Acuity Law Group Limited |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 30 November |
Acuity Law Group Limited |
Group Strategic Report, Report of the Directors and |
Audited Consolidated Financial Statements for the Year Ended 30 November |
Acuity Law Group Limited |
Company Information |
for the Year Ended 30 November 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
Nicholas Matthew Toye FCA |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
Radnor House |
Greenwood Close |
Cardiff Gate Business Park |
Cardiff |
CF23 8AA |
Acuity Law Group Limited (Registered number: 11172025) |
Group Strategic Report |
for the Year Ended 30 November 2023 |
The directors present their strategic report of the company and the group for the year ended 30 November 2023. |
REVIEW OF BUSINESS |
Acuity Law Group Limited |
The company's only transactions relates to dividends up from its subsidiaries and any appropriate onward payments. |
Acuity Law Limited |
Principal activity |
The principal activity of the business is the provision of legal services to commercial clients, which includes supplying legal advice and technology led products to facilitate legal and business processes. |
Review of our business |
The 2022/2023 financial year has seen the group expand headcount and geographical reach. We have been successful in attracting new talent into our employed division and our team of self-employed consultant partners. At the same time we have opened a new office in Birmingham and widened our service offering with more specialist skills across the firm. A particular success has been our healthcare sector team which has a national reputation and is particularly strong in the dentistry sub-sector. |
We continue to invest in our "professional platform" to attract skilled professional talent and that is through a mix of technology and softer professional resources. We believe that we offers senior lawyers a great environment to prosper both financially and professionally. We have an innovative remuneration structure that allows both employed and consultant partners to share in the profits of the work they deliver. At the junior level, we focus on nurturing and developing talent, so that we can grow the next generation of top business lawyers. |
We continue to grow at a steady and manageable rate through lateral hires of employed staff and the recruitment of new self-employed consultant partners. This has enabled us to widen the range of skills within the firm, and we see this as an important driver for the firm as it gives access new clients and to increase the work we do for existing clients. |
We see enormous potential to grow our team of consultant partners. We have a strong pipeline of interested candidates and expect this to continue as traditional law firms react to tightening economic conditions. We only recruit new consultants who meet our professional criteria, and our focus is very much on quality of new recruits and not quantity. |
Over the last three years we have made significant investment in professional infrastructure, which includes physical items (such as offices and equipment) and systems and software. We see the provision of IT solutions to clients as important to the developments of the firm, and this has included the development and roll-out of a new client portal and the development of software-based products (such as fast draft documents and knowledge banks) that we will offer to existing and new clients alongside our core legal advisory services. |
Acuity Law Group Limited (Registered number: 11172025) |
Group Strategic Report |
for the Year Ended 30 November 2023 |
Key Performance Indicators (KPIs): |
During the 2022/23 financial year we enjoyed strong growth and maintained margin as reflected in the following KPIs which are relative to the 2021/22 financial year: |
- Turnover increased by 7.6%. |
- Our gross profit decreased by 5.4% and our gross profit margin is at a healthy 43%. |
- Our total headcount (including consultants engaged by the firm) increased by 21%. |
- The total number of consultant partners increased to 39, an increase of 11%. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Acuity Law Group Limited |
As the company is simply a holding company and only likely to receive and pay out dividends any risks or uncertainties will relate to the company's subsidiaries as detailed below. |
Acuity Law Limited |
Over the course of the 2023/24 financial year we saw a retraction of investment by many of our business clients and especially in the commercial property sector, where high costs of finance and the impact of inflation on materials caused clients to scale back development plans. However, this has been mitigated by growth in some of our key sectors such as healthcare and residential development. |
Like most other legal businesses we have seen wage pressures and we gave pay rises in the 3%-6% range at the end of the financial year with healthy bonuses to those lawyers who delivered top results in the year. |
We have noted an increase in stressed situations with our client base, and this has led to an increase in bad debts. However at 2.8% of total revenues we have been able to avoid any material impact on our financial well-being. |
