Company registration number 10915221 (England and Wales)
LAVEN PARTNERS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
LAVEN PARTNERS LIMITED
COMPANY INFORMATION
Directors
L Guo
J Yamoah
(Appointed 19 October 2023)
Company number
10915221
Registered office
7th Floor (North)
11 Old Jewry
London
EC2R 8DU
Auditor
Henton & Co LLP
Stag House
Old London Road
Hertford
Hertfordshire
SG13 7LA
LAVEN PARTNERS LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Group statement of comprehensive income
6
Group balance sheet
7
Company balance sheet
8
Group statement of changes in equity
9
Company statement of changes in equity
10
Group statement of cash flows
11
Notes to the financial statements
12 - 25
LAVEN PARTNERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the company and group continued to be that of the provision of consultancy, investment management and advisory services.

Results and dividends

The results for the year are set out on page 6.

Ordinary dividends were paid amounting to £1,100,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

L Guo
I Sloan
(Resigned 19 October 2023)
J Yamoah
(Appointed 19 October 2023)
Auditor

In accordance with the company's articles, a resolution proposing that Henton & Co LLP be reappointed as auditor of the group will be put at a General Meeting.

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

LAVEN PARTNERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
L Guo
Director
31 October 2024
LAVEN PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LAVEN PARTNERS LIMITED
- 3 -
Opinion

We have audited the financial statements of Laven Partners Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

LAVEN PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LAVEN PARTNERS LIMITED
- 4 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and parent company and its environment obtained in the course of the audit, we have not identified material misstatements in 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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, and non-compliance with laws and regulations, our procedures included the following: enquiring of management concerning the group's policies with regards identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; enquiring of management concerning the group's policies detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; enquiring of management concerning the group's policies in relation to the internal controls established to mitigate risks related to fraud or non- compliance with laws and regulations; discussing among the engagement team where fraud might occur in the financial statements and any potential indicators of fraud; and obtaining an understanding of the legal and regulatory framework that the company operates in and focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the group. The key laws and regulations we considered in this context included the UK Companies Act 2006, Financial Reporting Standard 102 and applicable tax legislation.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance concerning compliance with such laws and regulations and any actual or potential litigation or claims; inspection of minutes and relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

LAVEN PARTNERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LAVEN PARTNERS LIMITED
- 5 -

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). We are not responsible for preventing non compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Stuart Heaney (Senior Statutory Auditor)
For and on behalf of Henton & Co LLP
Chartered Accountants
Statutory Auditor
Stag House
Old London Road
Hertford
Hertfordshire
SG13 7LA
31 October 2024
LAVEN PARTNERS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2023
2022
Notes
£
£
Turnover
3
2,410,269
4,146,754
Cost of sales
(659,523)
(702,094)
Gross profit
1,750,746
3,444,660
Administrative expenses
(2,329,480)
(4,296,226)
Other operating income
210,968
79,442
Operating loss
4
(367,766)
(772,124)
Interest receivable and similar income
8
33,313
133
Interest payable and similar expenses
9
-
0
(14,366)
Other gains and losses
10
-
10,565,937
(Loss)/profit before taxation
(334,453)
9,779,580
Tax on (loss)/profit
11
(10,086)
(11,332)
(Loss)/profit for the financial year
(344,539)
9,768,248
(Loss)/profit for the financial year is attributable to:
- Owners of the parent company
(354,509)
9,640,552
- Non-controlling interests
9,970
127,696
(344,539)
9,768,248
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(354,509)
9,640,552
- Non-controlling interests
9,970
127,696
(344,539)
9,768,248

The notes on pages 12 to 25 form part of these financial statements.

LAVEN PARTNERS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 7 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
13
2,033,132
416,414
Current assets
Debtors
17
4,009,738
5,303,690
Cash at bank and in hand
1,138,286
3,341,672
5,148,024
8,645,362
Creditors: amounts falling due within one year
18
(2,305,121)
(2,684,602)
Net current assets
2,842,903
5,960,760
Net assets
4,876,035
6,377,174
Capital and reserves
Called up share capital
20
110
110
Profit and loss reserves
4,850,741
6,305,250
Equity attributable to owners of the parent company
4,850,851
6,305,360
Non-controlling interests
25,184
71,814
4,876,035
6,377,174

The notes on pages 12 to 25 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
31 October 2024
L Guo
Director
Company registration number 10915221 (England and Wales)
LAVEN PARTNERS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
15
2,000,000
160,100
Current assets
Debtors
17
2,005,710
3,201,928
Cash at bank and in hand
1,003,150
3,199,260
3,008,860
6,401,188
Creditors: amounts falling due within one year
18
(856,203)
(1,025,015)
Net current assets
2,152,657
5,376,173
Net assets
4,152,657
5,536,273
Capital and reserves
Called up share capital
20
110
110
Profit and loss reserves
4,152,547
5,536,163
Total equity
4,152,657
5,536,273

The notes on pages 12 to 25 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £283,617 (2022 - £10,571,829 profit).

