Company registration number 13872283 (England and Wales)
DRISCOLL KINGSTON & CO LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
DRISCOLL KINGSTON & CO LTD
COMPANY INFORMATION
Directors
J R Driscoll
K L Kingston
Company number
13872283
Registered office
6th Floor
88 Church Street
Liverpool
Merseyside
L1 3HD
Auditor
Mitchell Charlesworth (Audit) Limited
3rd Floor
5 Temple Square
Temple Street
Liverpool
Merseyside
L2 5RH
DRISCOLL KINGSTON & CO LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
DRISCOLL KINGSTON & CO LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 JUNE 2023
- 1 -
The directors present the strategic report for the period ended 30 June 2023.
Incorporation
The company was incorporated on 26 January 2022 and commenced trading on 1 July 2022.
Principal activities
The principal activity of the company was that of a solicitors.
Review of the business
On 1 July 2022 the trade and assets were transferred from the Driscoll Kingston partnership into the Limited company. The business has continued to trade well and has seen no adverse effects following the transition. Over the next 12 months no legislation changes are foreseen and therefore the business is expected to continue in a similar fashion.
Principal risks and uncertainties
Legislation changes and funding stability is considered one of the most critical areas of the business. Legislation can have a material impact on the business if this was to change for any reason, along with rapid and significant funding cost increases. In the main the business mitigates the risk of legislation change by ensuring to keep up to date with the changing market place and ensuring it is aware of any potential changes as soon as they arise. Also any short-term price fluctuations are mitigated by forward planning, longer term supply agreements and ensuring a good supply of case levels.
Future outlook
The business has performed well over the first 12 months of trade and following the year end all indications up to the date of sign off are that the current year will be another good year.
Key performance indicators
The directors consider that the key financial performance indicators of the company are those that communicate the financial performance and strength of the company as a whole, these primarily being turnover and profit margins. As can be seen from the financial statements the directors' believe that the business is performing well and are happy with the current and ongoing KPI results.
J R Driscoll
Director
25 October 2023
DRISCOLL KINGSTON & CO LTD
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 JUNE 2023
- 2 -
The directors present their annual report and financial statements for the period ended 30 June 2023.
Results and dividends
The results for the period are set out on page 7.
Ordinary dividends were paid amounting to £4,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
J R Driscoll
K L Kingston
E Cullen
(Resigned 30 September 2022)
Auditor
Mitchell Charlesworth (Audit) Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
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;
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.
Strategic report
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 the company's Strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 is noted in the Strategic report on page 1.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
DRISCOLL KINGSTON & CO LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 3 -
On behalf of the board
J R Driscoll
Director
25 October 2023
DRISCOLL KINGSTON & CO LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DRISCOLL KINGSTON & CO LTD
- 4 -
Opinion
We have audited the financial statements of Driscoll Kingston & Co Ltd (the 'company') for the period ended 30 June 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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 June 2023 and of its profit for the period 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.
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 period 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.
DRISCOLL KINGSTON & CO LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DRISCOLL KINGSTON & CO LTD
- 5 -
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 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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
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
DRISCOLL KINGSTON & CO LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DRISCOLL KINGSTON & CO LTD
- 6 -
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:
(i) The presentation of the Profit and Loss Account, (ii) the accounting policy for revenue recognition (iii) amounts recoverable on work in progress, (iv) understatement of creditors. 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 also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.
Our procedures to respond to risks identified included the following:
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 making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Michael Buxton
Senior Statutory Auditor
For and on behalf of Mitchell Charlesworth (Audit) Limited
25 October 2023
2023-10-25
Accountants
Statutory Auditor
3rd Floor
5 Temple Square
Temple Street
Liverpool
Merseyside
L2 5RH
DRISCOLL KINGSTON & CO LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2023
- 7 -
Period
ended
30 June
2023
Notes
£
Turnover
3
10,297,918
Cost of sales
(2,874,638)
Gross profit
7,423,280
Administrative expenses
(2,127,750)
Operating profit
4
5,295,530
Interest receivable and similar income
7
378
Interest payable and similar expenses
8
(2,873,612)
Profit before taxation
2,422,296
Tax on profit
9
(513,308)
Profit for the financial period
1,908,988
The profit and loss account has been prepared on the basis that all operations are continuing operations.
