Company Registration No. 13657187 (England and Wales)
METHOD WEALTH MANAGEMENT LIMITED
Unaudited Financial Statements
For The Year Ended 31 October 2023
Pages For Filing With Registrar
METHOD WEALTH MANAGEMENT LIMITED
Company Information
Director
P. Griffiths
Company number
13657187
Registered office
7, Johnston Road,
Woodford Green,
Essex,
IG8 0XA
Accountants
Nicholas Hall
7 Johnston Road,
Woodford Green,
Essex,
IG8 0XA
METHOD WEALTH MANAGEMENT LIMITED
Contents
Page
Accountants' Report
1
Balance Sheet
2 - 3
Notes To The Financial Statements
4 - 10
METHOD WEALTH MANAGEMENT LIMITED
Accountants' Report To The Director On The Preparation Of The Unaudited Statutory Financial Statements Of Method Wealth Management Limited For The Year Ended 31 October 2023
- 1 -

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Method Wealth Management Limited for the year ended 31 October 2023 which comprise, the balance sheet and the related notes from the company’s accounting records and from information and explanations you have given us.

This report is made solely to the Board of Directors of Method Wealth Management Limited, as a body, in accordance with the terms of our engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Method Wealth Management Limited and state those matters that we have agreed to state to the Board of Directors of Method Wealth Management Limited, as a body, in this report in accordance with technical guidelines. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Method Wealth Management Limited and its Board of Directors as a body, for our work or for this report.

It is your duty to ensure that Method Wealth Management Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Method Wealth Management Limited. You consider that Method Wealth Management Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Method Wealth Management Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Nicholas Hall
____________________________
Nicholas Hall
7 Johnston Road,
Woodford Green,
Essex,
IG8 0XA
31 October 2024
METHOD WEALTH MANAGEMENT LIMITED
Balance Sheet
As At 31 October 2023
31 October 2023
- 2 -
2023
2022
As Restated
Notes
£
£
£
£
Fixed assets
Intangible Assets
3
914,144
1,023,841
Tangible Assets
4
2,080
1,848
916,224
1,025,689
Current assets
Debtors
5
75,076
19,256
Cash At Bank And In Hand
71,017
54,705
146,093
73,961
Creditors: amounts falling due within one year
6
(189,475)
(316,981)
Net current liabilities
(43,382)
(243,020)
Total assets less current liabilities
872,842
782,669
Creditors: amounts falling due after more than one year
(827,980)
(751,650)
Provisions for liabilities
(229)
(509)
Net assets
44,633
30,510
Capital and reserves
Called Up Share Capital
7
100
100
Profit And Loss Reserves
44,533
30,410
Total equity
44,633
30,510

In accordance with section 444 of the Companies Act 2006 all of the members of the company have consented to the preparation of filleted financial statements pursuant to paragraph 1A of Schedule 1 to the Small Companies and Groups (Accounts and Directors’ Report) Regulations (S.I. 2008/409)(b).

The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true

METHOD WEALTH MANAGEMENT LIMITED
Balance Sheet (Continued)
As At 31 October 2023
31 October 2023
- 3 -

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 director acknowledges his responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved and signed by the director and authorised for issue on 31 October 2024
P. Griffiths
_______________________
P. Griffiths
Director
Company Registration No. 13657187
METHOD WEALTH MANAGEMENT LIMITED
Notes To The Financial Statements
For The Year Ended 31 October 2023
- 4 -
1
Accounting policies
Company information

Method Wealth Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7, Johnston Road, Woodford Green, Essex, IG8 0XA

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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

1.3
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Client List
10 Years Straight Line
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.

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:

Computer Equipment
- 33% Straight Line
METHOD WEALTH MANAGEMENT LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 October 2023
1
Accounting policies
(Continued)
- 5 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash at bank and in hand

Cash at bank and in hand 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.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

METHOD WEALTH MANAGEMENT LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 October 2023
1
Accounting policies
(Continued)
- 6 -
Basic financial liabilities

Basic financial liabilities, including Creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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.

