Caseware UK (AP4) 2023.0.135 2023.0.135 2024-04-302024-04-302024-04-302023-05-01falseNo description of principal activitytruefalsefalse 02427356 2023-05-01 2024-04-30 02427356 2024-04-30 02427356 2022-05-01 2023-04-30 02427356 2023-04-30 02427356 c:CompanySecretary1 2023-05-01 2024-04-30 02427356 c:Director1 2023-05-01 2024-04-30 02427356 c:RegisteredOffice 2023-05-01 2024-04-30 02427356 d:Buildings 2023-05-01 2024-04-30 02427356 d:Buildings 2024-04-30 02427356 d:Buildings 2023-04-30 02427356 d:Buildings d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 02427356 d:OfficeEquipment 2023-05-01 2024-04-30 02427356 d:OfficeEquipment 2024-04-30 02427356 d:OfficeEquipment 2023-04-30 02427356 d:OfficeEquipment d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 02427356 d:ComputerEquipment 2023-05-01 2024-04-30 02427356 d:ComputerEquipment 2024-04-30 02427356 d:ComputerEquipment 2023-04-30 02427356 d:ComputerEquipment d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 02427356 d:OwnedOrFreeholdAssets 2023-05-01 2024-04-30 02427356 d:Goodwill 2023-05-01 2024-04-30 02427356 d:CurrentFinancialInstruments 2024-04-30 02427356 d:CurrentFinancialInstruments 2023-04-30 02427356 d:CurrentFinancialInstruments d:WithinOneYear 2024-04-30 02427356 d:CurrentFinancialInstruments d:WithinOneYear 2023-04-30 02427356 d:ShareCapital 2024-04-30 02427356 d:ShareCapital 2023-04-30 02427356 d:RetainedEarningsAccumulatedLosses 2024-04-30 02427356 d:RetainedEarningsAccumulatedLosses 2023-04-30 02427356 d:RetainedEarningsAccumulatedLosses 2022-05-01 02427356 c:OrdinaryShareClass1 2023-05-01 2024-04-30 02427356 c:OrdinaryShareClass1 2024-04-30 02427356 c:OrdinaryShareClass1 2023-04-30 02427356 c:FRS102 2023-05-01 2024-04-30 02427356 c:Audited 2023-05-01 2024-04-30 02427356 c:FullAccounts 2023-05-01 2024-04-30 02427356 c:PrivateLimitedCompanyLtd 2023-05-01 2024-04-30 02427356 d:Subsidiary1 2023-05-01 2024-04-30 02427356 d:Subsidiary1 1 2023-05-01 2024-04-30 02427356 c:Consolidated 2024-04-30 02427356 c:ConsolidatedGroupCompanyAccounts 2023-05-01 2024-04-30 02427356 d:AcceleratedTaxDepreciationDeferredTax 2024-04-30 02427356 d:AcceleratedTaxDepreciationDeferredTax 2023-04-30 02427356 d:TaxLossesCarry-forwardsDeferredTax 2024-04-30 02427356 d:TaxLossesCarry-forwardsDeferredTax 2023-04-30 02427356 2 2023-05-01 2024-04-30 02427356 4 2023-05-01 2024-04-30 02427356 6 2023-05-01 2024-04-30 02427356 e:PoundSterling 2023-05-01 2024-04-30 xbrli:shares iso4217:GBP xbrli:pure
Registered number: 02427356


LEGALEASE LIMITED








AUDITED

STRATEGIC REPORT, DIRECTOR'S REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024

 
LEGALEASE LIMITED
 
 
COMPANY INFORMATION


Director
J M Pritchard 




Company secretary
W Pritchard



Registered number
02427356



Registered office
188 Fleet Street

London

EC4A 2HT




Independent auditors
Wellers
Accountants & Statutory Auditors

1 Vincent Square

London

SW1P 2PN





 
LEGALEASE LIMITED
 

CONTENTS



Page
Group strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditors' report
5 - 8
Consolidated statement of income and retained earnings
9
Consolidated balance sheet
10
Company balance sheet
11 - 12
Consolidated statement of cash flows
13
Notes to the financial statements
14 - 32


 
LEGALEASE LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024

Introduction
 
The principal activity of the Group during the period was that of the provision of information services to the global legal market. 

