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Company Registration number: 02948102

Battens Solicitors Limited

Annual Report and Financial Statements

for the Year Ended 30 June 2023

 

Battens Solicitors Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Financial Statements

15 to 26

 

Battens Solicitors Limited

Company Information

Directors

C A Stephens - Managing Director

P H Livingstone - Chairman

N J Dyer

L R Gidley

K E Gilmour

Company secretary

Battens Secretarial Services Limited

Registered office

Mansion House
54-58 Princes Street
Yeovil
Somerset
BA20 1EP

Auditors

Albert Goodman LLP
Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

 

Battens Solicitors Limited

Strategic Report for the Year Ended 30 June 2023

The directors present their strategic report for the year ended 30 June 2023.

Principal activity

The principal activity of the company is the supply of legal services.

Fair review of the business

The company’s business plan is to continue to invest in our people and grow our client base within the South West, with investment being made in our website, branding and online marketing materials to attract new clients as well remaining relevant to our existing clients.

The results for the year show turnover of £8.58M (2022 £8.36M) and profit before tax of £324K (2022 £706K). The business remains committed to providing a full service offering to clients whilst keeping profitability across each sector under review. Projections for turnover for the next financial year are conservative with results expected to be similar to 2023.

The business has been operating flexible and hybrid working for staff since the pandemic and we are committed to continuing this following positive feedback from our clients and employees.

Principal risks and uncertainties

Due to the current economic climate in the UK and high inflation we are seeing that profit margins remain tight, and regular cost reviews are undertaken. The current slowing of the housing market is reflected in our conservative projections for turnover.

The business has good staff retention levels and we will continue to invest in employee wellbeing. With the rising cost of living being a key consideration for a large proportion of the work force we continue to explore options around our overall staff renumeration and incentives as well as what we offer in terms of training and investing in the physical and mental wellbeing of our workforce.

Approved by the Board on 12 February 2024 and signed on its behalf by:


P H Livingstone - Chairman
Director

   
 

Battens Solicitors Limited

Directors' Report for the Year Ended 30 June 2023

The directors present their report and the financial statements for the year ended 30 June 2023.

Directors of the company

The directors who held office during the year were as follows:

C A Stephens - Managing Director

P H Livingstone - Chairman

N J Dyer

L R Gidley

K E Gilmour

Disclosure of information to the auditors

Each director has taken the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Reappointment of auditors

The auditors Albert Goodman LLP are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Financial instruments

Objectives and policies

The company's principal financial instruments are all relatively standard and comprise bank balances, bank loans, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for, and to finance, the company's operations.

Price risk, credit risk, liquidity risk and cash flow risk

Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances the liquidity risk is managed by maintaining a balance generated from the receipt of cash from clients in respect of ongoing matters. Clients are subject to credit control procedures which include regular monitoring and an established collection procedure. In addition, the company has access to bank funding when required, for example for significant projects.

Current loans have both fixed and variable interest rates and the company manages interest and repayment exposure carefully. The company manages its cash flow with the aid of regular forecasting, and trade creditors liquidity risk is managed by ensuring that sufficient funds are available to settle amounts as they fall due.

Future Developments

The future developments of the business are included within the strategic report.

 

Battens Solicitors Limited

Directors' Report for the Year Ended 30 June 2023

Approved by the Board on 12 February 2024 and signed on its behalf by:


P H Livingstone - Chairman
Director

   
 

Battens Solicitors Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

 

Battens Solicitors Limited

Independent Auditor's Report to the Members of Battens Solicitors Limited

Opinion

We have audited the financial statements of Battens Solicitors Limited (the 'company') for the year ended 30 June 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

give a true and fair view of the state of the company's affairs as at 30 June 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 original financial statements were 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.

 

Battens Solicitors Limited

Independent Auditor's Report to the Members of Battens Solicitors Limited

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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.

 

Battens Solicitors Limited

Independent Auditor's Report to the Members of Battens Solicitors Limited

Auditor Responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

The extent to which the audit was considered capable of detecting irregularities including fraud

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:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the legal sector;

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and the Solicitors Regulation Authority requirements

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

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

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

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

performed analytical procedures to identify any unusual or unexpected relationships;

tested journal entries to identify unusual transactions;

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

investigated the rationale behind significant or unusual transactions.

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

 

Battens Solicitors Limited

Independent Auditor's Report to the Members of Battens Solicitors Limited

agreeing financial statement disclosures to underlying supporting documentation;

enquiring of management as to actual and potential litigation and claims; and

reviewing correspondence with HMRC and relevant regulators including the Solicitors Regulation Authority as applicable.

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 for the audit of the financial statements is located on the Financial Reporting Council's website at 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.





