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REGISTERED NUMBER: 08043633 (England and Wales)















Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 December 2021

for

Horwich Cohen Coghlan Ltd

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Contents of the Financial Statements
for the Year Ended 31 December 2021










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 13


Horwich Cohen Coghlan Ltd

Company Information
for the Year Ended 31 December 2021







DIRECTORS: B T Coghlan
D J Horwich
R J Myer





SECRETARY: G J Spain





REGISTERED OFFICE: Castlefield House
Liverpool Road
Manchester
M3 4SB





REGISTERED NUMBER: 08043633 (England and Wales)





AUDITORS: Hardy & Company (Hyde) Ltd
Chartered Certified Accountants
& Statutory Auditors
Onward Chambers
34 Market Street
Hyde
Cheshire
SK14 1AH

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Strategic Report
for the Year Ended 31 December 2021


The directors present their strategic report for the year ended 31 December 2021.

REVIEW OF BUSINESS
The company's principal activity during the year was the provision of legal services. These legal services are provided to individuals who have personal injury claims.

Turnover has decreased from £10.8 Million in 2020 to £10.1 Million in 2021, this has resulted in a pre tax loss of £143 thousand compared to a pre-tax profit in 2020 of £477 thousand.

The directors have regard to a number of key performance indicators (KPI) including turnover (fees) and profitability, but work to ensure that their clients, are dealt with in a caring and professional manner, including managing expectations and achieving the best possible outcomes for clients. KPIs such as call response times, length of time to respond to mail, file inactivity, complaints and compliments received are therefore very closely monitored.

PRINCIPAL RISKS AND UNCERTAINTIES
Proposed legislative reforms have now been passed which will be implemented from May 2021.The reforms are to increase the Small Claims Limit for Road Traffic Accident (RTA) related Personal Injury Claims to £5,000 from the current £1,000; introduction of a new fixed tariff system for all claims with an injury duration of 0-24 months; and a prohibition of pre-medical offers to settle RTA related soft tissue injury
claims.

The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis in preparing the annual financial statements.

FUTURE DEVELOPMENTS
The company continues to look at the future opportunities to expand its range of legal services whilst ensuring the core business is secured.

FINANCIAL INSTRUMENTS
The Company's principal instruments are cash balances. In addition, the Company has various other financial assets and liabilities such as trade debtors and trade creditors arising from its operations.

Liquidity risk:
The Company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk:
The Company is exposed to interest rate risk on Client Account and Office Account deposits.

Credit risk:
The Company is not exposed to a high degree of credit risk as surplus funds are minimised due to working capital
requirements. These are then retained in either a short term current account or call deposit account as agreed by the Board of Directors

ON BEHALF OF THE BOARD:





D J Horwich - Director


25 August 2022

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Report of the Directors
for the Year Ended 31 December 2021


The directors present their report with the financial statements of the company for the year ended 31 December 2021.

DIVIDENDS
The following dividends were paid:

A Ordinary shares - £372,330
B Ordinary shares - £262,947
C Ordinary shares - £203,634

The directors do not recommend payment of a final dividend.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2021 to the date of this report.

B T Coghlan
D J Horwich
R J Myer

GOING CONCERN
The Company’s business activities, together with the factors likely to affect its future development, performance and
position are set out in the Strategic Report. The Strategic Report and Directors’ Report further describes the financial position of the Company and liquidity risk.

The Company’s forecast and projections, taking account of reasonably possible changes in trading performance, show that the Company should be able to operate at the current level of profitability and liquidity.

The Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for a period of at least twelve months from the date of approval of the financial statements. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-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.

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Report of the Directors
for the Year Ended 31 December 2021


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Hardy & Company (Hyde) Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D J Horwich - Director


25 August 2022

Report of the Independent Auditors to the Members of
Horwich Cohen Coghlan Ltd


Opinion
We have audited the financial statements of Horwich Cohen Coghlan Ltd (the 'company') for the year ended 31 December 2021 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2021 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Horwich Cohen Coghlan Ltd


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

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

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Horwich Cohen Coghlan Ltd


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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Company we considered those laws and regulations that have a direct impact on the
preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and
opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and
determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce
expenditures, and management bias in accounting estimates and judgemental areas of the financial statements such as revenue recognition.

