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COMPANY REGISTRATION NUMBER: 07118349
InvestAcc Pension Administration Limited
Financial Statements
31 October 2023
InvestAcc Pension Administration Limited
Financial Statements
Year ended 31 October 2023
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the members
6
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14
InvestAcc Pension Administration Limited
Officers and Professional Advisers
The board of directors
Mr N Gardner
Ms J Barnes
Mr N Bennett
Mr G Mirfin
Mr D Gardner
Company secretary
Ms Julia Barnes
Registered office
Solway House Business Park
Kingstown
Carlisle
CA6 4BY
Auditor
Riverside Accountancy Lancaster Limited
Chartered accountants & statutory auditor
Second Floor, Riverside Offices
26 St George's Quay
Lancaster
LA1 1RD
Bankers
Handelsbanken
1 Merchant's Drive
Parkhouse
Carlisle
Cumbria
CA3 0JW
InvestAcc Pension Administration Limited
Strategic Report
Year ended 31 October 2023
Business review
2023 was another progressive year for the company with turnover increasing by 28% and profit before tax increasing by 35% , the Pre-Tax Profit Margin (PTM) remains above our industry Peer group at 40% with EBITDA increasing by 35% to £2.41m Assets under Administration (AUA) increased to £4bn as both SIPP member numbers and SSAS schemes increased. Our staff are our best asset and employee numbers rose during the year to 85 (2022: 76), whilst recruitment remains challenging we will continue to seek new talent and invest in training into 2024 to ensure our recognised service standards are maintained, this being evidenced by member satisfaction with attrition rates continuing to be well below competitor levels at 3.48% in 2023. The exceptional personal service reputation that the company has acquired was again recognised by industry awards in 2023, including, winner of Moneyfacts Best Pension Service, for the fourth year in a row, and being awarded Best SIPP Service. At the Financial Adviser Service Awards (FASA) we were awarded 5 stars for the sixth year. Our stance of not accepting non-standard assets, other than fixed term bank deposits, will continue and we maintain a strong, liquid balance sheet with cash reserves exceeding £5m ensuring the company regulatory capital exceeds 250% of requirements which will be maintained around this level. The Directors consider the Company's exposure to regulatory, credit and market risk is very low, having built up cash reserves, our capital adequacy significantly exceeds the regulatory requirement, and the Company does not rely on any external borrowing.
Key performance indicators
Key performance indicator measurements for 2023 were as follows: 2023 2022 Turnover £5.84m £4.59m +28% Profit before Tax £2.36m £1.74m +35% Profit Margin 40% 38% Shareholder Funds £5.17m £4.18m +24% EBITDA £2.41m £1.78m +35% Assets under Administration £3.99bn £3.45bn +16% SIPP Members 10327 8920 +16% SSAS Schemes 455 406 +12% During 2024 the company will relocate to larger office premises to accommodate the continued growth of the business. The Directors do not have any aspirations to dispose of any area of the business, however, will consider appropriate acquisitions/strategic partnerships if the proposed business is complementary, suitable and does not pose any risk to the continued success of the Company. The Directors are confident for the future of the company and due to the conservative, low risk attitude the Company has adopted, do not foresee any difficulties in achieving further success in 2024 and beyond.
This report was approved by the board of directors on 9 February 2024 and signed on behalf of the board by:
Mr N Gardner
Director
Registered office:
Solway House Business Park
Kingstown
Carlisle
CA6 4BY
InvestAcc Pension Administration Limited
Directors' Report
Year ended 31 October 2023
The directors present their report and the financial statements of the company for the year ended 31 October 2023 .
Principal activities
The principal activity of the company is as a specialist SIPP and SSAS provider, working with authorised financial advisers throughout the UK.
Directors
The directors who served the company during the year were as follows:
Mr N Gardner
Ms J Barnes
Mr N Bennett
Mr G Mirfin
Mr D Gardner
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Future developments
The Directors are confident that the company will continue to grow and due to the conservative, low risk attitude the Company has adopted, do not foresee any difficulties in achieving further success in 2024 and beyond.
