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REGISTERED NUMBER: 12940643 (England and Wales)















Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30 November 2023

for

CLIENT FIRST GROUP HOLDINGS LIMITED

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Contents of the Consolidated Financial Statements
for the year ended 30 November 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Consolidated Statement of Comprehensive Income 8

Consolidated Balance Sheet 9

Company Balance Sheet 10

Consolidated Statement of Changes in Equity 11

Company Statement of Changes in Equity 12

Consolidated Cash Flow Statement 13

Notes to the Consolidated Cash Flow Statement 14

Notes to the Consolidated Financial Statements 16


CLIENT FIRST GROUP HOLDINGS LIMITED

Company Information
for the year ended 30 November 2023







Directors: A W Fernie
R Clark





Registered office: Oakwater House
4 Oakwater Avenue
Cheadle Royal Business Park
Cheadle
SK8 3SR





Registered number: 12940643 (England and Wales)





Auditors: Haines Watts
Northern Assurance Buildings
9-21 Princess Street
Manchester
M2 4DN

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Group Strategic Report
for the year ended 30 November 2023


The directors present their strategic report of the company and the group for the year ended 30 November 2023.

The principal activity of the group in the year under review was the provision of serious and catastrophic injury legal services to clients in the UK. Client First Group Holdings Limited itself is the holding company for its trading subsidiary company CFG Law Limited.

Review of business
The Directors are pleased with the turnover achieved of £6.7m. Profit before tax for the year has increased to £348k.

The business has continued to deliver on the strong foundations established in recent trading years as a result of strategic investment. After a strong performance in 2022, which in itself built on a strong year in 2021, we have successfully negotiated the immediate post-Covid period. Our results in 2023 demonstrate again the strength of the business and our delivery against a clear strategy with positive growth in relation to both turnover but, more importantly, profitability. Both are forecast to grow strongly again in 2024 and in future years.

We continue to invest in the business in line with strategy, focusing on operating processes, colleagues, locations and developing our brand. Most importantly, we continue to build our network of work sources, delivering long-term sustainable profitable growth for the next 3-5 years as a minimum. Successful agreements concluded within the financial year reported have driven further expansion and enabled us to open our latest new office in Warwick to support increasing work volumes in the Midlands and Thames Valley.

We also continue to achieve quicker settlement of cases than the market average, benefiting our clients and their families, while also delivering settlement values at least in line with other established firms regarded as the benchmark on this metric.

After extensive research throughout 2022 and into 2023, we launched our new market positioning and re-branded the business as simply CFG - highlighting the established differentiation we now have in the market through our related non-legal services, which we positioned as More Than Law. This change reflects feedback from our clients, their families and key work sources. It reflects a position in which we are increasingly leading the market in our broader approach to supporting clients and families, which is now recognised by our partners. Our new branding reflects three core aims of our business: legal excellence, wraparound support and leading change in our sector.

With reference to the latter of those three areas, we continue to make no significant deductions from client damages in serious and catastrophic injury work, and have stated our intention publicly to oppose the deduction of shortfall fees in particular. We believe this is one area where the serious injury sector can and must do better and we intend to make this a focus of our campaigning in the future, to the benefit of those we support and in line with our purpose of 'helping all those affected by injury - together'.

Our infrastructure investment continues to ensure we maintain a secure platform which can be accessed from anywhere in support of clients alongside skilled colleagues who are focused on delivering our purpose. Our main areas of investment in 2023 were:

- Rebranding the business
- Affirming our genuine hybrid working approach which will reduce our premises costs whilst increasing our colleague retention rates in the future
- Opening a new office in Warwick reflecting our national growth
- Increasing our trainee intake and full adoption of the new SQE training programme
- Recruitment of new colleagues nationally, particularly in the expanding Midlands and Thames Valley region.

Principal risks and uncertainties
Competitive pressure and further industry reforms are the main risks and uncertainties which also present opportunities which the Directors consider the company is well placed to exploit.

Research and development
We continued to invest in developing our case managements system which we believe provides us with a competitive advantage. We will continue to invest further in the future.

This aligns with our support of a diverse hybrid workforce which we believe is critical in the changing employment and generational landscape.


CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Group Strategic Report
for the year ended 30 November 2023

Future developments
Our strategy continues to be the delivery of long -term sustainable profitable growth across the UK, delivering legal excellence and market-leading damages levels and settlement times whilst also offering clients and families our renowned wraparound support and also leading change in our sector to the benefit of those we work with.

