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Registration number: 01854813

Howe Maxted Group Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2023

Brebners
Chartered Accountants & Statutory Auditor
1 Suffolk Way
Sevenoaks
Kent
TN13 1YL

 

Howe Maxted Group Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Statement of Income and Retained Earnings

11

Statement of Financial Position

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 23

 

Howe Maxted Group Limited

Company Information

Directors

G C Smith

J Maxted

J Austin

D F Baker

Registered office

17 Hatherley Road
Sidcup
Kent
DA14 4BP

Auditor

Brebners
Chartered Accountants & Statutory Auditor
1 Suffolk Way
Sevenoaks
TN13 1YL

 

Howe Maxted Group Limited

Strategic Report for the Year Ended 31 March 2023

The directors present their strategic report for the year ended 31 March 2023.

Principal activity

The principal activity of the company is that of insurance brokerage and financial services.

Fair review of the business

The company has traded for many years and has established itself within an industry sector that is highly competitive. The company prides itself on providing an excellent service for its existing customer base, a customer base that has grown by a combination of brand loyalty, word of mouth and tactical advertising, as it maintains a family atmosphere.

The company has shown strong and steady growth over the last number of years in a wide variety of products. Some of the products they are one of the few in the industry to offer. This year is no exception and again the company has continued to trade strongly in a difficult market sector. The directors are satisfied with the trading for the year, which has shown growth and has allowed the company to build on the solid foundations formed in previous years.

Turnover this year is comparable to the previous year. The profit before tax of £102,845 is an increase to the previous year of £33,549. The net assets have increased in the year to £951,166 from £888,951.

The company's subsidiary undertakings did not trade during the year.

Key Performance Indicators

Non-Financial Key Performance Indicators

The company seeks to ensure that responsible business practice is fully integrated into the management of all its operations and into the culture of all parts of its business. It believes that the consistent adoption of reasonable business practice is essential for operational excellence and maintain compliance within the industry sector which in turn ensures the delivery of its core objective of sustained profitability.

The directors consider there are collectively numerous non-financial performance indicators but that individually none are key.

 

Howe Maxted Group Limited

Strategic Report for the Year Ended 31 March 2023

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£000

2,474.00

2,484.30

Turnover Growth

%

(.40)

9.25

Net profit margin

%

4.00

2.79

Profit before tax

£000

102.80

69.30


 

Principal risks and uncertainties

Objectives and policies

The company uses various financial instruments including loans, cash, equity capital and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations.

The directors are responsible for determining the level of risk acceptable to to the company. The directors review and agree policies for managing the financial risks which are summarised below.

Market risk

The company operates in a competitive market. If the company does not continue to compete effectively by developing its services and responding to the activities of its competitors it could lose customers and its results, cash flow and financial conditions could be adversely affected.

The company finances its operations through cash deposits and there is therefore exposure to interest rate risk on these deposits.

Foreign currency risk

The company is exposed to currency exchange rate risk due to a proportion of its receivables and operating expenses being denominated in non-Sterling currencies. The net exposure of each currency is monitored and considered not to be significant.

Credit risk

The company's principal assets are cash deposits and trade debtors. The credit risk associated with cash deposits is limited as the accounts are held with major UK High Street banks. The principal credit risk arises therefore from trade debtors and the company manages closely its exposure to bad debts and makes prudent provision when required. Credit checks are undertaken before trade facilities are extended to new customers.

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs to invest cash assets safely and profitably.

The company's policy throughout the year has been to hold cash balances in readily accessible deposits and to utilise leasing facilities for substantial asset acquisitions where favourable rates can be obtained.

Risk Summary

The directors continuously monitor and respond to changes in the company's risk environment, so ensuring that the company remains well placed to address operational, reputational, financial and business risks in a timely and appropriate manner.

 

 

Howe Maxted Group Limited

Strategic Report for the Year Ended 31 March 2023

Future Developments

The company will continue to provide the same excellent service in both client facing and administration activities in all the different facets and functions that it provides. It will continue to maintain and support all revenue streams with equal attentiveness that will be maintained across the company.

The company will continue to push the growth of Personal Lines and Commercial Insurance Sectors which has shown good growth in the last several years. The growth in the business overall will focus on the retention of existing customers and expansion of the company's customer base, in all revenue streams. New customers will be taken up as casualties in the industry occur, relying on the solid base of the company that has been built to accommodate such growth.

The company is preparing to hive down the business into two separate entities, one of which will have the general insurance business with the other having the financial services. This is to be completed in the current year.

The directors are confident that the company's existing strong client base and approach to new business will produce satisfactory results. As a result the directors expect to continue the consolidation of the company's position with a similar result in 2024.
 

