Company registration number 11450582 (England and Wales)
PKF SMITH COOPER LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
PKF SMITH COOPER LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
PKF SMITH COOPER LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
6
405,154
506,443
Current assets
Debtors
7
1,198,914
963,952
Creditors: amounts falling due within one year
8
(1,498,879)
(1,469,298)
Net current liabilities
(299,965)
(505,346)
Net assets
105,189
1,097
Capital and reserves
Called up share capital
9
1
1
Profit and loss reserves
105,188
1,096
Total equity
105,189
1,097
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 22 November 2024 and are signed on its behalf by:
Mr J Bagley
Director
Company registration number 11450582 (England and Wales)
PKF SMITH COOPER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information
PKF Smith Cooper Limited is a private company limited by shares incorporated in England and Wales. The registered office is Prospect House, 1 Prospect Place, Pride Park, Derby, United Kingdom, DE24 8HG.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 Directors remain confident that the company is well placed to mitigate any additional risks arising. The Directors believe strong cash reserves held and additional funding available to the company are sufficient to provide additional levels of risk mitigation such that the Directors are confident that the current economy will not adversely affect the on-going viability of the company.
1.2
Going concern
The directors have prepared budgets and cashflow forecasts to March 2025 on an individual and group level and up to date management accounts and consider that the group will continue to operate within its overdraft facility for 12 months from the date of signing the Balance Sheet. The overdraft facility is due for renewal in July 2025 and there is no reason to believe that it will not be extended.true
At 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, excluding discounts, rebates, value added tax and other sales taxes.
Turnover is recognised when the right to income for services provided arises.
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 - 15 years.
1.5
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.
PKF SMITH COOPER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -
1.6
Financial instruments
Debtors and creditors receivable/payable within one year
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.
Loans and borrowings
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares 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.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
PKF SMITH COOPER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Gross amounts owed by contract customers
Revenue in relation to unbilled time is recognised in the financial statements based upon the judgement of management in respect of expected ultimate recoverability. In undertaking this assessment, historical recovery rates are considered and applied.
3
Change in accounting estimate
Management have re-assessed the amortisation period applied to goodwill and have determined that the remaining goodwill net book value as at 1 April 2023 will be amortised over 5 years. This will result in a reduced annual amortisation charge of £405,154 for the year ended 31 March 2024.
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
1
5
5
Directors' remuneration
2024
2023
£
£
Remuneration paid to directors
7,956
64,363
PKF SMITH COOPER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
6
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
5,064,387
Amortisation and impairment
At 1 April 2023
4,557,944
Amortisation charged for the year
101,289
At 31 March 2024
4,659,233
Carrying amount
At 31 March 2024
405,154
At 31 March 2023
506,443
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
849,617
712,108
Gross amounts owed by contract customers
280,327
239,620
Other debtors
68,970
1
Prepayments and accrued income
12,223
1,198,914
963,952
8
Creditors: amounts falling due within one year
2024
2023
£
£
Amounts owed to group undertakings
234,472
40,000
Corporation tax
69,689
131,166
Other taxation and social security
249,844
160,570
Other creditors
944,874
1,137,562
1,498,879
1,469,298
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of 1p each
100
100
1
1
PKF SMITH COOPER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Daniel Sowden
Statutory Auditor:
BHP LLP
Date of audit report:
26 November 2024
11
Events after the reporting date
Subsequent to the balance sheet date, on 5th September 2024, PKF Smith Cooper Limited sold the payroll service line.
12
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
12,223
1,194,718
1,142,374
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
1,194,718
1,298,131
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities with control, joint control or significant influence over the company
136,173
12,223
13
Parent company
PKF SMITH COOPER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Parent company
(Continued)
- 7 -
PKF Smith Cooper Limited is a subsidiary of PKF Smith Cooper Holdings Limited. The ultimate parent company of PKF Smith Cooper Limited is SHH101 LLP, a limited liability partnership incorporated in England and Wales. SHH101 LLP prepares group consolidated accounts, which includes the entity's financial statements. A copy of the consolidated statements are available from the registered office of Prospect House, 1 Prospect Place, Derby, DE24 8HG.
PKF SMITH COOPER LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 MARCH 2024