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Company registration number: 03767146
The Practice Loan Company Plc
Financial statements
31 March 2024
The Practice Loan Company Plc
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
The Practice Loan Company Plc
Directors and other information
Directors Christopher Carmichael
Paul Ward
Secretary Heidi Carmichael
Company number 03767146
Registered office No 5 The Mews, Trent Business Centre
Eastern Avenue
Lichfield
Staffordshire
WS13 6RR
Business address No 5 The Mews, Trent Business Centre
Eastern Avenue
Lichfield
Staffordshire
WS13 6RR
Auditor Lindley & Co
Suite 4 Europa House
Europa Way
Lichfield
Staffordshire
WS14 9TZ
Bankers Lloyds Bank Plc
Foregate Street
Chester
The Practice Loan Company Plc
Strategic report
Year ended 31 March 2024
Review of business
The company continues to raise finance for professional practitioners and other SME's.
The company achieved turnover of £1,628,269 for the year ended 31 March 2024, an increase of £320,732 on the previous year. Gross profit amounted to £621,597 giving a GP% of 38% (2023 20%). An interim dividend of £25,000 was paid this year. The directors do not recommend the payment of a final dividend.
The directors consider the results for the year and the state of affairs of the company at 31 March 2024 to be satisfactory.
Principal risks and uncertainties
The primary risks and uncertainties are associated with the willingness of professional practitioners to undertake loans and the availability of appropriate funding in the market.
Future plans and developments
The current economic environment is marked by a level of uncertainty, affecting businesses across various sectors. We remain vigilant in monitoring the situation and are committed to expanding our network of introducers, which is a critical area for our growth. We anticipate significant growth in our core area of business loans, and our expansion into all SME businesses is expected to generate additional revenue and contribute to our future growth. Additionally, we are conscientious of our overhead costs and strive to reduce them whenever possible. In the short term, our infrastructure is robust, with no significant capital investment requirements. We are continuously developing our CRM system to ensure the full utilization of all opportunities. Furthermore, we are consistently aware of our regulatory requirements, including those imposed by GDPR, and ensure that our staff are fully trained to treat regulation and compliance as essential aspects of their roles
Financial key performance indicators
The board reviews performance against plan with reference to turnover, gross margin and profitability.
Going concern
The directors have consistently reviewed the company's cash flow and results, and have a reasonable expectation that the company possesses sufficient resources to continue operating for the foreseeable future. Consequently, the directors believe there is no reason to doubt the appropriateness of adopting the going concern basis in the preparation of the company's financial statements.
This report was approved by the board of directors on 19 July 2024 and signed on behalf of the board by:
Christopher Carmichael
Director
The Practice Loan Company Plc
Directors report
Year ended 31 March 2024
The directors present their report and the financial statements of the company for the year ended 31 March 2024.
Directors
The directors who served the company during the year were as follows:
Christopher Carmichael
Paul Ward
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Greenhouse gas emissions and energy consumption
Principal measures taken to increase energy efficiency
The company is committed to pursuing sound environmental policies in all aspects of its business and seeks to encourage and promote good environmental practice among its employees and within the communities in which it operates.
Information not included
The company has assessed the energy consumption to be less than 40MWh and is determined to be a low energy user, as such detailed information on the Streamlined Energy and Carbon Reporting (SECR) is not disclosed.
Disclosure of information in the strategic report.
In accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013, information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 has been included in the Strategic Report.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent;
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
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.
The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 19 July 2024 and signed on behalf of the board by:
Christopher Carmichael
Director
The Practice Loan Company Plc
Independent auditor's report to the members of
The Practice Loan Company Plc
Year ended 31 March 2024
Opinion
We have audited the financial statements of The Practice Loan Company Plc (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 March 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’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 directors use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report has 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 directors' report. We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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: Enquiry of management, being those charged with governance, and review of correspondence with the company's solicitors around actual and potential litigation and claims;We considered the nature of the company's industry and its control environment and reviewed the company's documentation of their policies and procedures relating to compliance with laws and regulations. We also made enquiries of company management in compliance functions about their assessment of the risks of irregularities and to identify any instances of non-compliance with laws and regulations;Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;Performing audit work over the risk of management override of controls, including analytical procedures and testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates.Performing audit work over the risk of fraud in revenue recognition including substantive testing and analytical procedures, over the recording ot revenue and testing of year end cut off.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. 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 directors. - Conclude on the appropriateness of the directors 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.
