Registered number:
AUDITED
STRATEGIC REPORT, DIRECTOR'S REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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LEGALEASE LIMITED
COMPANY INFORMATION
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LEGALEASE LIMITED
CONTENTS
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LEGALEASE LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
The principal activity of the Group during the period was that of the provision of information services to the global legal market.
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).
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 performance for the group has been analysed are turnover and operating profit.
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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.
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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.
The profit for the year, after taxation, amounted to £8,481,244 (2023 - £5,299,461).
The director who served during the year was:
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.
There have been no significant events affecting the Group since the reporting date.
The auditors, Wellers, will 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.
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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 2006. He 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.
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LEGALEASE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEGALEASE LIMITED
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 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).
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.
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.
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LEGALEASE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEGALEASE LIMITED (CONTINUED)
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 Report. 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. 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.
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.
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.
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LEGALEASE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEGALEASE LIMITED (CONTINUED)
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.
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LEGALEASE LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF LEGALEASE LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in 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.
for and on behalf of
Accountants
Statutory Auditors
1 Vincent Square
SW1P 2PN
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LEGALEASE LIMITED
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 APRIL 2024
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LEGALEASE LIMITED
REGISTERED NUMBER: 02427356
CONSOLIDATED BALANCE SHEET
AS AT 30 APRIL 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 32 form part of these financial statements.
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LEGALEASE LIMITED
REGISTERED NUMBER: 02427356
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
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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:
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.
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LEGALEASE LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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
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:
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.
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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.
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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:
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.
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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.
Functional and presentation currency
Transactions and balances
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
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.
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2.Accounting policies (continued)
Goodwill
Other intangible assets
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.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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.
Analysis of turnover by country of destination:
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
12.Taxation (continued)
Future tax charges will be impacted by the release of unlrelieved losses, arising from the change in the company's revenue recognition policy.
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
16.Tangible fixed assets (continued)
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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.
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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.
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.
The ultimate controlling party is J M Pritchard by virtue of owning 100% of the issued share capital.
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LEGALEASE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
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