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Registered number: 01201277
















J EDWARD SELLARS AND PARTNERS LIMITED




ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023


































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J EDWARD SELLARS AND PARTNERS LIMITED

 
COMPANY INFORMATION


DIRECTORS
Mr R W Cantello 
Mr T S Davis 
Mrs H Diamond 




REGISTERED NUMBER
01201277



REGISTERED OFFICE
The Drive House
Manor Farm

Kennmoor Road

Clevedon

Avon

BS21 6TZ




INDEPENDENT AUDITORS
Bishop Fleming Bath Limited
Chartered Accountants & Statutory Auditors

10 Temple Back

Bristol

BS1 6FL




BANKERS
NatWest Bank plc
9 The Triangle

Clevedon

BS21 6NE






J EDWARD SELLARS AND PARTNERS LIMITED


CONTENTS



Page
Strategic Report
1
Directors' Report
2
Directors' Responsibilities Statement
3
Independent Auditors' Report
4 - 7
Statement of Income and Retained Earnings
8
Statement of Financial Position
9
Notes to the Financial Statements
10 - 24



J EDWARD SELLARS AND PARTNERS LIMITED

 
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

BUSINESS REVIEW
 
The company has had a successful year maintaining strong income and profitability. Profit before tax is £669,219 (2022: £891,982).
Investment management income is tied to the value of the funds under management which are impacted by prevailing economic conditions. The directors consider that the performance of this side of the business in the year has exceeded expectations in a challenging environment through pro-active management of the portfolios.

PRINCIPAL RISKS AND UNCERTAINTIES
 
The directors consider that the principal risks facing the company are;
Loss of staff - Staff are a significant asset to the business. Retaining the services of key staff is essential to on going revenue generation. The Board looks to provide development opporunities to staff to expand their roles and encourage greater participation in the business.
Regulatory and financial - The risk of breaches by employees of FCA rules. The Company has a compliance function that provides training as well as monitoring compliance performance. Regulatory capital requirements are also closely monitored. The Company retains capital balances in excess of current requirements.
The application of the MIFID II directive and GDPR to all aspects of the business has been challenging but the directors are confident that business has adapted well to new requirements with the minimum of interruption.
Market risk - The Company is affected by conditions in the financial markets and the wider economy, It manages this by closely monitoring market conditions and maintaining adequate liquid capital accordingly.

FINANCIAL KEY PERFORMANCE INDICATORS
 
The directors consider turnover, profit before tax and net assets to be the key financial performance indicators.

OTHER KEY PERFORMANCE INDICATORS
 
The company has documented the disclosures required by the FCA. These are available from the company's website at www.jesellars.co.uk
The Capital Requirements Directive IV (CRD IV) requires country by country reporting (CBCR). However, as shown in the notes to these financial statements all turnover is derived from the UK and the company has no establishments overseas. The requirement is therefore met by the information disclosed in these financial statements.


This report was approved by the board on 19 October 2023 and signed on its behalf.



Mr R W Cantello
Director

Page 1


J EDWARD SELLARS AND PARTNERS LIMITED

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023

The directors present their report and the financial statements for the year ended 30 June 2023.

PRINCIPAL ACTIVITY

The principal activities of the company during the year were those of stockbroking and investment management.

DIRECTORS

The directors who served during the year were:

Mr R W Cantello 
Mr T S Davis 
Mrs H Diamond 

ENGAGEMENT WITH SUPPLIERS, CUSTOMERS AND OTHERS

The Company fosters business relationships with its clients by acting on feedback, using dedicated customer relationship managers and by maintaining a high quality of service at all times. The Company fosters business relationships with its suppliers by supporting a high number of local suppliers, ensuring relationships are mutually beneficial and paying invoices within agreed payment terms.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

AUDITORS

The auditorsBishop Fleming Bath Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 






Mr R W Cantello
Director

Date: 19 October 2023

The Drive House
Manor Farm
Kennmoor Road
Clevedon
Avon
BS21 6TZ

Page 2


J EDWARD SELLARS AND PARTNERS LIMITED

 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 3


J EDWARD SELLARS AND PARTNERS LIMITED

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF J EDWARD SELLARS AND PARTNERS LIMITED
OPINION


We have audited the financial statements of J Edward Sellars and Partners Limited (the 'Company') for the year ended 30 June 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policiesThe 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 30 June 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


CONCLUSIONS RELATING TO GOING CONCERN


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


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


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


OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 4


J EDWARD SELLARS AND PARTNERS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF J EDWARD SELLARS AND PARTNERS LIMITED (CONTINUED)

OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the 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.


