Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-312023-01-01248falseLegal practice251falsefalse 06482867 2023-01-01 2023-12-31 06482867 2022-01-01 2022-12-31 06482867 2023-12-31 06482867 2022-12-31 06482867 2022-01-01 06482867 1 2023-01-01 2023-12-31 06482867 1 2022-01-01 2022-12-31 06482867 5 2023-01-01 2023-12-31 06482867 5 2022-01-01 2022-12-31 06482867 d:CompanySecretary1 2023-01-01 2023-12-31 06482867 d:Director1 2023-01-01 2023-12-31 06482867 d:Director1 2023-12-31 06482867 d:Director2 2023-01-01 2023-12-31 06482867 d:Director3 2023-01-01 2023-12-31 06482867 d:Director4 2023-01-01 2023-12-31 06482867 d:Director5 2023-01-01 2023-12-31 06482867 d:Director6 2023-01-01 2023-12-31 06482867 d:Director7 2023-01-01 2023-12-31 06482867 d:Director8 2023-01-01 2023-12-31 06482867 d:RegisteredOffice 2023-01-01 2023-12-31 06482867 e:Buildings e:LongLeaseholdAssets 2023-01-01 2023-12-31 06482867 e:Buildings e:LongLeaseholdAssets 2023-12-31 06482867 e:Buildings e:LongLeaseholdAssets 2022-12-31 06482867 e:MotorVehicles 2023-01-01 2023-12-31 06482867 e:MotorVehicles 2023-12-31 06482867 e:MotorVehicles 2022-12-31 06482867 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06482867 e:FurnitureFittings 2023-01-01 2023-12-31 06482867 e:FurnitureFittings 2023-12-31 06482867 e:FurnitureFittings 2022-12-31 06482867 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06482867 e:ComputerEquipment 2023-01-01 2023-12-31 06482867 e:ComputerEquipment 2023-12-31 06482867 e:ComputerEquipment 2022-12-31 06482867 e:ComputerEquipment e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06482867 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 06482867 e:Goodwill 2023-01-01 2023-12-31 06482867 e:Goodwill 2023-12-31 06482867 e:Goodwill 2022-12-31 06482867 e:CurrentFinancialInstruments 2023-12-31 06482867 e:CurrentFinancialInstruments 2022-12-31 06482867 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 06482867 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 06482867 e:ReportableOperatingSegment1 2023-01-01 2023-12-31 06482867 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 06482867 e:UKTax 2023-01-01 2023-12-31 06482867 e:UKTax 2022-01-01 2022-12-31 06482867 e:ShareCapital 2023-01-01 2023-12-31 06482867 e:ShareCapital 2023-12-31 06482867 e:ShareCapital 2022-12-31 06482867 e:ShareCapital 2022-01-01 06482867 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 06482867 e:RetainedEarningsAccumulatedLosses 2023-12-31 06482867 e:RetainedEarningsAccumulatedLosses 1 2023-01-01 2023-12-31 06482867 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 06482867 e:RetainedEarningsAccumulatedLosses 2022-12-31 06482867 e:RetainedEarningsAccumulatedLosses 2022-01-01 06482867 e:RetainedEarningsAccumulatedLosses 1 2022-01-01 2022-12-31 06482867 e:AcceleratedTaxDepreciationDeferredTax 2023-12-31 06482867 e:AcceleratedTaxDepreciationDeferredTax 2022-12-31 06482867 d:OrdinaryShareClass1 2023-01-01 2023-12-31 06482867 d:OrdinaryShareClass1 2023-12-31 06482867 d:OrdinaryShareClass1 2022-12-31 06482867 d:FRS102 2023-01-01 2023-12-31 06482867 d:Audited 2023-01-01 2023-12-31 06482867 d:FullAccounts 2023-01-01 2023-12-31 06482867 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 06482867 e:WithinOneYear 2023-12-31 06482867 e:WithinOneYear 2022-12-31 06482867 e:BetweenOneFiveYears 2023-12-31 06482867 e:BetweenOneFiveYears 2022-12-31 06482867 e:MoreThanFiveYears 2023-12-31 06482867 e:MoreThanFiveYears 2022-12-31 06482867 e:Goodwill e:OwnedIntangibleAssets 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 06482867










