Registered number:
FOR THE YEAR ENDED 31 MAY 2023
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
COMPANY INFORMATION
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
CONTENTS
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
Principal activities
The principal activities of Loyal North Plc ("the Company") continued to be that of a holding company and the provision of centralised support services to its operating subsidiaries of Independent Financial Advisers (IFAs), which together with the Company form the 'Loyal North Group'.
The long-term strategy of the Company remains focused on growing the business through both organic growth and acquisitions of local IFA practices to build a nationally recognised brand, with strategic locations serving the financial advice market in the United Kingdom.
The acquired IFA businesses in the Loyal North Group benefit from centralised operational, investment, finance and compliance resources, as well as access to Loyal North Group’s propriety digital hybrid advice solution JustFA platform via JustFA Technology Limited (“JustFA”), a subsidiary of the Company. JustFA platform services is also being made available for use by other financial planning firms outside the Loyal North Group. During the year ended 31 May 2023, the Company acquired the assets of financial advice firm Paul Wallis Financial Solutions in April 2023, bolstering the Company’s existing presence in the Southeast England and brought a further £40m of client funds to the Loyal North Group. The acquired business joined Loyal North’s regional firm H&D Financial Planning Limited, based in Maidstone, Kent. The Loyal North Group also embarked on the restructuring of its fully owned IFA business operations covering Kent geographical area focusing on efficiencies through the combination of H&D Wealth, Hellier Independent Financial Services and Carter Financial Planning into a single umbrella IFA firm – H&D Financial Planning Limited. During the year, the Company continued to invest in its management team through the recruitment of a Group Compliance Director. The Company’s management team together with the management teams of each Loyal North IFA businesses worked closely on the IFA’s FCA consumer duty implementation to ensure that each of the four principles of consumer duty brings the best outcome possible for the Loyal North IFA customers. Following a successful JustFA new shares placement with external stakeholders in December 2021, further external placement of its JustFA new shares were achieved in September 2022 and in April 2023 to finance its operations and future development. The Company reported a profit for the year, after taxation, amounted to £1,985,134 (2022 - £3,122,206).
Page 1
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
The management team reviews and considers the following financial and non-financial measures as performance indicators of the Company and the Loyal North Group on a monthly and quarterly basis:
Financial measures:
∙EBITDA performance and its growth on prior period;
∙Cash flows management;
∙Debt Service Cover Ratio;
∙Leverage Ratio; and
∙Revenue performance.
Non-financial measures
∙Asset under management (“AUM”) growth both organic and acquisition;
∙Reviews of existing clients; and
∙Number of new clients.
These are reviewed and compared with targets to gain understanding of the Company’s overall performance.
The main risks identified by the Company are that of:
1.Concentration risk, which is defined as the potential for financial loss due to overexposure to a single counterparty or geographic region is being mitigated by diversifying into various IFA firms and clients base across the UK;
2.Operational risk, which is defined as the potential for business operations disruption arising from systems failures, inadequate processes, people and external events is being mitigated by developing and implementing robust policies and procedures, management team oversight, and the promotion of stability, engagement and diversity in the workforce;
3.Financial risk, which is defined as the potential for the Company and its Loyal North Group having insufficient financial resources or suffering loss from adverse market conditions or the failure/default of counterparties. The Company has a secured term loan facility with a bank and is bound by certain covenant compliance thresholds, which is being mitigated through prudent management of its Loyal North Group cost base, revenue growth and cash flows; and
4.Regulatory risk as the Loyal North Group operates in a fast-moving regulatory environment and is mitigated by robust compliance process being in place. These are supported and overseen by the Group Compliance Director (“GCD”) who promotes a client centric and compliance-focused culture.
The Board of Directors is responsible for establishing, implementing and maintaining adequate and proportionate policies and procedures sufficient to ensure that the Company complies with its obligations in maintaining the Company’s operations. Procedures are enforced and developed on an ongoing basis in order to effectively mitigate various risks that may arise during the course of business.
Page 2
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
This report was approved by the board and signed on its behalf.
Page 3
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023
The directors present their annual report on the affairs of the Company, together with the financial statements for the year ended 31 May 2023.
The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 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 profit for the year, after taxation, amounted to £1,985,134 (2022 - £3,122,206).
No dividends have been declared during the year or the prior year.
The directors who served during the year and up to the date of signing of these financial statements were:
The Company's objective is to acquire financial advice firms (IFA) with different operating systems and client proposition. The Company is also looking to strengthen its ranks via organic growth.
The Company has the commitment with a leading bank for uncommitted accordion loan up to £5,000,000 for the purpose of acquiring IFA companies in the next few years.
Page 4
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
On 29 June 2023, the Company’s subsidiary, Bidco GPFM Limited, acquired 100% of the shares is Quay Financial Planning Limited.