Business review
 
The Group principally operates in two distinct areas. The IAC is London’s premier dispute resolution service, utilising purpose-built suites to provide best-in-class services to the domestic and international mediation and arbitration community. Legal 500 is the market leader in the provision of information services to the global legal market. 
Highlights for year include significant investment in the Legal 500 digital platform, which enabled the group to continue to enhance its service offering.
The future development plans of the business show further investment in technology, product, sales and operations. The business expects to continue to deliver top-line year on year growth.
During 2024 Legalease changed accounting policy, to recognise revenue for subscription products on a straight-line basis over the period of the subscription rather than point-in-time. This change in revenue recognition better reflects the nature of the fully digital subscription service. This change in methodology has resulted in a restatement of the accounts for 2023 as described in note 22 of these financial statements. 
In the year to 30 April 2024, inclusive of the change in accounting policy, group turnover was £28.9m (2023 £25.7m). Group profit for the year, before taxation, amounted to £7.5m (2023 £6.9m).

Principal risks and uncertainties
 
Financial risk management objective policies
The group uses various financial instruments including; loans, foreign exchange contracts, cash and trade debtors and trade creditors arising directly from operations. The existence of these financial instruments exposes the company to a number of 'financial risks, the main one being credit risk, foreign exchange risk and liquidity risk.
Credit risk
The group has strong cash flow. Systematic collection efforts and an established subscriber base mitigates risk to an acceptable level.
Foreign exchange risk
The majority of the group's sales are to overseas clients. In 2022 and 2023 the group used foreign currency forward exchange contracts to limit exposure to significant charges in the US Dollar and Euro exchange rate. The directors are comfortable with the exchange rate risk.
Liquidity risk
The group seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs.

Financial key performance indicators
 
Financial performance for the group has been analysed are turnover and operating profit.

Page 1

 
LEGALEASE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024


This report was approved by the board and signed on its behalf.





................................................
J M Pritchard
Director
Date: 30 January 2025

Page 2

 
LEGALEASE LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2024

The director presents his report and the financial statements for the year ended 30 April 2024.

Results and dividends

The profit for the year, after taxation, amounted to £8,481,244 (2023 - £5,299,461).

Director

The director who served during the year was:

J M Pritchard 

Future developments

The company's year end 2024 results continued to show growth across all divisions in line with management expectations. 
All areas of the business are again expected to grow during year end 2025 as the investments made in technology, content and product continue to support strong growth. As a consequence of the continued strong performance, the company will have sufficient resources to continue trading for the foreseeable future.

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the reporting date.

Auditors

The auditorsWellerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
J M Pritchard
Director

Date: 30 January 2025

Page 3

 
LEGALEASE LIMITED
 
 
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:

select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group will continue in business.

The director is 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is 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.

Page 4

 
LEGALEASE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEGALEASE LIMITED
 

Opinion


We have audited the financial statements of Legalease Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 April 2024, which comprise the Consolidated statement of income and retained earnings, the Consolidated balance sheet, the Company balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policiesThe 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's 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 United Kingdom, including the Financial Reporting Council'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 director's 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 or 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 director with respect to going concern are described in the relevant sections of this report.


Page 5

 
LEGALEASE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEGALEASE LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Director's report have been prepared in accordance with applicable legal requirements.


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 Director's report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept 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 director's 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 Director's responsibilities statement set out on page 4, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the director is 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 director either intends to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
LEGALEASE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEGALEASE LIMITED (CONTINUED)


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 an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Discussions were  held  with  and  enquiries  made  of management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements.  During the  engagement  team  briefing,  the  outcomes  of  these  discussions  and  enquiries  were shared with the team, as well as consideration as to where and how fraud may occur in the entity. 
Those laws  and  regulations  considered  to  have  a  direct  impact  on  the  financial  statements  include  UK Financial Reporting Standards, Company Law, Finance Act, Employment laws and Pensions legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance  with  laws  and  regulations)  comprised  of:  enquiries  of  management  and  those  charged  with governance  as  to  whether  the  entity  complies  with  such  laws  and  regulations;  enquiries  with  the  same concerning  any  actual  or  potential  litigation  or  claims;  inspection  of  relevant  legal  correspondence;  testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions  around  the  end  of  the  reporting  period;  and  the  performance  of  analytical  procedures  to  identify unexpected movements in account balances which may be indicative of fraud.
No instances of  material  non-compliance  were  identified.  However,  the  likelihood  of  detecting  irregularities, including  fraud,  is  limited  by  the  inherent  difficulty  in  detecting  irregularities,  the  effectiveness  of  the  entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with lSAs (UK).


