REGISTERED NUMBER: 13322498 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
PROJECT HALLELUJAH BIDCO LIMITED |
REGISTERED NUMBER: 13322498 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
PROJECT HALLELUJAH BIDCO LIMITED |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Income Statement | 11 |
Consolidated Other Comprehensive Income | 12 |
Consolidated Balance Sheet | 13 |
Company Balance Sheet | 14 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 16 |
Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Financial Statements | 19 |
PROJECT HALLELUJAH BIDCO LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 APRIL 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors and Chartered Accountants |
5 Brooklands Place |
Brooklands Road |
Sale |
Cheshire |
M33 3SD |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their strategic report of the company and the group for the year ended 30 April 2024. |
REVIEW OF BUSINESS |
During the year under review, the principal activities of Project Hallelujah Bidco Ltd (the "Company") together with its wholly owned subsidiaries (the "Group") consisted of the provision of professional advisory services categorised into three main service pillars as follows: |
- Restructuring & Insolvency |
- Legal |
- Funding |
The Restructuring & Insolvency division has seen an increase in Revenue from £25m to £33m (33%), a full year of Leonard Curtis Sheffield Limited has contributed to £1.9m of the growth, the remaining increase has been through organic growth and the UK restructuring market continuing to see significant activity following the withdrawal of pandemic-related government support, UK inflation and rising energy costs. |
The Group reported a record revenue of £38,722,467 with an EBITDA of £6,370,194 during the year. |
The EBITDA figure is stated having added back interest payable and similar expenses, depreciation and amortisation. |
The results from the Legal services division were strong for the period and reflected a buoyant M&A market for the corporate team and internal referrals from our Restructuring & insolvency division. The division has seen an uplift in Revenue from £2.5m to £3.4m, this is through organic growth and a key hire towards the end of the year under review. |
The results in Funding remain strong with SME's requiring funding as they come out of the pandemic and access to government-backed funding continues to be phased out. |
Throughout the period, the group continued to grow in headcount, this was inline with the group's longer term plan and maintaining a higher level of staffing during the previous financial year. The group has continued to invest in people by expanding existing services and opening new offices throughout the UK. The largest increase in costs has been payroll costs increasing by 18.5% from £17.8m to £21.1m. A full year of costs from the acquisition of Leonard Curtis Sheffield Limited, specific performance related pay and the general increase in cost-of-living reviews. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The management of the business and the nature of the company's strategy are subject to a number of risks. The directors are of the opinion however that current processes and plans in place mitigate such risks significantly. In overview, the key issues subject to ongoing assessment include; |
- Keeping and developing key staff |
- Constantly developing service lines to meet the needs of the market |
- Competitor actions in terms of hiring the best staff, their market approach and related service lines |
- Suitable and appropriate financing to allow the group to achieve its long-term goals and the identified growth opportunities. |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
SECTION 172(1) STATEMENT |
Risks |
Recruitment & Retention of high calibre of Key employees |
The business is dependent upon the professional development, recruitment and retention of key work winners and employees. The business manages this risk through providing equity options, competitive reward structure, benefits including salary sacrifice schemes, private health, pensions, support to develop careers and gain professional Qualification, and long-term incentive awards to incentives and retain key people. |
Legal & regulation |
The three pillars (Insolvency, Legal & Funding) operate in regulated markets. Failure to comply with, or changes in, regulation or legislation may have an adverse impact on the activities of the business. Th ensure compliance with relevant legislation in performing regulated activities, the business has deducted compliance functions which maintain procedures and policies in line with current legislation. |
The company also use third-party Professional corroboration. In addition, the company has appropriate professional indemnity insurance. |
Technology risk |
Given the nature of our business, we depend on our operating systems and infrastructure to be robust. We have deployed security software and services to mitigate against the threat of potential cyber security breaches. Technology is central to our service and we invest heavily in enhancing our core IT and IT processes while maintaining the integrity and security of our operating systems and infrastructure. We work alongside our trusted business partners to deliver innovative systems and infrastructure and regularly update and improve our own internal safeguards. |