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.

1.11
Leases
METHOD WEALTH MANAGEMENT LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 October 2023
1
Accounting policies
(Continued)
- 7 -

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was 1 (2022 - 1).

3
Intangible fixed assets
Total
£
Cost
At 1 November 2022 And 31 October 2023
1,096,972
Amortisation and impairment
At 1 November 2022
73,131
Amortisation Charged For The Year
109,697
At 31 October 2023
182,828
Carrying amount
At 31 October 2023
914,144
At 31 October 2022
1,023,841
4
Tangible fixed assets
Total
£
Cost
At 1 November 2022
2,759
Additions
1,705
At 31 October 2023
4,464
Depreciation and impairment
At 1 November 2022
911
Depreciation Charged In The Year
1,473
At 31 October 2023
2,384
Carrying amount
At 31 October 2023
2,080
At 31 October 2022
1,848
METHOD WEALTH MANAGEMENT LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 October 2023
- 8 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade Debtors
2,783
19,256
Other Debtors
72,293
-
0
75,076
19,256
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank Loans And Overdrafts
87,571
87,571
Trade Creditors
357
-
0
0
Taxation And Social Security
76,468
37,384
Other Creditors
25,079
192,026
189,475
316,981
7
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary Shares of £1 each
100
100
8
Related party transactions

Included within Other Debtors is a directors' loan account balance totalling £72,293 (2023: -£371) owed by P. Griffiths to the company as at 31 October 2023. The loan was provided interest free and was repaid within 9 months of the year end.

METHOD WEALTH MANAGEMENT LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 October 2023
- 9 -
9
Prior period adjustment

The figures for the year ended 31 October 2022 have been restated. Previously, the income was net of deductions. The income has now been grossed up and the deductions have been separated, as follows:

 

Total: £96,006 (adjusted against sales)

 

A £655 creditor was recognised in respect of a deficit balance at the year end due to deductions exceeding income.

 

A £1,096,972 intangible asset (client list) purchased in February 2022 has now been recognised - this is amortised on a 10 year straight line basis. Amortisation of £73,131 was recognised in the year ended 31 October 2022, resulting in a carrying value of £1,023.841.

 

A £906,972 bank loan and £190,000 deferred consideration (paid in September 2023 using a second loan) in respect of the purchase of the client list have also now been recognised.

 

£28,078 loan interest was recognised in respect of the bank loan.

 

As a result of changes to the taxable profit, the Corporation Tax charge for the year has increased from £24,636 to £37,384.

Changes to the balance sheet
At 31 October 2022
As Previously Reported
Adjustment
As Restated
£
£
£
Fixed assets
Other Intangibles
-
1,023,841
1,023,841
Current assets
Debtors Due Within One Year
19,257
(1)
19,256
Creditors due within one year
Loans And Overdrafts
(371)
(87,571)
(87,942)
Taxation
(24,636)
(12,748)
(37,384)
Other Creditors
(1,000)
(190,655)
(191,655)
Creditors due after one year
Loans And Overdrafts
-
(751,650)
(751,650)
Net Assets
49,294
(18,784)
30,510
Capital and reserves
Profit And Loss
49,194
(18,784)
30,410
METHOD WEALTH MANAGEMENT LIMITED
Notes To The Financial Statements (Continued)
For The Year Ended 31 October 2023
9
Prior period adjustment
(Continued)
- 10 -
Changes to the profit and loss account
Period Ended 31 October 2022
As Previously Reported
Adjustment
As Restated
£
£
£
Turnover
140,194
95,350
235,544
Administrative Expenses
(7,855)
(73,308)
(81,163)
Interest Payable And Similar Expenses
-
(28,078)
(28,078)
Taxation
(25,145)
(12,748)
(37,893)
Profit After Taxation
107,194
(18,784)
88,410
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