FUTURE DEVELOPMENTS |
Acuity Law Group Limited |
The company will continue to act as the group holding company. Future developments in relation to the company's only active subsidiary are detailed below. |
Acuity Law Limited |
We see the opportunities presented by technology as key to our continued growth and success. We have made significant investment into our client facing tech-interface and we plan to roll out some market leading solutions for our clients in the next 12 months. This will enable our lawyers to work more efficiently and for clients to have better access to legal solutions. We hope this will help drive subscription revenues. |
We continue to grow our professional services that complement our core legal expertise, and these include regulatory advice, corporate broking, and training services. We have strong client retention, and the ability to package solutions for clients and to develop additional revenue streams. We have seen strong results from our "alliance partner" network which is a network of third party businesses with whom we work and encourage cross selling to clients. |
Acuity Law Group Limited (Registered number: 11172025) |
Group Strategic Report |
for the Year Ended 30 November 2023 |
We see real value in the "Acuity Law" brand, and it continues to build traction across the United Kingdom as our geographic footprint grows. |
THIS REPORT WAS APPROVED BY THE BOARD: |
Acuity Law Group Limited (Registered number: 11172025) |
Report of the Directors |
for the Year Ended 30 November 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 November 2023. |
DIVIDENDS |
The total distribution of dividends for the period ended 30 November 2023 was £500,000 (2022 - £781,677). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 December 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Acuity Law Group Limited (Registered number: 11172025) |
Report of the Directors |
for the Year Ended 30 November 2023 |
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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
THIS REPORT WAS APPROVED BY THE BOARD: |
Report of the Independent Auditors to the Members of |
Acuity Law Group Limited |
Opinion |
We have audited the financial statements of Acuity Law Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the Consolidated Profit & Loss Account, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 30 November 2023 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Report of the Independent Auditors to the Members of |
Acuity Law Group Limited |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
Report of the Independent Auditors to the Members of |
Acuity Law Group Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Acuity Law Group 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risks of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. |
The laws and regulations that we determined were most significant to the company were the Companies Act, UK Corporate Tax Laws, Employment Laws, the Data Protection Act, SRA Regulations and Money Laundering Laws. |
We obtained an understanding of how the company is complying with those laws and regulations by making enquiries of the management and those charged with governance, and corroborated these enquiries through our review of board minutes and review of legal and professional spend for the year. |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. We addressed the risk of management override of internal controls and assessed the effectiveness of the controls that management has in place to prevent and detect fraud, including testing of manual journals and evaluating the assumptions and judgements made by management in its significant accounting estimates. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Acuity Law Group 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 a Report of the Auditors 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 |
Acuity Law Group Limited (Registered number: 11172025) |
Consolidated Profit & Loss Account |
for the Year Ended 30 November 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 16,248,782 | 15,094,763 |
Cost of sales | (9,255,737 | ) | (7,701,965 | ) |
GROSS PROFIT | 6,993,045 | 7,392,798 |
Administrative expenses | (6,268,676 | ) | (4,287,274 | ) |
724,369 | 3,105,524 |
Other operating income | 40,000 | 40,000 |
OPERATING PROFIT | 3 | 764,369 | 3,145,524 |
Intercompany loan write off | 4 | 566,730 | - |
1,331,099 | 3,145,524 |
Interest receivable & similar income |
85,049 |
7,638 |
1,416,148 | 3,153,162 |
Interest payable and similar expenses |
5 |
(127,340 |
) |
(48,335 |
) |
PROFIT BEFORE TAXATION | 1,288,808 | 3,104,827 |
Tax on profit | 6 | (533,982 | ) | (670,016 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 754,826 | 2,434,811 |
Acuity Law Group Limited (Registered number: 11172025) |
Consolidated Other Comprehensive Income |
for the Year Ended 30 November 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 754,826 | 2,434,811 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
754,826 |
2,434,811 |
Total comprehensive income attributable to: |
