REGISTERED NUMBER: 12945497 (England and Wales) |
GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
THE RIGHT PARTNERSHIP LIMITED |
REGISTERED NUMBER: 12945497 (England and Wales) |
GROUP STRATEGIC REPORT, DIRECTORS' REPORT AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
THE RIGHT PARTNERSHIP LIMITED |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 3 |
Directors' Responsibilities Statement | 4 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Comprehensive Income | 8 |
Consolidated Balance Sheet | 9 |
Company Balance Sheet | 10 |
Consolidated Statement of Changes in Equity | 11 |
Company Statement of Changes in Equity | 12 |
Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
THE RIGHT PARTNERSHIP LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
The Maltings |
2 Anderson Rd |
Bearwood |
Birmingham |
West Midlands |
B66 4AR |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The results for the Group show a profit on ordinary activities before taxation of £2,192,092 (2022: £3,359,640) |
for the financial year on a turnover of £40,492,343 (2022: £49,162,806). |
The net cash inflow from operating activities was £1,374,027 (2022: £2,808,414). |
Interim dividends paid during the financial year amounted to £nil (2022 £2,162,579). There was a final dividend paid in relation to the year to 31 December 2023 of £1,928,045 (2022: £nil). |
PRINCIPAL RISKS AND UNCERTAINTIES |
Principal risks |
The directors considered the risks attached to the Group's and Company's financial instruments and have taken a prudent approach in their consideration of the various risks attached to the financial instruments of the Group and Company. The Group's and Company's exposure to price risk, credit risk, liquidity risk and cash flow risk is not material for the assessment of assets, liabilities and the financial statements, as a whole. |
From the perspective of the Company, the principal risks and uncertainties are integrated with the principal risks of the Group and are not managed separately. Whilst the Company has regard for climate change risk and the transition risks of moving towards a lower carbon economy, the nature of the Company means there is not expected to be a material impact on the Company and its balances in the short term. |
ON BEHALF OF THE BOARD: |
18 September 2024 |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
DIRECTORS' REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of financial services. The group is authorised and regulated by the Financial Conduct Authority. |
DIVIDENDS |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Ark Aurora Ltd - Statutory Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
DIRECTORS' RESPONSIBILITIES STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE RIGHT PARTNERSHIP LIMITED |
Opinion |
We have audited the financial statements of The Right Partnership Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report, the Directors' Report and the Directors' Responsibilities Statement, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE RIGHT PARTNERSHIP LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. |
Based on our understanding of the company, group and industry within which it operates, we considered that non |
compliance with the following laws and regulations might have a material effect on the financial statements: anti bribery, |
FCA regulations, General Data Protection regulation, fraud and money laundering. |
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the |
risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to: |
o Inquiring of management and, where appropriate, those charged with governance, as to whether the group |
and the parent company is in compliance with laws and regulations, and discussing their policies and procedures |
regarding compliance with laws and regulations; |
o Inspecting correspondence, if any, with relevant licensing or regulatory authorities; |
o Communicating identified laws and regulations to the engagement team and remaining alert to any indications of |
non-compliance throughout our audit; and |
o Considering the risk of acts by the group and the parent company which were contrary to applicable laws and |
regulations, including fraud. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
THE RIGHT PARTNERSHIP LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
The Maltings |
2 Anderson Rd |
Bearwood |
Birmingham |
West Midlands |
B66 4AR |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
TURNOVER | 40,492,343 | 49,162,806 |
Cost of sales | 30,361,758 | 38,684,245 |
GROSS PROFIT | 10,130,585 | 10,478,561 |