Audit procedures performed by the engagement team included:
- discussions with management, including consideration of known or suspected instances of non-compliance with
laws and regulations and fraud.
- understanding of management's internal controls designed to prevent and detect irregularities.
- reviewing the litigation records in so far as it related to non-compliance with laws and regulations and fraud.
- reviewing relevant meeting minutes.
- designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing.
- testing transactions entered into outside of the normal course of the Company's business; and
- identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with
laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would
become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not
detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional
misrepresentations, or through collusion

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Paul Campbell (Senior Statutory Auditor)
for and on behalf of Hardy & Company (Hyde) Ltd
Chartered Certified Accountants
& Statutory Auditors
Onward Chambers
34 Market Street
Hyde
Cheshire
SK14 1AH

26 August 2022

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Statement of Comprehensive
Income
for the Year Ended 31 December 2021

31.12.21 31.12.20
Notes £    £    £    £   

TURNOVER 3 10,094,664 10,838,131

Administrative expenses 11,311,377 11,447,215
(1,216,713 ) (609,084 )

Other operating income - 34,913
OPERATING LOSS 5 (1,216,713 ) (574,171 )

Income from participating interests 1,153,593 1,086,013
Interest receivable and similar income 5 12,930
1,153,598 1,098,943
(63,115 ) 524,772

Interest payable and similar expenses 6 80,589 47,082
(LOSS)/PROFIT BEFORE TAXATION (143,704 ) 477,690

Tax on (loss)/profit 7 123,737 (17,578 )
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(267,441

)

495,268

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(267,441

)

495,268

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Statement of Financial Position
31 December 2021

31.12.21 31.12.20
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 111,089 136,954
Investments 11 50,025 50,025
161,114 186,979

CURRENT ASSETS
Debtors 12 7,562,407 7,999,480
Cash at bank and in hand 1,145,161 882,065
8,707,568 8,881,545
CREDITORS
Amounts falling due within one year 13 5,589,789 5,551,953
NET CURRENT ASSETS 3,117,779 3,329,592
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,278,893

3,516,571

ACCRUALS AND DEFERRED INCOME 18 1,263,997 395,323
NET ASSETS 2,014,896 3,121,248

CAPITAL AND RESERVES
Called up share capital 19 1,000 1,000
Retained earnings 20 2,013,896 3,120,248
SHAREHOLDERS' FUNDS 2,014,896 3,121,248

The financial statements were approved by the Board of Directors and authorised for issue on 25 August 2022 and were signed on its behalf by:





D J Horwich - Director


Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Statement of Changes in Equity
for the Year Ended 31 December 2021

Called up
share Retained Total
capital earnings equity
£    £    £   

Balance at 1 January 2020 1,000 3,160,674 3,161,674

Changes in equity
Dividends - (535,694 ) (535,694 )
Total comprehensive income - 495,268 495,268
Balance at 31 December 2020 1,000 3,120,248 3,121,248

Changes in equity
Dividends - (838,911 ) (838,911 )
Total comprehensive income - (267,441 ) (267,441 )
Balance at 31 December 2021 1,000 2,013,896 2,014,896

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Statement of Cash Flows
for the Year Ended 31 December 2021

31.12.21 31.12.20
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (345,378 ) 101,695
Interest paid (80,589 ) (47,082 )
Net cash from operating activities (425,967 ) 54,613

Cash flows from investing activities
Purchase of tangible fixed assets (10,030 ) (37,283 )
Interest received 5 12,930
Dividends received 427,500 632,312
Profit share from LLP received 726,093 453,701
Net cash from investing activities 1,143,568 1,061,660

Cash flows from financing activities
New loans in year 241,140 -
Loan repayments in year - (799,330 )
Amount introduced by directors 143,266 -
Equity dividends paid (838,911 ) (535,694 )
Net cash from financing activities (454,505 ) (1,335,024 )

Increase/(decrease) in cash and cash equivalents 263,096 (218,751 )
Cash and cash equivalents at beginning of
year

2

882,065

1,100,816

Cash and cash equivalents at end of year 2 1,145,161 882,065

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Notes to the Statement of Cash Flows
for the Year Ended 31 December 2021


