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COMPANY REGISTRATION NUMBER: 09511883
Planhappy Investment Management Ltd
Financial Statements
31 December 2023
Planhappy Investment Management Ltd
Financial Statements
Year ended 31 December 2023
Contents
Page
Officers and professional advisers
1
Strategic report
2
Director's report
4
Independent auditor's report to the members
6
Profit and loss account
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14
Planhappy Investment Management Ltd
Officers and Professional Advisers
Director
N Parker
Registered office
The Planning Rooms
Wellington Court
Preston Farm Business Park
Stockton-On-Tees
TS18 3TA
Auditor
Chipchase Manners
Chartered accountants & statutory auditor
384 Linthorpe Road
Middlesbrough
TS5 6HA
Planhappy Investment Management Ltd
Strategic Report
Year ended 31 December 2023
Overview
The directors present their strategic report for the year ended 31 December 2023. Planhappy Investment Management Limited is a small BIPRU firm authorised by the FCA.
Review of the business
During the year the business provided financial services and advice to its client base. The key financial performance indicators during the year are shown in the table below:
2023 2022
£ £
Turnover 3,535,166 3,824,425
Profit after tax 881,668 925,732
Net assets 429,927 452,879
Revenue has reduced in the year, and profit after tax has reduced also. This was partially due to more stock market fluctuation and lower client base growth than anticipated. The net asset position has slightly reduced from the previous year. The business continues to plan for growth of revenue income in future periods.
Principal risks and uncertainties
Competitive risks: The current client base, to whom we provide discretional investment management services, are mainly based in the North East of England. There are several other investment firms providing similar services in the same geographical area. In order to remain competitive, maintain existing clients and attract new clients, the company ensures that it provides excellent service with regular communication and updates, presenting fair changes in a transparent and understandable way in order to build good long-term client relationships. Legal and regulatory risks: The company is regulated by the Financial Conduct Authority (FCA) and ensures compliance with all rules and regulations prescribed. As part of those regulations, various capital adequacy ratios that the company are subject to are reviewed on a regular basis. External professional consultants are used where appropriate to ensure compliance. Changes in regulations have the ability to impact on the services provided to the client base, but equally, they can offer opportunities that can be taken advantage of. Financial instrument risk: The main income is from the discretionary investment management and ongoing financial advice. The firm does not hold client monies.
This report was approved by the board of directors on 17 April 2024 and signed on behalf of the board by:
N Parker
Director
Registered office:
The Planning Rooms
Wellington Court
Preston Farm Business Park
Stockton-On-Tees
TS18 3TA
Planhappy Investment Management Ltd
Director's Report
Year ended 31 December 2023
The director presents his report and the financial statements of the company for the year ended 31 December 2023 .
Director
The director who served the company during the year was as follows:
N Parker
Dividends
The total dividends paid for the year were £904,620 (2022: £895,621).
Future developments
Information included in the strategic report.
Financial instruments
Information included in the strategic report.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The director is 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. He is 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 17 April 2024 and signed on behalf of the board by:
N Parker
Director
Registered office:
The Planning Rooms
Wellington Court
Preston Farm Business Park
Stockton-On-Tees
TS18 3TA
Planhappy Investment Management Ltd
Independent Auditor's Report to the Members of Planhappy Investment Management Ltd
Year ended 31 December 2023
Opinion
We have audited the financial statements of Planhappy Investment Management Ltd (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, balance sheet, statement of changes in equity, statement of cash flows and the related notes, 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 FRS 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 31 December 2023 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director 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 director is responsible for the other information. 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.