Ison Harrison Ltd










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
 

COMPANY INFORMATION


Directors
Mr R J Timperley (resigned 18 January 2023)
Mr J L Wearing 
Mr D Mackenzie 
Ms J Bland 
Mr R Coulthard 
Ms S Laughey 
Mr G Naylor 
Mr J Thompson 




Company secretary
J Wearing



Registered number
06482867



Registered office
Duke House
54 Wellington Street

Leeds

LS1 2EE




Independent auditors
Sagars Accountants Ltd
Chartered Accountants & Statutory Auditor

5-7 St Pauls Street

Leeds

West Yorkshire

LS1 2JG





 
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' 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 - 23


 
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The Directors present their Strategic Report for the year ended 31 December 2023.

Business review
 
The principal activity of the Company remains the provision of legal services.
The Company has had another strong performance in its second year as a 100% employee-owned business.  The firm’s employees have really embraced the concept of employee ownership giving a boost to financial performance levels and the culture of the firm. The Company expanded it’s footprint across Yorkshire further with the opening of a new office in Doncaster taking the total number of offices to eighteen throughout the county. The Company also continued to grow not only in the number of offices but with an increased headcount of 273 employees, up from 251 in 2022, both of which contributed to an increase in turnover.
The Company increased its turnover in 2023 to £19,995,937 (£19,322,881 in 2022). The increase in turnover brought with it an increase in profit before distributions and tax to £5,480,671 (£5,183,560 in 2022). This allowed the Trustees of the Company to recommend making a larger profit distribution than that of the previous year of £4,000 per employee. The total amount of profit distributed to employees was £759,600 leaving retained profit after tax at £3,554,643 (£3,536,067 in 2022). 
The Company continued its policy of maintaining strong cash reserves during 2023, which meant that it was able to service the deferred consideration due the Company’s founding directors and make a considerable distribution to employees. At the end of the year cash reserves increased significantly to £7,295,738 (£4,688,345 in 2022). The Company’s strong cash reserves provide a significant advantage in terms of further expansion and investment opportunities.
Following the successful conversion to an employee-owned business the Company has continued to invest in its employees with a programme of enhanced benefits including increased employer pension contributions and private health insurance, helping the Company to attract and retain talent.
The property market remained a challenge throughout 2023 leading the Company to continue its strategy of diversification and development of other areas of the business. The Company increased both its commercial and private client base and despite the challenges of the property market the Company extended its market share and ranked in the top 20 conveyancing firms.
The Company secured a legal aid CAPA contract (Claims Against Public Authorities) during 2023 which will compliment its already reputable PI, Inquests and Civil Liberties department. The Company is one of only a handful of firms in the region and 71 nationwide to hold a CAPA contract.
The Company continues its strategy of organic growth with new offices planned for 2024 in Queensbury and Selby, which would take the number of offices throughout Yorkshire to twenty.

Principal risks and uncertainties
 
Political uncertainty in 2024 and the possible economic impacts that comes with such uncertainty poses a risk to the Company, but the Company is resilient and can adjust quickly to changed circumstances as demonstrated through its resilience and growth over the past few years. The Company continues to strengthen existing relationships and look for new work sources. The property market appears to be bouncing back and the Company is already seeing a significant increase in new instructions.

Financial key performance indicators
 
Net current assets at the balance sheet date were £8,616,571 (£6,387,322 in 2022) and net assets were £9,038,007 (£6,833,364 in 2022).

Page 1

 
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


This report was approved by the board on 23 September 2024 and signed on its behalf.



Mr J L Wearing
Director


Page 2

 
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The profit for the year, after taxation, amounted to £3,554,643 (2022 - £3,536,067).