Alison Kerr FCA (Senior Statutory Auditor)
For and on behalf of Albert Goodman LLP, Statutory Auditor


Goodwood House
Blackbrook Park Avenue
Taunton
Somerset
TA1 2PX

19 February 2024

 

Battens Solicitors Limited

Profit and Loss Account
for the Year Ended 30 June 2023

Note

2023
 £

2022
 £

Turnover

3

8,554,353

8,361,070

Cost of sales

 

(5,055,504)

(4,629,523)

Gross profit

 

3,498,849

3,731,547

Administrative expenses

 

(3,449,273)

(3,100,605)

Other operating income

31,775

81,714

Operating profit

4

81,351

712,656

Other interest receivable and similar income

6

635,252

33,060

Interest payable and similar charges

7

(392,223)

(39,516)

Profit before tax

 

324,380

706,200

Taxation

11

(84,155)

(152,739)

Profit for the financial year

 

240,225

553,461

The above results were derived from continuing operations.

 

Battens Solicitors Limited

Statement of Comprehensive Income
for the Year Ended 30 June 2023

2023
£

2022
£

Profit for the year

240,225

553,461

Total comprehensive income for the year

240,225

553,461

 

Battens Solicitors Limited

(Registration number: 02948102)
Balance Sheet as at 30 June 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

12

103,660

207,318

Tangible assets

13

155,417

191,240

 

259,077

398,558

Current assets

 

Debtors

14

4,007,314

4,105,678

Cash at bank and in hand

 

1,256,239

1,008,259

 

5,263,553

5,113,937

Creditors: Amounts falling due within one year

16

(1,580,534)

(1,566,685)

Net current assets

 

3,683,019

3,547,252

Total assets less current liabilities

 

3,942,096

3,945,810

Creditors: Amounts falling due after more than one year

16

(232,384)

(365,149)

Provisions for liabilities

17

(61,823)

(58,330)

Net assets

 

3,647,889

3,522,331

Capital and reserves

 

Called up share capital

100,000

100,000

Capital redemption reserve

160,015

160,015

Retained earnings

3,387,874

3,262,316

Shareholders' funds

 

3,647,889

3,522,331

Approved and authorised by the Board on 12 February 2024 and signed on its behalf by:
 


C A Stephens - Managing Director
Director


P H Livingstone - Chairman
Director

 
 

Battens Solicitors Limited

Statement of Changes in Equity
for the Year Ended 30 June 2023

Ordinary share capital
£

Capital redemption reserve
£

Profit and loss reserve
£

Total
£

At 1 July 2022

100,000

160,015

3,262,316

3,522,331

Movement in year :

Profit for the year

-

-

240,225

240,225

Total comprehensive income

-

-

240,225

240,225

Dividends

-

-

(114,667)

(114,667)

Total movement for the year

-

-

125,558

125,558

At 30 June 2023

100,000

160,015

3,387,874

3,647,889

Ordinary share capital
£

Capital redemption reserve
£

Profit and loss reserve
£

Total
£

At 1 July 2021

100,000

160,015

2,883,855

3,143,870

Movement in year :

Profit for the year

-

-

553,461

553,461

Total comprehensive income

-

-

553,461

553,461

Dividends

-

-

(175,000)

(175,000)

Total movement for the year

-

-

378,461

378,461

At 30 June 2022

100,000

160,015

3,262,316

3,522,331

 

Battens Solicitors Limited

Statement of Cash Flows
for the Year Ended 30 June 2023

Note

2023
 £

2022
 £

Cash flows from operating activities

Profit for the year

 

240,225

553,461

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

187,743

223,358

Finance income

6

(635,252)

(33,060)

Finance costs

7

392,223

39,516

Income tax expense

11

84,155

152,739

 

269,094

936,014

Working capital adjustments

 

Decrease/(increase) in trade and other debtors

14

98,364

(519,902)

Increase/(decrease) in trade and other creditors

16

81,523

(305,927)

Increase/(decrease) in provisions

17

18,000

(45,000)

Cash generated from operations

 

466,981

65,185

Income taxes paid

11

(146,048)

(218,518)

Net cash flow from operating activities

 

320,933

(153,333)

Cash flows from investing activities

 

Interest received

6

635,252

33,060

Acquisitions of tangible assets

(48,261)

(52,015)

Net cash flows from investing activities

 

586,991

(18,955)

Cash flows from financing activities

 

Interest paid

7

(392,223)

(39,516)

Proceeds from bank borrowing draw downs

 

807,889

440,000

Repayment of bank borrowing

 

(960,705)

(430,868)

Payments to finance lease creditors

 

(238)

(22,699)

Dividends paid

19

(114,667)

(175,000)

Net cash flows from financing activities

 

(659,944)

(228,083)

Net increase/(decrease) in cash and cash equivalents

 

247,980

(400,371)

Cash and cash equivalents at 1 July 2022

 

1,008,259

1,408,630

Cash and cash equivalents at 30 June 2023

15

1,256,239

1,008,259

 

Battens Solicitors Limited

Notes to the Financial Statements
for the Year Ended 30 June 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Mansion House
54-58 Princes Street
Yeovil
Somerset
BA20 1EP

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

Turnover recognition

Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargable to clients, including expenses and disbursements but excluding value added tax.

Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors.

Fee income that is contingent on events outside the control of the firm is recognised when the contingent event occurs, with corresponding work in progress recognised in the balance sheet at the lower of cost and net realisable value until that point.

Government grants

Government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other income in the profit and loss and timing differences presented as other debtors or deferred income within the balance sheet.

 

Battens Solicitors Limited

Notes to the Financial Statements
for the Year Ended 30 June 2023

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Leasehold improvements

Equal annual instalments over length of the lease

Fixtures, fittings and equipment

3 - 15 years straight line

Motor vehicles

5 years straight line

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life.

Asset class

Amortisation method and rate

Goodwill

Straight line over 10 years

 

Battens Solicitors Limited

Notes to the Financial Statements
for the Year Ended 30 June 2023

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from clients for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the receivables.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Reserves

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss account includes all current and prior period profits and losses.

Capital redemption reserve records the nominal value of shares repurchased by the company.

Provisions

Provisions are recognised when the company has an obligation at the reporting date 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.

Dividends

Dividend distribution to the company's shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

 

Battens Solicitors Limited

Notes to the Financial Statements
for the Year Ended 30 June 2023

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease. Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the Company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

3

Turnover

The entirety of the company's turnover for the year has been generated from the provision of legal services.

4

Operating profit

Arrived at after charging/(crediting):

2023
 £

2022
 £

Depreciation expense

84,085

119,700

Amortisation expense

103,658

103,658

 

Battens Solicitors Limited

Notes to the Financial Statements
for the Year Ended 30 June 2023

5

Government grants

Government grants received in the period consist of £Nil (2022 - £6,096) in respect of claims under the Coronavirus Job Retention Scheme (CJRS) and £Nil (2022 - £9,033) relating to interest paid by the Government in respect of the CBILS loan.

The amount of grants recognised in the financial statements was £Nil (2022 - £15,102).

6

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

635,252

33,060

7

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

38,120

35,889

Interest expense paid to clients

353,959

2,572

Other interest paid

-

1,055

Foreign exchange gains

144

-

392,223

39,516

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

5,326,867

5,035,968

Social security costs

518,703

476,831

Pension costs, defined contribution scheme

396,277

268,291

Other employee expense

110,213

83,862

6,352,060

5,864,952

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Director

5

5

Fee Earner (Non Director)

62

62

Direct Support

52

50

Practice Support

31

30

150

147

 

Battens Solicitors Limited

Notes to the Financial Statements
for the Year Ended 30 June 2023

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

480,104

541,922

Contributions paid to money purchase schemes

216,416

81,921

696,520

623,843

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

5

5

In respect of the highest paid director:

2023
£

2022
£

Remuneration

156,767

135,704

10

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

14,250

14,250


 

 

Battens Solicitors Limited

Notes to the Financial Statements
for the Year Ended 30 June 2023

11

Taxation

Tax charged/(credited) in the profit and loss account:

2023
 £

2022
 £

Current taxation

UK corporation tax

98,662

146,103

Deferred taxation

Arising from origination and reversal of timing differences

(14,507)

6,636

Tax expense in the profit and loss account

84,155

152,739

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 20.5% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

324,380

706,200

Corporation tax at standard rate

66,498

134,178

Effect of expense not deductible in determining taxable profit (tax loss)

20,639

22,527

Deferred tax expense relating to changes in tax rates or laws

-

2,096

Tax decrease from other short-term timing differences

(2,982)

(6,062)

Total tax charge

84,155

152,739

 

Battens Solicitors Limited

Notes to the Financial Statements
for the Year Ended 30 June 2023

12

Intangible assets

Goodwill
 £

Total
£

Cost or valuation

At 1 July 2022

1,812,630

1,812,630

At 30 June 2023

1,812,630

1,812,630

Amortisation

At 1 July 2022

1,605,312

1,605,312

Amortisation charge

103,658

103,658

At 30 June 2023

1,708,970

1,708,970

Carrying amount

At 30 June 2023

103,660

103,660

At 30 June 2022

207,318

207,318

Amortisation of goodwill is included within administrative costs in the profit and loss account.