DRISCOLL KINGSTON & CO LTD
BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 8 -
2023
Notes
£
£
Fixed assets
Tangible assets
11
42,324
Current assets
Stocks
13
9,802,815
Debtors
14
7,851,391
Cash at bank and in hand
33,469
17,687,675
Creditors: amounts falling due within one year
15
(15,112,040)
Net current assets
2,575,635
Total assets less current liabilities
2,617,959
Creditors: amounts falling due after more than one year
16
(702,371)
Provisions for liabilities
Deferred tax liability
18
10,500
(10,500)
Net assets
1,905,088
Capital and reserves
Called up share capital
20
100
Profit and loss reserves
1,904,988
Total equity
1,905,088
The financial statements were approved by the board of directors and authorised for issue on 25 October 2023 and are signed on its behalf by:
J R Driscoll
Director
Company Registration No. 13872283
DRISCOLL KINGSTON & CO LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
-
Period ended 30 June 2023:
Profit and total comprehensive income for the period
-
1,908,988
1,908,988
Issue of share capital
20
100
-
100
Dividends
10
-
(4,000)
(4,000)
Balance at 30 June 2023
100
1,904,988
1,905,088
DRISCOLL KINGSTON & CO LTD
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2023
- 10 -
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
23
2,067,913
Interest paid
(2,873,612)
Net cash outflow from operating activities
(805,699)
Investing activities
Purchase of business
(31,487)
Purchase of tangible fixed assets
(3,150)
Interest received
378
Net cash used in investing activities
(34,259)
Financing activities
Repayment of borrowings
(464,645)
Repayment of bank loans
1,245,391
Net cash generated from/(used in) financing activities
780,746
Net (decrease)/increase in cash and cash equivalents
(59,212)
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
(59,212)
Relating to:
Cash at bank and in hand
33,469
Bank overdrafts included in creditors payable within one year
(92,681)
DRISCOLL KINGSTON & CO LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2023
- 11 -
1
Accounting policies
Company information
Driscoll Kingston & Co Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, 88 Church Street, Liverpool, Merseyside, L1 3HD.
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 under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
These financial statements for the period ended 30 June 2023 are the first financial statements of Driscoll Kingston & Co Ltd prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was . The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.
1.2
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.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
1.4
Fee income
Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.
Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.
Fee income that is contingent on events outside the control of the firm is recognised when the contingent event occurs.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
DRISCOLL KINGSTON & CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 12 -
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
25% reducing balance
Computers
25% reducing balance
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.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Stocks
Work in progress is valued at the lower of cost and net realisable value. Cost consists of staff salary costs together with an appropriate proportion of overheads. Net realisable value is based on estimated selling price less further costs expected to be incurred to completion.
1.8
Cash and cash equivalents
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.
DRISCOLL KINGSTON & CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 13 -
1.9
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
DRISCOLL KINGSTON & CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors, 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
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.
DRISCOLL KINGSTON & CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 15 -
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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
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.
3
Turnover and other revenue
2023
£
Turnover analysed by class of business
Fee income
10,297,918
DRISCOLL KINGSTON & CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
3
Turnover and other revenue
(Continued)
- 16 -
2023
£
Turnover analysed by geographical market
United Kingdom
10,297,918
2023
£
Other revenue
Interest income
378
4
Operating profit
2023
Operating profit for the period is stated after charging:
£
Fees payable to the company's auditor for the audit of the company's financial statements
10,750
Depreciation of owned tangible fixed assets
21,420
Operating lease charges
10,320
5
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2023
Number
73
Their aggregate remuneration comprised:
2023
£
Wages and salaries
2,361,798
Social security costs
231,873
Pension costs
37,775
2,631,446
DRISCOLL KINGSTON & CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 17 -
6
Directors' remuneration
2023
£
Remuneration for qualifying services
6,285
7
Interest receivable and similar income
2023
£
Interest income
Interest on bank deposits
378
2023
Investment income includes the following:
£
Interest on financial assets not measured at fair value through profit or loss
378
8
Interest payable and similar expenses
2023
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
135,266
Other finance costs:
Other interest
2,738,346
2,873,612
9
Taxation
2023
£
Current tax
UK corporation tax on profits for the current period
502,808
Deferred tax
Origination and reversal of timing differences
10,500
Total tax charge
