Company registration number 13816992 (England and Wales)
MRF LEGAL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
MRF LEGAL LIMITED
COMPANY INFORMATION
Directors
Mr M J Foxford
Ms C L MacCracken
Mr A C Rattray
Company number
13816992
Registered office
5 Cambridge Road
Hale
Altrincham
WA15 9SY
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
MRF LEGAL LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
6
Directors' responsibilities statement
5
Independent auditor's report
7 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12 - 13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 35
MRF LEGAL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present their strategic report of MRF Legal Limited (‘the Company’) and its subsidiaries (together ‘the Group’) for the year ended 30 April 2024.

Review of the Business

Principal Activities

The Company is the parent company of BB Legal Limited trading as Birchall Blackburn Law and Aldsol Limited trading as Alderstone Solicitors. The principal activity of the two trading subsidiaries is the provision of regulated legal services to consumers. The services provided by Birchall Blackburn Law include conveyancing, commercial property, equity release, matrimonial and family law, wills, trusts, probate, and court representation. The services provided by Alderstone Solicitors include claims relating to serious personal injury, asbestos, mesothelioma and industrial diseases, clinical and professional negligence.

Vision for the Future

The Group’s forward strategy is built on the solid foundation of our legacy while dynamically embracing the evolving legal services landscape. Our focus is to provide exceptional service, uphold the highest quality standards, and attract and retain clients by investing significantly in our people and cutting-edge technologies. With a commitment to efficient and data-driven planning, we aim to enhance our strengths, foster growth, and sustain our leadership in the market.

Diverse Services and Innovative Delivery

The trading subsidiary companies in the Group offer a comprehensive range of legal services. The Group’s commitment to continuous improvement and innovation keeps us at the forefront of industry trends. By integrating advanced digital and electronic methods, we deliver highly personalised legal services of the highest quality. We adapt to the evolving market with structural changes that enhance efficiency and reduce unnecessary administration, ensuring we exceed our clients' and stakeholders' expectations.

Alderstone Solicitors’ board of directors is satisfied with the route to market for personal injury work, which focuses on third-sector networking and securing legal panel status. Alderstone Solicitors has working relationships with a number of high-profile charities and is one of a handful of law firms providing legal support to three major road crash victim charities (Brake, RoadPeace and Aftermath Support). Alderstone Solicitors also directly supports case workers for the Brain Charity based in two major North West hospitals. Alderstone Solicitors continues to target high value serious and catastrophic compensation cases, which is where our experience and expertise lies.

Navigating the Competitive Market

Our focus is delivering reliable and accessible legal representation in the competitive UK legal market. We proactively address challenges, such as the volatility of the residential conveyancing market, and changes in government policy, demonstrating our resilience and commitment to our clients. Understanding the significance of cost sensitivity in our clients’ decision-making process, we provide high-quality, accessible, and affordable services. This approach reinforces our market position and fosters client engagement and retention.

MRF LEGAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Fair review of the Business continued

Client-Centric Focus

Our client strategy is rooted in exceptional service and unwavering dedication to our clients. The "Always There" tagline utilised within Birchall Blackburn Law embodies our commitment to supporting clients throughout their legal journeys.

We value highly client feedback, which drives continuous improvement in our services. Our client service teams provide support and enhance our services based on valuable customer feedback, earning us prestigious awards and commendations. By leveraging innovative processes and technologies, we ensure seamless communication and superior service, aiming to build lifelong relationships with our clients through a comprehensive portfolio of services.

Investing in Our People

Our people are the cornerstone of the Group’s success. We are dedicated to nurturing their growth, honing their skills, and making their expertise readily available to our clients. With an inclusive, respectful, and diverse working environment, we inspire our teams to excel. Our commitment to employee development includes customised training programs, attractive compensation and benefits, and promoting a healthy work-life balance. By supporting personal and professional growth, we empower our workforce to remain motivated and committed, driving the Group’s success.

 

Embracing Technology

 

Enhancing our organisational agility through IT advancements is at the heart of our service delivery model. We have significantly improved our core systems and incorporated cutting-edge technologies to refine the accessibility and efficiency of our services. These IT advancements are driven by our commitment to providing an unparalleled client experience, cementing our position as leaders in innovation and client service within the legal industry.

