Company registration number 04322187 (England and Wales)
RESOLUTION PARTNERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
RESOLUTION PARTNERS LIMITED
COMPANY INFORMATION
Directors
Mr H D B Ridgwell
Mr R N P Simpson
Secretary
Mr H D B Ridgwell
Company number
04322187
Registered office
Room 783
Lloyd's Building
One Lime Street
London
EC3M 7HA
Auditor
Arnold Hill & Co LLP
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
RESOLUTION PARTNERS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 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 - 20
RESOLUTION PARTNERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Introduction and strategy
Resolution Partners was founded by the directors in 2001 as an independent corporate finance advisory business. The company is authorised and regulated by the Financial Conduct Authority in the UK. The principal focus of the business is the provision of mergers and acquisitions, capital raising and strategic advisory services to companies in the UK insurance and financial services sector.
The company’s strategy is to develop the business by continuing to serve its existing corporate clients, winning new ones and assisting its clients to achieve their plans through the provision of high quality advice.
The directors do not anticipate any significant changes to the nature of the company's activities in the forthcoming year.
Principal risks and uncertainties
The board of directors of the company has overall responsibility for the establishment and oversight of the company's risk management framework. The board is responsible for developing and monitoring the company's risk management strategy and policies.
The company is exposed to a range of risks which could affect its financial performance and the achievement of its strategic objectives. These include: Regulatory risk: the ability to meet the company’s ongoing requirements of the Financial Conduct Authority, including capital adequacy and liquidity; Economic risk: the strength and resilience of the UK economy and the impact this has on the confidence of corporate clients to enter into new transactions; and Operational risk: the ability to maintain robust internal controls, systems and processes.
The directors continually review these risks and believe that the company is well placed to manage these and that the business will develop satisfactorily in the future.
Key performance indicators
The company's key performance indicator is turnover. In the year to 31 December 2023, turnover was £7,337,542 (2022: £4,448,824). This reflects an increased number of completed advisory assignments in the year. The profit for the year, after taxation, was in line with expectations and amounted to £2,139,599 (2022: £2,635,192).
S172 Statement
Introduction
The directors consider that they have adhered to the requirements of section 172 of the Companies Act 2006 (the "Act") and have, in good faith, acted in a way that they consider would be most likely to promote the success of the company for the benefit of its members and have had regard to and recognised the importance of considering all stakeholders (as set out in section 172(1)(a-f) of the Act) in its decision making.
Corporate governance framework and stakeholder engagement
For the financial period ended 31 December 2023, the company continued to act in accordance with the corporate governance arrangements which are embedded across the shareholders. These shareholders support the delivery of strategic and business objectives within a framework of best corporate governance practice. The company is clear that good governance and effective communications are essential on a day-to-day basis to protect the reputation and relationships with all its stakeholder community, which includes shareholders, customers, suppliers, regulators and the local communities in which we work.
Decision making
In all decision making, the directors act in good faith in a manner most likely to promote the success of the company, and in doing so always has regard to :
- The likely consequences of any decision in the long term;
- The interests of the company's employees;
- The need to foster the company's business relationships with suppliers, customers and others;
- The impact of the company's operations on the community and the environment;
- The desirability of the company maintaining a reputation for high standards of business conduct;
- The need to act fairly as between members of the company.
RESOLUTION PARTNERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Engagement to stakeholders
In order to meet the strategic objectives of the company, we have developed strong mutually beneficial relationships with suppliers, customers and local communities. The company ensures that such relationships are established and managed in line with the core principles and values of the company. The directors continuously assess the priorities related to customers, local communities and those with whom we do business.
Mr R N P Simpson
Director
8 April 2024
RESOLUTION PARTNERS 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 corporate finance advisory services.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr H D B Ridgwell
Mr R N P Simpson
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £4,650,000 (2022: £nil). The directors do not recommend payment of a further dividend.
Auditor
The auditor, Arnold Hill & Co LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
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
Mr R N P Simpson
Director
8 April 2024
RESOLUTION PARTNERS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and 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.
