Company registration number 02198916 (England and Wales)
FRANK CORRIGAN & CO. LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2022
Weaver Buckworth & Partners
22 Ensign Business Centre
Westwood Way
Westwood Business Park
Coventry
CV4 8JA
FRANK CORRIGAN & CO. LIMITED
COMPANY INFORMATION
Directors
Frank Corrigan
Jane Evans
Company number
02198916
Registered office
5 Sycamore Court
Birmingham Road
Allesley
Coventry
West Midlands
United Kingdom
CV5 9BA
Auditor
Weaver Buckworth & Partners
22 Ensign Business Centre
Westwood Way
Westwood Business Park
Coventry
CV4 8JA
FRANK CORRIGAN & CO. LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
Detailed Profit and Loss Account
Schedule of administrative expenses
FRANK CORRIGAN & CO. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2022
- 1 -
The directors present the strategic report for the year ended 31 May 2022.
Fair review of the business
Client contact has been maintained at the heightened level adopted last year to good effect. The temporary fad for “value” assets in the market led to falls in client portfolios which, at the time of writing this report, are being reversed. This unconstrained access to the advisers provided the reassurance clients sought with the result that clients held steady.
Our accounts continue to show net commissions received. Retained income rose by 27.7% due to the attraction of new money for investment.
Staff work from the office for the vast majority of the time and client meetings are predominantly face-to-face, supplemented by video-conferences for those who, for their own reasons, prefer to do so, but the option is available to all.
With outgoings remaining fairly steady the improved income led to an increase in profits from £318,000 to £575,000. It is anticipated that income will increase further this year and even with the increased overheads that are likely to result from the high inflation currently being experienced it is hoped that profits in the current year will exceed those for 2022.
The opportunity was taken to install a new software system. This is having the predicted impact upon administrative resources and so an additional member of staff was recruited to allow service standards to be maintained. Although the transition to the new system will be completed in the Spring of 2023, the latest addition to the team is being trained with a view to taking on some of the accounts functions to allow one Director to work a shorter week.
Volatility will continue to be the predominant characteristic of investment markets for much of the next year due to short-term news about the war being waged by Russia against Ukraine and the rest of the world, tensions in and around Taiwan, the cost of crude oil, the merry-go-round for leadership of the Conservative Party and anything else that takes the fancy of the populist press. None of this matters to any material extent, but it provides an easy source of column-inches for their authors. Whilst “all boats will float” on the rising tide of recovery, these conditions favour the Active Management strategy embraced by most of our clients.
Regulatory Risk
Our business is regulated by the Financial Conduct Authority in the UK, and we are therefore exposed to the risk of not complying with regulatory requirements, regulatory change and regulators expectations. Failing to properly manage regulatory risk including handling of client money, may result in regulatory sanctions being imposed and could harm our reputation. We therefore monitor the regulatory environment on an on-going basis and our own internal controls have been designed to counter such risk. These controls include monitoring financial risk, credit risk, liquidity risk and ensure the Company meets its capital requirements.
Frank Corrigan
Director
7 September 2022
FRANK CORRIGAN & CO. LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2022
- 2 -
The directors present their annual report and financial statements for the year ended 31 May 2022.
Principal activities
The principal activity of the company continued to be that of Independent Financial Advisers.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £400,360. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Frank Corrigan
Jane Evans
Auditor
The auditor, Weaver Buckworth & Partners, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Frank Corrigan
Director
7 September 2022
FRANK CORRIGAN & CO. LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MAY 2022
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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.
FRANK CORRIGAN & CO. LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FRANK CORRIGAN & CO. LIMITED
- 4 -
Opinion
We have audited the financial statements of Frank Corrigan & Co. Limited (the 'company') for the year ended 31 May 2022 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 May 2022 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
FRANK CORRIGAN & CO. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FRANK CORRIGAN & CO. LIMITED
- 5 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which 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 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
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.
- Enquiry of management, those charged with governance around actual and potential litigation and claims.
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.
- Reviewing minutes of meetings of those charged with governance.