The Directors do not have any aspirations to dispose of any area of the business, however, will consider appropriate acquisitions if the business is suitable and does not pose any risk to the continued success of the Company.
Greenhouse gas emissions and energy consumption
Information not included
The company consumed 40,000kWh of energy or less in the UK during the period, therefore no further disclosures required.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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 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 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 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 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 9 February 2024 and signed on behalf of the board by:
Mr N Gardner
Director
Registered office:
Solway House Business Park
Kingstown
Carlisle
CA6 4BY
InvestAcc Pension Administration Limited
Independent Auditor's Report to the Members of InvestAcc Pension Administration Limited
Year ended 31 October 2023
Opinion
We have audited the financial statements of InvestAcc Pension Administration Limited (the 'company') for the year ended 31 October 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 October 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
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. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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.
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 directors' 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. 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: - A review of directors' minutes and review of nominal postings for legal and professional fees ensured we identified any regulatory compliance issues and laws that company must follow in the year and to the date of signing the financial statements - Discuss with Directors any instances of non-compliance in respect of the FCA and reviewing capital adequacy calculations - The assessment of fraud was considered as low due to the segregation of duties seen, the low levels of cash handled and the regular reporting required of the company to the FCA. - A review of journal entries and consideration of their appropriateness was carried out through the audit - During the audit we speak to management, test the systems and speak to various members of the finance function to understand the entity its processes and the nature of trade to assist in determining if the financial statements are true and fair. - Challenging assumptions made by management in making their significant accounting estimates. - Reviewing financial statement disclosure and testing to supporting documentation to assess compliance with applicable laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Lyndsay Nicholson ACA
(Senior Statutory Auditor)
For and on behalf of
Riverside Accountancy Lancaster Limited
Chartered accountants & statutory auditor
Second Floor, Riverside Offices
26 St George's Quay
Lancaster
LA1 1RD
9 February 2024
InvestAcc Pension Administration Limited
Statement of Comprehensive Income
Year ended 31 October 2023
2023
2022
Note
£
£
Turnover
4
5,837,691
4,574,318
Cost of sales
8,822
36,375
------------
------------
Gross profit
5,828,869
4,537,943
Administrative expenses
3,570,396
2,797,214
Other operating income
5
2,500
------------
------------
Operating profit
6
2,258,473
1,743,229
Other interest receivable and similar income
10
99,734
1,687
Interest payable and similar expenses
11
1,033
876
------------
------------
Profit before taxation
2,357,174
1,744,040
Tax on profit
12
532,042
306,411
------------
------------
Profit for the financial year and total comprehensive income
1,825,132
1,437,629
------------
------------
All the activities of the company are from continuing operations.
InvestAcc Pension Administration Limited
Statement of Financial Position
31 October 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
14
205,381
198,782
Current assets
Debtors
15
410,181
299,367
Cash at bank and in hand
5,137,932
4,028,354
------------
------------
5,548,113
4,327,721
Creditors: amounts falling due within one year
16
581,372
332,513
------------
------------
Net current assets
4,966,741
3,995,208
------------
------------
Total assets less current liabilities
5,172,122
4,193,990
Creditors: amounts falling due after more than one year
17
7,000
------------
------------
Net assets
5,172,122
4,186,990
------------
------------
Capital and reserves
Called up share capital
21
30,000
30,000
Profit and loss account
22
5,142,122
4,156,990
------------
------------
Shareholders funds
5,172,122
4,186,990
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 9 February 2024 , and are signed on behalf of the board by:
Ms J Barnes
Director
Company registration number: 07118349
InvestAcc Pension Administration Limited
Statement of Changes in Equity
Year ended 31 October 2023
Called up share capital
Profit and loss account
Total
£
£
£
At 1 November 2021
30,000