We anticipate further significant partnerships coming onstream in the financial year 2023-24 in line with our strategic plans, increasing the value and volume of new business and enabling us to help more people affected by injury.

On behalf of the board:





R Clark - Director


31 July 2024

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Report of the Directors
for the year ended 30 November 2023


The directors present their report with the financial statements of the company and the group for the year ended 30 November 2023.

Principal activity
The principal activity of the group in the year under review was that of the provision of serious and catastrophic injury legal services to clients in the UK. Client First Group Holdings Limited itself is the holding company for its trading subsidiary company CFG Law Limited.

Dividends
No dividends will be distributed for the year ended 30 November 2023.

Directors
The directors shown below have held office during the whole of the period from 1 December 2022 to the date of this report.

A W Fernie
R Clark

Going concern
The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. These have been prepared on the assumption that the bank will continue to support the group. Based on these assessments and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Statement of directors' responsibilities
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement as to disclosure of information to auditors
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

On behalf of the board:




R Clark - Director


31 July 2024

Report of the Independent Auditors to the Members of
Client First Group Holdings Limited


Opinion
We have audited the financial statements of Client First Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 November 2023 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Client First Group Holdings Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 four, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- We perform walkthrough testing to confirm that the company's own controls were operating correctly;
- We test a sample of sales and purchases to confirm they are accounted for correctly and are appropriately disclosed;
- We test a sample of debtors and creditors to confirm they are correctly stated;
- We test a sample of journals to confirm they are genuine transactions;
- We review accounting estimates, in particular those relating to work in progress, to confirm they are reasonable.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
Client First Group Holdings Limited


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 a Report of the Auditors 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.




Antony Sassen FCA (Senior Statutory Auditor)
for and on behalf of Haines Watts
Northern Assurance Buildings
9-21 Princess Street
Manchester
M2 4DN

31 July 2024

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Consolidated
Statement of Comprehensive
Income
for the year ended 30 November 2023

2023 2022
Notes £ £

Turnover 6,675,046 5,655,834

Administrative expenses (6,277,173 ) (5,343,607 )
Operating profit 5 397,873 312,227


Interest payable and similar expenses 6 (50,243 ) (28,290 )
Profit before taxation 347,630 283,937

Tax on profit 7 (144,458 ) (104,963 )
Profit for the financial year 203,172 178,974

Other comprehensive income - -
Total comprehensive income for the year 203,172 178,974

Profit attributable to:
Owners of the parent 203,172 178,974

Total comprehensive income attributable to:
Owners of the parent 203,172 178,974

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Consolidated Balance Sheet
30 November 2023

2023 2022
Notes £ £ £ £
Fixed assets
Intangible assets 9 599,919 832,145
Tangible assets 10 294,998 286,177
Investments 11 - -
894,917 1,118,322

Current assets
Debtors 12 6,505,753 5,258,344
Cash in hand 178 296
6,505,931 5,258,640
Creditors
Amounts falling due within one year 13 3,165,682 2,300,691
Net current assets 3,340,249 2,957,949
Total assets less current liabilities 4,235,166 4,076,271

Creditors
Amounts falling due after more than one
year

14

(142,398

)

(171,875

)

Provisions for liabilities 18 (17,500 ) (32,300 )
Net assets 4,075,268 3,872,096

Capital and reserves
Called up share capital 19 3,776,632 3,776,632
Retained earnings 20 298,636 95,464
Shareholders' funds 4,075,268 3,872,096

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2024 and were signed on its behalf by:





R Clark - Director


CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Company Balance Sheet
30 November 2023

2023 2022
Notes £ £ £ £
Fixed assets
Intangible assets 9 - -
Tangible assets 10 - -
Investments 11 3,776,531 3,776,531
3,776,531 3,776,531

Current assets
Debtors 12 101 101
Net current assets 101 101
Total assets less current liabilities 3,776,632 3,776,632

Capital and reserves
Called up share capital 19 3,776,632 3,776,632
Shareholders' funds 3,776,632 3,776,632

Company's profit for the financial year - -

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2024 and were signed on its behalf by:





R Clark - Director


CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Consolidated Statement of Changes in Equity
for the year ended 30 November 2023

Called up
share Retained Total
capital earnings equity
£ £ £
Balance at 1 December 2021 3,776,632 (83,510 ) 3,693,122

Changes in equity
Total comprehensive income - 178,974 178,974
Balance at 30 November 2022 3,776,632 95,464 3,872,096

Changes in equity
Total comprehensive income - 203,172 203,172
Balance at 30 November 2023 3,776,632 298,636 4,075,268