Section 172 (1) Statement |
The Board of Directors consider that they have acted in the way they consider, in good faith, would be the most likely to promote the success of the Group for the benefit of its members as a whole, having regard to the stakeholders and matters set out in s172 (1) (a-f) of the Companies Act 2006 |
The paragraphs below outline how the directors have fulfilled their duties: |
Governance and decision making |
The Group maintains a defined governance structure that is reviewed regularly to ensure it is fit for purpose. The Board formally meets regularly as required by the business to discuss business strategy, performance and any other key matters. The day-to-day management of the business is carried out by the Senior Leadership Team along with a number of key individuals on a regional basis. Any key decision making is carried out and / or approved at Board level. |
The Board is comprised of both internal management and external investors, which provides an appropriate degree of challenge to management. |
The business operates regular performance meetings beneath this governance structure by pillar and region to ensure engagement, support and challenge with the decision making process. |
Business relationships |
The nature of the work carried out by the Group can often be with individuals who are encountering significant pressure and challenges within their businesses. We look to treat all individuals with respect whilst fulfilling our statutory duties. |
LC Foundation |
The Leonard Curtis Foundation launched in December 2020 to enable us all to make a difference and have a positive social impact in areas that we care about - supporting worthwhile causes and local communities. |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The Leonard Curtis Foundation supports a number of causes through financial grants to help those in need, as nominated by our team. |
LC employees are invited to nominate registered charities that they would like the foundation to support on a twice yearly basis, as well as get involved in fundraising throughout the year. |
Employees |
Our greatest asset are the people that work within our business. It is important that all staff are aware of the company strategy and are able to actively contribute towards it. We recognise the importance of career development and actively support our people in professional qualifications and training. |
We engage and interact with our teams both on a local office level and nationally. The senior management team across all the group's operations meet both formally and informally on a regular basis through People conferences, quarterly Q&A time with our CEO & COO, appraisals and employee questionnaires. |
Acquisitions |
The Group has completed two acquisitions during the financial year which the Board believes will deliver value on a number of levels. This includes expanding service offerings and complementing existing established revenue streams within the Group. A proportion of the acquisition cost was financed through an acquisition facility. |
FINANCIAL INSTRUMENTS |
The group has a bank facility and due to ongoing generation of cash flow from operating activities the facility is used at a very manageable level, and the group's exposure to interest rate risk on bank borrowing is considered to be low. |
FUTURE DEVELOPMENTS |
The group continues to seek to grow its market share by way of geographical expansion and by reviewing the potential growth within the offshore market and by acquisitions - within all 3 pillars of the business, the Group has access to significant levels of capital as a result of the transaction on the 23rd August 2021. The Group anticipates meeting its strategic target of £50m revenues by 2025 based on the mixture of organic growth, key hires, and acquisitions. |
ON BEHALF OF THE BOARD: |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 April 2024. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 April 2024. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
DIRECTORS' INDEMNITIES |
The Company has made qualifying third-party indemnity provisions for the benefit of its directors which were made during the year and remain force at the date of this report. |
STREAMLINED ENERGY AND CARBON REPORTING |
Under the 'Companies (Directors' report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018', the Group is required to report its UK Energy use and associated greenhouse gas (GHG) emissions. |
Calculations have been made for the reporting of the UK energy use, in relation to three scopes as defined by the GHG Protocol: |
Scope 1 - Combustion of gas and fuel for transport |
Scope 2 - Purchased Electricity |
Scope 3 - Transport (including train and air fare) |
The methodology uses the '2024 Government Greenhouse Gas Conversion Factors for Company Reporting' to calculate emissions for the Group and its subsidiaries |
GHG Statement | Unit | 2024 | 2023 |
Scope 1 | Tonnes of CO2e | 30 | N/A |
Scope 2 | Tonnes of CO2e | 96 | N/A |
Scope 3 | Tonnes of CO2e | 92 | N/A |
Total emissions |
