MSB SOLICITORS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
Company Registration No. 11917781 (England and Wales)
MSB SOLICITORS LIMITED
COMPANY INFORMATION
Directors
Mrs J Dalton
Miss E L Carey
Mr M A Forman
Mr N A Kelly
Mrs E Palmer
Mr B Armstrong
Company number
11917781
Registered office
No 4 St Pauls Square
Old Hall Street
Liverpool
L3 9SJ
Auditor
DSG Audit
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
MSB SOLICITORS LIMITED
CONTENTS
Page
Strategic report
1 - 6
Directors' report
7
Directors' responsibilities statement
8
Independent auditor's report
9 - 11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 - 30
MSB SOLICITORS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 1 -
The directors present the strategic report for the year ended 29 February 2024.
Overview of MSB
This strategic plan outlines the key objectives of MSB, the services we deliver and the resources that enable those services. Our brand, core values and an awareness of risk.
Income
Our revenue across the last 5 years has risen steadily from £5 million to £10.2 million in 2023/2024. For the year 2024/2025 we target to bring in £12 million.
Performance & Profitability
The firm’s collective net profitability declined in 2023/2024 due to investment in our support infrastructure by building our Accounts Team; IT Team; Education and Training Team and also due to the recruitment of some Senior Staff whose fee generation would not impact for 12-18 months. 2025/2026 will see a steady incline in the profitability.
Partnership at MSB remains at 19 Partners. We have had one Partner leave, Paula Mansfield. A new Partner will join our family team in December 2024, Gemma Stringer.
We have a strong emphasis on monitoring performance and profitability and this has been enhanced by the use of different reports via our Proclaim system.
We have changed accountants from BWM to DSG to support us in the management of performance and profitability. We commence the financial year 2025/2026 in a position to really concentrate on reviewing performance and profitability with the correct support structures in place i.e., our own reporting systems and the backup and support of our accountants.
We now have in place career progression paths - we recruit paralegals in May; we recruit trainees in January/ February; we recruit for associates and senior associates in May every year; and we recruit for partners every other year in May. This gives all of our employees a clear understanding of what is required of people at different levels and that if they want to progress, we will work with them to ensure that they have the relevant skills.
MSB SOLICITORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 2 -
Organisational Objectives
Examples of specific organisational objectives that are supported through continued investment in people and internal support systems include:
2024/25
To raise the profile and reputation of all of our teams. In particular to firmly establish MSB as a National firm. We have a strong connection with our Marketing Company who have supported us through the last 5 years of growth. They know our business; they know our industry and the have formulated strategic plans for each separate department.
We wish to expand our Cheshire and Manchester offices.
We hope to obtain a Legal Aid contract for Crime in Birmingham, Manchester and Chester.
Whilst we are looking at external marketing, we also wish to look internally to do a full analysis of our client base and how those clients can become firmly clients of the firm and generate work in different departments.
We wish to establish a digital marketing strategy.
Our intention is to close our Wavertree office. In 2025 we will look at various options with regards to office space for the firm as a whole.
We have maintained our Legal 500, Chambers and Partners and Times recognition. There are 22 Solicitors recognised in Legal 500 and Chambers and Partners and we wish to build on that in other Departments across the firm.
We have employed a Head of People and who has introduced a new HR system across the firm.
We have appointed a Head of Business Development in the Family Team. We would wish to expand that across the firm and look at either within teams or an overall Business Development Manager. Business Development needs to run through the organisation and everyone needs to take responsibility.
We have introduced an extensive training programme. We need to evaluate who is using this training and make sure that training forms part of our culture and that everyone receives the training they need.
Our teams are our priority and we will be introducing an extensive physical and mental well-being programme that supports each and every member of our team to maximise their physical and mental well-being. Medicash was introduced in January for all staff.
With the expansion of our IT team, we have plans for an overhaul to our IT systems which will support the growth of the firm.
Ten trainees qualified. Seven have remained with the firm as Newly Qualified.
We wish to obtain Investors in People Accreditation.
