AI LAW GROUP LIMITED
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
Company Registration No. 12517370 (England and Wales)
AI LAW GROUP LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
AI LAW GROUP LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
192,800
289,200
Tangible assets
4
14,795
7,660
Investments
5
7
1
207,602
296,861
Current assets
Debtors falling due after more than one year
6
96,034
Debtors falling due within one year
6
749,075
772,351
Cash at bank and in hand
287,803
76,822
1,132,912
849,173
Creditors: amounts falling due within one year
7
(444,543)
(455,756)
Net current assets
688,369
393,417
Net assets
895,971
690,278
Capital and reserves
Called up share capital
8
10
10
Profit and loss reserves
895,961
690,268
Total equity
895,971
690,278
For the financial year ended 31 October 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 29 October 2024 and are signed on its behalf by:
Mr T M Ellis
Director
Company registration number 12517370 (England and Wales)
AI LAW GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
1
Accounting policies
Company information
AI Law Group Limited is a private company limited by shares incorporated in England and Wales. The registered office is 8 Water Street, Liverpool, L2 8TD.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT.
Turnover represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned, when, and to the extent that, the firm obtains the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.
Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of the work performed. Revenue not billed to clients is included in debtors.
Fee income that is contingent on events outside the control of the firm is recognised when the contingent event occurs.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.
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.
AI LAW GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 3 -
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures, fittings & equipment
20% reducing balance
Computers
25% reducing balance
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
Fixed asset investments
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.7
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.
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.
AI LAW GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 4 -
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
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was 17. (2022:15).
3
Intangible fixed assets
Goodwill
£
Cost
At 1 November 2022 and 31 October 2023
482,000
Amortisation and impairment
At 1 November 2022
192,800
Amortisation charged for the year
96,400
At 31 October 2023
289,200
Carrying amount
At 31 October 2023
192,800
At 31 October 2022
289,200
AI LAW GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 5 -
4
Tangible fixed assets
Fixtures, fittings & equipment
Computers
Total
£
£
£
Cost
At 1 November 2022
2,498
9,212
11,710
Additions
8,705
1,194
9,899
At 31 October 2023
11,203
10,406
21,609
Depreciation and impairment
At 1 November 2022
657
3,393
4,050
Depreciation charged in the year
1,169
1,595
2,764
At 31 October 2023
1,826
4,988
6,814
Carrying amount
At 31 October 2023
9,377
5,418
14,795
At 31 October 2022
1,841
5,819
7,660
AI LAW GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 6 -
5
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
7
1
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 November 2022
1
Valuation changes
6
At 31 October 2023
7
Carrying amount
At 31 October 2023
7
At 31 October 2022
1
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
526,183
590,998
Other debtors
222,892
181,353
749,075
772,351
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
96,034
Total debtors
845,109
772,351
Included in amounts greater than one year are amounts due from a company with common control of £96,034 (2022:Nil)
AI LAW GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
7
1
Corporation tax
213,272
114,318
Other taxation and social security
189,699
199,326
Other creditors
41,565
142,111
444,543
455,756
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Oridinary A shares of 1p each
500
500
5
5
Ordinary B shares of 1p each
500
500
5
5
1,000
1,000
10
10
The A ordinary shares and the B ordinary shares rank parri passu.
On incorporation the company issued 1,000 ordinary £0.01 shares at par for a total of £10. On 20 June 2020 the shares were redesignated to 500 ordinary A £0.01 shares and 500 ordinary B £0.01 shares.
9
Related party transactions
Transactions with related parties
Included in debtors are amounts due from related parties of £96,034 (2022: £Nil). These parties are related by common directors.