On 11 October 2023, the Company purchased 249 shares in Bidco ML Limited, increasing its stake in the company from 75.1% to 100%. On 1 November 2023, the Company’s subsidiary, Lowland Financial Services Limited, acquired the business and assets of Sovereign Financial Services (Scottish Borders) Limited. On 2 November 2023, the Company’s subsidiary, Bidco ML Limited, acquired the business and assets of S&C Richards Partnership.
The auditor, Adler Shine LLP, will be proposed for reappointment in accordance with section 489 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Page 5
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LOYAL NORTH PLC
We have audited the financial statements of Loyal North PLC (the 'Company') for the year ended 31 May 2023, which comprise the statement of comprehensive income, the balance sheet, the statement of cash flows, the statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
Page 6
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LOYAL NORTH PLC (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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.
Page 7
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LOYAL NORTH PLC (CONTINUED)
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.
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:
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. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have:
∙considered the nature of the industry and sectors, control environment and business performance;
∙made enquires of management about their own identification and assessment of the risk of irregularities;
∙performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and reviewing accounting estimates for bias;
∙undertaken appropriate sample based testing of bank transactions;
∙identified and evaluated compliance with relevant laws and regulations and made enquiries of any instances of non-compliance;
∙discussed matters among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Page 8
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LOYAL NORTH PLC (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Aston House
Cornwall Avenue
N3 1LF
Page 9
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023
Page 10
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
REGISTERED NUMBER: 09124855
BALANCE SHEET
AS AT 31 MAY 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 33 form part of these financial statements.
Page 11
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
Page 12
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
Page 13
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
Page 14
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2023
Page 15
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
Loyal North Plc is a public company limited by shares and registered in England and Wales. Its principal place of business and registered office address is 2 Queen Anne’s Gate Buildings, 22 Dartmouth Street, London, SW1H 9BP.
The principal activities of Loyal North Plc ("the Company") continued to be that of a holding company and the provision of centralised support services to its operating subsidiaries of Independent Financial Advisers (IFAs), which together with the Company form the “Loyal North Group”. The financial statements are presented in Sterling (£), and rounded to the nearest £1.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland ("FRS 102") and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company, and the group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and group are considered eligible for the exemption to prepare consolidated accounts.
The Company and its subsidiaries continued to show strong growth. Due to this strong performance and the ongoing acquisitions both during and following the year end the directors are optimistic about the future prospects of the Company and its subsidiaries.
After making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. At the balance sheet date, the Company had £2,325,323 in outstanding bank loans which are subject to term loan facility covenant that is measured on a quarterly basis. Management are confident the agreed covenant will be met throughout the outlook period. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Page 16
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
2.Accounting policies (continued)
Page 17
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Page 18
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
2.Accounting policies (continued)
Page 19
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
2.Accounting policies (continued)
Convertible bonds In order to calculate the year end balance of the liability and equity elements of the convertible bonds, the Company makes estimates principally relating to the assumptions used in the calculation of the present value of the liability. The convertible bonds were settled in the current period. Investments in subsidiaries The Company holds investments in subsidiaries that have been designated at fair value through profit and loss. The Company determines the fair value of these financial instruments that are not quoted using valuation techniques in line with industry standards. These techniques are significantly affected by key assumptions, and the derived fair value cannot always be substantiated by comparison with independent markets, and, in many cases, may not be capable of being realised immediately.
Analysis of turnover by country of destination:
Page 20
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
Page 21
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
Page 22
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
Page 23
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
10.Taxation (continued)
From 1 April 2023 the corporation tax rate increased to 25% for companies with profits of over £250,000. A small profits rate was also introduced for companies with profits of £50,000 or less so that they continue to pay corporation tax at 19%. From this date companies with profits between £50,000 and £250,000 pay tax at the main rate reduced by a marginal relief providing a gradual increase in the effective corporation tax rate.
Page 24
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
Page 25
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
Page 26
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
Page 27
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
Subsidiary undertakings (continued)
Page 28
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
Page 29
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
Page 30
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
In July 2022, the Company issued 2,800,000 Preference Shares of £1 each. The Preference Shareholders receive a fixed cumulative preferential cash dividend of 3% per annum, accruing from 1 January 2024 and payable yearly on 31 December. The preference shares have no redemption entitlement. On a winding-up the holders have priority before all other classes of shares to receive repayment of capital plus any arrears of dividend.
Other reserves
Profit and loss account
The profit and loss account includes non-distributable reserves of £9,184,905 (2022: £6,433,812), and a deficit in distributable reserves of £2,606,979 (£1,837,020).
Page 31
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £2,943 (2022 - £1,110).
On 11 October 2023, the Company purchased 249 shares in Bidco ML Limited, increasing its stake in the company from 75.1% to 100%. On 1 November 2023, the Company’s subsidiary, Lowland Financial Services Limited, acquired the business and assets of Sovereign Financial Services (Scottish Borders) Limited. On 2 November 2023, the Company’s subsidiary, Bidco ML Limited, acquired the business and assets of S&C Richards Partnership.
Page 32
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
The parent company is Loyal North Holdings Limited. The ultimate controlling party is Kirill Ilinski.
Page 33
|