
measurement is classified as fair value hierarchy Level 3 (Note 20) having
used valuation techniques not based on directly observable market data. A 36%
decrease in BPAM's profit after tax across five years would result in reducing
the headroom to a negligible value.
17. Other intangible assets
Software Client lists Total
licences £'000 £'000
£'000
Cost
At 1 April 2022 2,899 10,697 13,596
Reclassification of assets relating to IFRS 16 (22) - (22)
Additions in the year 45 266 311
At 1 April 2023 2,922 10,963 13,885
Additions in the year 104 - 104
At 31 March 2024 3,026 10,963 13,989
Amortisation
At 1 April 2022 2,644 5,200 7,844
Charge for the year 137 833 970
Charge for the year - exceptional cost (note 9) - 423 423
At 1 April 2023 2,781 6,456 9,237
Charge for the year 100 911 1,011
At 31 March 2024 2,881 7,367 10,248
Carrying amount
At 31 March 2024 145 3,596 3,741
At 31 March 2023 141 4,507 4,648
The intangible assets are amortised over their estimated useful lives in order
to determine amortisation rates. "Client lists" are assessed on an
asset-by-asset basis and are amortised over periods of three to 20 years and
"Software licences" are amortised over five years.
There are no indications that the value attributable to client lists or
software licences should be further impaired.
18. Property, plant and equipment
Owned fixed assets Leasehold Computer Total
improvement, hardware £'000
furniture and £'000
equipment
£'000
Cost
At 1 April 2022 2,753 1,590 4,343
Additions in the year 99 52 151
At 1 April 2023 2,852 1,642 4,494
Additions in the year 59 55 114
At 31 March 2024 2,911 1,697 4,608
Accumulated depreciation
1 April 2022 1,633 1,541 3,174
Charge for the year 297 34 331
1 April 2023 1,930 1,575 3,505
Charge for the year 258 30 288
At 31 March 2024 2,188 1,605 3,793
Carrying amount
At 31 March 2024 723 92 815
At 31 March 2023 922 67 989
19. Right-of-use assets
Computer Computer
Offices software hardware Total
£'000 £'000 £'000 £'000
Cost
1 April 2023 4,650 1,067 95 5,812
Additions 100 271 - 371
At 31 March 2024 4,750 1,338 95 6,183
Accumulated depreciation
1 April 2023 2,486 906 80 3,472
Charge for the year 480 141 15 636
At 31 March 2024 2,966 1.047 95 4,108
Carrying amount
At 31 March 2024 1,784 291 - 2,075
At 31 March 2023 2,164 161 15 2,340
20. Investments - fair value through profit or loss
Non-current asset investments
The Group did not hold any non-current asset investments at the reporting
date.
Current asset investments
As at As at
31 March 31 March
2024 2023
£'000 £'000
Trading investments
Investments - fair value through profit or loss 538 1,276
Financial assets at fair value through profit or loss represent investments in
equity securities and collectives that present the Group with opportunity for
return through dividend income, interest and trading gains. The fair values of
these securities are based on quoted market prices and the Group is able to
liquidate these assets at short notice.
The following provides an analysis of financial instruments that are measured
after initial recognition at fair value, grouped into Levels 1 to 3 based on
the degree to which the fair value is observable:
Level 1 fair value measurements are those derived from quoted prices
(unadjusted) in active markets for identical assets or liabilities. The
Group's financial assets held at fair value through profit and loss under
current assets fall within this category;
Level 2 fair value measurements are those derived from inputs other than
quoted prices included within Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from
prices). The Group does not hold financial instruments in this category; and
Level 3 fair value measurements are those derived from valuation techniques
that include inputs for the asset or liability that are not based on
observable market data (unobservable inputs). The Group does not hold
financial instruments in this category.
Level 1 Level 2 Level 3 Total
£'000 £'000 £'000 £'000
At 31 March 2024
Financial assets held at fair value through profit and loss 538 - - 538
At 31 March 2023
Financial assets held at fair value through profit and loss 1,276 - - 1,276
Further IFRS 13 disclosures have not been presented here as the balance
represents 0.939% (2023: 2.022%) of total assets. There were no transfers of
investments between any of the levels of hierarchy during the year.
21. Trade and other receivables
2024 2023
£'000 £'000
Amounts falling due within one year:
Due from clients, brokers and recognised stock exchanges at amortised cost 24,630 28,554
Other debtors at amortised cost 1,191 2,148
Prepayments and accrued income 6,081 5,599
31,902 36,301
The Group acts as an agent for clients on the trading of their investments. As
an agent, the Group only recognises amounts due from or to clients, brokers
and recognised stock exchanges as trade receivables and trade payables (see
note 25) respectively. As a result, no underlying investments are recognised
on the Group's consolidated statement of financial position.
22. Cash and cash equivalents
2024 2023
£'000 £'000
Cash deposits held at bank, repayable on demand without penalty 13,863 13,138
13,863 13,138
Cash and cash equivalents do not include deposits of client monies placed by
the Group with banks and building societies in segregated client bank accounts
(free money and settlement accounts). All such deposits are designated by the
banks and building societies as clients' funds and are not available to
satisfy any liabilities of the Group.
The amount of such net deposits which are not included in the consolidated
statement of financial position at 31 March 2024 was £213,695,000 (2023:
£267,258,000).
