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Registration number: 08829685

Thursfields Legal Limited

Annual Report and Financial Statements

for the Year Ended 30 April 2024

 

Thursfields Legal Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12 to 13

Notes to the Financial Statements

14 to 25

 

Thursfields Legal Limited

Company Information

Directors

M O'Hara

G Burge

A Gibb

S Kitching-Miller

J Warrilow

T Edwards

R Pettigrew

P Rea

P Chapman

R Webb

Registered office

9-10 The Tything
Worcester
Worcestershire
WR1 1HD

Bankers

Lloyds Bank Plc
1st Floor
4 The Cross
Worcester
WR1 3PY

Auditors

Hazlewoods LLP
Windsor House
Bayshill Road
Cheltenham
GL50 3AT

 

Thursfields Legal Limited

Strategic Report for the Year Ended 30 April 2024

The directors present their strategic report for the year ended 30 April 2024.

Principal activity

The principal activity of the company is the provision of legal services.

Fair review of the business

The results for the year which are set out in the profit and loss account show turnover of £11,231,981 (2023 - £10,851,074) and an operating profit of £2,631,915 (2023 - £2,518,081). At 30 April 2024 the company had net assets of £4,668,191 (2023 - £4,791,377). The directors consider the performance for the year and the financial position at the year end to be satisfactory.

Principal risks and uncertainties

The management of the company and the execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to competition from other legal practices and changes in the legal industry, as well as the current economic outlook.

Approved by the Board on 1 August 2024 and signed on its behalf by:


M O'Hara
Director

 

Thursfields Legal Limited

Directors' Report for the Year Ended 30 April 2024

The directors present their report and the financial statements for the year ended 30 April 2024.

Directors of the company

The directors who held office during the year were as follows:

M O'Hara

G Burge

A Gibb

S Kitching-Miller

J Warrilow

T Edwards

R Pettigrew

P Rea

P Chapman

L Tipple (ceased 7 June 2024)

R Webb

Financial instruments

Objectives and policies

The company does not actively use financial instruments as part of its financial risk management.

Price risk, credit risk, liquidity risk and cash flow risk

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.

The business' principal financial instruments comprise bank balances, work in progress, trade debtors and trade creditors. The main purpose of these instruments is to finance business operations.

In respect of bank balances, liquidity risk is managed by maintaining a continuity of funding. All of the business' cash balances are held in such a way that achieves a competitive rate of interest.

Work in progress is managed in respect of price and liquidity risk by regular billing and monitoring of amounts unbilled. The amounts presented in the balance sheet are net of allowances for recovery rates and time unlikely to be billed.

Trade debtors are managed in respect of credit and cash flow risk by regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 1 August 2024 and signed on its behalf by:


M O'Hara
Director

 

Thursfields Legal Limited

Statement of Directors' Responsibilities

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 of 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards has 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.

 

Thursfields Legal Limited

Independent Auditor's Report to the Members of Thursfields Legal Limited

Opinion

We have audited the financial statements of Thursfields Legal Limited (the 'company') for the year ended 30 April 2024, which comprise the Profit and Loss Account, Balance Sheet, 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 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 company's affairs as at 30 April 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 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.

Other matter

The financial statements for the year ended 30 April 2023 were unaudited.

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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

 

Thursfields Legal Limited

Independent Auditor's Report to the Members of Thursfields Legal Limited

Matters on which we are required to report by exception

In the light of our 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 and 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 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 4, 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 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.

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

 

Thursfields Legal Limited

Independent Auditor's Report to the Members of Thursfields Legal Limited

As part of an audit in accordance with ISAs (UK), we exercise professional judgement 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
company’s 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.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the company to express an opinion on the financial statements. We are responsible for the
direction, supervision and performance of the company audit. We remain solely responsible for our audit
opinion.

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.

identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

challenging assumptions and judgements made by management in its significant accounting estimates; and

identifying and testing journal entries, in particular any journal entries with unusual characteristics.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Thursfields Legal Limited

Independent Auditor's Report to the Members of Thursfields Legal Limited

Use of this report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.





