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REGISTERED NUMBER: 08058015 (England and Wales)















TALBOTS LAW LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Statement of Financial Position 9

Statement of Changes in Equity 10

Statement of Cash Flows 11

Notes to the Statement of Cash Flows 12

Notes to the Financial Statements 14


TALBOTS LAW LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: Mrs M.E. Morgan
Mr A.E. Wakeman
Mr J.E. Gwilliams
Mr P.W.A. Hill
Ms L.M. Jones
Mrs R.E. Pardoe
Mrs J. Flint
Mr D.A. Hodgetts
Mr A. Vigus
Mr P.A. Patel
Ms J. Bains
Mr J.W. Wright
Mrs N.E. Reeve





REGISTERED OFFICE: Morgan House
25-27 Hagley Road
Stourbridge
West Midlands
DY8 1QH





REGISTERED NUMBER: 08058015 (England and Wales)





AUDITORS: Folkes Worton LLP
Chartered Accountants and Statutory Auditor
15-17 Church Street
Stourbridge
West Midlands
DY8 1LU

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


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

REVIEW OF BUSINESS
The results for the year and financial position of the company are as shown in the annexed financial statements.

The directors consider the key performance indicators to be operating profit and net assets, which communicate the financial performance and strength of the company and are all disclosed within the body of the financial statements.

Since the incorporation of the business, the business has continued to grow. Consistent control of overhead costs has been reflected in the trading results, demonstrating the value of the policies adopted by the company.

From knowledge and information available currently, the directors feel that consistent application of company policies will enable them to continue to compete in the current market.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The company's activities expose it to a number of financial risks including credit risk.

Credit risk
The company's principal financial assets are trade and other receivables. The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparts and customers.

ON BEHALF OF THE BOARD:





Mr D.A. Hodgetts - Director


7 August 2024

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of solicitors.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

Mrs M.E. Morgan
Mr A.E. Wakeman
Mr J.E. Gwilliams
Mr P.W.A. Hill
Ms L.M. Jones
Mrs R.E. Pardoe
Mrs J. Flint
Mr D.A. Hodgetts
Mr A. Vigus
Mr P.A. Patel
Ms J. Bains
Mr J.W. Wright

Other changes in directors holding office are as follows:

Mrs N.E. Reeve - appointed 1 February 2023

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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.

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Folkes Worton LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr D.A. Hodgetts - Director


7 August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TALBOTS LAW LTD


Opinion
We have audited the financial statements of Talbots Law Ltd (the 'company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 31 December 2023 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TALBOTS LAW LTD


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 Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, 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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

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

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

Based on our understanding of the company and its industry, we identified the principal risks of non-compliance with laws and regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks were related to:
- Revenue recognition;
- Existence and valuation of work in progress;
- Existence and valuation of trade receivables;
- Existence and completeness of trade liabilities and accruals;
- Management override of controls;
- The posting of inappropriate journal entries to increase revenue or reduce expenditure;
- Management bias in accounting estimates and judgements; and
- Non-disclosure of transactions and balances with related parties.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
TALBOTS LAW LTD


In response to the above identified risks, audit procedures were designed to enable us to arrive at appropriately drawn conclusions. These audit procedures include;
- Documentation of the income and expenditure recording processes and agreement of a sample of income and expenditure from source to the nominal entries;
- Verification with suppliers of the valuation of trade payables and accruals;
- Review and challenging of journal entries, in particular unusual transactions and account combinations;
- Challenging of assumptions and judgements made by management in their assessment of significant accounting estimates;
- Review of the list of related parties, discussion with management and review of the records of account; and
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely it would be for the inherently limited procedures required by auditing standards to identify it. In addition, as with any audit, there remains a risk of not detecting irregularities as these may include collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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




Nigel Meredith FCA (Senior Statutory Auditor)
for and on behalf of Folkes Worton LLP
Chartered Accountants and Statutory Auditor
15-17 Church Street
Stourbridge
West Midlands
DY8 1LU

7 August 2024

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 24,980,195 21,499,929

Cost of sales 4,379,974 3,965,533
GROSS PROFIT 20,600,221 17,534,396

Administrative expenses 21,014,261 16,351,748
(414,040 ) 1,182,648

Other operating income 3,024,045 733,976
OPERATING PROFIT 4 2,610,005 1,916,624

Interest receivable and similar income 89,276 -
2,699,281 1,916,624

Interest payable and similar expenses 5 300,742 207,933
PROFIT BEFORE TAXATION 2,398,539 1,708,691

Tax on profit 6 555,099 322,718
PROFIT FOR THE FINANCIAL YEAR 1,843,440 1,385,973

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,843,440

1,385,973

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

STATEMENT OF FINANCIAL POSITION
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 3,205,334 3,180,000
Tangible assets 8 884,951 576,807
4,090,285 3,756,807

