Company Registration No. 01516845 (England and Wales)
Moore Kingston Smith Corporate Finance Limited
Annual report and financial statements
For the year ended 30 April 2023
Moore Kingston Smith Corporate Finance Limited
Company Information
Directors
M. Fecher
M. Meadows
M. Penfold
J. Cowie
N. Thompson
P. Winterflood
D. Leaman
K. Stone
S. Orriss
Secretary
I. Rixon
Company number
01516845
Registered office
9 Appold Street
London
EC2A 2AP
Auditor
Price Bailey LLP
Tennyson House
Cambridge Business Park
Cambridge
CB4 0WZ
Moore Kingston Smith Corporate Finance Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Income statement
10
Statement of financial position
11
Statement of changes in equity
12
Notes to the financial statements
13 - 18
Moore Kingston Smith Corporate Finance Limited
Strategic Report
For the year ended 30 April 2023
Page 1
The directors present their strategic report for the year ended 30 April 2023.
Principal activities and review of the business
The principal activity of the company continued to be that of the provision of corporate finance services.
The results for the year which showed an 83% increase in turnover compared to 2022 were considered very good in the light of the market pressures arising from uncertain macro economic outlook and rising interest rates. We work closely with our clients to enable them to deliver their long term strategies. Our pipeline is strong and will support continued growth.
The directors consider that the key performance indicator is revenue. Income was £4,012,010 compared to £2,195,715 in the previous year.
Principal risks and uncertainties
The company's risk management processes are designed to identify, assess, monitor, report, manage and mitigate each of the various types of risk and uncertainty. These risks include the UK Government's policy as regards the sale of financial services products and changes in the regulatory environment.
Development and performance
The directors of the company continue to seek new business opportunities. Revenue increased mainly due to success fees linked to completed transactions. Strong long term relationships exist with clients and introducers and the board expects the company to continue to grow and will focus on building the pipeline and relationships to capitalise on opportunities as the economy emerges from the current situation.
Statement by the directors relating to their statutory duties under section 172(1) of the Companies Act 2006
The Directors, in line with their duties under s172 of the Companies Act 2006, act individually and collectively in the way they consider, in good faith, would be most likely to promote the success of the Company for the benefit of its member, and in doing so have regard, amongst other matters, to the:
· Likely consequences of any decision in the long term
· Interests of the company's employees
· Need to foster the company's business relationships with suppliers, customers and others
· Impact of the company's operations on the community and the environment
· Desirability of the company maintaining a reputation for high standards of business conduct
· Need to act fairly as between members of the company
The Directors’ regard to these matters is embedded in their decision-making process, through the Company’s business strategy, culture, governance framework, management information flows and stakeholder engagement processes. The Company’s business strategy is focused on achieving success for the Company in the long-term. In setting this strategy, the Board takes into account the impact of relevant factors and stakeholder interests on the Company’s performance. The Board also identifies principal risks facing the business and sets risk management objectives. The Board promotes a culture of upholding the highest standards of business conduct and regulatory conduct. The Board ensures these core values are communicated to the Company’s employees and embedded in the Company’s policies and procedures, employee induction and training programmes and its risk control and oversight framework. The Board recognises that building strong and lasting relationships with our stakeholders will help us to deliver our strategy in line with our long-term values, and operate a sustainable business.
Moore Kingston Smith Corporate Finance Limited
Strategic Report (Continued)
For the year ended 30 April 2023
Page 2
The Directors are supported in the discharge of their duties by:
A continuing professional development programme to further their understanding of their duties and obligations under applicable law and regulations
A process which ensures the provision of timely management information and escalation through reporting lines to the Board
Agenda planning for Board and Committee meetings to provide sufficient time for the consideration and discussion of key matters.