 

Community Engagement

 

With offices across the Northwest, Birchall Blackburn Law sees building solid relationships with local communities as integral to our culture. Our "Always There" promise extends to supporting local charities through fundraising, volunteering, and event sponsorship. Birchall Blackburn Law's engagement goes beyond financial contributions; our solicitors provide legal advice to local communities, work with charitable trusts, and support local schools and colleges during Career and Future Learning Fairs. Our partnership with the sight loss charity Galloway’s Society for the Blind has allowed us to share regional offices and reduce facility expenses. Annually, we select a local charity to make a meaningful impact on people's lives.

 

Alderstone Solicitors’ work with charities and in the community is similarly extensive. Staff are encouraged to take part in a variety of charity events and fundraising throughout the year. We also raise awareness of charities and their campaigns through our social media channels. Two members of staff are Committee members and a Trustee for the Critical Care Support Network (CCSN); we fundraise every November for National Road Safety Week; we take part in Hats for Headway; highlight Action for Brain Injury (ABI) Week for The Brain Charity and have sponsored the charity’s poetry competition; sponsored runs for Maggie’s Merseyside and Cerebra; directly support regional conferences on reducing road deaths with Brake; support the End of Life Partnership and the Specialist Palliative Care Education Partnership; we provide free handheld fans and information leaflets to clinical lung disease units; and our NAH helpline and website is a free resource for anyone impacted by asbestos. These are just a few examples of the help Alderstone Solicitors provide to the third sector and we are also committed to pro-bono work with our charity partners by supporting families at inquests, criminal proceedings, and advising on benefits.

MRF LEGAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -
Fair review of the Business continued

Recognitions and Reviews

 

We are proud of our Law Society accreditations and recognition from various trade bodies. Despite significant competition, Birchall Blackburn Law has been honoured with multiple awards, including commendations at the Modern Law Conveyancing and British Conveyancing Awards.

 

Alderstone Solicitors’ Manchester Personal Injury office is an Accredited Practice with the Association of Personal Injury Lawyers (APIL). This means that we are an office open to the public, where you can consult with an accredited lawyer and all legal work is undertaken by individuals working to recognised APIL standards of competence and quality. Alderstone Solicitors is also a signatory to the Personal Injury Guide. The APIL/FOIL Guide to the Conduct of Cases Involving Serious Injury was developed with the objective of parties working together, allocating tasks, and narrowing the issues throughout the claim, for the benefit of clients.

 

Both Birchall Blackburn Law and Alderstone Solicitors consistently receive high ratings on most major review websites, and the high ratings are a testament to our colleagues' hard work and dedication in all areas of the Group’s business.

 

Confident Future

 

The Group’s future is bright. Our adaptable and forward-thinking practices will ensure our success despite market competition and economic uncertainty. We remain steadfast in our direction and strategy, confident in our ability to thrive and continue providing exceptional legal services.

Analysis based on Key Performance Indicators

The Board and management continue to monitor and report on top-line turnover and "adjusted EBITDA." Adjusted EBITDA is defined as profits before interest payable, taxation, depreciation, and amortisation. This measure excludes interest received from the traditional EBITDA definition because this part of income does not correlate directly with business performance or funding.

 

Considering the impact of the business split in 2022 and the volatility within the residential property market in the financial year, the Board is pleased with the current year's turnover and adjusted EBITDA figures for the current and previous 4 years.

 

Turnover – fees billed

2024 - £13,143,333

2023 - £14,209,166

2022 - £13,969,956

2021 - £12,051,073

2020 - £13,940,507

 

Adjusted EBITDA

2024 - £1,902,639

2023 - £1,722,841

2022 - £2,709,187

2021 - £2,010,790

2020 - £1,391,148

 

 

MRF LEGAL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
Description of Principal Risks and Uncertainties

The Board is fully aware of the potential risks associated with its current strategy and has taken proactive measures to implement governance practices that can effectively mitigate these risks. The Board is committed to ensuring that all risks are thoroughly assessed and addressed promptly and efficiently without compromising its objectives. The identified key risks are monitored closely, and the board remains vigilant in maintaining a safe and sustainable operational environment.

