Company Registration No. 07942025 (England and Wales)
LB FINANCIAL SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
LB Financial Solutions Limited
Swift House, Ground Floor
18 Hoffmanns Way
Chelmsford, Essex
CM1 1GU
LB FINANCIAL SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
Mr P Mustoe
Mr A Sewell
Company number
07942025
Registered office
Swift House
Ground Floor
18 Hoffmanns Way
Chelmsford
Essex
UK
CM1 1GU
Auditor
Barker Wilkinson Limited
19-21 Middle Row
Stevenage
Hertfordshire
SG1 3AW
LB FINANCIAL SOLUTIONS LIMITED
CONTENTS
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 5
Income statement
6
Statement of financial position
7
Notes to the financial statements
8 - 14
LB FINANCIAL SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023
- 1 -

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

Directors

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

Mr P Mustoe
Mr A Sewell
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Mr A Sewell
Director
15 February 2024
LB FINANCIAL SOLUTIONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2023
- 2 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LB FINANCIAL SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LB FINANCIAL SOLUTIONS LIMITED
- 3 -
Opinion

We have audited the financial statements of LB Financial Solutions Limited (the 'company') for the year ended 31 August 2023 which comprise the income statement, the statement of financial position and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

 

Other matter

The company’s financial statements for the year ended 31st August 2023 are the first ones to be audited and accordingly the comparative figures shown throughout the financial statements are unaudited.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

LB FINANCIAL SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LB FINANCIAL SOLUTIONS LIMITED
- 4 -
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 directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations was as follows:

LB FINANCIAL SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LB FINANCIAL SOLUTIONS LIMITED
- 5 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations , we designed procedure which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing Standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

K Barker
15 February 2024
Senior Statutory Auditor
For and on behalf of Barker Wilkinson Limited
Chartered Accountants
19-21 Middle Row
Statutory Auditor
Stevenage
Hertfordshire
SG1 3AW
LB FINANCIAL SOLUTIONS LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 31 AUGUST 2023
- 6 -
2023
2022
as restated
Notes
£
£
Turnover
678,515
1,307,396
Cost of sales
(704,171)
(995,403)
Gross (loss)/profit
(25,656)
311,993
Administrative expenses
(138,678)
(126,934)
Other operating income
-
0
3,238
Operating (loss)/profit
(164,334)
188,297
Interest receivable and similar income
4
75,000
-
0
Interest payable and similar expenses
(840)
(1,082)
(Loss)/profit before taxation
(90,174)
187,215
Tax on (loss)/profit
35,007
(35,581)
(Loss)/profit for the financial year
(55,167)
151,634

The income statement has been prepared on the basis that all operations are continuing operations.

LB FINANCIAL SOLUTIONS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 AUGUST 2023
31 August 2023
- 7 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
6
1,491
2,360
Investments
7
100
-
0
1,591
2,360
Current assets
Debtors
8
72,940
289,339
Cash at bank and in hand
21,307
22,480
94,247
311,819
Creditors: amounts falling due within one year
9
(35,704)
(77,404)
Net current assets
58,543
234,415
Total assets less current liabilities
60,134
236,775
Creditors: amounts falling due after more than one year
10
(18,214)
(28,271)
Provisions for liabilities
(25,851)
(29,268)
Net assets
16,069
179,236
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
15,969
179,136
Total equity
16,069
179,236

These financial statements have been prepared 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 15 February 2024 and are signed on its behalf by:
Mr A Sewell
Director
Company Registration No. 07942025
LB FINANCIAL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
- 8 -
1
Accounting policies
Company information

LB Financial Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Swift House, Ground Floor, 18 Hoffmanns Way, Chelmsford, Essex, UK, CM1 1GU.

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.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

LB Financial Solutions Limited is a wholly owned subsidiary of LBGH Limited and the results of LB Financial Solutions Limited are included in the consolidated financial statements of LBGH Limited which are available from it's registered office, The Octagon, Suite E2, 2nd Floor, Middleborough, Colchester, Essex, CO1 1TG.

1.2
Turnover

Turnover comprises advice charges paid by clients who receive advice with their mortgage application process. It also included third party fee and commission income, due from a third-party products provider in respect of products sold on their behalf. Turnover is exempt from VAT.