The credit quality of banks holding the Group's cash at 31 March 2024 is
analysed below with reference to credit ratings awarded by Fitch.
2024 2023
£'000 £'000
A+ 5,676 5,400
AA- 8,187 7,738
13,863 13,138
23. Deferred tax liability
Capital Short-term Total
allowances temporary £'000
£'000 differences
and other
£'000
At 1 April 2022 (5) (409) (414)
Use of loss brought forward - 2 2
Debit to the income statement - 41 41
At 1 April 2023 (5) (366) (371)
Use of loss brought forward - - -
Debit to the income statement (2) 113 111
At 31 March 2024 (7) (253) (260)
Deferred income tax assets are recognised for tax loss carried forward to the
extent that the realisation of the related tax benefit through future taxable
profits is probable. The Group did not recognise deferred income tax assets
(2023: £12,362) in respect of losses amounting to £nil (2023: £65,063) that
can be carried forward against future taxable income.
24. Financial instruments and risk profile
Financial risk management
The Board has overall responsibility for the determination of the Group's risk
management objectives and policies and, whilst retaining ultimate
responsibility for them, it has delegated the authority for designing and
operating processes that ensure the effective implementation of the objectives
and policies to the Group's Risk function. The Board receives periodic
reports from the Group Risk Team through which it reviews the effectiveness of
the processes put in place and the appropriateness of the objectives and
policies it sets.
Procedures and controls are in place to identify, assess and ultimately
control the financial risks faced by the Group arising from its use of
financial instruments. Steps are taken to mitigate identified risks with
established and effective procedures and controls, operating systems,
management information and training of staff.
The Group's risk appetite, along with the procedures and controls mentioned
above, are laid out in the Group's Internal capital adequacy and risk
assessment (ICARA).
The overall risk appetite for the Group is considered by Management to be low,
despite operating in a marketplace where financial risk is inherent in
investment management and financial services.
The overall objective of the Board is to set policies that seek to reduce risk
as far as possible without unduly affecting the Group's competitiveness and
flexibility. The Group considers its financial risks arising from its use of
financial instruments to fall into three main categories:
(i) credit risk;
(ii) liquidity risk; and
(iii) market risk.
Financial risk management is a central part of the Group's strategic
management which recognises that an effective risk management programme can
increase a business's chances of success and reduce the possibility of
failure. Continual assessment, monitoring and updating of procedures and
benchmarks are all essential parts of the Group's risk management strategy.
(i) Credit risk management practices
The Group's credit risk is the risk of loss through default by a counterparty
and, accordingly, the Group's definition of default is primarily attributable
to its trade receivables or pledged collateral which is the risk that a
client, market counterparty or recognised stock exchange will be unable to pay
amounts to settle a trade in full when due. Other credit risks, such as free
delivery of securities or cash, are not deemed to be significant. Significant
changes in the economy or a particular sector could result in losses that are
different from those that the Group has provided for at the year-end date.
All financial assets at the year-end were assessed for credit impairment and
no material amounts have arisen having evaluated the age of overdue debtors,
the quality of recourse to third parties and the availability of mitigation
through the disposal of liquid collateral in the form of marketable
securities. The Group's write-off policy is driven by the historic dearth of
instances where material irrecoverable losses have been incurred. Where the
avenues of recourse and mitigation outlined above have not been successful,
the outstanding balance, or residual balance if sale proceeds do not fully
cover an exposure, will be written off.
The Board is responsible for oversight of the Group's credit risk. The Group
accepts a limited exposure to credit risk but aims to mitigate and minimise
the risk through various methods. There is no material concentrated credit
risk as the exposures are spread across a substantial number of clients and
counterparties.
Trade receivables (includes settlement balances)
Settlement risk arises in any situation where a payment of cash or transfer of
a security is made in the expectation of a corresponding delivery of a
security or receipt of cash. Settlement balances arise with clients, market
counterparties and recognised stock exchanges.
In the vast majority of cases, control of the stock purchased will remain with
the Group until client monetary balances are fully settled.
Where there is an absence of securities collateral, clients are usually
required to hold sufficient funds in their managed deposit account prior to
the trade being conducted. Holding significant amounts of client money helps
the Group to manage credit risks arising with clients. Many of our clients
also hold significant amounts of stock and other securities in our nominee
subsidiary company, providing additional security should a specific
transaction fail to be settled and the proceeds of such securities disposed of
can be used to settle all outstanding obligations.
In addition, the client side of settlement balances are normally fully
guaranteed by our commission-sharing certified persons who conduct
transactions and manage the relationships with our mutual clients.
Exposures to market counterparties also arise in the settlement of trades or
when collateral is placed with them to cover open trading positions. Market
counterparties are usually other FCA-regulated firms and are considered
creditworthy, some reliance being placed on the fact that other regulated
firms would be required to meet the stringent capital adequacy requirements of
the FCA.
Maximum exposure to credit risk:
2024 2023
£'000 £'000
Cash 13,863 13,138
Trade receivables 24,630 28,554
Other debtors 1,191 2,148
Accrued interest income 767 591
40,451 44,431
An ageing analysis of the Group's financial assets is presented in the
following table:
Current 0-1 2-3 Over 3 Carrying
At 31 March 2024 £'000 month months months value
£'000 £'000 £'000 £'000
Trade receivables 22,789 1,524 51 266 24,630
Cash and cash equivalent 13,863 - - - 13,863
Other debtors 1,188 3 - - 1,191
Accrued interest income 767 - - - 767
38,607 1,527 51 266 40,451
Expected credit loss
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses using a lifetime expected credit loss provision for trade receivables
and contract assets. To measure expected credit losses on a collective basis,
trade receivables and contract assets are grouped based on similar credit risk
and ageing. The contract assets have similar risk characteristics to the trade
receivables for similar types of contracts.