Sandra Kay Lindley (Senior Statutory Auditor)
For and on behalf of
Lindley & Co
Chartered Certified Accountants and Stautory auditor
Suite 4 Europa House
Europa Way
Lichfield
Staffordshire
WS14 9TZ
19 July 2024
The Practice Loan Company Plc
Statement of comprehensive income
Year ended 31 March 2024
2024 2023
Note £ £
Turnover 4 1,628,269 1,307,537
Cost of sales ( 1,006,672) ( 1,043,189)
_______ _______
Gross profit 621,597 264,348
Administrative expenses ( 309,817) ( 229,270)
_______ _______
Operating profit 5 311,780 35,078
Other interest receivable and similar income 9 65 24
Interest payable and similar expenses 10 ( 505) ( 1,470)
Profit before taxation 311,340 33,632
Tax on profit 11 ( 83,186) ( 7,892)
_______ _______
Profit for the financial year and total comprehensive income 228,154 25,740
_______ _______
All the activities of the company are from continuing operations.
The Practice Loan Company Plc
Statement of financial position
31 March 2024
2024 2023
Note £ £ £ £
Fixed assets
Tangible assets 13 56,353 43,530
_______ _______
56,353 43,530
Current assets
Debtors 14 223,002 25,599
Cash at bank and in hand 173,732 115,168
_______ _______
396,734 140,767
Creditors: amounts falling due
within one year 15 ( 106,681) ( 35,815)
_______ _______
Net current assets 290,053 104,952
_______ _______
Total assets less current liabilities 346,406 148,482
Creditors: amounts falling due
after more than one year 16 ( 25,463) ( 31,482)
Provisions for liabilities 17 ( 3,285) ( 2,496)
_______ _______
Net assets 317,658 114,504
_______ _______
Capital and reserves
Called up share capital 20 50,100 50,100
Profit and loss account 21 267,558 64,404
_______ _______
Shareholders funds 317,658 114,504
_______ _______
These financial statements were approved by the board of directors and authorised for issue on 19 July 2024 , and are signed on behalf of the board by:
Christopher Carmichael
Director
Company registration number: 03767146
The Practice Loan Company Plc
Statement of changes in equity
Year ended 31 March 2024
Called up share capital Profit and loss account Total
£ £ £
At 1 April 2022 50,100 48,664 98,764
Profit for the year 25,740 25,740
_______ _______ _______
Total comprehensive income for the year - 25,740 25,740
Dividends paid and payable ( 10,000) ( 10,000)
_______ _______ _______
Total investments by and distributions to owners - ( 10,000) ( 10,000)
_______ _______ _______
At 31 March 2023 and 1 April 2023 50,100 64,404 114,504
Profit for the year 228,154 228,154
_______ _______ _______
Total comprehensive income for the year - 228,154 228,154
Dividends paid and payable ( 25,000) ( 25,000)
_______ _______ _______
Total investments by and distributions to owners - ( 25,000) ( 25,000)
_______ _______ _______
At 31 March 2024 50,100 267,558 317,658
_______ _______ _______
The Practice Loan Company Plc
Statement of cash flows
Year ended 31 March 2024
2024 2023
£ £
Cash flows from operating activities
Profit for the financial year 228,154 25,740
Adjustments for:
Depreciation of tangible assets 14,708 13,829
Other interest receivable and similar income ( 65) ( 24)
Interest payable and similar expenses 505 1,470
Tax on profit 83,186 7,892
Changes in:
Trade and other debtors ( 197,403) 81,031
Trade and other creditors ( 6,733) 6,920
_______ _______
Cash generated from operations 122,352 136,858
Interest paid ( 505) ( 1,470)
Interest received 65 24
Tax paid ( 6,939) ( 10,763)
_______ _______
Net cash from operating activities 114,973 124,649
_______ _______
Cash flows from investing activities
Purchase of tangible assets ( 27,531) ( 4,193)
_______ _______
Net cash used in investing activities ( 27,531) ( 4,193)
_______ _______
Cash flows from financing activities
Proceeds from borrowings ( 3,878) ( 5,258)
Equity dividends paid ( 25,000) ( 10,000)
_______ _______
Net cash used in financing activities ( 28,878) ( 15,258)
_______ _______
Net increase/(decrease) in cash and cash equivalents 58,564 105,198
Cash and cash equivalents at beginning of year 115,168 9,970
_______ _______
Cash and cash equivalents at end of year 173,732 115,168
_______ _______
The Practice Loan Company Plc