Stakeholders
The Board understands the importance of engagement with all of its stakeholders and gives appropriate weighting to the outcome of its decisions for the relevant stakeholder in weighing up how best to promote the success of the Company. The Board regularly discusses issues concerning employees, clients, suppliers, community and environment, regulators and its shareholder, which it takes into account in its discussions and in its decision-making process. In addition to this, the Board seeks to understand the interests and views of the Company’s stakeholders by engaging with them directly when required. The below summarises the key stakeholders and how we engage with each:
Employees
Our employees contribute to a positive working culture and healthy working environment. Employees are key to the success of our business. In addition to aiming to be a responsible employer in our approach to pay and benefits, we continue to engage with our team to ascertain which training and development opportunities should be made available to improve our team’s productivity and our individual employees’ potential within the business. We continually invest in employee development and wellbeing to create and encourage an inclusive culture within the organisation. Our employee appraisal programme encourages employee feedback and facilities the opportunity for both employees and directors to set performance goals on an annual basis. Our culture invites different perspectives, new ideas and opportunities for growth. We work hard to ensure employees feel welcome and are valued and recognised for their hard work.
Clients and Introducers
Clients and introducers are at the centre of our business. We aim to build lasting relationships with current and potential clients to understand their objectives and requirements. We are in regular contact with clients in order to meet their needs. We regularly host and engage in webinars for clients on topical issues relevant to M&A. We also host regular face-to-face client and introducer events and seminars. We take a consultative approach with clients focused on building long-term relationships and providing best advice.
Suppliers
We work with a wide range of suppliers and remain committed to being fair and transparent in our dealings with all of our suppliers. Suppliers are generally relevant to the whole group and the group has, where relevant, procedures in place requiring due diligence of suppliers as to their internal governance, including for example, their anti-bribery and corruption practices, data protection policies, modern slavery matters and ESG values. The group has systems and processes in place to ensure suppliers are paid in a timely manner.
Moore Kingston Smith Corporate Finance Limited
Strategic Report (Continued)
For the year ended 30 April 2023
Page 3
Stakeholders (continued)
Community and The Environment
The Board's approach to social responsibility, diversity & the community is of high importance. Our parent entity, Moore Kingston Smith LLP, has a focussed strategy in this area which we are part of. Corporate social responsibility principles are part of our culture and decision making process. Diversity and Inclusion is a key pillar for the whole Moore Kingston Smith group. The Board has continued to support various group events through our partnership with Mind to promote wellness in the workplace.
M. Meadows
Director
23 August 2023
Moore Kingston Smith Corporate Finance Limited
Directors' Report
For the year ended 30 April 2023
Page 4
The directors present their annual report and financial statements for the year ended 30 April 2023.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
M. Fecher
M. Meadows
M. Penfold
J. Cowie
N. Thompson
P. Winterflood
D. Leaman
D. Ryan
(Resigned 31 December 2022)
K. Stone
(Appointed 3 May 2022)
S. Orriss
(Appointed 3 May 2022)
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £1,900,000. The directors do not recommend payment of a final dividend.
Qualifying third party indemnity provisions
The parent, Moore Kingston Smith LLP, has made qualifying third party indemnity provisions for the benefit of the company's directors during the year. These provisions remain in force at the reporting date.
Auditor
The auditor, Price Bailey LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
Each of the Directors in office at the date of approval of this annual report confirms that:
seach Director is aware, there is no relevant audit information of which the company’s auditor is unaware, and
the irector has taken all the steps that he/she ought to have taken as a director in order to make himself/herself aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Strategic Report
In accordance with s414C(11) of the Companies Act 2006, the information relating to review of business and financial risk management are included in the Strategic Report.