Administrative expenses | 8,092,800 | 7,291,576 |
OPERATING PROFIT | 4 | 2,037,785 | 3,186,985 |
Profit/loss on sale of |
operation | 6 | 11,001 | - |
2,048,786 | 3,186,985 |
Income from shares in group undertakings | 76,646 | 176,739 |
Income from interest in associated undertakings |
3,932 |
- |
Interest receivable and similar income | 62,728 | 11,371 |
143,306 | 188,110 |
2,192,092 | 3,375,095 |
Interest payable and similar expenses | 7 | - | 15,455 |
PROFIT BEFORE TAXATION | 2,192,092 | 3,359,640 |
Tax on profit | 8 | 490,754 | 598,057 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,701,338 |
2,761,583 |
Profit attributable to: |
Owners of the parent | 1,701,338 | 2,761,583 |
Total comprehensive income attributable to: |
Owners of the parent | 1,701,338 | 2,761,583 |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
CONSOLIDATED BALANCE SHEET |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 | 85,500 | 142,500 |
Tangible assets | 13 | 31,639 | 31,908 |
Investments | 14 |
Interest in associate | 50 | - |
117,189 | 174,408 |
CURRENT ASSETS |
Debtors | 15 | 450,435 | 932,717 |
Cash at bank and in hand | 3,926,224 | 4,348,568 |
4,376,659 | 5,281,285 |
CREDITORS |
Amounts falling due within one year | 16 | 3,282,365 | 4,017,198 |
NET CURRENT ASSETS | 1,094,294 | 1,264,087 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
1,211,483 |
1,438,495 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 10,753 | 11,058 |
Retained earnings | 18 | 1,200,730 | 1,427,437 |
SHAREHOLDERS' FUNDS | 1,211,483 | 1,438,495 |
The financial statements were approved by the Board of Directors and authorised for issue on 18 September 2024 and were signed on its behalf by: |
A N Stretton - Director |
A M Wilson - Director |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
COMPANY BALANCE SHEET |
31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 12 |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 1,989,992 | 2,338,810 |
The financial statements were approved by the Board of Directors and authorised for issue on |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | 10,659 | 1,133,304 | 1,143,963 |
Changes in equity |
Issue of share capital | 399 | - | 399 |
Dividends | - | (2,467,450 | ) | (2,467,450 | ) |
Total comprehensive income | - | 2,761,583 | 2,761,583 |
Balance at 31 December 2022 | 11,058 | 1,427,437 | 1,438,495 |
Changes in equity |
Issue of share capital | (305 | ) | - | (305 | ) |
Dividends | - | (1,928,045 | ) | (1,928,045 | ) |
Total comprehensive income | - | 1,701,338 | 1,701,338 |
Balance at 31 December 2023 | 10,753 | 1,200,730 | 1,211,483 |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | ( |
) | ( |
) |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2023 |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,159,074 | 3,376,656 |
Interest paid | - | (15,455 | ) |
Tax paid | (774,847 | ) | (552,787 | ) |
Net cash from operating activities | 1,384,227 | 2,808,414 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (17,229 | ) | (7,048 | ) |
Purchase of fixed asset investments | (50 | ) | - |
Disposal proceeds on sale of subsidiary | 20,000 | - |
Loss on deconsolidation of subsidiaries | (25,777 | ) | - |
Interest received | 62,728 | 11,371 |
Dividends received | 80,578 | 176,739 |
Net cash from investing activities | 120,250 | 181,062 |
Cash flows from financing activities |
Amount introduced by directors | 416 | 786 |
Amount withdrawn by directors | 1,113 | 4,248 |
Share issue | (305 | ) | 400 |
Equity dividends paid | (1,928,045 | ) | (2,467,450 | ) |
- | (6,626 | ) |
Net cash from financing activities | (1,926,821 | ) | (2,468,642 | ) |
(Decrease)/increase in cash and cash equivalents | (422,344 | ) | 520,834 |
Cash and cash equivalents at beginning of year |
2 |
4,348,568 |
3,827,734 |
Cash and cash equivalents at end of year | 2 | 3,926,224 | 4,348,568 |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.23 | 31.12.22 |
£ | £ |
Profit before taxation | 2,192,092 | 3,359,640 |
Depreciation charges | 73,389 | 72,951 |
Finance costs | - | 15,455 |
Finance income | (143,306 | ) | (188,110 | ) |
2,122,175 | 3,259,936 |
Decrease/(increase) in trade and other debtors | 492,433 | (596,723 | ) |
(Decrease)/increase in trade and other creditors | (455,534 | ) | 713,443 |
Cash generated from operations | 2,159,074 | 3,376,656 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 3,926,224 | 4,348,568 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 4,348,568 | 3,827,734 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 4,348,568 | (422,344 | ) | 3,926,224 |
4,348,568 | (422,344 | ) | 3,926,224 |