The financial statements were approved by the board of directors and authorised for issue on 31 October 2024 and are signed on its behalf by:
31 October 2024
L Guo
Director
Company registration number 10915221 (England and Wales)
LAVEN PARTNERS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
110
1,664,698
1,664,808
(50,025)
1,614,783
Year ended 31 December 2022:
Profit and total comprehensive income
-
9,640,552
9,640,552
127,696
9,768,248
Dividends
12
-
(5,000,000)
(5,000,000)
-
(5,000,000)
Drawings from subsidiary LLP
-
-
-
(5,857)
(5,857)
Balance at 31 December 2022
110
6,305,250
6,305,360
71,814
6,377,174
Year ended 31 December 2023:
Loss and total comprehensive income
-
(354,509)
(354,509)
9,970
(344,539)
Dividends
12
-
(1,100,000)
(1,100,000)
-
(1,100,000)
Drawings from subsidiary LLP
-
-
-
(56,600)
(56,600)
Balance at 31 December 2023
110
4,850,741
4,850,851
25,184
4,876,035

The notes on pages 12 to 25 form part of these financial statements.

LAVEN PARTNERS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
110
(35,666)
(35,556)
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
10,571,829
10,571,829
Dividends
12
-
(5,000,000)
(5,000,000)
Balance at 31 December 2022
110
5,536,163
5,536,273
Year ended 31 December 2023:
Profit and total comprehensive income
-
(283,616)
(283,616)
Dividends
12
-
(1,100,000)
(1,100,000)
Balance at 31 December 2023
110
4,152,547
4,152,657

The notes on pages 12 to 25 form part of these financial statements.

LAVEN PARTNERS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
25
770,891
(714,094)
Interest paid
-
0
(14,366)
Net cash inflow/(outflow) from operating activities
770,891
(728,460)
Investing activities
Purchase of business
(387,720)
-
Purchase of intangible assets
(1,463,270)
-
Purchase of tangible fixed assets
-
(16,072)
Proceeds from disposal of subsidiaries, net of cash disposed
-
9,334,497
Interest received
33,313
133
Net cash (used in)/generated from investing activities
(1,817,677)
9,318,558
Financing activities
Repayment of bank loans
-
(466,667)
Dividends paid to equity shareholders
(1,100,000)
(5,000,000)
Payments to non-controlling interests
(56,600)
(5,857)
Net cash used in financing activities
(1,156,600)
(5,472,524)
Net (decrease)/increase in cash and cash equivalents
(2,203,386)
3,117,574
Cash and cash equivalents at beginning of year
3,341,672
224,098
Cash and cash equivalents at end of year
1,138,286
3,341,672

The notes on pages 12 to 25 form part of these financial statements.

LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Laven Partners Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 7th Floor (North), 11 Old Jewry, London, EC2R 8DU.

 

The group consists of Laven Partners Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

The consolidated financial statements have been prepared using both acquisition accounting and merger accounting.

The merger accounting method of consolidation was used on the business combination of the parent company and its subsidiaries that occurred in the year to 30 April 2018. The ownership of the purchaser and the acquiree did not change, and, with all requirements prescribed under FRS 102 for the use of merger accounting being met, no goodwill arose and reserves were treated as though the post merger structure had always been in place.

Subsequently, in the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Laven Partners Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

The directors have a reasonable expectation that the company will have adequate resources to continue in operational existence for the foreseeable future. The directors consider that the company will be able to generate and maintain sufficient levels of cash in order to meet its liabilities as they fall due for a period of at least twelve months from the date when the financial statements were authorised for issue. The company therefore continues to adopt the going concern basis in preparing its financial statements.

1.5
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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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 10 years.

1.7
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:

Office equipment
50% on cost

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 recognised in the profit and loss account.

LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
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.

1.10
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 group after deducting all of its liabilities.

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.

LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.11
Equity instruments

Equity instruments issued by the group 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 group.

1.12
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 group’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.

