Company Registration No. 04527630 (England and Wales)
HIGH COURT ENFORCEMENT GROUP LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
HIGH COURT ENFORCEMENT GROUP LIMITED
COMPANY INFORMATION
Directors
B Lewis Jones
M Garland
M Anderson
G Dean
Company number
04527630
Registered office
Marine House
2 Marine Road
Colwyn Bay
Conwy
LL29 8PH
Auditor
Sage & Company Business Advisors Ltd
102 Bowen Court
St Asaph Business Park
St Asaph
Denbighshire
LL17 0JE
Business address
Marine House
2 Marine Road
Colwyn Bay
Conwy
LL29 8PH
HIGH COURT ENFORCEMENT GROUP LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 34
HIGH COURT ENFORCEMENT GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report and financial statements for the year ended 31 March 2023.

Fair review of the business

The directors are pleased to present the accounts of High Court Enforcement Group Limited (the Group)

incorporating Excel Civil Enforcement Limited (Excel) and SHCE Limited for the year to 31 March 2023.

 

The principal activities of the Group continue to be that of the provision of enforcement solutions to a wide range

of clients including the legal profession, government departments, local authorities and commercial clients.

 

Principal risks and uncertainties

The business has been impacted by both the recruitment and retention of staff and with a significant rise in the price of goods and services.

 

The Group continues to maintain a risk management system to identify, assess and mitigate major risks to the business and will continue to do so.

Development and performance

As always the retention of key Personnel has been a priority objective and the Directors are pleased to announce this has been achieved. The Directors wish to thank our staff for their continuing hard work and loyalty.

Key performance indicators

The key performance indicators by which the Directors measure the business are turnover and adjusted net profit before tax, interest, amortisation, and depreciation. These measures have proved satisfactory in the period.

On behalf of the board

B Lewis Jones
Director
22 December 2023
HIGH COURT ENFORCEMENT GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

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

Principal activities

The principal activity of the group continued to be that of debt collection, bailiff services and eviction services. The core elements are: Enforcement of High Court writs of Fieri Facias and possession, enforcement of warrants of distress and liability orders, enforcement of warrants of arrest, tracing, status reporting and sundry debts.

 

Our services are provided to users of the County and High Courts, His Majesty's Courts and Tribunal Services, local authorities and commercial clients.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £70,628.

Directors

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

B Lewis Jones
M Garland
M Anderson
G Dean
Auditor

In accordance with the company's articles, a resolution proposing that Sage & Company Business Advisors Ltd be reappointed as auditor of the group will be put at a General Meeting.

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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
B Lewis Jones
Director
22 December 2023
HIGH COURT ENFORCEMENT GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

- select suitable accounting policies and then apply them consistently;

- make judgements 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 group 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 the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the company website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

HIGH COURT ENFORCEMENT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HIGH COURT ENFORCEMENT GROUP LIMITED
- 4 -
Opinion

We have audited the financial statements of High Court Enforcement Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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 group and parent 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 group's and parent 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 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:

HIGH COURT ENFORCEMENT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGH COURT ENFORCEMENT GROUP LIMITED
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

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 parent 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 parent 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;

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

HIGH COURT ENFORCEMENT GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGH COURT ENFORCEMENT GROUP LIMITED
- 6 -

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 procedures 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 rise due to fraud can be harder to detect than these 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.

