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
Acuity Law Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 30 November 2023






Acuity Law Limited

Company Information
for the Year Ended 30 November 2023







DIRECTORS: S R Berry
R L Sellek
H Hitchcock





SECRETARY: Acuity Secretaries Limited





REGISTERED OFFICE: 3 Assembly Square
Britannia Quay
Cardiff Bay
Cardiff
CF10 4PL





REGISTERED NUMBER: 07545730 (England and Wales)





AUDITORS: BPU Limited
Chartered Accountants
Statutory Auditor
Radnor House
Greenwood Close
Cardiff Gate Business Park
Cardiff
CF23 8AA

Acuity Law Limited (Registered number: 07545730)

Strategic Report
for the Year Ended 30 November 2023


The directors present their strategic report for the year ended 30 November 2023.

PRINCIPAL ACTIVITY
The principal activity of the business is the provision of legal services to commercial clients, which includes supplying legal advice and technology led products to facilitate legal and business processes.

REVIEW OF BUSINESS
The 2022/2023 financial year has seen the firm expand headcount and geographical reach. We have been successful in attracting new talent into our employed division and our team of self-employed consultant partners. At the same time we have opened a new office in Birmingham and widened our service offering with more specialist skills across the firm. A particular success has been our healthcare sector team which has a national reputation and is particularly strong in the dentistry sub-sector.

We continue to invest in our "professional platform" to attract skilled professional talent and that is through a mix of technology and softer professional resources. We believe that Acuity Law offers senior lawyers a great environment to prosper both financially and professionally. We have an innovative remuneration structure that allows both employed and consultant partners to share in the profits of the work they deliver. At the junior level, we focus on nurturing and developing talent, so that we can grow the next generation of top business lawyers.

We plan to grow revenues over the next few years by organic growth and lateral hires. We see plenty of opportunities to take on new partners from firms under financial pressure or where other firms cannot offer the professional support that we provide. We will only do this where the partners have strong individual reputations and have skills that will be attractive to our commercial / business clients.

Key Performance Indicators (KPIs):

During the 2022/23 financial year we enjoyed strong growth and maintained margin as reflected in the following KPIs which are relative to the 2021/22 financial year:

- Turnover increased by 11%.
- Our gross profit decreased slightly by 0.9% and our gross profit margin is at a healthy 44%.
- Our total headcount (including consultants engaged by the firm) increased by 21%.
- The total number of consultant partners increased to 39, an increase of 11%.


Acuity Law Limited (Registered number: 07545730)

Strategic Report
for the Year Ended 30 November 2023

PRINCIPAL RISKS AND UNCERTAINTIES
Over the course of the 2023/24 financial year we saw a retraction of investment by many of our business clients and especially in the commercial property sector, where high costs of finance and the impact of inflation on materials caused clients to scale back development plans. However, this has been mitigated by growth in some of our key sectors such as healthcare and residential development.

Like most other legal businesses we have seen wage pressures and we gave pay rises in the 3%-6% range at the end of the financial year with healthy bonuses to those lawyers who delivered top results in the year.

We have noted an increase in stressed situations with our client base, and this has led to an increase in bad debts. However at 2.8% of total revenues we have been able to avoid any material impact on our financial well-being.

FUTURE DEVELOPMENTS
We see the opportunities presented by technology as key to our continued growth and success. We have made significant investment into our client facing tech-interface and we plan to roll out some market leading solutions for our clients in the next 12 months. This will enable our lawyers to work more efficiently and for clients to have better access to legal solutions. We hope this will help drive subscription revenues.

We continue to grow our professional services that complement our core legal expertise, and these include regulatory advice, corporate broking, and training services. We have strong client retention, and the ability to package solutions for clients and to develop additional revenue streams. We have seen strong results from our "alliance partner" network which is a network of third party businesses with whom we work and encourage cross selling to clients.

We see real value in the "Acuity Law" brand, and it continues to build traction across the United Kingdom as our geographic footprint grows.

THIS REPORT WAS APPROVED BY THE BOARD:





S R Berry - Director


30 August 2024

Acuity Law Limited (Registered number: 07545730)

Report of the Directors
for the Year Ended 30 November 2023


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

DIVIDENDS
The total distribution of dividends for the year ended 30 November 2023 was £500,000 (2022 -
£1,281,667).

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

S R Berry
R L Sellek
H Hitchcock

Other changes in directors holding office are as follows:

E L Finley - resigned 30 November 2023
P W Lowe - resigned 30 November 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). 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.

