REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
LEONARD CURTIS (UK) LIMITED |
PREVIOUSLY KNOWN AS |
LEONARD CURTIS RECOVERY LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
FOR |
LEONARD CURTIS (UK) LIMITED |
PREVIOUSLY KNOWN AS |
LEONARD CURTIS RECOVERY LIMITED |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Profit and Loss Account | 9 |
Statement of Comprehensive Income | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Notes to the Financial Statements | 13 |
LEONARD CURTIS (UK) LIMITED |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY 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 |
BANKERS: |
Spinningfields Square |
182 Deansgate |
Manchester |
M3 3LY |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their strategic report on the company for the year ended 30 April 2024. |
REVIEW OF BUSINESS |
The nature of the business is to provide insolvency services and advice to a wide range of businesses who are struggling financially and who require assistance in these matters. |
The company saw a slight increase in turnover during the year, this was impacted by continuing low levels of insolvencies compared to pre-pandemic levels. The company however continued to hold its market share across the UK and is well placed to take advantage of the expected increase in insolvencies in the future with the end of the government schemes and rise in energy prices. |
The company had invested significantly in the staff cost base going into the pandemic and maintained these staffing levels through the quiet period, in anticipation of high volumes of work in coming years. |
At the balance sheet date, the company retained sufficient resources to maintain the current level of activities expected. |
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. |
FINANCIAL INSTRUMENTS |
The company has recently negotiated a new bank facility and due to ongoing generation of cash flow from operating activities the facility is used at a very manageable level, and the company's exposure to interest rate risk on bank borrowing is considered to be low. |
FUTURE DEVELOPMENTS |
The company continues to seek to grow its market share by way of geographical expansion and by providing new and innovative services to businesses in financial distress. |
ON BEHALF OF THE BOARD: |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
The directors present their report with the financial statements of the company for the year ended 30 April 2024. |
CHANGE OF NAME |
The company passed a special resolution on 1 May 2024 changing its name from Leonard Curtis Recovery Limited to Leonard Curtis (UK) Limited. |
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 in force at the date of this report. |
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 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 APRIL 2024 |
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 company'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 company'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 SHAREHOLDERS OF |
LEONARD CURTIS (UK) LIMITED |
Opinion |
We have audited the financial statements of Leonard Curtis (UK) Limited (the 'company') for the year ended 30 April 2024 which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and 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 company's affairs as at 30 April 2024 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE SHAREHOLDERS OF |
LEONARD CURTIS (UK) LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the 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, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of 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 three, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE SHAREHOLDERS OF |
LEONARD CURTIS (UK) 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 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 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 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 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 unbilled revenue. |
- 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 transactions. |
- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud. |
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 SHAREHOLDERS OF |
LEONARD CURTIS (UK) LIMITED |
Use of our report |
This report is made solely to the company's shareholders, 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 shareholders 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 shareholders 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 |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
PROFIT AND LOSS ACCOUNT |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
1,951,400 | (1,281,283 | ) |
Other operating income |
OPERATING PROFIT/(LOSS) | 7 | ( |
) |
Income from fixed asset investments |
Interest receivable and similar income |
2,976,994 | 699,615 |
Interest payable and similar expenses | 8 | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 9 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 APRIL 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
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 and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Share premium | 19 |
Capital redemption reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 APRIL 2024 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 May 2022 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 April 2023 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 April 2024 |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2024 |
1. | STATUTORY INFORMATION |
Leonard Curtis Recovery Limited is a private company limited by shares, incorporated in England and Wales. The company's registered number is 04200476 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 has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirement of paragraph 33.7. |
Preparation of consolidated financial statements |
The financial statements contain information about Leonard Curtis (UK) Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Project Hallelujah Bidco Limited, Riverside House, Irwell Street, Manchester, M3 5EN.. |
Revenue |
Turnover represents amounts chargeable to clients for professional services provided during the year, 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 the 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 as 'Debtors'. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2002, has been amortised evenly over its estimated useful life of ten years. |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
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 furniture and equipment 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. |
Financial instruments |
The company 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 company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
Basic financial assets, 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 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 company's contractual obligations are discharged, cancelled, or they expire. |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pensions |