Owners of the parent | 754,826 | 2,434,811 |
Acuity Law Group Limited (Registered number: 11172025) |
Consolidated Balance Sheet |
30 November 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 | 1,586,889 | 1,816,879 |
Tangible assets | 10 | 267,921 | 261,669 |
Investments | 11 |
Interest in associate | 183,020 | 250,000 |
2,037,830 | 2,328,548 |
CURRENT ASSETS |
Work in progress | 12 | 1,937,822 | 2,924,247 |
Debtors | 13 | 4,769,482 | 4,374,309 |
Cash at bank and in hand | 1,858,997 | 1,739,400 |
8,566,301 | 9,037,956 |
CREDITORS |
Amounts falling due within one year |
14 |
4,051,478 |
4,674,330 |
NET CURRENT ASSETS | 4,514,823 | 4,363,626 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,552,653 |
6,692,174 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(757,352 |
) |
(1,154,047 |
) |
PROVISIONS FOR LIABILITIES | 18 | (65,000 | ) | (62,652 | ) |
NET ASSETS | 5,730,301 | 5,475,475 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 2,833 | 2,833 |
Merger reserve | 20 | 4,867,549 | 4,867,549 |
Retained earnings | 20 | 859,919 | 605,093 |
SHAREHOLDERS' FUNDS | 5,730,301 | 5,475,475 |
Acuity Law Group Limited (Registered number: 11172025) |
Consolidated Balance Sheet - continued |
30 November 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 November 2024 and were signed on its behalf by: |
S R Berry - Director |
Acuity Law Group Limited (Registered number: 11172025) |
Company Balance Sheet |
30 November 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CREDITORS |
Amounts falling due within one year |
14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Merger reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year |
500,000 |
1,281,667 |
Acuity Law Group Limited (Registered number: 11172025) |
Company Balance Sheet - continued |
30 November 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Acuity Law Group Limited (Registered number: 11172025) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 November 2023 |
Called up |
share | Retained | Merger | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 December 2021 | 2,833 | (1,048,051 | ) | 4,867,549 | 3,822,331 |
Changes in equity |
Dividends | - | (781,667 | ) | - | (781,667 | ) |
Total comprehensive income | - | 2,434,811 | - | 2,434,811 |
Balance at 30 November 2022 | 2,833 | 605,093 | 4,867,549 | 5,475,475 |
Changes in equity |
Dividends | - | (500,000 | ) | - | (500,000 | ) |
Total comprehensive income | - | 754,826 | - | 754,826 |
Balance at 30 November 2023 | 2,833 | 859,919 | 4,867,549 | 5,730,301 |
Acuity Law Group Limited (Registered number: 11172025) |
Company Statement of Changes in Equity |
for the Year Ended 30 November 2023 |
Called up |
share | Retained | Merger | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 December 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 November 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 November 2023 |
Acuity Law Group Limited (Registered number: 11172025) |
Consolidated Cash Flow Statement |
for the Year Ended 30 November 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,567,478 | 2,351,827 |
Interest paid | (127,340 | ) | (48,335 | ) |
Tax paid | (363,354 | ) | (1,108,511 | ) |
Net cash from operating activities | 2,076,784 | 1,194,981 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (687,290 | ) | - |
Purchase of tangible fixed assets | (99,691 | ) | (99,596 | ) |
Purchase of fixed asset investments | - | (596,643 | ) |
Cash payments regarding loan notes | (522,235 | ) | (783,355 | ) |
Interest received | 85,049 | 7,638 |
Dividends received | 66,980 | - |
Net cash from investing activities | (1,157,187 | ) | (1,471,956 | ) |
Cash flows from financing activities |
Loan repayments in year | (300,000 | ) | (175,000 | ) |
Equity dividends paid | (500,000 | ) | (781,667 | ) |
Cash acquired on acquisition of business | - | 29,176 |
Net cash from financing activities | (800,000 | ) | (927,491 | ) |
Increase/(decrease) in cash and cash equivalents |
119,597 |
(1,204,466 |
) |
Cash and cash equivalents at beginning of year |
2 |
1,739,400 |
2,943,866 |
Cash and cash equivalents at end of year |
2 |
1,858,997 |
1,739,400 |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 November 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,288,808 | 3,104,827 |
Depreciation charges | 89,559 | 76,588 |
Loss on disposal of fixed assets | 3,880 | - |
Amortisation charges | 917,280 | 211,452 |
Impairment losses | - | 120,000 |
Finance costs | 127,340 | 48,335 |
Finance income | (85,049 | ) | (7,638 | ) |
2,341,818 | 3,553,564 |
Decrease/(increase) in work in progress | 986,425 | (1,075,023 | ) |
Increase in trade and other debtors | (395,173 | ) | (528,579 | ) |
(Decrease)/increase in trade and other creditors | (365,592 | ) | 401,865 |
Cash generated from operations | 2,567,478 | 2,351,827 |
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 30 November 2023 |
30/11/23 | 1/12/22 |
£ | £ |
Cash and cash equivalents | 1,858,997 | 1,739,400 |
Year ended 30 November 2022 |
30/11/22 | 1/12/21 |
£ | £ |
