Company registration number 12024416 (England and Wales)
PEARSON SOLICITORS AND FINANCIAL ADVISERS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
PEARSON SOLICITORS AND FINANCIAL ADVISERS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
PEARSON SOLICITORS AND FINANCIAL ADVISERS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
4
1,908,072
2,200,880
Tangible assets
5
350,166
221,422
2,258,238
2,422,302
Current assets
Debtors
6
1,814,472
2,260,831
Cash at bank and in hand
771,679
460,097
2,586,151
2,720,928
Creditors: amounts falling due within one year
7
(3,315,730)
(1,541,233)
Net current (liabilities)/assets
(729,579)
1,179,695
Total assets less current liabilities
1,528,659
3,601,997
Creditors: amounts falling due after more than one year
8
(336,726)
(2,851,893)
Provisions for liabilities
(72,633)
(55,037)
Net assets
1,119,300
695,067
Capital and reserves
Called up share capital
9
3
3
Profit and loss reserves
1,119,297
695,064
Total equity
1,119,300
695,067
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
PEARSON SOLICITORS AND FINANCIAL ADVISERS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2024
31 March 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 5 November 2024 and are signed on its behalf by:
J P Ormston
Director
Company registration number 12024416 (England and Wales)
PEARSON SOLICITORS AND FINANCIAL ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
1
Accounting policies
Company information
Pearson Solicitors and Financial Advisers Limited is a private company limited by shares and is registered and incorporated in England and Wales. The registered office is 31 Queen Street, Oldham, United Kingdom, OL1 1RD.
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.
1.2
Business combinations
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.
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.
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
The turnover shown in the profit and loss accounts represents amounts receivable during the year, exclusive of Value Added Tax.
Turnover is recognised when a right to consideration has been obtained through performance under each contract. Consideration accrues as contract activity progresses by reference to the value of work performance. Revenue in respect of conditional or contingent fee engagements, over and above any agreed minimum fee, is recognised when the contingent event occurs.
1.5
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 10 years. The useful economic lives are reviewed at the end of each reporting period.
1.6
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.
PEARSON SOLICITORS AND FINANCIAL ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
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:
Leasehold improvements
Over the period of the lease
Fixtures and fittings
15% reducing balance
Computers
25% straight line
Motor vehicles
15% straight line
Library
20 years straight line
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.
The directors estimate the residual value of the library to be greater than the historic cost therefore the depreciation is calculated as £nil.
1.7
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.
1.8
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.
1.9
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 trade and other creditors 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest.
PEARSON SOLICITORS AND FINANCIAL ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
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.
Basic financial liabilities
Basic financial liabilities, including trade and other creditors, bank loans 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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
1.10
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.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax. Current tax assets are recognised when tax paid exceeds the tax payable.
Current and deferred is charged or credited to profit or loss, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.
Current tax assets and current tax liabilities and deferred tax assets and deferred tax liabilities are offset, if and only if, there is a legally enforceable right to set off the amounts and the entity intends either to settle on the net basis or to realise the asset and settle the liability simultaneously.
Current tax
The tax currently payable is based on taxable profit for the year. Current tax assets and liabilities are are measured using tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date.
Deferred tax liabilities are recognised for all timing differences that exist at the reporting date. Timing differences are differences between taxable profits and total comprehensive income that arise from the inclusion of income and expenses in tax assessments in different periods from their recognition in the financial statements. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination and the amounts that can be deducted or assessed for tax. The deferred tax recognised is adjusted against goodwill.
PEARSON SOLICITORS AND FINANCIAL ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 6 -
1.12
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.
1.13
Retirement benefits
For defined contribution schemes the amount charged to profit or loss is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
1.15
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the reporting date. Non-monetary assets and liabilities denominated in foreign currencies are translated at the rate ruling at the date of transaction, or, if the asset or liability is measured at fair value, the rate when that fair value was determined.
All translation differences are taken to profit or loss, except to the extent that they relate to gains or losses on non-monetary items recognised in other comprehensive income, when the related translation gain or loss is also recognised in other comprehensive income.
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
PEARSON SOLICITORS AND FINANCIAL ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
77
72
4
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023
3,001,200
Additions
8,125
At 31 March 2024
3,009,325
Amortisation and impairment
At 1 April 2023
800,320
Amortisation charged for the year
300,933
At 31 March 2024
1,101,253
Carrying amount
At 31 March 2024
1,908,072
At 31 March 2023
2,200,880
PEARSON SOLICITORS AND FINANCIAL ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
5
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Motor vehicles
Library
Total
£
£
£
£
£
£
Cost
At 1 April 2023
7,547
63,479
119,426
177,978
9,089
377,519
Additions
3,085
64,141
186,391
253,617
Disposals
(75,429)
(75,429)
At 31 March 2024
7,547
66,564
183,567
288,940
9,089
555,707
Depreciation and impairment
At 1 April 2023
2,013
21,786
66,234
66,064
156,097
Depreciation charged in the year
755
6,369
36,766
38,487
82,377
Eliminated in respect of disposals
(32,933)
(32,933)
At 31 March 2024
2,768
28,155
103,000
71,618
205,541
Carrying amount
At 31 March 2024
4,779
38,409
80,567
217,322
9,089
350,166
At 31 March 2023
5,534
41,693
53,192
111,914
9,089
221,422
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
725,054
781,416
Corporation tax recoverable
140,708
140,708
Other debtors
314,879
798,713
Prepayments and accrued income
633,831
539,994
1,814,472
2,260,831
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
545,666
507,703
Trade creditors
28,922
41,037
Corporation tax
267,824
173,441
Other taxation and social security
179,849
206,978
Other creditors
2,293,469
612,074
3,315,730
1,541,233
PEARSON SOLICITORS AND FINANCIAL ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Creditors: amounts falling due within one year
(Continued)
- 9 -
Included within creditors falling due under one year are £Nil (2023 - £387,703) of overdrafts and £120,000 (2023 - £120,000) of loans which are secured by the company.
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
220,000
340,000
Other creditors
116,726
2,511,893
336,726
2,851,893
Included within creditors falling due over one year are £220,000 (2023 - £340,000) of loans which are secured by the company.
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3
3
3
3
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
15,667
26,336
11
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
The company is related to Albion House Wealth Management Ltd (AHW) due to common directors and shareholders. During the year the company made charges to AHW of £NIL (2023: £NIL). In addition, Pearson Solicitors and Financial Advisers Limited (PSFA) loaned AHW £36,638 (2023: £54,595). At the balance sheet date no repayments had been made and the balance remains £314,879 (2023: £276,241) and is included in other debtors. The loan is informal, no interest is charged and it is repayable on demand.
During the period, the company was charged rent of £36,000 (2023 - £36,000) by Pearson Hinchliffe Properties Limited, a company in which a number of the directors are shareholders.
PEARSON SOLICITORS AND FINANCIAL ADVISERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
12
Directors' transactions
Dividends totalling £129,000 (2023 - £129,000) were paid in the year in respect of shares held by the company's directors.
At the year end, the company owed its directors £1,411,797 (2023: £2,460,000). No interest has been charged in the period on the balance.
13
Directors' remuneration and dividends
2024
2023
£
£
Remuneration paid to directors
118,465
112,948
Dividends paid to directors
129,000
129,000
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 0 (2023 - 3).
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