Intensity Measure |
Emissions by full-time equivalent member of staff |
Tonnes of CO2e/FTE |
0.76 |
N/A |
Energy Consumption |
Scope 1 | kWh | 146,000 | N/A |
Scope 2 | kWh | 464,000 | N/A |
Scope 3 | kWh | 400,000 | N/A |
Total |
Efficiency Measures |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
The business has reduced emissions through reducing travel for employees via remote meetings, reducing waste generated in offices through recycling initiatives and encouraging sustainable practices for staff member. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen to set out information in respect of financial instruments and future developments in its strategic report. |
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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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. |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, Harold Sharp Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PROJECT HALLELUJAH BIDCO LIMITED |
Opinion |
We have audited the financial statements of Project Hallelujah Bidco Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the Consolidated Income Statement, 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 April 2024 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PROJECT HALLELUJAH BIDCO LIMITED |
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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 |
PROJECT HALLELUJAH BIDCO 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: |
As part of our planning process: |
- We enquired of management the systems and controls the group and parent company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. |
- We obtained an understanding of the legal and regulatory frameworks applicable to the group and parent company. We determined that the following were most relevant: FRS 102, Companies Act 2006, health and safety, and employment law. |
- We considered the incentives and opportunities that exist in the group and parent company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly. |
- Using our knowledge of the company, together with the discussions held with the group and parent company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment. |
The key procedures we undertook to detect irregularities including fraud during the course of the audit included: |
- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual. |
- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied. |
- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to depreciation, bad debt provision, WIP provision, and accrued costs. |
- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation. |
- Testing key revenue lines, in particular cut-off, for evidence of management bias. |
- Obtaining third-party confirmation of material bank balances. |
- Documenting and verifying all significant related party and consolidated balances and transactions. |
- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud. |
- Testing all material consolidation adjustments. |
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors and management. |
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 |
PROJECT HALLELUJAH BIDCO 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 |
Statutory Auditors and Chartered Accountants |
5 Brooklands Place |
Brooklands Road |
Sale |
Cheshire |
M33 3SD |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 | 38,722,467 | 29,291,346 |
Cost of sales | (2,746,681 | ) | (1,798,239 | ) |
GROSS PROFIT | 35,975,786 | 27,493,107 |
Administrative expenses | (30,960,967 | ) | (25,458,187 | ) |
5,014,819 | 2,034,920 |
Other operating income | 889 | 66,768 |
OPERATING PROFIT | 6 | 5,015,708 | 2,101,688 |
Interest receivable and similar income | 30,082 | 6,196 |
5,045,790 | 2,107,884 |
Interest payable and similar expenses | 7 | (1,278,178 | ) | (1,301,334 | ) |
PROFIT BEFORE TAXATION | 3,767,612 | 806,550 |
Tax on profit | 8 | (1,347,220 | ) | (398,396 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 2,427,418 | 403,320 |
Non-controlling interests | (7,026 | ) | 4,834 |
2,420,392 | 408,154 |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 2,420,392 | 408,154 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,420,392 |
408,154 |
Total comprehensive income attributable to: |
Owners of the parent | 2,427,418 | 403,320 |
Non-controlling interests | (7,026 | ) | 4,834 |
2,420,392 | 408,154 |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
CONSOLIDATED BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 7,939,289 | 8,171,651 |
Tangible assets | 11 | 686,654 | 633,941 |
Investments | 12 | - | - |
8,625,943 | 8,805,592 |
CURRENT ASSETS |
Debtors | 13 | 22,898,008 | 18,976,832 |
Cash at bank and in hand | 1,644,674 | 1,115,733 |
24,542,682 | 20,092,565 |
CREDITORS |
Amounts falling due within one year | 14 | 7,096,422 | 5,526,526 |
NET CURRENT ASSETS | 17,446,260 | 14,566,039 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
26,072,203 |
23,371,631 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(23,399,814 |
) |
(23,131,416 |
) |
PROVISIONS FOR LIABILITIES | 20 | (127,763 | ) | (117,481 | ) |
NET ASSETS | 2,544,626 | 122,734 |
CAPITAL AND RESERVES |
Called up share capital | 21 | 1,895 | 1,880 |