 

Financial Management Risks

 

The Group's operations expose it to various financial risks, including changes in debt market prices, credit risk, liquidity risk, cash flow risk, and interest rate risk.

The Group's primary financial instruments include bank loans, overdrafts, accounts receivable, and accounts payable. Liquidity risks are actively managed through strategic short-term borrowing to finance operations, maintain stability, and improve cash flow, ensuring continuity of funding. All cash balances are held in ways that achieve competitive interest rates, and cash flow projections are utilised to manage plans and developments.

A robust risk management framework is in place to minimise the negative impact on financial performance. While the Group does not use derivative financial instruments to manage interest rate costs or apply hedge accounting, the Board has delegated the responsibility of monitoring financial risk management to the directors of each trading subsidiary company. The finance department of each trading subsidiary company implements the policies set by the board of directors of that subsidiary company.

 

Competition

 

The Group remains acutely aware of competitive pressures and continuously works to enhance its products and services. Through regular evaluation and active marketing efforts, it strives to stay at the forefront of the industry and provide the best possible experience for its customers.

 

Employee Risks

 

The Group values its employees highly, supporting their success through training, rewards, and promoting positive behaviours. The Group continues to evolve, adopting a more flexible and streamlined structure to meet future demand effectively.

 

Economic Risks

 

The Board acknowledges the risks associated with the current economic climate and constantly assesses the situation. The business regularly evaluates the demand for its key legal services to effectively adapt to changing economic conditions.

On behalf of the board

Mr M J Foxford
Director
30 January 2025
MRF LEGAL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MRF LEGAL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 6 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company and group continued to be that of provision of legal services.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £695,177. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr M J Foxford
Ms C L MacCracken
Mr A C Rattray
Auditor

MHA were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Strategic report

The truegroup has chosen, in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of financial risk management objectives and policies, and future developments.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr M J Foxford
Ms C L MacCracken
Director
Director
Mr A C Rattray
Director
30 January 2025
2025-01-30
MRF LEGAL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MRF LEGAL LIMITED
- 7 -
Opinion

We have audited the financial statements of MRF Legal Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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.

MRF LEGAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MRF LEGAL LIMITED
- 8 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

In the light of the knowledge and understanding of the group and parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

Matters on which we are required to report by exception

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor 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 auditor's 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 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:

MRF LEGAL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MRF LEGAL LIMITED
- 9 -

Because of the field in which the client operates, we identified the following areas as those most likely to have an impact on the financial statements: SRA compliance, employment law and compliance with the UK Companies Act.

Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's 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.

Karen Hain BA FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
30 January 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
MRF LEGAL LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
13,143,333
14,209,166
Administrative expenses
(12,275,428)
(12,845,176)
Other operating income
82,841
-
Operating profit
4
950,746
1,363,990
Interest receivable and similar income
8
909,975
317,515
Interest payable and similar expenses
9
(438,152)
(231,075)
Profit before taxation
1,422,569
1,450,430
Tax on profit
10
(367,100)
(315,616)
Profit for the financial year
24
1,055,469
1,134,814
Profit for the financial year is all attributable to the owners of the parent company.
MRF LEGAL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
2024
2023
£
£
Profit for the year
1,055,469
1,134,814
Other comprehensive income
-
-
Total comprehensive income for the year
1,055,469
1,134,814
Total comprehensive income for the year is all attributable to the owners of the parent company.
MRF LEGAL LIMITED
GROUP BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
220,652
191,763
Current assets
Debtors
16
8,296,043
8,425,402
Cash at bank and in hand
770,427
494,331
9,066,470
8,919,733
Creditors: amounts falling due within one year
17
(4,532,688)
(4,165,931)
Net current assets
4,533,782
4,753,802
Total assets less current liabilities
4,754,434
4,945,565
Creditors: amounts falling due after more than one year
18
(1,083,427)
(1,544,560)
Provisions for liabilities
Provisions
20
50,000
154,408
Deferred tax liability
21
39,456
25,338
(89,456)
(179,746)
Net assets
3,581,551
3,221,259
Capital and reserves
Called up share capital
23
8,000,000
8,000,000
Other reserves
24
(7,998,100)
(7,998,100)
Profit and loss reserves
24
3,579,651
3,219,359
Total equity
3,581,551
3,221,259