RESOLUTION PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RESOLUTION PARTNERS LIMITED
- 5 -
Opinion
We have audited the financial statements of Resolution Partners Limited (the 'company') for the year ended 31 December 2023 which comprise 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its result 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.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
RESOLUTION PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RESOLUTION PARTNERS 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:
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 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 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.
RESOLUTION PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RESOLUTION PARTNERS LIMITED
- 7 -
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.
Detection of fraud and breaches of laws and regulations
To identify risks of material misstatement due to fraud, we considered events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to do so. Our approach included:
•
using analytical procedures to identify unusual relationships;
•
reading minutes of company meetings;
•
discussing company policies and procedures on fraud detection and prevention with directors, and enquiring about any knowledge of actual, alleged or suspected fraud.
We communicated identified fraud risks throughout our team and remained alert to any indications of fraud throughout the audit.
To identify risks of material misstatement due to non-compliance with laws and regulations, our approach was as follows:
•
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
•
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations;
•
We considered the nature of the industry, the control environment and business performance, including the key drivers for management's remuneration.
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. We also performed procedures to address the risk of management override of controls and the risk of fraudulent revenue recognition, in particular the risks that revenue is recorded in the wrong period and that management may be in a position to make inappropriate accounting entries. Our procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiries of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
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 is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding non-detection of fraud rather than error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
RESOLUTION PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RESOLUTION PARTNERS LIMITED
- 8 -
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.
Stephanie Evans (Senior Statutory Auditor)
for and on behalf of Arnold Hill & Co LLP
8 April 2024
Chartered Accountants
Statutory Auditor
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
RESOLUTION PARTNERS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
7,337,542
4,448,824
Administrative expenses
(4,694,217)
(1,212,077)
Operating profit
4
2,643,325
3,236,747
Interest receivable and similar income
8
154,093
19,614
Profit before taxation
2,797,418
3,256,361
Tax on profit
9
(657,819)
(621,169)
Profit for the financial year
2,139,599
2,635,192
Total comprehensive profit for the year
2,139,599
2,635,192
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There are no recognised gains and losses other than those passing through the profit and loss account.
RESOLUTION PARTNERS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
63
173
Current assets
Debtors
13
113,144
3,986
Cash at bank and in hand
659,617
3,499,838
772,761
3,503,824
Creditors: amounts falling due within one year
14
(442,848)
(663,603)
Net current assets
329,913
2,840,221
Total assets less current liabilities
329,976
2,840,394
Provisions for liabilities
(16)
(33)
Net assets
329,960
2,840,361
Capital and reserves
Called up share capital
16
50,000
50,000
Profit and loss reserves
279,960
2,790,361
Total equity
329,960
2,840,361
The financial statements were approved by the board of directors and authorised for issue on 8 April 2024 and are signed on its behalf by:
Mr R N P Simpson
Director
Company Registration No. 04322187
RESOLUTION PARTNERS 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
50,000
155,169
205,169
Year ended 31 December 2022:
Profit and total comprehensive income
-
2,635,192
2,635,192
Balance at 31 December 2022
50,000
2,790,361
2,840,361
Year ended 31 December 2023:
Profit and total comprehensive income
-
2,139,599
2,139,599
Dividends
10
-
(4,650,000)
(4,650,000)
Balance at 31 December 2023
50,000
279,960
329,960
RESOLUTION PARTNERS 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
18
2,512,046
3,156,576
Dividends paid
(4,650,000)
Income taxes paid
(856,360)
(174,096)
Net cash (outflow)/inflow from operating activities
(2,994,314)
2,982,480
Investing activities
Interest received
154,093
19,614
Net cash generated from investing activities
154,093
19,614
Net (decrease)/increase in cash and cash equivalents
(2,840,221)
3,002,094
Cash and cash equivalents at beginning of year
3,499,838
497,744
Cash and cash equivalents at end of year
659,617
3,499,838
RESOLUTION PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information
Resolution Partners Limited is a private company limited by shares incorporated in England and Wales. The registered office is Room 783, Lloyd’s Building, One Lime Street, London, EC3M 7HA.