Share premium | 22 | 187,605 | 186,120 |
Retained earnings | 22 | 2,356,243 | (71,175 | ) |
SHAREHOLDERS' FUNDS | 2,545,743 | 116,825 |
NON-CONTROLLING INTERESTS | 23 | (1,117 | ) | 5,909 |
TOTAL EQUITY | 2,544,626 | 122,734 |
The financial statements were approved by the Board of Directors and authorised for issue on 27 January 2025 and were signed on its behalf by: |
D J Booth - Director |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
COMPANY BALANCE SHEET |
30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 21 |
Share premium | 22 |
Retained earnings | 22 |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (1,224,886 | ) | (1,264,529 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 May 2022 | 1,860 | (344,502 | ) | 184,140 |
Prior year adjustment | - | (129,993 | ) | - |
As restated | 1,860 | (474,495 | ) | 184,140 |
Changes in equity |
Issue of share capital | 20 | - | 1,980 |
Total comprehensive income | - | 403,320 | - |
Balance at 30 April 2023 | 1,880 | (71,175 | ) | 186,120 |
Changes in equity |
Issue of share capital | 15 | - | 1,485 |
Total comprehensive income | - | 2,427,418 | - |
Balance at 30 April 2024 | 1,895 | 2,356,243 | 187,605 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 May 2022 | (158,502 | ) | 1,075 | (157,427 | ) |
Prior year adjustment | (129,993 | ) | - | (129,993 | ) |
As restated | (288,495 | ) | 1,075 | (287,420 | ) |
Changes in equity |
Issue of share capital | 2,000 | - | 2,000 |
Total comprehensive income | 403,320 | 4,834 | 408,154 |
Balance at 30 April 2023 | 116,825 | 5,909 | 122,734 |
Changes in equity |
Issue of share capital | 1,500 | - | 1,500 |
Total comprehensive income | 2,427,418 | (7,026 | ) | 2,420,392 |
Balance at 30 April 2024 | 2,545,743 | (1,117 | ) | 2,544,626 |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 30 April 2023 |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | - | ( |
) |
Balance at 30 April 2024 |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,979,262 | 1,512,134 |
Interest paid | (7,984 | ) | (10,924 | ) |
Tax paid | (710,590 | ) | (403,783 | ) |
Net cash from operating activities | 2,260,688 | 1,097,427 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (417,679 | ) | (171,886 | ) |
Sale of tangible fixed assets | 396 | - |
Business acquisitions | - | (1,229,076 | ) |
Deferred consideration payments | (1,359,546 | ) | - |
Interest received | 30,082 | 6,196 |
Net cash from investing activities | (1,746,747 | ) | (1,394,766 | ) |
Cash flows from financing activities |
Issue of C Preference Shares | 1,500 | 18,000 |
Issue of C Ordinary Shares | 13,500 | 2,000 |
Net cash from financing activities | 15,000 | 20,000 |
Increase/(decrease) in cash and cash equivalents | 528,941 | (277,339 | ) |
Cash and cash equivalents at beginning of year |
2 |
1,115,733 |
1,393,072 |
Cash and cash equivalents at end of year | 2 | 1,644,674 | 1,115,733 |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 3,767,612 | 806,550 |
Depreciation charges | 1,324,403 | 1,220,389 |
Profit on disposal of fixed assets | (396 | ) | - |
Finance costs | 1,278,178 | 1,301,334 |
Finance income | (30,082 | ) | (6,196 | ) |
6,339,715 | 3,322,077 |
Increase in trade and other debtors | (4,099,028 | ) | (2,588,394 | ) |
Increase in trade and other creditors | 738,575 | 778,451 |
Cash generated from operations | 2,979,262 | 1,512,134 |
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 April 2024 |
30/4/24 | 1/5/23 |
£ | £ |
Cash and cash equivalents | 1,644,674 | 1,115,733 |
Year ended 30 April 2023 |
30/4/23 | 1/5/22 |
£ | £ |
Cash and cash equivalents | 1,115,733 | 1,700,706 |
Bank overdrafts | - | (307,634 | ) |
1,115,733 | 1,393,072 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/5/23 | Cash flow | At 30/4/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,115,733 | 528,941 | 1,644,674 |
1,115,733 | 528,941 | 1,644,674 |
Debt |
Debts falling due after 1 year | (19,892,000 | ) | (13,500 | ) | (19,905,500 | ) |
(19,892,000 | ) | (13,500 | ) | (19,905,500 | ) |
Total | (18,776,267 | ) | 515,441 | (18,260,826 | ) |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | STATUTORY INFORMATION |
Project Hallelujah Bidco Limited is a private company limited by shares, incorporated in England and Wales. The company's registered number is 13322498 and registered office is Riverside House, Irwell Street, Manchester, M3 5EN. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The functional and presentation currency is £ sterling. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirement for parent company information presented within the consolidated financial statements: |
- Section 7 'Statement of Cash Flows': |
- Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instrument Issues: |
- Section 33 'Related Party Disclosures': Compensation for key management personnel. |
Basis of consolidation |
The consolidated group financial statements consist of the financial statements of the parent company Project Hallelujah Bidco Limited together with all of the entities controlled by the parent company (its subsidiaries). |
All financial statements are made up to 30 April 2024 and all intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. |
Subsidiaries are consolidated in the group's financial statements from the date that control commences until the date that control ceases. |