The directors do not recommend the payment of dividends.

Directors

The directors who served during the year were:

Mr R J Timperley (resigned 18 January 2023)
Mr J L Wearing 
Mr D Mackenzie 
Ms J Bland 
Mr R Coulthard 
Ms S Laughey 
Mr G Naylor 
Mr J Thompson 

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 3

 
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Auditors

Under section 487(2) of the Companies Act 2006Sagars Accountants Ltd will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

This report was approved by the board on 23 September 2024 and signed on its behalf.
 





Mr J L Wearing
Director

Duke House
54 Wellington Street
Leeds
LS1 2EE

Page 4

 
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 
 

Opinion


We have audited the financial statements of  (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Other information


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Page 5

 
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  (CONTINUED)


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the 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.


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 directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the 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.


Page 6

 
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 of income, tested a sample of journals to confirm they were appropriate and reviewed areas of judgement for indicators of management bias to address these risks.
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 on the effectiveness of the internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
• Conclude on the appropriateness of the directors' 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.


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.
 
Page 7

 
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF  (CONTINUED)


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 Solicitors Regulation Authority and employment law 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.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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 Auditors' 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.





Helen Daniels LLB FCA CTA (Senior Statutory Auditor)
  
for and on behalf of
Sagars Accountants Ltd
 
Chartered Accountants & Statutory Auditor
  
5-7 St Pauls Street
Leeds
West Yorkshire
LS1 2JG

23 September 2024
Page 8

 
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
19,995,937
19,322,881

Cost of sales
  
(10,467,377)
(9,083,851)

Gross profit
  
9,528,560
10,239,030

Administrative expenses
  
(6,695,308)
(6,450,608)

Operating profit
  
2,833,252
3,788,422

Interest receivable and similar income
 9 
1,907,614
657,496

Interest payable and similar expenses
 10 
(19,795)
(11,158)

Profit before tax
  
4,721,071
4,434,760

Tax on profit
 11 
(1,166,428)
(898,693)

Profit for the financial year
  
3,554,643
3,536,067

Other comprehensive income for the year
  

Other distributions
  
(1,350,000)
(4,713,755)

Other comprehensive income for the year
  
(1,350,000)
(4,713,755)

  

Total comprehensive income for the year
  
2,204,643
(1,177,688)

Included within Cost of Sales is £759,600 (2022 - £748,800) relating to qualifying bonus payments made as a result of being controlled by an Employee Ownership Trust.
The notes on pages 13 to 23 form part of these financial statements.

Page 9

 
REGISTERED NUMBER: 06482867

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 12 
59,960
143,016

Tangible assets
 13 
421,476
353,026

  
481,436
496,042

Current assets
  

Debtors: amounts falling due within one year
 14 
5,529,947
4,931,193

Cash at bank and in hand
  
7,295,738
4,688,345

  
12,825,685
9,619,538

Creditors: amounts falling due within one year
 15 
(4,209,114)
(3,232,216)

Net current assets
  
 
 
8,616,571
 
 
6,387,322

Total assets less current liabilities
  
9,098,007
6,883,364

Provisions for liabilities
  

Deferred tax
 16 
(60,000)
(50,000)

  
 
 
(60,000)
 
 
(50,000)

Net assets
  
9,038,007
6,833,364


Capital and reserves
  

Called up share capital 
 17 
100
100

Profit and loss account
 18 
9,037,907
6,833,264

  
9,038,007
6,833,364


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 23 September 2024.




Mr J L Wearing
Director

The notes on pages 13 to 23 form part of these financial statements.

Page 10

 
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
100
8,010,952
8,011,052


Comprehensive income for the year

Profit for the year

-
3,536,067
3,536,067

Other distributions
-
(4,713,755)
(4,713,755)



At 1 January 2023
100
6,833,264
6,833,364


Comprehensive income for the year

Profit for the year

-
3,554,643
3,554,643

Other distributions
-
(1,350,000)
(1,350,000)
Total comprehensive income for the year
-
2,204,643
2,204,643


At 31 December 2023
100
9,037,907
9,038,007


The notes on pages 13 to 23 form part of these financial statements.