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

MRF LEGAL LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
30 APRIL 2024
30 April 2024
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 30 January 2025 and are signed on its behalf by:
30 January 2025
Mr M J Foxford
Ms C L MacCracken
Director
Director
Mr A C Rattray
Director
Company registration number 13816992 (England and Wales)
MRF LEGAL LIMITED
COMPANY BALANCE SHEET
AS AT 30 APRIL 2024
30 April 2024
- 14 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
15
8,000,100
8,000,100
Current assets
-
-
Creditors: amounts falling due within one year
17
(100)
(100)
Net current liabilities
(100)
(100)
Net assets
8,000,000
8,000,000
Capital and reserves
Called up share capital
23
8,000,000
8,000,000

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £695,177 (2023 - £510,507 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 30 January 2025 and are signed on its behalf by:
30 January 2025
Mr M J Foxford
Ms C L MacCracken
Director
Director
Mr A C Rattray
Director
Company registration number 13816992 (England and Wales)
MRF LEGAL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 15 -
Share capital
Capital redemption reserve
Merger reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 May 2022
1,440
560
-
2,595,052
2,597,052
Year ended 30 April 2023:
Profit and total comprehensive income
-
-
-
1,134,814
1,134,814
Issue of share capital
23
7,998,560
-
-
-
7,998,560
Dividends
11
-
-
-
(510,507)
(510,507)
Reduction of shares
23
(1,440)
-
-
-
(1,440)
Merger Reserve
-
-
(7,998,100)
-
(7,998,100)
Group reorganisation
1,440
(560)
-
-
880
Balance at 30 April 2023
8,000,000
-
0
(7,998,100)
3,219,359
3,221,259
Year ended 30 April 2024:
Profit and total comprehensive income
-
-
-
1,055,469
1,055,469
Dividends
11
-
-
-
(695,177)
(695,177)
Balance at 30 April 2024
8,000,000
-
0
(7,998,100)
3,579,651
3,581,551
MRF LEGAL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 16 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2022
-
0
-
0
-
Year ended 30 April 2023:
Profit and total comprehensive income for the year
-
510,507
510,507
Issue of share capital
23
8,000,000
-
8,000,000
Dividends
11
-
(510,507)
(510,507)
Balance at 30 April 2023
8,000,000
-
0
8,000,000
Year ended 30 April 2024:
Profit and total comprehensive income
-
695,177
695,177
Dividends
11
-
(695,177)
(695,177)
Balance at 30 April 2024
8,000,000
-
0
8,000,000
MRF LEGAL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 APRIL 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,846,562
853,660
Interest paid
(438,152)
(231,075)
Income taxes paid
(491,319)
(457,064)
Net cash inflow from operating activities
917,091
165,521
Investing activities
Purchase of tangible fixed assets
(70,807)
(24,088)
Proceeds from disposal of tangible fixed assets
-
576
Interest received
909,975
317,515
Net cash generated from investing activities
839,168
294,003
Financing activities
Issue of preference shares
-
355,000
Repayment of preference shares
-
(400,000)
Proceeds from borrowings
953,643
914,399
Repayment of borrowings
(1,277,496)
-
Proceeds from new bank loans
126,492
-
Repayment of bank loans
(587,625)
(453,153)
Dividends paid to equity shareholders
(695,177)
(510,507)
Net cash used in financing activities
(1,480,163)
(94,261)
Net increase in cash and cash equivalents
276,096
365,263
Cash and cash equivalents at beginning of year
494,331
129,068
Cash and cash equivalents at end of year
770,427
494,331
MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
- 18 -
1
Accounting policies
Company information

MRF Legal Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 5 Cambridge Road, Hale, Altrincham, WA15 9SY.

 

The group consists of MRF Legal Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

The company was incorporated on 24 December 2021 and acquired BB Legal Limited and Aldsol Limited on 9 September 2022. BB Legal Limited entered into an asset transfer agreement dated 30 September 2022 with Aldsol Limited. As of this date BB Legal Limited transferred its PI and Asbestos department to Aldsol Limited. The introduction of a new holding company and transfer of trade to a dormant subsidiary constituted a group reconstruction and therefore merger accounting principles were applied.

MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 19 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company MRF Legal Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 April 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Revenue for services represents the fair value of legal services provided during the year on client assignments. Fair value reflects the amount expected to be recoverable from clients and is based on time spent, expertise and skills provided, and expenses incurred. Fee income is stated net of Value Added Tax.

Legal services provided to clients during the year which, at the balance sheet date, have not been invoiced to clients, have been recognised as fee income in accordance with Section 23 Revenue of Financial Reporting Standard 102. Fee income can be recognised on a number of bases. Some fee income is recognised on an assessment of the fair value of services provided by the balance sheet date as a proportion of the total value of the engagement. Some fee income, where the services includes an indeterminate number of acts occurring, recognises revenue over the life of the service provided on a straight-line basis.

 

Unbilled fee income is included as stated at fair value where the right to consideration has been obtained. Provision is made against unbilled amounts on those engagements where the right to receive payments is contingent on other factors outside the control of the group. Contingent fee income (over and above any agreed minimum fee which is recognised as above) is recognised in the period in which the contingent event occurs.

MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 20 -
1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which the directors re-assessed to be 5 years from 1 May 2015 due to the changes of the service offering of the firm.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
20% reducing balance
Fixtures and fittings
20% reducing balance
Computer equipment
20% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 21 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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

Basic financial assets, which include debtors 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 unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 22 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 23 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

 

 

 

1.17
Leases
MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
1
Accounting policies
(Continued)
- 24 -

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Unbilled revenue

The valuation of unbilled revenue involves significant judgement and affects the amount of revenue recognised. The valuation is based on an estimate of the amount expected to be recoverable from clients on unbilled items based on such factors as time spent multiplied by average recovery rates, percentage completion at the reporting date multiplied by the fixed fee and expertise provided. For PI matters, where the fee arrangement is on a no win no fee basis, only matters where either damages have been received, an offer has been made or full admission has occurred are included. The directors review historical trends to ensure that the method for accounting for the amounts recoverable on contracts is the most accurate for each department.

Goodwill

The useful life of the goodwill involves significant judgement and affects the carrying amount of intangible assets recognised. The assessment is based on factors included in note 1.4.

Bad and doubtful debts

At each balance sheet date, management undertake an assessment of the recoverability of trade debtors and unbilled disbursements based upon their knowledge of the customers, ageing of the balances outstanding and previous write off history. Where necessary, an impairment is recorded as a doubtful debt.

 

The actual level of debt collected may differ from the estimated level of recovery.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Fee income
13,143,333
14,209,166
MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
3
Turnover and other revenue
(Continued)
- 25 -
2024
2023
£
£
Other revenue
Interest income
909,975
317,515
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
41,918
41,912
Profit on disposal of tangible fixed assets
-
(576)
Operating lease charges
417,495
230,379
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,400
4,000
Audit of the financial statements of the company's subsidiaries
33,200
26,250
37,600
30,250
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
3
3
3
3
Fee earners
138
146
-
-
Support staff
45
75
-
-
Total
186
224
3
3
MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
6
Employees
(Continued)
- 26 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,686,051
7,104,352
-
0
-
0
Social security costs
644,430
563,418
-
-
Pension costs
278,234
274,163
-
0
-
0
7,608,715
7,941,933
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
346,176
359,330
Company pension contributions to defined contribution schemes
5,350
5,418
351,526
364,748
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
145,528
157,593
Company pension contributions to defined contribution schemes
5,350
5,418
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
909,975
317,515
MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 27 -
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
229,686
116,097
Dividends on redeemable preference shares not classified as equity
46,675
37,737
Other interest on financial liabilities
21,619
-
Interest on finance leases and hire purchase contracts
15,370
-
Other interest
124,802
77,241
Total finance costs
438,152
231,075
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
353,082
288,249
Adjustments in respect of prior periods
1,143
-
0
Total current tax
354,225
288,249
Deferred tax
Origination and reversal of timing differences
12,875
27,367
Total tax charge
367,100
315,616

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,422,569
1,450,430
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.68%)
355,642
285,400
Tax effect of expenses that are not deductible in determining taxable profit
10,151
24,237
Adjustments in respect of prior years
1,307
129
Depreciation on assets not qualifying for tax allowances
-
0
1,194
Superdeduction enhanced relief
-
0
(1,291)
Change in CT rates
-
5,947
Taxation charge
367,100
315,616
MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
10
Taxation
(Continued)
- 28 -

From 1 April 2023 the government have enacted changes to the corporation tax rate, increasing the main tax rate to 25% for companies with augmented profits greater than £250,000. For companies with augmented profits between £50,000 and £250,000 the tax due is calculated at 25% but tapered down using a marginal relief calculation.