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. |
The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. |
The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. |
Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment. |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Turnover represents amounts chargeable to clients for professional services provided during the period, inclusive of direct expenses incurred on client assignments but excluding value added tax. Turnover is recognised when a right to consideration has been obtained through performance on each assignment. Consideration accrues as activity progresses by reference to the value of work performed. Turnover is not recognised where the right to receive payment is contingent on events outside the control of the company. |
Unbilled revenue is included on the balance sheet within debtors, amounts falling due within one year. |
Goodwill |
Goodwill represents the excess of the cost of acquisition of a business 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 straight line 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. |
Tangible fixed assets |
Office furniture and equipment | - |
Computer equipment | - |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. |
At each balance sheet date, the Company reviews the carrying amounts of its fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. |
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. |
Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
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 and other post-retirement benefits |
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. |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group has elected to apply the provisions of Section 11 'Basic Financial Instruments' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised when the group 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, which include trade debtors, other debtors, unbilled revenue, amounts due from group undertakings 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. Financial assets classified as receivable within one year are not amortised. |
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, including bank overdraft, trade creditors, other creditors, and amounts owed to group undertakings, 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 are derecognised when, and only when, the group's contractual obligations are discharged, cancelled, or they expire. |
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. |
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 group after deducting all of its liabilities. |
Basic financial liabilities, including 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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit and loss account on a straight line basis over the period of the lease and are adjusted for any lease incentives received. |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
The Strategic Report sets out the director's view of the group position and having considered the current trading and future expectations, the directors are confident the group will trade profitably in future periods and generate sufficient cash flows to meet its obligations as they fall due for payment. |
Share based payment transactions |
Equity-settled transactions |
Equity-settled arrangements are measured at fair value (excluding the effect of non– market based vesting conditions) at the date of the grant. The fair value is expended on a straightened basis over the vesting period. The amount recognised as an expense is adjusted to reflect the actual number of shares or options that will vest. |
Where equity-settled arrangements are modified, and are of benefit to the employee, the incremental fair value is recognised over the period from the date of modification to date of vesting. Where a modification is not beneficial to the employee there is no change to the charge for share-based payment. Settlements and cancellations are treated as an acceleration of vesting an the untested amount is recognised immediately in the income statement. |
The group has no cash-settled arrangements |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
In the application of the group and 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. |
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. |
Unbilled revenue |
The directors make judgements as to whether the final outcome on long term assignments can be assessed with reasonable certainty before profits are calculated. |
The directors also make judgements as to the amount of profit that is calculated on long term assignments such that it prudently reflects the proportion of the work carried out by the year end by recording turnover and related costs as contract activity progresses. |
Trade debtors recoverability |
Amounts recoverable on trade debtors are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses. The directors make estimates as to the recoverability of these debts and provide for them accordingly. |
Goodwill amortisation |