Cash and cash equivalents | 1,739,400 | 2,943,866 |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 November 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/12/22 | Cash flow | At 30/11/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,739,400 | 119,597 | 1,858,997 |
1,739,400 | 119,597 | 1,858,997 |
Debt |
Debts falling due within 1 year | (300,000 | ) | - | (300,000 | ) |
Debts falling due after 1 year | (1,025,000 | ) | 300,000 | (725,000 | ) |
(1,325,000 | ) | 300,000 | (1,025,000 | ) |
Total | 414,400 | 419,597 | 833,997 |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 November 2023 |
1. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The following subsidiary and associates have been excluded from consolidation on the basis that they are wholly immaterial; Acuity Sales & Valuations Limited, Adam Street Advisers Limited & The Endgame Group Limited. |
Turnover |
Turnover is measured at the fair value of the consideration receivable or received excluding discounts, rebates and value added tax in relation to the provision of legal and associated consultancy services. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2021 & 2022, is being amortised evenly over its estimated useful life of five years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Furniture & fittings | - |
Computer equipment | - |
Work in progress |
Income due in respect of contracts for uninvoiced ongoing services is recognised by reference to the stage of completion at the year end. The amount of uninvoiced services is shown in the balance sheet as work in progress. Where work is undertaken on a no win no fee basis (also known as conditional fee arrangements) and the outcome is uncertain at the balance sheet date no income is recognised. |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
1. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit & 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. |
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. |
Pension costs |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Investments in subsidiaries and associates |
Investments in subsidiary and associate undertakings are recognised at cost less any impairment. |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
2. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries |
7,284,98 3 |
6,279,80 9 |
Social security costs | 833,427 | 640,795 |
Other pension costs | 266,462 | 210,699 |
,384,872 | ,131,303 |
The average number of employees during the year was as follows: |
Employees | 128 | 96 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 1,023,729 | 730,000 |
Directors' pension contributions to money purchase schemes |
39,708 |
33,250 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 262,500 | 185,000 |
Pension contributions to money purchase schemes | 8,750 | 6,000 |
3. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 89,559 | 76,588 |
Loss on disposal of fixed assets | 3,880 | - |
Goodwill amortisation | 917,280 | 211,452 |
Audit fees | 25,000 | 25,100 |
Auditors' remuneration for non audit work | 19,744 | 18,230 |
Operating Leases - Land and buildings | 572,916 | 576,240 |
Operating Leases - Equipment Hire | 58,559 | 23,328 |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
4. | EXCEPTIONAL ITEMS |
2023 | 2022 |
£ | £ |
Intercompany loan write off | 566,730 | - |
During the period an intercompany loan balance of £566,730 was written off. |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 103,216 | 48,335 |
Other interest | 24,124 | - |
127,340 | 48,335 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 531,634 | 655,016 |
Deferred tax | 2,348 | 15,000 |
Tax on profit | 533,982 | 670,016 |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
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: |
2023 | 2022 |
£ | £ |
Profit before tax | 1,288,808 | 3,104,827 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.011 % (2022 - 19 %) |
296,568 |
589,917 |
Effects of: |
Expenses not deductible for tax purposes | 49,785 | 31,223 |
Capital allowances in excess of depreciation | (2,772 | ) | (10,452 | ) |
Adjustments to tax charge in respect of previous periods |
3,925 |
777 |
Amortisation of Goodwill | 40,653 | 49,400 |
Deferred Tax movement | 2,348 | 15,000 |
Consolidation adjustments | 185,835 | (5,849 | ) |
Group relief not utilised in parent tax provision | 90,948 | - |
Loan write off not taxable | (130,410 | ) | - |
Adjustments to tax due to change in tax rate | (2,898 | ) | - |
Total tax charge | 533,982 | 670,016 |
7. | INDIVIDUAL PROFIT & LOSS ACCOUNT |
As permitted by Section 408 of the Companies Act 2006, the Profit & Loss Account of the parent company is not presented as part of these financial statements. |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of £1 each |
Paid | 500,000 | 781,667 |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
9. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 December 2022 | 2,958,545 |
Additions | 687,290 |
At 30 November 2023 | 3,645,835 |
AMORTISATION |
At 1 December 2022 | 1,141,666 |
Amortisation for year | 917,280 |
At 30 November 2023 | 2,058,946 |
NET BOOK VALUE |
At 30 November 2023 | 1,586,889 |
At 30 November 2022 | 1,816,879 |
10. | TANGIBLE FIXED ASSETS |
Group |
Furniture & | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 December 2022 | 384,776 | 373,520 | 758,296 |