Acuity Law Limited (Registered number: 07545730)

Report of the Directors
for the Year Ended 30 November 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.

THIS REPORT WAS APPROVED BY THE BOARD:





S R Berry - Director


30 August 2024

Report of the Independent Auditors to the Members of
Acuity Law Limited


Opinion
We have audited the financial statements of Acuity Law Limited (the 'company') for the year ended 30 November 2023 which comprise the Profit & Loss Account, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 November 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.

Report of the Independent Auditors to the Members of
Acuity Law Limited


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.

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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Report of the Independent Auditors to the Members of
Acuity Law Limited


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

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risks of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.

The laws and regulations that we determined were most significant to the company were the Companies Act, UK Corporate Tax Laws, Employment Laws, the Data Protection Act, SRA Regulations and Money Laundering Laws.

We obtained an understanding of how the company is complying with those laws and regulations by making enquiries of the management and those charged with governance, and corroborated these enquiries through our review of board minutes and review of legal and professional spend for the year.

We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. We addressed the risk of management override of internal controls and assessed the effectiveness of the controls that management has in place to prevent and detect fraud, including testing of manual journals and evaluating the assumptions and judgements made by management in its significant accounting estimates.

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

Report of the Independent Auditors to the Members of
Acuity Law Limited


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




Nicholas Matthew Toye FCA (Senior Statutory Auditor)
for and on behalf of BPU Limited
Chartered Accountants
Statutory Auditor

30 August 2024

Acuity Law Limited (Registered number: 07545730)

Profit & Loss Account
for the Year Ended 30 November 2023

2023 2022
Notes £    £   

TURNOVER 16,655,793 15,006,687

Cost of sales (9,371,501 ) (7,654,324 )
GROSS PROFIT 7,284,292 7,352,363

Administrative expenses (5,406,830 ) (4,288,538 )
1,877,462 3,063,825

Other operating income 40,000 40,000
OPERATING PROFIT 3 1,917,462 3,103,825

Interest receivable & similar income 85,049 7,638
2,002,511 3,111,463

Interest payable and similar
expenses

4

(127,340

)

(37,421

)
PROFIT BEFORE TAXATION 1,875,171 3,074,042

Tax on profit 5 (524,457 ) (670,016 )
PROFIT FOR THE FINANCIAL YEAR 1,350,714 2,404,026

Acuity Law Limited (Registered number: 07545730)

Other Comprehensive Income
for the Year Ended 30 November 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 1,350,714 2,404,026


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,350,714

2,404,026

Acuity Law Limited (Registered number: 07545730)

Balance Sheet
30 November 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 - 176,667
Tangible assets 8 267,921 251,991
Investments 9 1,413,933 726,643
1,681,854 1,155,301

CURRENT ASSETS
Work in progress 10 1,937,822 2,530,196
Debtors 11 6,911,794 6,486,312
Cash at bank 1,847,687 1,710,025
10,697,303 10,726,533
CREDITORS
Amounts falling due within one year 12 4,044,637 4,005,333
NET CURRENT ASSETS 6,652,666 6,721,200
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,334,520

7,876,501

CREDITORS
Amounts falling due after more than
one year

13

(757,352

)

(1,154,047

)

PROVISIONS FOR LIABILITIES 16 (65,000 ) (61,000 )
NET ASSETS 7,512,168 6,661,454

CAPITAL AND RESERVES
Called up share capital 17 2,926 2,926
Retained earnings 18 7,509,242 6,658,528
SHAREHOLDERS' FUNDS 7,512,168 6,661,454

Acuity Law Limited (Registered number: 07545730)

Balance Sheet - continued
30 November 2023


The financial statements were approved by the Board of Directors and authorised for issue on 30 August 2024 and were signed on its behalf by:





S R Berry - Director


Acuity Law Limited (Registered number: 07545730)

Statement of Changes in Equity
for the Year Ended 30 November 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 December 2021 2,926 5,536,169 5,539,095

Changes in equity
Dividends - (1,281,667 ) (1,281,667 )
Total comprehensive income - 2,404,026 2,404,026
Balance at 30 November 2022 2,926 6,658,528 6,661,454

Changes in equity
Dividends - (500,000 ) (500,000 )
Total comprehensive income - 1,350,714 1,350,714
Balance at 30 November 2023 2,926 7,509,242 7,512,168

Acuity Law Limited (Registered number: 07545730)

Notes to the Financial Statements
for the Year Ended 30 November 2023


1. 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.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

This is on the basis that this will be included within the consolidated accounts of Acuity Group Law Limited, the ultimate controlling parent.