Total | 4,348,568 | (422,344 | ) | 3,926,224 |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
The Right Partnership Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
As per S1 of FRS 102 an exemption for no parent only cashflow statement has been taken |
Basis of consolidation |
The basis of consolidation combined the financial statements of The Right Partnership Ltd (parent company), and its subsidiaries, into a single set of financial statements. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the Group's accounting policies, which are described in note I, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
Key assumptions, estimates and judgements |
The Company makes assumptions, estimates and judgements concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. These are continually evaluated and based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
The assumptions and estimates that have a significant risk of causing material adjustment to the Company's earnings and Statement of Financial Position carrying values are estimates in relation to persistency of policies used to calculate the provisions for distribution and commission clawback and the recognition of contract assets and estimates in relation to any possible redress. |
There were no critical judgements made during the financial year to 31 December 2023. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover is to be recognised when commission has been received. |
Goodwill |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Investments in associates |
Investments in associate undertakings are recognised at cost. |
Financial instruments |
Financial assets and liabilities are recognised when the Group becomes a party the the contractual provisions of the instrument. |
i. Investments |
Investments held as fixed assets by the Company, which entirely represent investments in group companies are stated at cost, less any provision for impairment in value. |
ii. Financing Costs |
Financial costs of financial liabilities are recognised in the profit and loss account over the terms of such instruments on the carrying amount. |
iii. Financial liabilities |
Financial liabilities are classified according to the substance of the contractual arrangement entered into. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | EMPLOYEES AND DIRECTORS |
31.12.23 | 31.12.22 |
£ | £ |
Wages and salaries | 2,527,832 | 2,480,033 |
Social security costs | 265,539 | 259,998 |
Other pension costs | 56,059 | 54,542 |
2,849,430 | 2,794,573 |
The average number of employees during the year was as follows: |
31.12.23 | 31.12.22 |
Management | 5 | 5 |
Administration | 61 | 65 |
The average number of employees by undertakings that were proportionately consolidated during the year was 66 (2022 - 70 ) . |
For the period ending 31st December 2023 the total salary received by the Key Management Personnel was £371,245. These persons are the directors in one of the material subsidiaries within the group. |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.12.23 | 31.12.22 |
£ | £ |
Other operating leases | 85,044 | 85,258 |
Depreciation - owned assets | 16,389 | 15,951 |
Goodwill amortisation | 57,000 | 57,000 |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | AUDITORS' REMUNERATION |
31.12.23 | 31.12.22 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
14,000 |
- |
The total cost for audit of The Right Partnership is £14,000 |
6. | EXCEPTIONAL ITEMS |
31.12.23 | 31.12.22 |
£ | £ |
Profit/loss on sale of |
operation | 11,001 | - |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.12.23 | 31.12.22 |
£ | £ |
Bank loan interest | - | 15,455 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Current tax: |
UK corporation tax | 490,754 | 598,057 |
Tax on profit | 490,754 | 598,057 |
9. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
31.12.23 | 31.12.22 |
£ | £ |
Ordinary shares of 100 each |
Final | 1,928,045 | 2,467,450 |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | FINANCIAL RISK MANAGEMENT |
Financial risk factors |
The Group operations expose it to financial risks: market risk (including interest rate risk, price risk and foreign exchange risk), credit risk and liquidity risk. The Group's risk management programme focuses on liquidity requirements. The Directors maintain the responsibility of monitoring financial risk management and the day-to-day activity is undertaken by the Company's finance department. |
Market risk |
Market risk is the potential adverse change in the Group's income or the value of the Group's net worth resulting from movements in interest rates or other market prices and arises from the structure of the Statement of Financial Position. |
