Company registration number 06445696 (England and Wales)
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
COMPANY INFORMATION
Directors
G M S Waldron
D Corless-Smith
C P Dean
H J Coleman
H M Owen
Secretary
D Corless-Smith
Company number
06445696
Registered office
Alvaston House
Alvaston Business Park
Middlewich Road
Nantwich
Cheshire
CW5 6PF
Auditor
Afford Bond Holdings Limited
31 Wellington Road
Nantwich
Cheshire
CW5 7ED
Business address
Alvaston House
Alvaston Business Park
Middlewich Road
Nantwich
Cheshire
CW5 6PF
Solicitors
Bowcock Cuerden LLP
South Cheshire House
Manor Road
Nantwich
Cheshire
CW5 5LX
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
CONTENTS
Page
Strategic report
1 - 2
Directors' report
4
Directors' responsibilities statement
3
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
Statement of cash flows
16
Notes to the financial statements
11 - 22
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The Directors present the strategic report for the Dental Law Partnership Solicitors Limited for the financial year ending 31 March 2023, in accordance with the requirements of the Companies Act 2006. This report provides an overview of the company's activities, performance, and prospects.

 

 

Business overview

Dental Law Partnership Solicitors Limited ("the Company") is a specialised company of solicitors that provides expert legal advice and representation for claimants in dental negligence claims. Our firm has established a strong reputation as the leading provider of claimant legal services in the dental negligence sector, with a commitment to delivering high-quality, client-focused legal solutions.

 

Financial performance

As we look ahead to the coming financial year and beyond, we remain optimistic about the future prospects of the Company, but we recognise specific principal risks and uncertainties:

 

Covid-19 pandemic: The impacts of the pandemic have now eased substantially, however there are ongoing court delays which are holding up cashflow. The Company responded well to the pandemic, not least because we had always embraced a fully hybrid working model which allows our people the flexibility to succeed.

 

Cyber security: We are a high-risk target for a cyber-attack due to the special category and other data we hold confidentially on behalf of our clients, and as such continue to invest in IT infrastructure to protect our clients' data. Regular and rigorous external testing allows us to remedy any potential weakness and we ensure that cyber security is at the forefront of our regular training programmes for all employees.

 

Legislation: The recently announced introduction in England and Wales of a Fixed Recoverable Costs regime for low value clinical negligence claims by April 2024 presents us with both significant challenges, and opportunities in the medium term. Not all of the changes which are to be introduced in April 2024 are currently known but recoverable costs figures are now available. We expect there to be some negative impact on the Company’s financial performance in 2024-25 through to 2026-2027 as we manage the transition, but we are confident of emerging from this period in a sound financial position and retain the financial reserves to ensure the same.

 

Macroeconomic environment: There is continuing significant wage inflation across the legal sector, however, the Company continues to carefully monitor cost of living and is well positioned to adjust our employee benefits as appropriate.

 

The success of the Company is underpinned by our dedication to delivering exceptional legal services and the development of strategic initiatives:

 

Client Satisfaction: We continue to prioritise client satisfaction and have feedback mechanisms to ensure that our clients receive the highest level of service. We are proud to maintain a high level of client retention and referrals, demonstrating our clients' trust in our services.

 

THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Operational highlights

Talent Development: Our team of legal professionals, dentists and support staff is at the heart of our success. We remain committed to attracting, retaining, and developing top talent in the legal field, ensuring that our clients benefit from the expertise of our dedicated team.

 

Specialist Litigation expertise: This year, building on our earlier Court of Appeal successes which established that dental practices could be held liable for the harm caused by individual dentists, we have increasingly used this approach to ensure access to justice for our clients. In circumstances when individual dentists are uninsured, un-traceable or when their indemnifiers exercise their discretion not to assist, our legal team’s specialist expertise has proved invaluable in achieving settlements for our clients and driving revenue.

 

Technological Advancements: We have continued to invest in cutting-edge legal technology, streamlining our processes and enhancing the efficiency of our operations. This investment has allowed us to handle a larger caseload while maintaining our commitment to quality.

 

Sustainability: We recognize our responsibility to operate in an environmentally and socially responsible manner. In the past year, we have implemented sustainable practices, such as reducing paper usage, recycling, and promoting responsible consumption across our organization. This coming year we will be installing EV charge points at our 2 sites to encourage our staff to transition to lower carbon modes of transport.

