Company registration number 06746970 (England and Wales)
LWG CONSULTING UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
PAGES FOR FILING WITH REGISTRAR
LWG CONSULTING UK LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 9
LWG CONSULTING UK LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 SEPTEMBER 2023
30 September 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
142,396
193,653
Current assets
Debtors
6
1,798,080
1,529,565
Cash at bank and in hand
169,675
740,344
1,967,755
2,269,909
Creditors: amounts falling due within one year
7
(4,023,059)
(4,596,382)
Net current liabilities
(2,055,304)
(2,326,473)
Net liabilities
(1,912,908)
(2,132,820)
Capital and reserves
Called up share capital
8
100
100
Profit and loss reserves
(1,913,008)
(2,132,920)
Total equity
(1,912,908)
(2,132,820)

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 8 April 2024 and are signed on its behalf by:
M Bavely
Director
Company Registration No. 06746970
LWG CONSULTING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -
1
Accounting policies
Company information

LWG Consulting UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 54 Portland Place, London, W1B 1DY.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

The company currently has a net liability position of £1,912,908 (2022: £2,132,820) and made a profit of £219,912 (2022: loss of £1,855,859) during the year ended 30 September 2023. The directors have reviewed the management accounts for the period ended 31 December 2023 which show profits of £105,164. The directors believe that with a stable cost base and increase in customer base, the company will improve its liquidity and decrease this liability position in the subsequent reporting period.

 

The financial statements are prepared on the going concern basis on the assumption that the company will continue in operational existence for the foreseeable future, the validity of which depends upon on the ongoing support of the immediate parent company 'Envista Forensics Inc' and 'Cor Partners Inc' which is the immediate parent company of 'Envista Forensics Inc'.

 

Envista Forensics Inc and Cor Partners Inc have provided the company with a letter of support stating that it will provide additional working capital as necessary and not seek repayment of its outstanding interest-free loan of £3,364,577 (owed to Envista Forensics Inc being the balance owed net of a creditor balance of £4,365,686 and debtor balance of a £1,001,109) to the company, if to do so means the company will not be able to meet its debts as and when they fall due for a period of twelve months from the date of approval of the financial statements. The financial statements include no adjustment that might otherwise be necessary if that support were not forthcoming.

1.3
Turnover

The company derives substantially all of its revenue from professional services related to claim service agreements. The company's fee and other revenue primarily comprises claims processing and program administration fees. Service revenue is derived from providing field investigation and evaluation of claims for insurance companies, loss reporting services and mitigation services, risk management information services and forensic consulting services.

 

Revenue generated from the services performed are generally invoiced to the customer when all agreed upon services have been provided to the customer. Revenue from contracts with customers is measured as the amount of consideration that the company expects to receive in exchange for providing services, and is shown net of VAT.

LWG CONSULTING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 3 -

Revenue is recognised over time as services are provided and performance obligations are satisfied through the effort expanded to research, investigate, evaluate, document and report. Control of these services is transferred to the customer as these performance obligations are satisfied.

 

As a result, at any given time, a contract asset exists related to services that have been performed but not yet billed to the customer. The company utilises the input method and performs a calculation at the end of each accounting period whereby it analyses all work in progress, generally representing the numbers of hours incurred at contractual hourly rates. This method was selected because the costs incurred are proportionate to the company's progress in satisfying the performance obligations and therefore it faithfully depicts the company's performance on the contract. The revenue recorded at each period end reflects the estimated revenue recognition for services provided over time, based on contractual billing rates with customers.

Other income consists of Management charges receivables from members of the same group in regards to services provided to them in the year.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation 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:

Software
Over useful life (4 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:

Leasehold land and buildings
Over the life of the lease
Fixtures, fittings and equipments
25% straight line
Computers
20% straight line

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 assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

LWG CONSULTING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 4 -

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.

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.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position 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.

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.

LWG CONSULTING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities

Basic financial liabilities, including creditors, and trade loans from fellow group companies 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.

Derecognition of financial liabilities

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

1.8
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.9
Retirement benefits

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

1.10
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.

1.11
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.

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.

LWG CONSULTING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 6 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Recoverability of WIP and Debtors

The key estimate applied by management is in respect of the recoverability of WIP and debtors. In making this estimate, the Directors consider a range of factors including historical WIP recovery rates and monitor credit control metrics to determine their approach to provisioning. Such estimates are regularly reviewed in light of any new information and developing economic factors.

3
Employees

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

2023
2022
Number
Number
Total
12
13
4
Intangible fixed assets
Goodwill
Other
Total
£
£
£
Cost
At 1 October 2022
32,111
15,409
47,520
Disposals
(32,111)
(15,409)
(47,520)
At 30 September 2023
-
0
-
0
-
0
Amortisation and impairment
At 1 October 2022
32,111
15,409
47,520
Disposals
(32,111)
(15,409)
(47,520)
At 30 September 2023
-
0
-
0
-
0
Carrying amount
At 30 September 2023
-
0
-
0
-
0
At 30 September 2022
-
0
-
0
-
0
LWG CONSULTING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 7 -
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 October 2022
127,789
182,285
310,074
Disposals
-
0
(3,064)
(3,064)
At 30 September 2023
127,789
179,221
307,010
Depreciation and impairment
At 1 October 2022
57,407
59,014
116,421
Depreciation charged in the year
18,223
33,034
51,257
Eliminated in respect of disposals
-
0
(3,064)
(3,064)
At 30 September 2023
75,630
88,984
164,614
Carrying amount
At 30 September 2023
52,159
90,237
142,396
At 30 September 2022
70,382
123,271
193,653
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
842,402
708,009
Amounts owed by group undertakings
54,321
60,250
Other debtors
843,247
703,976
1,739,970
1,472,235
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
58,110
57,330
Total debtors
1,798,080
1,529,565

Trade debtors are stated after provisions for impairment of £517,100 (2022: £474,346).

 

Included within amounts owed by group undertakings are trade balances that are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

LWG CONSULTING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
8,703
91,548
Amounts owed to group undertakings
3,500,443
4,176,050
Taxation and social security
104,140
67,839
Other creditors
409,773
260,945
4,023,059
4,596,382

Included within amounts owed to group undertakings are trade balances that are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100

There is a single class of Ordinary shares. There are no restrictions on the distribution of dividends and repayment of capital.

9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Material uncertainty related to going concern

We draw attention to note 1.2 of the financial statements, which indicates that as at 30 September 2023, the company has net liabilities of £1,912,908. As stated in note 1.2, these conditions, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

 

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.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Senior Statutory Auditor:
Bashir Khan ACCA
Statutory Auditor:
Gravita II LLP
LWG CONSULTING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
10
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
£
£
743,280
900,000
11
Related party transactions

The company has taken advantage of the exemption in FRS 102 1AC.35 that transactions entered into between members of a group do not need to be disclosed as all relevant subsidiaries are wholly owned.

12
Parent company

The parent company of the company is Envista Forensics LLC, a company registered in the United States of America.

 

Envista Forensics LLC is controlled by Cor Partners Inc, a company registered in the United States of America. The ultimate parent company of the group is BW Forsyth Partners LLC, a company registered in the United States of America.

 

The company's financial statements are included in the Consolidated financial statements of Envista Forensics LLC. The registered office of the company is at 111 Deer Lake Road, Suite 100, Deerfield, IL 60015, United States of America.

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