In the past we have put ourselves forward for various awards. In 2024/2025 we wish to concentrate on recognition by way of Accreditation.
MSB SOLICITORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 3 -
Consideration of risks against set objectives
It is important that as a firm we move forward as one and that all of our teams have a role to play in the profitability of MSB as a firm.
Expansion carries financial commitment over a longer term than serviced offices. Also, we are new to both markets and therefore there may be issues with recruitment and retention of staff. It is important that we have a clear articulation of our brand so that these two new offices remain part of brand MSB.
There are massive opportunities in Cheshire and Manchester for us to expand our services. We need to look at how we can optimise our search engine so that people searching within these areas come through and that all of our services are promoted from these offices.
We will need to obtain premises, recruit staff and market our services to ensure we have referrals of work.
Cross referral of work always carries the risk of ensuring that the standard of service is the same across the firm so that clients are retained.
The risk of failing to capture internal referrals is that clients become clients of particular Fee Earners as opposed to clients of the firm and this can have a hard-hitting impact on the firm if a particular lawyer moves taking the client with them. Further if the client goes to another firm for their services, they may give all of their legal work to that firm.
We need to do comparative pricing for the cost of a desk in Wavertree as opposed to the cost of a desk in other office space as the Wavertree office space is relatively cheap. We will further need to pay dilapidations. We further need to consider the risk of moving staff who have worked in a suburb office for many years. Further we will need to evaluate the risk in respect of our client base and ensure that the clients will still come and access our services at the City Centre office.
We need to maintain high levels of service and our reputation so that we maintain our existing rankings but also look to see how we can ensure other departments across the firm obtain rankings within these directories.
Recruitment and retention of staff are vital to our profitability and growth and an effective approach to HR is vital for this.
Business Development needs to be properly coordinated so there is a strategic approach.
Law is ever changing, and it is important if we are to deliver excellence in legal services, we are abreast of changes in the law. It is also important that our lawyers learn soft skills to support them in their development. Training needs to be seen as part of growth and empowerment, not something that has to be done mandatory.
We can only maximise output from our teams if they are physically and mentally well.
If we do not keep up to date with technology, we will not be able to keep up to date with efficiencies and profitability.
We have invested time and money in training our Trainees to a high standard. We need to ensure that they see their future is with MSB.
Cyber security is essential for the effective functioning of our organisation.
Our brand prides itself on its investment in its people and therefore it is important that we meet the requirements of investors in people and that we obtain this accreditation.
Awards can be a useful tool to bring teams together to celebrate success, but accreditation shows much more fundamental achievements throughout an organisation and require us to continue meeting high standards.
MSB SOLICITORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 4 -
Resources to meet objectives
Our Brand
We are very proud of our brand and believe that there is an understanding throughout the organisation of what our brand is and what it stands for.
Our People
Our people are our greatest asset and we want them to feel valued, safe and in an environment that they can be themselves and reach their true potential.
Our Reputation and Expertise
Our reputation in Liverpool is exceptional and we are known as being an all-service law firm that provides good legal advice.
We need to ensure that that reputation is built upon and expands across the Northwest and naturally.
Our Financial Strength and Resilience
Our financial strength is part of our overall resilience and gives the capacity to deliver our objectives.
Our strong financial position can be seen in our management accounts and formal financial reporting mechanisms.
Our Approach to Growth
To meet our objectives, the Partners recognise that the practice must grow in a structured business-like manner and will identify new areas of work and new opportunities.
To ensure that enough time and consideration is given to both consolidation for now and then growth, the Managing Partner, Emma Carey will continue not to conduct any fee earning work and concentrate on the strategic management of the business to deliver our objectives and ensure maximum profitability.
To include:
All partners have the responsibility to maximize their fee earning, develop their areas of law, and develop their own reputations and that of the firm.
MSB SOLICITORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 5 -
Services offered by MSB
Our services respond to the needs of our clients, delivered in accordance with our values.
