Company No:
Contents
Note | 2023 | 2022 | ||
£ | £ | |||
Restated - note 2 | ||||
Fixed assets | ||||
Intangible assets | 4 |
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Tangible assets | 5 |
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Investments | 6 |
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247,800 | 287,145 | |||
Current assets | ||||
Stocks |
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Debtors | 7 |
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Cash at bank and in hand |
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759,918 | 753,996 | |||
Creditors: amounts falling due within one year | 8 | (
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Net current assets | 222,971 | 251,418 | ||
Total assets less current liabilities | 470,771 | 538,563 | ||
Creditors: amounts falling due after more than one year | 9 | (
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Provision for liabilities | 10 | (
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Net assets |
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Capital and reserves | ||||
Called-up share capital | 12 |
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Share premium account |
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Profit and loss account |
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Total shareholders' funds |
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Directors' responsibilities:
The financial statements of Tom French & Associates Limited (registered number:
Christopher Grant Glazier
Director |
The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.
Tom French & Associates Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Prudence House Langage Business Park, Plympton, Plymouth, PL7 5JX, United Kingdom.
The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.
Revenue recognition: See below under turnover.
Revenue recognition: During the year the Company has adopted the policy of recognising renewals and trail income, where performance obligations have already been met, but where the related income has been received post year end. The total amount of this income stream has been estimated based on historic data. Related amounts of commission due to the Company's Financial Advisers based on this accrued income is also calculated and included in cost of sales accruals.
Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Statement of Income and Retained Earnings in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Statement of Financial Position.
Finance costs are charged to the Statement of Income and Retained Earnings over the term of the debt using the effective interest method so the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Statement of Financial Position date.
Deferred tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the average tax rates that are expected to apply when the timing differences reverse, based on current tax rates and laws. Deferred tax assets and liabilities are not discounted.
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.
Goodwill |
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Website costs |
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All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Vehicles |
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Office equipment |
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Computer equipment |
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Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the Statement of Income and Retained Earnings over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term.
Assets, other than those measured at fair value, are assessed for indicators of impairment at each Statement of Financial Position date. If there is objective evidence of impairment, an impairment loss is recognised in the Statement of Income and Retained Earnings as described below.
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Statement of Financial Position date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.
The Company entered into two contracts to purchase client portfolio's from self-employed advisers for a fixed sum over a period of 4 years. One contract commenced in 2021 and the other in 2022. The total value of these two contracts is £315,000. Payments under these contracts, of £109,375, had been expensed as cost of sales, rather than the entire contract value being capitalised as an intangible asset and the recognition of the related creditor. The amounts previously expensed to the profit and loss account have been reversed and the intangible asset has been recognised.
The corporation tax position has been updated to reflect the fact that the payments were allowed as a deduction from taxable profits, when in fact they were not eligible for deduction. Amortisation of £52,500 has been provided on the intangible asset, which was not previously recognised.
Interest has been calculated and posted in respect of the late payment of corporation tax for the period.
The Company has changed it's accounting policy in respect of accounting for renewals and trail income. Previously this was recognised on receipt. The Company policy is now to recognise trail income where performance of service has taken place but receipt of funds is in arrears. Trail income of £156,806 has been recognised as accrued income, with an associated cost of sale of £103,951 commissions due to the Company Financial Advisers.
As previously reported | Adjustment | As restated | ||||
Year ended 31 December 2022 | £ | £ | £ | |||
Intangible assets - cost (SoFP) | 11,250 | 315,000 | 326,250 | |||
Goodwill - amortisation (SoFP) | 0 | 52,500 | 52,500 | |||
Other debtors (SoFP) | 1,112 | 67,500 | 68,612 | |||
Prepayments and accrued income (SoFP) | 61,880 | 156,806 | 218,686 | |||
Other creditors due within one year (SoFP) | 0 | 132,750 | 132,750 | |||
Accruals (SoFP) | 8,643 | 103,950 | 112,593 | |||
Creditors - Corporation tax (SoFP) | 0 | 22,212 | 22,212 | |||
Other creditors due in more than one year (SoFP) | 32,000 | 140,375 | 172,375 | |||
Turnover (SoIRE) | 3,523,097 | (3,543) | 3,519,554 | |||
Cost of sales (SoIRE) | 2,302,679 | (73,811) | 2,228,868 | |||
Administrative expenses - Amortisation (SoIRE) | 0 | 31,500 | 31,500 | |||
Interest payable and similar expenses - Other interest payable (SoIRE) | 13,499 | 248 | 13,747 | |||
Corporation tax (SoIRE) | (5,453) | 8,104 | 2,651 |
2023 | 2022 | ||
Number | Number | ||
Monthly average number of persons employed by the Company during the year, including directors |
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Goodwill | Website costs | Total | |||
£ | £ | £ | |||
Cost | |||||
At 01 January 2023 |
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At 31 December 2023 |
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Accumulated amortisation | |||||
At 01 January 2023 |
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Charge for the financial year |
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At 31 December 2023 |
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Net book value | |||||
At 31 December 2023 |
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At 31 December 2022 |
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Vehicles | Office equipment | Computer equipment | Total | ||||
£ | £ | £ | £ | ||||
Cost | |||||||
At 01 January 2023 |
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At 31 December 2023 |
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Accumulated depreciation | |||||||
At 01 January 2023 |
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Charge for the financial year |
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At 31 December 2023 |
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Net book value | |||||||
At 31 December 2023 |
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At 31 December 2022 |
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Other investments | Total | ||
£ | £ | ||
Cost or valuation before impairment | |||
At 01 January 2023 |
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At 31 December 2023 |
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Carrying value at 31 December 2023 |
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Carrying value at 31 December 2022 |
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2023 | 2022 | ||
£ | £ | ||
Trade debtors |
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Prepayments and accrued income |
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Deferred tax asset |
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Corporation tax |
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Other debtors |
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2023 | 2022 | ||
£ | £ | ||
Trade creditors |
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Accruals |
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Corporation tax |
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Other taxation and social security |
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Obligations under finance leases and hire purchase contracts |
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Other creditors |
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2023 | 2022 | ||
£ | £ | ||
Other creditors |
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2023 | 2022 | ||
£ | £ | ||
Other provisions |
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Clawback provision:
The provision of £10,000 (2022: £20,000) represents an expected level of clawbacks of commissions received on "indemnity" terms whereby commission amounts are repayable if policies are cancelled subsequent to their sale. The provision is estimated based on historic data, the number of clawbacks, the emergence period of the clawback and the amount of clawback within a 4 year period of the indemnity policy being written.
Claims provision:
A provision of £10,000 (2022: Nil) represents specific customer services cost claims and is calculated in reference to the excess on the Professional Indemnity Insurance policy in respect of two potential claims.
2023 | 2022 | ||
£ | £ | ||
At the beginning of financial year |
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Credited to the Statement of Income and Retained Earnings |
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At the end of financial year |
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2023 | 2022 | ||
£ | £ | ||
Allotted, called-up and fully-paid | |||
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Commitments
Total future minimum lease payments under non-cancellable operating leases are as follows:
2023 | 2022 | ||
£ | £ | ||
within one year |
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between one and five years |
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after five years |
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Pensions
The Company operates a defined contribution pension scheme for the directors and employees. The assets of the scheme are held separately from those of the Company in an independently administered fund. There were no outstanding contributions due at the year end (2022: £nil).
Transactions with the entity's directors
At the year end, the Company owed a director £32,000 (2022: £32,000) which is a subordinated loan due in greater than one year.