On behalf of the board
M. Meadows
Director
23 August 2023
Moore Kingston Smith Corporate Finance Limited
Directors' Responsibilities Statement
For the year ended 30 April 2023
Page 5
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Moore Kingston Smith Corporate Finance Limited
Independent Auditor's Report
to the Members of Moore Kingston Smith Corporate Finance Limited
Page 6
Opinion
We have audited the financial statements of Moore Kingston Smith Corporate Finance Limited (the 'company') for the year ended 30 April 2023 which comprise the Income Statement, the Statement Of Financial Position, the Statement of Changes in Equity 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 FRS 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 April 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Moore Kingston Smith Corporate Finance Limited
Independent Auditor's Report (Continued)
to the Members of Moore Kingston Smith Corporate Finance Limited
Page 7
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' Responsibilities Statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Moore Kingston Smith Corporate Finance Limited
Independent Auditor's Report (Continued)
to the Members of Moore Kingston Smith Corporate Finance Limited
Page 8
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.
As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
Moore Kingston Smith Corporate Finance Limited
Independent Auditor's Report (Continued)
to the Members of Moore Kingston Smith Corporate Finance Limited
Page 9
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
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.
The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.
Our approach was as follows:
We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, UK taxation legislation and rules and regulations as prescribed by the Financial Conduct Authority.
We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.
We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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 by, for example, forgery or intentional misrepresentations, or through collusion.
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.
Martin Clapson FCA (Senior Statutory Auditor)
for and on behalf of Price Bailey LLP
23 August 2023
Chartered Accountants
Tennyson House
Statutory Auditor
Cambridge Business Park
Cambridge
CB4 0WZ
Moore Kingston Smith Corporate Finance Limited
Income Statement
For the year ended 30 April 2023
Page 10
2023
2022
Notes
£
£
Turnover
3
4,012,010
2,195,715
Cost of sales
(770,785)
(602,894)
Gross profit
3,241,225
1,592,821
Administrative expenses
(127,941)
(84,144)
Operating profit
4
3,113,284
1,508,677
Interest receivable and similar income
6
1,362
54
Profit before taxation
3,114,646
1,508,731
Tax on profit
7
(608,634)
(286,757)
Profit for the financial year
2,506,012
1,221,974
The Income Statement has been prepared on the basis that all operations are continuing operations.
Moore Kingston Smith Corporate Finance Limited
Statement Of Financial Position
For the year ended 30 April 2023
Page 11
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
9
100
100
Current assets
Debtors
11
1,260,604
257,984
Cash at bank and in hand
461,519
542,894
1,722,123
800,878
Creditors: amounts falling due within one year
12
(865,272)
(550,039)
Net current assets
856,851
250,839
Total assets less current liabilities
856,951
250,939
Capital and reserves
Called up share capital
13
50,000
50,000
Profit and loss reserves
806,951
200,939
Total equity
856,951
250,939
The financial statements were approved by the board of directors and authorised for issue on 23 August 2023 and are signed on its behalf by:
M. Meadows
Director
Company Registration No. 01516845
Moore Kingston Smith Corporate Finance Limited
Statement of Changes in Equity
For the year ended 30 April 2023
Page 12
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2021
50,000
78,965
128,965
Year ended 30 April 2022:
Profit and total comprehensive income for the year
-
1,221,974
1,221,974
Dividends
8
-
(1,100,000)
(1,100,000)
Balance at 30 April 2022
50,000
200,939
250,939
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
2,506,012
2,506,012
Dividends
8
-
(1,900,000)
(1,900,000)
Balance at 30 April 2023
50,000
806,951
856,951
Moore Kingston Smith Corporate Finance Limited
Notes to the Financial Statements
For the year ended 30 April 2023
Page 13
1
Accounting policies
Company information
Moore Kingston Smith Corporate Finance Limited is a company limited by shares domiciled and incorporated in England and Wales. The registered office is 9 Appold Street, London, EC2A 2AP.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Exemptions for qualifying entities under FRS 102
The company has taken advantage of the following exemptions under the provisions of FRS 102:
(i) The requirements of Section 7 Statement of Cash Flows and Section 3 Financial Statement Presentation paragraph 3.17 (d) to prepare a statement of cash flows on the basis that the company is a qualifying entity and the company's ultimate parent, Moore Kingston Smith LLP, includes the company's cash flows in its consolidated financial statements; and
(ii) From disclosing the company key management personnel compensation, as required by paragraph 33.7.
