Company Registration No. 04380777 (England and Wales)
MORTGAGE SUPPORT NETWORK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
MORTGAGE SUPPORT NETWORK LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 5
MORTGAGE SUPPORT NETWORK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
3
5,816
9,592
Current assets
Trade and other receivables
4
144,082
184,009
Cash and cash equivalents
281,271
1,033,028
425,353
1,217,037
Current liabilities
5
(229,050)
(1,066,636)
Net current assets
196,303
150,401
Total assets less current liabilities
202,119
159,993
Provisions for liabilities
6
(16,653)
(17,353)
Net assets
185,466
142,640
Equity
Called up share capital
7
80
80
Capital redemption reserve
20
20
Retained earnings
185,366
142,540
Total equity
185,466
142,640
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 18 May 2022 and are signed on its behalf by:
Mr C M Tanner
Director
Company Registration No. 04380777
MORTGAGE SUPPORT NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
1
Accounting policies
Company information
Mortgage Support Network Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, Unit 1, Southern Gate Office Village, Chichester, West Sussex, PO19 8GR.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The directors have considered relevant information, including the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. The COVID-19 pandemic and the ensuing economic shutdown has had an impact on the company’s operations. In response to the COVID-19 pandemic, the directors have performed a robust analysis of forecast future cash flows taking into account the potential impact on the business of possible future scenarios arising from the impact of COVID-19. These forecasts have also taken into account the fact that the activity in the company will be substantially reduced going forward as the majority of the company's advisers were transferred to a fellow subsidiary HL Partnership Limited in prior years. This analysis also considers the effectiveness of available measures to assist in mitigating the impact.true
Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty in relation to the appropriateness of continuing to adopt the going concern basis in preparing the annual report and accounts.
1.3
Revenue
Revenue is recognised in respect of commission receivable, and services rendered, to the company's network and is shown net of VAT and other sales related taxes. Commission receivable is recognised on approval of a broker's loan application.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
10% per annum on a straight line basis
Computer equipment
20% per annum on a straight line basis
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
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include deposits held at call with banks.
MORTGAGE SUPPORT NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 3 -
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position 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.
The company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other receivables and payables and loans from fellow group undertakings.
Debt instruments like loans from fellow group undertakings and accounts receivable and payable 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 receipts discounted at a market rate of interest. Debt instruments that are payable or receivable within one year are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.8
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.
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.
1.9
Provision for commission clawback
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
The provision for the clawback of commission represents a modelled estimate of the value of commissions reclaimable by product providers in respect of policies cancelled either from outset or which lapsed, based on the past experience of such claims.
2
Employees
The average monthly number of persons employed by the company during the year was 0 (2020 - 0).
MORTGAGE SUPPORT NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 4 -
3
Property, plant and equipment
Fixtures and fittings
Computer equipment
Total
£
£
£
Cost
At 1 January 2021 and 31 December 2021
6,891
62,255
69,146
Depreciation and impairment
At 1 January 2021
2,159
57,395
59,554
Depreciation charged in the year
609
3,167
3,776
At 31 December 2021
2,768
60,562
63,330
Carrying amount
At 31 December 2021
4,123
1,693
5,816
At 31 December 2020
4,732
4,860
9,592
4
Trade and other receivables
2021
2020
Amounts falling due within one year:
£
£
Trade receivables
17,702
13,400
Amounts owed by group undertakings
2,693
Other receivables
123,687
170,609
144,082
184,009
5
Current liabilities
2021
2020
£
£
Trade payables
106,033
118,455
Amounts due to group undertakings
795,808
Other taxation and social security
5,298
Other payables
117,719
152,373
229,050
1,066,636
6
Provisions for liabilities
2021
2020
£
£
Clawback provision
15,853
15,853
Deferred tax liabilities
800
1,500
16,653
17,353
MORTGAGE SUPPORT NETWORK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
6
Provisions for liabilities
(Continued)
- 5 -
The provision for clawbacks on indemnified commissions has been estimated by applying an industry average rate of clawback to the value of commissions potentially reclaimable by product providers during the remaining indemnity period.
7
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
80
80
80
80
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The senior statutory auditor was Robin Evans BA FCA CTA.
The auditor was Carpenter Box.
Carpenter Box is a trading name of Carpenter Box Limited
9
Parent company
The immediate and ultimate parent company is Josewin Limited, a company incorporated in England and Wales. The registered office is 2nd Floor, Unit 1, Southern Gate Office Village, Chichester, West Sussex, PO19 8GR.
Josewin Limited prepares consolidated financial statements and copies can be obtained from Companies House.