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REGISTERED NUMBER: NI626853 (Northern Ireland)















UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

FOR

SDM SOLICITORS LIMITED

SDM SOLICITORS LIMITED (REGISTERED NUMBER: NI626853)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022










Page

Company Information 1

Balance Sheet 2 to 3

Notes to the Financial Statements 4 to 9


SDM SOLICITORS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 OCTOBER 2022







DIRECTORS: Mrs M McKay
G F Breen
A J G Wilson



REGISTERED OFFICE: 38 - 42 Hill Street
Belfast
Co. Antrim
BT1 2LB



REGISTERED NUMBER: NI626853 (Northern Ireland)



ACCOUNTANTS: Baker Tilly Mooney Moore
17 Clarendon Road
Clarendon Dock
Belfast
BT1 3BG



BANKERS: Bank of Ireland
1 Donegall Square South
Belfast
Antrim
BT1 5LR

SDM SOLICITORS LIMITED (REGISTERED NUMBER: NI626853)

BALANCE SHEET
31 OCTOBER 2022

31.10.22 31.10.21
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 145,792 126,000
Tangible assets 5 84,728 115,826
230,520 241,826

CURRENT ASSETS
Debtors 6 1,207,704 816,044
Cash at bank and in hand 5,979,518 4,218,601
7,187,222 5,034,645
CREDITORS
Amounts falling due within one year 7 6,190,751 4,320,241
NET CURRENT ASSETS 996,471 714,404
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,226,991

956,230

CREDITORS
Amounts falling due after more than one
year

8

(30,550

)

(46,752

)

PROVISIONS FOR LIABILITIES (19,749 ) (19,489 )
NET ASSETS 1,176,692 889,989

CAPITAL AND RESERVES
Called up share capital 9 3 3
Retained earnings 1,176,689 889,986
SHAREHOLDERS' FUNDS 1,176,692 889,989

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2022 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:
(a)ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and
(b)preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

SDM SOLICITORS LIMITED (REGISTERED NUMBER: NI626853)

BALANCE SHEET - continued
31 OCTOBER 2022


The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 13 October 2023 and were signed on its behalf by:




G F Breen - Director Mrs M McKay - Director




A J G Wilson - Director


SDM SOLICITORS LIMITED (REGISTERED NUMBER: NI626853)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2022


1. STATUTORY INFORMATION

SDM Solicitors Limited is a private company, limited by shares , registered in Northern Ireland. 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Significant judgements and estimates
In the application of the company’s accounting policies, the directors are required to make judgements,estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The following judgements and estimates have had the most significant effect on amounts recognised in the financial statements.

- Carrying value of goodwill

The carrying value of goodwill is assessed annually by the directors with any indicators of impairment considered. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and the business in general.

The directors also consider the amortisation rates and useful lives on an annual basis to ensure there is sufficient evidence to support these and that the estimates remain reasonable.

- Useful economic lives of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual value of the assets. The useful economic lives and residual values are reassessed annually.

- Valuation of work in progress

Estimates are made in respect of the valuation of work in progress. When assessing the value of work in progress, factors including current trading experience, historical experience, the time management system in place and profile of bills issued immediately after the year end are considered.

- Recoverability of debtors

Estimates are made in respect of the recoverable value of trade debtors. When assessing the level of provision required, factors including current trading experience, historical experience and the ageing profile of debtors are considered.

SDM SOLICITORS LIMITED (REGISTERED NUMBER: NI626853)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2022


2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2015 is being amortised evenly over its estimated useful life of 10 years.

During the year an additional business was purchased giving rise to goodwill of £70,000 which is being amortised over its expected useful life of 5 years.

Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the profit and loss in the year.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 10% on cost
Fixtures, fittings & equipment - 33% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on cost

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

SDM SOLICITORS LIMITED (REGISTERED NUMBER: NI626853)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2022


2. ACCOUNTING POLICIES - continued

Financial instruments
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of 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.

- 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.

- Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. 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.
- 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.

SDM SOLICITORS LIMITED (REGISTERED NUMBER: NI626853)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2022


3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 18 (2021 - 14 ) .

4. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 November 2021 420,000
Additions 70,000
At 31 October 2022 490,000
AMORTISATION
At 1 November 2021 294,000
Amortisation for year 50,208
At 31 October 2022 344,208
NET BOOK VALUE
At 31 October 2022 145,792
At 31 October 2021 126,000

5. TANGIBLE FIXED ASSETS
Improvements Fixtures,
to fittings Motor Computer
property & equipment vehicles equipment Totals
£    £    £    £    £   
COST
At 1 November 2021 87,161 33,914 41,345 46,733 209,153
Additions - 4,888 - 3,196 8,084
Disposals - - (10,750 ) - (10,750 )
At 31 October 2022 87,161 38,802 30,595 49,929 206,487
DEPRECIATION
At 1 November 2021 31,172 28,622 7,215 26,318 93,327
Charge for year 8,717 2,954 7,892 14,394 33,957
Eliminated on disposal - - (5,525 ) - (5,525 )
At 31 October 2022 39,889 31,576 9,582 40,712 121,759
NET BOOK VALUE
At 31 October 2022 47,272 7,226 21,013 9,217 84,728
At 31 October 2021 55,989 5,292 34,130 20,415 115,826

SDM SOLICITORS LIMITED (REGISTERED NUMBER: NI626853)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2022


6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.10.22 31.10.21
£    £   
Trade debtors 663,987 563,105
Other debtors 543,717 252,939
1,207,704 816,044

Included within trade debtors is £330,446 of work in progress (2021: £350,000).

Included in other debtors is a balance of £41,975 (2021:Nil) due from one of the directors. This loan is unsecured, interest free and repayable on demand.

7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.10.22 31.10.21
£    £   
Bank loans and overdrafts 19,073 27,825
Taxation and social security 179,683 163,151
Other creditors 5,991,995 4,129,265
6,190,751 4,320,241

Included in other creditors is £5,940,517 (2021: £4,107,021) of monies due to clients. An equivalent amount is included in cash at bank and in hand.

8. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.10.22 31.10.21
£    £   
Bank loans 30,550 46,752

9. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.10.22 31.10.21
value: £    £   
1 A Ordinary £1 1 1
1 B Ordinary £1 1 1
1 C Ordinary £1 1 1
3 3

10. CONTINGENT LIABILITIES

A contingent liability may exist in respect of a repayment of grant income to HM Revenue and Customs should the conditions under which a grant was awarded to the company not be met. Due to the nature of these contingencies, it is not currently possible to estimate the likelihood of this occurring, nor quantify the financial effect or provide an indication of timing as to the potential liability that may arise.

SDM SOLICITORS LIMITED (REGISTERED NUMBER: NI626853)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 OCTOBER 2022


11. RELATED PARTY DISCLOSURES

During the year the company provided a loan to a related party of £218,975 (2021: £185,000) and paid expenses on its behalf of £Nil (2021: £570).
At the year end the amount owed from the related party was £404,545 (2021:£185,570) and is included in Other Debtors. The loan is unsecured, interest free and repayable on demand.

During the year the company made a loan to one of the directors of £41,975, this loan is unsecured, interest free and repayable on demand.

The company incurred rental charges of £48,000 (2021: £48,000) in respect of the premises from which it operates which is owned by a related party.