1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31.12.21 31.12.20
£    £   
(Loss)/profit before taxation (143,704 ) 477,690
Depreciation charges 35,895 33,159
Accrued expenses/ (income) (395,323 ) 66,226
Finance costs 80,589 47,082
Finance income (1,153,598 ) (1,098,943 )
(1,576,141 ) (474,786 )
Decrease/(increase) in trade and other debtors 313,336 (847,745 )
Increase in trade and other creditors 917,427 1,424,226
Cash generated from operations (345,378 ) 101,695

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2021
31.12.21 1.1.21
£    £   
Cash and cash equivalents 1,145,161 882,065
Year ended 31 December 2020
31.12.20 1.1.20
£    £   
Cash and cash equivalents 882,065 1,100,816


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.1.21 Cash flow At 31.12.21
£    £    £   
Net cash
Cash at bank and in hand 882,065 263,096 1,145,161
882,065 263,096 1,145,161
Debt
Debts falling due within 1 year (1,958,860 ) (241,140 ) (2,200,000 )
(1,958,860 ) (241,140 ) (2,200,000 )
Total (1,076,795 ) 21,956 (1,054,839 )

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Notes to the Financial Statements
for the Year Ended 31 December 2021


1. STATUTORY INFORMATION

Horwich Cohen Coghlan Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty
Management do not feel that there are any judgements (apart from those involving estimations) that have been made in the process of applying the entity's accounting policies which have a significant effect on the amounts recognised in the financial statements.

Key sources of estimation uncertainty

Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

Estimated useful life of intangible assets

Amortisation of intangible assets has been based on the estimated useful lives deemed appropriate by the
directors. Any indicators that there has been a significant change in amortisation rates or useful life of an
intangible asset, the amortisation is revised prospectively to reflect the new estimates based on the values
deemed appropriate by the directors.

Impairment of debtors

The company makes an estimate of the recoverable value of trade debtors. When assessing impairment of trade debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Turnover
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.

When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period.

When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% on reducing balance
Computer equipment - 25% on reducing balance

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021


2. ACCOUNTING POLICIES - continued

Investments in associates
Investments in associate undertakings are recognised at cost.

Financial instruments
Financial assets and financial liabilities are recognised when the company becomes a party to the contractual provisions of the instrument.

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 company after deducting all of its liabilities.

(i) Financial assets and liabilities

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a finance transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Non-current debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:

(a) Returns to the holder are (i) a fixed amount; or (ii) a fixed rate of return over the life of the instrument; or (iii) a variable return that, throughout the life of the instrument, is equal to a single referenced quoted or observable interest rate; or (iv) some combination of such fixed rate and variable rates, providing that both rates are positive.
(b) There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.
(c) Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in relevant taxation or law.
(d) There are no conditional returns or repayment provisions except for the variable rate return described in (a) and prepayment provisions described in (c).

Debt instruments that are classified as payable or receivable within one year and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

Other debt instruments not meeting these conditions are measured at fair value through profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.


Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021


2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

3. TURNOVER

The turnover and loss (2020 - profit) before taxation are attributable to the principal activities of the company.

An analysis of turnover by class of business is given below:

31.12.21 31.12.20
£    £   
Rendering of services 10,094,664 10,838,131
10,094,664 10,838,131

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021


3. TURNOVER - continued

Turnover from the rendering of services relates to the company's principal activity of the provision of legal services. These legal services are provided to individuals who have claims after being involved in road traffic accidents.

4. EMPLOYEES AND DIRECTORS
31.12.21 31.12.20
£    £   
Wages and salaries 5,887,492 5,553,132
Other pension costs 327,462 192,379
6,214,954 5,745,511

The average number of employees during the year was as follows:
31.12.21 31.12.20

Fee earners 91 90
Support staff 26 25
Directors 3 3
120 118

31.12.21 31.12.20
£    £   
Directors' remuneration 40,690 40,725

5. OPERATING LOSS

The operating loss is stated after charging:

31.12.21 31.12.20
£    £   
Hire of plant and machinery 25,605 16,554
Depreciation - owned assets 35,895 33,159
Auditors' remuneration 9,000 9,000

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.12.21 31.12.20
£    £   
Bank loan interest 80,589 47,082

7. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the loss for the year was as follows:
31.12.21 31.12.20
£    £   
Deferred tax 123,737 (17,578 )
Tax on (loss)/profit 123,737 (17,578 )