Jon M Cartwright (Senior Statutory Auditor)
For and on behalf of Hazlewoods LLP, Statutory Auditor

Windsor House
Bayshill Road
Cheltenham
GL50 3AT

2 August 2024

 

Thursfields Legal Limited

Profit and Loss Account for the Year Ended 30 April 2024

Note

2024
£

2023
£

Turnover

3

11,231,981

10,851,074

Administrative expenses

 

(8,600,066)

(8,332,993)

Operating profit

4

2,631,915

2,518,081

Income from other Fixed assets investments

 

45,017

54,930

Other interest receivable and similar income

5

588,898

263,139

Amounts written off investments

 

-

(35,532)

Interest payable and similar charges

-

(342)

   

633,915

282,195

Profit before tax

 

3,265,830

2,800,276

Taxation

9

(825,863)

(552,373)

Profit for the financial year

 

2,439,967

2,247,903

The above results were derived from continuing operations.

The company has no other comprehensive income for the year.

 

Thursfields Legal Limited

(Registration number: 08829685)
Balance Sheet as at 30 April 2024

Note

2024
 £

2023
 £

Fixed assets

 

Tangible assets

11

570,487

542,256

Investments

12

207,948

222,472

 

778,435

764,728

Current assets

 

Debtors

13

2,737,372

2,283,002

Cash at bank and in hand

 

3,384,338

3,591,778

 

6,121,710

5,874,780

Creditors: Amounts falling due within one year

14

(2,059,901)

(1,763,780)

Net current assets

 

4,061,809

4,111,000

Total assets less current liabilities

 

4,840,244

4,875,728

Provisions for liabilities

15, 9

(172,053)

(84,351)

Net assets

 

4,668,191

4,791,377

Capital and reserves

 

Called up share capital

17

45

45

Capital redemption reserve

55

55

Profit and loss account

4,668,091

4,791,277

Total equity

 

4,668,191

4,791,377

Approved and authorised by the Board on 1 August 2024 and signed on its behalf by:
 


M O'Hara
Director

 

Thursfields Legal Limited

Statement of Changes in Equity for the Year Ended 30 April 2024

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 May 2023

45

55

4,791,277

4,791,377

Profit for the year

-

-

2,439,967

2,439,967

Dividends

-

-

(2,563,153)

(2,563,153)

At 30 April 2024

45

55

4,668,091

4,668,191

Share capital
£

Capital redemption reserve
£

Profit and loss account
£

Total
£

At 1 May 2022

45

55

3,181,374

3,181,474

Profit for the year

-

-

2,247,903

2,247,903

Dividends

-

-

(638,000)

(638,000)

At 30 April 2023

45

55

4,791,277

4,791,377

 

Thursfields Legal Limited

Statement of Cash Flows for the Year Ended 30 April 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

2,439,967

2,247,903

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

74,098

88,618

Finance income

5

(633,915)

(318,069)

Finance costs

-

35,874

Income tax expense

9

825,863

552,373

 

2,706,013

2,606,699

Working capital adjustments

 

(Increase)/decrease in trade debtors

13

(454,370)

226,181

Increase in trade creditors

14

161,885

113,124

Increase/(decrease) in provisions

15

87,702

(30,231)

Cash generated from operations

 

2,501,230

2,915,773

Income taxes paid

9

(691,627)

(449,322)

Net cash flow from operating activities

 

1,809,603

2,466,451

Cash flows from investing activities

 

Interest received

5

588,898

263,139

Acquisition of investments

12

-

(200,000)

Income from investments

 

59,541

78,930

Acquisitions of tangible assets

(102,329)

(426,774)

Net cash flows from investing activities

 

546,110

(284,705)

Cash flows from financing activities

 

Interest paid

-

(342)

Repayment of bank borrowings

 

-

(136,669)

Dividends paid

19

(2,563,153)

(638,000)

Net cash flows from financing activities

 

(2,563,153)

(775,011)

Net (decrease)/increase in cash and cash equivalents

 

(207,440)

1,406,735

Cash and cash equivalents at 1 May

 

3,591,778

2,185,043

Cash and cash equivalents at 30 April

 

3,384,338

3,591,778

 

Thursfields Legal Limited

Statement of Cash Flows for the Year Ended 30 April 2024

 

Analysis of changes in net debt

At 1 May 2023
£

Financing cash flows
£

At 30 April 2024
£

Cash and cash equivalents

Cash

3,591,778

(207,440)

3,384,338

 

3,591,778

(207,440)

3,384,338

 

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

 

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:
9-10 The Tything
Worcester
Worcestershire
WR1 1HD

 

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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom 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.
 

 

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Judgements

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

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.