Additions | 5,527 | 94,164 | 99,691 |
Disposals | (13,220 | ) | (28,853 | ) | (42,073 | ) |
At 30 November 2023 | 377,083 | 438,831 | 815,914 |
DEPRECIATION |
At 1 December 2022 | 205,634 | 290,993 | 496,627 |
Charge for year | 27,473 | 62,086 | 89,559 |
Eliminated on disposal | (12,076 | ) | (26,117 | ) | (38,193 | ) |
At 30 November 2023 | 221,031 | 326,962 | 547,993 |
NET BOOK VALUE |
At 30 November 2023 | 156,052 | 111,869 | 267,921 |
At 30 November 2022 | 179,142 | 82,527 | 261,669 |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
11. | FIXED ASSET INVESTMENTS |
Group |
Interest in |
associate |
£ |
COST |
At 1 December 2022 | 250,000 |
Dividends received | (66,980 | ) |
At 30 November 2023 | 183,020 |
NET BOOK VALUE |
At 30 November 2023 | 183,020 |
At 30 November 2022 | 250,000 |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 December 2022 |
and 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 3 Assembly Square, Britannia Quay, Cardiff Bay, Cardiff, CF10 4PL |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
2023 |
£ | £ |
Aggregate capital and reserves |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Profit for the period/year |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
£ |
Aggregate capital and reserves |
Profit for the period/year |
Associated companies |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Profit/(loss) for the year | ( |
) |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
11. | FIXED ASSET INVESTMENTS - continued |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Loss for the year | ( |
) | ( |
) |
12. | WORK IN PROGRESS |
Group |
2023 | 2022 |
£ | £ |
Work-in-progress | 1,937,822 | 2,924,247 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 3,842,891 | 3,214,638 |
Other debtors | 100,123 | 287,531 |
Prepayments and accrued income | 826,468 | 872,140 |
4,769,482 | 4,374,309 |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | 300,000 |
300,000 |
Trade creditors | 308,593 | 747,666 |
Amounts owed to group undertakings | - | - |
Corporation tax | 533,384 | 365,104 |
Social security and other taxes | 210,853 | 207,078 |
VAT | 901,192 | 676,156 | - | - |
Other creditors | 477,510 | 633,995 |
Accruals and deferred income | 1,319,946 | 1,744,331 |
4,051,478 | 4,674,330 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) | 725,000 | 1,025,000 |
Other creditors | 32,352 | 129,047 |
757,352 | 1,154,047 |
16. | LOANS |
The CBIL bank loan is repayable from May 22 for a period of 60 months with the interest rate applicable being 2.51% above the Bank of England base rate. |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
Group |
Non-cancellable |
operating leases |
2023 | 2022 |
£ | £ |
Within one year | 544,884 | 496,560 |
Between one and five years | 615,216 | 912,250 |
In more than five years | - | 43,920 |
1,160,100 | 1,452,730 |
18. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 65,000 | 62,652 |
Group |
Deferred tax |
£ |
Balance at 1 December 2022 | 62,652 |
Provided during year | 2,348 |
Transfer value on acquisition |
Balance at 30 November 2023 | 65,000 |
The deferred tax liability relates to accelerated capital allowances. |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 2,833 | 2,833 |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
20. | RESERVES |
Group |
Retained | Merger |
earnings | reserve | Totals |
£ | £ | £ |
At 1 December 2022 | 605,093 | 4,867,549 | 5,472,642 |
Profit for the year | 754,826 | 754,826 |
Dividends | (500,000 | ) | (500,000 | ) |
At 30 November 2023 | 859,919 | 4,867,549 | 5,727,468 |
Company |
Retained | Merger |
earnings | reserve | Totals |
£ | £ | £ |
At 1 December 2022 | 5,867,549 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 November 2023 | 5,867,549 |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 30 November 2023 and 30 November 2022: |
2023 | 2022 |
£ | £ |
S R Berry |
Balance outstanding at start of year | 686 | 143 |
Amounts advanced | - | 543 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 686 | 686 |
H Hitchcock |
Balance outstanding at start of year | 14,286 | 14,286 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 14,286 | 14,286 |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
21. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
E L Finley |
Balance outstanding at start of year | 35,000 | - |
Amounts advanced | - | 35,000 |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 35,000 | 35,000 |
22. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Acuity Law Group Limited (Registered number: 11172025) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
22. | RELATED PARTY DISCLOSURES - continued |
a) Related parties : - |
Aeron Properties Limited |
ai) Loans to related parties |
Net value |
Balance |
of supply |
owed |
in year |
at year end |
£ | £ |
2023 |
Related parties | 34,167 | 50,000 |
2022 |
Related parties | - | 123,970 |
b) Associates :- |
Adam Street Advisers Limited |
bi) Rental of property to related parties |
Net value |
Balance |
of supply |
owed |
in year |
at year end |
£ | £ |
2023 |
Associates | 40,000 | - |
2022 |
Associates | 40,000 | - |