Registered number:
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
COMPANY INFORMATION
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LOYAL NORTH PLC
CONTENTS
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LOYAL NORTH PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024
The directors present their strategic report for the year ended 31 May 2024.
Principal activities The principal activities of Loyal North Plc ("the Company") continued to be that of a holding company and the provision of centralised support services to its operating subsidiaries of Independent Financial Advisers (IFAs). Loyal North Plc and its subsidiaries are collectively known as the “Loyal North Group”. The Company became a corporate member of its associate partnership, Fusion Asset Management LLP (“FAM LLP”) from 21 November 2024 and commenced the provision of administrative and office services. Business review and financial performance The long-term strategy of the Company remains focused on growing the business through both organic growth and acquisitions of local IFA practices to build a nationally recognised brand, with strategic locations serving the financial advice market in the United Kingdom. The acquired IFA businesses in the Loyal North Group benefit from centralised operational, investment, finance and compliance resources, as well as access to Loyal North Group’s propriety digital hybrid advice solution JustFA platform via JustFA Technology Limited (“JustFA”), a subsidiary of the Company. JustFA platform services are also being made available for use by other financial planning firms outside the Loyal North Group. During the year ended 31 May 2024, the Loyal North Group has successfully made several acquisitions comprising of: 1. 100% of the share capital of Norfolk-based IFA Quay Financial Planning Limited on 29 June 2023. The acquired business joined Loyal North’s regional hub firm Gerald Pepper Financial Management Limited; 2. Assets of Sovereign Financial Services (Scottish Borders) Limited which is based in Galashiels in the Scottish Borders on 1 November 2023. The acquired business joined Loyal North’s regional hub firm Lowland Financial Planning Limited; 3. Assets of Newcastle-based IFA S&C Richards Partnership on 2 November 2023. The acquired business joined Loyal North’s regional hub firm Milsted Langdon Financial Services Limited; 4. Assets of IFA Steve Carson who serves client base in the Midlands and East Anglia on 18 January 2024. The acquired business joined Loyal North’s regional hub firm Milsted Langdon Financial Services Limited; and 5. 100% of the share capital of Surrey-based IFA Whitman Fry Wealth Management Limited on 12 April 2024. The acquired business joined Loyal North’s regional hub firm Gerald Pepper Financial Management Limited. The acquisitions above brought a further £193m of client funds to the Loyal North Group and bolstered the Loyal North Group’s existing presence in Southeast England and Scotland, as well as expanding its presence to Northeast England. On 11 October 2023, the Company acquired the remaining share capital of 24.9% in its subsidiary company, Bidco ML Limited, resulting in the subsidiary company being wholly owned by Loyal North Plc post transaction date. During the year, the Company continued to invest in its management team through the recruitment of a Group Finance Director. The Company’s management team together with the management teams of each Loyal North IFA businesses worked closely on the IFA’s FCA consumer duty implementation to ensure that each of the four principles of consumer duty brings the best outcome possible for the Loyal North IFA customers.
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LOYAL NORTH PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
The Company reported a profit for the year, after taxation, amounted to £505,926 (2023 - £1,985,134).
The management team reviews and considers the following financial and non-financial measures as performance indicators of the Company and the Loyal North Group on a monthly and quarterly basis:
Financial measures:
∙EBITDA performance and its growth on prior period;
∙Cash flows management;
∙Debt Service Cover Ratio;
∙Leverage Ratio; and
∙Revenue performance.
Non-financial measures:
∙Asset under management (“AUM”) growth both organic and acquisition;
∙Reviews of existing clients; and
∙Number of new clients.
These are reviewed and compared with targets to gain an understanding of the Company’s overall performance.
The main risks identified by the Company are that of:
1.Concentration risk, which is defined as the potential for financial loss due to overexposure to a single counterparty or geographic region is being mitigated by diversifying into various IFA firms and clients base across the UK;
2.Operational risk, which is defined as the potential for business operations disruption arising from systems failures, inadequate processes, people and external events is being mitigated by developing and implementing robust policies and procedures, management team oversight, and the promotion of stability, engagement and diversity in the workforce;
3.Financial risk, which is defined as the potential for the Company and its Loyal North Group having insufficient financial resources or suffering loss from adverse market conditions or the failure/default of counterparties. The Company has a secured term loan facility with a bank and is bound by certain covenant compliance thresholds, which is being mitigated through prudent management of its Loyal North Group cost base, revenue growth and cash flows; and
4.Regulatory risk as the Loyal North Group operates in a fast-moving regulatory environment and is mitigated by robust compliance process being in place. These are supported and overseen by the Group Compliance Director (“GCD”) who promotes a client centric and compliance-focused culture.
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LOYAL NORTH PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
The Board of Directors is responsible for establishing, implementing and maintaining adequate and proportionate policies and procedures sufficient to ensure that the Company complies with its obligations in maintaining the Company’s operations. Procedures are enforced and developed on an ongoing basis in order to effectively mitigate various risks that may arise during the course of business.