3,454,361
3,484,361
Profit for the year
1,437,629
1,437,629
--------
------------
------------
Total comprehensive income for the year
1,437,629
1,437,629
Dividends paid and payable
13
( 735,000)
( 735,000)
--------
------------
------------
Total investments by and distributions to owners
( 735,000)
( 735,000)
At 31 October 2022
30,000
4,156,990
4,186,990
Profit for the year
1,825,132
1,825,132
--------
------------
------------
Total comprehensive income for the year
1,825,132
1,825,132
Dividends paid and payable
13
( 840,000)
( 840,000)
----
---------
---------
Total investments by and distributions to owners
( 840,000)
( 840,000)
--------
------------
------------
At 31 October 2023
30,000
5,142,122
5,172,122
--------
------------
------------
InvestAcc Pension Administration Limited
Statement of Cash Flows
Year ended 31 October 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
1,825,132
1,437,629
Adjustments for:
Depreciation of tangible assets
53,672
41,359
Government grant income
( 2,500)
Other interest receivable and similar income
( 99,734)
( 1,687)
Interest payable and similar expenses
1,033
876
Gains on disposal of tangible assets
( 21,381)
( 13,094)
Tax on profit
532,042
306,411
Accrued expenses
7,546
500
Changes in:
Trade and other debtors
( 110,814)
( 141,512)
Trade and other creditors
16,217
22,777
------------
------------
Cash generated from operations
2,203,713
1,650,759
Interest paid
( 1,033)
( 876)
Interest received
99,734
1,687
Tax paid
( 310,448)
( 275,047)
------------
------------
Net cash from operating activities
1,991,966
1,376,523
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 67,888)
( 140,337)
Proceeds from sale of tangible assets
29,000
22,719
------------
------------
Net cash used in investing activities
( 38,888)
( 117,618)
------------
------------
Cash flows from financing activities
Government grant income
2,500
Payments of finance lease liabilities
( 3,500)
( 3,500)
Dividends paid
( 840,000)
( 735,000)
------------
------------
Net cash used in financing activities
( 843,500)
( 736,000)
------------
------------
Net increase in cash and cash equivalents
1,109,578
522,905
Cash and cash equivalents at beginning of year
4,028,354
3,505,449
------------
------------
Cash and cash equivalents at end of year
5,137,932
4,028,354
------------
------------
InvestAcc Pension Administration Limited
Notes to the Financial Statements
Year ended 31 October 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Solway House Business Park, Kingstown, Carlisle, CA6 4BY.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss. The financial statements are prepared in sterling, which is the functional currency of the entity. The financial statements are rounded to the nearest £1.
Judgements and key sources of estimation uncertainty
In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. The resulting accounting estimate will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below: Useful economic life of tangible fixed assets: the annual depreciation charge is sensitive to changes in the estimated economic lives and residual value of tangible fixed assets; the directors review this annually, though it is generally found that the policies are adequate and representative of the useful lives. Where is it found that they are no longer representative of the assets' value and lives the policy is changed and updated to better reflect the useful lives of the assets and give a more accurate value.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax. When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period. When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings
-
20% straight line
Motor vehicles
-
18% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rendering of services
4,597,936
3,972,427
Commissions
1,239,755
601,891
------------
------------
5,837,691
4,574,318
------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2023
2022
£
£
Government grant income
2,500
----
-------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
53,672
41,359
Gains on disposal of tangible assets
( 21,381)
( 13,094)
Operating lease rentals
112,822
113,267
---------
---------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
9,500
9,000
-------
-------
Fees payable in respect of the company's pension scheme:
Audit of the pension scheme
4,700
4,475
-------
-------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Number of staff
80
70
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
2,018,378
1,727,175
Social security costs
176,399
163,958
Other pension costs
393,939
106,364
------------
------------
2,588,716
1,997,497
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
183,374
178,025
Company contributions to defined contribution pension plans
3,012
2,992
---------
---------
186,386
181,017
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2023
2022
No.
No.
Defined contribution plans
2
2
----
----
During the year the company contributed £320,000 to director's pension schemes (2022: £60,000).