The Group undertakes a daily assessment of credit risk which includes
monitoring of client and counterparty exposure and credit limits. New clients
are individually assessed for their creditworthiness using external ratings
where available and all institutional relationships are monitored at regular
intervals.
As at 31 March 2024, the Directors of the Company reviewed and assessed the
Group's existing assets for impairment using the IFRS 9 simplified approach to
measuring expected credit losses using a lifetime expected credit loss
provision for trade receivables and contract assets and no additional
impairments have been recognised on application and no material defaults are
anticipated within the next 12 months.
Concentration of credit risk
In addition, daily risk management procedures to actively monitor
disproportionately large trades by a customer or market counterparty are in
place. The financial standing, pattern of trading, type and size of security
or instrument traded are amongst the factors taken into consideration.
(ii) Liquidity risk
Liquidity risk arises from the Group's management of working capital and the
finance charges and principal repayments on its debt instruments. It is the
risk that the Group will encounter difficulty in meeting its financial
obligations as they fall due. The Group's policy is to maintain sufficient
cash to allow it to meet its liabilities when they become due.
Historically, sufficient underlying cash has been prevalent in the business
for many years as the Group is normally cash generative. The risk of
unexpected large cash outflows could arise where significant amounts are being
settled daily of which only a fraction forms the commission earned by the
Group. This could be due to clients settling late or bad deliveries to the
market or CREST resulting in a payment delay from the market side. The Group
also commits in advance to product providers to purchase future structured
product issues at the future market price. The Group then markets such
products in advance of the issue, which under normal business conditions means
there is limited liquidity and market risk at the time of product launch.
The Group's policy with regard to liquidity risk is to carefully monitor
balance sheet structure and borrowing limits, including:
● monitoring of cash positions on a daily basis;
● exercising strict control over the timely settlement of trade
debtors; and
● exercising strict control over the timely settlement of market
debtors and creditors.
The Group holds its cash and cash equivalents spread across a number of highly
rated financial institutions. All cash and cash equivalents are short-term
highly liquid investments that are readily convertible to known amounts of
cash without penalty.
The Group and its subsidiaries Walker Crips Investment Management Limited and
Barker Poland Asset Management LLP are in scope of the FCA's basic liquid
assets requirements and these are monitored by management on a daily basis.
The table below analyses the Group's cash outflow based on the remaining
period to the contractual maturity date.
2024 Less than Total
1 year £'000
£'000
Trade and other payables 31,961 31,961
31,961 31,961
2023
Trade and other payables 36,849 36,849
36,849 36,849
As at 31 March 2024 the Group had commitments in respect of future structured
product issues of £8.3 million (2023: 10.0 million)
(iii) Market risk
Market risk is the risk that changes in market prices such as foreign exchange
rates or equity prices, on financial assets and liabilities will affect the
Group's results. They relate to price risk on fair value through profit or
loss trading investments and are subject to ongoing monitoring.
Fair value of financial instruments
The fair values of the Group's financial assets and liabilities are not
materially different from their carrying values as they are valued at their
realisable values. The Group's financial assets that are classed as current
asset and non-current asset investments (fair value through profit or loss)
have been revalued at 31 March 2024 using closing market prices.
A 10% fall in the value of trading financial instruments would, in isolation,
result in a pre-tax decrease to net assets of £53,800 (2023: £127,600). A
10% rise would have an equal and opposite effect.
The impact of foreign exchange and interest rate risk is not material and is
therefore not presented.
25. Trade and other payables
2024 2023
£'000 £'000
Amounts owed to clients, brokers and recognised stock exchanges 24,315 28,012
Other creditors 2,704 4,028
Contract liability - 9
Accrued expenses 4,942 4,800
31,961 36,849
Trade creditors and accruals comprise amounts outstanding for
investment-related transactions, to customers or counterparties, and ongoing
costs. The average credit period taken for purchases in relation to costs is 9
days (2023: 11 days). The Directors consider that the carrying amount of trade
payables approximates to their fair value.
The Group acts as an agent for clients on the trading of their investments. As
an agent, the Group only recognises amounts due from or to clients, brokers
and recognised stock exchanges as trade receivables and trade payables
respectively. As a result, no underlying investments are recognised on the
Group's consolidated statement of financial position.
26. Provisions
Provisions included in other current liabilities and long-term liabilities are
made up as follows:
Professional Client Dilapidations Stamp Duty liability and related costs
fees payments £'000 £'000 Total
£'000 £'000 £'000
Provisions falling due within one year
At 1 April 2022 455 650 32 747 1,884
Additions - 96 - 131 227
Reclassification to trade and other payables (90) (746) - - (836)
Release of provisions (20) (20)
Utilisation of provisions (345) - (32) - (377)
At 1 April 2023 - - - 878 878
Release of provisions - - - (243) (243)
Utilisation of provisions - - - (280) (280)
- - - 355 355
Provisions falling due after one year
At 1 April 2022 - - 586 - 586
Additions - - 61 - 61
Interest - - 5 - 5
At 1 April 2023 - - 652 - 652
Additions - - 14 - 14
Interest - - 23 - 23
- - 689 - 689
Total as at 31 March 2024 - - 689 355 1,044
The Group, based on revised estimates, made an additional provision of
£37,000 (including interest) for dilapidations in connection with acquired
leasehold premises (2023: total additional provision of £66,000). These costs
are expected to arise at the end of each respective lease.