Section 172 (1) statement The Company's Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider would be most likely to promote the success of the Company for the benefit of its members as a whole. They consider the impact that any material decision will have on all relevant stakeholders to ensure that it is making a decision that promotes the long-term success of the Company. The directors are collectively responsible for ensuring that the Company's operations are aligned to our internal values and to focus on the short and long term strategically important decisions of the Company. This includes how the Company will act fairly and engage wih all key stakeholders.
This report was approved by the board and signed on its behalf.
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LOYAL NORTH PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024
The directors present their report and the financial statements for the year ended 31 May 2024.
The directors are responsible for preparing the strategic report, the directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙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 to 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.
The profit for the year, after taxation, amounted to £505,926 (2023 - £1,985,134).
No dividends have been declared during the year or the prior year.
The directors who served during the year and up to the date of signing of these financial statements were:
The Company's objective is to acquire financial advice firms (IFA) with the view to enhance its client proposition, growing its Loyal North Group’s financial advisers numbers and helping more customers across wider locations within the United Kingdom. The Company is also looking to strengthen its ranks via organic growth.
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LOYAL NORTH PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
The Company has the commitment with a leading bank for uncommitted accordion loan up to £3,175,000 for the purpose of acquiring IFA companies in the next few years.
Post balance sheet events Following the year ended 31 May 2024, the Loyal North Group has successfully made further acquisitions comprising of: 1. 100% of the share capital of Herfordshire-based IF Wealth Limited on 16 August 2024. The acquired business joined Loyal North’s regional hub firm Gerald Pepper Financial Management Limited; 2. Assets of Enlighten Financial Services Limited which is based in Epsom, Surrey on 4 September 2024. The acquired business joined Loyal North’s regional hub firm Gerald Pepper Financial Management Limited; 3. 100% of the share capital of Dorset-based Blue House Financial Services Limited on 10 September 2024. The acquired business joined Loyal North’s regional hub firm Milsted Langdon Financial Services Limited; 4. 100% of the share capital of Wiltshire-based Lewins Investments Limited on 10 September 2024. The acquired business joined Loyal North’s regional hub firm Milsted Langdon Financial Services Limited; and 5. 100% of the share capital of Essex-based Powell Financial Planning Limited on 16 September 2024. The acquired business joined Loyal North’s regional hub firm Gerald Pepper Financial Management Limited. The post balance sheet date acquisitions above brought a further £139m of client funds to the Loyal North Group and bolstered the Loyal North Group’s existing presence in the Southeast, Southwest and East of England. The following subsidiary companies were dissolved following an exercise to streamline the group entities: i. Its 100% owned and a dormant subsidiary company, Bidco IC Limited on 13 August 2024; ii. Its 100% owned through Bidco ML Limited and a dormant indirect subsidiary company, Consular Financial Planning Limited on 17 September 2024; and iii. Its 100% owned through Bidco GPFM Limited and a non-trading indirect subsidiary company, Quay Financial Planning Limited on 8 October 2024. On 29 October 2024, the Company acquired the remaining share capital of 24.8% in its subsidiary company, Bidco GPFM Limited, resulting in the subsidiary company being wholly owned by Loyal North Plc post transaction date. On 21 November 2024, the Company became a member of Fusion Asset Management LLP by making a capital contribution of 47.5%. Such contribution results in Fusion Asset Management LLP being recognised as an associate to the Company and benefits from the subsequent profit sharing from the limited liability partnership.
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LOYAL NORTH PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
The auditor, Adler Shine LLP, will be proposed for reappointment in accordance with section 489 of the Companies Act 2006.
Going concern
Having reviewed the company's results for the period, its financial forecast and expected cashflows, the directors are of the opinion that the Company has adequate resources available to it to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt a going concern basis in preparing the financial statements for the period ended 31 May 2024.
This report was approved by the board and signed on its behalf.
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LOYAL NORTH PLC
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LOYAL NORTH PLC
We have audited the financial statements of Loyal North PLC (the 'Company') for the year ended 31 May 2024, which comprise the statement of comprehensive income, the balance sheet, the statement of cash flows, the statement of changes in equity and the related notes, 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).
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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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.
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LOYAL NORTH PLC
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LOYAL NORTH PLC (CONTINUED)
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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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 directors' report.
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LOYAL NORTH PLC
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LOYAL NORTH PLC (CONTINUED)
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. 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, we have: • considered the nature of the industry and sectors, control environment and business performance; • made enquires of management about their own identification and assessment of the risk of irregularities; • performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness and reviewing accounting estimates for bias; • undertaken appropriate sample based testing of bank transactions; • identified and evaluated compliance with relevant laws and regulations and made enquiries of any instances of non-compliance. The key laws and regulations we considered in this context included UK Companies Act, data protection, anti-bribery, employment law, health and safety, Money Laundering Act and Financial Conduct Authority (FCA) Regulations; and • discussed matters among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.
