Company registration number 09075635 (England and Wales)
FLYING COLOURS ADVICE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PAGES FOR FILING WITH REGISTRAR
FLYING COLOURS ADVICE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
FLYING COLOURS ADVICE LIMITED
BALANCE SHEET
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
503,851
Tangible assets
4
28,743
17,789
28,743
521,640
Current assets
Debtors
5
7,643,076
6,029,898
Cash at bank and in hand
210,002
481,279
7,853,078
6,511,177
Creditors: amounts falling due within one year
6
(5,287,585)
(4,192,508)
Net current assets
2,565,493
2,318,669
Total assets less current liabilities
2,594,236
2,840,309
Provisions for liabilities
7
(85,000)
Net assets
2,594,236
2,755,309
Capital and reserves
Called up share capital
8
1,458,478
1,458,478
Share premium account
9
10,135,523
10,135,523
Profit and loss reserves
10
(8,999,765)
(8,838,692)
Total equity
2,594,236
2,755,309
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 20 December 2024 and are signed on its behalf by:
Mr G M Appleton
Director
Company registration number 09075635 (England and Wales)
FLYING COLOURS ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
1
Accounting policies
Company information
Flying Colours Advice Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1301 Ocean House The Ring, Bracknell, Berkshire, England, RG12 1AX.
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.
1.2
Going concern
The directors are satisfied that the company will have adequate resources to trade for a period of 12 months from the date the accounts were signed. The company is reliant on support from the parent company Flying Colours Holdings Limited. The parent company has confirmed that it will provide financial support if this is required for at least the following 12 months, and the majority shareholder of the parent company has provided a guarantee to this effect.true
1.3
Turnover
Initial advisor income is recognised when instructions are sent to providers, following conclusion of contractual terms with the client. Ongoing wealth management services are chargeable to clients in accordance with the period over which those services are supplied and fees are recognised on an accruals basis in accordance with contracted rates.
1.4
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:
Development costs
5 years straight line
Intangible fixed assets represents capitalised costs relating to the company's online financial advisory platform. After initial recognition, intangible assets are measured at cost less accumulated amortisation and any accumulated impairment losses.
The platform has been in use for more than 3 years and amortisation has been charged over that time. Development work has continued to be capitalised and amortised as additional features have been added and made available for use. Development costs are being amortised evenly over their estimated useful life of 5 years.
FLYING COLOURS ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 3 -
1.5
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
Term of the lease, or useful economic life if shorter
Fixtures and fittings
4 years straight line
Computer software and equipment
5 years 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.
1.6
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.
1.7
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.
1.8
Taxation
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.
FLYING COLOURS ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 4 -
1.9
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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
2
Employees
All staff employed within the group are employed by fellow subsidiary Flying Colours Services Limited and recharged to companies in the group on an agreed basis. The company has 5 directors.
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
FLYING COLOURS ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -
3
Intangible fixed assets
Development costs
£
Cost
At 1 July 2023
1,989,874
Additions
323,790
Disposals
(2,313,664)
At 30 June 2024
Amortisation and impairment
At 1 July 2023
1,486,023
Amortisation charged for the year
210,897
Disposals
(1,696,920)
At 30 June 2024
Carrying amount
At 30 June 2024
At 30 June 2023
503,851
Development costs comprise the cost, principally dedicated staff and contractors, of developing the Group's bespoke applications. Additions comprises new applications and enhancements and additional features which are quickly brought into use.
The directors have carried out a review for impairment of the other intangible assets and consider that no impairment is necessary. Many of the tools developed are directly linked to the business generating its income; others to increasing speed and efficiency and reducing costs. The tools are expected to continue to be used in the foreseeable future and are still under regular development, being adapted to the ongoing needs of the business as it grows and develops. In order to further develop the software, the directors have sold the entire intangible asset of the FADE back office system to FADE Systems Limited for the carrying value of £616,744. FADE Systems Limited is connected to the company through common ownership and control and the transaction was done to allow further development work to be done and allow greater focus on the software as a distinct product.
FLYING COLOURS ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
4
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computer software and equipment
Total
£
£
£
£
Cost
At 1 July 2023
19,182
20,120
86,825
126,127
Additions
19,922
19,922
At 30 June 2024
19,182
20,120
106,747
146,049
Depreciation and impairment
At 1 July 2023
10,379
19,921
78,038
108,338
Depreciation charged in the year
1,956
76
6,936
8,968
At 30 June 2024
12,335
19,997
84,974
117,306
Carrying amount
At 30 June 2024
6,847
123
21,773
28,743
At 30 June 2023
8,803
199
8,787
17,789
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
849,534
795,225
Amounts owed by group undertakings
5,932,146
5,075,248
Other debtors
861,396
159,425
7,643,076
6,029,898
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
324,256
284,383
Amounts owed to group undertakings
4,572,580
3,538,137
Other creditors
390,749
369,988
5,287,585
4,192,508
7
Provisions for liabilities
2024
2023
£
£
-
85,000
FLYING COLOURS ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
7
Provisions for liabilities
(Continued)
- 7 -
A provision was made as at 30 June 2023 for future payouts in respect of historic wrongly advised British Steel defined benefit pension transfers. This has now been settled and provision has been released.
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
145,847,826
145,847,826
1,458,478
1,458,478
9
Share premium account
This reserve records the amount above the nominal value received for shares sold, less transaction costs.
10
Profit and loss reserves
The retained earnings reserve records retained earnings and accumulated losses.
11
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:
David Forinton
Statutory Auditor:
Kirk Rice LLP
Date of audit report:
23 December 2024
12
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
176,849
123,255
13
Parent company
The parent company of Flying Colours Advice Limited is Flying Colours Holdings Limited, whose registered address is 1301 Ocean House The Ring, Bracknell, Berkshire, England, RG12 1AX.