Page 11

 
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
3,554,643
3,536,067

Adjustments for:

Amortisation of intangible assets
83,056
78,958

Depreciation of tangible assets
220,233
278,022

Interest paid
19,795
11,158

Interest received
(1,907,614)
(657,496)

Taxation charge
1,166,428
898,693

(Increase) in debtors
(598,754)
(450,759)

Increase in creditors
970,524
572,259

Corporation tax (paid)
(1,150,054)
(814,500)

Net cash generated from operating activities

2,358,257
3,452,402


Cash flows from investing activities

Purchase of intangible fixed assets
-
(140,000)

Purchase of tangible fixed assets
(288,683)
(232,953)

Sale of tangible fixed assets
-
19,912

Interest received
1,907,614
657,496

Net cash from investing activities

1,618,931
304,455

Cash flows from financing activities

Repayment of/new finance leases
-
(28,148)

Interest paid
(19,795)
(11,158)

Employee ownership trust consideration
(1,350,000)
(4,713,755)

Net cash used in financing activities
(1,369,795)
(4,753,061)

Net increase/(decrease) in cash and cash equivalents
2,607,393
(996,204)

Cash and cash equivalents at beginning of year
4,688,345
5,684,549

Cash and cash equivalents at the end of year
7,295,738
4,688,345


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
7,295,738
4,688,345

7,295,738
4,688,345


Page 12

 
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

The principal activity of the company was the provision of legal services. The company is a private company limited by shares, which is incorporated in England and Wales (no 06482867). The address of the registered office is Duke House, 54 Wellington Street, Leeds, LS1 2EE

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The accounts have been prepared on a going concern basis. The Company forecasts to have sufficient cash flows to meet its liabilities as they fall due for at least one year 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.

 
2.3

Revenue

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.
When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period.
When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable.
A proportion of fees earned for work performed by the firm is contingent upon successful completion of a case. Where the substance of a contract is such that a right to consideration does not arise until the occurrence of a contingent event, the asset and revenue are not recognised. The contingent event which determines the right to consideration is considered to be the point at which a case is settled.
No costs in respect of unrecognised income on contingent fees are carried forward.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

Page 13

 
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.5

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its 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 profit or loss 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.

 
2.6

Current and deferred taxation

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

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

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 14

 
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Goodwill
-
3
years

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated 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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Leasehold improvements
-
25%
straight line or 25% reducing balance
Motor vehicles
-
25%
reducing balance
Fixtures and fittings
-
25%
straight line or 25% reducing balance
IT & computer equipment
-
33%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 15

 
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.10

Financial instruments

A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument.
Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently measured at amortised cost.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

  
2.11

Other distributions

Other distributions relate to contributions to the Ison Harrison EOT, these are recognised when paid.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the date of the statement of financial position and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. Details of these judgements are set out in the accounting policies.

Page 16

 
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Rendering of services
19,995,937
19,322,881

19,995,937
19,322,881


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Amortisation of intangible assets
83,056
78,958

Depreciation of tangible assets
220,012
278,022

Impairment of trade debtors
204,287
215,502


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
12,800
11,600
Page 17

 
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
10,690,211
9,425,276

EOT qualifying bonus payment
759,600
748,800

Cost of defined contribution scheme
451,122
463,553

11,900,933
10,637,629


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Management
7
8



Fee earners and support staff
244
240

251
248

Key management personnel of the company comprise the Directors. The total employee benefits of the company were £1,258,638 (2022 - £1,352,102).


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
982,434
1,090,225

982,434
1,090,225


The highest paid director received remuneration of £324,494 (2022 - £285,732).


9.