11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
695,177
510,507
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 May 2023 and 30 April 2024
5,454,331
Amortisation and impairment
At 1 May 2023 and 30 April 2024
5,454,331
Carrying amount
At 30 April 2024
-
0
At 30 April 2023
-
0
The company had no intangible fixed assets at 30 April 2024 or 30 April 2023.
MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 29 -
13
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 May 2023
46,503
4,659
909,877
961,039
Additions
-
0
-
0
70,807
70,807
At 30 April 2024
46,503
4,659
980,684
1,031,846
Depreciation and impairment
At 1 May 2023
36,359
4,652
728,265
769,276
Depreciation charged in the year
2,535
-
0
39,383
41,918
At 30 April 2024
38,894
4,652
767,648
811,194
Carrying amount
At 30 April 2024
7,609
7
213,036
220,652
At 30 April 2023
10,144
7
181,612
191,763
The company had no tangible fixed assets at 30 April 2024 or 30 April 2023.
14
Subsidiaries

Details of the company's subsidiaries at 30 April 2024 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
BB Legal Limited
1
Ordinary Shares
100.00
-
Aldsol Limited
2
Ordinary Shares
100.00
-
Accident Angels Ltd
1
Ordinary Shares
-
100.00
Birchall Blackburn Limited
1
Ordinary Shares
-
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Merchant House, 38-46 Avenham Street, Preston, Lancashire, England, PR1 3BN
2
1 Lowry Plaza, The Quays, Salford, England, M50 3UB
15
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
8,000,100
8,000,100
MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
15
Fixed asset investments
(Continued)
- 30 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 May 2023 and 30 April 2024
8,000,100
Carrying amount
At 30 April 2024
8,000,100
At 30 April 2023
8,000,100
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,422,259
1,221,821
-
0
-
0
Gross amounts owed by contract customers
6,425,948
6,784,444
-
0
-
0
Corporation tax recoverable
27,605
-
0
-
0
-
0
Other debtors
30,035
78,071
-
0
-
0
Prepayments and accrued income
385,360
337,473
-
0
-
0
8,291,207
8,421,809
-
-
Deferred tax asset (note 21)
4,836
3,593
-
0
-
0
8,296,043
8,425,402
-
-
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
511,200
511,200
-
0
-
0
Other borrowings
19
590,546
914,399
-
0
-
0
Trade creditors
674,528
258,370
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
100
100
Corporation tax payable
193,623
303,112
-
0
-
0
Other taxation and social security
632,622
474,533
-
-
Other creditors
1,189,293
1,229,468
-
0
-
0
Accruals and deferred income
740,876
474,849
-
0
-
0
4,532,688
4,165,931
100
100
MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 31 -
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
728,427
1,189,560
-
0
-
0
Other borrowings
19
355,000
355,000
-
0
-
0
1,083,427
1,544,560
-
-
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
1,239,627
1,700,760
-
0
-
0
Preference shares
355,000
355,000
-
0
-
0
Other loans
590,546
914,399
-
0
-
0
2,185,173
2,970,159
-
-
Payable within one year
1,101,746
1,425,599
-
0
-
0
Payable after one year
1,083,427
1,544,560
-
0
-
0

Of the above bank loans, £1,239,627 (2023: £1,700,760) is secured 80% by the government and is also secured by a personal guarantee of £500,000 dated 2 July 2020 from directors of the company.

 

There is also a debenture held with the Bank that takes a first charge over all assets and undertakings of the business.