1.13
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.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Leases

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.17

Non controlling interests

Members' capital in the subsidiary of Laven Hosting Limited is treated as a liability as the LLP does not have any discretionary rights to withhold the repayment of capital to members. However, the non controlling interests in the consolidated balance sheet, representing minority members' interests in the LLP, are included in reserves in accordance with FRS 102.

LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Trade and other debtors

Management make estimates of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, the factors considered include the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Tangible fixed assets

Management make estimates of the useful life of tangible fixed assets and apply an appropriate depreciation policy. Impairment reviews are undertaken regularly and assets are written down as necessary.

Intangible fixed assets

Management estimates the useful life of intangible fixed assets and applies an appropriate amortisation policy. Impairment reviews are undertaken regularly and assets are written down as necessary.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Consultancy
1,634,011
3,603,362
Investment management
776,258
543,392
2,410,269
4,146,754
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
1,967,923
2,949,295
Europe
113,358
464,990
Rest of World
328,988
732,469
2,410,269
4,146,754
LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 17 -
2023
2022
£
£
Other revenue
Interest income
33,313
133

Turnover for the comparative reporting period in the group statement of comprehensive income includes £1,846,297 relating to businesses that were disposed of last year.

4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses/(gains)
7,826
(8,114)
Depreciation of owned tangible fixed assets
-
864
Amortisation of intangible assets
254,574
77,645
Operating lease charges
101,674
-
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,800
11,015
Audit of the financial statements of the company's subsidiaries
26,950
17,250
39,750
28,265
For other services
All other non-audit services
2,425
-
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
2
3
2
-
Office staff
10
30
-
-
Total
12
33
2
-
0
LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
544,475
1,774,625
-
0
-
0
Social security costs
56,714
184,188
-
-
Pension costs
10,264
281,545
-
0
-
0
611,453
2,240,358
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
-
112,034
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
33,313
133
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
13,354
Other interest
-
1,012
Total finance costs
-
0
14,366
10
Other gains and losses
2023
2022
£
£
Gains on disposal of investments
-
10,565,937
11
Taxation
2023
2022
£
£
Current tax
Adjustments in respect of prior periods
10,086
-
0
LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Taxation
2023
2022
£
£
(Continued)
- 19 -
Deferred tax
Origination and reversal of timing differences
-
0
11,332
Total tax charge
10,086
11,332

The actual charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
(Loss)/profit before taxation
(334,453)
9,779,580
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(83,613)
1,858,120
Tax effect of expenses that are not deductible in determining taxable profit
90,215
116,477
Unutilised tax losses carried forward
4,654
13,086
Adjustments in respect of prior years
10,086
-
0
Group relief
(488)
(30,899)
Permanent capital allowances in excess of depreciation
-
0
17,918
Non controlling interest not taxable
(2,493)
(24,262)
Gains not taxable due to substantial shareholding exemption
-
0
(2,034,930)
Utilisation of tax losses brought forward
(2,690)
(50,122)
Pre acquisition losses not taxable in group
(5,585)
-
0
Deferred tax movement
-
11,332
Post disposal profits not taxable in group
-
134,612
Taxation charge
10,086
11,332

At 31st December 2023 the group had unrelieved losses amounting to approximately £93,000 (2022: £85,000) which are available to be carried forward and offset against future profits. A deferred tax asset is no longer recognised as the directors are uncertain about the timing and extent of sufficient taxable profits arising in the future to utilise the losses.

12
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
1,100,000
5,000,000
LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023
776,454
Additions
1,871,292
At 31 December 2023
2,647,746
Amortisation and impairment
At 1 January 2023
360,040
Amortisation charged for the year
254,574
At 31 December 2023
614,614
Carrying amount
At 31 December 2023
2,033,132
At 31 December 2022
416,414
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.

On 31st March 2023 a subsidiary company purchased a 100% interest in Lumen Asset Management Limited for £510,705, the book value of the company was £102,683 resulting in a goodwill addition of £408,022.

 

On 23 January 2023 a subsidiary company purchased an additional 9.9% of the profit share of Laven Advisors LLP for £1,463,270 resulting in a goodwill addition of £1,463,270.