(a) Interest rate risk |
The Company has interest bearing assets, currently being its cash balances, The cash balances earn interest at a floating rate. |
The Company is not dependent on income from cash balances and therefore has limited risk. |
Given the size of balances the cost of managing exposure to interest rate risk using financial instruments exceeds any potential benefits and so the Company has decided not to hedge this risk. The Directors will revisit the appropriateness of this policy in the event the Group's operations change in size or nature. |
(b) Price risk |
The Company does not hold debt or equity market investments and therefore is not exposed to ny price risk. |
(c) Foreign exchange risk |
The Company is not exposed to foreign exchange risk as it does not have any operations based outside of the United Kingdom, nor are any material transactions or investments denominated in a currency other than Pounds Sterling. |
(d) Capital Risk Management |
The Group's objectives when managing capital are to safeguard the Group's ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal structure to reduce the cost of capital. |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
12. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 570,000 | 1,500 | 571,500 |
No description | - | (1,500 | ) | (1,500 | ) |
At 31 December 2023 | 570,000 | - | 570,000 |
AMORTISATION |
At 1 January 2023 | 427,500 | 1,500 | 429,000 |
Amortisation for year | 57,000 | - | 57,000 |
No description | - | (1,500 | ) | (1,500 | ) |
At 31 December 2023 | 484,500 | - | 484,500 |
NET BOOK VALUE |
At 31 December 2023 | 85,500 | - | 85,500 |
At 31 December 2022 | 142,500 | - | 142,500 |
13. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and |
machinery | fittings | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 146,050 | 11,821 | 157,871 |
Additions | 17,229 | - | 17,229 |
Transfer to ownership | (11,052 | ) | (2,025 | ) | (13,077 | ) |
At 31 December 2023 | 152,227 | 9,796 | 162,023 |
DEPRECIATION |
At 1 January 2023 | 117,443 | 8,520 | 125,963 |
Charge for year | 15,391 | 998 | 16,389 |
Transfer to ownership | (10,125 | ) | (1,843 | ) | (11,968 | ) |
At 31 December 2023 | 122,709 | 7,675 | 130,384 |
NET BOOK VALUE |
At 31 December 2023 | 29,518 | 2,121 | 31,639 |
At 31 December 2022 | 28,607 | 3,301 | 31,908 |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS |
Group |
Interest |
in |
associate |
£ |
COST |
Additions | 50 |
At 31 December 2023 | 50 |
NET BOOK VALUE |
At 31 December 2023 | 50 |
Interest in associate |
The Right Retirement Plan Ltd |
The group's share of The Right Retirement Plan Ltd is as follows: |
31.12.23 | 31.12.22 |
£ | £ |
Turnover | - | - |
Profit before tax | 3,932 | - |
Taxation | - | - |
Profit after tax | 3,932 | - |
Share of assets |
Fixed assets | - | - |
Current assets | - | - |
Share of liabilities |
Liabilities due within one year | - | - |
Liabilities due after one year or more | - | - |
Share of net liabilities | - | - |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
Disposals | ( |
) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
The Right Mortgage Ltd |
Registered office: 70 St. Johns Close, Knowle, Solihull, West Midlands, B93 0NH |
Nature of business: Insurance Agents and Brokers |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves | 905,799 | 1,574,414 |
Profit for the year | 1,473,597 | 2,637,795 |
As Parent, we have given guarantee under S479C in respect of this year and accordingly, this subsidiary is exempt from the requirements of the Companies Act. relating to the audit of individual accounts by virtue of S479A-C. |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
The Right Broker Ltd |
Registered office: 70 St Johns Court St. Johns Close, Knowle, Solihull, England, B93 0NH |
Nature of business: Insurance Agents and Brokers |
% |
Class of shares: | holding |
Ordinary | 50.00 |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves | 94,849 | 38,561 |
Profit for the year | 56,188 | 39,109 |
As Parent, we have given guarantee under S479C in respect of this year and accordingly, this subsidiary is exempt from the requirements of the Companies Act. relating to the audit of individual accounts by virtue of S479A-C. |
The Right Partnership Ltd maintains full control of The Right Broker Ltd hence why it has been included in consolidated statements |
The Later Life Lending Network Limited |
Registered office: 70 St. Johns Close, Knowle, Solihull, England, B93 0NH |
Nature of business: Financial Intermediaries |