Opinions on other matters 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 the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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: - 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 director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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. 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 objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud or error. It is also our objective to obtain sufficient appropriate audit evidence regarding the risks we have assessed and respond as appropriate to them. Even though an audit is planned and performed in accordance with the ISAs (UK), an audit has an unavoidable risk that material misstatements in the financial statements may not be detected. In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud, our audit procedures included the following: - We obtained an understanding of the legal and regulatory frameworks applicable to the company and the environment in which they operate. - We obtained an understanding of how the company ensures their compliance with the applicable legal and regulatory frameworks through inquiries to the management and those charged with ensuring such compliance within the company. We corroborated our inquiries through a review of transactions within the financial statements that were linked to compliance with laws and regulations. We also reviewed any available board minutes. - We assessed the susceptibility of the company's financial statements to material misstatement with regards to how fraud might occur. Audit procedures performed by the team included: - Identifying and assessing the effectiveness of controls the management of the company has in place to detect and prevent possible fraud; - Understanding how those involved with ensuring compliance considered and addressed the potential override of controls or undue influence over the financial reports; - Challenging any major assumptions and judgements that the management used in any significant accounting estimates; - Reviewing journal entries made with emphasis placed on those with unusual combinations and those around the accounting year end: and - Assessing the extent of compliance with applicable laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Martin Firth BA(Hons) FCA
(Senior Statutory Auditor)
For and on behalf of
Chipchase Manners
Chartered accountants & statutory auditor
384 Linthorpe Road
Middlesbrough
TS5 6HA
17 April 2024
Planhappy Investment Management Ltd
Profit and Loss Account
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
3,535,166
3,824,425
Cost of sales
( 903)
( 9,620)
------------
------------
Gross profit
3,534,263
3,814,805
Administrative expenses
( 2,654,496)
( 2,710,119)
Other operating income
5
249,832
75,027
------------
------------
Operating profit
6
1,129,599
1,179,713
Gain/(loss) on financial assets at fair value through profit or loss
23,634
( 10,585)
Other interest receivable and similar income
10
3,479
158
Interest payable and similar expenses
11
( 9,569)
( 15,640)
------------
------------
Profit before taxation
1,147,143
1,153,646
Tax on profit
12
( 265,475)
( 227,914)
------------
------------
Profit for the financial year and total comprehensive income
881,668
925,732
------------
------------
All the activities of the company are from continuing operations.
Planhappy Investment Management Ltd
Balance Sheet
31 December 2023
2023
2022
Note
£
£
Fixed assets
Tangible assets
14
29,605
24,695
Investments
15
251,057
196,018
---------
---------
280,662
220,713
Current assets
Debtors
16
803,976
616,555
Cash at bank and in hand
68,959
252,696
---------
---------
872,935
869,251
Creditors: amounts falling due within one year
17
( 700,688)
( 602,411)
---------
---------
Net current assets
172,247
266,840
---------
---------
Total assets less current liabilities
452,909
487,553
Creditors: amounts falling due after more than one year
18
( 15,581)
( 25,801)
Provisions
19
( 7,401)
( 8,873)
---------
---------
Net assets
429,927
452,879
---------
---------
Capital and reserves
Called up share capital
23
100
100
Investment fair value reserve
24
37,098
13,464
Profit and loss account
24
392,729
439,315
---------
---------
Shareholders funds
429,927
452,879
---------
---------
These financial statements were approved by the board of directors and authorised for issue on 17 April 2024 , and are signed on behalf of the board by:
N Parker
Director
Company registration number: 09511883
Planhappy Investment Management Ltd
Statement of Changes in Equity
Year ended 31 December 2023
Called up share capital
Investment fair value reserve
Profit and loss account
Total
£
£
£
£
At 1 January 2022
100
28,537
394,131
422,768
Profit for the year
925,732
925,732
Other comprehensive income for the year:
Transfer between fair value and profit and loss reserves
( 15,073)
15,073
----
--------
---------
---------
Total comprehensive income for the year
( 15,073)
940,805
925,732
Dividends paid and payable
13
( 895,621)
( 895,621)
----
--------
---------
---------
Total investments by and distributions to owners
( 895,621)
( 895,621)
At 31 December 2022
100
13,464
439,315
452,879
Profit for the year
881,668
881,668
Other comprehensive income for the year:
Transfer between fair value and profit and loss reserves
23,634
( 23,634)
----
--------
---------
---------
Total comprehensive income for the year
23,634
858,034
881,668
