# CAMPBELL LUTYENS & CO. INC. X-17A-5 (2025-06-26) — Broker-dealer annual report - Company: CAMPBELL LUTYENS & CO. INC. - Form: X-17A-5 - Filed: 2025-06-26 - Period: 2025-04-30 - Accession: 0001308104-25-000007 - CIK: 1308104 - File #: 8-66720 - Type: Broker-dealer - Material weakness: No - Auditor: Anchin, Block and Anchin LLP - Auditor location: New York, NY - Contact: Christopher Paolino - Phone: 732-233-8802 - Website: anchin.com - Signed by: Christoffer Davidsson (President) Original filing: https://www.sec.gov/Archives/edgar/data/1308104/000130810425000007/clincpublic1.pdf --- {0}------------------------------------------------ Campbell Lutyens & Co. Inc. (S.E.C. I.D. No. 8-66720) # STATEMENT OF FINANCIAL CONDITION APRIL 30, 2025 This report is filed in accordance with Rule 17A-5(e)(3) under the Securities Exchange Act of 1934 as a PUBLIC DOCUMENT to be posted on www.sec.gov. \* \* \* \* \* \* \* {1}------------------------------------------------ #### REPORT INDEX #### APRIL 30, 2025 #### PAGE | FACING PAGE TO FORM X-17A-5 | 1 | |-------------------------------------------------------------|---| | AFFIRMATION | 2 | | REPORT OF THE INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 3 | | STATEMENT OF FINANCIAL CONDITION | 5 | | NOTES TO THE STATEMENT OF FINANCIAL CONDITION | 6 | {2}------------------------------------------------ {3}------------------------------------------------ | Signature: | | |---------------------|--| | Title:
PRESIDENT | | - - - - - - - - - - - - - - - - - - - - - - - - - - - {4}------------------------------------------------ ![](_page_4_Picture_0.jpeg) Anchin, Block & Anchin LLP Accountants & Advisors 3 Times Square, New York, NY 10036 212-840-3456 www.anchin.com #### Opinion on the Financial Statement #### Basis for Opinion {5}------------------------------------------------ Basis for Opinion (Continued) Anchin, Block & Anchin LLP {6}------------------------------------------------ #### CAMPBELL LUTYENS & CO. INC. STATEMENT OF FINANCIAL CONDITION AS OF APRIL 30, 2025 #### ASSETS | Cash & cash equivalent | \$
16,921,318 | |----------------------------------------|------------------| | Restricted cash | 834,328 | | Affiliate fee receivable | 21,828,328 | | Deferred income taxes | 1,153,678 | | Prepaid income taxes | 332,770 | | Staff loans | 7,363,298 | | Other assets | 1,069,149 | | Operating lease right-of-use assets | 9,463,225 | | Finance lease right-of-use assets, net | 52,604 | | Property and equipment, net | 1,987,831 | | | | #### Total Assets \$ 61,006,529 ## LIABILITIES #### LIABILITIES | Deferred compensation | \$
6,801,613 | | |--------------------------------------------------------------------------------------------------|------------------|--| | Current income taxes payable | 12,559 | | | Accrued expenses and other | 1,720,282 | | | Operating lease liability | 12,004,480 | | | Finance lease liability | 59,277 | | | Total Liabilities | 20,598,211 | | | Commitments and contingencies | | | | | | | | Common stock, par value \$0.01 per share; 2,000,000 shares authorized,
issued and outstanding | 20,000 | | | Additional paid-in capital | 5,145,393 | | | Retained earnings | 35,242,925 | | | | 40,408,318 | | | | \$
61,006,529 | | See Notes to Statement of Financial Condition {7}------------------------------------------------ #### NOTES TO STATEMENT OF FINANCIAL CONDITION #### APRIL 30, 2025 #### 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Description of Business - Campbell Lutyens & Co. Inc. -dealer as a C Corporation and is a wholly-owned subsidiary of Campbell Lutyens Holdings Limited (the and the affiliate in a single line of business as a brokerdealer raising capital for private equity, private debt and infrastructure firms and investment managers and providing related specialized financial services. As a result, the Group and Company is exposed to the risks associated with this industry including changes in the economic and regulatory environment. An affiliated company pays the Company fees which reflect value the Company provides to the affiliated company in the normal course of business. The Company does not conduct any retail securities business, offer or hold customer accounts, nor does it hold or receive client or investor funds or securities. The Company is not a party to agreements between an investor and its private fund clients, does not make a market in any security, nor does it trade for its own account or for the account of any client (or investor) in any security. Basis of Presentation - The financial statements are presented in accordance with accounting principles generally accepted in the United States of America. The financial statements are presented in U.S. Dollars. Use of Estimates - The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition The Company earns revenue through a management service agreement with an affiliate. The performance obligation for providing services is satisfied over time because the affiliate is receiving the benefits as they are provided by the Company. Fee arrangements are based on a percentage applied