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Company registration number: 07996925
Forshaws Accountants Limited
Unaudited filleted financial statements
31 March 2024
Forshaws Accountants Limited
Contents
Directors and other information
Statement of financial position
Notes to the financial statements
Forshaws Accountants Limited
Directors and other information
Directors A K Goddard
L J Johns
Secretary L K Clarke and T Kelly
Company number 07996925
Registered office Crossens Way
Southport
PR9 9LY
Business address Crossens Way
Southport
PR9 9LY
Forshaws Accountants Limited
Statement of financial position
31 March 2024
2024 2023
Note £ £ £ £
Fixed assets
Intangible assets 5 257,314 385,972
Tangible assets 6 23,206 28,574
_________ _________
280,520 414,546
Current assets
Debtors 7 279,968 226,917
Cash at bank and in hand 183,524 182,291
_________ _________
463,492 409,208
Creditors: amounts falling due
within one year 8 ( 323,738) ( 396,106)
_________ _________
Net current assets 139,754 13,102
_________ _________
Total assets less current liabilities 420,274 427,648
Provisions for liabilities ( 5,801) ( 17,657)
_________ _________
Net assets 414,473 409,991
_________ _________
Capital and reserves
Called up share capital 500 500
Profit and loss account 413,973 409,491
_________ _________
Shareholders funds 414,473 409,991
_________ _________
For the year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors responsibilities:
- 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 Act 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 and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 12 November 2024 , and are signed on behalf of the board by:
A K Goddard
Director
Company registration number: 07996925
Forshaws Accountants Limited
Notes to the financial statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, incorporated in England and Wales. The address of the registered office is Crossens Way, Southport, PR9 9LY. The principal activity of the company is that of providing accounting and auditing services.
2. Statement of compliance
The financial statements have been prepared in accordance with FRS 102 Section 1A - The Financial Reporting Standard applicable in the UK and Republic of Ireland (March 2018) and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis. The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts. Should the existing facilities not be sufficient to fund the company's working capital for the period ending 12 months from the date of approval of these financial statements, the directors have considered alternative sources of financing, including, but not restricted to, additional financial support from its shareholders, and understand that these funds would provide sufficient resource to meet any shortfall which may arise under agreed facilities.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for services rendered, including charges for the supply of third party computer software, insurance arrangement fees and apprentice grants receivable, net of discounts and Value Added Tax. When the outcome of a transaction involving the rendering of services can be reliably estimated, revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period. When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Goodwill
Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business.Goodwill is stated at cost less accumulated amortisation and accumulated impairment losses.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Goodwill - 10 % straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost of an asset, less its residual value, over the useful life of that asset as follows:
Short leasehold property - No depreciation is provided on leasehold properties
Fittings fixtures and equipment - 20 % reducing balance
Computer equipment - 33.33 % straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, an impairment charge is made accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Costs and expenses
Cost of sales includes all costs relating directly to the generation of turnover, including the employment costs relating to chargeable professional staff and directors. Employment costs include gross salaries, bonuses, overtime pay, holiday pay and pay for periods of sickness of less than six weeks' duration as well as employer's National Insurance and pension contributions. All other costs and expenses are disclosed as administrative expenses. These include the amortisation of intangible assets, premises expenses and the employment costs relating to administrative staff and staff on parental leave. In the opinion of the directors, the company does not incur any distribution costs or expenses similar to interest payable.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 16 (2023: 17 ).
5. Intangible assets
Goodwill Total
£ £
Cost
At 1 April 2023 and 31 March 2024 1,286,576 1,286,576
_________ _________
Amortisation
At 1 April 2023 900,604 900,604
Charge for the year 128,658 128,658
_________ _________
At 31 March 2024 1,029,262 1,029,262
_________ _________
Carrying amount
At 31 March 2024 257,314 257,314
_________ _________
At 31 March 2023 385,972 385,972
_________ _________
6. Tangible assets
Short leasehold property Fixtures, fittings and equipment Computer equipment Total
£ £ £ £
Cost
At 1 April 2023 1 21,433 72,154 93,588
Additions - 1,444 4,195 5,639
_______ _______ _______ _______
At 31 March 2024 1 22,877 76,349 99,227
_______ _______ _______ _______
Depreciation
At 1 April 2023 - 16,878 48,136 65,014
Charge for the year - 967 10,040 11,007
_______ _______ _______ _______
At 31 March 2024 - 17,845 58,176 76,021
_______ _______ _______ _______
Carrying amount
At 31 March 2024 1 5,032 18,173 23,206
_______ _______ _______ _______
At 31 March 2023 1 4,555 24,018 28,574
_______ _______ _______ _______
7. Debtors
2024 2023
£ £
Trade debtors 121,433 101,002
Amounts owed by group undertakings and undertakings in which the company has a participating interest 50,152 -
Other debtors 108,383 125,915
_________ _________
279,968 226,917
_________ _________
8. Creditors: amounts falling due within one year
2024 2023
£ £
Trade creditors 9,020 7,748
Social security and other taxes 60,572 143,142
Other creditors 254,146 245,216
_______ _______
323,738 396,106
_______ _______
9. Contingent assets and liabilities
The company has given its bankers security by way of fixed and floating charges over all of its assets in respect of any borrowings by the company or its parent company, South Hawes Holdings Limited. As at 31st March 2024, the company had no bank borrowings but its parent company had bank borrowings of £209,869. The directors consider it probable that the company will provide funds to its parent company in order to finance the repayment of these bank borrowings but that this will be done by way of dividends payable from future profits. Consequently, no liability has been recognised in these accounts in respect of those borrowings.
10. Controlling party
The controlling party is South Hawes Holdings Limited (company registration number 13598399) by virtue of its interest in 100% of the issued share capital in the company. The ultimate controlling party was Mr A K Goddard , a director of the company and a director and shareholder of the parent company.