Notes to the financial statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is The Practice Loan Company Plc, No 5 The Mews, Trent Business Centre, Eastern Avenue, Lichfield, Staffordshire, WS13 6RR.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and 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 accounts requires management to make judgements, estimates and assumptions that affect the amounts reported. These judgements and estimates are contiually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable in the circumstances.Singnificant judgementsThere are no significant judgements (apart from those involving estimations) that management have made in the process of applying the entity's accounting policies and having a significant effect on the amounts recognised in the financial statements.Key sources of estimation uncertaintyAccounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the realted actual income. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:Claw back provisionsFunders can apply a clawback of fees for a period of one to five years after a deal has been completed. Management make a provision for the clawback based on previous history and experience, supported by a continual review.
Turnover
Turnover is measured at the fair value of the consideration received for commissions. Revenue from commissions is taken upon completion of the contract.
When the outcome of a transaction involving the rendering of services can be reliably estimated, 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.
When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, 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.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.
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:
Fittings fixtures and equipment - 33 % straight line
Improvements to property - 10 % straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
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. 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 are largely independent of the cash inflows from other assets or groups of assets.
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 statement of financial position 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 in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
4. Turnover
Turnover arises from:
2024 2023
£ £
Rendering of services 1,628,269 1,307,537
_______ _______
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit is stated after charging/(crediting):
2024 2023
£ £
Depreciation of tangible assets 14,708 13,829
Operating lease rentals 315 154
_______ _______
6. Auditors remuneration
2024 2023
£ £
Fees payable to Lindley & Co
Fees payable for the audit of the financial statements 5,000 5,000
_______ _______
Fees payable to the company's auditor and its associates for other services:
Taxation compliance services 500 500
Other non-audit services 1,650 1,650
_______ _______
2,150 2,150
_______ _______
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024 2023
Administrative staff 3 3
_______ _______
The aggregate payroll costs incurred during the year were:
2024 2023
£ £
Wages and salaries 113,874 98,418
Social security costs 6,183 5,159
Other pension costs 1,092 836
_______ _______
121,149 104,413
_______ _______
8. Directors remuneration
The directors aggregate remuneration in respect of qualifying services was:
2024 2023
£ £
Remuneration 102,231 76,131
Company contributions to pension schemes in respect of qualifying services 1,092 836
_______ _______
103,323 76,967
_______ _______
9. Other interest receivable and similar income
2024 2023
£ £
Bank deposits 5 24
Other interest receivable and similar income 60 -
_______ _______
65 24
_______ _______
10. Interest payable and similar expenses
2024 2023
£ £
Bank loans and overdrafts 505 1,470
_______ _______
11. Tax on profit
Major components of tax expense
2024 2023
£ £
Current tax:
UK current tax expense 82,397 9,005
_______ _______
Deferred tax:
Origination and reversal of timing differences 789 ( 1,113)
_______ _______
Tax on profit 83,186 7,892
_______ _______
Reconciliation of tax expense
The tax assessed on the profit for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25.00 % (2023: 19.00%).