to all costs incurred by the Company plus where appropriate an additional allocation of group revenue based on the contribution that the Company makes to the generation of those group revenues derived in accordance with accepted transfer pricing methodology. Affiliate fees are generally received monthly and are recognized as revenue as they relate specifically to the services provided in that period. Restricted Cash Amounts included in restricted cash represent cash deposit held in a separate bank account required to be set aside as a secure deposit for the letter of credit used for the leased office space. Cash & Cash Equivalent Cash equivalents include short-term highly liquid investments, such as money market funds that are readily convertible to known amounts of cash and have original maturities of three months or less. {8}------------------------------------------------ #### NOTES TO STATEMENT OF FINANCIAL CONDITION #### APRIL 30, 2025 #### 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Property and Equipment - Comprises furniture and computer equipment which are reported at cost, net of accumulated depreciation. Depreciation is provided for furniture and computer equipment on a straight-line basis over the estimated useful life of the assets. In addition, property and equipment comprises improvements to leasehold office space rented under an operating lease which are reported at cost, net of accumulated depreciation. Depreciation is provided for leasehold improvements on a straight-line basis over the lease period. Income Taxes - The amount of current taxes payable or refundable is recognized as of the date of the financial statements, utilizing currently enacted tax laws and rates. Deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. These assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to reverse. interest method if the time value of money is significant. Interest is charged at market loan rates and Deferred Compensation The Company makes contractual remuneration payments to certain employees. Due to the structure and payment terms, the Company treats such remuneration payments as deferred compensation with such payments being accrued over the period from which economic benefits are derived from the continuing service provided by the employees. Staff Loans - The Company makes staff loans available to certain employees. Such loans are carried at book value if the time they are held is not significant and at amortized cost using the effective is taken to the Statement of Income at the point in time when, under the terms of the contract, the company is entitled to the interest specified. Lease Standard Topic 842, Leases allows to carry forward historical lease classification, assessment of whether a contract is or contains a lease, for any leases that expired prior to adoption of ASC 842. ASC 842 requires lessees to recognize on the Statement of Financial Condition, at lease commencement, the lease assets and related lease liabilities for the rights and obligations created by operating and finance leases with lease terms of more than 12 months. The lease term commences on the date the lessor makes the underlying property available, irrespective of when lease payments begin under the contract. The duration of the lease term is assessed taking into account both the termination and the likelihood and availability of a renewal option. The lease expense is recognized on a straight-line basis over the lease term. The finance lease liability is based on the present value of the lease payments discounted at borrowing rate of 8%. The operating lease liability is based on the present value of the lease payments discounted at borrowing rate of 3.5%. The right-of-use asset is based on lease liability. {9}------------------------------------------------ #### NOTES TO STATEMENT OF FINANCIAL CONDITION #### APRIL 30, 2025 #### 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - continued Segment Reporting The Company adopted ASU 2023-07 Segment Reporting for improved reporting segment, as described in the summary of significant accounting policies. The metrics used and cash flows from operations, which also helps in decision making and forecasting future results. The measure of segment assets is reported on the statement of financial condition as total assets, and segment revenues and expenses are reported on the statement of operations as total revenues and expenses. #### 2. RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS | | |--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------| | The Company enters into related party transactions with an affiliate. For the year ended April 30,
2025, revenues with an affiliate were \$53,297,866. The Company was owed \$21,828,328 by an
affiliate at April 30, 2025. | | | The Company has provided loans to certain staff with interest chargeable at market loan rates. At
April 30, 2025 loans with a value of \$7,363,298 and accrued interest of \$178,182 were owed to the
Company. Accrued interest has been included within other assets in the Statement of Financial
