Company registration number 10905250 (England and Wales)
BURNSALL ASSOCIATES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
BURNSALL ASSOCIATES LIMITED
COMPANY INFORMATION
Directors
Mr N Scrase
Mr R Dent
(Appointed 1 January 2024)
Company number
10905250
Registered office
Gresham House
5-7 St Pauls Street
Leeds
LS1 2JG
Independent auditors
Sagars Accountants Ltd
Gresham House
5-7 St Paul's Street
Leeds
LS1 2JG
BURNSALL ASSOCIATES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
11
Notes to the financial statements
12 - 23
BURNSALL ASSOCIATES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
2023 saw solid progress for Burnsall with the financial performance delivering in line with expectations, a strong customer relationship and a positive outlook for our growth pipeline.
Revenue growth was strong at 21% despite foreign exchange headwinds. Established, recently transitioned and the addition of new partnerships all contributed to revenue generation.
Our business model requires upfront investment in people and travel costs which can take 12-18 months to generate revenue - this is reflected in our admin expenses which increased 58% vs prior year. We expect this investment to generate revenue growth in 2024 and 2025. Additional costs were incurred to set up a US subsidiary that we expect to help strengthen our relationships in the US market and our first charitable donations were made in the communities in which Burnsall operates (£177k).
Corporation tax moved from 19% to 25% on 1 April 2023, an impact of £334k. PAT grew 3% vs prior year, in line with expectations.
Burnsall continues to generate positive cashflows.
Principal risks and uncertainties
The principal risks Burnsall faces today are:
One client. This one customer relationship exposes the business to loss of all revenues in the instance the contract is ended. On December 31st 2023, our contract had twelve months remaining, however contract negotiations were ongoing throughout Q1 2024 and a new contract was signed in May 2024, running through to December 31st 2030. In addition, termination, or a significant erosion in performance of partnerships with this client would have a significant impact on Burnsall revenue generation. To mitigate this risk, Burnsall focused on growing the quantity of deals with a view to dilute the risk, alongside continuous improvement plans to secure existing partnerships.
Key personnel. Our people are our assets, we have a strong reliance on a small number of team members who either generate significant value via revenue generation or are integral in keeping Burnsall operations running smoothly. To mitigate this risk, we revised our bonus scheme to reward enhanced performance and are considering long term incentive plans and growth shares as retention tools.
Uncertainties that Burnsall faces today are:
The company does not have excessive exposure to risks in respect of price, credit, liquidity and cash flow risk. In 2023, Burnsall entered into hedge agreements to provide certainty regarding cashflows from the US. Burnsall also hold bonds and equity investments.
BURNSALL ASSOCIATES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators (KPIs)
In addition to revenue and PAT performance referenced in the ‘review of the business’ section, other core KPIs are as follows:
No of partnerships – this gives an indication of likelihood of future revenue generation. The goal for 2023 was to grow the quantity of projects in the pipeline. At the end of 2022 we had 7 live deals, as of 31st December 2023, live deals had grown by 1 with a strong pipeline of 7 WIP.
Future developments
The directors acknowledge that the 2024 financial year will reflect growth in revenue but a reduction in PAT performance. The PAT performance will be impacted by the new bonus scheme which is expected to pay out at enhanced rates in 2024. Performance excluding bonus payments that are made will be consistent with 2023.
Additional partnerships will be the core driver of growth in revenue, with costs also anticipated to increase due to continued investment in people. The headcount investment will support future revenue growth beyond 2024.
The company is also introducing innovative skillsets to automate ways of working as we grow quickly and streamline governance processes to accommodate a larger workload. This is expected to bring enhanced reporting and insight to our partners and support ongoing value creation.
Mr N Scrase
Director
10 September 2024
BURNSALL ASSOCIATES 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 supply chain consultancy.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £2,209,307. The directors do not recommend payment of a further 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 N Scrase
Mr R Dent
(Appointed 1 January 2024)
Auditor
The auditor, Sagars Accountants Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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.
Strategic report
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.
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.
BURNSALL ASSOCIATES 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 N Scrase
Director
10 September 2024
BURNSALL ASSOCIATES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BURNSALL ASSOCIATES LIMITED
- 5 -
Opinion
We have audited the financial statements of Burnsall Associates Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, 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 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.