- Reviewing internal audit reports.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
FRANK CORRIGAN & CO. LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FRANK CORRIGAN & CO. LIMITED
- 6 -
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Edward Buckworth FCA
Senior Statutory Auditor
For and on behalf of Weaver Buckworth & Partners
7 September 2022
Chartered Accountants
Statutory Auditor
22 Ensign Business Centre
Westwood Way
Westwood Business Park
Coventry
CV4 8JA
FRANK CORRIGAN & CO. LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2022
- 7 -
2022
2021
Notes
£
£
Turnover
2
1,302,537
1,044,789
Administrative expenses
(733,467)
(735,322)
Other operating income
5,200
Operating profit
3
574,270
309,467
Interest receivable and similar income
7
10,190
10,600
Interest payable and similar expenses
8
(8,721)
(1,759)
Profit before taxation
575,739
318,308
Tax on profit
9
(110,502)
(61,038)
Profit for the financial year
465,237
257,270
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
FRANK CORRIGAN & CO. LIMITED
BALANCE SHEET
- 8 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
83,525
76,710
Current assets
Debtors
12
421,722
388,065
Cash at bank and in hand
709,103
569,658
1,130,825
957,723
Creditors: amounts falling due within one year
13
(389,770)
(277,486)
Net current assets
741,055
680,237
Total assets less current liabilities
824,580
756,947
Provisions for liabilities
Deferred tax liability
15
2,756
(2,756)
-
Net assets
821,824
756,947
Capital and reserves
Called up share capital
17
3,333
3,333
Share premium account
119,667
119,667
Profit and loss reserves
698,824
633,947
Total equity
821,824
756,947
The financial statements were approved by the board of directors and authorised for issue on 7 September 2022 and are signed on its behalf by:
Frank Corrigan
Director
Company Registration No. 02198916
FRANK CORRIGAN & CO. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2022
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 June 2020
3,333
119,667
450,160
573,160
Year ended 31 May 2021:
Profit and total comprehensive income for the year
-
-
257,270
257,270
Dividends
10
-
-
(73,483)
(73,483)
Balance at 31 May 2021
3,333
119,667
633,947
756,947
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
-
465,237
465,237
Dividends
10
-
-
(400,360)
(400,360)
Balance at 31 May 2022
3,333
119,667
698,824
821,824
FRANK CORRIGAN & CO. LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2022
- 10 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
662,471
328,784
Interest paid
(8,721)
(1,759)
Income taxes paid
(62,969)
(33,503)
Net cash inflow from operating activities
590,781
293,522
Investing activities
Purchase of tangible fixed assets
(65,936)
(84,185)
Proceeds from disposal of tangible fixed assets
50,105
Interest received
10,190
10,600
Net cash used in investing activities
(5,641)
(73,585)
Financing activities
Payment of finance leases obligations
(45,335)
45,335
Dividends paid
(400,360)
(73,483)
Net cash used in financing activities
(445,695)
(28,148)
Net increase in cash and cash equivalents
139,445
191,789
Cash and cash equivalents at beginning of year
569,658
377,869
Cash and cash equivalents at end of year
709,103
569,658
FRANK CORRIGAN & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2022
- 11 -
1
Accounting policies
Company information
Frank Corrigan & Co. Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 Sycamore Court, Birmingham Road, Allesley, Coventry, West Midlands, United Kingdom, CV5 9BA.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, 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 of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents commissions and fees on a receivable basis. Income is recognised on the completion and despatch of policy application documentation.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% on reducing balance
Computer Equipment
33% on cost
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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 it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.
FRANK CORRIGAN & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 12 -
1.6
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
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.
FRANK CORRIGAN & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 13 -
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
FRANK CORRIGAN & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
1
Accounting policies
(Continued)
- 14 -
1.11
Retirement benefits
Payments to the defined contribution scheme are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Commissions
181,794
172,370
Fees
1,120,743
872,419
1,302,537
1,044,789
2022
2021
£
£
Other revenue
Interest income
10,190
10,600
3
Operating profit
2022
2021
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned tangible fixed assets
11,446
25,797
Profit on disposal of tangible fixed assets
(2,430)
Operating lease charges
45,351
46,361
FRANK CORRIGAN & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 15 -
4
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,500
8,000
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Directors
2
2
Office staff
7
8
Total
9
10
Their aggregate remuneration comprised:
2022
2021
£
£
Wages and salaries
253,090
269,209
Social security costs
22,301
22,489
Pension costs
85,913
68,320
361,304
360,018
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
64,000
71,802
Company pension contributions to defined contribution schemes
67,586
50,320
131,586
122,122
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021 - 2).