13

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 July 2022

457,032

677,776

17,723

1,152,531

Additions

-

48,261

-

48,261

At 30 June 2023

457,032

726,037

17,723

1,200,792

Depreciation

At 1 July 2022

423,153

523,960

14,178

961,291

Charge for the year

3,396

77,143

3,545

84,084

At 30 June 2023

426,549

601,103

17,723

1,045,375

Carrying amount

At 30 June 2023

30,483

124,934

-

155,417

At 30 June 2022

33,879

153,816

3,545

191,240

Included within the net book value of land and buildings above is £30,483 (2022 - £33,879) in respect of short leasehold land and buildings.
 

 

Battens Solicitors Limited

Notes to the Financial Statements
for the Year Ended 30 June 2023

14

Debtors

Current

2023
£

2022
£

Trade debtors

1,160,577

1,128,338

Prepayments

473,721

403,043

Amounts due for services performed not yet invoiced

2,373,016

2,574,297

 

4,007,314

4,105,678

15

Cash and cash equivalents

2023
£

2022
£

Cash on hand

669

594

Cash at bank

1,255,570

1,007,665

1,256,239

1,008,259

16

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

18

575,506

595,794

Trade creditors

 

64,693

129,419

Social security and other taxes

 

588,784

548,362

Other creditors

 

252,889

147,062

Corporation tax

11

98,662

146,048

 

1,580,534

1,566,685

Due after one year

 

Loans and borrowings

18

232,384

365,149

 

Battens Solicitors Limited

Notes to the Financial Statements
for the Year Ended 30 June 2023

17

Provisions for liabilities

Deferred tax
£

Other provisions
£

Total
£

At 1 July 2022

14,507

43,823

58,330

Additional provisions

-

18,000

18,000

Increase (decrease) in existing provisions

(14,507)

-

(14,507)

At 30 June 2023

-

61,823

61,823

Deferred tax

Deferred tax assets and liabilities:

2023

Asset
£

Liability
£

Accelerated capital allowances

-

26,934

Other timing differences

26,934

-

26,934

26,934

2022

Asset
£

Liability
£

Accelerated capital allowances

-

35,050

Other timing differences

20,543

-

20,543

35,050

18

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

575,506

595,556

Hire purchase contracts

-

238

575,506

595,794

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

232,384

365,149

 

Battens Solicitors Limited

Notes to the Financial Statements
for the Year Ended 30 June 2023

Bank borrowings

A bank loan attracting a fixed rate of interest is denominated in £ with a nominal interest rate of 6.2%, and the final instalment is due on 30 October 2025. The carrying amount at year end is £388,889 (2022 - £Nil).

The borrowings above are secured by way of a fixed and floating charge over all assets of the company.

A bank loan attracting a fixed rate of interest is denominated in £ with a nominal interest rate of 5.94%, and the final instalment is due on 30 April 2023. The carrying amount at year end is £109,544 (2022 - £Nil).

A bank loan attracting a fixed rate of interest is denominated in £ with a nominal interest rate of 6.58%, and the final instalment is due on 31 March 2024. The carrying amount at year end is £309,457 (2022 - £Nil).

In addition, two loans with carrying values of £520,705 and £440,000 respectively at the end of the prior period were repaid in full during the year.

Finance lease liabilities

Hire purchase and finance lease agreements total £Nil (2022 - £238). Repayment is by instalments and the final instalment was due in August 2022.

19

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £1.83 (2022 - £1.25) per each Ordinary A share

 

36,667

 

25,000

Interim dividend of £2.00 (2022 - £2.50) per each Ordinary B share

 

40,000

 

50,000

Interim dividend of £0.62 (2022 - £2.50) per each Ordinary C share

 

12,333

 

50,000

Interim dividend of £1.28 (2022 - £2.50) per each Ordinary D share

 

25,667

 

50,000

   

114,667

 

175,000

20

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total of future minimum lease payments is as follows: not later than one year £159,267 (2022 - £Nil); later than one year and not later than five years £528,900 (2022 - £Nil); later than five years £885,950 (2022 - £Nil).

 

Battens Solicitors Limited

Notes to the Financial Statements
for the Year Ended 30 June 2023

21

Contingent liabilities

The company has considered the requirements for a dilapidations provision on its offices in line with the various lease agreements and the requirements of FRS102 and a provision is included in these accounts. For one of the offices, an exit date is anticipated. The directors are aware that the landlords may well wish to change the use of the building and if this is successful, the directors are of the opinion that any amount payable will not be materially different from the current provision in respect of this building. Taking into account the nature and location of the building, the directors are of the view that this is the most likely outcome. If however, permission for a change of use is not obtained, then dilapidations may be due. No realistic quantification of this has been completed due to the cost involved of obtaining an estimate for an outcome considered to be unlikely.

22

Related party transactions

Other transactions with directors

The directors provided personal guarantees for £40,000 each on the company's bank borrowings.

23

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £396,277 (2022 - £268,291).

Contributions totalling £74,674 (2022 - £44,831) were payable to the scheme at the end of the year and are included in creditors.