The Group had six leased properties, all of which had contractual dilapidation
requirements. The dilapidation provisions in relation to these leases range
from net present values as at the year-end of £12,000 to £583,000 per lease.
The Group, in the previous year, identified an obligation in respect of stamp
duty reserve tax which arose over several years. An initial provision of
£878,000 was made in the prior year, and subsequently upon management
investigation and external tax advice, the liability including professional
fees currently outstanding, is estimated to be £355,000.
27. Lease liabilities
Lease liabilities Offices Computer Computer Total
£'000 software hardware £'000
£'000 £'000
At 1 April 2023 2,562 148 20 2,730
Additions 100 271 - 371
Interest 87 12 - 99
Lease payments (506) (227) (13) (746)
At 31 March 2024 2,243 204 7 2,454
Lease liabilities profile (statement of financial position) 2024 2023
£'000 £'000
Amounts due within one year 718 341
Amounts due after more than one year 1,736 2,389
2,454 2,730
Undiscounted lease maturity analysis 2024 2023
£'000 £'000
Within one year 865 426
Between one and two years 847 958
Between two and five years 864 1,549
Total undiscounted lease liabilities 2,576 2,933
28. Called-up share capital
2024 2023
£'000 £'000
Called-up, allotted and fully paid
43,327,328 (2023: 43,327,328) Ordinary Shares of 6(2)/(3)p each 2,888 2,888
There are no specific restrictions on the size of a holding nor on the
transfer of shares, which are both governed by the general provisions of the
Articles of Association and prevailing legislation. The Directors are not
aware of any agreements between holders of the Group's shares that may result
in restrictions on the transfer of securities or on voting rights.
The following movements in share capital occurred during the year:
Number of Share Share Total
shares capital premium £'000
£'000 £'000
At 1 April 2023 43,327,328 2,888 3,763 6,651
At 31 March 2024 43,327,328 2,888 3,763 6,651
The Group's capital is defined for accounting purposes as total equity. As at
31 March 2024, this totalled £21,321,000 (2023: £21,166,000).
The Group's objectives when managing capital are to:
● safeguard the Group's ability to continue as a going concern so
that it can continue to provide returns for shareholders and benefits for
other stakeholders;
● maintain a strong capital base to support the development of the
business;
● optimise the distribution of capital across the Group's
subsidiaries, reflecting the requirements of each company;
● strive to make capital freely transferable across the Group where
possible; and
● comply with regulatory requirements at all times.
The Group has been assessed as constituting a MIFIDPRU Investment Firm group
and has been classified as a non-small non-interconnected (non-SNI) Investment
Firm group and performs an Internal Capital Adequacy and Risk Assessment
process (ICARA), which is presented to the FCA on request.
The Group's capital, for accounting purposes, is defined as the total of share
capital, share premium, retained earnings and other reserves. Total capital at
31 March 2024 was £21.3 million (2023: £21.2 million).
Regulatory capital is derived from the Group's "ICARA", which is a requirement
of the Investment Firm Prudential Regime ('IFPR'). The ICARA draws on the
Group's risk management process that is embedded within all areas of the
Group. The Group's objectives when managing capital are to comply with the
capital requirements set by the Financial Conduct Authority, to safeguard the
Group's ability to continue as a going concern.
Capital adequacy and the use of regulatory capital are monitored daily by the
Group's management. In addition to a variety of stress tests performed as part
of the ICARA process, and daily reporting in respect of treasury activity,
capital levels are monitored and forecast to ensure that dividends and
investment requirements are managed and appropriate buffers are held against
potential adverse business conditions.
Regulatory capital
No breaches were reported to the FCA during the financial years ended 31 March
2024 and 2023.
Treasury shares
The Group holds 750,000 of its own shares, purchased for total cash
consideration of £312,000. In line with the principles of IAS 32 these
treasury shares have been deducted from equity (note 29). No gain or loss has
been recognised in the income statement in relation to these shares.
29. Reserves
Apart from share capital and share premium, the Group holds reserves at 31
March 2024 under the following categories:
Own shares held (£312,000) (2023: (£312,000)) ● the negative balance of the Group's own shares, which have been
bought back and held in treasury.
Retained earnings £10,259,000 (2023: £10,104,000) ● the net cumulative earnings of the Group, which have not been
paid out as dividends, are retained to be reinvested in our core, or
developing, companies.
Other reserves £4,723,000 (2023: £4,723,000) ● the cumulative premium on the issue of shares as deferred
consideration for corporate acquisitions £4,612,000 (2023: £4,612,000) and
non-distributable reserve into which amounts are transferred following the
redemption or purchase of the Group's own shares.