Approved by the Board on 2 October 2023 and signed on its behalf by:

.........................................
J Austin
Director

 

Howe Maxted Group Limited

Directors' Report for the Year Ended 31 March 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors of the company

The directors who held office during the year were as follows:

G C Smith

J Maxted

J Austin

D F Baker

Dividends

During the year interim dividends amounting to £20,000 (2022: £20,000) were paid. No final dividend is proposed.

Information included in the Strategic report

The company has chosen in accordance with section 414C(11) Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the large and medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of financial risk management, exposure and future developments.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the director on 2 October 2023 and signed by:



 

.........................................
J Austin
Director

 

Howe Maxted Group Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

 

Howe Maxted Group Limited

Independent Auditor's Report to the Members of Howe Maxted Group Limited
for the Year Ended 31 March 2023

Opinion

We have audited the financial statements of Howe Maxted Group Limited (the 'company') for the year ended 31 March 2023, which comprise the Statement of Income and Retained Earnings, Statement of Financial Position, Statement of Cash Flows, and 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 March 2023 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.

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 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Howe Maxted Group Limited

Independent Auditor's Report to the Members of Howe Maxted Group Limited
for the Year Ended 31 March 2023

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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 Statement of Directors' Responsibilities (set out on page 6), 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.

 

Howe Maxted Group Limited

Independent Auditor's Report to the Members of Howe Maxted Group Limited
for the Year Ended 31 March 2023

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 and the insurance broking industry in which it operates, we determined that the principal risks of non-compliance with laws and regulations related to the reporting framework (FRS 102 and the Companies Act 2006) and UK corporate taxation laws including health and safety legislation, anti-bribery legislation and data protection legislation The company is FCA regulated and any instances of non compliance are reportable. These risks were communicated to our audit team and we remained alert to any indications of non-compliance throughout our audit.

We understood how the company is complying with relevant legislation by making enquiries of management and those responsible for legal and compliance procedures. We also considered the results of our audit procedures and to what extent these corroborate this understanding and assessed the susceptibility of the company’s financial statements to material misstatement. This included consideration of how fraud might occur and evaluation of management’s incentives and opportunities for fraudulent manipulation of the financial statements. In addition a report on client monies held is also compiled.

We designed our audit procedures to identify any non-compliance with laws and regulations. Such procedures included, but were not limited to, inspection of any regulatory or legal correspondence; challenging assumptions and judgements made by management; identifying and testing journal entries with a focus on large or unusual transactions as determined based on our understanding of the business; and identifying and assessing the effectiveness of controls in place to prevent and detect fraud and any instances of non compliance with FCA regulations.

Owing to the inherent limitations of an audit, there remains a risk that a material misstatement may not have been detected, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance with laws and regulations and cannot be expected to detect all instances of non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

The primary responsibility for the detection and prevention of fraud rests with those responsible for governance and management. The further removed non-compliance with laws and regulations is from the events reflected in the financial statements, the less likely the auditor will become aware of it.

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, collusion, omission, misrepresentation or forgery.

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 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.

 

Howe Maxted Group Limited

Independent Auditor's Report to the Members of Howe Maxted Group Limited
for the Year Ended 31 March 2023

......................................
Martin Widdowson (Senior Statutory Auditor)
For and on behalf of

Brebners, Statutory Auditor
1 Suffolk Way
Sevenoaks
TN13 1YL

2 October 2023

 

Howe Maxted Group Limited

Statement of Income and Retained Earnings for the Year Ended 31 March 2023

Note

2023
£

2022
£

Turnover

3

2,474,908

2,484,303

Administrative expenses

 

(2,373,445)

(2,415,075)

Operating profit

5

101,463

69,228

Other interest receivable and similar income

6

1,382

68

 

1,382

68

Profit before tax

 

102,845

69,296

Taxation

10

(20,630)

(16,100)

Profit for the financial year

 

82,215

53,196

Retained earnings brought forward

 

663,221

630,025

Dividends paid

 

(20,000)

(20,000)

Retained earnings carried forward

 

725,436

663,221

 

Howe Maxted Group Limited

Statement of Financial Position as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

11

29,047

23,563

Investments

12

11,001

11,000

Other financial assets

13

6,602

6,602

 

46,650

41,165

Current assets

 

Debtors

14

275,606

181,661

Cash at bank and in hand

 

1,445,482

1,456,471

 

1,721,088

1,638,132

Creditors: Amounts falling due within one year

16

(816,572)

(790,346)

Net current assets

 

904,516

847,786

Net assets

 

951,166

888,951

Capital and reserves

 

Called up share capital

18

4,000

4,000

Share premium reserve

221,730

221,730

Profit and loss account

725,436

663,221

Shareholders' funds

 

951,166

888,951

Approved and authorised by the Board on 2 October 2023 and signed on its behalf by:

 

......................................................................