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, where debts are assessed and provided against when the recoverability of these balances is considered to be uncertain. The carrying amount is £80,956 (2023 - £83,244).

Amounts recoverable on contracts - The process of assessing amounts recoverable on contracts 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 estimates. The carrying amount is £1,951,467 (2023 - £1,524,924).

Provision for client claims - the provision is based on a review of potential claims and an assessment of any potential settlements that are considered likely as a result of these. The carrying amount is £50,000 (2023 - £60,000).

Dilapidations - a provision of dilapidations on the company's property leases is being built up each year based on the amount expected to be payable at the cessation of the lease. The carrying amount is £18,152 (2023 - £Nil).

Revenue recognition

Turnover 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. Turnover is recognised as contract activity progresses and the right to consideration is secured, except where the final outcome cannot be assessed with reasonable certainty.

Turnover in respect of contingent fee assignments is recognised in the period when the contingent event occurs and collectability of the fee is assured.

Unbilled fee income on individual assignments is included as amounts recoverable on contracts within debtors.

Tax

The tax expense for the year comprises current and deferred tax. Corporation 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 income 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.

 

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

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

Land and buildings

No depreciation

Leasehold improvements

10% straight line basis

Computer equipment

33% straight line basis

Office equipment

20% straight line basis

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

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.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

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 5 years

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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 clients 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.

 

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Disbursements

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

Work in progress

Work in progress is valued at the lower of cost and net realisable value. The value represents the time spent on matters in progress at the firm’s billing rates, reduced to realisable value.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

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 distributions to the Company’s shareholders are 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.

 

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

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.

 

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

 

3

Turnover

The analysis of the company's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Rendering of services

11,126,394

10,756,429

Other revenue

105,587

94,645

11,231,981

10,851,074

The analysis of the company's turnover for the year by market is as follows:

2024
£

2023
£

UK

11,231,981

10,851,074

 

4

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

74,098

88,618

Operating lease expense - property

371,706

317,631

Operating lease expense - plant and machinery

41,526

35,111

 

5

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

588,898

263,139

 

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

5,209,201

5,168,959

Social security costs

594,712

564,153

Pension costs, defined contribution scheme

96,377

97,147

Other employee expense

27,539

23,130

5,927,829

5,853,389

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Fee earners

64

63

Administration and support

53

54

117

117

 

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

 

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

841,096

924,717

Contributions paid to money purchase schemes

13,661

12,627

854,757

937,344

 

8

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

19,750

-


 

 

9

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

846,313

568,833

UK corporation tax adjustment to prior periods

-

(1,764)

846,313

567,069

Deferred taxation

Arising from origination and reversal of timing differences

(20,450)

(14,696)

Tax expense in the income statement

825,863

552,373

The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

3,265,830

2,800,276

Corporation tax at standard rate

816,458

532,052

Deferred tax credit from unrecognised tax loss or credit

(20,450)

(14,696)

Tax increase from effect of capital allowances and depreciation

29,855

35,017

Total tax charge

825,863

552,373

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Fixed asset timing differences

-

23,386

Short term timing differences

19,485

-

19,485

23,386

 

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

2023

Asset
£

Liability
£

Fixed asset timing differences

-

30,031

Short term timing differences

5,680

-

5,680

30,031

 

10

Intangible assets

Goodwill
 £

Cost or valuation

At 1 May 2023 and at 30 April 2024

1,100,000

Amortisation

At 1 May 2023 and at 30 April 2024

1,100,000

Carrying amount

At 30 April 2023 and 30 April 2024

-

 

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

 

11

Tangible assets

Land and buildings
£

Office equipment
 £

Leasehold improvements
 £

Computer equipment
 £

Total
£

Cost

At 1 May 2023

409,227

195,772

91,928

346,091

1,043,018

Additions

-

6,910

71,523

23,896

102,329

At 30 April 2024

409,227

202,682

163,451

369,987

1,145,347

Depreciation

At 1 May 2023

-

179,102

32,389

289,271

500,762

Charge for the year

-

14,028

11,489

48,581

74,098

At 30 April 2024

-

193,130

43,878

337,852

574,860

Carrying amount

At 30 April 2024

409,227

9,552

119,573

32,135

570,487

At 30 April 2023

409,227

16,670

59,539

56,820

542,256

Included within the net book value of land and buildings above is £409,227 (2023 - £409,227) in respect of freehold land and buildings.
 