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover represents amounts receivable for corporate finance services supplied net of value added tax. Success fee income is recognised in the period in which the successful transaction is completed. Fees are not recognised where the right to receive payment is contingent on events outside the control of the entity. Other income is recognised in the period when the services are supplied. Fees which had not been invoiced by the balance sheet date are shown as unbilled debtors.
1.5
Investments in subsidiary companies
Interests in subsidiaries, associates and jointly controlled entities are held at cost less accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the Company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Moore Kingston Smith Corporate Finance Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
Page 14
1.6
Group accounts
The financial statements present information about the company as an individual entity and not about its group. The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated financial statements.
1.7
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
Basic financial instruments are measured at amortised cost. The Company has no other financial instruments or basic financial instruments measured at fair value.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
Moore Kingston Smith Corporate Finance Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 15
2
Judgements and key sources of estimation uncertainty
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.
There are no critical accounting estimates or judgements applied by the directors which have a significant impact on the amounts disclosed in the financial statements.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover
Corporate finance services
4,012,010
2,195,715
The turnover and profit before tax are attributable to the one principal activity of the company, all of which arose in the United Kingdom.
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
6,350
4,450
5
Employees
There were no employees during the year apart from the directors.
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
1,362
54
Moore Kingston Smith Corporate Finance Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 16
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
608,634
286,928
Adjustments in respect of prior periods
(171)
Total current tax
608,634
286,757
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
3,114,646
1,508,731
Expected tax charge based on the standard rate of corporation tax in the UK of 19.49% (2022: 19.00%)
607,045
286,659
Tax effect of expenses that are not deductible in determining taxable profit
1,589
269
Adjustments in respect of prior years
(171)
Taxation charge for the year
608,634
286,757
8
Dividends
2023
2022
£
£
Final paid
1,900,000
1,100,000
9
Investments
Shares in subsidiary undertakings
£
Cost
At 1 May 2022 & 30 April 2023
100
Carrying amount
At 30 April 2023
100
At 30 April 2022
100
Moore Kingston Smith Corporate Finance Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 17
10
Subsidiaries
Details of the company's subsidiary at 30 April 2023 is as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Devonshire Corporate Finance Limited
England and Wales
Dormant
Ordinary £1
100
Its registered office is 9 Appold Street, London, EC2A 2AP.
The aggregate capital and reserves and the result for the year of the subsidiary noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
£
£
Devonshire Corporate Finance Limited
(66)
4,857
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
241,649
111,708
Unbilled debtors
1,016,788
144,193
Prepayments and accrued income
2,167
2,083
1,260,604
257,984
12
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts due to parent undertaking
193,322
195,755
Corporation tax
608,634
286,928
Other taxation and social security
21,300
62,406
Accruals and deferred income
42,016
4,950
865,272
550,039
13
Share capital
2023
2022
£
£
Ordinary share capital
Allotted and fully paid
50,000 Ordinary of £1 each
50,000
50,000
Moore Kingston Smith Corporate Finance Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 18
14
Ultimate parent undertaking and related parties
As at 30 April 2023 in the directors' opinion, the company's ultimate parent undertaking and controlling party was Moore Kingston Smith LLP.
At 30 April 2023 the company was a wholly owned subsidiary of Moore Kingston Smith LLP and is included in their consolidated financial statements which are publicly available from the LLP's registered office. Consequently, the company is exempt under the terms of FRS 102 from disclosing related party transactions with entities that are part of the Moore Kingston Smith LLP group.
Subsequent to the year end, following investment from Waterland BV, Manneken UK Holdco Limited, became the ultimate parent undertaking and controlling party on 30 June 2023.
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