14
Tangible fixed assets
Group
Office equipment
£
Cost
At 1 January 2023 and 31 December 2023
9,047
Depreciation and impairment
At 1 January 2023 and 31 December 2023
9,047
Carrying amount
At 31 December 2023
-
0
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
2,000,000
160,100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
842,600
Additions
1,999,900
At 31 December 2023
2,842,500
Impairment
At 1 January 2023
682,500
Impairment losses
160,000
At 31 December 2023
842,500
Carrying amount
At 31 December 2023
2,000,000
At 31 December 2022
160,100
16
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Laven Hosting Limited
7th Floor (North), 11 Old Jewry, London, EC2R 8DU
Consultancy
Ordinary
100.00
-
Laven Advisors LLP
See above
Consultancy
Ordinary
0
99.90
CPA Audit LLP
See above
Consultancy
Ordinary
100.00
-
MPAC Limited
See above
Compliance and regulatory advice
Ordinary
100.00
-
Lumen Asset Management Limited
See above
Consultancy
Ordinary
0
100.00
LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Subsidiaries
(Continued)
- 22 -
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Laven Hosting Limited
3,114,657
83,403
Laven Advisors LLP
1,555,012
1,430,965
CPA Audit LLP
(121,762)
(58,489)
MPAC Limited
(611,302)
(92,822)
Lumen Asset Management Limited
135,783
10,761

During the year the group purchased an additional 9.9% of the profit share of Laven Advisors LLP. The group also purchased 100% of the share capital of Lumen Asset Management Limited. The consolidated financial statements include the results of Lumen Asset Management Limited from the date of the purchase on 31 March 2023.

17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
337,451
402,756
-
0
-
0
Amounts owed by group undertakings
36,764
13,440
44,815
-
Other debtors
2,444,880
2,514,317
930,227
915,293
Prepayments and accrued income
990,643
2,373,177
830,668
2,286,635
3,809,738
5,303,690
1,805,710
3,201,928
Amounts falling due after more than one year:
Other debtors
200,000
-
0
200,000
-
0
Total debtors
4,009,738
5,303,690
2,005,710
3,201,928
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
162,865
151,853
-
0
-
0
Amounts owed to group undertakings
-
0
100,000
714,253
883,065
Other taxation and social security
33,301
36,576
-
-
Other creditors
2,057,543
2,077,356
135,000
135,000
Accruals and deferred income
51,412
318,817
6,950
6,950
2,305,121
2,684,602
856,203
1,025,015
LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
10,264
281,545

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

 

The company also makes contributions to the personal pensions of certain employees.

20
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
110
110
110
110
21
Acquisition of a business

On 31 March 2023 the group acquired 100 percent of the issued capital of Lumen Asset Manager Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Trade and other receivables
70,593
-
70,593
Cash and cash equivalents
122,985
-
122,985
Trade and other payables
(90,895)
-
(90,895)
Total identifiable net assets
102,683
-
102,683
Goodwill
408,022
Total consideration
510,705
The consideration was satisfied by:
£
Cash
510,705
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
195,860
Profit after tax
11,577
LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
22
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
89,975
101,674
89,975
101,674
Between two and five years
-
89,975
-
89,975
89,975
191,649
89,975
191,649
23
Related party transactions
Transactions with related parties

The group has taken advantage of the exemptions under FRS 102.33.1A, and has not disclosed transactions with wholly owned subsidiaries of the UK group.

 

During the year the group entered into the following transactions with related parties:

Rent received
Administrative expenses
2023
2022
2023
2022
£
£
£
£
Group
Other related parties
101,674
-
988,301
416,000

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Amounts owed to group
-
100,000
Other related parties
1,731,669
1,574,503

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Amounts owed to group
36,764
13,440
Other related parties
1,956,283
1,902,788

Amounts included above as owed to/from group relate to businesses that are under the control of the ultimate parent company but are outside of the UK group.

LAVEN PARTNERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
24
Controlling party

Laven Holdings Limited, a company registered in the British Virgin Islands, has been the ultimate parent company throughout the current and previous year.

25
Cash generated from/(absorbed by) group operations
2023
2022
£
£
(Loss)/profit for the year after tax
(344,539)
9,768,248
Adjustments for:
Taxation charged
10,086
11,332
Finance costs
-
0
14,366
Investment income
(33,313)
(133)
Amortisation and impairment of intangible assets
254,574
77,645
Depreciation and impairment of tangible fixed assets
-
864
Other gains and losses
-
(10,565,937)
Movements in working capital:
Decrease/(increase) in debtors
1,354,459
(339,437)
(Decrease)/increase in creditors
(470,376)
318,958
Cash generated from/(absorbed by) operations
770,891
(714,094)
26
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
3,341,672
(2,203,386)
1,138,286
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