Company registration number 11776096 (England and Wales)
HAROLD BENJAMIN SOLICITORS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
HAROLD BENJAMIN SOLICITORS LIMITED
COMPANY INFORMATION
Directors
Vijay Parikh
Marina Vincent
Milli Jones
Raymond Oshry
Robert Souber
Steven Ross
Jonathan Dorman
James Oxley
Niten Chauhan
(Appointed 1 April 2024)
Secretary
Raymond Oshry
Company number
11776096
Registered office
Hygeia House
66-68 College Road
Harrow
Middlesex
England
HA1 1BE
Auditor
KLSA LLP
Kalamu House
11 Coldbath Square
London
EC1R 5HL
HAROLD BENJAMIN SOLICITORS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
HAROLD BENJAMIN SOLICITORS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

Turnover for the year ended 31 December 2023 amounted to £10.23m compared to £10.15m for the previous year and the operating profit for the year was £1.3m compared to £2m in the previous year.

 

The company's net assets, decreased to £1.4m, as at 31st December 2023 (2022: £1.5m), as a result of the profit reduction during the year from trading activities. The company paid dividends in the year of £1,475,222.

 

The directors considered the results at the year end to be satisfactory and intend to pursue strategies that would enhance the growth of the company and result in improved performance.

 

The company continued to serve the strong demand from established, existing clients. There has also been good exposure to new clients.

Principal risks and uncertainties

The company, like all businesses, faces a number of operating risks and uncertainties. There are a small number of risks that could impact the company's long term performance and steps are taken to understand and evaluate these in order to achieve their objective of sustainable growth.

 

The management have risk management processes in place, which are designed to identify, manage and mitigate business risk.

 

Financial risk management objectives and policies

The company has access to various financial instruments that include bank overdrafts, cash and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to ensure smooth running of the business. The main risks arising from the company's financial instruments are as stated below.

 

Liquidity risk

The company aims to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. Short term flexibility is achieved by having access to overdraft facilities.

 

Credit risk

The company strictly monitors amounts outstanding from customers and grants credit only to established customers.

Development and performance

The directors aim to continue with the management policies which have resulted in the company's steady growth in recent years.

Key performance indicators

The directors use both financial and non-financial performance indicators to monitor the company's position.

 

The key financial performance indicators of the company is income £10.23m (2022: £10.15m).

 

The key non-financial performance indicators of the company are clients service and satisfaction, and stakeholder relationships.

 

The directors are of the belief that the monitoring of the above-mentioned indicators is an effective aspect of business performance review.

HAROLD BENJAMIN SOLICITORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

On behalf of the board

Vijay Parikh
Director
2 August 2024
HAROLD BENJAMIN SOLICITORS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

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

Results and dividends

The results for the year are set out on page 8.

Ordinary dividend were paid amounting to £1,475,222 (2022:£1,203,547).The directors do not recommended payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Vijay Parikh
Marina Vincent
Milli Jones
Mina Kakkad
(Resigned 31 July 2024)
Raymond Oshry
Robert Souber
Steven Ross
Jonathan Dorman
James Oxley
Jeremy Mark Lederman
(Resigned 29 September 2023)
Huseyin Mustafa Huseyin
(Resigned 31 March 2023)
Niten Chauhan
(Appointed 1 April 2024)
Auditor

The auditor, KLSA LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual 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:

 

 

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.

HAROLD BENJAMIN SOLICITORS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Vijay Parikh
Director
2 August 2024
HAROLD BENJAMIN SOLICITORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HAROLD BENJAMIN SOLICITORS LIMITED
- 5 -
Opinion

We have audited the financial statements of Harold Benjamin Solicitors Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company’s ability to continue as going concern.

 

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 contained within the annual report. 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. 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 course of 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 our audit:

HAROLD BENJAMIN SOLICITORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HAROLD BENJAMIN SOLICITORS LIMITED
- 6 -
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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

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.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

other management, and from our commercial knowledge and experience of the sector; and

We also considered potential fraud drivers: including financial or other pressures, opportunity, override of controls and personal or corporate motivations. We considered the programmes and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included testing journals, evaluating the business rationale of significant transactions outside the normal course of business and validating the appropriateness of internal controls and significant accounting estimations based on our fraud risk criteria;

 

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

HAROLD BENJAMIN SOLICITORS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HAROLD BENJAMIN SOLICITORS LIMITED
- 7 -

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

We obtained understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those related to the financial reporting framework, tax regulations in the jurisdictions in which the company operates.

 

Based on this understanding we designed our audit procedures to identify non-compliance with laws and regulations. Our procedures involved: making enquiries of management, those responsible for legal and compliance procedures and reviewing other correspondence.

 

We communicated identified fraud risks and non-compliance with laws and regulations with those charged with governance, throughout the audit team and remained alert to any indications throughout the audit.

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

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

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 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.

