Company Registration No. 07694501 (England and Wales)
Moore Kingston Smith Financial Advisers Limited
Annual Report and Financial Statements
For the year ended 30 April 2023
Moore Kingston Smith Financial Advisers Limited
Company Information
Directors
G.A.Tyler
D.A.Painter
T.F.J.Stovold
J.W. Staniforth
D. Mitchell
D.J.Taplin ( non executive)
C.L.Roberts
I.R.G. Thomas
Secretary
I. Rixon
Company number
07694501
Registered office
9 Appold Street
London
EC2A 2AP
Auditor
Price Bailey LLP
Tennyson House
Cambridge Business Park
Cambridge
CB4 0WZ
Moore Kingston Smith Financial Advisers Limited
Contents
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
Moore Kingston Smith Financial Advisers Limited
Directors' Report
For the year ended 30 April 2023
Page 1
The directors present their annual report and financial statements for the year ended 30 April 2023.
Principal activities
The principal activity of the company throughout the year was the provision of financial services.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
G.A.Tyler
D.A.Painter
T.F.J.Stovold
J.W. Staniforth
D. Mitchell
D.J.Taplin ( non executive)
C.L.Roberts
I.R.G. Thomas
(Appointed 1 April 2023)
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its 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:
s each Director is aware, there is no relevant audit information of which the company’s auditor is unaware, and
tDirector has taken taken all the steps that he/she ought to have taken as a director in order to make himself/herself aware of any relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
T.F.J.Stovold
Director
11 September 2023
Moore Kingston Smith Financial Advisers Limited
Directors' Responsibilities Statement
For the year ended 30 April 2023
Page 2
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 Financial Advisers Limited
Independent Auditor's Report
to the Members of Moore Kingston Smith Financial Advisers Limited
Page 3
Opinion
We have audited the financial statements of Moore Kingston Smith Financial Advisers Limited (the 'company') for the year ended 30 April 2023 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 30 April 2023 and of its loss 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 Financial Advisers Limited
Independent Auditor's Report (Continued)
to the Members of Moore Kingston Smith Financial Advisers Limited
Page 4
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the directors' report has 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 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; or
the directors were not entitled to take advantage of the small companies’ exemptions in preparing the director’s report and from the requirement to prepare a strategic report.
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 Financial Advisers Limited
Independent Auditor's Report (Continued)
to the Members of Moore Kingston Smith Financial Advisers Limited
Page 5
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 Financial Advisers Limited
Independent Auditor's Report (Continued)
to the Members of Moore Kingston Smith Financial Advisers Limited
Page 6
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.
Moore Kingston Smith Financial Advisers Limited
Independent Auditor's Report (Continued)
to the Members of Moore Kingston Smith Financial Advisers Limited
Page 7
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
11 September 2023
Chartered Accountants
Statutory Auditor
Tennyson House
Cambridge Business Park
Cambridge
CB4 0WZ
Moore Kingston Smith Financial Advisers Limited
Profit and loss account
For the year ended 30 April 2023
Page 8
2023
2022
Notes
£
£
Turnover
3
1,933,343
1,823,003
Cost of sales
(11,097)
(7,960)
Gross profit
1,922,246
1,815,043
Administrative expenses
(1,954,292)
(1,646,555)
Operating (loss)/profit
4
(32,046)
168,488
Interest payable and similar expenses
6
(8,564)
-
(Loss)/profit before taxation
(40,610)
168,488
Tax on (loss)/profit
8
(344)
(39,510)
(Loss)/profit for the financial year
(40,954)
128,978
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Moore Kingston Smith Financial Advisers Limited
Balance Sheet
For the year ended 30 April 2023
Page 9
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
9
3,312,530
153,000
Tangible assets
10
8,594
Investments
11
558,951
3,880,075
153,000
Current assets
Debtors
13
354,239
304,777
Cash at bank and in hand
186,670
282,057
540,909
586,834
Creditors: amounts falling due within one year
14
(1,458,000)
(300,190)
Net current (liabilities)/assets
(917,091)
286,644
Total assets less current liabilities
2,962,984
439,644
Creditors: amounts falling due after more than one year
15
(2,564,294)
Net assets
398,690
439,644
Capital and reserves
Called up share capital
17
120,000
120,000
Profit and loss reserves
278,690
319,644
Total equity
398,690
439,644
The financial statements were approved by the board of directors and authorised for issue on 11 September 2023 and are signed on its behalf by:
T.F.J.Stovold
Director
Company Registration No. 07694501
Moore Kingston Smith Financial Advisers Limited
Statement Of Changes in Equity
For the year ended 30 April 2023
Page 10
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 May 2021
120,000
190,666
310,666
Year ended 30 April 2022:
Profit and total comprehensive income for the year
-
128,978
128,978
Balance at 30 April 2022
120,000
319,644
439,644
Year ended 30 April 2023:
Loss and total comprehensive income for the year
-
(40,954)
(40,954)
Balance at 30 April 2023
120,000
278,690
398,690
Moore Kingston Smith Financial Advisers Limited
Notes to the Financial Statements
For the year ended 30 April 2023
Page 11
1
Accounting policies
Company information
Moore Kingston Smith Financial Advisers 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 pound.