Christopher Morgans BA ACA (Senior Statutory Auditor)
For and on behalf of Sage & Company Business Advisors Ltd
22 December 2023
Chartered Accountants
Statutory Auditor
102 Bowen Court
St Asaph Business Park
St Asaph
Denbighshire
LL17 0JE
HIGH COURT ENFORCEMENT GROUP LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
13,808,470
11,735,451
Administrative expenses
(11,836,983)
(9,500,992)
Other operating income
-
167,607
Operating profit
4
1,971,487
2,402,066
Interest receivable and similar income
8
25,952
2,370
Interest payable and similar expenses
9
(66,804)
(32,794)
Profit before taxation
1,930,635
2,371,642
Tax on profit
10
(384,316)
(477,893)
Profit for the financial year
24
1,546,319
1,893,749
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HIGH COURT ENFORCEMENT GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
£
£
Profit for the year
1,546,319
1,893,749
Other comprehensive income
-
-
Total comprehensive income for the year
1,546,319
1,893,749
Total comprehensive income for the year is all attributable to the owners of the parent company.
HIGH COURT ENFORCEMENT GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
-
0
4,156
Tangible assets
13
1,398,456
1,257,207
1,398,456
1,261,363
Current assets
Debtors
16
2,025,216
1,433,522
Cash at bank and in hand
7,481,060
7,518,658
9,506,276
8,952,180
Creditors: amounts falling due within one year
17
(1,682,579)
(1,915,234)
Net current assets
7,823,697
7,036,946
Total assets less current liabilities
9,222,153
8,298,309
Creditors: amounts falling due after more than one year
18
(913,716)
(1,397,578)
Provisions for liabilities
Deferred tax liability
20
186,004
128,989
(186,004)
(128,989)
Net assets
8,122,433
6,771,742
Capital and reserves
Called up share capital
22
26,147
26,985
Capital redemption reserve
24
4,886
4,048
Other reserves
24
170,067
170,067
Profit and loss reserves
24
7,921,333
6,570,642
Total equity
8,122,433
6,771,742
The financial statements were approved by the board of directors and authorised for issue on 22 December 2023 and are signed on its behalf by:
22 December 2023
B Lewis Jones
Director
Company registration number 04527630 (England and Wales)
HIGH COURT ENFORCEMENT GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
12
-
0
4,156
Tangible assets
13
1,332,140
1,195,801
Investments
14
2,754,873
2,754,571
4,087,013
3,954,528
Current assets
Debtors
16
2,322,257
949,391
Cash at bank and in hand
4,733,277
5,815,931
7,055,534
6,765,322
Creditors: amounts falling due within one year
17
(1,352,703)
(1,701,158)
Net current assets
5,702,831
5,064,164
Total assets less current liabilities
9,789,844
9,018,692
Creditors: amounts falling due after more than one year
18
(1,382,344)
(3,309,684)
Provisions for liabilities
Deferred tax liability
20
169,670
116,570
(169,670)
(116,570)
Net assets
8,237,830
5,592,438
Capital and reserves
Called up share capital
22
26,147
26,985
Capital redemption reserve
24
4,886
4,048
Profit and loss reserves
24
8,206,797
5,561,405
Total equity
8,237,830
5,592,438

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £2,841,020 (2022 - £958,954 profit).

