Directors’ Report

Directors’ Report for the year ended 31 October 2018

The directors present their report and financial statements for the year ended 31 October 2018.

Principal activities

The principal activity of the Company continued to be that of independent financial advisers and investment managers.

Results and dividends

The consolidated statement of comprehensive income for the year is set out on page 28.

The amount that the directors recommend should be paid out by way of dividends has been disclosed in the Strategic Report on page 5.

Future developments

The Company continues to seek high quality IFA and related financial sector businesses of all sizes that will embrace the AFH culture of providing exceptional value to our growing client base while providing attractive returns to our shareholders.

The Company continues to invest in its digital footprint to improve the service to both clients and AFH advisers whilst enabling greater efficiency in its administration. This digitalisation of both the advice and investment service is also expected to open new market channels to future clients who embrace digital and mobile technology.

Directors

The following directors have held office since 1 November 2017:

Mr A Hudson
Mr J Wheatley
Mr P Wright
Mrs S Lewis
Mr M Chambers
Mr A Broad
Mrs A Larvin

Directors’ indemnities

The company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the year and remain in force at the date of this report.

Evaluating Board Performance

At the current stage of the Company’s development, assessment of the Board’s performance and that of its committees will be undertaken by the Board as a whole, led by the Company’s Chairman. Although the Company has no formal procedure for measuring the effectiveness of the Board, the Board will be carefully reviewing its effectiveness and the need to refresh its membership by reference to financial performance, adherence to budgets and the overall growth of the Company and taking account of the opinions and insights of its auditors, Nominated Adviser, broker, legal and other advisers. The method of assessing Board effectiveness and performance will be reviewed on a continuing basis.

Matters covered in the Strategic Report and Financial Statements

As permitted by paragraph 1A of schedule 7 to the Large and Medium Sized Companies and Groups (Accounts and Reports)‌‌ Regulations 2008 certain matters which are required to be disclosed in the Directors Report have been omitted as they are included in the Strategic Report on pages 12-15 and in notes 22 and 24 of the Financial Statements. These matters relate to principal risks and uncertainties which have been disclosed in the Strategic Report, Financial Risk Management which has been disclosed in note 22, and Events subsequent to the Statement of Financial Position which has been disclosed in note 24.

Corporate Governance Statement

The Corporate Governance Statement is published on our external website.

Disabled employees

The company gives full consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion.

Where existing employees become disabled, it is the Company’s policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve this aim.

Employee consultation

The company involves employees in the running of the business through a senior management team that works closely with management and staff members.

Employees are involved in an Employee forum where they can contribute ideas towards ways to improve the business, staff benefits and the working environment.

In line with government legislations the company offers a group wide pension scheme, where staff have the option to opt out if they wish.

Auditors

A resolution proposing that Mazars LLP be reappointed as auditors of the Company will be put to the members at the Annual General Meeting.

Directors’ responsibilities statement

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards (“IFRS”)‌‌ as adopted by the European Union and applicable law. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

  • select suitable accounting policies and then apply them consistently;
  • make judgments and accounting estimates that are reasonable and prudent;
  • state whether IFRS as adopted by the European Union have been followed subject to any material departures disclosed and explained in the financial statements;
  • provide additional disclosures when compliance with specific requirements in IFRS is insufficient to enable users to understand the impact of particular transactions, other events and conditions on the entity’s financial position and financial performance; and
  • prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

On behalf of the board

 

Anne-Marie Brown
18 January 2019

Annual Report

Please click below to download the full annual report as a PDF file.