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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.


Page 5


J EDWARD SELLARS AND PARTNERS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF J EDWARD SELLARS AND PARTNERS LIMITED (CONTINUED)

AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
the nature of the industry and sector, control environment, and business performance including the design and remuneration of the risks and irregularities within the entity;
results of enquiries with management, the directors in relation to their own identification and assessment of the risks of irregularities within the entity;
management's incentives and opportunities for fraudulent manipulation of the Financial Statements (including the risk of override of controls); and
any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to: identifying, evaluating and whether they were aware of any instances of non-compliance; detecting and responding to the risks of fraud and whether they have any knowledge of any actual, suspected or alleged fraud; the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. 

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to year-end cut-off. In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override. 

We have also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or avoid a material penalty. We identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulatory principles, specifically those established by the Financial Conduct Authority. Other areas that we considered included data protection legislation and employment law.

Our procedures to respond to the risks identified included the following:

Enquiring of managemnet in relation to actual and potential claims or litigation:
Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
Assessing whether the judgements made in making the accounting estimates are indicative of a potential bias; 
Reviewing the financial statement disclosures and testing to supporting documentation to assess the recognition of revenue;
In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business; and, 
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance
Page 6


J EDWARD SELLARS AND PARTNERS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF J EDWARD SELLARS AND PARTNERS LIMITED (CONTINUED)

with provisions of relevant laws and regulations described as having a direct effect on the financial statements. 

With regard to the risks of non-compliance with laws and regulations and breaches of UK regulatory principles, specifically those established by the Financial Conduct Authority, we considered the extent to which non-compliance might have a material effect on the Financial Statements. Our work included:

Gaining an understanding of current activities, the scope of authorisation and the effectiveness of control environment;
Reading any relevant correspondence with the Financial Conduct Authority;
Reviewing registers maintained regarding any complaints, errors and breaches; and, 
Discussions with management and the compliance team.

We also communicated identified laws and refulations and potential fraud risks to all members of the engagement team and remained alert to possible indicators of fraud or non-compliance with laws and regulations throughout the audit. 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from an error, as fraud may involve deliberate concealment by, for example, foregery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulationsis from teh events and transactions reflected in the financial statements, the less likely we would become aware of it.  
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


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 2006Our 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 Auditors' 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.






Simon Morrison FCA (Senior Statutory Auditor)
for and on behalf of
Bishop Fleming Bath Limited
Chartered Accountants
Statutory Auditors
10 Temple Back
Bristol
BS1 6FL

20 October 2023
Page 7


J EDWARD SELLARS AND PARTNERS LIMITED

 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2023

2023
2022
Note
£
£

  

Turnover
 4 
2,609,805
2,988,555

Cost of sales
  
(350,255)
(484,961)

Gross profit
  
2,259,550
2,503,594

Administrative expenses
  
(1,572,247)
(1,593,259)

Other operating income
 5 
-
24,961

Operating profit
 6 
687,303
935,296

Interest payable and similar expenses
 10 
(18,084)
(43,314)

Profit before tax
  
669,219
891,982

Tax on profit
 11 
(139,320)
(165,649)

Profit after tax
  
529,899
726,333

  

  

Retained earnings at the beginning of the year
  
5,211,434
4,485,101

  
5,211,434
4,485,101

Profit for the year
  
529,899
726,333

Dividends declared and paid
  
(4,000,000)
-

Retained earnings at the end of the year
  
1,741,333
5,211,434
There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 10 to 24 form part of these financial statements.

Page 8


J EDWARD SELLARS AND PARTNERS LIMITED
REGISTERED NUMBER:01201277

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
13,786
30,364

  
13,786
30,364

Current assets
  

Debtors: amounts falling due within one year
 15 
2,205,311
6,007,952

Cash at bank and in hand
 16 
91,286
209,297

  
2,296,597
6,217,249

Creditors: amounts falling due within one year
 17 
(436,050)
(902,279)

Net current assets
  
 
 
1,860,547
 
 
5,314,970

Total assets less current liabilities
  
1,874,333
5,345,334

Provisions for liabilities
  

Deferred tax
 18 
-
(900)

  
 
 
-
 
 
(900)

Net assets
  
1,874,333
5,344,434


Capital and reserves
  

Called up share capital 
 19 
10,120
10,120

Share premium account
 20 
122,880
122,880

Profit and loss account
 20 
1,741,333
5,211,434

  
1,874,333
5,344,434


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





Mr R W Cantello
Director

Date: 19 October 2023

The notes on pages 10 to 24 form part of these financial statements.