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Company Statement of Changes in Equity
for the year ended 30 November 2023

Called up
share Retained Total
capital earnings equity
£ £ £
Balance at 1 December 2021 3,776,632 - 3,776,632

Changes in equity
Balance at 30 November 2022 3,776,632 - 3,776,632

Changes in equity
Balance at 30 November 2023 3,776,632 - 3,776,632

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Consolidated Cash Flow Statement
for the year ended 30 November 2023

2023 2022
Notes £ £
Cash flows from operating activities
Cash generated from operations 1 (337,670 ) (496,128 )
Interest paid (48,971 ) (28,290 )
Interest element of hire purchase payments
paid

(1,272

)

-
Tax paid (103,073 ) (22,937 )
Net cash from operating activities (490,986 ) (547,355 )

Cash flows from investing activities
Purchase of tangible fixed assets (37,794 ) (25,352 )
Net cash from investing activities (37,794 ) (25,352 )

Cash flows from financing activities
New loans in year 382,308 182,765
Loan repayments in year (351,229 ) (217,312 )
Capital repayments in year (1,729 ) -
Net cash from financing activities 29,350 (34,547 )

Decrease in cash and cash equivalents (499,430 ) (607,254 )
Cash and cash equivalents at beginning
of year

2

(1,397,306

)

(790,052

)

Cash and cash equivalents at end of year 2 (1,896,736 ) (1,397,306 )

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Notes to the Consolidated Cash Flow Statement
for the year ended 30 November 2023


1. Reconciliation of profit before taxation to cash generated from operations
2023 2022
£ £
Profit before taxation 347,630 283,937
Depreciation charges 356,326 290,580
Finance costs 50,243 28,290
754,199 602,807
Increase in trade and other debtors (1,247,409 ) (1,209,545 )
Increase in trade and other creditors 155,540 110,610
Cash generated from operations (337,670 ) (496,128 )

2. Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 November 2023
30/11/23 1/12/22
£ £
Cash and cash equivalents 178 296
Bank overdrafts (1,896,914 ) (1,397,602 )
(1,896,736 ) (1,397,306 )
Year ended 30 November 2022
30/11/22 1/12/21
£ £
Cash and cash equivalents 296 100,296
Bank overdrafts (1,397,602 ) (890,348 )
(1,397,306 ) (790,052 )


CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Notes to the Consolidated Cash Flow Statement
for the year ended 30 November 2023


3. Analysis of changes in net debt

Other
non-cash
At 1/12/22 Cash flow changes At 30/11/23
£ £ £ £
Net cash
Cash at bank
and in hand 296 (118 ) 178
Bank overdrafts (1,397,602 ) (499,312 ) (1,896,914 )
(1,397,306 ) (499,430 ) (1,896,736 )
Debt
Finance leases - 1,729 (95,127 ) (93,398 )
Debts falling due
within 1 year (283,858 ) (143,579 ) - (427,437 )
Debts falling due
after 1 year (171,875 ) 112,500 - (59,375 )
(455,733 ) (29,350 ) (95,127 ) (580,210 )
Total (1,853,039 ) (528,780 ) (95,127 ) (2,476,946 )

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Notes to the Consolidated Financial Statements
for the year ended 30 November 2023


1. Statutory information

Client First Group Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. 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.

3. Accounting policies

Basis of preparing the financial statements
The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows in making their assessment. These have been prepared on the assumption that the bank will continue to support the group. Based on these assessments and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

Basis of consolidation
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 November 2023.
Subsidiary undertakings are included using the acquisitions method of accounting. Under this method the group profit and loss account and statement of cashflows include the results and cashflows of subsidiaries from the date of acquisition and to the date of sale outside the group in the case of disposals of subsidiaries. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

Significant judgements and estimates
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are not considered to be any critical judgements in applying the company's accounting policies.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the actual results. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amounts of assets or liabilities within the next financial year are addressed below.

(i) Accrued income valuation

The valuation of accrued income involves a number of estimates including prospects of success and liability status.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents the fair value of professional services provided during the year to clients. Fair value reflects the amount expected to be recoverable from clients and is based on time spent, skills and expertise provided and expenses incurred, but excludes Value Added Tax.

Turnover in respect of contingent fee assignments is recognised in the period when the contingent event occurs. The anticipated fee is discounted for the liability status and the prospects of success.

Turnover which has been recognised but not invoiced is included in prepayments and accrued income.