BURNSALL ASSOCIATES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BURNSALL ASSOCIATES 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 set out on page 3, 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.
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.
We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of income and posting of unusual journals and complex transactions. We discussed these risks with client management, designed audit procedures to test the timing and recognition of income, tested a sample of journals selected on a risk basis to confirm they were appropriate and reviewed areas of judgement and estimation for indicators of management bias to address these risks.
The organisation is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or litigation. We identified company law, employment law and tax legislation as the areas most likely to have such an effect. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any.
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. This 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.
BURNSALL ASSOCIATES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF BURNSALL ASSOCIATES LIMITED (CONTINUED)
- 7 -
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the company's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director.
Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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.
Other matters which we are required to address
Without qualifying our opinion we draw attention to the Accounting Policies in note 1 to the financial statements and the fact that the comparative information in the accounts was unaudited as the company applied their entitlement to exemption from audit in the prior year.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Ross Preston CA (Senior Statutory Auditor)
For and on behalf of Sagars Accountants Ltd
10 September 2024
Chartered Accountants
Statutory Auditor
Gresham House
5-7 St Pauls Street
Leeds
LS1 2JG
BURNSALL ASSOCIATES LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Unaudited
Notes
£
£
Turnover
3
12,594,447
10,395,884
Administrative expenses
(5,187,096)
(3,286,611)
Operating profit
4
7,407,351
7,109,273
Income from other current asset investments
8
200,205
Other interest receivable and similar income
8
73,290
40,606
Interest payable and similar expenses
9
(56,715)
Change in fair value of investments
10
100,746
-
Profit before taxation
7,724,877
7,149,879
Tax on profit
11
(1,802,150)
(1,379,960)
Profit for the financial year
5,922,727
5,769,919
Retained earnings brought forward
11,738,126
8,273,039
Dividends
12
(2,209,307)
(2,304,832)
Retained earnings carried forward
15,451,546
11,738,126
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.
The notes on pages 12 to 23 form part of these financial statements.
BURNSALL ASSOCIATES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Unaudited
Notes
£
£
£
£
Fixed assets
Tangible assets
13
17,193
19,327
Current assets
Debtors falling due after more than one year
14
1,375,154
Debtors falling due within one year
14
6,538,098
7,069,324
Investments
15
7,350,886
Cash at bank and in hand
2,298,059
6,328,025
17,562,197
13,397,349
Creditors: amounts falling due within one year
16
(2,102,744)
(1,678,450)
Net current assets
15,459,453
11,718,899
Total assets less current liabilities
15,476,646
11,738,226
Provisions for liabilities
Deferred tax liability
17
25,000
(25,000)
-
Net assets
15,451,646
11,738,226
Capital and reserves
Called up share capital
19
100
100
Revaluation reserve
20
75,746
Profit and loss reserves
20
15,375,800
11,738,126
Total equity
15,451,646
11,738,226
The notes on pages 12 to 23 form part of these financial statements.
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 10 September 2024 and are signed on its behalf by:
Mr N Scrase
Director
Company registration number 10905250 (England and Wales)
BURNSALL ASSOCIATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
100
8,273,039
8,273,139
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
5,769,919
5,769,919
Dividends
12
-
-
(2,304,832)
(2,304,832)
Balance at 31 December 2022
100
11,738,126
11,738,226
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
5,922,727
5,922,727
Dividends
12
-
-
(2,209,307)
(2,209,307)
Transfer between profit and loss account and revaluation reserve
-
75,746
(75,746)
-
Balance at 31 December 2023
100
75,746
15,375,800
15,451,646
The notes on pages 12 to 23 form part of these financial statements.
BURNSALL ASSOCIATES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Unaudited
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
6,631,345
6,687,542
Interest paid
(56,715)
Income taxes paid
(1,799,631)
(1,413,960)
Net cash inflow from operating activities
4,774,999
5,273,582
Investing activities
Purchase of tangible fixed assets
(3,565)
(10,315)
Purchase of investment
(7,250,140)
Repayment of loans
384,552
(4,745,451)
Interest received
73,290
40,606
Other income received from investments
200,205
Net cash used in investing activities
(6,595,658)
(4,715,160)
Financing activities
Dividends paid
(2,209,307)
(2,304,832)
Net cash used in financing activities
(2,209,307)
(2,304,832)
Net decrease in cash and cash equivalents
(4,029,966)
(1,746,410)
Cash and cash equivalents at beginning of year
6,328,025
8,074,435
Cash and cash equivalents at end of year
2,298,059
6,328,025
The notes on pages 12 to 23 form part of these financial statements.