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' report.


Page 7

 
LEGALEASE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEGALEASE LIMITED (CONTINUED)


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 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Ross Andrews (Senior statutory auditor)
for and on behalf of
Wellers
Accountants
Statutory Auditors
1 Vincent Square
London
SW1P 2PN

30 January 2025
Page 8

 
LEGALEASE LIMITED
 
 
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 APRIL 2024

As restated
2024
2023
Note
£
£

  

Turnover
 4 
28,917,083
25,682,536

Cost of sales
  
(11,859,999)
(9,568,701)

Gross profit
  
17,057,084
16,113,835

Administrative expenses
  
(9,650,216)
(9,201,777)

Other operating income
 5 
75,030
-

Operating profit
 6 
7,481,898
6,912,058

Interest receivable and similar income
 10 
17,673
-

Interest payable and similar expenses
 11 
(480)
(159)

Profit before tax
  
7,499,091
6,911,899

Tax on profit
 12 
982,153
(1,612,438)

Profit after tax
  
8,481,244
5,299,461

Retained earnings
  

-  as previously stated
  
25,101,707
23,813,103

-  change in accounting policy
  
(13,456,211)
(12,017,068)

At the beginning of the year as restated
  
11,645,496
11,796,035

  

Profit for the year attributable to the owners of the parent
  
8,481,244
5,299,461

Dividends declared and paid
  
-
(5,450,000)

Retained earnings at the end of the year
  
20,126,740
11,645,496

  

The notes on pages 14 to 32 form part of these financial statements.

Page 9

 
LEGALEASE LIMITED
REGISTERED NUMBER: 02427356

CONSOLIDATED BALANCE SHEET
AS AT 30 APRIL 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 15 
1,325,219
109,052

Tangible assets
 16 
3,240,377
3,437,607

  
4,565,596
3,546,659

Current assets
  

Debtors: amounts falling due within one year
 18 
22,757,548
17,724,021

Cash at bank and in hand
 19 
11,445,603
10,755,175

  
34,203,151
28,479,196

Creditors: amounts falling due within one year
 20 
(18,641,907)
(20,224,731)

Net current assets
  
 
 
15,561,244
 
 
8,254,465

Total assets less current liabilities
  
20,126,840
11,801,124

Provisions for liabilities
  

Deferred taxation
 21 
-
(155,528)

  
 
 
-
 
 
(155,528)

Net assets
  
20,126,840
11,645,596


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account
  
20,126,740
11,645,496

  
20,126,840
11,645,596


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
J M Pritchard
Director

Date: 30 January 2025

The notes on pages 14 to 32 form part of these financial statements.

Page 10

 
LEGALEASE LIMITED
REGISTERED NUMBER: 02427356

COMPANY BALANCE SHEET
AS AT 30 APRIL 2024

As restated
2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 15 
1,231,746
-

Tangible assets
 16 
3,078,741
3,122,183

Investments
 17 
1
1

  
4,310,488
3,122,184

Current assets
  

Debtors: amounts falling due within one year
 18 
21,269,693
22,389,503

Cash at bank and in hand
 19 
9,920,257
9,698,705

  
31,189,950
32,088,208

Creditors: amounts falling due within one year
 20 
(17,553,149)
(19,729,516)

Net current assets
  
 
 
13,636,801
 
 
12,358,692

Total assets less current liabilities
  
17,947,289
15,480,876

  

Provisions for liabilities
  

Deferred taxation
 21 
-
(126,541)

  
 
 
-
 
 
(126,541)

Net assets
  
17,947,289
15,354,335


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account brought forward
  
15,354,237
13,814,696

Profit for the year
  
2,592,952
6,989,539

Dividends paid

  

-
(5,450,000)

Profit and loss account carried forward
  
17,947,189
15,354,235

  
17,947,289
15,354,335


Page 11

 
LEGALEASE LIMITED
REGISTERED NUMBER: 02427356
    
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 APRIL 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





................................................
J M Pritchard
Director
Date: 30 January 2025

The notes on pages 14 to 32 form part of these financial statements. 
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements.
The company's board and shareholders have the power to amend the financial statements after issue. 