The financial statements were approved by the board of directors and authorised for issue on 22 December 2023 and are signed on its behalf by:
22 December 2023
B Lewis Jones
Director
Company registration number 04527630 (England and Wales)
HIGH COURT ENFORCEMENT GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
27,823
3,210
170,067
4,801,893
5,002,993
Year ended 31 March 2022:
Profit and total comprehensive income
-
-
-
1,893,749
1,893,749
Own shares acquired
-
-
-
(125,000)
(125,000)
Redemption of shares
22
-
838
-
-
838
Reduction of shares
22
(838)
-
-
-
(838)
Balance at 31 March 2022
26,985
4,048
170,067
6,570,642
6,771,742
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
-
1,546,319
1,546,319
Dividends
11
-
-
-
(70,628)
(70,628)
Own shares acquired
-
-
-
(125,000)
(125,000)
Redemption of shares
22
-
838
-
-
838
Reduction of shares
22
(838)
-
-
-
(838)
Balance at 31 March 2023
26,147
4,886
170,067
7,921,333
8,122,433
HIGH COURT ENFORCEMENT GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
27,823
3,210
4,727,451
4,758,484
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
958,954
958,954
Own shares acquired
-
-
(125,000)
(125,000)
Redemption of shares
22
-
838
-
838
Reduction of shares
22
(838)
-
-
(838)
Balance at 31 March 2022
26,985
4,048
5,561,405
5,592,438
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
2,841,020
2,841,020
Dividends
11
-
-
(70,628)
(70,628)
Own shares acquired
-
-
(125,000)
(125,000)
Redemption of shares
22
-
838
-
838
Reduction of shares
22
(838)
-
-
(838)
Balance at 31 March 2023
26,147
4,886
8,206,797
8,237,830
HIGH COURT ENFORCEMENT GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,754,464
3,202,048
Interest paid
(66,804)
(32,794)
Income taxes paid
(707,061)
(717,905)
Net cash inflow from operating activities
980,599
2,451,349
Investing activities
Purchase of tangible fixed assets
(283,139)
(274,143)
Proceeds from disposal of tangible fixed assets
75
221,504
Repayment of loans
(83,199)
-
Interest received
25,952
2,371
Net cash used in investing activities
(340,311)
(50,268)
Financing activities
Proceeds from issue of shares
(302)
(230)
Purchase of treasury shares
(125,000)
(125,000)
Repayment of bank loans
(400,000)
(300,000)
Proceeds of finance leases obligations
-
244,029
Payment of finance leases obligations
(81,956)
(66,051)
Dividends paid to equity shareholders
(70,628)
-
0
Net cash used in financing activities
(677,886)
(247,252)
Net (decrease)/increase in cash and cash equivalents
(37,598)
2,153,829
Cash and cash equivalents at beginning of year
7,518,658
5,364,829
Cash and cash equivalents at end of year
7,481,060
7,518,658
HIGH COURT ENFORCEMENT GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
85,715
1,797,013
Interest paid
(65,550)
(31,730)
Income taxes paid
(415,125)
(591,576)
Net cash (outflow)/inflow from operating activities
(394,960)
1,173,707
Investing activities
Purchase of tangible fixed assets
(253,547)
(271,597)
Proceeds from disposal of tangible fixed assets
75
221,504
Repayment of loans
(83,199)
-
0
Interest received
20,341
2,274
Dividends received
1,750,000
-
0
Net cash generated from/(used in) investing activities
1,433,670
(47,819)
Financing activities
Proceeds from issue of shares
(302)
(230)
Purchase of treasury shares
(125,000)
(125,000)
Repayment of borrowings
(1,443,478)
13,117
Repayment of bank loans
(400,000)
(300,000)
Proceeds of finance leases obligaitons
-
244,029
Payment of finance leases obligations
(81,956)
(66,051)
Dividends paid to equity shareholders
(70,628)
-
Net cash used in financing activities
(2,121,364)
(234,135)
Net (decrease)/increase in cash and cash equivalents
(1,082,654)
891,753
Cash and cash equivalents at beginning of year
5,815,931
4,924,178
Cash and cash equivalents at end of year
4,733,277
5,815,931
HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

High Court Enforcement Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Marine House, 2 Marine Road, Colwyn Bay, Conwy, LL29 8PH.

 

The group consists of High Court Enforcement Group Limited and all of its subsidiaries.

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.

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
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company High Court Enforcement Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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:

Land and buildings Freehold
Not depreciated
Leasehold improvements
15% Reducing Balance
Plant and machinery
20% Reducing Balance
Fixtures, fittings & equipment
20% Reducing Balance
Computer equipment
25% Reducing Balance
Motor vehicles
25% 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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -

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

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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

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

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.10
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.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 group 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.

HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
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 group’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 if, and only if, there is 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.

1.15
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.

1.16
Retirement benefits

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

1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
1.18
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.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.19

Estimation techniques adopted

All estimates included within the financial statements are based on known fact from available evidence and third party information.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Enforcement fees
13,752,283
11,679,805
Management charge
56,187
55,646
13,808,470
11,735,451
2023
2022
£
£
Other revenue
Interest income
25,952
2,370
Grants received
-
167,607
HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
-
(167,607)
Depreciation of owned tangible fixed assets
131,945
144,301
Loss/(profit) on disposal of tangible fixed assets
9,873
(79,994)
Amortisation of intangible assets
4,156
50,154
Operating lease charges
6,200
6,000
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
14,175
13,450
Audit of the financial statements of the company's subsidiaries
10,250
9,735
24,425
23,185
For other services
All other non-audit services
21,268
21,312
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
167
158
127
111