Shilpa Chheda
Senior Statutory Auditor
For and on behalf of KLSA LLP
2 August 2024
Chartered Accountants
Statutory Auditor
Kalamu House
11 Coldbath Square
London
EC1R 5HL
HAROLD BENJAMIN SOLICITORS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
10,232,887
10,159,599
Direct cost
(5,333,389)
(5,026,065)
Gross profit
4,899,498
5,133,534
Administrative expenses
(3,547,651)
(3,137,863)
Operating profit
4
1,351,847
1,995,671
Interest receivable and similar income
7
510,460
102,138
Interest payable and similar expenses
8
(49,684)
(37,666)
Profit before taxation
1,812,623
2,060,143
Tax on profit
9
(429,363)
(376,313)
Profit for the financial year
1,383,260
1,683,830

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HAROLD BENJAMIN SOLICITORS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
1,383,260
1,683,830
Other comprehensive income
-
-
Total comprehensive income for the year
1,383,260
1,683,830
HAROLD BENJAMIN SOLICITORS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
931,667
1,061,667
Tangible assets
12
94,065
98,583
Investments
13
100,000
-
0
1,125,732
1,160,250
Current assets
Work in progress
15
1,718,772
1,530,580
Debtors
16
1,838,062
1,563,102
Cash at bank and in hand
705,740
1,291,985
4,262,574
4,385,667
Creditors: amounts falling due within one year
17
(3,332,845)
(3,262,127)
Net current assets
929,729
1,123,540
Total assets less current liabilities
2,055,461
2,283,790
Creditors: amounts falling due after more than one year
18
(637,718)
(774,085)
Net assets
1,417,743
1,509,705
Capital and reserves
Called up share capital
21
1,550
1,550
Profit and loss reserves
1,416,193
1,508,155
Total equity
1,417,743
1,509,705
The financial statements were approved by the board of directors and authorised for issue on 2 August 2024 and are signed on its behalf by:
Vijay Parikh
Director
Company Registration No. 11776096
HAROLD BENJAMIN SOLICITORS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1,500
1,027,872
1,029,372
Period ended 31 December 2022:
Profit and total comprehensive income
-
1,683,830
1,683,830
Issue of share capital
21
50
-
50
Dividends
10
-
(1,203,547)
(1,203,547)
Balance at 31 December 2022
1,550
1,508,155
1,509,705
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,383,260
1,383,260
Dividends
10
-
(1,475,222)
(1,475,222)
Balance at 31 December 2023
1,550
1,416,193
1,417,743
HAROLD BENJAMIN SOLICITORS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,030,885
1,626,807
Interest paid
(49,684)
(37,666)
Income taxes paid
(566,795)
(342,608)
Net cash inflow from operating activities
414,406
1,246,533
Investing activities
Purchase of tangible fixed assets
(40,950)
(41,107)
Proceeds from disposal of tangible fixed assets
1,400
-
0
Interest received
510,460
102,138
Net cash generated from investing activities
470,910
61,031
Financing activities
Proceeds from issue of shares
-
0
50
Proceeds from borrowings
178,769
-
0
Repayment of borrowings
-
0
(143,738)
Repayment of bank loans
(175,108)
(307,754)
Dividends paid
(1,475,222)
(1,203,547)
Net cash used in financing activities
(1,471,561)
(1,654,989)
Net decrease in cash and cash equivalents
(586,245)
(347,425)
Cash and cash equivalents at beginning of year
1,291,985
1,639,410
Cash and cash equivalents at end of year
705,740
1,291,985
HAROLD BENJAMIN SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Harold Benjamin Solicitors Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hygeia House, 66-68 College Road, Harrow, Middlesex, England, HA1 1BE.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Turnover

Turnover represents the fair value of professional services provided during the year to clients. Turnover is recognised as contract activity progresses and the right to consideration is earned less disbursements. Fair value reflects the amounts expected to be recoverable from clients and is based on time spend, skills and expertise provided and is shown net of VAT.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

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

 

If, at the Balance Sheet date. completion of contractual obligations is depended on external factors (and thus outside the control of the company), then revenue is recognised only even the event occurs. In such cases, costs incurred up to the Balance Sheet date are carried forward in work in progress.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a straight-line basis over its expected economic life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

HAROLD BENJAMIN SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
25% Reducing Balance
Computers equipment
33% Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

HAROLD BENJAMIN SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.8
Work in progress

Service provided to clients that have not been billed at the balance sheet date have been recognised as revenue. Unbilled revenue is contract assets that is included in work in progress.

1.9
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

HAROLD BENJAMIN SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

HAROLD BENJAMIN SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

Rentals paid under operating leases are charged to the statement of comprehensive income on a straight line basis over the lease term.

1.16

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instruments.

HAROLD BENJAMIN SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.17

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

 

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independent administrated funds.

1.18

Comparatives

There were no changes in comparative figures during the year.

2
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 amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful lives, depreciation methods and residual values of tangible fixed assets and intangible fixed assets

Management reviews the useful lives, depreciation methods and residual values of the items of intangible fixed assets and tangible fixed assets and on a regular basis. During the year, the directors determined no significant changes in the useful lives and residual values. The carrying amounts of intangible fixed assets and tangible fixed assets are disclosed in notes 11 and 12 respectively.