Page 12

 
LEGALEASE LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024

As restated
2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
8,481,244
5,299,461

Adjustments for:

Amortisation of intangible assets
15,579
15,579

Depreciation of tangible assets
344,433
452,220

Loss on disposal of tangible assets
52,205
-

Interest paid
480
159

Interest received
(17,673)
-

Taxation charge
(982,153)
1,612,438

(Increase)/decrease in debtors
(3,043,843)
3,886,029

(Decrease)/increase in creditors
(1,084,889)
788,053

Corporation tax (paid)
(1,660,992)
(1,589,290)

Net cash generated from operating activities

2,104,391
10,464,649


Cash flows from investing activities

Purchase of intangible fixed assets
(1,231,746)
-

Purchase of tangible fixed assets
(199,410)
(239,782)

Interest received
17,673
-

Net cash from investing activities

(1,413,483)
(239,782)

Cash flows from financing activities

Dividends paid
-
(5,450,000)

Interest paid
(480)
(158)

Net cash used in financing activities
(480)
(5,450,158)

Net increase in cash and cash equivalents
690,428
4,774,709

Cash and cash equivalents at beginning of year
10,755,175
5,980,466

Cash and cash equivalents at the end of year
11,445,603
10,755,175


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
11,445,603
10,755,175

11,445,603
10,755,175


Page 13

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

1.


General information

Legalease Limited ("the company") is a private company limited by shares, incorporated in the United Kingdom under  the Companies Act.  The address  of  the registered office is given on the Company Information page and this is also the Group's principal place of business. The nature of the Group's operations and its principal activities are set out in the strategic report on pages 1-2.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 May 2016.

Page 14

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

In accordance with these principles, the Company recognises income as follows;
Digital Subscription revenues:
Subscription revenues are recognised evenly over the period to which the subscription relates.
Edition based digital subscriptions:
Edition Based revenue is recognised from the "go-live" month and is apportioned evenly over the  period the Edition is intended to be live.
Commissioned and Research reports:
Revenue from reports is recognised at the point of delivery of the report.
Publications:
Publication revenues are recognised at the date the publication is released.
Events revenues:
Event revenues are recognised at the point in time when the event takes place.

Page 15

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.4

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
Freehold property is not depreciated
Office equipment
-
33%
Straight-line method
Computer equipment
-
25%
Straight-line method

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.5

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.6

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 16

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.7

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from other third parties and loans to related parties. 

 
2.8

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.9

Foreign currency translation

Functional and presentation currency

The Group's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.11

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 17

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

  
2.12

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Income and Retained Earnings in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.13

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.14

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.15

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

Page 18

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

2.Accounting policies (continued)

 
2.16

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of income and retained earnings over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.17

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.18

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.19

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 19

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that effect the amounts reported for assets and liabilities as at the Balance Sheet date and the amounts reported for revenues and expenses during the year.  However, the nature of estimation means that actual outcomes could differ. 
Judgments applied in the course of preparing these financial statements include; 
 - those impacting the the depreciation policy of fixed assets, which are based on an estimated of expected useful life of the assets;
 - estimates in respect of staff hours attributable to the development costs, impacting on the value attributed to intangible additions;
 
 - judgments in respect of the Company's bad debt policy and recoverability of specific trade debts balances at year-end. The bad debts provision has a material effect on the valuation of trade debtors at the reporting date.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Provision of legal business information services
28,278,314
25,108,000

Arbitration
638,769
574,536

28,917,083
25,682,536


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
7,845,949
6,878,378

Rest of the world
21,071,134
18,804,158

28,917,083
25,682,536


Page 20

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

5.