 

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

 

12

Investments

2024
£

2023
£

Other investments

207,948

222,472

The balance at 30 April 2024 comprises £36,734 (2023 - £58,000) in respect of the company's capital and current accounts in Thursfields Child Care LLP, £171,210 (2023 - £164,468) in an 9% (2023 - 8%) investment in Meridies Insurance Company Limited and £4 (2023 - £4) share capital in Thursfields (Legal Services) Limited.

Other investments

£

Cost

At 1 May 2023

222,472

Revaluation

45,017

Disposals

(59,541)

At 30 April 2024

207,948

Carrying amount

At 30 April 2024

207,948

At 30 April 2023

222,472

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2024

2023

Subsidiary undertakings

Thursfields (Legal Services) Limited

Ordinary shares

100%

100%

Thursfields (Legal Services) Limited is dormant. The profit for the period was £nil and the aggregate amount of capital and reserves at the end of the period was £491,109. Consolidated accounts have not been prepared given that Thursfields (Legal Services) Limited is dormant and would be immaterial on consolidation. Thursfields (Legal Services) Limited will re-submit accounts for the year ended 30 April 2024 with an AA06 audit exemption by parental guarantee form.

 

13

Debtors

2024
 £

2023
 £

Trade debtors

518,840

474,357

Other debtors

2,825

-

Prepayments

264,240

283,721

Amounts recoverable on long term contracts

1,951,467

1,524,924

2,737,372

2,283,002

 

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

 

14

Creditors

Note

2024
 £

2023
 £

Due within one year

 

Trade creditors

 

92,291

23,148

Social security and other taxes

 

629,465

588,036

Other creditors

 

552,023

518,538

Accrued expenses

 

334,868

317,040

Corporation tax liability

9

451,254

317,018

 

2,059,901

1,763,780

 

15

Deferred tax and other provisions

Dilapidations provision
£

Deferred tax
£

Client claims provisions
£

Total
£

At 1 May 2023

18,152

3,901

150,000

172,053

At 30 April 2024

18,152

3,901

150,000

172,053

 

16

Pension and other schemes

Defined contribution pension scheme

The company 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 £96,377 (2023 - £97,147).

 

17

Share capital

Allotted, called up and fully paid shares

 

2024

2023

 

No.

£

No.

£

Ordinary 'A' Shares of £0.001 each

3,750

3.750

3,750

3.750

Ordinary 'B' Shares of £0.001 each

4,053

4.053

4,053

4.053

Ordinary 'C' Shares of £0.001 each

900

0.900

900

0.900

Ordinary 'D' Shares of £0.001 each

900

0.900

900

0.900

Ordinary 'E' Shares of £0.001 each

6,753

6.753

6,753

6.753

Ordinary 'F' Shares of £0.001 each

6,753

6.753

6,753

6.753

Ordinary 'G' Shares of £0.001 each

3,750

3.750

3,750

3.750

Ordinary 'H' Shares of £0.001 each

6,753

6.753

6,753

6.753

Ordinary 'I' Shares of £0.001 each

6,753

6.753

6,753

6.753

Ordinary 'J' Shares of £0.001 each

900

0.900

900

0.900

Ordinary 'K' Shares of £0.001 each

3,735

3.735

3,735

3.735

 

45,000

45

45,000

45

 

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

 

18

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2024
£

2023
£

Not later than one year

184,136

233,115

Later than one year and not later than five years

297,785

632,856

Later than five years

-

52,811

481,921

918,782

The amount of non-cancellable operating lease payments recognised as an expense during the year was £292,607 (2023 - £300,165).

 

19

Dividends

2024
 £

2023
 £

Dividends paid

2,563,153

638,000

 

20

Related party transactions

Summary of transactions with key management

At 30 April 2024, the company owed the directors £37,339 (2023: £6,970) in the form of a director's loan account. The loan is interest free and repayable on demand

The company paid rent of £89,665 (2023: £80,753) to Thursfields Property Holdings Limited during the year. G Burge, A Gibb, M O'Hara, S Kitching-Miller and J Warrilow are directors of Thursfields Property Holdings Limited. There were no amounts outstanding at 30 April 2024 (2023: £nil).

 

 

21

Post balance sheet events

During the year ended 30 April 2024, the company was controlled by its shareholders, with no one single controlling party. On 24 July 2024, the shareholders entered into a contract to sell the entire issued share capital of the company to Knights Professional Services Limited, with an expected completion date of 14 September 2024.