Dividends paid and payable
13
( 904,620)
( 904,620)
----
----
---------
---------
Total investments by and distributions to owners
( 904,620)
( 904,620)
----
--------
---------
---------
At 31 December 2023
100
37,098
392,729
429,927
----
--------
---------
---------
Planhappy Investment Management Ltd
Statement of Cash Flows
Year ended 31 December 2023
2023
2022
£
£
Cash flows from operating activities
Profit for the financial year
881,668
925,732
Adjustments for:
Depreciation of tangible assets
11,200
4,444
(Gain)/loss on financial assets at fair value through profit or loss
(23,634)
10,585
Other interest receivable and similar income
( 3,479)
( 158)
Interest payable and similar expenses
9,569
15,640
Loss on disposal of tangible assets
885
Tax on profit
265,475
227,914
Accrued expenses/(income)
108,731
( 29,728)
Changes in:
Trade and other debtors
( 195,524)
38,427
Trade and other creditors
( 9,577)
( 14,976)
------------
------------
Cash generated from operations
1,045,314
1,177,880
Interest paid
( 9,569)
( 15,640)
Interest received
3,479
158
Tax paid
( 219,460)
( 222,893)
------------
------------
Net cash from operating activities
819,764
939,505
------------
------------
Cash flows from investing activities
Purchase of tangible assets
( 23,469)
( 24,158)
Proceeds from sale of tangible assets
6,474
Purchases of other investments
( 31,405)
( 35,248)
------------
------------
Net cash used in investing activities
( 48,400)
( 59,406)
------------
------------
Cash flows from financing activities
Proceeds from borrowings
( 9,870)
( 9,626)
Proceeds from loans from group undertakings
( 40,611)
( 38,530)
Dividends paid
( 904,620)
( 895,621)
------------
------------
Net cash used in financing activities
( 955,101)
( 943,777)
------------
------------
Net decrease in cash and cash equivalents
( 183,737)
( 63,678)
Cash and cash equivalents at beginning of year
252,696
316,374
---------
---------
Cash and cash equivalents at end of year
68,959
252,696
---------
---------
Planhappy Investment Management Ltd
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is The Planning Rooms, Wellington Court, Preston Farm Business Park, Stockton-On-Tees, TS18 3TA.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Significant judgements The judgements (apart from those involving estimations) that management has made in the process of applying the entity's accounting policies and that have the most significant effect on the amounts recognised in the financial statements are as follows: Work in progress and accrued income is calculated based on services completed that is not billed until after the year end. It is calculated based on applying an estimated revenue percentage to the values of premiums. Estimation and judgement is required by the directors when considering the bad debt provision, if any, that is required at the year end.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for services rendered, stated net of discounts and of Value Added Tax. Turnover is recognised in the month in which investment and financial advice services are provided to customers. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings
-
25% straight line
Equipment
-
25% straight line
Investments
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the balance sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
The company uses only basic financial instruments that are recognised at amortised cost with changes recognised in the profit and loss account.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Rendering of services
3,535,166
3,824,425
------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2023
2022
£
£
Management charges receivable
249,832
75,027
---------
--------
6. Operating profit
Operating profit or loss is stated after charging/crediting:
2023
2022
£
£
Depreciation of tangible assets
11,200
4,444
Loss on disposal of tangible assets
885
Impairment of trade debtors
(7,940)
Foreign exchange differences
2
--------
-------
7. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
6,500
9,900
-------
-------
8. Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
2023
2022
No.
No.
Administrative staff
37
22
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
1,105,122
1,303,730
Social security costs
105,809
76,998
Other pension costs
117,872
80,843
------------
------------
1,328,803
1,461,571
------------
------------
9. Director's remuneration
The director's aggregate remuneration in respect of qualifying services was:
2023
2022
£
£
Remuneration
8,000
8,000
Company contributions to defined contribution pension plans
4,000
--------
-------
12,000
8,000
--------
-------
10. Other interest receivable and similar income
2023
2022
£
£
Interest on cash and cash equivalents
3,479
158
-------
----
11. Interest payable and similar expenses
2023
2022
£
£
Interest on banks loans and overdrafts
4,684
15,640
Other interest payable and similar charges
4,885
-------
--------
9,569
15,640
-------
--------
12. Tax on profit
Major components of tax expense
2023
2022
£
£
Current tax:
UK current tax expense
266,947
219,460
Adjustments in respect of prior periods
( 319)
---------
---------
Total current tax
266,947
219,141
---------
---------
Deferred tax:
Origination and reversal of timing differences
( 1,472)
8,773
---------
---------
Tax on profit
265,475
227,914
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2022: higher than) the standard rate of corporation tax in the UK of 23.50 % (2022: 19 %).