The company operates a defined contribution pension scheme. Contributions payable for the year are charged in the profit and loss account. |
Fixed asset investments |
Fixed asset investments are stated at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss. |
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. |
Hire purchase and leasing commitments |
Rentals paid under operating leases, including any lease incentives received, are charged to the profit and loss account on a straight line basis over the term of the relevant lease. |
Going concern |
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 continues to adopt the going concern basis of accounting in preparing the financial statements. |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
NOTES TO THE 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 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. |
Impairment of investment in subsidiaries |
Management consider whether investments in subsidiaries are impaired on an annual basis. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash-generating units (CGUs). This requires estimation of the future cash flows from the CGUs. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
2024 | 2023 |
£ | £ |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 5 | 5 |
Management and Administration | 184 | 171 |
6. | DIRECTORS' EMOLUMENTS |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
7. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
Operating leases - land and buildings |
Operating leases - other |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Other interest paid |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
9. | TAXATION |
Analysis of the tax charge/(credit) |
The tax charge/(credit) on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit | ( |
) |
Reconciliation of total tax charge/(credit) included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Depreciation in excess of capital allowances |
Deferred tax movement | 2,915 | (44,407 | ) |
Group relief | (5,379 | ) | 122,986 |
Total tax charge/(credit) | 611,311 | (44,407 | ) |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 May 2023 |
and 30 April 2024 |
AMORTISATION |
At 1 May 2023 |
and 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
11. | TANGIBLE FIXED ASSETS |
Office |
furniture |
and | Computer |
equipment | equipment | Totals |
£ | £ | £ |
COST |
At 1 May 2023 |
Additions |
At 30 April 2024 |
DEPRECIATION |
At 1 May 2023 |
Charge for year |
At 30 April 2024 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
12. | FIXED ASSET INVESTMENTS |
Unlisted |
investments |
£ |
COST |
At 1 May 2023 |
Additions |
Disposals | ( |
) |
At 30 April 2024 |
PROVISIONS |
At 1 May 2023 |
and 30 April 2024 | 6,040 |
NET BOOK VALUE |
At 30 April 2024 |
At 30 April 2023 |
The company's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: Riverside House, Irwell Street, Manchester, M3 5EN |
Nature of business: |
% |
Class of shares: | holding |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
NOTES TO THE 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 |
Registered office: Riverside House, Irwell Street, Manchester, M3 5EN |
Nature of business: |
% |
Class of shares: | holding |
Leonard Curtis Limited owns the entire ordinary share capital of Leonard Curtis C.I. Limited, a Guernsey registered company which was incorporated on 18 February 2019. Leonard Curtis C.I. Limited are insolvency practitioners. 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 share capital 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. |
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 |
In addition, Reach Commercial Finance Limited owns the entire ordinary share capital of Pathstone Finance Limited. |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
NOTES TO THE 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 |
On 23 August 2021, the company purchased the entire minority interest of Leonard Curtis Legal Limited taking the share holding from 74.90% to 100%. |
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 |
2024 | 2023 |
£ | £ |
Trade debtors |
Unbilled revenue | 10,820,541 | 7,643,868 |
Amounts owed by group undertakings |
Other debtors |
Tax |
Prepayments and accrued income |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
Other creditors |
Accruals |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Other creditors |
16. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
17. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 98,340 | 95,425 |
Deferred |
tax |
£ |
Balance at 1 May 2023 |
Provided during year |
Balance at 30 April 2024 |
The deferred tax liability calculated at the standard rate of corporation tax relates to an excess of capital allowances over related accumulated depreciation.The net reversal of the deferred tax liability in the next year is expected to be immaterial. |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 10,077 | 10,077 |
LEONARD CURTIS (UK) LIMITED (REGISTERED NUMBER: 04200476) |
PREVIOUSLY KNOWN AS LEONARD CURTIS RECOVERY LIMITED |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2024 |
19. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 May 2023 | 12,693,858 |
Profit for the year | - | - |
At 30 April 2024 | 15,059,541 |
20. | ULTIMATE PARENT COMPANY |
The company's immediate parent company is LCBSG Limited, whose registered office is Riverside House, Irwell Street, Manchester, M3 5EN. |
The smallest and largest group of which Leonard Curtis Recovery Limited is a member and for which consolidated financial statements are prepared is Project Hallelujah Bidco Limited. Copies of the consolidated accounts can be obtained from Companies House, Cardiff. |
The directors are of the opinion that there is no ultimate controlling party of Project Hallelujah Bidco Limited. |
21. | CONTINGENT LIABILITIES |
The company has entered into a cross guarantee with LCBSG Limited, Leonard Curtis Limited, Reach Commercial Finance Limited, Leonard Curtis Legal Limited, Leonard Curtis C.I. Limited and LC Debt Solutions Limited in respect of bank borrowings. At 30 April 2023 an amount of £412,474 was owed by group companies to the bank (2023: £nil). |
The company has guaranteed a lease entered into by Leonard Curtis Limited. The lease is for a period of ten years from 1 April 2016 and there is a break clause after five years. The annual rent is £206,500. |
22. | OTHER FINANCIAL COMMITMENTS |
The company operates a defined contribution scheme. During the year the company contributed £415,476 (2023: £374,548). |
Creditors include £33,087 (2023: £28,631) in respect of outstanding employer pension contributions at the year end. |
23. | 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. |
During the year the company purchased goods and services from the following companies in which one or more of the directors had a material interest. |
L C Risk Management Ltd |
Included as debtors falling due within one year is an amount of £91,110 (2023: £91,600) in respect of the net amount outstanding. During the year the company purchased services to the value of £30,000 (2023: £34,990) and sold services to the value of £12,000 (2023: £12,000). |