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.
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 auditor's report.
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LOYAL NORTH PLC
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LOYAL NORTH PLC (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
Aston House
Cornwall Avenue
N3 1LF
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LOYAL NORTH PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
REGISTERED NUMBER: 09124855
BALANCE SHEET
AS AT 31 MAY 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 36 form part of these financial statements.
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LOYAL NORTH PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Loyal North Plc is a public company limited by shares and registered in England and Wales. Its principal place of business and registered office address is 2 Queen Anne’s Gate Buildings, 22 Dartmouth Street, London, SW1H 9BP.
The principal activities of Loyal North Plc ("the Company") continued to be that of a holding company and the provision of centralised support services to its operating subsidiaries of Independent Financial Advisers (IFAs), which together with the Company form the “Loyal North Group”. The Company became a corporate member of its associate partnership, Fusion Asset Management LLP (“FAM LLP”) from 21 November 2024 and commenced the provision of administrative and office services. The financial statements are presented in Sterling (£), and rounded to the nearest £1.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland ("FRS 102") and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The turnover comparative of £31,402 has been restated to net off rent receivable against rent payable.
The following principal accounting policies have been applied:
The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
The Company and its subsidiaries continued to show strong growth. Due to this strong performance and the ongoing acquisitions both during and following the year end the directors are optimistic about the future prospects of the Company and its subsidiaries.
After making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. At the balance sheet date, the Company had £3,924,831 (2023 - £2,815,323) in outstanding bank loans which are subject to term loan facility covenant that is measured on a quarterly basis. Management are confident the agreed covenant will be met throughout the outlook period. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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 receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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 the deduction of all its liabilities.
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
2.Accounting policies (continued)
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Preference shares, which have no redemption entitlement, are classified as equities. The dividends on these preference shares are taken to the income statement as interest payable.
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Investments in subsidiaries The Company holds investments in subsidiaries that have been designated at fair value through profit and loss. The Company determines the fair value of these financial instruments that are not quoted using valuation techniques in line with industry standards. These techniques are significantly affected by key assumptions, and the derived fair value cannot always be substantiated by comparison with independent markets, and, in many cases, may not be capable of being realised immediately.
Analysis of turnover by country of destination:
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
10.Taxation (continued)
There were no factors that may affect future tax charges.
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
Profit and loss account
The profit and loss account includes non-distributable reserves of £10,122,829 (2023 - £9,184,905), and a deficit in distributable reserves of £3,038,977 (2023 - £2,606,979).
The Company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the Company to the scheme and amounted to £6,073 (2023 - £2,943).
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
1. 100% of the share capital of Herfordshire-based IF Wealth Limited on 16 August 2024. The acquired business joined Loyal North’s regional hub firm Gerald Pepper Financial Management Limited; 2. Assets of Enlighten Financial Services Limited which is based in Epsom, Surrey on 4 September 2024. The acquired business joined Loyal North’s regional hub firm Gerald Pepper Financial Management Limited; 3. 100% of the share capital of Dorset-based Blue House Financial Services Limited on 10 September 2024. The acquired business joined Loyal North’s regional hub firm Milsted Langdon Financial Services Limited; 4. 100% of the share capital of Wiltshire-based Lewins Investments Limited on 10 September 2024. The acquired business joined Loyal North’s regional hub firm Milsted Langdon Financial Services Limited; and 5. 100% of the share capital of Essex-based Powell Financial Planning Limited on 16 September 2024. The acquired business joined Loyal North’s regional hub firm Gerald Pepper Financial Management Limited. The post balance sheet date acquisitions above brought a further £139m of client funds to the Loyal North Group and bolstered the Loyal North Group’s existing presence in the Southeast, Southwest and East of England. The following subsidiary companies were dissolved following an exercise to streamline the group entities: i. Its 100% owned and a dormant subsidiary company, Bidco IC Limited on 13 August 2024; ii. Its 100% owned through Bidco ML Limited and a dormant indirect subsidiary company, Consular Financial Planning Limited on 17 September 2024; and iii. Its 100% owned through Bidco GPFM Limited and a non-trading indirect subsidiary company, Quay Financial Planning Limited on 8 October 2024. On 29 October 2024, the Company acquired the remaining share capital of 24.8% in its subsidiary company, Bidco GPFM Limited, resulting in the subsidiary company being wholly owned by Loyal North Plc post transaction date. On 21 November 2024, the Company became a member of Fusion Asset Management LLP by making a capital contribution of 47.5%. Such contribution results in Fusion Asset Management LLP being recognised as an associate to the Company and benefits from the subsequent profit sharing from the limited liability partnership.
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LOYAL NORTH PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
The immediate parent company is
The results of the company are consolidated in Fusion Asset Management (Services) Limited, a private company limited by shares and registered in England and Wales. The consolidated accounts can be obtained from Companies House.
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