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Registration number: 06018868

Litigation Recovery Services Limited

Unaudited Filleted Financial Statements

for the Year Ended 31 December 2023

 

Litigation Recovery Services Limited

Contents

Company Information

1

Balance Sheet

2 to 3

Notes to the Unaudited Financial Statements

4 to 11

 

Litigation Recovery Services Limited

Company Information

Director

Mr Alan Michael Clarke

Registered office

11 Calverhall Way
Ashton-in-Makerfield
Wigan
WN4 9LB

 

Litigation Recovery Services Limited

(Registration number: 06018868)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

17,060

21,904

Investments

5

257,431

271,527

 

274,491

293,431

Current assets

 

Debtors

6

112,677

82,973

Cash at bank and in hand

 

186,649

150,227

 

299,326

233,200

Creditors: Amounts falling due within one year

7

(75,030)

(51,111)

Net current assets

 

224,296

182,089

Total assets less current liabilities

 

498,787

475,520

Creditors: Amounts falling due after more than one year

7

(2,222)

(20,495)

Provisions for liabilities

(22,485)

(19,441)

Net assets

 

474,080

435,584

Capital and reserves

 

Called up share capital

8

10

10

Retained earnings

474,070

435,574

Shareholders' funds

 

474,080

435,584

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

 

Litigation Recovery Services Limited

(Registration number: 06018868)
Balance Sheet as at 31 December 2023

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 9 September 2024
 

.........................................
Mr Alan Michael Clarke
Director

 

Litigation Recovery Services Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
11 Calverhall Way
Ashton-in-Makerfield
Wigan
WN4 9LB

These financial statements were authorised for issue by the director on 9 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
• The amount of revenue can be reliably measured;
• it is probable that future economic benefits will flow to the entity;
• and specific criteria have been met for each of the company's activities.

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.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

 

Litigation Recovery Services Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures, Fittings & Equipment

25% Reducing Balance

Computer Equipment

20% Straight Line

Motor Vehicles

25% Reducing Balance


Other fixed asset investments other than loans
Other fixed asset investments other than loans are initially recognised at their transaction value, being original cost, and are subsequently measured at their fair value at the balance sheet date. The fair value of these assets, units in unit trusts, is determined quarterly by the company’s financial adviser. Any increase or decrease in the fair value of the assets is included in the profit and loss account.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Litigation Recovery Services Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Litigation Recovery Services Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

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.

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.

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.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year, was 4 (2022 - 4).

 

Litigation Recovery Services Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

4

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 January 2023

23,813

22,154

45,967

Additions

815

-

815

At 31 December 2023

24,628

22,154

46,782

Depreciation

At 1 January 2023

18,524

5,539

24,063

Charge for the year

1,505

4,154

5,659

At 31 December 2023

20,029

9,693

29,722

Carrying amount

At 31 December 2023

4,599

12,461

17,060

At 31 December 2022

5,289

16,615

21,904

5

Investments

Other fixed asset investments other than loans

2023
£

2022
£

Valuation at 1 January

271,527

347,821

Fair value adjustments

21,904

(40,294)

Capital withdrawn

(36,000)

(36,000)

Valuation at 31 December

257,431

271,527

The fair value of these investment assets, being units in unit trusts, at 31 December 2023 was £257,431 (2022 - £271,527). The fair value is determined quarterly by the company's financial advisers.

6

Debtors

Current

2023
£

2022
£

Trade debtors

79,836

79,424

Prepayments

2,565

2,691

Other debtors

30,276

858

 

112,677

82,973

 

Litigation Recovery Services Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

7

Creditors

Creditors: amounts falling due within one year

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

9

18,270

3,559

Trade creditors

 

161

675

Taxation and social security

 

49,556

39,959

Accruals and deferred income

 

3,210

3,089

Other creditors

 

3,833

3,829

 

75,030

51,111

Creditors: amounts falling due after more than one year

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

9

2,222

20,495

 

Litigation Recovery Services Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

8

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary Shares of £1 each

10

10

10

10

       

9

Loans and borrowings

Non-current loans and borrowings

2023
£

2022
£

Finance lease liabilities

2,222

20,495

Current loans and borrowings

2023
£

2022
£

Finance lease liabilities

18,270

3,559

10

Dividends

Interim dividends paid

2023
£

2022
£

Interim dividend of £3,600.00 (2022 - £3,300.00) per each Ordinary Shares

36,000

33,000

 

 

11

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £330 (2022 - £594). This represents outstanding commitments for furture minimum lease payments under non-cancellable operating leases.

 

Litigation Recovery Services Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

12

Related party transactions

Transactions with the director

2023

At 1 January 2023
£

Advances to director
£

Repayments by director
£

At 31 December 2023
£

Mr Alan Michael Clarke

Director's loan account, interest free and repayable on demand

858

41,934

(15,471)

27,321

2022

At 1 January 2022
£

Advances to director
£

Repayments by director
£

At 31 December 2022
£

Mr Alan Michael Clarke

Director's loan account, interest free and repayable on demand

(844)

1,702

-

858

Director's remuneration

The director's remuneration for the year was as follows:

2023
£

2022
£

Remuneration

14,557

11,907

Contributions paid to money purchase schemes

32,000

33,000

46,557

44,907

Dividends paid to the director

2023
£

2022
£

Mr Alan Michael Clarke

Dividend Paid on Ordinary Shares

21,600

19,800