30. Cash generated from operations
2024 2023
£'000 £'000
Operating profit for the year 63 625
Adjustments for:
Amortisation of intangibles 1,011 1,393
Net change in fair value of financial instruments at fair value through profit 96 575
or loss***
Depreciation of property, plant and equipment 288 331
Depreciation of right-of-use assets* 636 771
Decrease in debtors** 4,398 13,662
Decrease in creditors** (5,522) (13,818)
Net cash inflow 970 3,539
* Lease liability payments associated with RoU assets
were 722,000 (2023: £332,000).
** Cash outflow from working capital movement of
£1,124,000 (2023: £156,000)
*** Revaluation profit on proprietary positions.
31. Financial commitments
Capital commitments
At the end of this year and the previous year, there were no capital
commitments contracted but not provided for and no capital commitments
authorised but not contracted for.
32. Related parties
Directors and their close family members have dealt on standard commercial
terms with the Group. The commission and fees earned by the Group included in
revenue through such dealings is as follows:
2024 2023
£'000 £'000
Commission and fees received from Directors and their close family members 31 20
Other related parties include Charles Russell Speechlys, of which Martin
Wright, Chairman, was a Partner and remains a consultant. Charles Russell
Speechlys provides certain legal services to the Group on normal commercial
terms and the amount paid and expensed during the year (including the fees
paid to the firm for Mr. Wright's services as Director) was £208,000 (2023:
£280,000).
Fees of £9,000 (2023: £9,000) are receivable by EnOC Technologies Ltd from
CyberQuote Pte Ltd (a company, where Hua Min Lim is a shareholder) for the
service provided on normal commercial terms.
Commission of £19,714 (2023: £7,043) was earned by the Group from Phillip
Securities (HK) Limited (a Phillip Brokerage Pte Limited company, where Hua
Min Lim is a shareholder) having dealt on standard commercial terms.
Additionally, some custody services are provided by Phillip Securities Pte Ltd
(in Singapore, where Hua Min Lim is a Director), again all on standard
commercial terms, both these items being included in revenue. Transactions
between the Group and its subsidiaries, which are related parties, have been
eliminated on consolidation and are accordingly not disclosed. Remuneration of
the Directors who are the key Management personnel of the Group is disclosed
in the table below.
2024 2023
£'000 £'000
Key management personnel compensation
Short-term employee benefits 519 459
Post-employment benefits 36 32
555 491
33. Contingent liabilities
In 2021 a former associate brought a claim against Walker Crips Investment
Management Limited in the Employment Tribunal. A hearing of a preliminary
issue took place in 2022 and the Tribunal found in favour of the company.
The former associate appealed that decision and in 2023, whilst many of the
appeal grounds were not upheld, certain points were referred back to the
Employment Tribunal to reconsider. The Company does not consider that the
claims are justified and intends to continue to defend them robustly.
From time to time, the Group receives complaints or undertakes past business
reviews, the outcomes of which remain uncertain and/or cannot be reliably
quantified based upon information available and circumstances falling outside
the Group's control. Accordingly, contingent liabilities arise, the ultimate
impact of which may also depend upon availability of recoveries under the
Group's indemnity insurance and other contractual arrangements. Other than any
cases where a financial obligation is deemed to be probable and thus provision
is made, the Directors presently consider a negative outcome to be remote. As
a result, no further disclosure has been made in these financial statements.
Provisions made remain subject to estimation uncertainty, which may result in
material variations in such estimates as matters are finalised.
34. Subsequent events
There are no material events arising after 31 March 2024, which have an impact
on these financial statements.
35. Deferred cash consideration
2024 2023
£'000 £'000
Due within one year
Amounts due to personnel under recruitment contracts/acquisition agreements 25 94
Due after one year
Amounts due to personnel under recruitment contracts/acquisition agreements 15 71
These amounts are based on fixed contractual terms and the fair value of the
liability approximates carrying value, due to the consistency of the
prevailing market rate of interest when compared to the inception of
liability.
36. Share-based payments
The Group recognised total expenses in the year of £15,000 (2023: £nil)
related to equity-settled share-based payment transactions.
No award was made in the financial year and prior year award was forfeited due
to termination of employment.
Share Incentive Plan ("SIP")
Employees who have been employed for longer than three months and are subject
to PAYE are invited to join the SIP. Employees may use funds from their gross
monthly salary (being not less than £10 and not greater than £150) to
purchase ordinary shares in the Group ("Partnership Shares"). In the current
year, for every Partnership Share purchased, the employee received matching
shares at a rate of 100%. The matching option will remain at this rate to 31
March 2025. Employees are offered an annual opportunity to top up
contributions to the maximum annual limit of £1,800 (or 10% of salary, if
lower). All shares to date awarded under this scheme have been purchased in
the market at the prevailing share price on a monthly basis.
Company balance sheet
as at 31 March 2024
Note 2024 2023
£'000 £'000
Non-current assets
Investments measured at cost less impairment 40 22,105 21,907
22,105 21,907
Current assets
Trade and other receivables 41 803 801
Deferred tax asset 42 - 1
Cash and cash equivalents 176 95
979 897
Total assets 23,084 22,804
Current liabilities
Trade and other payables 43 (4,579) (3,889)
(4,579) (3,889)
Net current assets/(liabilities) (3,600) (2,992)
Net assets 18,505 18,915
Equity
Share capital 45 2,888 2,888
Share premium account 45 3,763 3,763
Own shares 45 (312) (312)
Retained earnings 45 7,443 7,853
Other reserves 45 4,723 4,723
Equity attributable to equity holders of the Company 18,505 18,915
As permitted by section 408 of the Companies Act 2006 the Parent Company has
elected not to present its own profit and loss account for the year. Walker
Crips Group plc reported an after-tax loss for the financial year of £197,000
(2023: after-tax profit of £89,000).