Condition and staff loans are disclosed separately. Staff loans are repayable on agreed dates up to
five years after the date the loan was given. None of the staff loans are in default of their terms. | | | Staff loans fall due to be repaid as follows: | | | Years Ending April 30 | | | 2026 | \$
420,962 | | 2027 | 1,276,371 | | 2028 | 870,778 | | 2029 | 1,987,998 | | 2030 | 2,807,189 | | | \$
7,363,298 | | | | | | | | | | | | | {10}------------------------------------------------ #### NOTES TO STATEMENT OF FINANCIAL CONDITION #### APRIL 30, 2025 #### 3. PROPERTY AND EQUIPMENT Property and equipment are comprised of the following: | Leasehold improvements | \$
1,381,189 | |---------------------------------|-----------------| | Office equipment and furniture | 1,678,281 | | Computer equipment | 1,135,028 | | | 4,194,498 | | Less - accumulated depreciation | (2,206,667) | | | \$
1,987,831 | | | | #### 4. LEASES Operating Lease- In April 2022, the Company entered into an agreement to rent office space under a lease with commencement date of January 20, 2023 to expire on February 28, 2034. The lease provides for minimum rental and escalations based on increases in real estate taxes and operating expenses. As of April 30, 2025, a lease liability of \$12,004,480, of which \$1,076,506 and \$10,927,974 is considered as short-term and long-term liabilities respectively, is recorded in operating lease liability in the Statement of Financial Condition, which is the present value of the lease payments over the term ending February 28, 2034. The present value was computed using a discount rate equal to the borrowing at the time of inception, or 3.5%. A corresponding operating lease asset of \$9,463,225 is recorded in the statement of financial condition as at April 30, 2025. The future minimum base payments under the non-cancellable operating lease are as follows: #### Years Ending April 30 | 2026 | \$
1,668,656 | |------------|------------------| | 2027 | 1,668,656 | | 2028 | 1,690,778 | | 2029 | 1,801,390 | | 2030 | 1,801,390 | | Thereafter | 6,905,329 | | | | | Total | \$
15,536,199 | {11}------------------------------------------------ #### NOTES TO STATEMENT OF FINANCIAL CONDITION #### APRIL 30, 2025 #### 4. LEASES - continued #### Years Ending April 30 | NOTES TO STATEMENT OF FINANCIAL CONDITION | | |----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------| | | | | | | | LEASES - continued | | | Finance Lease- In March 2023, the Company entered into an agreement to rent office equipment
under a lease expiring on August 10, 2026. The monthly rental costs are fixed under the terms of the
lease. | | | The future minimum base payments under the non-cancellable finance lease are as follows: | | | Years Ending April 30 | | | 2026
2027 | \$
48,900
13,540 | | Total | \$
62,440 | | The value of the finance lease right-of-use asset as at April 30, 2025 is \$138,086. The accumulated
amortization as of April 30, 2025 is \$85,482. | | As of April 30, 2025, a lease liability of \$59,277 of which \$45,926 and \$13,351 is considered shortterm and long-term liabilities, respectively is recorded in finance lease liability in the statement of financial condition, which is the present value of the lease payments over the term ending August 10, 2026. The present value was computed using a discount rate equal to the borrowing at the time of inception, or 8%. #### 5. COMMITMENTS AND CONTINGENCIES Letter of Credit On April 21, 2022, the Company obtained a letter of credit in support of a deposit amounting to drawn by the lessor in the event that the Company defaults in making monthly rent payments. The letter of credit is secured by a money market deposit account, which is reflected as restricted cash on Credit Card Facility The Company maintains credit cards with major financial institutions with a maximum line of credit of \$320,000. At April 30, 2025 the prepaid balance of these credit cards of \$5,827 was included in other assets. Cash Credit Risk Concentration The Company maintains bank accounts with Wells Fargo Bank NA and HSBC Bank USA NA in the New York City metropolitan area. All cash deposits are insured by FDIC for up to \$250,000 per account. Any additional amounts are secured by the good faith and credit of the financial institution. The excess deposit balances over amounts covered by federal insurance was \$17,263,146 at April 30, 2025. {12}------------------------------------------------ #### NOTES TO STATEMENT OF FINANCIAL CONDITION #### APRIL 30, 2025 #### 6. NET CAPITAL REQUIREMENTS As a registered broker-dealer, the Company is subject to the net capital requirements of Rule 15c3-1 -1 requires the maintenance of minimum net capital and requires that the ratio of aggregate indebtedness to net capital, both as capital may not be withdrawn or cash dividends paid if the resulting net capital ratio would exceed 10 to 1). At April 30, 2025, the Company had net capital of \$5,530,960 which was \$4,788,627 above was 2.01 to 1. #### 7. EXEMPT PROVISIONS UNDER RULE 15c3-3 The Company does not claim an exemption