Company registration number 07627457 (England and Wales)
MY PENSION EXPERT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
MY PENSION EXPERT LIMITED
COMPANY INFORMATION
Directors
Mr A P Megson
Ms B Dunlop
Ms L Megson
Mr A Stewart
(Appointed 31 July 2023)
Mr A Strong
(Appointed 23 January 2023)
Company number
07627457
Registered office
Colonnades House
Duke Street
Doncaster
England
DN1 3BW
Auditor
Hentons
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
Bankers
Barclays Bank
31 - 38 Queen Street
C4DI Main Building
Hull
HU1 1UU
MY PENSION EXPERT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 22
MY PENSION EXPERT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Principle activities and business review
The principal activity of the company continued to be that of providing independent financial advice on pensions and investments. The company is regulated by the Financial Conduct Authority. There have not been any changes to the principal activity during the year and no changes are planned.
There has been an increase in turnover to £12.6m from £11.2m, driven by increased lead generation spend. Profit before taxation has decreased to £0.8m from £1.4m, due to increased administrative expenses and one-off exceptional costs.
The Balance Sheet shows the Company’s net asset position at the end of the financial year of £8.3m (FY22 £7.5m). The company is debt free and has significant net current assets.
Turnover £12.6m (FY22: £11.2m)
Profit before taxation £0.8m (FY22: £1.4m)
Net assets £8.3m (FY22: £7.5m)
The main financial KPIs are turnover, profit before taxation and net assets as disclosed above. The main non-financial KPIs are Assets Under Administration (‘AUA’) which relates to the total value of assets our clients hold and total number of clients. The Board continually review and monitor the Company’s KPIs.
Key Performance indicators
Macro-economic risk
Despite the turbulent macroeconomic environment, the Company has shown its resilience by managing its costs in line with budget. However, there is the risk that the levels of inflation, the cost-of-living crisis, wage inflation and the high interest rates seen throughout 2023 will continue to put pressure on the business and so will need to be managed effectively
Reputational risk
Our priority is to always achieve the best outcome for our clients, delivered through our robust client journey. However, there is a risk that we fail to provide quality service to our clients affecting the Company’s reputation.
Regulatory risk
Regulation within the financial services sector has become more demanding of firms, the introduction of Consumer Duty is prime example of this. Therefore, the risk is the regulatory expectations of both current and new regulation within the financial services sector are not met.
Financial risk management
The Company continues to be cash generative, the Company’s principal financial assets are cash and work in progress. The credit risk associated with cash and work in progress is minimal.
MY PENSION EXPERT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Other information and explanations
Future developments
The Company aims to continue to grow the business organically by investing in the infrastructure, its people and our quality service.
Mr A Stewart
Director
3 September 2024
MY PENSION EXPERT 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 continued to be that of providing retirement advice on pensions and equity release.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C D English
(Resigned 31 July 2023)
Mr A P Megson
Mr D Green
(Resigned 21 July 2023)
Ms B Dunlop
Ms J Darlington
(Resigned 13 October 2023)
Ms L Megson
Ms E Padwick-Graham
(Resigned 21 April 2023)
Mr A Stewart
(Appointed 31 July 2023)
Mr A Strong
(Appointed 23 January 2023)
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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.
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.
MY PENSION EXPERT LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr A Stewart
Director
3 September 2024
MY PENSION EXPERT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MY PENSION EXPERT LIMITED
- 5 -
Opinion
We have audited the financial statements of My Pension Expert Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 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.
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.
MY PENSION EXPERT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MY PENSION EXPERT LIMITED (CONTINUED)
- 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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Our audit procedures to respond to the risks identified included the following:
Reviewing the nature of the industry and sector, the control environment and business performance for the year.
Identifying the laws and regulations the company operates within and enquiring with management if they are aware of any non-compliance issues.
Discussing how and where fraud may occur with all members of the audit engagement team.
In line with all audits under ISAs (UK) we are required to perform tests to respond to the risk of management override. We tested the appropriateness of journal entries, evaluated the judgements made for accounting estimates to assess if any bias, and assessed the rationale behind any significant or unusual transactions.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
MY PENSION EXPERT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MY PENSION EXPERT LIMITED (CONTINUED)
- 7 -
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.