Turnover
Turnover is measured at the fair value of the consideration receivable or received excluding discounts, rebates and value added tax in relation to the provision of legal and associated consultancy services.

Goodwill
Goodwill being the amount paid in connection with the acquisition of two businesses in 2018, is being amortised evenly over the estimated useful life of five years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Furniture & fittings - 10% straight line
Computer equipment - 33% straight line

Work in progress
Income due in respect of contracts for uninvoiced ongoing services is recognised by reference to the stage of completion at the year end. The amount of uninvoiced services is shown in the balance sheet as work in progress. Where work is undertaken on a no win no fee basis (also known as conditional fee arrangements) and the outcome is uncertain at the balance sheet date no income is recognised.

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

Current or deferred taxation assets and liabilities are not discounted.

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


Acuity Law Limited (Registered number: 07545730)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023


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

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

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

Pension costs
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.

Investments in subsidiaries and associates
Investments are measured at cost less any impairment.

The cost of investment for Goodman Grant Holdings Limited (now renamed Acuity Project Solutions Limited) includes consideration paid as well as other costs directly connected with funding working capital requirements at the date of acquisition. These other costs have been treated as a distributable capital contribution in Goodman Grant Limited.

2. EMPLOYEES AND DIRECTORS

20232022
£   £   
Wages and salaries7,304,9836,221,372
Social security costs833,427640,795
Other pension costs266,462208,495
8,404,8727,070,662

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

2023

2022

Employees12093


2023 2022
£    £   
Directors' remuneration 943,104 730,000
Directors' pension contributions to money purchase schemes 34,083 33,250

Acuity Law Limited (Registered number: 07545730)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023


2. EMPLOYEES AND DIRECTORS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 5 5

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 262,500 185,000
Pension contributions to money purchase schemes 8,750 6,000

3. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Depreciation - owned assets 83,761 76,264
Goodwill amortisation 176,667 260,000
Audit fees 25,000 25,100
Auditors' fees non audit work 19,744 18,230
Operating Leases - Land and buildings 572,916 576,240
Operating Leases - Equipment Hire 37,596 23,328

4. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 103,216 37,421
Other interest 24,124 -
127,340 37,421

5. 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 520,457 655,016

Deferred tax 4,000 15,000
Tax on profit 524,457 670,016

Acuity Law Limited (Registered number: 07545730)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023


5. TAXATION - continued

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

2023 2022
£    £   
Profit before tax 1,875,171 3,074,042
Profit multiplied by the standard rate of corporation tax in the
UK of 23.011% (2022 - 19%)

431,496

584,068

Effects of:
Expenses not deductible for tax purposes 49,785 31,223
Capital allowances in excess of depreciation (5,226 ) (10,452 )
Adjustments to tax charge in respect of previous periods 3,749 777
Amortisation of Goodwill 40,653 49,400
Deferred Tax movement 4,000 15,000
Total tax charge 524,457 670,016

6. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Paid 500,000 1,281,667

7. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 December 2022
and 30 November 2023 1,300,000
AMORTISATION
At 1 December 2022 1,123,333
Amortisation for year 176,667
At 30 November 2023 1,300,000
NET BOOK VALUE
At 30 November 2023 -
At 30 November 2022 176,667

Acuity Law Limited (Registered number: 07545730)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023


8. TANGIBLE FIXED ASSETS
Furniture Computer
& fittings equipment Totals
£    £    £   
COST
At 1 December 2022 371,556 344,667 716,223
Additions 5,527 94,164 99,691
At 30 November 2023 377,083 438,831 815,914
DEPRECIATION
At 1 December 2022 193,686 270,546 464,232
Charge for year 27,345 56,416 83,761
At 30 November 2023 221,031 326,962 547,993
NET BOOK VALUE
At 30 November 2023 156,052 111,869 267,921
At 30 November 2022 177,870 74,121 251,991

9. FIXED ASSET INVESTMENTS
Unlisted
investments
£   
COST
At 1 December 2022 726,643
Additions 687,290
At 30 November 2023 1,413,933
NET BOOK VALUE
At 30 November 2023 1,413,933
At 30 November 2022 726,643

Acuity Law Limited (Registered number: 07545730)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023


