REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 31 May 2024 |
for |
Halstead Independent Financial |
Management Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements for the Year Ended 31 May 2024 |
for |
Halstead Independent Financial |
Management Limited |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Contents of the Financial Statements |
for the Year Ended 31 May 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 7 |
Independent Auditors' Report | 9 |
Profit and Loss Account | 13 |
Balance Sheet | 14 |
Statement of Changes in Equity | 15 |
Cash Flow Statement | 16 |
Notes to the Cash Flow Statement | 17 |
Notes to the Financial Statements | 18 |
Halstead Independent Financial |
Management Limited |
Company Information |
for the Year Ended 31 May 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Network House |
Stubs Beck Lane |
Cleckheaton |
BD19 4TT |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Strategic Report |
for the Year Ended 31 May 2024 |
The directors present their strategic report for the year ended 31 May 2024. |
REVIEW OF BUSINESS |
Halstead Independent Financial Management Limited is a financial planning business which provides clients with independent financial advice. We intend to continue offering our discretionary fund management (DFM) services to clients as per our DFM service plan. The company is committed to delivering a fee based range of services to retail clients. |
Turnover in the year increased by £25,552 to £580,637 ; the reduction being due to stock market weakness. |
The operating profit of the company decreased by £326 to £231,399. |
The company's balance sheet has net assets of £282,482 compared to £312,396 in the previous year. |
The directors consider the annual results and the position of the company at the year end to be satisfactory. |
Key Performance Indicators |
The performance of the business is monitored by management through the use of various key performance indicators (KPI's). |
The directors consider the following to be the KPI's for the company:- |
2024 | 2023 | 2022 |
Turnover | 580,637 | 555,085 | 583,901 |
Operating profit | 40% | 42% | 37% |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Strategic Report |
for the Year Ended 31 May 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Liquidity Risk |
The firm manages all cash and borrowing requirements to maximise potential interest income whilst ensuring the firm has sufficient liquid resources to meet the continued operating needs of the business. This is supported by a robust budgeting and forecasting process which has the full involvement of the senior management team. |
Credit Risk |
The main credit risk for the firm relates to advisory fees, being the risk that a client does not pay amounts due for services provided. This risk is mitigated by the low number of clients in respect of which amounts are due at any one time. The risk of non payment is also reduced due to the nature of the clients as they are typically wealthy individuals. The firm's revenues include annual management charges received from clients based on a percentage of client assets under management. These changes are made directly to the clients' portfolios, and therefore the credit risk relating to this income is minimal. |
Business Risk |
The firm's business risk assessment principally takes the form of a fall in assets under management following a market downturn that leads to lower management fees, although other risks such as loss of advisers and systems failures are also considered. To mitigate the Company's business risk, the directors regularly analyse various different economic scenarios to model the impact of economic downturns on our financial position. |
Operational Risk |
Operational risk is defined as the potential risk of financial loss or impairment to reputation resulting from inadequate or failed internal processes and systems, from the actions of people or from external events. Major sources of operational risk include: outsourcing of operations, IT security, internal and external fraud, implementation of strategic change and regulatory non-compliance. The Company operates a robust risk management process which is regularly reviewed and updated with details being provided to all staff. The firm's Compliance Oversight is responsible for the periodic reviews and recommending any changes to the Board. All senior management will bear responsibility for internal controls and the management of business risk as part of their accountability to the board. |
Individuals are responsible for identifying the risks surrounding their work, implementing controls over those risks and reporting areas of concern to their line manager. The Compliance Oversight will provide the board with a yearly summary report on all significant risk issues using a traffic light system. |
Regulatory Risk |
The nature of the Company is such that it falls under the influence of regulators and legislators in the UK. The Company could face fines or be forced to cease trading if the regulations are not adhered to. To mitigate the risk, the Company has independent file reviews annually and an annual compliance review. Any noted recommendations are actioned. |
Competition and client retention |
Checking the quality of advice across the Company is fundamentally important to the future viability of the firm. Ensuring that all customers receive appropriate and suitable advice as well as being treated fairly is essential and assists with client retention. |
IT Risk |
IT Risk is a significant risk for the business. The data the firm stores is sensitive and commercially vital. The Company could be fined if data breaches occurred and would see significant falls in profitability if data was lost. |
To mitigate the risk, the Company uses outsourced software which is tested for hacking and who also back up the data to two separate sites. We also take a copy of the data stored on this system in electronic and paper format. |
The Company backs up its own in-house computers to the on site backup each night (which has two mirrored Hard Drives - to protect against hardware failure) and this in turn is backed up each night to an offsite European based cloud storage system. |