How services will be delivered and marketed
Delivery
In response to the growth in numbers and increasing complexity of the organisation, and as part of our approach to consolidation, we have introduced an appropriate formality into the management of the organisation. There is clarity on the key roles and responsibilities for Partners and this is replicated in each position/role at all levels. This clarity of role, purpose and structure is supported through the investment in and development of in-house support that includes human resources, compliance, training & education and IT.
Marketing
The firm’s profile has been enhanced through sustained profile-raising campaigns, sponsorships, advertising and numerous awards.
We will have a large emphasis on digital marketing in 25/26.
Risk: an evaluation of objectives
Risk analysis
In response to the changes in the Solicitors Regulation Authority’s Code of Conduct, our approach has changed from a code-based system to Outcomes Focused Regulation. Essentially the firm is responsible for ensuring that it complies with its regulatory objectives and in doing so has appointed Emma Carey to be its Compliance Officer for Legal Practice and Joanne Dalton to be the Compliance Officer for Finance and Administration. Both parties have considerable experience within the roles they face.
Internal and external risks
As part of the roles referenced above, the approach taken will ensure that both internal and external risks are considered: internal being risk to the practice for e.g. reputational risk, client risk, and staff risk; external risk will include matters that could adversely impact upon the wellbeing of the business outside the direct control of the firm.
Looking to the future
We are a legal firm with a vision and values. All partners are encouraged and expected to think about the next step, something that will take their practice area or team forward to the next level; to run an ethically sound legal firm, that expects its legal services offer to evolve, in a context of each colleague contributing to taking this business forward and in some cases retaining the current position.
We are looking for profitable growth.
Recruitment and retention are vital to growth and sustainability.
Procedures for regular reporting on performance
They are constantly under review and evolving.
Training needs
Training is top of our agenda and extensive training programmes are ran through the firm for people at every level
MSB SOLICITORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 6 -
Miss E L Carey
Director
28 November 2024
MSB SOLICITORS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 7 -
The directors present their annual report and financial statements for the year ended 29 February 2024.
Principal activities
The principal activity of the company continued to be that of a firm of solicitors.
Results and dividends
The results for the year are set out on page 12.
Ordinary dividends were paid amounting to £707,392. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mrs J Dalton
Miss E L Carey
Mr M A Forman
Mr N A Kelly
Mrs E Palmer
Mr B Armstrong
Auditor
DSG resigned as auditor on 11 September 2024. DSG Audit were appointed on 11 September 2024 as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Miss E L Carey
Director
28 November 2024
MSB SOLICITORS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 8 -
The directors are responsible for preparing the annual report 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 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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.
MSB SOLICITORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MSB SOLICITORS LIMITED
- 9 -
Opinion
We have audited the financial statements of MSB Solicitors Limited (the 'company') for the year ended 29 February 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 29 February 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.
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 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.
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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
MSB SOLICITORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MSB SOLICITORS LIMITED (CONTINUED)
- 10 -
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 directors' report.
We have nothing to report in respect of the following matters in relation to which 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 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 directors' responsibilities statement, 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 is 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.
Auditor's 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
Those laws and regulations considered to have a direct effect on the financial statements including UK financial reporting standards, the Solicitors Regulation Authority rules, company law, tax and pensions legislation, and distributable profits legislation.
Those laws and regulations for which non-compliance may have a direct effect on the operating aspects of the business and therefore may have a material effect on the financial statements include the Solicitors Regulation Authority rules, health and safety regulations, anti-bribery and anti-corruption laws and compliance with tax legislation.
MSB SOLICITORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MSB SOLICITORS LIMITED (CONTINUED)
- 11 -
Audit procedures undertaken in response to the potential risk relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries which may be indicative of fraud; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 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.