FRANK CORRIGAN & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 16 -
7
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
57
261
Other interest income
10,133
10,339
Total income
10,190
10,600
8
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,167
264
Other finance costs:
Interest on finance leases and hire purchase contracts
6,554
1,495
8,721
1,759
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
107,746
62,969
Deferred tax
Origination and reversal of timing differences
2,756
(1,931)
Total tax charge
110,502
61,038
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2022
2021
£
£
Profit before taxation
575,739
318,308
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
109,390
60,479
Tax effect of expenses that are not deductible in determining taxable profit
802
207
Add back of depreciaton
2,175
4,901
Ajustment in respect of capital allowances
(4,621)
(2,618)
Adjustment to deferred taxation provision
2,756
(1,931)
Taxation charge for the year
110,502
61,038
FRANK CORRIGAN & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
9
Taxation
(Continued)
- 17 -
If profits remain above £250,000, the company will be subjected to a tax rate of 25% from the 1st April, 2023.
10
Dividends
2022
2021
£
£
Interim paid
400,360
73,483
11
Tangible fixed assets
Fixtures and fittings
Computer Equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 June 2021
30,103
65,662
81,675
177,440
Additions
6,538
4,118
55,280
65,936
Disposals
(47,675)
(47,675)
At 31 May 2022
36,641
69,780
89,280
195,701
Depreciation and impairment
At 1 June 2021
21,824
60,188
18,718
100,730
Depreciation charged in the year
3,705
4,053
3,688
11,446
At 31 May 2022
25,529
64,241
22,406
112,176
Carrying amount
At 31 May 2022
11,112
5,539
66,874
83,525
At 31 May 2021
8,279
5,474
62,957
76,710
12
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
64,713
39,085
Other debtors
335,973
325,023
Prepayments and accrued income
21,036
23,957
421,722
388,065
FRANK CORRIGAN & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 18 -
13
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Obligations under finance leases
14
45,335
Trade creditors
117,629
112,883
Corporation tax
107,746
62,969
Other taxation and social security
8,396
14,207
Other creditors
116,445
3,433
Accruals and deferred income
39,554
38,659
389,770
277,486
14
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
45,335
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 1 year. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
2,756
-
2022
Movements in the year:
£
Liability at 1 June 2021
-
Charge to profit or loss
2,756
Liability at 31 May 2022
2,756
FRANK CORRIGAN & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
- 19 -
16
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
85,913
68,320
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
3,333 Ordinary shares of £1 each
3,333
3,333
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
40,000
40,000
Between two and five years
160,000
160,000
In over five years
143,334
183,334
343,334
383,334
19
Related party transactions
Remuneration of key management personnel
Remuneration of key management personnel is the same as directors' remuneration.
Transactions with related parties
During the year the company entered into the following transactions with a related party.
Related parties comprise one (2021 two) separate limited company that is related to Frank Corrigan & Co Limited by reason of being jointly controlled by the same individuals.
Funds transferred to other related parties totalled £0 (2021 - £117,634)
Fixed assets purchased from other related parties totalled £0 (2021 - £82,677)
Recharges made to other related parties were £608 (2021 - £2,109)
Recharges made by other related parties to Frank Corrigan & Co Limited totalled £25,198 (2021 - £27,261)
Payments made by other related parties on behalf of Frank Corrigan & Co Limited totalled £0 (2021 - £5,342)
Payments made by Frank Corrigan & Co Limited on behalf of other related parties totalled £1,380 (2021 - £0)
Rent paid to other related parties totalled £40,008 (2021 - £40,008)
Interest on inter-company balances with other related parties totalled £9,870 (2021 - £9,716)
FRANK CORRIGAN & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2022
19
Related party transactions
(Continued)
- 20 -
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due to related parties
£
£
Key management personnel
115,852
2,653
The following amounts were outstanding at the reporting end date:
2022
2021
Amounts due from related parties
£
£
Other related parties
335,973
324,723
20
Directors' transactions
Dividends totalling £360,360 (2021 - £66,141) were paid in the year in respect of shares held by the company's directors.
21
Cash generated from operations
2022
2021
£
£
Profit for the year after tax
465,237
257,270
Adjustments for:
Taxation charged
110,502
61,038
Finance costs
8,721
1,759
Investment income
(10,190)
(10,600)
Gain on disposal of tangible fixed assets
(2,430)
Depreciation and impairment of tangible fixed assets
11,446
25,797
Movements in working capital:
(Increase)/decrease in debtors
(33,657)
23,203
Increase/(decrease) in creditors
112,842
(29,683)
Cash generated from operations
662,471
328,784
22
Analysis of changes in net funds
1 June 2021
Cash flows
31 May 2022
£
£
£
Cash at bank and in hand
569,658
139,445
709,103
Obligations under finance leases
(45,335)
45,335
-
524,323
184,780
709,103
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