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021


8. DIVIDENDS
31.12.21 31.12.20
£    £   
A Ordinary shares of £1 each
Final 372,330 246,614
B Ordinary shares of £1 each
Final 262,947 184,836
C Ordinary shares of £1 each
Final 203,634 104,244
838,911 535,694

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2021
and 31 December 2021 7,848,000
AMORTISATION
At 1 January 2021
and 31 December 2021 7,848,000
NET BOOK VALUE
At 31 December 2021 -
At 31 December 2020 -

10. TANGIBLE FIXED ASSETS
Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 January 2021 40,633 17,437 288,164 346,234
Additions - - 10,030 10,030
At 31 December 2021 40,633 17,437 298,194 356,264
DEPRECIATION
At 1 January 2021 32,535 9,799 166,946 209,280
Charge for year 2,025 1,911 31,959 35,895
At 31 December 2021 34,560 11,710 198,905 245,175
NET BOOK VALUE
At 31 December 2021 6,073 5,727 99,289 111,089
At 31 December 2020 8,098 7,638 121,218 136,954

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021


11. FIXED ASSET INVESTMENTS
Interest
Interest in other
in participating
associate interests Totals
£    £    £   
COST
At 1 January 2021
and 31 December 2021 25 50,000 50,025
NET BOOK VALUE
At 31 December 2021 25 50,000 50,025
At 31 December 2020 25 50,000 50,025

1st Central Law Limited is an associated company. Its registered office is Castlefield House, Liverpool Road, Manchester, England, M3 4SB.

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.21 31.12.20
£    £   
Trade debtors 1,997,703 1,739,373
Other debtors 878,839 540,796
Deferred tax asset 87,053 210,790
Prepayments and accrued income 4,598,812 5,508,521
7,562,407 7,999,480

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.21 31.12.20
£    £   
Bank loans and overdrafts (see note 14) 2,200,000 1,958,860
Trade creditors 2,431,481 2,656,855
Social security and other taxes 116,518 113,777
VAT 545,849 623,815
Other creditors 117,543 163,514
Directors' current accounts 178,398 35,132
5,589,789 5,551,953

14. LOANS

An analysis of the maturity of loans is given below:

31.12.21 31.12.20
£    £   
Amounts falling due within one year or on demand:
Bank loans 2,200,000 1,958,860

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021


15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
31.12.21 31.12.20
£    £   
Within one year 219,891 195,733

16. SECURED DEBTS

The following secured debts are included within creditors:

31.12.21 31.12.20
£    £   
Bank loans 2,200,000 1,958,860

The bank loan has been secured by way of a first legal charge over the property of both D.J.Horwich and B.T. Coghlan.

D.J. Horwich and B.T.Coghlan, directors of the company, have provided an all monies joint and several guarantee dated 14th March 2014.

17. DEFERRED TAX
£   
Balance at 1 January 2021 (210,790 )
Provided during year 123,737
Balance at 31 December 2021 (87,053 )

18. ACCRUALS AND DEFERRED INCOME
31.12.21 31.12.20
£    £   
Accruals and deferred income 1,263,997 395,323

19. CALLED UP SHARE CAPITAL




Allotted, issued and fully paid:
Number: Class: Nominal 31.12.21 31.12.20
value: £    £   
760 A Ordinary £1 760 760
190 B Ordinary £1 190 190
50 C Ordinary £1 50 50
1,000 1,000

The holders of Ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. All ordinary shares rank equally with regard to the company's residual assets.

Called up share capital represents the nominal value of shares that have been issued.

Horwich Cohen Coghlan Ltd (Registered number: 08043633)

Notes to the Financial Statements - continued
for the Year Ended 31 December 2021


20. RESERVES
Retained
earnings
£   

At 1 January 2021 3,120,248
Deficit for the year (267,441 )
Dividends (838,911 )
At 31 December 2021 2,013,896

21. RELATED PARTY DISCLOSURES

Key management personnel of the entity or its parent (in the aggregate)
31.12.21 31.12.20
£    £   
Salary and overhead recharges 85,920 119,128
Amount due to related party 64,110 136,810

22. POST BALANCE SHEET EVENTS

The directors have evaluated the subsequent events from the date of the financial statements through to the date the financial statements were available to be issued. There were no subsequent events identified which required accrual or disclosure in these financial statements.