513,308
DRISCOLL KINGSTON & CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
9
Taxation
(Continued)
- 18 -
The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:
2023
£
Profit before taxation
2,422,296
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
605,574
Tax effect of expenses that are not deductible in determining taxable profit
(13,357)
Tax at marginal rate
(109,000)
Other
30,091
Taxation charge for the period
513,308
10
Dividends
2023
£
Interim paid
4,000
11
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 July 2022
Additions
3,150
3,150
Acquired 1 July 2022
59,129
48,224
107,353
At 30 June 2023
59,129
51,374
110,503
Depreciation and impairment
At 1 July 2022
Depreciation charged in the period
11,762
9,658
21,420
Acquired 1 July 2022
23,636
23,123
46,759
At 30 June 2023
35,398
32,781
68,179
Carrying amount
At 30 June 2023
23,731
18,593
42,324
DRISCOLL KINGSTON & CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 19 -
12
Financial instruments
2023
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
17,611,482
Carrying amount of financial liabilities
Measured at fair value through profit or loss
- Other financial liabilities
(14,939,360)
13
Stocks
2023
£
Work in progress
9,802,815
14
Debtors
2023
Amounts falling due within one year:
£
Trade debtors
3,952,299
Other debtors
8,896
Prepayments and accrued income
3,890,196
7,851,391
15
Creditors: amounts falling due within one year
2023
Notes
£
Bank loans and overdrafts
17
635,701
Other borrowings
17
13,213,201
Trade creditors
90,908
Corporation tax
502,808
Other taxation and social security
139,818
Other creditors
202,370
Accruals and deferred income
327,234
15,112,040
DRISCOLL KINGSTON & CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 20 -
16
Creditors: amounts falling due after more than one year
2023
Notes
£
Bank loans and overdrafts
17
702,371
17
Loans and overdrafts
2023
£
Bank loans
1,245,391
Bank overdrafts
92,681
Other loans
13,213,201
14,551,273
Payable within one year
13,848,902
Payable after one year
702,371
The long-term loans are secured by way of fixed and floating charge in favour of Admiral, Braemar, Clydesdale Bank PLC, Conister Finance, Investec, Kingley, Shire, Sieamans and White Oak, over the company and all its assets.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
Balances:
£
£
Accelerated capital allowances
10,500
-
2023
Movements in the period:
£
Liability at 1 July 2022
-
Charge to profit or loss
10,500
Liability at 30 June 2023
10,500
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
DRISCOLL KINGSTON & CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 21 -
19
Retirement benefit schemes
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
37,775
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary shares of £1 each
100
100
21
Acquisition
On 1 July 2022 the company acquired the business of Driscoll Kingston Solicitors Partnership.
Fair Value
£
Property, plant and equipment
60,594
Inventories
6,735,010
Trade and other receivables
7,904,523
Cash and cash equivalents
(31,487)
Borrowings
(13,677,846)
Trade and other payables
(990,694)
Total identifiable net assets
100
Goodwill
-
Total consideration
100
Satisfied by:
£
Issue of shares
100
DRISCOLL KINGSTON & CO LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2023
- 22 -
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
£
Within one year
81,498
Between two and five years
114,404
195,902
23
Cash generated from/(absorbed by) operations
2023
£
Profit for the period after tax
1,908,988
Adjustments for:
Taxation charged
513,308
Finance costs
2,873,612
Investment income
(378)
Depreciation and impairment of tangible fixed assets
21,420
Movements in working capital:
Increase in stocks
(3,067,805)
Decrease in debtors
53,132
Decrease in creditors
(234,364)
Cash generated from/(absorbed by) operations
2,067,913
24
Analysis of changes in net debt
1 July 2022
Cash flows
Acquisitions and disposals
30 June 2023
£
£
£
£
Cash at bank and in hand
-
64,956
(31,487)
33,469
Bank overdrafts
-
(92,681)
-
(92,681)
-
(27,725)
(31,487)
(59,212)
Borrowings excluding overdrafts
-
(780,745)
(13,677,847)
(14,458,592)
-
(808,470)
(13,709,334)
(14,517,804)
2023-06-302022-07-01falseCCH SoftwareCCH Accounts Production 2023.200J R DriscollK L KingstonE Cullen1,908,988138722832022-07-012023-06-3013872283bus:Director12022-07-012023-06-3013872283bus:Director22022-07-012023-06-3013872283bus:Director32022-07-012023-06-3013872283bus:RegisteredOffice2022-07-012023-06-30138722832023-06-3013872283core:RetainedEarningsAccumulatedLosses2022-07-012023-06-3013872283core:FurnitureFittings2023-06-3013872283core:ComputerEquipment2023-06-3013872283core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3013872283core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-3013872283core:CurrentFinancialInstruments2023-06-3013872283core:ShareCapital2023-06-3013872283core:RetainedEarningsAccumulatedLosses2023-06-3013872283core:ShareCapital2022-06-3013872283core:RetainedEarningsAccumulatedLosses2022-06-3013872283core:ShareCapital2022-07-012023-06-301387228312022-07-012023-06-30138722832022-06-3013872283core:WithinOneYear2023-06-3013872283core:FurnitureFittings2022-07-012023-06-3013872283core:ComputerEquipment2022-07-012023-06-3013872283core:UKTax2022-07-012023-06-301387228322022-07-012023-06-3013872283core:FurnitureFittings2022-06-3013872283core:ComputerEquipment2022-06-3013872283core:Non-currentFinancialInstruments2023-06-3013872283core:BetweenTwoFiveYears2023-06-3013872283bus:PrivateLimitedCompanyLtd2022-07-012023-06-3013872283bus:FRS1022022-07-012023-06-3013872283bus:Audited2022-07-012023-06-3013872283bus:FullAccounts2022-07-012023-06-30xbrli:purexbrli:sharesiso4217:GBP