CURRENT ASSETS
Stocks 9 4,424,726 3,681,233
Debtors 10 4,214,902 2,010,088
Cash at bank and in hand 1,206,353 1,623,365
9,845,981 7,314,686
CREDITORS
Amounts falling due within one year 11 4,482,467 3,472,744
NET CURRENT ASSETS 5,363,514 3,841,942
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,453,799

7,598,749

CREDITORS
Amounts falling due after more than one year 12 (2,494,265 ) (2,564,793 )

PROVISIONS FOR LIABILITIES 16 (197,301 ) (115,163 )
NET ASSETS 6,762,233 4,918,793

CAPITAL AND RESERVES
Called up share capital 17 721 721
Retained earnings 18 6,761,512 4,918,072
SHAREHOLDERS' FUNDS 6,762,233 4,918,793

The financial statements were approved by the Board of Directors and authorised for issue on 7 August 2024 and were signed on its behalf by:





Mr D.A. Hodgetts - Director


TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 721 3,532,099 3,532,820

Changes in equity
Total comprehensive income - 1,385,973 1,385,973
Balance at 31 December 2022 721 4,918,072 4,918,793

Changes in equity
Total comprehensive income - 1,843,440 1,843,440
Balance at 31 December 2023 721 6,761,512 6,762,233

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,141,979 1,103,676
Interest paid (289,943 ) (210,879 )
Interest element of hire purchase or finance
lease rental payments paid

-

(712

)
Finance costs paid (6,503 ) (4,934 )
Tax paid (593,998 ) (716,791 )
Net cash from operating activities 251,535 170,360

Cash flows from investing activities
Purchase of intangible fixed assets (230,000 ) -
Purchase of tangible fixed assets (499,666 ) (562,419 )
Sale of tangible fixed assets - 143
Interest received 89,276 -
Net cash from investing activities (640,390 ) (562,276 )

Cash flows from financing activities
New loans in year 1,000,000 -
Loan repayments in year (894,526 ) (786,425 )
Capital repayments in year - (44,093 )
Amount withdrawn by directors (133,631 ) (133,848 )
Net cash from financing activities (28,157 ) (964,366 )

Decrease in cash and cash equivalents (417,012 ) (1,356,282 )
Cash and cash equivalents at beginning of
year

2

1,623,365

2,979,647

Cash and cash equivalents at end of year 2 1,206,353 1,623,365

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Profit before taxation 2,398,539 1,708,691
Depreciation charges 514,391 480,730
Profit on disposal of fixed assets - (17,861 )
Finance costs 300,742 207,933
Finance income (89,276 ) -
3,124,396 2,379,493
Increase in stocks (743,493 ) (460,282 )
Increase in trade and other debtors (2,086,203 ) (735,650 )
Increase/(decrease) in trade and other creditors 847,279 (79,885 )
Cash generated from operations 1,141,979 1,103,676

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 1,206,353 1,623,365
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 1,623,365 2,979,647


TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

NOTES TO THE STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023


3. ANALYSIS OF CHANGES IN NET DEBT

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 1,623,365 (417,012 ) 1,206,353
1,623,365 (417,012 ) 1,206,353
Debt
Debts falling due within 1 year (771,083 ) (176,003 ) (947,086 )
Debts falling due after 1 year (2,564,793 ) 70,528 (2,494,265 )
(3,335,876 ) (105,475 ) (3,441,351 )
Total (1,712,511 ) (522,487 ) (2,234,998 )

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

Talbots Law Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of value added tax and other sales related taxes. The fair value of consideration takes into account referral fees paid.

Revenue from the supply of services is recognised when:
- the amount of the revenue can be measured reliably;
- it is probable that the economic benefits associated with the transaction will flow to the entity; and
- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill
Goodwill paid in connection with the acquisition of the business of Talbots Solicitors LLP in 2013, is being amortised evenly over its estimated useful life of twenty years from 1 January 2015.

Goodwill arising on further acquisitions is being amortised over its useful life of five years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Tangible assets are initially measured at cost. After initial recognition, tangible assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Short leasehold-Over the life of the lease
Fixtures and fittings-25% on cost
Motor vehicles -25% on cost
Computer equipment-25% on cost

For assets acquired on the take-over of Talbots Solicitors LLP, depreciation is being charged over the remaining useful life of each asset.

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

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Stocks
Stocks represent consumable supplies and are stated at cost to the company based on the cost of purchase on a first in first out basis.

Work in progress represents legal services performed during the period but not billed until after the accounting date and is valued at the fair value of the consideration receivable in the normal course of business.

At each reporting date, an assessment is made for impairment, being any excess of the carrying amount of stocks and work in progress over its estimated chargeable value less costs to complete. The impairment loss, and any subsequent reversal, is recognised in the statement of comprehensive income.