Market Risk |
The firm is indirectly subject to market risk as a significant element of income is dependent upon the value of client funds under management. The risk is mitigated by the asset allocation strategy adopted, which ensures that clients have highly diversified portfolios with limited exposure to any one asset class. Accordingly exposure to market risk is considered minimal. |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Strategic Report |
for the Year Ended 31 May 2024 |
REMUNERATION CODE DISCLOSURE |
The firm is subject to the MiFiDPRU Remuneration Code. This section provides further information on our remuneration policy. |
The directors have identified, and maintain a record of, "Remuneration Code Staff'. This includes senior management and members of staff whose actions may have a material impact on a firm's risk profile. All of our Code Staff fall into the "senior management" category of Code Staff for the purposes of the MiFiDPRU Remuneration Code. |
Decision Making / Remuneration Committee |
The Company does not have a Remuneration Committee. The Directors are responsible for the firm's remuneration policy including: |
- Determining the framework and policy for remuneration and ensuring it does not encourage undue risk taking. |
- Agreeing any major changes in remuneration structures. |
- Reviewing the terms and conditions of any new incentive schemes and in particular, considering the appropriate targets for any performance related remuneration schemes. |
- Considering and recommending the remuneration policy for the senior employees taking into account the appropriate mix of salary, discretionary bonus and share based remuneration. |
- In determining remuneration arrangements, the Directors will give due regard to best practice and any relevant legal or regulatory requirements including the MiFiDPRU Remuneration Code. |
Link Between Pay & Performance |
Competitive salaries form the basis of the firm's remuneration package. In addition there is an element of variable pay for all staff which is based on firm wide and individual performance. Whilst most of the variable reward components are awarded to employees across the firm, the structure, balance and amounts may differ. Variable remuneration is considerably reduced where subdued or negative financial performance of the firm occurs. |
When assessing individual performance, the directors use a robust performance review process, with reviews including qualitative criteria and, in the case of investment managers, long-term investment results are a factor in the assessment process. |
Quantitive Information on Remuneration |
The FCA rules require certain firms to disclose aggregate information on remuneration in respect of its MiFiDPRU Remuneration Code Staff broken down by business area, senior management and other Code Staff, including "risk takers". |
The firm only has one business area - investment management. The firm had 2 directors during the year but no "risk takers". |
Director remuneration is agreed formally at board meetings. The link between performance and pay is inevitable in a small firm, but the firm's risk averse strategy and robust risk management systems mitigate any risks. |
The firm holds regulatory capital in accordance with the Capital Requirements Directive. All such capital is classified as Tier 1 capital and is therefore of the highest quality. |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Strategic Report |
for the Year Ended 31 May 2024 |
CAPITAL RESOURCES |
Own Funds Requirement (OFR) |
A firm's Own Funds Requirement is the higher of: |
- its Permanent Minimum Requirement (PMR) |
- its Fixed Overheads Requirement (FOR) |
This is a minimum requirement. |
Own Funds Threshold Requirement (OFTR) |
The OFR may not be sufficient to mitigate the risk of harms a firm poses to its customers or markets. As part of its Internal Capital And Risk Assessment (ICARA) process, a firm needs to assess whether it needs to hold additional capital to: |
- mitigate any risk of harms from its outgoing activities |
- ensure the business can be wound down in an orderly manner |
The OFTR is the amount of own funds that a firm needs to hold at any given time to comply with the Overall Financial Adequacy Rule. |
Overall Financial Adequacy Rule (OFAR) |
The OFAR is the obligation for a MiFiDPRU investment firm to hold "own funds" and "liquid assets" which are adequate both as to their amount and quality to ensure that: |
a) the firm is able to remain financially viable throughout the economic cycle, with the ability to address any material potential harm that may result from its ongoing activities |
b) its business can be wound down in an orderly manner, minimising harm to consumers or to other market participants. |
The figure arrived at here is the higher of (a) and (b) above. This figure is then added to a firm's OFR. |
The firm's liquidity will be adequate for its size and for the complexity of its business. |
The directors estimate the firm's capital adequacy requirement, based on three month's fixed costs, to be £88,478. |
Under normal trading conditions and based on cautious estimates of turnover and costs, the directors estimate that the firm will continue to have capital significantly in excess of its capital adequacy requirement with the aim being by the end of the business year ending May 2024 that Surplus Capital will continue to be at least 200% of the capital adequacy requirement, with this to be maintained during 2024-25 accounting period. |
The firm will maintain an "early warning system". The aim of this system is that any reduction of the firm's liquidity to less than six months' fixed costs (as defined by the board in relation to the firm's capital adequacy requirements) will be noted by the board. This will present the board with ample opportunity to ensure that the firm's liquidity always remains within the bounds of prudence and within the regulatory requirements under which the firm operates. The firm will produce a monthly cash sheet as a further aid in monitoring liquidity. |