BURNSALL ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information
Burnsall Associates Limited is a private company limited by shares incorporated in England and Wales (no. 10905250). The registered office is Gresham House, 5-7 St Pauls Street, Leeds, LS1 2JG.
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 comparative information in the accounts is unaudited as the company applied their entitlement to exemption from audit in the year ended 31 December 2022.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Burnsall Associates Limited is a wholly owned subsidiary of Thorner Lane Limited and the results of Burnsall Associates Limited are included in the consolidated financial statements of Thorner Lane Limited which are available from Gresham House, 5-7 St. Pauls Street, Leeds, LS1 2JG.
1.2
Going concern
The financial statements have been prepared on the basis that the company can continue to operate as a going concern.
The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operations for a period of at least 12 months from the date of approval of the accounts.
The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and 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.
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.
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.
BURNSALL ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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:
Equipment
20% straight line
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.
1.5
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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
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.
BURNSALL ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.7
Financial instruments
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of income and retained earnings.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
1.8
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.
1.9
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.
BURNSALL ASSOCIATES 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.
1.10
Retirement benefits
The company operates a defined contribution plan for it's employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations. The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.
1.11
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
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.
There are no key sources of estimation uncertainty in applying accounting policies in the financial statements.
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Incentive turnover
12,594,447
10,370,884
Consultancy turnover
-
25,000
12,594,447
10,395,884
BURNSALL ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 16 -
2023
2022
£
£
Turnover analysed by geographical market
US turnover
12,594,447
10,370,884
UK turnover
-
25,000
12,594,447
10,395,884
2023
2022
£
£
Other revenue
Interest income
73,290
40,606
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
107,008
(17,487)
Fees payable to the company's auditor for the audit of the company's financial statements
15,995
Depreciation of owned tangible fixed assets
5,699
4,242
Fees paid to the company’s auditor, Sagars Accountants Ltd, for services other than the statutory audit of the company are not disclosed in Burnsall Associates Limited’s accounts since the consolidated accounts of Burnsall Associates Limited’s parent, Thorner Lane Limited, are required to disclose non-audit fees on a consolidated basis.
Burnsall Associates Limited applied their entitlement to exemption from audit in the year ended 31 December 2022 and so no comparative information is disclosed.
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Management
8
6
Admin
7
4
Total
15
10
BURNSALL ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 17 -
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,918,250
1,933,865
Social security costs
323,339
212,372
Pension costs
9,767
4,095
3,251,356
2,150,332
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
243,062
150,000
Remuneration disclosed above include the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
243,062
150,000
The total directors remuneration shown above includes benefits in kind of £93,062 (2022 - £nil).
7
Key management personnel
Key management personnel received remuneration of £1,262,719 (2022: £170,481).
BURNSALL ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
41,768
19,256
Other interest income
31,522
21,350
Total interest revenue
73,290
40,606
Income from fixed asset investments
Income from other fixed asset investments
200,205
Total income
273,495
40,606
Disclosed on the statement of income and retained earnings as follows:
Income from other fixed asset investments
200,205
Other interest receivable and similar income
73,290
40,606
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
41,768
19,256
9
Interest payable and similar expenses
2023
2022
£
£
Other finance costs:
Other interest
56,715
10
Change in fair value of investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Gain on financial assets held at fair value through profit or loss
100,746
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,800,000
1,380,000
Adjustments in respect of prior periods
(22,850)
(40)
Total current tax
1,777,150
1,379,960
BURNSALL ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
2023
2022
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
25,000
Total tax charge
1,802,150
1,379,960
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
7,724,877
7,149,879
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,816,891
1,358,477
Tax effect of expenses that are not deductible in determining taxable profit
8,174
4,215
Tax effect of income not taxable in determining taxable profit
(23,696)
Change in unrecognised deferred tax assets
25,534
(6,518)
Adjustments in respect of prior years
(22,850)
(41)
Other non-reversing timing differences
(588)
Deferred tax adjustments in respect of prior years
(32)
1,565
Under/(over) provided in current year
(1,871)
22,850
Taxation charge for the year
1,802,150
1,379,960
The rate of UK corporation tax increased in April 2023 from 19% to 25%. There were no other factors that may affect future tax charges.