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 14,278,104 11,378,321
Social security costs 1,228,073 1,016,083
Other pension costs 479,439 364,246
15,985,616 12,758,650

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

Legal services 341 289
Administration and support 75 57
416 346

2023 2022
£    £   
Directors' remuneration 1,348,930 1,057,952
Directors' pension contributions to money purchase schemes 62,688 51,349

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 177,000 165,000
Pension contributions to money purchase schemes 7,000 6,480

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 209,724 153,103
Depreciation - assets on hire purchase contracts or finance leases - 62,692
Profit on disposal of fixed assets - (17,927 )
Goodwill amortisation 304,666 265,000
Auditors' remuneration 9,875 8,830
Auditors' remuneration for non audit work 5,400 5,145

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


5. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 294,239 190,751
Corporation tax interest - 11,536
Leasing - 712
Other interest 6,503 4,934
300,742 207,933

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 472,961 223,666

Deferred tax 82,138 99,052
Tax on profit 555,099 322,718

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

2023 2022
£    £   
Profit before tax 2,398,539 1,708,691
Profit multiplied by the standard rate of corporation tax in the UK of
23.521% (2022 - 19%)

564,160

324,651

Effects of:
Expenses not deductible for tax purposes 28,122 15,828
Capital allowances in excess of depreciation - (7,811 )
Finance lease charges 3,731 (8,378 )
Research and development enhanced expenditure (45,505 ) (29,211 )
Deferred tax increase to 25% enacted rate 4,591 27,639
Total tax charge 555,099 322,718

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


7. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 January 2023 5,300,000
Additions 330,000
At 31 December 2023 5,630,000
AMORTISATION
At 1 January 2023 2,120,000
Amortisation for year 304,666
At 31 December 2023 2,424,666
NET BOOK VALUE
At 31 December 2023 3,205,334
At 31 December 2022 3,180,000

8. TANGIBLE FIXED ASSETS
Fixtures
Short and Computer
leasehold fittings equipment Totals
£    £    £    £   
COST
At 1 January 2023 737,273 273,314 1,085,162 2,095,749
Additions 258,594 130,406 128,868 517,868
Disposals - (87,057 ) (222,267 ) (309,324 )
At 31 December 2023 995,867 316,663 991,763 2,304,293
DEPRECIATION
At 1 January 2023 455,158 139,695 924,089 1,518,942
Charge for year 77,842 56,818 75,064 209,724
Eliminated on disposal - (87,057 ) (222,267 ) (309,324 )
At 31 December 2023 533,000 109,456 776,886 1,419,342
NET BOOK VALUE
At 31 December 2023 462,867 207,207 214,877 884,951
At 31 December 2022 282,115 133,619 161,073 576,807

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


8. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts or finance leases are as follows:
Computer
equipment
£   
COST
At 1 January 2023 601,840
Transfer to ownership (601,840 )
At 31 December 2023 -
DEPRECIATION
At 1 January 2023 601,840
Transfer to ownership (601,840 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 -

9. STOCKS
2023 2022
£    £   
Stocks 9,574 10,332
Work in progress 4,415,152 3,670,901
4,424,726 3,681,233

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 1,357,122 809,549
Other debtors 931,447 91,434
Tax 118,611 -
Prepayments 1,807,722 1,109,105
4,214,902 2,010,088

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 13) 937,014 710,649
Other loans (see note 13) 10,072 60,434
Trade creditors 586,081 343,283
Tax - 2,426
Social security and other taxes 917,320 847,587
Other creditors 90,356 68,672
Directors' loan accounts 53,289 186,920
Accruals 1,888,335 1,252,773
4,482,467 3,472,744

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 13) 2,494,265 2,554,721
Other loans (see note 13) - 10,072
2,494,265 2,564,793

13. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 937,014 710,649
Other loans 10,072 60,434
947,086 771,083

Amounts falling due between one and two years:
Bank loans 943,014 710,649
Other loans - 10,072
943,014 720,721

Amounts falling due between two and five years:
Bank loans 1,551,251 1,844,072

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 552,395 446,789
Between one and five years 1,112,354 1,256,138
In more than five years 7,000 -
1,671,749 1,702,927

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 3,431,279 3,265,370

Bank borrowing is secured on a fixed and floating charge over all assets and undertakings of the company.

The director's loan was secured on a fixed and floating charge over all assets and undertakings of the company.

Hire purchase contracts and finance leases are secured on the assets acquired thereunder.

16. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax
Accelerated capital allowances 197,301 123,409
Other timing differences - (8,246 )
197,301 115,163

Deferred
tax
£   
Balance at 1 January 2023 115,163
Charge to Statement of Comprehensive Income during year 82,138
Balance at 31 December 2023 197,301

TALBOTS LAW LTD (REGISTERED NUMBER: 08058015)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
400,000 A Ordinary 0.1p 400 400
141,000 B Ordinary 0.1p 141 141
180,000 G Ordinary 0.1p 180 180
721 721

18. RESERVES
Retained
earnings
£   

At 1 January 2023 4,918,072
Profit for the year 1,843,440
At 31 December 2023 6,761,512

19. CAPITAL COMMITMENTS
2023 2022
£    £   
Contracted but not provided for in the
financial statements 25,000 -

20. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is the Talbots Law Employee Ownership Trust whose corporate trustee is Talbots Law Employee Ownership Trustee Limited.