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Notes to the Consolidated Financial Statements - continued
for the year ended 30 November 2023


3. Accounting policies - continued

Goodwill
Goodwill is the difference between the fair value of consideration paid for an acquired entity and the aggregate of the fair value of the entity's identifiable assets and liabilities.

Positive goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Amortisation is provided so as to write off the cost, less any estimated residual value, over the expected useful life of 5 years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 20% straight line and 10% straight line
Fixtures and fittings - 33% straight line
Motor vehicles - 20% straight line
Computer equipment - 33% straight line

Tangible assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price and costs directly attributable to bringing the asset to its working condition for its intended use.

Financial instruments
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets, including trade and other debtors, loans to fellow group companies that are classified as debt and cash and bank balances, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

There are no assets which are initially measured at fair value.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Notes to the Consolidated Financial Statements - continued
for the year ended 30 November 2023


3. Accounting policies - continued

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Research and development
Expenditure on research and development is written off in the year in which it is incurred.


Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

4. Employees and directors
2023 2022
£ £
Wages and salaries 3,306,459 2,919,738
Social security costs 368,674 337,936
Other pension costs 99,340 88,903
3,774,473 3,346,577

The average number of employees during the year was as follows:
2023 2022

Administration and support 24 29
Other departments 50 43
74 72

The average number of employees by undertakings that were proportionately consolidated during the year was 74 (2022 - 72 ) .

2023 2022
£ £
Directors' remuneration 191,400 150,000

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Notes to the Consolidated Financial Statements - continued
for the year ended 30 November 2023


5. Operating profit

The operating profit is stated after charging:

2023 2022
£ £
Other operating leases 108,517 65,265
Depreciation - owned assets 124,100 58,354
Goodwill amortisation 232,226 232,226
Auditors' remuneration 8,000 7,400

6. Interest payable and similar expenses
2023 2022
£ £
Bank interest 6,502 1,629
Loan 42,469 26,661
Leasing 1,272 -
50,243 28,290

7. Taxation

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£ £
Current tax:
UK corporation tax 159,258 103,363

Deferred tax (14,800 ) 1,600
Tax on profit 144,458 104,963

UK corporation tax has been charged at 23.01 % .

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£ £
Profit before tax 347,630 283,937
Profit multiplied by the standard rate of corporation tax in the UK of
23.010 % (2022 - 19 %)

79,990

53,948

Effects of:
Expenses not deductible for tax purposes 6,784 1,702
Depreciation in excess of capital allowances 57,684 49,313

Total tax charge 144,458 104,963

The average rate of corporation tax during the year ended 30 November 2023 was 23.01% being 19% to 31 March 2023 and 25% thereafter.

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Notes to the Consolidated Financial Statements - continued
for the year ended 30 November 2023


8. Individual statement of comprehensive income

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


9. Intangible fixed assets

Group
Goodwill
£
Cost
At 1 December 2022
and 30 November 2023 1,936,132
Amortisation
At 1 December 2022 1,103,987
Amortisation for year 232,226
At 30 November 2023 1,336,213
Net book value
At 30 November 2023 599,919
At 30 November 2022 832,145

10. Tangible fixed assets

Group
Fixtures
Improvements and Motor Computer
to property fittings vehicles equipment Totals
£ £ £ £ £
Cost
At 1 December 2022 600,989 249,867 - 139,081 989,937
Additions - - 115,127 17,794 132,921
At 30 November 2023 600,989 249,867 115,127 156,875 1,122,858
Depreciation
At 1 December 2022 322,107 248,937 - 132,716 703,760
Charge for year 93,066 94 23,025 7,915 124,100
At 30 November 2023 415,173 249,031 23,025 140,631 827,860
Net book value
At 30 November 2023 185,816 836 92,102 16,244 294,998
At 30 November 2022 278,882 930 - 6,365 286,177

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Notes to the Consolidated Financial Statements - continued
for the year ended 30 November 2023


11. Fixed asset investments

Company
Shares in
group
undertakings
£
Cost
At 1 December 2022
and 30 November 2023 3,776,531
Net book value
At 30 November 2023 3,776,531
At 30 November 2022 3,776,531

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

CFG Law Limited
Registered office: Oakwater House, 4 Oakwater Avenue, Cheadle Royal Business Park, Cheadle, Cheshire SK8 3SR.
Nature of business: Solicitors
%
Class of shares: holding
Ordinary 100.00
Ordinary redeemable 100.00