Were the firm to undertake any acquisitions of IFA books of business, the board would strengthen the capital base of the firm, if necessary, as appropriate to the circumstances at the time. |
Regulatory capital |
The main features of the company's capital resources for regulatory purposes are:- |
Capital Item: |
2024 | 2023 | 2022 |
Tier 1 capital | 289,000 | 312,000 | 302,000 |
Total of tier 1 & tier 2 capital | - | - | - |
Deductions from tier 1 & tier 2 capital | - | - | - |
Total capital resources, net of deductions | 289,000 | 312,000 | 302,000 |
ON BEHALF OF THE BOARD: |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Strategic Report |
for the Year Ended 31 May 2024 |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Report of the Directors |
for the Year Ended 31 May 2024 |
The directors present their report with the financial statements of the company for the year ended 31 May 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of providing financial advice. |
DIVIDENDS |
Interim dividends per share were paid as follows: |
Ordinary A £1 shares | - 6 April 2024 |
Ordinary B £1 shares | - 6 April 2024 |
Ordinary C £1 shares | - 6 April 2024 |
The directors recommend that no final dividends be paid. |
The total distribution of dividends for the year ended 31 May 2024 will be £ |
FUTURE DEVELOPMENTS |
The directors believe that the UK financial services industry offers attractive prospects for long term growth, through the provision of high standards of advice, investment management and service to clients. |
Specifically, the firm believes that offering 'in-house' discretionary management services to supplement a high quality financial planning service allows the firm to provide a truly holistic planning service for its clients and will help them to better plan for their specific objectives. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 June 2023 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
Within the year the company made charitable donations of £6,301 (2023: £5,310). None of these donations were to any political entity. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Report of the Directors |
for the Year Ended 31 May 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
Halstead Independent Financial |
Management Limited |
Opinion |
We have audited the financial statements of Halstead Independent Financial Management Limited (the 'company') for the year ended 31 May 2024 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the company's affairs as at 31 May 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Auditors' Report thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Halstead Independent Financial |
Management Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
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: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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 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 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 company or to cease operations, or have no realistic alternative but to do so. |
Independent Auditors' Report to the Members of |
Halstead Independent Financial |
Management Limited |
Auditors' 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 Auditors' 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. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations; this responsibility lies with management. |
The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations. |
We identified the laws and regulations applicable to the company through discussions with the directors and from our commercial knowledge and experience of FCA regulated entities. |
We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or operation of the company. These included the Companies Act 2006 and legislation for taxation, data protection, anti-bribery, employment and health & safety. The company is also regulated by the Financial Conduct Authority (FCA). |
We assessed the extent of compliance with these laws and regulations through making enquiries of the directors and checking information on public record on the FCA website about the company. We also reviewed minutes of management meetings and read reports produced by the company's FCA compliance consultants. |
Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
We enquired of the directors if there was any actual or potential litigation or claims involving the company. |
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by the following procedures: |
We asked the directors as to where they considered there was susceptibility to fraud and whether they had knowledge of actual, suspected or alleged fraud. |
We considered the internal controls in place to mitigate risks of fraud and non- compliance with laws and regulations. |
We used the Mercia audit package to guide our audit work so that we maximised the likelihood of detection of irregularities, including fraud. |
We addressed the fraud risk relating to management override of controls by the following procedures: |
We carried out analytical procedures to identify any unusual matters. |
We assessed whether there was any potential management bias evident in making judgements and assumptions underlying accounting estimates. |
We investigated the rationale behind significant or unusual transactions. |
We addressed the fraud risk relating to revenue recognition by carrying out substantive testing of sales and accrued income |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report. |
Independent Auditors' Report to the Members of |
Halstead Independent Financial |
Management Limited |
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 Auditors' 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. |
for and on behalf of |
Network House |
Stubs Beck Lane |
Cleckheaton |
BD19 4TT |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Profit and Loss Account |
for the Year Ended 31 May 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
226,366 | 225,165 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Balance Sheet |