Andrew Moss BA FCA (Senior Statutory Auditor)
For and on behalf of DSG Audit, Statutory Auditor
Chartered Accountants
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
28 November 2024
MSB SOLICITORS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 12 -
2024
2023
Notes
£
£
Turnover
3
10,224,415
9,446,716
Cost of sales
(5,418,511)
(4,343,301)
Gross profit
4,805,904
5,103,415
Administrative expenses
(3,844,515)
(3,935,232)
Other operating income
878
12
Operating profit
4
962,267
1,168,195
Interest receivable and similar income
8
764,674
202,300
Interest payable and similar expenses
9
(21,450)
(30,790)
Amounts written off financial liabilities
10
-
156,460
Profit before taxation
1,705,491
1,496,165
Tax on profit
11
(511,532)
(338,666)
Profit for the financial year
1,193,959
1,157,499
The profit and loss account has been prepared on the basis that all operations are continuing operations.
MSB SOLICITORS LIMITED
BALANCE SHEET
AS AT
29 FEBRUARY 2024
29 February 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
13
1,932,000
2,254,000
Other intangible assets
13
6
7
Total intangible assets
1,932,006
2,254,007
Tangible assets
14
270,949
296,540
2,202,955
2,550,547
Current assets
Debtors
18
3,593,513
3,005,259
Cash at bank and in hand
261,880
474,771
3,855,393
3,480,030
Creditors: amounts falling due within one year
19
(2,059,827)
(2,111,181)
Net current assets
1,795,566
1,368,849
Total assets less current liabilities
3,998,521
3,919,396
Creditors: amounts falling due after more than one year
20
(507,055)
(984,170)
Provisions for liabilities
Provisions
22
270,000
212,000
Deferred tax liability
23
53,742
57,069
(323,742)
(269,069)
Net assets
3,167,724
2,666,157
Capital and reserves
Called up share capital
25
184
179
Share premium account
649,886
634,891
Capital redemption reserve
30
30
Profit and loss reserves
2,517,624
2,031,057
Total equity
3,167,724
2,666,157
The financial statements were approved by the board of directors and authorised for issue on 28 November 2024 and are signed on its behalf by:
Miss E L Carey
Director
Company registration number 11917781 (England and Wales)
MSB SOLICITORS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 14 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 March 2022
139
359,936
25
1,582,629
1,942,729
Year ended 28 February 2023:
Profit and total comprehensive income
-
-
-
1,157,499
1,157,499
Issue of share capital
25
45
274,955
-
-
275,000
Dividends
12
-
-
-
(709,071)
(709,071)
Redemption of shares
25
5
5
Reduction of shares
25
(5)
-
(5)
Balance at 28 February 2023
179
634,891
30
2,031,057
2,666,157
Year ended 29 February 2024:
Profit and total comprehensive income
-
-
-
1,193,959
1,193,959
Issue of share capital
25
5
14,995
-
-
15,000
Dividends
12
-
-
-
(707,392)
(707,392)
Balance at 29 February 2024
184
649,886
30
2,517,624
3,167,724
MSB SOLICITORS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
279,453
524,038
Interest paid
(21,450)
(30,790)
Income taxes paid
(549,459)
(311,872)
Net cash (outflow)/inflow from operating activities
(291,456)
181,376
Investing activities
Purchase of tangible fixed assets
(45,604)
(32,478)
Interest received
764,674
202,300
Net cash generated from investing activities
719,070
169,822
Financing activities
Proceeds from issue of shares
15,000
275,000
Repayment of borrowings
(138,530)
48,108
Dividends paid
(707,392)
(709,071)
Net cash used in financing activities
(830,922)
(385,963)
Net decrease in cash and cash equivalents
(403,308)
(34,765)
Cash and cash equivalents at beginning of year
206,260
241,025
Cash and cash equivalents at end of year
(197,048)
206,260
Relating to:
Cash at bank and in hand
261,880
474,771
Bank overdrafts included in creditors payable within one year
(458,928)
(268,511)
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 16 -
1
Accounting policies
Company information
MSB Solicitors Limited is a private company limited by shares incorporated in England and Wales. The registered office is No 4 St Pauls Square, Old Hall Street, Liverpool, L3 9SJ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Amounts recoverable but not yet invoiced are included within debtors as accrued income.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 17 -
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Other
10% straight line
1.6
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
5% straight line
Fixtures and fittings
15% reducing balance
Computers
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.8
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 18 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditorsand bank loans that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
1
Accounting policies
(Continued)
- 20 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 21 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Amounts recoverable on contracts
Estimating the stage of contract completion, including estimating the costs still to be incurred, assessing the likely engagement outcome and assessing the recoverability of unbilled amounts for client work requires significant judgement.