G C Smith

Director

......................................................................

J Maxted

Director

Company registration number: 01854813

 

Howe Maxted Group Limited

Statement of Cash Flows for the Year Ended 31 March 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

82,215

53,196

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

11,060

7,601

Finance income

6

(1,382)

(68)

Income tax expense

10

20,630

16,100

 

112,523

76,829

Working capital adjustments

 

(Increase)/decrease in trade and other debtors

 

(88,941)

187,032

Increase/(decrease) in trade and other creditors

 

30,715

(184,624)

Cash generated from operations

 

54,297

79,237

Income taxes paid

 

(30,123)

(9,232)

Net cash flow from operating activities

 

24,174

70,005

Cash flows from investing activities

 

Interest received

 

1,382

68

Acquisition of subsidiaries

12

(1)

-

Acquisitions of tangible assets

(16,544)

(10,020)

Net cash flows from investing activities

 

(15,163)

(9,952)

Cash flows from financing activities

 

Dividends paid

 

(20,000)

(20,000)

Net (decrease)/increase in cash and cash equivalents

 

(10,989)

40,053

Cash and cash equivalents at 1 April 2022

 

1,456,471

1,416,418

Cash and cash equivalents at 31 March 2023

 

1,445,482

1,456,471

 

Howe Maxted Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office
17 Hatherley Road
Sidcup
Kent
DA14 4BP
 

The principal activity of the company is that of insurance brokerage and financial services.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except any items disclosed in the accounting policies as being shown at fair value and are presented in sterling, which is the functional currency of the entity.

Group accounts not prepared

The company has taken advantage of the option not to prepare consolidated financial statements contained in Section 399 of the Companies Act 2006 on the basis that the company and its subsidiary undertakings comprise a small group.

Going concern

The company made a profit for the year ended 31 March 2023 and had net assets of £951,166 at that date including cash at bank of £1,156,216 after deducting funds held on behalf of insurance companies in respect of collected premiums due.

The company has returned to normal trading now that the all restrictions put in place for the Covid-19 pandemic have now been lifted, and the directors do not anticipate any further effects. The management accounts in the first quarter of the current financial year show that the company has traded profitably.

On the basis of above, and making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

 

Howe Maxted Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Judgements and sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:

The company exercises judgement to determine useful lives and residual values of computer and office equipment. The assets are depreciated to their estimated residual values of their estimated useful lives.

The company also exercises judgement as to the recoverability of outstanding customer balances. These are monitored on a regular basis and provided as a doubtful debts where appropriate.

A source of estimation uncertainty is that of client compensation and clawbacks. Clawbacks occur when a policy does not go full term and commission is returned. Compensations are agreed upon by the ombudsman and are accounted for as they arise.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable from services rendered in the ordinary course of the company's activities. Commission income on insurance and associated products is recognised when the policy is incepted, except for direct commission which is recognised when it becomes payable.

Commission income on investment products is recognised when the funds are invested.

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 provided that the outcome can be reliably estimated.

Government grants

Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim for payment.

Grants of a revenue nature are credited to income so as to match them with he expenditure to which they relate.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Howe Maxted Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture, Fittings & Equipment

15% - 33% per annum

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Howe Maxted Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
 £

2022
 £

UK Commissions

2,305,651

2,345,115

Rendering of services in UK

63,074

61,043

Overseas commission

106,183

78,145

2,474,908

2,484,303

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
 £

2022
 £

5

Operating profit

Arrived at after charging/(crediting)

2023
 £

2022
 £

Depreciation expense

11,060

7,601

Foreign exchange gains

(18,499)

(9,650)

6

Other interest receivable and similar income

2023
 £

2022
 £

Interest income on bank deposits

1,382

68

7

Staff costs

The aggregate payroll costs were as follows:

2023
 £

2022
 £

Wages and salaries

1,316,973

1,368,653

Social security costs

152,431

161,720

Pension costs, defined contribution scheme

342,204

372,112

Other employee expense

1,921

1,264

1,813,529

1,903,749

 

Howe Maxted Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and support

22

22

Management

4

4

26

26

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
 £

2022
 £

Remuneration

418,028

455,613

Contributions paid to money purchase schemes

112,874

112,616

530,902

568,229

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
 No.