In the group accounts, goodwill represents the excess of the cost of acquisition of a business 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 straight line basis over its expected life, which is 10 years. The directors have to consider goodwill amortisation and impairment and this includes making estimates and assumptions about future trading performance and cash generation. |
Fixed asset investments |
In the company accounts, fixed asset investments are stated at cost, unless in the opinion of the directors there has been a permanent impairment, in which case an appropriate adjustment is made. The directors have to consider fixed asset investment impairment and this includes making estimates and assumptions about future trading performance and cash generation. |
Classification of Preference Shares |
The group are required to determine whether the preference shares in issue should be classified as debt or equity based on whether the contract results in an unconditional obligation to settle the shares in cash, including the interest due. We consider that the terms of the preference shares meet the definition of a debt instrument and as such these are recognised in liabilities, with interest accruing in line with the contractual interest rate. |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
Legal services | 3,399,827 | 2,552,696 |
Funding services | 2,217,839 | 1,586,744 |
Insolvency and recovery | 33,104,801 | 25,151,906 |
38,722,467 | 29,291,346 |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 18,489,599 | 15,390,805 |
Social security costs | 1,858,507 | 1,772,839 |
Other pension costs | 729,024 | 595,603 |
21,077,130 | 17,759,247 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 4 | 4 |
Management and administration | 290 | 259 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 239,325 | 300,350 |
Directors' pension contributions to money purchase schemes | 11,642 | 14,600 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 154,133 | 153,053 |
Pension contributions to money purchase schemes | 7,500 | 7,500 |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Depreciation - owned assets | 364,966 | 329,468 |
Profit on disposal of fixed assets | (396 | ) | - |
Goodwill amortisation | 959,436 | 890,921 |
Auditors' remuneration | 109,182 | 84,390 |
Operating lease charges - property | 837,308 | 744,050 |
Operating lease charges - other | 210,701 | 191,469 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Other interest paid | 7,984 | 10,924 |
Finance costs | 75,549 | 97,970 |
Preference share dividends | 1,194,645 | 1,192,440 |
1,278,178 | 1,301,334 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 1,338,694 | 447,403 |
Prior year corporation tax | (1,756 | ) | (1,237 | ) |
Total current tax | 1,336,938 | 446,166 |
Deferred tax | 10,282 | (47,770 | ) |
Tax on profit | 1,347,220 | 398,396 |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
8. | 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: |
2024 | 2023 |
£ | £ |
Profit before tax | 3,767,612 | 806,550 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19.652 %) |
941,903 |
158,503 |
Effects of: |
Expenses not deductible for tax purposes | 263,599 | 133,828 |
Capital allowances in excess of depreciation | (5,537 | ) | - |
Depreciation in excess of capital allowances | - | 35,478 |
Adjustments to tax charge in respect of previous periods | (1,756 | ) | (1,237 | ) |
Tax on goodwill amortisation | 239,859 | 173,669 |
Tax on preference share dividends | 226,983 | 232,402 |
Non taxable income in Channel Islands | (328,113 | ) | (286,477 | ) |
Deferred tax | 10,282 | (47,770 | ) |
Total tax charge | 1,347,220 | 398,396 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 May 2023 | 9,594,365 |
Additions | 727,074 |
At 30 April 2024 | 10,321,439 |
AMORTISATION |
At 1 May 2023 | 1,422,714 |
Amortisation for year | 959,436 |
At 30 April 2024 | 2,382,150 |
NET BOOK VALUE |
At 30 April 2024 | 7,939,289 |
At 30 April 2023 | 8,171,651 |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
10. | INTANGIBLE FIXED ASSETS - continued |
Group |
The addition to goodwill during the financial year represents the resolution of the actual deferred consideration payments made. |
11. | TANGIBLE FIXED ASSETS |
Group |
Office |
furniture |
Short | Plant and | and | Computer |
leasehold | machinery | equipment | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 May 2023 | - | - | 884,828 | 280,986 | 1,165,814 |
Additions | - | 24,636 | 106,472 | 286,571 | 417,679 |
Disposals | - | - | (605 | ) | - | (605 | ) |
At 30 April 2024 | - | 24,636 | 990,695 | 567,557 | 1,582,888 |
DEPRECIATION |
At 1 May 2023 | - | - | 425,884 | 105,989 | 531,873 |
Charge for year | 1,344 | 13,276 | 222,814 | 127,532 | 364,966 |
Eliminated on disposal | - | - | (605 | ) | - | (605 | ) |
At 30 April 2024 | 1,344 | 13,276 | 648,093 | 233,521 | 896,234 |
NET BOOK VALUE |
At 30 April 2024 | (1,344 | ) | 11,360 | 342,602 | 334,036 | 686,654 |
At 30 April 2023 | - | - | 458,944 | 174,997 | 633,941 |
12. | FIXED ASSET INVESTMENTS |
Company |
Unlisted |
investments |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Riverside House, Irwell Street, Manchester M3 5EN. |
Nature of business: |
% |
Class of shares: | holding |
The company owns the entire share capital of Leonard Curtis Recovery Limited which in turn holds the shares specified below in the other subsidiaries. |