3
Turnover and other revenue
The whole of turnover is attributable to one principal activity of the company.
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
10,224,415
9,446,716
2024
2023
£
£
Other revenue
Interest income
764,674
202,300
Commissions received
878
12
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
71,195
79,643
Amortisation of intangible assets
322,001
322,001
Operating lease charges
391,673
296,353
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 22 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
13,370
3,850
For other services
Taxation compliance services
3,340
2,980
All other non-audit services
25,194
18,483
28,534
21,463
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Partners
19
17
Staff
171
159
Total
190
176
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
5,138,625
4,261,107
Social security costs
470,233
403,643
Pension costs
449,643
366,425
6,058,501
5,031,175
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
125,954
148,640
Company pension contributions to defined contribution schemes
5,641
10,080
131,595
158,720
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 23 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
764,674
202,300
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
764,674
202,300
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
21,450
30,790
10
Amounts written off investments
2024
2023
£
£
Amounts written off financial liabilities
-
156,460
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
514,859
332,111
Adjustments in respect of prior periods
(1,890)
Total current tax
514,859
330,221
Deferred tax
Origination and reversal of timing differences
(3,327)
8,445
Total tax charge
511,532
338,666
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
11
Taxation
(Continued)
- 24 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,705,491
1,496,165
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
426,373
284,271
Tax effect of expenses that are not deductible in determining taxable profit
84,405
42,104
Adjustments in respect of prior years
(1,890)
Permanent capital allowances in excess of depreciation
(13,717)
(9,396)
Depreciation on assets not qualifying for tax allowances
17,798
15,132
Deferred tax movement
(3,327)
8,445
Taxation charge for the year
511,532
338,666
12
Dividends
2024
2023
£
£
Interim paid
707,392
709,071
13
Intangible fixed assets
Goodwill
Other
Total
£
£
£
Cost
At 1 March 2023 and 29 February 2024
3,220,000
10
3,220,010
Amortisation and impairment
At 1 March 2023
966,000
3
966,003
Amortisation charged for the year
322,000
1
322,001
At 29 February 2024
1,288,000
4
1,288,004
Carrying amount
At 29 February 2024
1,932,000
6
1,932,006
At 28 February 2023
2,254,000
7
2,254,007
More information on impairment movements in the year is given in note .
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 25 -
14
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 March 2023
159,431
99,425
258,270
517,126
Additions
23,725
21,879
45,604
Disposals
(23,715)
(23,715)
At 29 February 2024
183,156
99,425
256,434
539,015
Depreciation and impairment
At 1 March 2023
27,012
36,793
156,781
220,586
Depreciation charged in the year
8,861
9,395
52,939
71,195
Eliminated in respect of disposals
(23,715)
(23,715)
At 29 February 2024
35,873
46,188
186,005
268,066
Carrying amount
At 29 February 2024
147,283
53,237
70,429
270,949
At 28 February 2023
132,419
62,632
101,489
296,540
15
Fixed asset investments
2024
2023
£
£
Investments in subsidiaries
16
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 March 2023 & 29 February 2024
769,125
Impairment
At 1 March 2023 & 29 February 2024
769,125
Carrying amount
At 29 February 2024
-
At 28 February 2023
-
16
Subsidiaries
Details of the company's subsidiaries at 29 February 2024 are as follows:
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
16
Subsidiaries
(Continued)
- 26 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Simply Social Housing Limited
UK
Solicitors
£1 Ordinary
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Simply Social Housing Limited
6
17
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,279,027
973,997
Carrying amount of financial liabilities
Measured at amortised cost
1,916,607
2,430,659
18
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,260,627
973,997
Amounts recoverable on contracts
2,038,778
1,710,391
Other debtors
18,400
Prepayments and accrued income
275,708
320,871
3,593,513
3,005,259
19
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
21
458,928
268,511
Other borrowings
21
329,060
330,090
Trade creditors
56,939
47,650
Corporation tax
206,073
240,673
Other taxation and social security
444,202
424,019
Other creditors
336,380
521,379
Accruals and deferred income
228,245
278,859
2,059,827
2,111,181
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
19
Creditors: amounts falling due within one year
(Continued)
- 27 -
Barclays Bank Plc has a fixed and floating charge over all assets and undertakings of MSB Solicitors Limited covering a bank overdraft totalling £458,928 (2023: £268,511).