Interest receivable

2023
2022
£
£


Bank interest receivable
1,907,614
657,496

1,907,614
657,496

Page 18

 
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
19,795
11,158

19,795
11,158


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
1,156,000
918,000

Adjustments in respect of previous periods
428
693


1,156,428
918,693


Total current tax
1,156,428
918,693

Deferred tax


Origination and reversal of timing differences
10,000
(20,000)

Total deferred tax
10,000
(20,000)


Tax on profit
1,166,428
898,693
Page 19

 
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2022 - the same as) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%) as set out below:

2023
2022
£
£


Profit on ordinary activities before tax
4,721,071
4,434,760


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
1,110,422
842,604

Effects of:


Expenses not deductible for tax purposes
20,956
8,220

Capital allowances for year in excess of depreciation
26,630
46,657

Adjustments to tax charge in respect of prior periods
428
1,640

Rounding on tax charge
7,992
(428)

Total tax charge for the year
1,166,428
898,693


12.


Intangible assets




Goodwill

£



Cost


At 1 January 2023
3,877,540



At 31 December 2023

3,877,540



Amortisation


At 1 January 2023
3,734,524


Charge for the year on owned assets
83,056



At 31 December 2023

3,817,580



Net book value



At 31 December 2023
59,960



At 31 December 2022
143,016



Page 20

 
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Tangible fixed assets





Long-term leasehold property
Motor vehicles
Fixtures and fittings
IT & computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
371,250
12,105
427,690
1,030,224
1,841,269


Additions
83,813
-
72,216
132,654
288,683



At 31 December 2023

455,063
12,105
499,906
1,162,878
2,129,952



Depreciation


At 1 January 2023
256,222
8,381
365,195
858,445
1,488,243


Charge for the year on owned assets
67,673
931
44,948
106,681
220,233



At 31 December 2023

323,895
9,312
410,143
965,126
1,708,476



Net book value



At 31 December 2023
131,168
2,793
89,763
197,752
421,476



At 31 December 2022
115,028
3,724
62,495
171,779
353,026


14.


Debtors

2023
2022
£
£


Trade debtors
1,947,100
1,932,359

Other debtors
2,874,615
2,545,759

Prepayments and accrued income
708,232
453,075

5,529,947
4,931,193


Page 21

 
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
351,073
252,818

Corporation tax
576,374
570,000

Other taxation and social security
1,034,288
987,822

Other creditors
225,448
194,608

Accruals and deferred income
2,021,931
1,226,968

4,209,114
3,232,216





16.


Deferred taxation




2023


£






At beginning of year
50,000


Charged to profit or loss
(10,000)



At end of year
60,000

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
60,000
50,000

60,000
50,000


17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100



18.


Reserves

Profit and loss account

This reserve records retained earnings and accumulated losses.

Page 22

 
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
19.


Analysis of net debt




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

4,688,345

2,607,393

7,295,738

Debt due within 1 year

6,905

2,585

9,490


4,695,250
2,609,978
7,305,228


20.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
21,375
2,250

Later than 1 year and not later than 5 years
365,148
509,373

Later than 5 years
936,689
1,071,239

1,323,212
1,582,862


21.


Related party transactions

On 1 January 2022 the Ison Harrison Employee Ownership Trust ('EOT') purchased 100% of the ordinary share capital of the company following which the company is now an 'employee owned' company.
At 31 December 2023 deferred consideration of £6.75m is outstanding with a remaining payment period of 8 years. The liabilities in relation to this transaction are held within the EOT and the Company does not act as guarantor on the loans to the EOT. During the period, the company made payments to the EOT totalling £1.35m which are included as a movement in reserves in the period. 
The present obligation to make the future loan payments is that of the EOT so the liability for the future payments has not been recognised by the Company.
The Company does not control the EOT therefore consolidated accounts have not been prepared.


22.


Controlling party

The company is under the control of the Ison Harrison Employee Ownership Trust ("EOT").



Page 23