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
5,474,287
4,927,528
4,068,515
3,438,304
Social security costs
39,595
41,924
-
-
Pension costs
135,374
114,623
116,382
69,418
5,649,256
5,084,075
4,184,897
3,507,722
HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
369,045
272,769
Company pension contributions to defined contribution schemes
7,200
7,200
376,245
279,969
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
86,800
71,591
Company pension contributions to defined contribution schemes
1,800
1,800

 

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
25,952
709
Other interest income
-
1,661
Total income
25,952
2,370
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
25,952
709
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
60,103
22,493
Other finance costs:
Interest on finance leases and hire purchase contracts
1,717
4,255
Other interest
4,984
6,046
Total finance costs
66,804
32,794
HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
327,301
408,977
Adjustments in respect of prior periods
-
0
(2,573)
Total current tax
327,301
406,404
Deferred tax
Origination and reversal of timing differences
57,015
71,489
Total tax charge
384,316
477,893

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,930,635
2,371,642
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
366,821
450,612
Tax effect of expenses that are not deductible in determining taxable profit
1,889
(11,046)
Tax effect of income not taxable in determining taxable profit
778
-
0
Permanent capital allowances in excess of depreciation
(69,921)
(65,952)
Depreciation on assets not qualifying for tax allowances
25,068
27,417
Amortisation on assets not qualifying for tax allowances
790
9,529
Deferred tax adjustments in respect of prior years
-
0
(2,572)
Deferred tax
57,015
71,489
Profit on sale of fixed assets
1,876
(15,199)
Chargeable gain
-
13,615
Taxation charge
384,316
477,893
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
70,628
-
HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
3,336,191
Amortisation and impairment
At 1 April 2022
3,332,035
Amortisation charged for the year
4,156
At 31 March 2023
3,336,191
Carrying amount
At 31 March 2023
-
0
At 31 March 2022
4,156
Company
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
730,038
Amortisation and impairment
At 1 April 2022
725,882
Amortisation charged for the year
4,156
At 31 March 2023
730,038
Carrying amount
At 31 March 2023
-
0
At 31 March 2022
4,156

 

HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
13
Tangible fixed assets
Group
Land and buildings Freehold
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 April 2022
811,003
83,379
121,946
571,191
430,656
323,459
2,341,635
Additions
-
0
-
0
-
0
29,592
81,358
172,189
283,139
Disposals
-
0
-
0
-
0
(111,841)
(391)
-
0
(112,232)
At 31 March 2023
811,003
83,379
121,946
488,942
511,623
495,648
2,512,542
Depreciation and impairment
At 1 April 2022
-
0
70,880
121,446
492,487
308,795
90,819
1,084,425
Depreciation charged in the year
-
0
1,875
50
18,801
39,690
71,529
131,945
Eliminated in respect of disposals
-
0
-
0
-
0
(101,968)
(316)
-
0
(102,284)
At 31 March 2023
-
0
72,755
121,497
409,319
348,168
162,347
1,114,086
Carrying amount
At 31 March 2023
811,003
10,624
449
79,623
163,455
333,301
1,398,456
At 31 March 2022
811,003
12,499
500
78,704
121,861
232,640
1,257,207
HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
Company
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2022
811,003
1,289
163,459
430,656
307,664
1,714,072
Additions
-
0
-
0
-
0
81,358
172,189
253,547
Disposals
-
0
-
0
-
0
(391)
-
0
(391)
At 31 March 2023
811,003
1,289
163,459
511,623
479,853
1,967,228
Depreciation and impairment
At 1 April 2022
-
0
789
131,770
308,795
76,916
518,270
Depreciation charged in the year
-
0
50
6,338
39,690
71,056
117,134
Eliminated in respect of disposals
-
0
-
0
-
0
(316)
-
0
(316)
At 31 March 2023
-
0
840
138,108
348,168
147,972
635,088
Carrying amount
At 31 March 2023
811,003
449
25,351
163,455
331,881
1,332,140
At 31 March 2022
811,003
500
31,689
121,861
230,748
1,195,801
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
2,754,873
2,754,571
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022
2,754,571
Valuation changes
302
At 31 March 2023
2,754,873
Carrying amount
At 31 March 2023
2,754,873
At 31 March 2022
2,754,571
HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Excel Civil Enforcement Limited
England and Wales
Ordinary
100.00
High Court Enforcement Limited
England and Wales
Ordinary
100.00
High Court Enforcement Officers Limited
England and Wales
Ordinary
100.00
Menai Collect Limited
England and Wales
Ordinary
100.00
National Eviction Team Limited
England and Wales
Ordinary
100.00
SHCE Limited
England and Wales
Ordinary
100.00
ABC Debt Recovery Limited
England and Wales
Ordinary
100.00
Sheriffs High Court Enforcement Limited
England and Wales
Ordinary
100.00
High Court Enforcement Agents Limited
England and Wales
Ordinary
100.00
The Sheriffs Office Limited
England and Wales
Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Excel Civil Enforcement Limited
1,045,534
219,013
High Court Enforcement Limited
3,747
-
High Court Enforcement Officers Limited
11
-
Menai Collect Limited
92,846
-
National Eviction Team Limited
2
-
SHCE Limited
1,496,804
236,285
ABC Debt Recovery Limited
100
-
Sheriffs High Court Enforcement Limited
30
-
High Court Enforcement Agents Limited
100
-
The Sheriffs Office Limited
300
-
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
900,300
668,685
731,838
451,885
Corporation tax recoverable
13,371
6,642
-
0
6,491
Amounts owed by group undertakings
-
-
735,928
2,145
Other debtors
516,460
259,857
489,892
234,455
Prepayments and accrued income
595,085
498,338
364,599
254,415
2,025,216
1,433,522
2,322,257
949,391
HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
400,000
400,000
400,000
400,000
Obligations under finance leases
82,306
80,400
82,306
80,400
Trade creditors
250,365
195,982
224,987
118,142
Amounts owed to group undertakings
-
0
-
0
93,478
390,531
Corporation tax payable
150,779
523,810
102,606
301,404
Other taxation and social security
449,829
433,920
243,453
239,445
Other creditors
119,290
75,237
54,475
51,363
Accruals and deferred income
230,010
205,885
151,398
119,873
1,682,579
1,915,234
1,352,703
1,701,158
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
900,000
1,300,000
900,000
1,300,000
Obligations under finance leases
13,716
97,578
13,716
97,578
Other borrowings
19
-
0
-
0
468,628
1,912,106
913,716
1,397,578
1,382,344
3,309,684
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
1,300,000
1,700,000
1,300,000
1,700,000
Loans from group undertakings
-
0
-
0
468,628
1,912,106
1,300,000
1,700,000
1,768,628
3,612,106
Payable within one year
400,000
400,000
400,000
400,000
Payable after one year
900,000
1,300,000
1,368,628
3,212,106

On 28 July 2020 an unlimited debenture was created in favour of Lloyds Bank Plc incorporating a fixed and floating charge.

On 14 August 2020 a 1st legal charge over commercial freehold office know as Vaughan Thomas House, 141 Walter Road, Swansea, SA1 5RW was created in favour of Lloyds Plc

On 14 August 2020 a 1st legal charge over commercial freehold office known as Erskine House, Conway Road, Colwyn Bay, LL29 7LD was created in favour of Lloyds Plc

 

HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
20
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
ACAs
186,004
128,989
Liabilities
Liabilities
2023
2022
Company
£
£
ACAs
169,670
116,570
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 April 2022
128,989
116,570
Charge to profit or loss
57,015
53,100
Liability at 31 March 2023
186,004
169,670
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
135,374
114,623

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
6,510
6,510
6,510
6,510
Ordinary B shares of £1 each
735
735
735
735
Ordinary C shares of £1 each
6,510
6,510
6,510
6,510
Ordinary D shares of £1 each
6,510
6,510
6,510
6,510
Ordinary F shares of £1 each
2,498
2,498
2,498
2,498
Ordinary G shares of £1 each
1,707
1,707
1,707
1,707
Ordinary R shares of £1 each
1,677
2,515
1,677
2,515
26,147
26,985
26,147
26,985

 

During the year the company repurchased 838 shares in connection with the retirement of one of the directors.