The financial statements have been prepared under 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;
(ii) The requirements of Section 11 paragraphs 11.39 to 11.48(a) and Section 12 paragraphs 12.26 to 12.29A, regarding disclosures for financial liabilities and assets, as the equivalent disclosures required by FRS 102 are included in the consolidated financial statements of the group in which the entity is consolidated; and
(iii) 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
The turnover shown in the profit and loss account represents amounts invoiced and commission received during the period, exclusive of Value Added Tax. Fee income is recognised on the completion of the advice giving process and the raising of an invoice. Commissions are recognised when the client has formally signed and agreed to take up the investment advice and where the lnvestment House/lnsurance Company has confirmed that the investment has been processed.
Moore Kingston Smith Financial Advisers Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
Page 12
1.5
Intangible fixed assets - goodwill
lntangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. lntangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date.
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.
Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. lt is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.
1.6
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset as follows:
Goodwill
- 15 years straight line
lf there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
1.7
Tangible fixed assets and depreciation
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
- 20% straight line
Computers
- 33% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.8
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Moore Kingston Smith Financial Advisers Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
Page 13
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.9
Cash at bank and in hand
Cash and cash equivalents 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.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's 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.
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 payments 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.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.12
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 profit and loss account 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.
Moore Kingston Smith Financial Advisers Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
Page 14
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 profit and loss account, 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.
1.13
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
2
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The judgements, estimates and assumptions that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows:
(i) Useful economic life of fixed assets - the annual depreciation/amortisation charges are based upon management's assessment of the useful economic lives and residual values of the company's fixed assets. These are re-assessed annually and amended where necessery.
(ii) Net present value of long term liabilities - the value of deferred consideration payments due in more than one year have been discounted to net present value at a rate of 7.5%. This is the estimated cost of capital for the company.
3
Turnover
2023
2022
£
£
Rendering of services
1,933,343
1,823,003
The turnover and profit before tax are attributable to the one principal activity of the company, all of which arose in the United Kingdom.
Moore Kingston Smith Financial Advisers Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 15
4
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
4,800
4,500
Depreciation of owned tangible fixed assets
118
-
Loss on disposal of tangible fixed assets
19,818
-
Amortisation of goodwill
36,000
36,000
Directors' emoluments
302,222
302,881
Rent
125,977
60,500
The number of directors for whom retirement benefits are accruing under the defined contribution scheme amounted to 3 (2022 - 2). Pension contributions of £39,113 (2022: £14,434) were paid in the year and included in directors' emoluments above.
5
Employees
The average number of persons (including directors) employed by the company during the year was 19 (2022:16).
2023
2022
Number
Number
Administrative staff
16
13
Management staff
3
3
19
16
2023
2022
£
£
Wages and salaries
1,103,056
959,582
Social security costs
130,154
110,109
Pension costs
51,769
42,968
1,284,979
1,112,659
6
Interest payable and similar expenses
2023
2022
£
£
Other interest paid
8,564
Moore Kingston Smith Financial Advisers Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 16
7
Pension
During the year the company made pension payments of £51,769 to personal pension plans (2022: £42,968).