Other operating income

2024
2023
£
£

Other operating income
75,030
-

75,030
-



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
(1,303,913)
(1,551,106)


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
70,000
65,000

Page 21

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

8.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
11,273,811
10,146,378
10,743,828
9,559,673

Social security costs
1,340,777
1,247,562
1,289,069
1,176,815

Cost of defined contribution scheme
194,535
157,884
186,402
150,773

12,809,123
11,551,824
12,219,299
10,887,261


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Production staff
135
118



Sales staff
65
47



Administrative staff
25
24

225
189


9.


Director's remuneration

2024
2023
£
£

Director's emoluments
240,000
240,000

240,000
240,000


The highest paid director received remuneration of £240,000 (2023 - £240,000).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £NIL).

Page 22

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

10.


Interest receivable

2024
2023
£
£


Other interest receivable
17,673
-

17,673
-


11.


Interest payable and similar expenses

2024
2023
£
£


Other loan interest payable
480
159

480
159


12.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
-
1,651,992

-
1,651,992


Deferred tax


Origination and reversal of timing differences
(982,153)
(39,554)

Total deferred tax
(982,153)
(39,554)


Taxation on (loss)/profit on ordinary activities
(982,153)
1,612,438
Page 23

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is the same as (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 25%. The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
7,499,091
6,911,899


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%%)
1,874,773
1,727,975

Effects of:


Non-tax deductible amortisation of goodwill and impairment
3,895
3,037

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
116,381
4,566

Capital allowances for year in excess of depreciation
(314,647)
16,507

Adjustments to tax charge in respect of prior periods
(3,364,053)
-

Deferred taxation
(982,153)
(39,553)

Unrelieved tax losses carried forward
1,683,651
-

Other differences leading to an increase (decrease) in the tax charge
-
(100,094)

Total tax charge for the year
(982,153)
1,612,438


Factors that may affect future tax charges

Future tax charges will be impacted by the release of unlrelieved losses, arising from the change in the company's revenue recognition policy.


13.


Dividends

2024
2023
£
£


Dividends paid for the year
-
5,450,000

-
5,450,000

Page 24

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

14.


Exceptional items

2024
2023
£
£


Write off of loan to subsidiary company
7,689,622
-

7,689,622
-


15.


Intangible assets

Group





Computer software
Goodwill
Total

£
£
£



Cost


At 1 May 2023
-
155,789
155,789


Additions - internal
1,231,746
-
1,231,746



At 30 April 2024

1,231,746
155,789
1,387,535



Amortisation


At 1 May 2023
-
46,737
46,737


Charge for the year on owned assets
-
15,579
15,579



At 30 April 2024

-
62,316
62,316



Net book value



At 30 April 2024
1,231,746
93,473
1,325,219



At 30 April 2023
-
109,052
109,052



Page 25

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

16.


Tangible fixed assets

Group






Freehold property
Office equipment
Computer equipment
Total

£
£
£
£



Cost or valuation


At 1 May 2023
2,892,746
636,637
1,243,576
4,772,959


Additions
-
2,382
197,028
199,410


Disposals
-
-
(52,205)
(52,205)



At 30 April 2024

2,892,746
639,019
1,388,399
4,920,164



Depreciation


At 1 May 2023
-
457,444
877,909
1,335,353


Charge for the year on owned assets
-
138,147
206,287
344,434



At 30 April 2024

-
595,591
1,084,196
1,679,787



Net book value



At 30 April 2024
2,892,746
43,428
304,203
3,240,377



At 30 April 2023
2,892,746
179,193
365,668
3,437,607




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold property
2,892,746
2,892,746

2,892,746
2,892,746


Page 26

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

           16.Tangible fixed assets (continued)


Company






Freehold property
Office equipment
Computer equipment
Total

£
£
£
£

Cost or valuation


At 1 May 2023
2,892,746
67,322
676,606
3,636,674


Additions
-
2,382
93,815
96,197


Disposals
-
-
(52,205)
(52,205)



At 30 April 2024

2,892,746
69,704
718,216
3,680,666



Depreciation


At 1 May 2023
-
63,177
451,314
514,491


Charge for the year on owned assets
-
3,295
84,139
87,434



At 30 April 2024

-
66,472
535,453
601,925



Net book value



At 30 April 2024
2,892,746
3,232
182,763
3,078,741



At 30 April 2023
2,892,746
4,145
225,292
3,122,183






Page 27

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

17.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 May 2023
1



At 30 April 2024
1




Details of the subsidiary are disclosed in note 27 to these financial statements.