Chris Howitt
Senior Statutory Auditor
For and on behalf of Hentons
3 September 2024
Chartered Accountants
Statutory Auditor
Northgate
118 North Street
Leeds
West Yorkshire
LS2 7PN
MY PENSION EXPERT LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
12,557,382
11,194,074
Cost of sales
(4,804,529)
(3,808,143)
Gross profit
7,752,853
7,385,931
Administrative expenses
(6,256,772)
(5,736,480)
Operating profit
4
1,496,081
1,649,451
Interest receivable and similar income
8
36,509
6,384
Interest payable and similar expenses
9
(65,913)
(119,749)
Exceptional costs
(691,619)
(135,398)
Profit before taxation
775,058
1,400,688
Tax on profit
10
(135,341)
38,976
Profit for the financial year
639,717
1,439,664
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MY PENSION EXPERT LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
639,717
1,439,664
Other comprehensive income
-
-
Total comprehensive income for the year
639,717
1,439,664
MY PENSION EXPERT LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
11
989,641
801,216
Tangible assets
12
43,738
56,923
1,033,379
858,139
Current assets
Work in progress
13
5,027,340
4,195,765
Debtors
14
3,100,808
1,873,270
Cash at bank and in hand
978,012
2,628,998
9,106,160
8,698,033
Creditors: amounts falling due within one year
15
(1,777,786)
(2,090,075)
Net current assets
7,328,374
6,607,958
Total assets less current liabilities
8,361,753
7,466,097
Provisions for liabilities
Deferred tax liability
16
255,939
(255,939)
-
Net assets
8,105,814
7,466,097
Capital and reserves
Called up share capital
18
3,794,374
3,794,374
Profit and loss reserves
4,311,440
3,671,723
Total equity
8,105,814
7,466,097
The financial statements were approved by the board of directors and authorised for issue on 3 September 2024 and are signed on its behalf by:
Mr A Stewart
Director
Company Registration No. 07627457
MY PENSION EXPERT 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
60
2,232,059
2,232,119
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,439,664
1,439,664
Issue of share capital
18
3,794,314
-
3,794,314
Balance at 31 December 2022
3,794,374
3,671,723
7,466,097
Year ended 31 December 2023:
Profit and total comprehensive income
-
639,717
639,717
Balance at 31 December 2023
3,794,374
4,311,440
8,105,814
MY PENSION EXPERT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information
My Pension Expert Limited is a private company limited by shares incorporated in England and Wales. The registered office is Colonnades House, Duke Street, Doncaster, England, DN1 3BW.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Project Impetus Topco Limited. These consolidated financial statements are available from its registered office and Companies House.
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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
MY PENSION EXPERT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
Revenue from the provision of financial advice is recognised in the period in which the services are provided, in accordance with the stage of completion of the client agreement. Stage of completion is determined by the value of services provided at the balance sheet date as a proportion of the total value of work to be undertaken.
Revenue is recognised when it can be measured reliably, it is probable that the economic benefits will be received, the stage of completion can be measured reliably, and the costs incurred and costs to complete can be measured reliably.
Revenue from the provision of ongoing financial advice to the client, which is dependent on the stage of completion at the balance sheet date, is recognised as revenue and is included in the Work in Progress debtor on the balance sheet. The costs incurred at each stage of completion can be measured reliably.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Development costs
20% on cost
Website costs
20% on cost
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
20% on cost
Computer equipment
33.3% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Work in progress
Work in progress is the value of advice fees due on policies that have not yet been completed with the pension or equity release provider but where the client has returned an approved application pack detailing the products to be written. An allowance is then made for cases that are not taken up.
MY PENSION EXPERT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.8
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 insignificant risk of changes in value.
1.9
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
MY PENSION EXPERT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
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.
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.