20
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Indemnity provision
50,000
154,408
-
-
MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
20
Provisions for liabilities
(Continued)
- 32 -
Movements on provisions:
Indemnity provision
Group
£
At 1 May 2023
154,408
Reversal of provision
(104,408)
At 30 April 2024
50,000
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
39,456
28,961
-
-
Short term timing differences
-
(3,623)
4,836
3,593
39,456
25,338
4,836
3,593
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 May 2023
21,745
-
Charge to profit or loss
12,875
-
Liability at 30 April 2024
34,620
-

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period. The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 33 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
278,234
274,163

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
8,000,000
8,000,000
8,000,000
8,000,000
24
Reserves
Merger reserve

MRF Legal Limited issued shares with a nominal value of £8,000,000 which were used to acquire subsidiaries with investments and capital of £1,900 leaving a consolidated debit balance on the merger reserve of £7,998,100.

25
Financial commitments, guarantees and contingent liabilities

Group

The group has entered into a cross company guarantee in respect of bank borrowings, with each group company acting as a guarantor for fellow group companies.

 

 

MRF Legal Limited

 

MRF Legal has entered into a cross company guarantee in respect of the bank borrowings with its subsidiaries. At the year end there is a potential liability of £nil.

MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 34 -
26
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
276,945
325,595
-
-
Between two and five years
348,229
582,641
-
-
In over five years
3,505
-
-
-
628,679
908,236
-
-

Group

BB Legal Limited has provided an unlimited guarantee in respect of the operating leases of Aldsol Limited. At the year end there is a potential liability of £32,321,

 

 

27
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
778,153
533,029
Transactions with related parties

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2023
£
£
Group
Key management personnel
1,021,441
1,067,109
MRF LEGAL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
27
Related party transactions
(Continued)
- 35 -
Other information

The company has taken advantage of the exemption permitted under Section 33 'Related Party Disclosures' paragraph 33.1A from disclosing transactions with the subsidiary companies.

 

During the year BB Legal Limited entered into the following transactions with related parties:

 

Birchall Blackburn Limited and Accident Angels Limited are wholly owned dormant subsidiaries of BB Legal Limited. No transactions took place with either company during the year.

 

Rent of £21,271 (2023: £21,271 ) was paid into directors SIPPs in the year.

28
Directors' transactions

Dividends totalling £579,617 (2023 - £461,340) were paid in the year in respect of shares held by the company's directors.