18.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
6,911,404
6,376,538
6,718,217
6,152,484

Amounts owed by group undertakings
-
-
-
5,937,363

Other debtors
12,605,961
9,332,629
12,605,961
9,332,628

Prepayments and accrued income
2,413,558
2,014,854
1,119,925
967,028

Deferred taxation
826,625
-
825,590
-

22,757,548
17,724,021
21,269,693
22,389,503


Included within other debtors due within one year is a loan to J M Pritchard, a director, amounting to £2,797,543 (2023 - -£2,732,843). The loan was subject to interest at the official rate and is not subject to fixed repayment terms.




19.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
11,445,603
10,755,175
9,920,257
9,698,705

11,445,603
10,755,175
9,920,257
9,698,705


Page 28

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Trade creditors
1,156,828
319,709
290,922
191,908

Corporation tax
-
485,448
-
485,448

Other taxation and social security
598,350
461,024
546,774
412,242

Other creditors
690,605
3,327,751
667,574
3,327,751

Accruals and deferred income
16,196,124
15,630,799
16,047,879
15,312,167

18,641,907
20,224,731
17,553,149
19,729,516


Page 29

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

21.


Deferred taxation


Group



2024


£






At beginning of year
(155,528)


Charged to profit or loss
982,153



At end of year
826,625

Company


2024


£






At beginning of year
(126,541)


Charged to profit or loss
952,131



At end of year
825,590

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
(432,912)
(155,528)
(433,947)
(126,541)

Tax losses carried forward
1,259,537
-
1,259,537
-

826,625
(155,528)
825,590
(126,541)


22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.00 each
100
100


Page 30

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

23.


Prior year adjustment

During the year, the company changed its accounting policy for revenue. The change was made to move the recognition for subscription products as subscriptions rather than point in time revenue to better reflect the nature of these fully digital products, delivered over a 12 month period. Work In Progress provisions, relating to costs for future publications, have also been removed, in order that overheads are recognised as incurred.
 
For the prior period, the impact of the change in methodology is to reduce reported Revenues by £928,470 and increase Cost of Sales £510,673. Profits After Tax and Net Shareholder Funds also reduced by £1,439,143.
 
Closing Deferred Income was increased to £11,505,687 and Work in Progress reduced to £Nil from £1,950,524. In consequence, closing Shareholders Funds were reduced to £13,456,211, of which £12,017,068 related to a reduction in opening reserves brought forward from 2022.
The corresponding prior period Cash Flow Statement figures relating to Deferred income and Work In Progress have also been amended.


24.


Pension commitments

The Group contributes to a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £186,402 (2023: £150,773). Contributions totaling £42,007 (2023 : £34,680) were payable to the fund at the balance sheet date.


25.


Related party transactions

International Arbitration Centre is a wholly owned subsidiary of Legalease Limited. In accordance with the provisions of FRS102, transactions between a parent and wholly owned subsidiary are not disclosed. 
Other related party transactions are summarised as follows: 


2024
2023
£
£

Rent paid to companies under common control of the director, J M Pritchard
1,650,000
798,744
Amount due from companies under common control
8,280,408
8,978,262
Amount due (to)/from J M Pritchard
2,797,543
(2,732,843)
Donation made to John Pritchard Trust
400,000
-
13,127,951
7,044,163



26.


Controlling party

The ultimate controlling party is J M Pritchard by virtue of owning 100% of the issued share capital. 

Page 31

 
LEGALEASE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

27.



Subsidiary undertaking



Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

International Arbitration Centre Ltd
190 Fleet Street, London, United Kingdom, EC4A 2AG
Ordinary
100%

The aggregate of the share capital and reserves as at 30 April 2024 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

International Arbitration Centre Ltd
2,086,078
5,903,871

 
Page 32