Pension payments outstanding at the year ended amounted to £22,749 (2022: £8,000).
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
5,765
39,320
Adjustments in respect of prior periods
190
Total current tax
5,765
39,510
Deferred tax
Origination and reversal of timing differences
(5,421)
Total tax charge
344
39,510
The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
(Loss)/profit before taxation
(40,610)
168,488
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.49% (2022: 19.00%)
(7,916)
32,013
Adjustments in respect of prior years
190
Effect of change in corporation tax rate
(1,535)
Effect of expenses not deductible for tax purposes
9,795
7,307
Taxation charge for the year
344
39,510
Moore Kingston Smith Financial Advisers Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 17
9
Intangible fixed assets
Goodwill
£
Cost
At 1 May 2022
540,000
Transfer from fixed asset investments (note 11)
3,195,530
At 30 April 2023
3,735,530
Amortisation and impairment
At 1 May 2022
387,000
Amortisation charged for the year
36,000
At 30 April 2023
423,000
Carrying amount
At 30 April 2023
3,312,530
At 30 April 2022
153,000
10
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 May 2022
Additions
27,439
1,091
28,530
Disposals
(19,818)
(19,818)
At 30 April 2023
7,621
1,091
8,712
Depreciation and impairment
At 1 May 2022
Depreciation charged in the year
95
23
118
At 30 April 2023
95
23
118
Carrying amount
At 30 April 2023
7,526
1,068
8,594
At 30 April 2022
11
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
12
558,951
Moore Kingston Smith Financial Advisers Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
11
Fixed asset investments
(Continued)
Page 18
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 May 2022
-
Additions
3,754,481
Transfer to goodwill (note 9)
(3,195,530)
At 30 April 2023
558,951
Carrying amount
At 30 April 2023
558,951
At 30 April 2022
-
The company's subsidiary investment is set out in note 12.
On 1 April 2023 the trade, assets and liabilities of Pilot Financial Holdings Limited and its subsidiaries were transferred to this company. An element of the investment in Pilot Financial Holdings Limited and its subsidiaries represents the trade, assets and liabilities of the businesses and has been transferred to goodwill following the hive up. The remaining value of the investment represents the value of the reserves in Pilot Financial Holdings Limited and its subsidiaries.
12
Subsidiaries
Details of the company's subsidiaries at 30 April 2023 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Pilot Financial Holdings Limited
United Kingdom
Ordinary
100
The registered office address of Pilot Financial Holdings Limited is 6th Floor, 9 Appold Street, London, EC2A 2AP.
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
306,316
301,267
Other debtors
8,894
Prepayments and accrued income
39,029
3,510
354,239
304,777
Moore Kingston Smith Financial Advisers Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 19
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
16
214,286
Trade creditors
10,475
830
Amounts owed to group undertakings
473,331
54,736
Corporation tax
116,010
39,320
Other taxation and social security
190,619
48,180
Other creditors
279,070
Accruals and deferred income
174,209
157,124
1,458,000
300,190
15
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
16
1,258,246
Other creditors
1,306,048
2,564,294
Other creditors comprises deferred and earnout consideration due to the previous shareholders of Pilot Financial Holdings Limited, following the acquisition of all the issued shares by Moore Kingston Smith Financial Advisers Limited on 30 March 2023. £300,000 (discounted to present value of £259,599) is payable on 31 March 2025, £300,000 (discounted to present value of £241,488) is payable on 31 March 2026 and the remaining amount of £1,000,000 (discounted to present value of £804,961) is due on 30 June 2026. The deferred consideration is secured by a fixed and floating charge over the assets of Moore Kingston Smith Financial Advisers Limited.
16
Loans and overdrafts
2023
2022
£
£
Other loans
1,472,532
Payable within one year
214,286
Payable after one year
1,258,246
The other loan is secured by a fixed and floating charge over the assets of the company.
Moore Kingston Smith Financial Advisers Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 20
17
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
60,000 Ordinary 'A' shares of £1 each
60,000
60,000
60,000 Ordinary 'B' shares of £1 each
60,000
60,000
120,000
120,000
18
Related party transactions
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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