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Registration number: 06243291

Prepared for the registrar

Wixted & Co Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 October 2023

 

Wixted & Co Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Unaudited Financial Statements

3 to 10

 

Wixted & Co Limited

Company Information

Director

T P Wixted

Company secretary

J C Green

Registered office

57 Putney Bridge Road
Putney
London
SW18 1NP

Bankers

National Westminster Bank Plc
135 Bishopsgate
London
EC2M 3UR

Accountants

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Wixted & Co Limited

(Registration number: 06243291)
Balance Sheet as at 31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

5

200,000

250,000

Tangible assets

6

18,658

41,932

 

218,658

291,932

Current assets

 

Debtors

7

2,499,534

1,953,831

Cash at bank and in hand

 

223,886

356

 

2,723,420

1,954,187

Creditors: Amounts falling due within one year

8

(1,539,472)

(1,678,814)

Net current assets

 

1,183,948

275,373

Total assets less current liabilities

 

1,402,606

567,305

Creditors: Amounts falling due after more than one year

8

(23,519)

(39,694)

Net assets

 

1,379,087

527,611

Capital and reserves

 

Called up share capital

225

198

Capital redemption reserve

10

10

Profit and loss account

1,378,852

527,403

Shareholders' funds

 

1,379,087

527,611

For the financial year ending 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the director on 30 July 2024
 


T P Wixted
Director

 

Wixted & Co Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 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:
57 Putney Bridge Road
Putney
London
SW18 1NP

 

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 '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 for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

No significant judgements have been made by management in preparing these financial statements.

 

Wixted & Co Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Key sources of estimation uncertainty

Bad debt provision - due to the nature of the business, there are high levels of trade receivables at the year end, and therefore a risk that some of these balances may be irrecoverable. A bad debt review is carried out at the year end where debts are assessed and provided against when the recoverability of these balances is considered uncertain. The carrying amount is £120,123 (2022 - £359,542).

Amounts recoverable on contracts (AROC) - the process of assessing AROC requires various estimates and judgements to be made. Fee earners are required to record time spent on client assignments and this is used as the basis for the AROC estimate. The fee earners review their work in progress balances regularly to identify likely irrecoverable amounts. Recovery rates are then applied to the balances according to work type. Contingent work in progress is excluded from this. The carrying amount is £664,546 (2022 - £763,995).

Depreciation - this is calculated with a view to writing off the value of assets over their useful lives. However, this varies for each class of asset and judgement is used in deciding on useful lives for assets. The carrying amount is £23,274 (2022 - £41,932).

Amortisation - this is calculated with a view to writing off the goodwill over its useful life. The carrying amount is £200,000 (2022 - £250,000).

Revenue recognition

Income represents the fair value of services provided during the year on client assignments. Fair value reflects the amounts expected to be recoverable from clients based on time spent, skills provided and expenses incurred, and excludes VAT. Fee income is recognised as contract activity progresses and the right to consideration is secured, except where the final outcome cannot be assessed with reasonable certainty.

Fee income in respect of contingent fee assignments is recognised when recoverability of the fee is no longer subject to the contingent event.

Disbursements

Disbursements are not included in income or expenses, but are netted against each other.

Tax

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

The current corporation 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 temporary 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.

Tangible assets

Tangible assets are stated in the statement of financial position 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.

 

Wixted & Co Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

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

Plant and machinery

10 - 33.3% of cost per annum

Fixtures, fittings and equipment

20% of cost per annum

Motor vehicles

25 - 33.3% of cost per annum

Goodwill

Goodwill is amortised over its useful life, which shall not exceed five years if a reliable estimate of the useful life cannot be made.

Intangible assets

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.

Amortisation

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

Asset class

Amortisation method and rate

Goodwill

Straight line basis over 20 years

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.

Trade debtors

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

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. 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 debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable 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 all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

 

Wixted & Co Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

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.

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.

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.

Dividends

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

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.

 

Wixted & Co Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

Financial instruments


Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

 

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 17 (2022 - 25).

 

Wixted & Co Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

4

Loss before tax

Arrived at after charging:

2023
 £

2022
 £

Depreciation expense

23,274

27,853

Amortisation expense

50,000

50,000

(Profit)/loss on disposal of tangible fixed assets

-

582

 

5

Intangible assets

Goodwill
 £

Cost

At 1 November 2022 and 31 October 2023

1,000,000

Amortisation

At 1 November 2022

750,000

Amortisation charge

50,000

At 31 October 2023

800,000

Carrying amount

At 31 October 2023

200,000

At 31 October 2022

250,000

 

Wixted & Co Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

6

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost

At 1 November 2022

217,477

66,491

283,968

At 31 October 2023

217,477

66,491

283,968

Depreciation

At 1 November 2022

201,633

40,403

242,036

Charge for the year

9,651

13,623

23,274

At 31 October 2023

211,284

54,026

265,310

Carrying amount

At 31 October 2023

6,193

12,465

18,658

At 31 October 2022

15,844

26,088

41,932

 

7

Debtors

2023
 £

2022
 £

Trade debtors

327,513

432,742

Other debtors

1,349,785

589,504

Prepayments

157,690

167,590

Amounts recoverable on contracts

664,546

763,995

 

2,499,534

1,953,831

 

8

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

9

114,335

359,445

Trade creditors

 

338,110

305,375

Social security and other taxes

 

84,801

107,489

Other creditors

 

972,713

875,541

Accrued expenses

 

29,513

30,964

 

1,539,472

1,678,814

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

23,519

39,694

 

Wixted & Co Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 October 2023

 

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank borrowings

10,648

10,649

Bank overdrafts

202

250,204

Hire purchase liabilities

6,174

12,260

Other borrowings

97,311

86,332

114,335

359,445

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

23,519

33,518

HP and finance lease liabilities

-

6,176

23,519

39,694

 

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £Nil (2022 - £12,133).

 

11

Related party transactions

Transactions with the director

At 31 October 2023 the company was owed £751,384 (2022 - £511,943) by T P Wixted in the form of a director's loan account. The loan is interest free and has no fixed repayment terms.

During the year, T P Wixted received dividends of £261,943 (2022 - £152,086) from the company.

Summary of transactions with other related parties

At 31 October 2023, the company owed £126,983 (2022 - £nil) to Shore Thing Properties Limited, a company in which T P Wixted is a director and shareholder. The balance relates to working capital loans made by Wixted & Co Limited on behalf of Shore Thing Properties Limited. The loan is interest free and has no fixed repayment terms.

At 31 October 2023, the company owed £804,385 to TPW Investments Limited (2022 - £815,587), a company in which T P Wixted is a director and shareholder. The balance relates to working capital loans made by Wixted & Co Limited on behalf of TPW Investments Limited. The loan is interest free and has no fixed repayment terms.

At 31 October 2023, the company was owed £558,067 from Premium Medical Services Limited (2022 - £nil). The balance relates to working capital loans made by Wixted & Co Limited on behalf of Premium Medical Services Limited. The loan is interest free and has no fixed repayment terms.