10. Other interest receivable and similar income
2023
2022
£
£
Interest on cash and cash equivalents
98,205
1,687
Other interest receivable and similar income
1,529
--------
-------
99,734
1,687
--------
-------
11. Interest payable and similar expenses
2023
2022
£
£
Interest on obligations under finance leases and hire purchase contracts
876
876
Other interest payable and similar charges
157
-------
----
1,033
876
-------
----
12. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
532,042
306,411
---------
---------
Tax on profit
532,042
306,411
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2022: lower than) the standard rate of corporation tax in the UK of 22.51 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
2,357,174
1,744,040
------------
------------
Profit on ordinary activities by rate of tax
530,784
331,367
Adjustment to tax charge in respect of prior periods
( 2,065)
Effect of expenses not deductible for tax purposes
119
63
Effect of capital allowances and depreciation
1,139
( 22,954)
------------
------------
Tax on profit
532,042
306,411
------------
------------
13. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
840,000
735,000
---------
---------
14. Tangible assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 1 November 2022
161,282
164,562
325,844
Additions
14,893
52,995
67,888
Disposals
( 39,571)
( 39,571)
---------
---------
---------
At 31 October 2023
176,175
177,986
354,161
---------
---------
---------
Depreciation
At 1 November 2022
97,252
29,810
127,062
Charge for the year
23,276
30,396
53,672
Disposals
( 31,954)
( 31,954)
---------
---------
---------
At 31 October 2023
120,528
28,252
148,780
---------
---------
---------
Carrying amount
At 31 October 2023
55,647
149,734
205,381
---------
---------
---------
At 31 October 2022
64,030
134,752
198,782
---------
---------
---------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Fixtures and fittings
£
At 31 October 2023
----
At 31 October 2022
10,792
--------
15. Debtors
2023
2022
£
£
Trade debtors
206,001
244,184
Prepayments and accrued income
73,847
55,183
Other debtors
130,333
---------
---------
410,181
299,367
---------
---------
16. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
16,929
11,231
Accruals and deferred income
17,046
9,500
Social security and other taxes
539,863
307,505
Obligations under finance leases and hire purchase contracts
7,000
3,500
Other creditors
534
777
---------
---------
581,372
332,513
---------
---------
17. Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases and hire purchase contracts
7,000
----
-------
18. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2023
2022
£
£
Not later than 1 year
7,000
3,500
Later than 1 year and not later than 5 years
7,000
-------
--------
7,000
10,500
-------
--------
19. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 393,939 (2022: £ 106,364 ).
20. Government grants
The amounts recognised in the financial statements for government grants are as follows:
2023
2022
£
£
Recognised in other operating income:
Government grants recognised directly in income
2,500
----
-------
21. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
30,000
30,000
30,000
30,000
--------
--------
--------
--------
22. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses .
23. Analysis of changes in net debt
At 1 Nov 2022
Cash flows
At 31 Oct 2023
£
£
£
Cash at bank and in hand
4,028,354
1,109,578
5,137,932
Debt due within one year
(3,500)
(3,500)
(7,000)
Debt due after one year
(7,000)
7,000
------------
------------
------------
4,017,854
1,113,078
5,130,932
------------
------------
------------
InvestAcc Pension Administration Limited
Notes to the Financial Statements (continued)
Year ended 31 October 2023
24. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2023
2022
£
£
Not later than 1 year
21,167
95,500
Later than 1 year and not later than 5 years
212,417
--------
---------
21,167
307,917
--------
---------
25. Related party transactions
During the year the company paid rent to a connected party totalling £85,000 (2022 - £85,000).
26. Controlling party
The company is owned 100% by InvestAcc Group Limited , a company registered in England & Wales; this parent company has prepared consolidated financial statements; its registered office is Solway House, Solway House Business Park, Carlisle, Cumbria, United Kingdom, CA5 4BY. The ultimate controlling party of InvestAcc Pension Administration Limited is M r & Mrs N Gardner , who together, hold 99% of the share capital with voting rights, and are the controlling party of InvestAcc Group Limited.