CFG Trust Corporation Ltd
Registered office: Oakwater House, 4 Oakwater Avenue, Cheadle Royal Business Park, Cheadle, Cheshire, SK8 3SR
Nature of business: Dormant
%
Class of shares: holding
Ordinary 100.00


12. Debtors: amounts falling due within one year

Group Company
2023 2022 2023 2022
£ £ £ £
Trade debtors 1,077,967 930,621 - -
Other debtors 474,027 181,800 101 101
Directors' current accounts 850,000 850,000 - -
Tax 212,500 212,500 - -
Prepayments and accrued income 3,891,259 3,083,423 - -
6,505,753 5,258,344 101 101

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Notes to the Consolidated Financial Statements - continued
for the year ended 30 November 2023


13. Creditors: amounts falling due within one year

Group
2023 2022
£ £
Bank loans and overdrafts (see note 15) 2,324,351 1,681,460
Hire purchase contracts (see note 16) 10,375 -
Trade creditors 76,246 24,980
Corporation tax 159,548 103,363
Social security and other taxes 92,643 85,930
VAT 309,157 287,860
Other creditors 5,823 247
Accrued expenses 187,539 116,851
3,165,682 2,300,691

14. Creditors: amounts falling due after more than one year

Group
2023 2022
£ £
Bank loans (see note 15) 59,375 171,875
Hire purchase contracts (see note 16) 83,023 -
142,398 171,875

15. Loans

An analysis of the maturity of loans is given below:

Group
2023 2022
£ £
Amounts falling due within one year or on demand:
Bank overdrafts 1,896,914 1,397,602
Bank loans 427,437 283,858
2,324,351 1,681,460
Amounts falling due between one and two years:
Bank loans - 1-2 years 59,375 112,500
Amounts falling due between two and five years:
Bank loans - 2-5 years - 59,375

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Notes to the Consolidated Financial Statements - continued
for the year ended 30 November 2023


16. Leasing agreements

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£ £
Net obligations repayable:
Within one year 10,375 -
Between one and five years 83,023 -
93,398 -

Group
Non-cancellable
operating leases
2023 2022
£ £
Within one year 55,421 55,550
Between one and five years 27,890 67,404
83,311 122,954

17. Secured debts

The following secured debts are included within creditors:

Group
2023 2022
£ £
Bank overdrafts 1,896,914 1,397,602

The subsidiary company's bankers hold a debenture dated 29 November 2007 as security for any bank overdrafts. The security incorporates a fixed and floating charge over the undertaking and all property and assets both present and future.

18. Provisions for liabilities

Group
2023 2022
£ £
Deferred tax
Accelerated capital allowances 17,500 32,300

Group
Deferred tax
£
Balance at 1 December 2022 32,300
Credit to Statement of Comprehensive Income during year (14,800 )
Balance at 30 November 2023 17,500

The net deferred tax liability expected to reverse in 2024 is £5,500. This primarily relates to the reversal of timing differences on capital allowances.

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Notes to the Consolidated Financial Statements - continued
for the year ended 30 November 2023


19. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £ £
3,776,532 Ordinary £1 3,776,532 3,776,532
100 A Ordinary £1 100 100
3,776,632 3,776,632

Ordinary shares have full voting and dividend rights and are entitled to a share of any surplus on winding up.

A Ordinary shares have no voting rights, unless specifically relating to the rights of those shares, and no rights to dividends. They are entitled to a share of any surplus on winding up.

20. Reserves

Group
Retained
earnings
£

At 1 December 2022 95,464
Profit for the year 203,172
At 30 November 2023 298,636


21. Pension commitments

The group 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 £99,340 (2022 - £88,903)
There were no contributions were payable to the scheme at the end of the year and are included in creditors (2022 - £nil).

22. Contingent liabilities

The subsidiary, CFG Law Limited, has guaranteed a bank loan creditor of a related party, The Client First Group Limited. At 30 November 2022 the amount outstanding was £825,288 (2022 - 939,693).

23. Directors' advances, credits and guarantees

A director had an overdrawn loan account of £850,000 at 30 November 2022 and 30 November 2023. There were no advances or credits during the year.

The above loan is interest free and repayable on demand.

24. Related party disclosures

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

CLIENT FIRST GROUP HOLDINGS LIMITED (REGISTERED NUMBER: 12940643)

Notes to the Consolidated Financial Statements - continued
for the year ended 30 November 2023


24. Related party disclosures - continued

Other related parties
2023 2022
£ £
Purchases 193,353 193,353
Amount due from related party 484,786 161,242

25. Ultimate controlling party

The controlling party is Claire Fernie.