under paragraph (k) of 17 C.F.R. 240.15c3-3 and is relying on Footnote 74 of the SEC Release No. 34-70073 and adopted the amendments to 17 C.F.R. 240.17a-5 as the Company limits its business activities exclusively to assisting the Parent and the affiliate in a single line of business as a broker-dealer raising capital for private equity, private debt and infrastructure firms and investment managers and providing related specialized financial services. The Company did not directly or indirectly receive, hold, or otherwise owe funds or securities for or to customers; did not carry accounts of or for customers; and did not carry PAB accounts (as defined in Rule 15c3-3) throughout the year. 8. INCOME TAXES The components of the net deferred tax asset are as follows: | Total deferred tax assets | \$
1,628,185 | |--------------------------------|-----------------| | Total deferred tax liabilities | (474,507) | | | \$
1,153,678 | Deferred tax assets of \$1,628,185 are mostly attributable to temporary differences relating to bonus accruals. Deferred tax liabilities relate to temporary differences in accelerated depreciation of \$474,507. The Company determined that there are no uncertain tax positions which would require adjustments or disclosures on the financial statements. {13}------------------------------------------------ #### NOTES TO STATEMENT OF FINANCIAL CONDITION #### APRIL 30, 2025 #### 9. DEFERRED COMPENSATION Amounts accrued under deferred compensation arrangements fall due to be paid as follows: #### Years Ending April 30 | 2026 | \$
4,933,884 | |-----------------------------|-----------------| | 2027 | 1,409,499 | | 2028 | 664,185 | | Total | 7,007,568 | | Less: Fair value adjustment | (205,955) | | | \$
6,801,613 | #### 10. STOCK OPTIONS Options are granted to employees at the discretion of the Board of Directors of the Parent. Options, which are denominated in Great Britain Pounds, are exercisable at a price equal to the fair market and are valid for a period of 3 years. If the options remain unexercised at the end of that period they expire. Options are forfeited if the employee leaves the employment of the Parent and its affiliated companies and will be recognized in the period it occurs. Details of the stock options outstanding for employees of the Company are as follows: | | Number of
stock options | Weighted average
exercise price \$ | | |---------------------------------------------|----------------------------|---------------------------------------|--| | Outstanding, beginning of year | 1,182,533 | 5.43 | | | Issued during the year ended April 30, 2025 | 796,975 | 6.56 | | | Forfeited during the year | (238,177) | 5.76 | | | Lapsed during the year | (24,490) | 5.76 | | | Exercised during the year | (806,052) | 5.94 | | | Outstanding, end of year | 910,789 | 6.35 | | | Exercisable, end of year | 538,050 | 6.29 | | The fair value of issued share options has been calculated using the Black-Scholes option pricing model. The cost of share options has been charged to the Statement of Income during the year. The weighted average fair value of these share options calculated by the Black-Scholes option pricing model was \$0.54. {14}------------------------------------------------ #### NOTES TO STATEMENT OF FINANCIAL CONDITION #### APRIL 30, 2025 #### 10. STOCK OPTIONS continued | The inputs into the Black-Scholes Option Pricing Model were as follows: | | | | | | | |-------------------------------------------------------------------------|---------------|--|--|--|--|--| | Weighted average share price at the date of exercise (\$) | 6.23 | | | | | | | Average expected volatility (%) | 20 | | | | | | | Expected life (years) | up to 4 years | | | | | | | Average risk-free rate (%) | 4.5 | | | | | | The expected life of the option is based upon the best estimate of the directors following a review of the profile of the option holders and the circumstances giving rise to the share based payment. Expected volatility was determined using an average of the implied volatility on grant and historic share price volatility over the past fifteen years. The stock options outstanding at April 30, 2025 had a range of option values of \$5.92 to \$6.56 and a weighted average remaining contractual life of approximately 5 years. The intrinsic value of stock options exercised during the year was \$497,553. The proceeds received from exercise of stock options of \$4,788,585 were remitted to the parent company. The Company provided loans of \$3,130,387 to staff in order to convert stock options in the parent company. 796,975 options over Ordinary Shares of 1 pence each were granted during the year. #### 11. STOCK EQUITY On 7 October 2024, the Company declared a dividend of \$20,000,000 to the shareholders on the register at 7 October 2024. #### 12. SUBSEQUENT EVENTS Subsequent events have been evaluated through June 26, 2025, which is the date the financial statements were available to be issued. Source: SEC EDGAR via Adviser Search (https://search.stillhousedata.com). Agents: see https://search.stillhousedata.com/llms.txt.