Page 9


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1.


GENERAL INFORMATION

J. Edward Sellars and Partners Limited is a private company limited by shares and incorporated in England within the United Kingdom. The address of the registered office is given in the reference and adminstrative details on page 1.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of NinePM Limited as at 30 June 2023 and these financial statements may be obtained from the company's registered office.

Page 10


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.ACCOUNTING POLICIES (continued)

 
2.3

GOING CONCERN

The financial statements have been prepared on a going concern basis which assumes that the company will continue in existence for the foreseeable future.
The directors, taking account of reasonably probable changes in trading performance, believe that the company is able to operate within the level of its current financing.
The company is reliant upon retaining its regulated status. Regulatory changes under the Financial Conduct Authority (FCA) that took effect in January 2022 include the eligible assets and liabilities of the whole group in assessing the financial capital adequacy of this company.
This is a key component in the company and group being able to maintain its regulated status which is required for it to trade. Current projections indicate a deficit in relevant funds for meeting FCA capital adequacy requirements at a group level. Company level capital adequacy requirements have been met at company level.
The directors have developed a plan to rectify any potential deficit which will provide a route to compliance with the revised regulatory conditions in a reasonable timeframe. This plan includes the ongoing disposal of certain equine and other investments in the parent company to realise profits and cash which will also be eligible to be included in capital adequacy calculations. Progress towards this target has been made in the year ending 30 June 2023 with a reduction in the capital adequacy deficit at group level during the year.
The directors are therefore satisfied that the company has sufficient resources to meet its expected debt finance service requirements. The directors therefore consider that it is appropriate to prepare the accounts on a going concern basis.

 
2.4

REVENUE

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Stockbroking revenue comprises fees and is recognised in accordance with the date of the underlying transaction. 
Investment management revenue comprises initial on ongoing management fees. Initial fees are recognised on an accruals basis from the date a transaction is approved by the client. Management fees are charged in arrears.

 
2.5

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 11


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.ACCOUNTING POLICIES (continued)


2.5
TANGIBLE FIXED ASSETS (CONTINUED)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
25%
Office equipment
-
25%
Computer equipment
-
25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.7

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 12


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.ACCOUNTING POLICIES (continued)

 
2.8

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 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are
Page 13


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.ACCOUNTING POLICIES (continued)


2.8
FINANCIAL INSTRUMENTS (CONTINUED)

discharged or cancelled.

 
2.9

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.10

GOVERNMENT GRANTS

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

 
2.11

FINANCE COSTS

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.12

DIVIDENDS

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.13

OPERATING LEASES: THE COMPANY AS LESSEE

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.14

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.15

BORROWING COSTS

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 14


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.ACCOUNTING POLICIES (continued)

 
2.16

PROVISIONS FOR LIABILITIES

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.

 
2.17

CURRENT AND DEFERRED TAXATION

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

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 income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Revenue recognition
The directors recognise revenue on the completion of a transaction. Amounts recoverable on completed transactions but not received are recognised at the expected value. Expected value is determined by the market price of the transaction at the time of completion.
 

Page 15


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

4.


TURNOVER

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Investment management fees
1,268,492
1,335,353

Stockbroking revenue
1,341,313
1,653,202

2,609,805
2,988,555


2023
2022
£
£

United Kingdom
2,609,805
2,988,555

2,609,805
2,988,555


All turnover arose within the United Kingdom.


5.


OTHER OPERATING INCOME

2023
2022
£
£

Government grants receivable
-
24,961

-
24,961



6.


OPERATING PROFIT

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
138,737
145,144

Page 16


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

7.


AUDITORS' REMUNERATION

During the year, the Company obtained the following services from the Company's auditors and their associates:


2023
2022
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
12,500
11,500

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


8.


EMPLOYEES

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
943,269
1,012,490

Social security costs
113,909
118,625

Cost of defined contribution scheme
66,032
63,099

1,123,210
1,194,214


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Stockbroking and Investment Management
20
20


9.


DIRECTORS' REMUNERATION

2023
2022
£
£

Directors' emoluments
135,250
138,500

Company contributions to defined contribution pension schemes
7,008
7,008

142,258
145,508


During the year retirement benefits were accruing to 2 directors (2022: 2) in respect of defined contribution pension schemes.

Page 17


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

10.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Other loan interest payable
18,084
43,314

18,084
43,314


11.


