Company Registration No. 05303532 (England and Wales)
PRISM FINANCIAL ADVICE LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
PRISM FINANCIAL ADVICE LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 8
PRISM FINANCIAL ADVICE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
261,475
123,334
Tangible assets
4
58,643
73,552
Investments
5
-
0
257,515
320,118
454,401
Current assets
Debtors
6
488,836
164,644
Cash at bank and in hand
466,794
262,628
955,630
427,272
Creditors: amounts falling due within one year
7
(326,834)
(591,807)
Net current assets/(liabilities)
628,796
(164,535)
Total assets less current liabilities
948,914
289,866
Provisions for liabilities
(14,661)
(45,767)
Net assets
934,253
244,099
Capital and reserves
Called up share capital
450,120
120
Other reserves
-
0
82,136
Profit and loss reserves
484,133
161,843
Total equity
934,253
244,099

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

PRISM FINANCIAL ADVICE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 11 March 2024 and are signed on its behalf by:
Mr M Smith
Director
Company Registration No. 05303532
PRISM FINANCIAL ADVICE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
120
130,343
27,265
157,728
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
701,176
701,176
Dividends
-
-
(618,000)
(618,000)
Transfers
-
-
51,402
51,402
Other movements
-
(48,207)
-
(48,207)
Balance at 31 December 2022
120
82,136
161,843
244,099
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
212,775
212,775
Issue of share capital
450,000
-
-
450,000
Transfers
-
-
109,515
109,515
Other movements
-
(82,136)
-
(82,136)
Balance at 31 December 2023
450,120
-
484,133
934,253
PRISM FINANCIAL ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
1
Accounting policies
Company information

Prism Financial Advice Limited is a private company limited by shares incorporated in England and Wales. The registered office is Prism House, 13 Keel Row, The Watermark, Gateshead, Tyne and Wear, NE11 9SZ.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Turnover
Turnover represents amounts receivable for commissions earned and services provided.
1.3
Intangible fixed assets - Client relationships

Client relationships are recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Client relationships are considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years after the year of purchase.

 

1.4
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:

Computer equipment
straight line over 3 years
Fixtures, fittings & equipment
15% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

PRISM FINANCIAL ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
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.

1.7
Retirement benefits

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

1.8
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Employees

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

2023
2022
Number
Number
Total
55
47
PRISM FINANCIAL ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
3
Intangible fixed assets
Client relationships
£
Cost
At 1 January 2023
129,290
Additions
151,070
At 31 December 2023
280,360
Amortisation and impairment
At 1 January 2023
5,956
Amortisation charged for the year
12,929
At 31 December 2023
18,885
Carrying amount
At 31 December 2023
261,475
At 31 December 2022
123,334
4
Tangible fixed assets
Computer equipment
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 January 2023
122,816
41,621
164,437
Additions
11,136
2,125
13,261
At 31 December 2023
133,952
43,746
177,698
Depreciation and impairment
At 1 January 2023
73,270
17,615
90,885
Depreciation charged in the year
24,477
3,693
28,170
At 31 December 2023
97,747
21,308
119,055
Carrying amount
At 31 December 2023
36,205
22,438
58,643
At 31 December 2022
49,546
24,006
73,552
5
Fixed asset investments
2023
2022
£
£
Other investments other than loans
-
0
257,515
PRISM FINANCIAL ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Fixed asset investments
(Continued)
- 7 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2023
257,515
Disposals
(257,515)
At 31 December 2023
-
Carrying amount
At 31 December 2023
-
At 31 December 2022
257,515
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,522
2,676
Other debtors
483,314
161,968
488,836
164,644
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
12,891
9,470
Taxation and social security
161,372
298,366
Other creditors
152,571
283,971
326,834
591,807
8
Share Capital

450,000 ordinary shares were issued and paid in full during the year with nominal £1 value.

9
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
135,000
74,000
PRISM FINANCIAL ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
11
Directors' transactions

Dividends totalling £0 (2022 - £618,000) were paid in the year in respect of shares held by the company's directors.

At the year end date the directors loan account balances owing to the company totalled £7,500.

 

This balance was repaid in full prior to the 9th March 2024.

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