 

Key performance indicators

Financial Performance

The financial performance of the Company for the year ending March 31, 2023, reflects our continued growth and stability. The key financial highlights are as follows:

 

Revenue: The Company achieved total revenue of £8.2 million during the year, representing an increase of 45% compared to the previous financial year. This growth is attributed to an expansion of our client base and increased case settlement volumes.

 

Profit Before Tax: Our profit before tax for the year amounted to £3.9 million, which is an improvement of 95% over the previous year. This increase is a result of operational efficiencies and effective cost management.

 

Net Assets: The Company's net assets at the end of the financial year were £3.8 million, demonstrating our strong financial position and ability to invest in future growth.

Development and performance

The financial year ending March 31, 2023, has been a period of growth, success, and continued commitment to excellence for the Company. We would like to extend our gratitude to our clients and employees for their ongoing support and trust. We remain steadfast in our mission to provide the highest quality legal services for claimants in dental negligence claims, and we are excited about the opportunities and challenges that lie ahead. With a strong financial position and a dedicated team, we are well-positioned to achieve our strategic objectives in the coming year.

 

On behalf of the board

D Corless-Smith
Director
25 October 2023
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

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:

 

 

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.

THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities
The principal activity of the company continued to be that of solicitors specialising in dental negligence claims.
Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £1,563,349. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

G M S Waldron
D Corless-Smith
C P Dean
H J Coleman
H M Owen
Auditor

Afford Bond Holdings 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 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.

On behalf of the board
D Corless-Smith
Director
25 October 2023
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
- 5 -
Opinion

We have audited the financial statements of The Dental Law Partnership Solicitors Limited (the 'company') for the year ended 31 March 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.

Other information

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 DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
- 6 -
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:

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.

The auditor’s assessment of the susceptibility of the entity’s financial statements to material misstatement, including how fraud might occur.

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 auditor’s explanation of its audit response will depend on the risks identified but may include:

- Enquiry of management, those charged with governance and the entity’s solicitors (or in-house legal team) around actual and potential litigation and claims.

- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations.

- Reviewing minutes of meetings of those charged with governance.

- Reviewing internal audit reports.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.

 

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.

THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
- 7 -

Other matters which we are required to address

The prior period financial statements were unaudited.

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.

Peter O'Malley ACA FCCA CTA
Senior Statutory Auditor
For and on behalf of Afford Bond Holdings Limited
30 October 2023
Chartered Accountants
Statutory Auditor
31 Wellington Road
Nantwich
Cheshire
CW5 7ED
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
8,208,977
5,660,199
Administrative expenses
(4,319,230)
(3,669,478)
Other operating income
-
0
4,667
Operating profit
4
3,889,747
1,995,388
Interest receivable and similar income
7
14,975
226
Profit before taxation
3,904,722
1,995,614
Tax on profit
8
(726,870)
(379,172)
Profit for the financial year
3,177,852
1,616,442

The profit and loss account has been prepared on the basis that all operations are continuing operations.

THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
Profit for the year
3,177,852
1,616,442
Other comprehensive income
-
-
Total comprehensive income for the year
3,177,852
1,616,442
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
98,374
43,465
Current assets
Debtors
13
2,739,728
2,769,554
Cash at bank and in hand
3,840,489
2,379,558
6,580,217
5,149,112
Creditors: amounts falling due within one year
14
(2,755,662)
(2,884,151)
Net current assets
3,824,555
2,264,961
Total assets less current liabilities
3,922,929
2,308,426
Client balances
Cash at bank
(223,012)
(71,790)
Amounts due to clients
223,012
-
71,790
-
Capital and reserves
Called up share capital
16
1,000
1,000
Profit and loss reserves
3,921,929
2,307,426
Total equity
3,922,929
2,308,426
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:
D Corless-Smith
Director
Company Registration No. 06445696
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
1
Accounting policies
Company information

The Dental Law Partnership Solicitors Limited is a private company limited by shares incorporated in England and Wales. The registered office is Alvaston House, Alvaston Business Park, Middlewich Road, Nantwich, Cheshire, CW5 6PF.

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. The principal accounting policies adopted are set out below.

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 goods and 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.

 

 

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.4
Intangible fixed assets - goodwill
Acquired goodwill is written off in equal annual installments over its estimated useful economic life of 10 years.
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.

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, fittings & equipment
25% per annum reducing balance
Computer equipment
25% per annum 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.

THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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
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.

1.8
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.

THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
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.

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.

 

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.

THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
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 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.

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.

1.11
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.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
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.

THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
3,548,099
1,489,715
Income taxes paid
(459,177)
(460,492)
Net cash inflow from operating activities
3,088,922
1,029,223
Investing activities
Purchase of tangible fixed assets
(79,617)
(9,024)
Interest received
14,975
226
Net cash used in investing activities
(64,642)
(8,798)
Financing activities
Dividends paid
(1,563,349)
(1,157,942)
Net cash used in financing activities
(1,563,349)
(1,157,942)
Net increase/(decrease) in cash and cash equivalents
1,460,931
(137,517)
Cash and cash equivalents at beginning of year
2,379,558
2,517,075
Cash and cash equivalents at end of year
3,840,489
2,379,558
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
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

An analysis of the company's turnover is as follows:

2023
2022
£
£
Other revenue
Interest income
14,975
226
Grants received
-
4,667
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(4,667)
Fees payable to the company's auditor for the audit of the company's financial statements
6,000
-
0
Depreciation of owned tangible fixed assets
24,708
11,987
Operating lease charges
118,779
113,511
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Management and administration
70
72

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
2,713,680
2,441,965
Social security costs
290,628
222,887
Pension costs
53,117
47,619
3,057,425
2,712,471
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
285,634
247,337
Company pension contributions to defined contribution schemes
5,284
5,267
290,918
252,604
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
135,456
116,875
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
11,769
184
Other interest income
3,206
42
Total income
14,975
226
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
11,769
184
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
726,870
379,172
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Taxation
(Continued)
- 19 -

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
3,904,722
1,995,614
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
741,897
379,167
Permanent capital allowances in excess of depreciation
(15,027)
5
Taxation charge for the year
726,870
379,172
9
Dividends
2023
2022
£
£
Interim paid
1,563,349
1,157,942
10
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
2,000,000
Amortisation and impairment
At 1 April 2022 and 31 March 2023
2,000,000
Carrying amount
At 31 March 2023
-
0
At 31 March 2022
-
0
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
11
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 April 2022
42,457
134,204
176,661
Additions
2,519
77,098
79,617
At 31 March 2023
44,976
211,302
256,278
Depreciation and impairment
At 1 April 2022
28,783
104,413
133,196
Depreciation charged in the year
3,519
21,189
24,708
At 31 March 2023
32,302
125,602
157,904
Carrying amount
At 31 March 2023
12,674
85,700
98,374
At 31 March 2022
13,674
29,791
43,465
12
Financial instruments
Carrying amount of financial assets
Debt instruments measured at amortised cost
2,641,843
2,675,645
Carrying amount of financial liabilities
Measured at amortised cost
1,842,111
2,358,841
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,637,885
2,671,925
Other debtors
3,958
3,720
Prepayments and accrued income
97,885
93,909
2,739,728
2,769,554
THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
868,596
1,362,004
Corporation tax
481,865
214,172
Other taxation and social security
431,686
311,138
Other creditors
605,308
640,255
Accruals and deferred income
368,207
356,582
2,755,662
2,884,151
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
53,117
47,619

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.

16
Share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
1000 Ordinary shares of £1 each
1,000
1,000
17
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
2022
£
£
Within one year
138,746
121,440
18
Related party transactions

The directors G M S Waldron, D Corless-Smith and C P Dean are in partnership together as The Dental Law Partnership, which owns the buildings occupied by the company.

At the 31 March 2023 the balance due to The Dental Law Partnership was £37,171 (2022:£37,171). Rent payable in the year ended 31 March 2023 was £118,779 (2022 : £ 112,872).

THE DENTAL LAW PARTNERSHIP SOLICITORS LIMITED
T/A THE DENTAL LAW PARTNERSHIP
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
18
Related party transactions
(Continued)
- 22 -

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
3,958
3,719
Expenses paid for related parties amounted to £239 (2022:£767).
19
Directors' transactions

Dividends totalling £1,563,349 (2022 - £1,157,942) were paid in the year in respect of shares held by the company's directors.

 

 

 

 

 

 

 

 

 

 

 

 

 

20
Analysis of changes in net funds
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
2,379,558
1,460,931
3,840,489
21
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
3,177,852
1,616,442
Adjustments for:
Taxation charged
726,870
379,172
Investment income
(14,975)
(226)
Depreciation and impairment of tangible fixed assets
24,708
11,987
Movements in working capital:
Decrease/(increase) in debtors
29,826
(456,077)
Decrease in creditors
(396,182)
(61,583)
Cash generated from operations
3,548,099
1,489,715
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