12
Dividends
2023
2022
£
£
Equity dividends - final paid
2,209,307
2,304,832
BURNSALL ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
13
Tangible fixed assets
Equipment
£
Cost
At 1 January 2023
31,845
Additions
3,565
At 31 December 2023
35,410
Depreciation and impairment
At 1 January 2023
12,518
Depreciation charged in the year
5,699
At 31 December 2023
18,217
Carrying amount
At 31 December 2023
17,193
At 31 December 2022
19,327
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
702,505
1,249,864
Amounts owed by group undertakings
79,043
28,463
Other debtors
4,534,348
4,884,868
Prepayments and accrued income
1,222,202
906,129
6,538,098
7,069,324
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
1,375,154
Total debtors
7,913,252
7,069,324
15
Current asset investments
2023
2022
£
£
Investments
7,350,886
Total investments are split between listed equity investments (£1,350,886) and Treasury deposits (£6,000,000). The cost of these investments at 31 December 2023 was £7,250,140 (2022 - £nil). Fair value is determined through quoted market price in an active market.
BURNSALL ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
16
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
41,737
8,062
Corporation tax
692,519
715,000
Other taxation and social security
84,833
54,139
Other creditors
10,496
28,562
Accruals and deferred income
1,273,159
872,687
2,102,744
1,678,450
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Short term timing differences on investments
25,000
-
2023
Movements in the year:
£
Liability at 1 January 2023
-
Charge to profit or loss
25,000
Liability at 31 December 2023
25,000
The deferred tax liability set out above relates to the unrealised gains on the investments held by the company.
18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
9,767
4,095
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.
As at 31 December 2023, contributions unpaid included within other creditors amounted to £294 (2022: nil).
BURNSALL ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
19
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
100
100
100
100
Ordinary shares entitle holders to full rights regarding voting, payment of dividends and distributions.
20
Reserves
Revaluation reserve
Revaluation reserve - This reserve includes the cumulative net change in the financial assets held by the company.
Profit and loss account
Profit and loss account - This reserve records retained earnings and accumulated losses.
21
Related party transactions
The company has taken advantage of the exemption under Financial Reporting Standard 102 not to disclose transactions with entities that are part of the Thorner Lane Limited group of companies on the grounds that all the voting rights of the company are controlled by Thorner Lane Limited and the company's results are included in the consolidated financial statements of Thorner Lane Limited.
22
Directors' transactions
At 31 December 2023, one of the directors owed the company £4,136,777 (2022 - £4,821,328) which is included in other debtors. Interest has been charged on this loan up to and including 31 March 2023.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors Loan Account
2.00
4,821,328
43,926
21,522
(750,000)
4,136,776
4,821,328
43,926
21,522
(750,000)
4,136,776
BURNSALL ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
23
Ultimate controlling party
The immediate parent is Thorner Lane Limited by virtue of their 100% share ownership of the Company.
Mr N Scrase is the ultimate controlling party by virtue of his shareholding in Thorner Lane Limited.
The company's results are included in the consolidated accounts of Thorner Lane Limited. The
registered office and of Thorner Lane Limited is Gresham House, 5-7 St. Pauls Street, Leeds, LS1 2JG.
24
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
5,922,727
5,769,919
Adjustments for:
Taxation charged
1,802,150
1,379,960
Finance costs
56,715
Investment income
(273,495)
(40,606)
Depreciation and impairment of tangible fixed assets
5,699
4,242
Other gains and losses
(100,746)
-
Movements in working capital:
Increase in debtors
(1,228,480)
(850,922)
Increase in creditors
446,775
424,949
Cash generated from operations
6,631,345
6,687,542
25
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
6,328,025
(4,029,966)
2,298,059
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