The company is committed to the purchase of the remaining shares with multiple completion contracts, with consideration due on subsequent completions as follows:

 

Within < 1 year: £125,000

Within > 1 year: £125,000

23
Other reserves - Merger reserve

The merger reserve represents a reserve generated on consolidation of the High Court Enforcement Group companies. There has been no movement in this reserve during the period.

24
Reserves
Profit and loss reserves

The profit and loss account includes all current and prior period retained profits and losses.

25
Related party transactions
Transactions with related parties
HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
25
Related party transactions
(Continued)
- 32 -

The group accounts include intercompany loans made to and from Cherrys Vehicle Leasing LLP, the partners of which are B Lewis Jones, M Anderson and G Dean. Included within other debtors is an amount of £452,602 (2022 £251,060).

 

During the year Cherrys Vehicle Leasing LLP invoiced High Court Enforcement Group Limited for vehicle hire and recharge for fuel and insurance. The total amount invoiced was to £593,181 (2022 £331,173) and the balance outstanding at the year end was £60,633 (2022 £48,988).

 

During the period Cherrys Vehicle Leasing LLP invoiced SHCE Limited for vehicle hire and recharge for fuel and insurance. The total amount invoiced was £42,863 (2022 £59,290). The balance outstanding at the year end was £2,184 (2022 £3,900).

 

During the period Cherrys Vehicle Leasing LLP invoiced Excel Civil Enforcement Limited for vehicle hire and recharge for fuel and insurance. The total amount invoiced was £161,684 (2022 £137,756). The balance outstanding at the year end was £15,938 (2022 £18,735).

 

The transactions were conducted on an arm's length basis and under normal commercial terms.

 

Exemption from related party disclosures under section FRS102.33.1A between High Court Enforcement Group Ltd and its subsidiaries has been taken on the grounds that the subsidiaries are a wholly owned subsidiary of High Court Enforcement Group Ltd.

26
Directors' transactions

Dividends totalling £70,628 (2022 - £0) were paid in the year in respect of shares held by the company's directors.

Interest free loans have been granted by the group to its directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Director 1
-
-
27,734
27,734
Director 2
-
-
27,733
27,733
Director 3
-
-
27,733
27,733
-
83,200
83,200

All loans were repaid with nine months of the year end.

27
Controlling party

The ultimate controlling parties are the Directors, by virtue of their majority shareholding.

HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 33 -
28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
1,546,319
1,893,749
Adjustments for:
Taxation charged
384,316
477,893
Finance costs
66,804
32,794
Investment income
(25,952)
(2,370)
Loss/(gain) on disposal of tangible fixed assets
9,873
(79,994)
Amortisation and impairment of intangible assets
4,156
50,154
Depreciation and impairment of tangible fixed assets
131,942
144,300
Movements in working capital:
(Increase)/decrease in debtors
(501,464)
1,908,010
Increase/(decrease) in creditors
138,470
(1,222,488)
Cash generated from operations
1,754,464
3,202,048
29
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
2,841,020
958,954
Adjustments for:
Taxation charged
275,918
257,598
Finance costs
65,550
31,730
Investment income
(1,770,341)
(2,274)
Gain on disposal of tangible fixed assets
-
(79,994)
Amortisation and impairment of intangible assets
4,156
50,152
Depreciation and impairment of tangible fixed assets
117,133
125,525
Movements in working capital:
(Increase)/decrease in debtors
(1,296,158)
1,856,228
Decrease in creditors
(151,563)
(1,400,906)
Cash generated from operations
85,715
1,797,013
30
Analysis of changes in net funds - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
7,518,658
(37,598)
7,481,060
Borrowings excluding overdrafts
(1,700,000)
400,000
(1,300,000)
Obligations under finance leases
(177,978)
81,956
(96,022)
5,640,680
444,358
6,085,038
HIGH COURT ENFORCEMENT GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 34 -
31
Analysis of changes in net funds - company
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
5,815,931
(1,082,654)
4,733,277
Borrowings excluding overdrafts
(3,612,106)
1,843,478
(1,768,628)
Obligations under finance leases
(177,978)
81,956
(96,022)
2,025,847
842,780
2,868,627
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