The financial statements of Walker Crips Group plc (Company registration no.
01432059) were approved by the Board of Directors and authorised for issue on
31 July 2024.
Signed on behalf of the Board of Directors:
Sanath Dandeniya FCCA
Director
Company statement of changes in equity
year ended 31 March 2024
Called up Share Own Other Retained Total
share premium shares £'000 earnings equity
capital account held £'000 £'000
£'000 £'000 £'000
Equity as at 31 March 2022 2,888 3,763 (312) 4,723 8,381 19,443
Total comprehensive income for the period - - - - 89 89
Contributions by and distributions to owners
Dividends paid - - - - (617) (617)
Total contributions by and distributions to owners - - - - (617) (617)
Equity as at 31 March 2023 2,888 3,763 (312) 4,723 7,853 18,915
Total comprehensive loss for the period - - - - (197) (197)
Contributions by and distributions to owners
Dividends paid - - - - (213) (213)
Total contributions by and distributions to owners - - - - (213) (213)
Equity as at 31 March 2024 2,888 3,763 (312) 4,723 7,443 18,505
The following Accounting Policies and Notes form part of these financial
statements.
Notes to the Company accounts
year ended 31 March 2024
37. Significant accounting policies
The separate financial statements of Walker Crips Group plc, the Parent
Company, are presented as required by the Companies Act 2006.
The financial statements have been prepared under the historical cost
convention except for the modification to a fair value basis for certain
financial instruments as specified in the accounting policies below, and in
accordance with Financial Reporting Standard (FRS 102), the Financial
Reporting Standard applicable in the UK and the Republic of Ireland, and the
Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires
the use of certain critical accounting estimates. It also requires Management
to exercise judgement in applying the Parent Company's accounting policies
(see note 38).
The financial statements are presented in the currency of the primary
activities of the Parent Company (its functional currency). For the purpose of
the financial statements, the results and financial position are presented in
GBP Sterling (£). The principal accounting policies have been summarised
below. They have all been applied consistently throughout the year and the
preceding year.
The Parent Company has chosen to adopt the disclosure exemption in relation to
the preparation of a cash flow statement under FRS 102.
Going concern
After conducting enquiries, the Directors believe that the Parent Company has
adequate resources to continue in existence for the foreseeable future.
Accordingly, they continue to adopt the going concern basis in preparing the
financial statements. The Parent Company's business activities, together with
the factors likely to affect its future development, performance and position,
have been assessed.
Property, plant and equipment
Fixtures and equipment are stated at historical cost less accumulated
depreciation and provision for any impairment. Depreciation is charged so as
to write-off the cost or valuation of assets over their estimated useful lives
using the straight-line method on the following bases:
Computer hardware 33(1)/(3)%
per annum on cost
Computer software between
20% and 33(1)/(3)% per annum on cost
Leasehold improvements over the
term of the lease
Furniture and equipment
33(1)/(3)% per annum on cost
The gain or loss on the disposal or retirement of an asset is determined as
the difference between the sales proceeds and the carrying amount of the asset
and is recognised in income. The residual values and estimated useful life of
items within property, plant and equipment are reviewed at least at each
financial year end. Any shortfalls in carrying value are impaired immediately
through profit or loss.
Impairment of non-financial assets
At each reporting date, the Parent Company reviews the carrying amounts of its
tangible and intangible assets to determine whether there is any indication
that those assets have suffered an impairment loss. For the purposes of
assessing impairment, assets are grouped at the lowest levels for which there
are separately identifiable cash flows (cash-generating units). If there is an
indication of possible impairment, the recoverable amount of any affected
asset (or group of related assets) is estimated and compared with its carrying
amount. If the estimated recoverable amount is lower, the carrying amount is
reduced to its estimated recoverable amount, and an impairment loss is
recognised immediately in profit or loss.
Taxation
The tax expense represents the sum of the tax currently payable and any
deferred tax.
Current tax, including UK corporation tax and foreign tax, is provided at
amounts expected to be paid or recovered using the tax rates and laws that
have been enacted or substantively enacted by the balance sheet date. Current
tax charges arising on the realisation of revaluation gains recognised in the
statement of comprehensive income are also recorded in this statement.
Deferred tax is recognised in respect of all timing differences that have
originated but not reversed at the balance sheet date where transactions or
events that result in an obligation to pay more tax in the future or a right
to pay less tax in the future have occurred at the balance sheet date.
A deferred tax asset is regarded as recoverable and therefore recognised only
when, on the basis of all available evidence, it can be regarded as probable
that there will be suitable taxable profits from which the future reversal of
the underlying timing differences can be deducted. Deferred tax assets and
liabilities are not discounted.
Own shares held
Own shares consist of treasury shares which are recognised at cost as a
deduction from equity shareholders' funds. Subsequent consideration received
for the sale of treasury shares is also recognised in equity with any
difference being taken to retained earnings. No gain or loss is recognised on
sale of treasury shares.
Financial instruments
Financial assets and financial liabilities are recognised in the balance sheet
when the Parent Company becomes a party to the contractual provisions of the
instrument. Section 11 of FRS 102 has been applied in classifying financial
instruments depending on the nature of the instrument held.