Trade Receivables

Impairment of trade receivables - The directors review the portfolio of trade receivables on an annual basis. In determining whether receivables are impaired, the directors make judgement as to whether there is any evidence indicating that there is a measurable decrease in the estimate future cash flows expected.

3
Turnover
2023
2022
£
£
Fee income
10,232,887
10,159,599
HAROLD BENJAMIN SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
27,800
30,200
Depreciation of owned tangible fixed assets
44,474
30,593
Profit on disposal of tangible fixed assets
(406)
-
Amortisation of intangible assets
130,000
130,000
Operating lease charges
434,457
413,921
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
92
90

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
4,400,030
4,040,834
Social security costs
507,171
473,188
Pension costs
415,737
418,739
5,322,938
4,932,761
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
133,762
137,500
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
510,460
102,138
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
510,460
102,138
HAROLD BENJAMIN SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
49,684
37,666
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
429,363
376,313

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,812,623
2,060,143
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
425,966
391,427
Tax effect of expenses that are not deductible in determining taxable profit
19,983
11,460
Permanent capital allowances in excess of depreciation
(16,586)
(26,574)
Taxation charge for the year
429,363
376,313
10
Dividends
2023
2022
£
£
Final declared
670,167
518,547
Interim declared
805,055
685,000
1,475,222
1,203,547

During the year, interim dividend amounting to total of £805,055 (2022: £685,000) was declared.

 

The directors also propose a final dividend amounting to a total of £670,167 (Final paid 2022: £518,547).

 

The total dividend for the year is therefore £1,475,222 (2023: £1,203,547).

HAROLD BENJAMIN SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
11
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
1,300,000
Amortisation and impairment
At 1 January 2023
238,333
Amortisation charged for the year
130,000
At 31 December 2023
368,333
Carrying amount
At 31 December 2023
931,667
At 31 December 2022
1,061,667
12
Tangible fixed assets
Fixtures and fittings
Computers equipment
Total
£
£
£
Cost
At 1 January 2023
90,020
64,770
154,790
Additions
-
0
40,950
40,950
Disposals
-
0
(1,400)
(1,400)
At 31 December 2023
90,020
104,320
194,340
Depreciation and impairment
At 1 January 2023
35,005
21,202
56,207
Depreciation charged in the year
13,754
30,720
44,474
Eliminated in respect of disposals
-
0
(406)
(406)
At 31 December 2023
48,759
51,516
100,275
Carrying amount
At 31 December 2023
41,261
52,804
94,065
At 31 December 2022
55,015
43,568
98,583
13
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
14
100,000
-
0
HAROLD BENJAMIN SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Fixed asset investments
(Continued)
- 22 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
-
Additions
100,000
At 31 December 2023
100,000
Carrying amount
At 31 December 2023
100,000
At 31 December 2022
-
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Harold Benjamin Trust Corporation Limited
England and wales
Ordinary shares
100.00
15
Work in progress
2023
2022
£
£
Work in progress
1,718,772
1,530,580
16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,252,031
952,005
Other debtors
446
70,444
Prepayments and accrued income
585,585
540,653
1,838,062
1,563,102
HAROLD BENJAMIN SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
19
122,336
135,886
Bank overdrafts
19
487,663
308,894
Trade creditors
56,344
75,395
Amounts owed to group undertakings
100,000
-
0
Corporation tax
238,881
376,313
Other taxation and social security
616,083
575,850
Other creditors
1,615,884
1,676,840
Accruals and deferred income
95,654
112,949
3,332,845
3,262,127

 

18
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
19
269,416
430,974
Other creditors
368,302
343,111
637,718
774,085
19
Loans and overdrafts
2023
2022
£
£
Bank loans
391,752
566,860
Bank overdrafts
487,663
308,894
879,415
875,754
Payable within one year
609,999
444,780
Payable after one year
269,416
430,974

The bank loans and over draft are secured by a debenture in form and substance satisfactory to the bank. The loans are subject to monthly repayments and commercial rates of interest.

 

HAROLD BENJAMIN SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
415,737
418,739

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
1,550
1,550
1,550
1,550
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
435,080
435,080
Between two and five years
1,680,076
1,890,400
In over five years
-
0
240,810
2,115,156
2,566,290
23
Directors' transactions

At the balance sheet date the company owed directors £1,577,189 (2022: £1,675,902).

HAROLD BENJAMIN SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
24
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,383,260
1,683,830
Adjustments for:
Taxation charged
429,363
376,313
Finance costs
49,684
37,666
Investment income
(510,460)
(102,138)
Gain on disposal of tangible fixed assets
(406)
-
Amortisation and impairment of intangible assets
130,000
130,000
Depreciation and impairment of tangible fixed assets
44,474
30,593
Movements in working capital:
Increase in stocks
(188,192)
(114,328)
Increase in debtors
(274,960)
(243,009)
Decrease in creditors
(31,878)
(172,120)
Cash generated from operations
1,030,885
1,626,807
25
Analysis of changes in net funds/(debt)
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,291,985
(586,245)
705,740
Borrowings excluding overdrafts
(875,754)
(3,661)
(879,415)
416,231
(589,906)
(173,675)
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