29
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
1,055,469
1,134,814
Adjustments for:
Taxation charged
367,100
315,616
Finance costs
438,152
231,075
Investment income
(909,975)
(317,515)
Gain on disposal of tangible fixed assets
-
(576)
Depreciation and impairment of tangible fixed assets
41,918
41,912
Decrease in provisions
(104,408)
-
Movements in working capital:
Decrease in debtors
158,207
86,586
Increase/(decrease) in creditors
800,099
(638,252)
Cash generated from operations
1,846,562
853,660
30
Analysis of changes in net debt - group
1 May 2023
Cash flows
30 April 2024
£
£
£
Cash at bank and in hand
494,331
276,096
770,427
Borrowings excluding overdrafts
(2,970,159)
784,986
(2,185,173)
(2,475,828)
1,061,082
(1,414,746)
2024-04-302023-05-01falsefalseCCH SoftwareCCH Accounts Production 2024.301Mr M J FoxfordMs C L MacCrackenMr A C Rattrayfalse13816992bus:Consolidated2023-05-012024-04-30138169922023-05-012024-04-3013816992bus:Director12023-05-012024-04-3013816992bus:Director22023-05-012024-04-3013816992bus:Director32023-05-012024-04-3013816992bus:RegisteredOffice2023-05-012024-04-30138169922024-04-3013816992bus:Consolidated2024-04-3013816992bus:Consolidated2022-05-012023-04-30138169922022-05-012023-04-3013816992bus:Consolidated2023-04-3013816992core:LeaseholdImprovementsbus:Consolidated2024-04-3013816992core:FurnitureFittingsbus:Consolidated2024-04-3013816992core:ComputerEquipmentbus:Consolidated2024-04-3013816992core:LeaseholdImprovementsbus:Consolidated2023-04-3013816992core:FurnitureFittingsbus:Consolidated2023-04-3013816992core:ComputerEquipmentbus:Consolidated2023-04-3013816992core:ShareCapitalbus:Consolidated2024-04-3013816992core:ShareCapitalbus:Consolidated2023-04-3013816992core:OtherMiscellaneousReservebus:Consolidated2024-04-3013816992core:OtherMiscellaneousReservebus:Consolidated2023-04-3013816992core:ShareCapital2024-04-3013816992core:ShareCapital2023-04-3013816992core:ShareCapitalbus:Consolidated2022-04-3013816992core:CapitalRedemptionReservebus:Consolidated2022-04-30138169922022-04-3013816992core:CapitalRedemptionReservebus:Consolidated2023-04-3013816992core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-04-3013816992core:CapitalRedemptionReservebus:Consolidated2024-04-3013816992core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-04-3013816992core:ShareCapital2022-04-3013816992core:RetainedEarningsAccumulatedLosses2022-04-3013816992core:RetainedEarningsAccumulatedLosses2023-04-3013816992core:RetainedEarningsAccumulatedLosses2024-04-30138169922023-04-3013816992core:ShareCapitalbus:Consolidated2022-05-012023-04-3013816992core:ShareCapital2022-05-012023-04-3013816992bus:Consolidated2022-04-3013816992core:Goodwill2023-05-012024-04-3013816992core:LeaseholdImprovements2023-05-012024-04-3013816992core:FurnitureFittings2023-05-012024-04-3013816992core:ComputerEquipment2023-05-012024-04-3013816992core:UKTaxbus:Consolidated2023-05-012024-04-3013816992core:UKTaxbus:Consolidated2022-05-012023-04-3013816992bus:Consolidated12023-05-012024-04-3013816992bus:Consolidated12022-05-012023-04-3013816992core:Goodwillbus:Consolidated2023-04-3013816992core:Goodwillbus:Consolidated2024-04-3013816992core:Goodwillbus:Consolidated2023-04-3013816992core:LeaseholdImprovementsbus:Consolidated2023-04-3013816992core:FurnitureFittingsbus:Consolidated2023-04-3013816992core:ComputerEquipmentbus:Consolidated2023-04-3013816992bus:Consolidated2023-04-3013816992core:LeaseholdImprovementsbus:Consolidated2023-05-012024-04-3013816992core:FurnitureFittingsbus:Consolidated2023-05-012024-04-3013816992core:ComputerEquipmentbus:Consolidated2023-05-012024-04-3013816992core:Subsidiary1bus:Consolidated2023-05-012024-04-3013816992core:Subsidiary22023-05-012024-04-3013816992core:Subsidiary32023-05-012024-04-3013816992core:Subsidiary42023-05-012024-04-3013816992core:CurrentFinancialInstrumentsbus:Consolidated2024-04-3013816992core:CurrentFinancialInstrumentsbus:Consolidated2023-04-3013816992core:CurrentFinancialInstruments2024-04-3013816992core:CurrentFinancialInstruments2023-04-3013816992core:WithinOneYearbus:Consolidated2024-04-3013816992core:WithinOneYearbus:Consolidated2023-04-3013816992core:CurrentFinancialInstrumentscore:WithinOneYear2024-04-3013816992core:CurrentFinancialInstrumentscore:WithinOneYear2023-04-3013816992core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-04-3013816992core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-04-3013816992core:Non-currentFinancialInstrumentscore:AfterOneYear2024-04-3013816992core:Non-currentFinancialInstrumentscore:AfterOneYear2023-04-3013816992core:Non-currentFinancialInstrumentsbus:Consolidated2024-04-3013816992core:Non-currentFinancialInstrumentsbus:Consolidated2023-04-3013816992core:Non-currentFinancialInstruments2024-04-3013816992core:Non-currentFinancialInstruments2023-04-3013816992core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-04-3013816992core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-04-3013816992bus:PrivateLimitedCompanyLtd2023-05-012024-04-3013816992bus:FRS1022023-05-012024-04-3013816992bus:Audited2023-05-012024-04-3013816992bus:ConsolidatedGroupCompanyAccounts2023-05-012024-04-3013816992bus:FullAccounts2023-05-012024-04-30xbrli:purexbrli:sharesiso4217:GBP