Amounts totalling £137,500 (2023: £137,500) within other borrowings in respect of Coronavirus Business Interruption Loan Scheme loans are secured in full by the UK Government.
20
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Other borrowings
21
68,750
206,250
Other creditors
438,305
777,920
507,055
984,170
Amounts totalling £68,750 (2023: £206,250) within other borrowings in respect of Coronavirus Business Interruption Loan Scheme loans are secured in full by the UK Government.
21
Loans and overdrafts
2024
2023
£
£
Bank overdrafts
458,928
268,511
Other loans
397,810
536,340
856,738
804,851
Payable within one year
787,988
598,601
Payable after one year
68,750
206,250
Barclays Bank Plc has a fixed and floating charge over all assets and undertakings of MSB Solicitors Limited covering a bank overdraft totalling £458,928 (2023: £268,511).
Amounts totalling £206,250 (2023: £343,750) within other borrowings in respect of Coronavirus Business Interruption Loan Scheme loans are secured in full by the UK Government.
22
Provisions for liabilities
2024
2023
£
£
Dilapidations provision
270,000
212,000
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
22
Provisions for liabilities
(Continued)
- 28 -
Movements on provisions:
Dilapidations provision
£
At 1 March 2023
212,000
Additional provisions in the year
100,000
Utilisation of provision
(42,000)
At 29 February 2024
270,000
23
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
53,742
57,069
2024
Movements in the year:
£
Liability at 1 March 2023
57,069
Credit to profit or loss
(3,327)
Liability at 29 February 2024
53,742
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
449,643
366,425
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 29 -
25
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Shares of £1 each
120
120
120
120
B Shares of £1 each
64
59
64
59
184
179
184
179
26
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
320,546
220,876
Between two and five years
540,493
590,050
In over five years
273,750
320,625
1,134,789
1,131,551
27
Directors' transactions
Dividends totalling £329,248 (2023 - £345,893) were paid in the year in respect of shares held by the company's directors.
Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Mr N Kelly - Directors' Loan
-
345,227
(101,008)
244,219
Mr M Forman - Directors' Loan
-
347,546
(102,978)
244,568
Miss E Carey - Directors' Loan
-
313,891
(100,000)
213,891
1,006,664
(303,986)
702,678
MSB SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 FEBRUARY 2024
- 30 -
28
Cash generated from operations
2024
2023
£
£
Profit after taxation
1,193,959
1,157,499
Adjustments for:
Taxation charged
511,532
338,666
Finance costs
21,450
30,790
Investment income
(764,674)
(202,300)
Amortisation and impairment of intangible assets
322,001
322,001
Depreciation and impairment of tangible fixed assets
71,195
79,643
Other gains and losses
-
(156,460)
Increase in provisions
58,000
22,000
Movements in working capital:
Increase in debtors
(588,254)
(134,230)
Decrease in creditors
(545,756)
(933,571)
Cash generated from operations
279,453
524,038
29
Analysis of changes in net debt
1 March 2023
Cash flows
29 February 2024
£
£
£
Cash at bank and in hand
474,771
(212,891)
261,880
Bank overdrafts
(268,511)
(190,417)
(458,928)
206,260
(403,308)
(197,048)
Borrowings excluding overdrafts
(536,340)
138,530
(397,810)
(330,080)
(264,778)
(594,858)
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