Registered office: Riverside House, Irwell Street, Manchester M3 5EN. |
Nature of business: |
% |
Class of shares: | holding |
This company holds the shares specified below in the other subsidiaries. |
Registered office: Riverside House, Irwell Street, Manchester M3 5EN. |
Nature of business: |
% |
Class of shares: | holding |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: Riverside House, Irwell Street, Manchester M3 5EN. |
Nature of business: |
% |
Class of shares: | holding |
Leonard Curtis Limited owns the entire share capital of Leonard Curtis C.I. Limited, a company incorporated in Guernsey. The company operates as an insolvency practitioner. The registered office of this company is Suite 3, Richmond House, Ann's Place, St Peter Port, Guernsey, GY1 2NU. |
On 12 November 2021 Leonard Curtis Limited acquired the entire shareholding of Portland Business & Financial Solutions Limited, a company registered in England & Wales which was incorporated on 24 August 1999. Portland Business & Financial Solutions Limited are insolvency practitioners and on 31 October 2022 changed their name to Leonard Curtis South Coast Limited. The registered office of this company is Riverside House, Irwell Street, Manchester, M3 5EN. |
Following the year end, the trading activities of the Leonard Curtis South Coast Limited were transferred to another group company. There is currently no intention to recommence trading from the company. |
On 8 June 2023, the company acquired 100% of the share capital in Leonard Curtis Jersey Limited, a company trading as insolvency practitioners incorporated in Jersey. The registered office of this company is 2nd Floor, The Le Gallais Building, 54 Bath Street, St. Helier, Jersey, JE1 1FW. |
Registered office: Riverside House, Irwell Street, Manchester M3 5EN. |
Nature of business: |
% |
Class of shares: | holding |
On 10th June 2022, Leonard Curtis Recovery Limited acquired one additional share in L C Risk Management Limited. |
Registered office: Riverside House, Irwell Street, Manchester M3 5EN. |
Nature of business: |
% |
Class of shares: | holding |
Registered office: Riverside House, Irwell Street, Manchester M3 5EN. |
Nature of business: |
% |
Class of shares: | holding |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
12. | FIXED ASSET INVESTMENTS - continued |
Registered office: Riverside House, Irwell Street, Manchester M3 5EN. |
Nature of business: |
% |
Class of shares: | holding |
In addition, Reach Commercial Finance Limited owns the entire ordinary share capital of Pathstone Finance Limited. On 24 January 2023, the two wholly owned subsidiaries of Pathstone Finance Limited, being PS Finance Limited and Invoice Finance Scotland Limited were dissolved. |
On 24 January 2023, Factoring Advisory Services Limited and Reach Equity Solutions Limited, wholly owned subsidiaries of Reach Commercial Finance Limited, were also dissolved. |
Registered office: Riverside House, Irwell Street, Salford, England, M3 5EN |
Nature of business: |
% |
Class of shares: | holding |
On 01 March 2023, Leonard Curtis Recovery Limited acquired the entire shareholding of The Springs Partnership Limited, a company registered in England & Wales which was incorporated on 27 November 2015. |
The Springs Partnership Limited are insolvency practitioners and on 18 May 2023 changed their name to Leonard Curtis Sheffield Limited. The registered office of this company is Riverside House, Irwell Street, Manchester, M3 5EN. |
Following the year end, the trading activities of the Leonard Curtis Sheffield Limited were transferred to another group company. There is currently no intention to recommence trading from the company |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 4,329,234 | 5,598,368 |
Unbilled revenue | 17,117,432 | 11,828,554 | - | - |
Other debtors | 48,435 | 107,543 |
Tax | 12,857 | 190,710 |
Prepayments and accrued income | 1,390,050 | 1,251,657 |
22,898,008 | 18,976,832 |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade creditors | 1,026,729 | 996,210 |
Amounts owed to group undertakings | - | - |
Corporation tax | 795,905 | 347,410 |
Social security and other taxes | 1,557,882 | 1,485,180 |
Other creditors | 1,820,061 | 1,259,684 |
Accruals | 1,895,845 | 1,438,042 |
7,096,422 | 5,526,526 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Preference shares (see note 16) | 19,905,500 | 19,892,000 |
Other creditors | 312,269 | 1,252,016 |
Accruals and deferred income | 3,182,045 | 1,987,400 |
23,399,814 | 23,131,416 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Amounts falling due between two and five | years: |
Preference shares | 19,905,500 | 19,892,000 | 19,905,500 | 19,892,000 |
Details of shares shown as liabilities are as follows: |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
16. | PREFERENCE SHARES - continued |
2024 | 2023 |
£ | £ |
6% A Preference Shares of £1 each | 9,910,000 | 9,910,000 |
6% B Preference Shares of £1 each | 9,910,000 | 9.910,000 |
6% C Preference Shares of £1 each | 85,500 | 72,000 |
19,905,500 | 19,892,000 |
The 13,500 additional 6% C preference shares were issued on 18 July 2023 at par. |
The Preference Shares do not have any voting rights. |