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 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 VAT and other sales related taxes.
In respect of assignments with a fixed and variable element, the fixed part, the retainer, consists of a non returnable fee in connection with the service provided and is recognised in the period to which it relates, in accordance with each contract. Any variable element in the contract represents a success fee and is only recognised in the year of successful completion of the contract and therefore no work in progress is recognised. Consultancy fees are recognised when invoiced.
1.4
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. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit and loss during the period in which they are incurred.
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:
Office equipment
straight line over three years
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.
RESOLUTION PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.6
Cash at bank and in hand
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.
1.7
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, less any impairment. Interest is recognised using the effective interest rate, except for short-term debtors when the recognition of interest would be immaterial.
Basic financial liabilities
Basic financial liabilities, including creditors 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. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method, except for short-term creditors when the recognition of interest would be immaterial.
1.8
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.
RESOLUTION PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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.
1.9
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.
1.10
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.
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.
3
Turnover and other revenue
The turnover is attributable to the provision of corporate finance advisory services.
RESOLUTION PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,000
4,500
Depreciation of owned tangible fixed assets
110
207
Operating lease charges
47,692
34,047
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
8,000
4,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management
2
2
Advisory
1
1
Total
3
3
The key management personnel aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
4,012,101
968,800
Social security costs
557,708
138,183
4,569,809
1,106,983
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
1,983,857
729,461
RESOLUTION PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Directors' remuneration
(Continued)
- 17 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
1,005,779
405,043
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £nil (2022: £nil).
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
154,093
19,614
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
657,702
621,226
Adjustments in respect of prior periods
134
(18)
Total current tax
657,836
621,208
Deferred tax
Other adjustments
(17)
(39)
Total tax charge
657,819
621,169
RESOLUTION PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 18 -
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
2,797,418
3,256,361
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
657,393
618,709
Tax effect of expenses that are not deductible in determining taxable profit
309
2,517
Adjustments in respect of prior years
134
(18)
Movement in deferred tax
(17)
(39)
Taxation charge for the year
657,819
621,169
10
Dividends
2023
2022
£
£
Interim paid
4,650,000
11
Tangible fixed assets
Office Equipment
£
Cost
At 1 January 2023 and 31 December 2023
8,986
Depreciation and impairment
At 1 January 2023
8,813
Depreciation charged in the year
110
At 31 December 2023
8,923
Carrying amount
At 31 December 2023
63
At 31 December 2022
173
RESOLUTION PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
12
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Financial assets measured at amortised cost
105,819
-
Carrying amount of financial liabilities
Measured at amortised cost
11,618
10,078
Financial assets measured at amortised cost comprise trade and other debtors.
Financial liabilities measured at amortised cost comprise trade creditors, other creditors and accruals.
13
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
98,697
Other debtors
2,778
Prepayments and accrued income
11,669
3,986
113,144
3,986
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
387
672
Corporation tax
422,702
621,226
Other taxation and social security
8,528
32,299
Accruals and deferred income
11,231
9,406
442,848
663,603
15
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
16
33
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
RESOLUTION PARTNERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
17
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
30,800
24,717
18
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,139,599
2,635,192
Adjustments for:
Taxation charged
657,819
621,169
Investment income
(154,093)
(19,614)
Depreciation and impairment of tangible fixed assets
110
207
Movements in working capital:
(Increase)/decrease in debtors
(109,158)
2,238
Decrease in creditors
(22,231)
(82,616)
Cash generated from operations
2,512,046
3,156,576
19
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
3,499,838
(2,840,221)
659,617
20
Control
During the year the company was the subject of a corporate reorganisation. Following this the company is majority owned by R.N. Priestley Limited, a company registered in England and Wales. R.N. Priestley Limited prepares group financial statements and copies can be obtained from Companies House. R.N. Priestley Limited is controlled by Mr R N P Simpson who is a director and shareholder of the company.
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