% |
Class of shares: | holding |
ordinary | 100.00 |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves | 4,655 | (9,064 | ) |
Profit/(loss) for the year | 13,719 | (8,444 | ) |
As Parent, we have given guarantee under S479C in respect of this year and accordingly, this subsidiary is exempt from the requirements of the Companies Act. relating to the audit of individual accounts by virtue of S479A-C. |
This subsidiary was sold on 1st November 2023. |
The Right Mortgage Marketing Ltd |
Registered office: 70 St. Johns Close, Knowle, Solihull, England, B93 0NH |
Nature of business: Combined Office Administrative |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves | (5,673 | ) | (162,264 | ) |
Profit for the year | 598,579 | 355,057 |
As Parent, we have given guarantee under S479C in respect of this year and accordingly, this subsidiary is exempt from the requirements of the Companies Act. relating to the audit of individual accounts by virtue of S479A-C. |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
14. | FIXED ASSET INVESTMENTS - continued |
The Right Loan Ltd |
Registered office: 70 St. Johns Close, Knowle, Solihull, England, B93 0NH |
Nature of business: Other Business Services |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves | (888 | ) | 1,007 |
Profit for the year | 46,386 | 42,190 |
As Parent, we have given guarantee under S479C in respect of this year and accordingly, this subsidiary is exempt from the requirements of the Companies Act. relating to the audit of individual accounts by virtue of S479A-C. |
The Right DA Club |
Registered office: 70, St. Johns Close, Knowle, Solihull, West Midlands, England, B93 0NH |
Nature of business: Insurance Agents and Brokers |
% |
Class of shares: | holding |
Ordinary | 100.00 |
31.12.23 | 31.12.22 |
£ | £ |
Aggregate capital and reserves | (6,064 | ) | (17,315 | ) |
Profit for the year | 103,723 | 19,292 |
As Parent, we have given guarantee under S479C in respect of this year and accordingly, this subsidiary is exempt from the requirements of the Companies Act. relating to the audit of individual accounts by virtue of S479A-C. |
The Right Retirement Plan Ltd |
Registered office: 70, St. Johns Close, Knowle, Solihull, West Midlands, England, B93 0NH |
Nature of business: Activities of insurance agents and brokers |
% |
Class of shares: | holding |
Ordinary | 50.00 |
31.12.23 |
£ |
Profit for the year | 3,932 |
Parent company is now holding 50% in The Right Retirement Plan Ltd however doesnt have full control therefore the investors share of associates profits is included in the financial statements. The investment in the associate has also been included. |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade debtors | 80,561 | 517,360 |
Amounts owed by group undertakings | 10,151 | - |
Other debtors | 123,152 | 32,171 |
Prepayments | 236,571 | 383,186 |
450,435 | 932,717 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.12.23 | 31.12.22 | 31.12.23 | 31.12.22 |
£ | £ | £ | £ |
Trade creditors | 68,071 | 48,005 |
Credit card account | 7,176 | 3,911 |
Amounts owed to group undertakings | - | - |
Tax | 309,847 | 593,940 |
Social security and other taxes | 82,612 | 88,735 |
Net Wages Control | - | 5,935 | - | - |
Pension liability | 15,782 | 10,016 | - | - |
VAT | 60,262 | 80,784 | - | - |
Other creditors | 2,593,395 | 3,035,395 |
Directors' current accounts | 8,150 | 6,621 | - | - |
Accruals and deferred income | 14,000 | 14,000 |
Accrued expenses | 123,070 | 129,856 |
3,282,365 | 4,017,198 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.23 | 31.12.22 |
value: | £ | £ |
Ordinary | 100 | 10,753 | 11,058 |
18. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2023 | 1,427,437 |
Profit for the year | 1,701,338 |
Dividends | (1,928,045 | ) |
At 31 December 2023 | 1,200,730 |
THE RIGHT PARTNERSHIP LIMITED (REGISTERED NUMBER: 12945497) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
18. | RESERVES - continued |
19. | RELATED PARTY DISCLOSURES |
Below is a list of related party transactions: |
- Related party bad debt w/off : £168,339 |
- Related party sales: £4,545,393 |
- Related Party Consulting Services: £136,119 |
- Key Management Personnel: £371,245 |
The Right Partnership has 100% control over The Right Mortgage Ltd, The Right Broker Ltd, The Right Loan Ltd, The Right DA Club Ltd, The Right Mortgage Marketing Ltd,The Later Life Lending Network Ltd, and TRN Adviser Ltd. |
The entity also has 50% investment in The Right Retirement Plan Ltd. |
A&M Wilson Holdings and TRG Financial Services Ltd have equal 50% share each in The Right Partnership Limited |