2023
2022
£
£
Profit on ordinary activities before taxation
1,147,143
1,153,646
------------
------------
Profit on ordinary activities by rate of tax
269,584
219,193
Adjustment to tax charge in respect of prior periods
( 319)
Effect of expenses not deductible for tax purposes
4,210
2,866
Effect of capital allowances and depreciation
( 1,293)
1,686
Effect of revenue exempt from tax
( 5,554)
Deferred tax movement
( 1,472)
4,488
------------
------------
Tax on profit
265,475
227,914
------------
------------
13. Dividends
2023
2022
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
904,620
895,621
---------
---------
14. Tangible assets
Fixtures and fittings
Equipment
Total
£
£
£
Cost
At 1 January 2023
15,335
18,948
34,283
Additions
12,563
10,906
23,469
Disposals
( 8,914)
( 8,914)
--------
--------
--------
At 31 December 2023
27,898
20,940
48,838
--------
--------
--------
Depreciation
At 1 January 2023
6,978
2,610
9,588
Charge for the year
4,576
6,624
11,200
Disposals
( 1,555)
( 1,555)
--------
--------
--------
At 31 December 2023
11,554
7,679
19,233
--------
--------
--------
Carrying amount
At 31 December 2023
16,344
13,261
29,605
--------
--------
--------
At 31 December 2022
8,357
16,338
24,695
--------
--------
--------
15. Investments
Listed investments
£
Cost
At 1 January 2023
196,018
Additions
31,405
Revaluations
23,634
---------
At 31 December 2023
251,057
---------
Impairment
At 1 January 2023 and 31 December 2023
---------
Carrying amount
At 31 December 2023
251,057
---------
At 31 December 2022
196,018
---------
16. Debtors
2023
2022
£
£
Trade debtors
108,902
59,607
Amounts owed by connected parties
134,274
Prepayments and accrued income
560,800
556,948
---------
---------
803,976
616,555
---------
---------
17. Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans and overdrafts
10,199
9,849
Trade creditors
7,151
4,841
Amounts owed to connected parties
101,316
141,927
Accruals and deferred income
120,861
20,233
Corporation tax
266,947
219,460
Social security and other taxes
45,413
62,977
Other creditors
148,801
143,124
---------
---------
700,688
602,411
---------
---------
18. Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
15,581
25,801
--------
--------
The repayment term of the bank loan is 6 years. The bank loan was interest free for its first 12 months and then charged at 2.5%.
19. Provisions
Deferred tax (note 20)
£
At 1 January 2023
8,873
Unused amounts reversed
( 1,472)
-------
At 31 December 2023
7,401
-------
20. Deferred tax
The deferred tax included in the balance sheet is as follows:
2023
2022
£
£
Included in provisions (note 19)
7,401
8,873
-------
-------
The deferred tax account consists of the tax effect of timing differences in respect of:
2023
2022
£
£
Accelerated capital allowances
7,401
8,873
-------
-------
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 117,872 (2022: £ 80,843 ).
22. Financial instruments
There are no financial instruments that are non-basic in nature.
23. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
24. Reserves
Fair value reserve - This reserve records the value of investment revaluations and fair value movements on assets recognised in other comprehensive income. Profit and loss account - This reserve records retained earnings and accumulated losses.
25. Pillar 3 disclosures
The Board conducts an internal capital adequacy assessment process (ICAAP) at least annually and maintains capital to cover the primary capital test, which amounts to the fixed overheads test, and for specified risks under Pillar 2 that are identified via the ICAAP. Risk weights for relevant exposures are calculated under the standardised approach to credit risk.
Remuneration policy is determined annually by the Board. Key employees are salaries and there is no direct link between pay and performance. Staff are not specifically incentivised. Aggregate remuneration in the period to 31 December 2023, excluding subcontracted services, was £1,097,122 (2022: £845,098), all of which is attributed to servicing financial advice and investment management activity.
26. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
252,696
(183,737)
68,959
Debt due within one year
(151,776)
40,261
(111,515)
Debt due after one year
(25,801)
10,220
(15,581)
---------
---------
---------
75,119
( 133,256)
( 58,137)
---------
---------
---------
27. Director's advances, credits and guarantees
There have been no directors advances, credits or guarantees in the year.
Planhappy Investment Management Ltd
Notes to the Financial Statements (continued)
Year ended 31 December 2023
28. Related party transactions
The company has a related party company named Planhappy Limited. The companies share the same shareholder and director. The company had sales in the year totalling £227,560, and purchases in the year totalling £435,811 with this related party. The balance due from this company at the year end was £117,816. The company has a related party company named Joslin Rhodes Lifestyle Financial Planning Limited. The companies share the same shareholder and director. The company had sales in the year totalling £92,063 and purchases in the year totalling £426,575 with this related party. The balance due to this company at the year end was £101,316. The company has a related party company named High Grange Holdings Limited. The companies share the same shareholder and director. The company had sales in the year totalling £18,900 and purchases in the year totalling £115,292 with this related party. The balance due from this company at the year end was £16,459. The related party transactions were for management charges, recharges for general costs, licence fees and rent. All transactions were undertaken under normal commercial terms on an arms-length basis.