Revenue
Income consists of profits distribution from Barker Poland Asset Management
LLP, interest received or accrued over time and dividend income recorded when
received.
Investments in subsidiaries
Investments in subsidiaries are stated at cost less, where appropriate,
provisions for impairment.
Debtors
Other debtors are classified as basic financial instruments and measured at
initial recognition at transaction price. Debtors are subsequently measured at
amortised cost using the effective interest rate method. A provision is
established when there is objective evidence that the Group will not be able
to collect all amounts due.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and demand deposits, together
with other short-term highly liquid investments, which are readily convertible
to a known amount of cash and are subject to an insignificant risk of changes
in value.
Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. An equity instrument
is any contract that evidences a residual interest in the assets of the Parent
Company after deducting all of its liabilities. Equity instruments issued by
the Parent Company are recorded at the proceeds received, net of direct issue
costs.
Leases
Rentals under operating leases are charged on a straight-line basis over the
lease term even if the payments are not made on such a basis. Benefits
received as an incentive to enter into an operating lease are also spread on a
straight-line basis over the lease term.
38. Key sources of estimation uncertainty and judgements
The preparation of financial statements in conformity with generally accepted
accounting practice requires Management to make estimates and judgements that
affect the reported amounts of assets and liabilities as well as the
disclosure of contingent assets and liabilities at the balance sheet date and
the reported amounts of revenues and expenses during the reporting period.
39. Profit for the year
Loss for the financial year of £197,000 (2023: profit of £89,000) is after
an amount of £23,000 (2023: £23,000) related to the auditor's remuneration
for audit services to the Parent Company.
Particulars of employee costs (including Directors) are as shown below.
Employee costs during the year amounted to:
2024 2023
£'000 £'000
Employee costs during the year amounted to:
Wages and salaries 225 186
Social security costs 16 14
Other costs 4 3
245 203
In the current year, employee costs include the costs of the Non-Executive
Directors and a proportion of Executive Directors. The remaining Executive
Directors' employee costs are borne by Walker Crips Investment Management
Limited.
The monthly average number of staff employed during the year was:
2024 2023
Number Number
Executive Directors 2 2
Non-Executive Directors 4 4
6 6
40. Investments measured at cost less impairment
2024 2023
£'000 £'000
Subsidiary undertakings 22,105 21,907
During the year, the Company made an investment of £275,000 in Walker Crips
Financial Planning Limited and £200,000 into Ebor Trustees Limited, an
indirect 100% owned subsidiaries of the Group.
The decline in the net assets of Walker Crips Financial Planning Limited
resulted in Walker Crips Group plc, the Company, taking an impairment charge
in the current year which is reversed on consolidation. The decline in net
assets of Walker Crips Financial Planning is due to the investment put in
place to increase its advisor base from two to 12 in a three-year period. The
subsidiary is expected to break into profitability in the coming year.
A complete list of subsidiary undertakings can be found in note 50.
41. Trade and other receivables
2024 2023
£'000 £'000
Amounts owed by Group undertakings 803 799
Taxation and social security - 2
803 801
A presentational change was made in this note to exclude the deferred tax
asset from this grouping and to present it in its own line on the face of the
statement of financial position.
42. Deferred taxation
2024 2023
£'000 £'000
At 1 April 1 -
Use of Group Relief (26) (29)
Credit/(charge) to the income statement 25 30
At 31 March - 1
Deferred tax has been provided at 25% (2023: 25%).
43. Trade and other payables
2024 2023
£'000 £'000
Accruals and deferred income 53 99
Amounts due to subsidiary undertakings 4,479 3,744
Other creditors 47 46
4,579 3,889
44. Risk management policies
Procedures and controls are in place to identify, assess and ultimately
control the financial risks faced by the Parent Company arising from its use
of financial instruments. Steps are taken to mitigate identified risks with
established and effective procedures and controls, efficient systems and the
adequate training of staff.
The Parent Company's risk appetite, along with the procedures and controls
mentioned above, are laid out in the Group's Internal capital adequacy and
risk assessment (ICARA).
The overall risk appetite for the Parent Company and for the Group as a whole
is considered by Management to be low, despite operating in a marketplace
where financial risk is inherent in the core businesses of investment
management and financial services.
The Group considers its financial risks arising from its use of financial
instruments to fall into three main categories:
(i) credit risk;
(ii) liquidity risk; and
(iii) market risk.
Further information on the disclosures and policies carried out by the Parent
Company and the Group is given in note 24 of the consolidated financial
statements.
(i) Credit risk
Maximum exposure to credit risk:
2024 2023
£'000 £'000
Cash 176 95
Other debtors 803 799
As at 31 March 979 894
The credit quality of banks holding the Company's cash at 31 March 2024 is
analysed below with reference to credit ratings awarded by Fitch.
2024 2023
£'000 £'000
A+ 176 95
As at 31 March 176 95
Analysis of other debtors due from financial institutions:
2024 2023
£'000 £'000
Neither past due, nor impaired 803 799
None were past due.