2024 2023
£ £
Profit before taxation 311,340 33,632
_______ _______
Profit multiplied by rate of tax 77,835 6,390
Effect of expenses not deductible for tax purposes 2,380 1,024
Effect of capital allowances and depreciation 2,971 478
_______ _______
Tax on profit 83,186 7,892
_______ _______
12. Dividends
Equity dividends
2024 2023
£ £
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year) 25,000 10,000
_______ _______
13. Tangible assets
Fixtures, fittings and equipment Improvements to property Total
£ £ £
Cost
At 1 April 2023 79,774 37,807 117,581
Additions 5,978 21,553 27,531
_______ _______ _______
At 31 March 2024 85,752 59,360 145,112
_______ _______ _______
Depreciation
At 1 April 2023 66,636 7,415 74,051
Charge for the year 9,354 5,354 14,708
_______ _______ _______
At 31 March 2024 75,990 12,769 88,759
_______ _______ _______
Carrying amount
At 31 March 2024 9,762 46,591 56,353
_______ _______ _______
At 31 March 2023 13,138 30,392 43,530
_______ _______ _______
14. Debtors
2024 2023
£ £
Trade debtors 32,841 25,599
Other debtors 190,161 -
_______ _______
223,002 25,599
_______ _______
15. Creditors: amounts falling due within one year
2024 2023
£ £
Bank loans and overdrafts 8,333 8,333
Accruals and deferred income 8,800 8,800
Corporation tax 82,397 6,939
Social security and other taxes 3,915 3,915
Director loan accounts 3,050 909
Other creditors 186 6,919
_______ _______
106,681 35,815
_______ _______
The bank loan is unsecured and carries interest at a rate of 2.5% pa.
16. Creditors: amounts falling due after more than one year
2024 2023
£ £
Bank loans and overdrafts 25,463 31,482
_______ _______
The bank loan is unsecured and carries interest at a rate of 2.5% pa.
17. Provisions
Deferred tax (note 18) Total
£ £
At 1 April 2023 2,496 2,496
Additions 789 789
_______ _______
At 31 March 2024 3,285 3,285
_______ _______
18. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024 2023
£ £
Included in provisions (note 17) 3,285 2,496
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2024 2023
£ £
Accelerated capital allowances 3,285 2,496
_______ _______
19. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2024 2023
£ £
Financial assets that are debt instruments measured at amortised cost
Trade debtors 32,841 25,599
Other debtors 190,161 -
Cash at bank and in hand 173,732 115,168
_______ _______
396,734 140,767
_______ _______
Financial liabilities measured at amortised cost
Bank and other loans 33,796 39,815
Other creditors 98,348 27,482
_______ _______
132,144 67,297
_______ _______
20. Called up share capital
Issued, called up and fully paid
2024 2023
No £ No £
Founder shares of £ 1.00 each 50,000 50,000 50,000 50,000
Incentive A shares of £ 1.00 each 85 85 85 85
Incentive B shares of £ 1.00 each 10 10 10 10
Incentive C shares of £ 1.00 each 5 5 5 5
_______ _______ _______ _______
50,100 50,100 50,100 50,100
_______ _______ _______ _______
The founder shares carry no voting rights and have no right to dividends.
21. Reserves
Profit and loss account- This reserve records retained earnings and accumulated losses.
22. Directors advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2024
Balance brought forward Advances /(credits) to the directors Balance o/standing
£ £ £
Christopher Carmichael - ( 2,141) ( 2,141)
Paul Ward ( 909) - ( 909)
_______ _______ _______
2023
Balance brought forward Advances /(credits) to the directors Balance o/standing
£ £ £
Christopher Carmichael - - -
Paul Ward ( 612) ( 297) ( 909)
_______ _______ _______
The advances are repayable on demand and interest free.
23. Related party transactions
H M West Limited, a company in which Christopher Carmichael is a director and controlling shareholder.Commissions payable £320,000 (2023 £444,000)CK Scotland Limited, a company in which Chris Carmichael is a director and shareholder.Commissions payable £nil (2023 £132,380)Balances with related parties:H M West LimitedBalance due from H M West Limited at 31 March 2024 £6,161 (2023 to H M West Limited £6,750). The balance is repayable on demand and interest free.CK Scotland LimitedBalance due from CK Scotland Limited at 31 March 2024 £184,000 (£2023 £nil). The balance is repayable on demand and interest free.
24. Controlling party
The company is controlled by C Carmichael who owns 85% of the voting shares in the company.