TAXATION


2023
2022
£
£

CORPORATION TAX


Current tax on profits for the year
140,481
167,262

Adjustments in respect of previous periods
-
(1)


140,481
167,261


TOTAL CURRENT TAX
140,481
167,261

DEFERRED TAX


Origination and reversal of timing differences
(1,161)
(1,612)

TOTAL DEFERRED TAX
(1,161)
(1,612)


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
139,320
165,649
Page 18


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
 
11.TAXATION (CONTINUED)


FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 20.5% (2022: 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
669,219
891,982


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20.5% (2022: 19%)
137,190
169,477

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2,060
3,453

Capital allowances for year in excess of depreciation
2,150
3,247

Adjustments to tax charge in respect of prior periods
-
(1)

Remeasurement of deferred tax charge for change in tax rates
(209)
(388)

Group relief
(1,871)
(10,139)

TOTAL TAX CHARGE FOR THE YEAR
139,320
165,649


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.


12.


DIVIDENDS

2023
2022
£
£


Ordinary dividend
4,000,000
-

4,000,000
-

Page 19


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

13.


INTANGIBLE ASSETS




Computer software

£



COST


At 1 July 2022
18,000



At 30 June 2023

18,000



AMORTISATION


At 1 July 2022
18,000



At 30 June 2023

18,000



NET BOOK VALUE



At 30 June 2023
-



At 30 June 2022
-



Page 20


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

14.


TANGIBLE FIXED ASSETS





Long-term leasehold property
Office equipment
Computer equipment
Total

£
£
£
£



COST OR VALUATION


At 1 July 2022
55,227
29,104
42,595
126,926


Additions
-
2,237
-
2,237



At 30 June 2023

55,227
31,341
42,595
129,163



DEPRECIATION


At 1 July 2022
33,347
25,228
37,987
96,562


Charge for the year on owned assets
13,837
1,635
3,343
18,815



At 30 June 2023

47,184
26,863
41,330
115,377



NET BOOK VALUE



At 30 June 2023
8,043
4,478
1,265
13,786



At 30 June 2022
21,880
3,876
4,608
30,364


15.


DEBTORS

2023
2022
£
£


Amounts owed by group undertakings
2,004,814
5,759,814

Other debtors
112,575
117,690

Prepayments and accrued income
87,661
130,448

Deferred taxation
261
-

2,205,311
6,007,952


Amounts due from group undertakings are interest free and repayable on demand however the directors do not expect repayment of the balance within one year.

Page 21


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

16.


CASH AND CASH EQUIVALENTS

2023
2022
£
£

Cash at bank and in hand
91,286
209,297

91,286
209,297



17.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
2022
£
£

Other loans
-
342,003

Corporation tax
240,156
281,721

Other taxation and social security
34,254
78,467

Other creditors
2,318
2,279

Accruals and deferred income
159,322
197,809

436,050
902,279


Other loans carry an interest rate of 7.25% and are secured by way of a debenture over the assets of the company and the parent company, Nine PM Limited.


18.


DEFERRED TAXATION




2023


£






At beginning of year
(900)


Charged to profit or loss
1,161



AT END OF YEAR
261

The deferred taxation balance is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(42)
(1,469)

Short term timing differences
303
569

261
(900)

Page 22


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

19.


SHARE CAPITAL

2023
2022
£
£
ALLOTTED, CALLED UP AND FULLY PAID



10,120 (2022: 10,120) Ordinary shares of £1 each
10,120
10,120



20.


RESERVES

Share premium account

This includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Profit and loss account

This includes all current and prior period retained profits and losses. All are available for distribution. 


21.


PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund at the year end and amounted to £2,318 (2022: £2,279).


22.


COMMITMENTS UNDER OPERATING LEASES

At 30 June 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
103,370
70,869

Later than 1 year and not later than 5 years
15,898
70,005

119,268
140,874

Page 23


J EDWARD SELLARS AND PARTNERS LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

23.


RELATED PARTY TRANSACTIONS

The company has taken advantage of the exemptions offered under FRS102 to not disclose transactions with group companies as it is a wholly owned subsidiary within a group whose consolidated financial statements are publicly available.
At the balance sheet date the company was owed £2,004,814 (2022: £5,759,814) by its fellow group companies.
At the balance sheet date the company was owed £52,774 (2022: £64,474) by a company under common control.
The company paid £36,000 (2022: £36,000) to a company under common control.


24.


CONTROLLING PARTY

The immediate and ultimate parent company is NinePM Limited, a company incorporated in England and Wales. There is no controlling party.

 
Page 24