2022
 No.

Accruing benefits under money purchase pension scheme

3

3

In respect of the highest paid director:

2023
 £

2022
 £

Remuneration

163,512

178,512

Company contributions to money purchase pension schemes

21,437

21,308

9

Auditor's remuneration

2023
 £

2022
 £

Audit of the financial statements

12,000

12,000


 

Payable to auditors for non audit services

2023
 £

2022
 £

Corporation tax compliance

12,060

2,460

 

Howe Maxted Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

10

Taxation

Tax charged/(credited) in the income statement

2023
£

2022
£

Current taxation

UK corporation tax

25,634

30,123

Deferred taxation

Arising from origination and reversal of timing differences

(5,004)

(14,023)

Tax expense in the income statement

20,630

16,100

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

102,845

69,296

Corporation tax at standard rate

19,541

13,166

Effect of disallowable items

5,770

3,504

Deferred tax credit relating to changes in tax rates or laws

(3,337)

-

Deferred tax credit movement in the year

(1,667)

(14,023)

Tax decrease from effect of capital allowances and depreciation

(2,068)

(1,131)

Tax increase from timing of pension payments

2,391

14,584

Total tax charge

20,630

16,100

Deferred tax

Deferred tax assets and liabilities

2023

Asset
£

Accelerated capital Allowances

(6,841)

Other timing differences

22,411

15,570

2022

Asset
£

Accelerated capital Allowances

(4,018)

Other timing differences

14,584

10,566

 

Howe Maxted Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

11

Tangible assets

Furniture, fittings and equipment
 £

Cost or valuation

At 1 April 2022

194,480

Additions

16,544

At 31 March 2023

211,024

Depreciation

At 1 April 2022

170,917

Charge for the year

11,060

At 31 March 2023

181,977

Carrying amount

At 31 March 2023

29,047

At 31 March 2022

23,563

12

Investments

2023
 £

2022
 £

Investments in subsidiaries

11,001

11,000

£

Cost or valuation

At 1 April 2022 and 31 March 2023

11,000

Additions

1

At 31 March 2023

11,001

Carrying amount

At 31 March 2023

11,001

At 31 March 2022

11,000

 

Howe Maxted Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Maxted Morrison Limited

17 Hatherley Road
Sidcup
Kent
DA14 4BP

Ordinary

100%

100%

         

Robson Cave & Associates Limited

17 Hatherley Road
Sidcup
Kent
DA14 4BP

Ordinary

100%

100%

         

Howe Maxted (GI) Limited

1 Suffolk Way
Sevenoaks
Kent
TN13 1YL

Ordinary

100%

100%

 

     

13

Other financial assets (current and non-current)

2023
 £

2022
 £

Non-current financial assets

Financial assets at fair value through profit and loss

6,602

6,602

14

Debtors

Note

2023
 £

2022
 £

Trade debtors

 

178,000

93,578

Prepayments

 

82,036

77,517

Deferred tax assets

10

15,570

10,566

Total current trade and other debtors

 

275,606

181,661

15

Cash and cash equivalents

2023
 £

2022
 £

Cash at bank

1,445,482

1,456,471

 

Howe Maxted Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

16

Creditors

2023
 £

2022
 £

Due within one year

Trade creditors

370,678

218,651

Amounts due to group undertakings

11,001

11,000

Social security and other taxes

83,066

102,719

Other payables

20,000

20,000

Accrued expenses

306,193

407,853

Corporation tax liability

25,634

30,123

816,572

790,346

17

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £342,204 (2022 - £372,112).

18

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

4,000

4,000

4,000

4,000

         

19

Commitments and guarantees

Operating leases

The total of future minimum lease payments not reflected in the statement of financial position is as follows:

2023
£

2022
£

Not later than one year

31,250

31,250

Later than one year and not later than five years

125,000

125,000

Later than five years

156,250

187,500

312,500

343,750

 

Howe Maxted Group Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

20

Share-based payments

Enterprise Management Incentive Scheme

Scheme details and movements
At 31 March 2023 options exist over 444 (2022: 444) shares in the company. The options are granted with a fixed exercise price of £135 per share and are exercisable within 10 years from 27 September 2016 at the holders option. There are no other conditions.

No charge arises to the profit and loss in the year (2022: £Nil).

21

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £5.00 (2022:£5.00) per Ordinary share

 

20,000

 

20,000

         

22

Analysis of changes in net debt

At 1 April 2022
£

Financing cash flows
£

At 31 March 2023
£

Cash and cash equivalents

Cash

1,456,472

(10,990)

1,445,482

 

1,456,472

(10,990)

1,445,482

23

Related party transactions

Exemption has been taken under FRS102 paragraph 1AC.35 not to disclose transactions or amounts due with companies that are wholly owned within the group.

The dividends paid in the year shown in note 20 were paid to the directors. At 31 March 2023 an amount of £20,000 (2022: £20,000) was due to the directors.