(ii) Liquidity risk
The tables below analyse the Parent Company's future undiscounted cash
outflows based on the remaining period to the contractual maturity date:
2024 2023
£'000 £'000
Creditors due within one year 4,579 3,889
Creditors due after more than one year - -
As at 31 March 4,579 3,889
2024 2023
£'000 £'000
Within one year 4,579 3,889
Within two to five years - -
After more than five years - -
As at 31 March 4,579 3,889
The Company is in a net liability position, but this is primarily driven by an
intercompany creditor balance with its subsidiary. This is deemed to not
affect liquidity as the subsidiary is 100% owned and controlled by the
Company.
(iii) Market risk
Market risk is the risk that changes in market prices such as foreign exchange
rates or equity prices will affect the Group's income.
These relate to price risk breached on available-for-sale and trading
investments and closely monitored using limits to prevent significant losses.
Fair value of financial instruments
No financial instruments at fair value were held by the Parent Company in the
current or prior financial year.
45. Called-up share capital
2024 2023
£'000 £'000
Called-up, allotted and fully paid
43,327,328 (2023: 43,327,328) Ordinary Shares of 6(2)/(3)p each 2,888 2,888
No new shares were issued in the year to 31 March 2024 or the prior year.
The Parent Company holds 750,000 of its own shares, purchased for a total cash
consideration of £312,000. In line with the principles of FRS 102, section
11, these treasury shares have been deducted from equity. No gain or loss has
been recognised in the profit and loss account in relation to these shares.
The following movements in share capital occurred during the year:
Number Share Share Total
of shares capital premium £'000
£'000 £'000
At 1 April 2023 43,327,328 2,888 3,763 6,651
At 31 March 2024 43,327,328 2,888 3,763 6,651
Apart from share capital and share premium, the Parent Company holds reserves
at 31 March 2024 under the following categories:
Own shares held (£312,000) (2023: (£312,000)) ● the negative balance of the Parent Company's own shares that have
been bought back and held in treasury.
Retained earnings £7,443,000 (2023: £7,853,000) ● the net cumulative earnings of the Parent Company, which have not
paid out as dividends, retained to be reinvested in our core or new business.
Other reserves £4,723,000 (2023: £4,723,000) ● the cumulative premium on the issue of shares as deferred
consideration for corporate acquisitions £4,612,000 (2023: £4,612,000) and
non-distributable reserve into which amounts are transferred following the
redemption or purchase of the Group's own shares.
46. Financial commitments
Capital commitments
At the end of this year and the previous year, there were no capital
commitments contracted but not provided for and no capital commitments
authorised but not contracted for.
47. Related party transactions
Key Management are those persons having authority and responsibility for
planning, controlling and directing the activities of the Parent Company and
Group. In the opinion of the Board, the Parent Company and Group's key
Management are the Directors of Walker Crips Group plc.
Total compensation to key management personnel is £555,000 (2023: £491,000).
48. Contingent liability
From time to time, the Company receives complaints or undertakes past business
reviews, the outcomes of which remain uncertain and/or cannot be reliably
quantified based upon information available and circumstances falling outside
the Company's control. Accordingly contingent liabilities arise, the ultimate
impact of which may also depend upon availability of recoveries under the
Company's indemnity insurance and other contractual arrangements. Other than
the complaints deemed to be probable, the Directors presently consider a
negative outcome to be remote or a reliable estimate of the amount of a
possible obligation cannot be made. As a result, no disclosure has been made
in these financial statements.
49. Subsequent events
There are no material events arising after 31 March 2024, which have an impact
on these financial statements.
50. Subsidiaries and associates
Principal place of business Principal activity Class and percentage of shares held
Group
Trading subsidiaries
Walker Crips Investment Management Limited(1) United Kingdom Investment management Ordinary Shares 100%
London York Fund Managers Limited(2) United Kingdom Management services Ordinary Shares 100%
Walker Crips Financial Planning Limited(2) United Kingdom Financial services advice Ordinary Shares 100%
Ebor Trustees Limited(2) United Kingdom Pensions management Ordinary Shares 100%
EnOC Technologies Limited(1) United Kingdom Financial regulation and other software Ordinary Shares 100%
Barker Poland Asset Management LLP(1) United Kingdom Investment management Membership 100%
Non-trading subsidiaries
Walker Crips Financial Services Limited(1) United Kingdom Financial services Ordinary Shares 100%
G & E Investment Services Limited(2) United Kingdom Holding company Ordinary Shares 100%
Ebor Pensions Management Limited(2) United Kingdom Dormant company Ordinary Shares 100%
Investorlink Limited(1) United Kingdom Agency stockbroking Ordinary Shares 100%
Walker Cambria Limited(1) United Kingdom Dormant company Ordinary Shares 100%
Walker Crips Trustees Limited(1) United Kingdom Dormant company Ordinary Shares 100%
W.B. Nominees Limited(1) United Kingdom Nominee company Ordinary Shares 100%
WCWB (PEP) Nominees Limited(1) United Kingdom Nominee company Ordinary Shares 100%
WCWB (ISA) Nominees Limited(1) United Kingdom Nominee company Ordinary Shares 100%
WCWB Nominees Limited(1) United Kingdom Nominee company Ordinary Shares 100%
Walker Crips Consultants Limited(1) United Kingdom Dormant company Ordinary Shares 100%
Walker Crips Ventures Limited(1) United Kingdom Financial services advice Ordinary Shares 100%
The registered office for companies and associated undertakings is:
1 Old Change House, 128 Queen Victoria Street, London, England, EC4V 4BJ.
2 Apollo House, Eboracum Way, York, England, YO31 7RE.
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