9. FIXED ASSET INVESTMENTS - continued

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

Subsidiaries

Adam Street Group Limited
Registered office: England & Wales
Nature of business: Dormant
%
Class of shares: holding
£1 Ordinary shares 100.00
2023 2022
£    £   
Aggregate capital and reserves 1 1

Maple & Black Law Limited
Registered office: England & Wales
Nature of business: Dormant
%
Class of shares: holding
£1 Ordinary shares 100.00
2023 2022
£    £   
Aggregate capital and reserves 2 2

New LL Limited
Registered office: England & Wales
Nature of business: Dormant
%
Class of shares: holding
£1 Ordinary shares 100.00
2023 2022
£    £   
Aggregate capital and reserves 1 1

Goodman Grant Holdings Limited
Registered office: England & Wales
Nature of business: Holding company
%
Class of shares: holding
£1 Ordinary shares 100.00
2023 27/6/22
£    £   
Aggregate capital and reserves 377 377

Acuity Law Limited (Registered number: 07545730)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023


9. FIXED ASSET INVESTMENTS - continued

Goodman Grant Solicitors Limited
Registered office: England & Wales
Nature of business: Solicitors
%
Class of shares: holding
£1 Ordinary shares 100.00
2023 27/6/22
£    £   
Aggregate capital and reserves 165,162 601,999
(Loss)/profit for the year (436,837 ) 115,598

Associated company

Adam Street Advisers Limited
Registered office: England & Wales
Nature of business: Financial management
%
Class of shares: holding
£1 Ordinary A & B shares 33.00
£1 Ordinary deferred shares 33.00
31/5/23 31/5/22
£    £   
Aggregate capital and reserves 227,517 188,903
Profit/(loss) for the year 38,614 (1,367 )

10. WORK IN PROGRESS
2023 2022
£    £   
Work-in-progress 1,937,822 2,530,196

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 3,838,586 3,086,971
Amounts owed by group undertakings 2,146,617 2,382,738
Other debtors 100,123 157,613
Prepayments and accrued income 826,468 858,990
6,911,794 6,486,312

Acuity Law Limited (Registered number: 07545730)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023


12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 14)
300,000

300,000
Trade creditors 308,593 738,658
Corporation tax 533,384 355,256
Social security and other taxes 210,853 184,779
VAT 900,259 646,315
Other creditors 471,602 105,841
Accruals and deferred income 1,319,946 1,674,484
4,044,637 4,005,333

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN
ONE YEAR
2023 2022
£    £   
Bank loans (see note 14) 725,000 1,025,000
Other creditors 32,352 129,047
757,352 1,154,047

14. LOANS

The CBIL bank loan is repayable from May 22 for a period of 60 months with the interest rate applicable being 2.51% above the Bank of England base rate.

15. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 544,884 496,560
Between one and five years 615,216 912,250
In more than five years - 43,920
1,160,100 1,452,730

16. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 65,000 61,000

Acuity Law Limited (Registered number: 07545730)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023


16. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 December 2022 61,000
Provided during year 4,000
Balance at 30 November 2023 65,000

The deferred tax liability relates to accelerated capital allowances.

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
2,926 Ordinary £1 2,926 2,926

18. RESERVES
Retained
earnings
£   

At 1 December 2022 6,658,528
Profit for the year 1,350,714
Dividends (500,000 )
At 30 November 2023 7,509,242

19. ULTIMATE PARENT COMPANY

The company's ultimate parent company is Acuity Law Group Limited, a company registered in England and Wales, whose registered office is the same as the company's. Acuity Law Group Limited prepare consolidated financial statements.

Acuity Law Limited (Registered number: 07545730)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023


20. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 30 November 2023 and 30 November 2022:

2023 2022
£    £   
S R Berry
Balance outstanding at start of year 686 143
Amounts advanced - 543
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 686 686

H Hitchcock
Balance outstanding at start of year 14,286 14,286
Amounts repaid - -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 14,286 14,286

21. RELATED PARTY DISCLOSURES

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

Acuity Law Limited (Registered number: 07545730)

Notes to the Financial Statements - continued
for the Year Ended 30 November 2023


21. RELATED PARTY DISCLOSURES - continued

a) Related parties : -
Aeron Properties Limited

ai) Loans to related parties
Net value Balance
of supply owed
in year at year end
£    £   
2023
Related parties 34,167 50,000
2022
Related parties - 123,970

b) Associates :-
Adam Street Advisers Limited

bi) Rental of property to related parties
Net value Balance
of supply owed
in year at year end
£    £   
2023
Associates 40,000 -

2022
Associates 40,000 -