MY PENSION EXPERT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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
2023
2022
£
£
Other revenue
Interest income
36,509
6,384
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
Depreciation of owned tangible fixed assets
28,417
103,042
Amortisation of intangible assets
303,101
171,407
Operating lease charges
3,164
2,251
MY PENSION EXPERT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
81
71
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
3,393,100
2,544,535
Social security costs
400,830
307,292
Pension costs
106,714
77,525
3,900,644
2,929,352
6
Exceptional item
2023
2022
£
£
Expenditure
Legal fees
107,445
129,807
Redundancy costs
65,993
5,591
Other exceptional items
456,090
-
Recruitment
30,873
-
Client compensation
31,218
-
691,619
135,398
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
475,048
427,129
Company pension contributions to defined contribution schemes
10,007
9,393
485,055
436,522
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
36,509
6,384
MY PENSION EXPERT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
9
Interest payable and similar expenses
2023
2022
£
£
Other interest on financial liabilities
65,913
Other interest
119,749
65,913
119,749
10
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
(120,598)
Deferred tax
Origination and reversal of timing differences
255,939
(38,976)
Total tax charge/(credit)
135,341
(38,976)
The actual charge/(credit) 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
775,058
1,400,688
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
147,261
266,131
Unutilised tax losses carried forward
(147,261)
(300,301)
Permanent capital allowances in excess of depreciation
(120,598)
(43,782)
Deferred tax adjustment
255,939
38,976
Taxation charge/(credit) for the year
135,341
(38,976)
MY PENSION EXPERT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Intangible fixed assets
Development costs
Website costs
Total
£
£
£
Cost
At 1 January 2023
1,417,500
128,343
1,545,843
Additions
464,126
27,400
491,526
At 31 December 2023
1,881,626
155,743
2,037,369
Amortisation and impairment
At 1 January 2023
731,397
13,230
744,627
Amortisation charged for the year
273,992
29,109
303,101
At 31 December 2023
1,005,389
42,339
1,047,728
Carrying amount
At 31 December 2023
876,237
113,404
989,641
At 31 December 2022
686,103
115,113
801,216
12
Tangible fixed assets
Furniture and fittings
£
Cost
At 1 January 2023
585,397
Additions
15,232
At 31 December 2023
600,629
Depreciation and impairment
At 1 January 2023
528,474
Depreciation charged in the year
28,417
At 31 December 2023
556,891
Carrying amount
At 31 December 2023
43,738
At 31 December 2022
56,923
13
Stocks
2023
2022
£
£
Work in progress
5,027,340
4,195,765
MY PENSION EXPERT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
44,828
1,406
Corporation tax recoverable
120,597
50,766
Amounts owed by group undertakings
2,431,314
1,386,799
Other debtors
144,536
101,521
Prepayments and accrued income
359,533
332,778
3,100,808
1,873,270
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,370,747
1,264,982
Taxation and social security
13,729
Other creditors
142,034
478,854
Accruals and deferred income
265,005
332,510
1,777,786
2,090,075
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Tax losses
255,939
-
2023
Movements in the year:
£
Liability at 1 January 2023
-
Charge to profit or loss
255,939
Liability at 31 December 2023
255,939
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.
MY PENSION EXPERT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
106,714
77,525
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Authorised
Ordinary shares of £1 each
3,794,374
3,794,374
3,794,374
3,794,374
Issued and fully paid
Ordinary shares of £1 each
3,794,374
3,794,374
3,794,374
3,794,374
19
Contingent liabilities
At 29 July 2022, a composite cross company guarantee structure came into existence between Project Impetus TopCo Limited, Project Impetus BidCo Limited, My Money Expert Limited, My Pension Expert Limited and Lead Management Services Limited. The aggregate amount outstanding under this agreement is £10,000,000.
20
Capital commitments
As at 31 December 2022, the directors confirmed that the company has no capital commitments.
21
Related party transactions
The company has taken advantage of the exemption in FRS 102 (Section 33) ''Related Party Disclosure'' and has not disclosed transactions with group undertakings where the company is a 100% subsidiary.
22
Events after the reporting date
On 28 May 2024 the Company acquired 100% of the share capital of Tenet & You Limited.
23
Ultimate controlling party
The Company is a wholly owned subsidiary of My Money Expert Limited, a Company incorporated in England and Wales. The directors consider that Project Impetus Topco Limited, also a Company incorporated in England and Wales, is the Company's ultimate parent undertaking and controlling party. Project Impetus Topco Limited is the smallest and largest group in which the results of the Company are consolidated. Copies of the financial statements of Project Impetus Topco Limited are available from Floor 4, Colonnades House, Duke Street, DN1 3BW.
MY PENSION EXPERT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
24
Controlling party
The immediate and ultimate parent company is considered to be Project Impetus TopCo Limited, a company incorporated in England and Wales.
The smallest and largest group of undertakings for which group accounts have been drawn up is that headed by Project Impetus TopCo Limited. Copies of Group financial statements are available from Floor 4, Colonnades House, Duke Street, Doncaster, DN1 3BW.
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