Preference share dividends are shown as an interest expense. The basis of calculation and payment is: |
(a) Unless the Board (with Investor Consent) determines otherwise, the Preference Dividend will accrue from day to day from and including the date of issue of the relevant Preference Shares compounding annually on each anniversary of the date of issue (meaning that all accruals of the Preference Dividend at the rate of 6% per annum of the Issue Price of the Preference Shares in each such year shall, with effect from each anniversary of the date of issue, be treated as an addition to the aggregate Issue Price of the relevant Preference Share for the purposes of calculating the Preference Dividend for each subsequent year). |
(b) The accrued and unpaid Preference Dividend (compounded as provided in Article 4.l (a)) will become due and payable upon the date of the redemption of the relevant Preference Share (whether on a Realisation or otherwise) in accordance with Article 5.1 and will, upon becoming due and payable, without any resolution of the Board or of the Company in general meeting, become a debt due from and immediately payable by the Company to the extent the Company has profits available for distribution. |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 832,209 | 840,106 |
Between one and five years | 959,416 | 1,200,162 |
In more than five years | 66,779 | - |
1,858,404 | 2,040,268 |
18. | SECURED DEBTS |
LCBSG Limited, Leonard Curtis Recovery Limited, Leonard Curtis Limited, Reach Commercial Finance Limited, Leonard Curtis Legal Limited, Leonard Curtis C.I. Limited and LC Debt Solutions Limited have entered into a cross guarantee in respect of bank borrowings. At 30 April 2024 an amount of £412,474 was owed by group companies to the bank (2023: £nil). |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
19. | FINANCIAL INSTRUMENTS |
Group |
2024 | 2023 |
£ | £ |
Carrying amount of financial assets | 23,552,249 | 18,650,198 |
Carrying amount of financial liabilities | 26,744,146 | 25,387,310 |
Financial assets measured at transaction price comprise cash and cash equivalents, trade debtors, unbilled revenue and other debtors. |
Financial liabilities measured at transaction price comprise preference shares, trade creditors and other creditors. |
20. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 127,763 | 117,481 |
Group |
Deferred |
tax |
£ |
Balance at 1 May 2023 | 117,481 |
Provided during year | 10,282 |
Balance from acquisition |
Balance at 30 April 2024 | 127,763 |
The whole of the deferred tax liability relates to accelerated capital allowances. |
21. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
A Ordinary | 0.01 | 900 | 900 |
B Ordinary | 0.01 | 900 | 900 |
C Ordinary | 0.01 | 95 | 80 |
1,895 | 1,880 |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
22. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 May 2023 | (71,175 | ) | 186,120 | 114,945 |
Profit for the year | 2,427,418 | 2,427,418 |
Share issue | - | 1,485 | 1,485 |
At 30 April 2024 | 2,356,243 | 187,605 | 2,543,848 |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 May 2023 | 3,935,465 |
Deficit for the year | ( |
) | ( |
) |
Share issue | - | 1,485 | 1,485 |
At 30 April 2024 | 2,712,064 |
23. | NON-CONTROLLING INTERESTS |
The non-controlling interest relates to the outside interest in LC Risk Management Limited. |
24. | OTHER FINANCIAL COMMITMENTS |
The Group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. |
During the period the group contributed £729,024 (2023: £595,603). |
Creditors include £52,873 (2023: £58,404) in respect of outstanding employer pension contributions at the year end. |
25. | 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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
The company has made the following payments for board meeting fees: |
Svella Plc - £50,000 (2023: £50,000) |
Arete Capital Partners LLP - £50,000 (2023: £50,000) |
PROJECT HALLELUJAH BIDCO LIMITED (REGISTERED NUMBER: 13322498) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
26. | ULTIMATE CONTROLLING PARTY |
The directors are of the opinion that there is no ultimate controlling party. |
27. | SHARE-BASED PAYMENT TRANSACTIONS |
Share Options |
During the period, the company granted share options under the Leonard Curtis Group Enterprise Incentives (EMI) Share Option Plan. This scheme is considered to be equity settled as it will be settled in the equity of the Company with no option for cash settlement by the option holders. The scheme requires continuous employment as a vesting condition. |
An external independent specialist reviewed and calculated the fair value of options granted and this was considered to be negligible in the prior period. The Directors maintain for the current year that the fair value of the options granted continues to be negligible. As such there is no expense recognised in relation to this scheme in the period (2023: nil) and the options are considered to have nil (2023: nil) fair value at the balance sheet date. The 4,925 options issued in the prior period represent all options outstanding at the balance sheet date. |
28. | KEY MANAGEMENT PERSONNEL COMPENSATION |
The group's key management personnel are considered to be the directors. |