 

The provision of initial advice is a distinct performance obligation. As a result, initial advice charges are recognised in full on acceptance and inception of the associated policy by the relevant product provider.

 

Third party fee and commission income is recognised in full on acceptance and inception of the associated policy by the relevant third party product, hence it is appropriate that this revenue stream is recognised on the same basis as initial advice charges. The third-party product provider retains the right to clawback of commission on an indemnity basis, revenue on the sale of these products is recognised to the extent that it is highly probable the revenue will not be clawed back. Separately, a provision is recognised for amounts received by the Company which are expected to be clawed back.

 

1.3
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures, fittings & equipment
5 years straight line
Computer equipment
3 years 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.

LB FINANCIAL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 9 -
1.4
Fixed asset investments

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.

1.5
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.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.8
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 income statement 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.

1.9
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

LB FINANCIAL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
1
Accounting policies
(Continued)
- 10 -
1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

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

1.12
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.

1.13
Government grants

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

 

Government grants relating to turnover are recognised as income over the periods when the related costs are incurred. Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.

1.14
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.

LB FINANCIAL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 11 -
3
Employees

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

2023
2022
Number
Number
Total
11
12
4
Interest receivable and similar income
2023
2022
£
£
Interest receivable and similar income includes the following:
Income from shares in group undertakings
75,000
-
0
5
Dividends
2023
2022
£
£
Final paid
108,000
110,627

During the year under review a dividend was declared in excess of reserves then available for the purpose and this constitutes a breach of the Companies Act. However, the deficit was made good by virtue of a dividend received as at the year end from the company’s subsidiary (see note 7).

6
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 September 2022
1,712
10,877
12,589
Additions
-
0
816
816
At 31 August 2023
1,712
11,693
13,405
Depreciation and impairment
At 1 September 2022
436
9,793
10,229
Depreciation charged in the year
565
1,120
1,685
At 31 August 2023
1,001
10,913
11,914
Carrying amount
At 31 August 2023
711
780
1,491
At 31 August 2022
1,276
1,084
2,360
LB FINANCIAL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 12 -
7
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
100
-
0
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 September 2022
-
Additions
100
At 31 August 2023
100
Carrying amount
At 31 August 2023
100
At 31 August 2022
-

On 10 May 2023, LB Financial Solutions Limited purchased the entire issued share capital of LB Wealth Partners Limited.

8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
5,371
15,831
Corporation tax recoverable
35,013
-
0
Amounts owed by group undertakings
24,900
-
0
Other debtors
7,656
273,508
72,940
289,339
9
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
10,056
9,808
Trade creditors
826
3,017
Amounts owed to group undertakings
2,540
-
0
Corporation tax
-
0
35,581
Other taxation and social security
9,712
6,087
Other creditors
12,570
22,911
35,704
77,404
LB FINANCIAL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 13 -
10
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
18,214
28,271

The long-term loan is unsecured, carries an interest rate of 2.5% and is repayable in monthly instalments by May 2026.

11
Prior period adjustment
Reconciliation of changes in equity
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period
2022
£
Total adjustments
-
Profit as previously reported
151,634
Profit as adjusted
151,634
Notes to reconciliation

Various costs relating to staff and director salaries and pension costs have been reclassified from administrative expenses to cost of sales. This is to portray a more accurate representation of the split of staff throughout the business.

 

The impact on 2022 is as follows:

 

Increases to cost of sales/decreases to administrative expenses:

 

Wages and salaries    £308,471

Staff social security costs    £22,863

Staff pension costs    £7,093

Directors' remuneration     £9,415

Directors' pension costs    £22,000

 

LB FINANCIAL SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023
- 14 -
12
Parent company

The Company's immediate parent company is LBGH Limited, registered in England and Wales.

 

The smallest and largest group in which the results of LB Financial Solutions Limited are consolidated is that headed by LBGH Limited. The consolidated financial statements of LBGH Limited are available to the public and may be obtained from:

 

Companies House,

Crown Way,

Cardiff,

CF14 3UZ

 

and also from:

 

LGBH Limited

The Octagon, Suite E2

2nd Floor Middleborough

Colchester

Essex

CO1 1TG

 

The Company's ultimate parent company is Blue TopCo (Guernsey) Limited, registered in Guernsey.

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