31 May 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Debtors | 9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
( |
) |
PROVISIONS FOR LIABILITIES | 14 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Statement of Changes in Equity |
for the Year Ended 31 May 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 June 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2024 |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Cash Flow Statement |
for the Year Ended 31 May 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) |
Capital repayments in year |
Amount introduced by directors | 4,900 | 63,601 |
Amount withdrawn by directors | (20,897 | ) | (69,230 | ) |
Loan repaid to estate of former director | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Decrease in cash and cash equivalents | ( |
) | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
333,927 |
Cash and cash equivalents at end of year | 2 | 294,679 | 305,840 |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Notes to the Cash Flow Statement |
for the Year Ended 31 May 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Finance income | (3,503 | ) | (2,195 | ) |
251,447 | 242,076 |
Decrease/(increase) in trade and other debtors | ( |
) |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 May 2024 |
31.5.24 | 1.6.23 |
£ | £ |
Cash and cash equivalents | 294,679 | 305,840 |
Year ended 31 May 2023 |
31.5.23 | 1.6.22 |
£ | £ |
Cash and cash equivalents | 305,840 | 333,927 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.6.23 | Cash flow | At 31.5.24 |
£ | £ | £ |
Net cash |
Cash at bank | 305,840 | (11,161 | ) | 294,679 |
305,840 | ( |
) | 294,679 |
Debt |
Finance leases | - | (28,702 | ) | (28,702 | ) |
- | (28,702 | ) | (28,702 | ) |
Total | 305,840 | (39,863 | ) | 265,977 |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Notes to the Financial Statements |
for the Year Ended 31 May 2024 |
1. | STATUTORY INFORMATION |
Halstead Independent Financial Management Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The principal activity of the company for the year under review was that of providing financial advice. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Critical accounting judgements and key sources of estimation uncertainty |
Preparation of the financial statements requires management to make significant judgements and estimates. The items in the financial statements where these judgements and estimates have been made include: |
Useful economic lives of tangible assets |
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.The total amount of accumulated depreciation at the year end is shown in the fixed asset note. |
Accrued income |
The company estimates accrued income based on premiums received since the year end. The amount accrued is shown in the debtors note. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Motor vehicles | - |
Computer equipment | - |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Administrative staff |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
4. | EMPLOYEES AND DIRECTORS - continued |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss on disposal of fixed assets |
Auditors' remuneration |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax - timing |
Tax on profit |
UK corporation tax has been charged at 24.80% . |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
6. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Non qualifying depreciation | 1,291 | 1,041 |
Deferred tax rate difference | (402 | ) | (431 | ) |
Total tax charge | 59,316 | 49,662 |
7. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Ordinary A shares of £1 each |
Interim |
Ordinary B shares of £1 each |
Interim |
Ordinary C shares of £1 each |
Interim |
8. | TANGIBLE FIXED ASSETS |
Improvements |
to | Plant and | Motor | Computer |
property | machinery | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 June 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 May 2024 |
DEPRECIATION |
At 1 June 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
At 31 May 2023 |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
8. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
Additions |
At 31 May 2024 |
DEPRECIATION |
Charge for year |
At 31 May 2024 |
NET BOOK VALUE |
At 31 May 2024 |
9. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Directors' current accounts | 14,203 | - |
Accrued income |
Prepayments |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 12) |
Tax |
Social security and other taxes |
VAT | 14,790 | 4,591 |
Other creditors |
Directors' current accounts | - | 1,794 |
Accrued expenses |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 12) |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
12. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable | operating leases |
2024 | 2023 |
£ | £ |
Within one year |
13. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Hire purchase contracts | 28,702 | - |
Hire purchase debts are secured over the specific asset financed. |
14. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Other timing differences | (3,566 | ) | (5,283 | ) |
7,713 | 473 |
Deferred |
tax |
£ |
Balance at 1 June 2023 |
Provided during year |
Balance at 31 May 2024 |
Halstead Independent Financial |
Management Limited (Registered number: 06408991) |
Notes to the Financial Statements - continued |
for the Year Ended 31 May 2024 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary A | £1 | 32,000 | 32,000 |
Ordinary B | £1 | 40,000 | 40,000 |
Ordinary C | £1 | 8,000 | 8,000 |
80,000 | 80,000 |
A, B and C shares are non-redeemable, with full voting and full distribution rights. |
16. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
As at 31 May 2024, there was amounts owing to the company totalling £14,203 and will be repaid within 9 months of the year end. |
17. | RELATED PARTY DISCLOSURES |
2024 | 2023 |
£ | £ |
Sales |
Office rent & utilities | 4,900 | 4,900 |
Interest receivable | - | 345 |
2024 | 2023 |
£ | £ |
Sales |
18. | ULTIMATE CONTROLLING PARTY |
The controlling party is M W Halstead. |