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Clarion Solicitors Limited

Registered number: 07185479
Annual report and
 consolidated financial statements
For the year ended 31 May 2024

 
CLARION SOLICITORS LIMITED
 
 
COMPANY INFORMATION


Directors
R J Moran 
C N R Hutton 
R G Millmore 
M R Grange 
S D Young 
M R Hattersley 
S Tahamtani 
J D Simms 
A J McAulay 
E V Kirwan 
B Slack 
L A Texel 




Registered number
07185479



Registered office
Elizabeth House
13-19 Queen Street

Leeds

West Yorkshire

LS1 2TW




Independent auditors
Forvis Mazars LLP
Chartered Accountants & Statutory Auditor

6 Dominus Way

Meridian Business Park

Leicester

LE19 1RP




Bankers
HSBC Bank plc
33 Park Row

Leeds

West Yorkshire

LS1 1LD





 
CLARION SOLICITORS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 2
Directors' Report
 
3 - 8
Independent Auditors' Report
 
9 - 12
Consolidated Statement of Comprehensive Income
 
13
Consolidated Statement of Financial Position
 
14
Company Statement of Financial Position
 
15 - 16
Consolidated Statement of Changes in Equity
 
17
Company Statement of Changes in Equity
 
18
Consolidated Statement of Cash Flows
 
19 - 20
Notes to the Financial Statements
 
21 - 40


 
CLARION SOLICITORS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

Introduction
 
The directors present their strategic report for Clarion Solicitors Limited ("Clarion" "Group") for the year ended 31 May 2024.

Business review
 
During the year the principal activity of Clarion continued to be the provision of legal services.
In a competitive marketplace Clarion continues to invest in its brand, people, systems/processes and client base.
The main elements of this investment plan were put in place previously but are continuously reviewed and enhanced. Additional investments have been made during the year in IT and other technology to ensure Clarion continues to be at the forefront of these opportunities. These, along with a continued client centric approach and financial control, have enabled Clarion to record healthy levels of activity and profitability.
Clarion believes that these investments will continue to add value in the future. Clarion, through this process, has been able to enhance profitability which means it is well placed to deal with both sector and macro- economic challenges.

Principal risks and uncertainties
 
As with all professional service businesses Clarion is focused on ensuring high levels of client service standards. It also recognises the need to ensure a broad portfolio of clients and sectors and continually monitors this data. Clarion is not reliant on any one sector or client and through its many service lines believes that it is in the optimal position to react positively to any changes in the UK economy.
Clarion produces a number of daily, weekly and monthly reports that enable the Management Board to make well informed and timely decisions on the future of the Group. Financial accounts are prepared monthly and form the basis for a detailed review by the Management Board.
As a result of its predominantly UK client base Clarion is not exposed to any significant foreign currency uncertainties and continues to be vigilant in light of the economic environment.
Clarion’s principal trading assets are Work In Progress ('WIP') and debtors. These are reviewed monthly to ensure that the WIP remains billable and the debt collectable. There is a documented process for valuing WIP and debt and these assets are valued in the balance sheet after provisions for WIP write downs and bad debt provisions. These provisions are based around management and lawyers assessment of collectability.
 
- 1 -

 
CLARION SOLICITORS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Price risk
Clarion has a number of key suppliers all of whom are regularly monitored to ensure adequate provision of the service being supplied and that their offering is still competitive.
Credit risk
All new clients are credit profiled. Fee earners and credit risk staff monitor and review all outstanding credit and where appropriate issues are escalated to senior management. Outstanding and overdue debts are regularly monitored and there are clear procedures for raising early warning signs. Bad debt provisions are reviewed for adequacy on a monthly basis.
Liquidity and cashflow risk
Clarion manages its cashflow on a very frequent basis and cashflow forecasts are prepared in detail for the remainder of any financial year and then liquidity overviews are prepared for the 5 subsequent years thereafter. This regular, scheduled forecasting allows Clarion to detect pressure points or areas of commercial growth that may require subsequent additional banking support.
Financial key performance indicators
Clarion continually and closely monitors a number of key data items on a daily, weekly and monthly basis. Profitability remains the key focus of the Board, with the principal indicator being a notional version of operating profit. The Board also monitor lock up levels closely, which remain under careful and successful management, and largely remain in line with previous periods.
The business continues to grow, and the Board are delighted to report increased turnover and underlying profitability in the year under review, which is anticipated to continue in future years. As such, and as outlined above, the business continues with its planned and ongoing investment in its infrastructure, capability and people, to enable it to maintain its high standards of client service, a leading employer committed to the development of its people, but to also maximise the ongoing growth opportunity the Firm undoubtedly faces. Whilst this has temporarily impacted on the business’ profitability in the year under review, the Board believe this planned investment remains strategically essential for Clarion’s continued growth and future success.

Other key performance indicators
 
Whilst reviewing the profitable impact of work already done Clarion also reviews not only the number of new clients and matters introduced to the business but also how it continues to engage with current clients. This data allows Clarion to build a picture of its future revenues.
In addition to this Clarion continues to review the market for key talent and ensures its recruitment and employee retention policies are fit for purpose.


This report was approved by the board on 31 January 2025 and signed on its behalf.


R G Millmore
Director

- 2 -

 
CLARION SOLICITORS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

The directors present their report and the financial statements for the year ended 31 May 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The principal activity of the Group continued to be the provision of legal services. 

Results and dividends

The profit for the year, after taxation, amounted to £4,400,091 (2023 - £5,143,511).

During the year, the Group declared dividends of £5,753,365 (2023 - £3,542,500). 

- 3 -

 
CLARION SOLICITORS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024


Directors

The directors who served during the year were:

R J Moran 
C N R Hutton 
R G Millmore 
M R Grange 
S D Young 
M R Hattersley 
J M Osmotherley (resigned 31 May 2024)
S Tahamtani 
J D Simms 
A J McAulay 
E V Kirwan 
B Slack 
L A Texel 

Future developments

Clarion remains focused on delivering the highest levels of service and experience to its clients whilst ensuring continued improvements in processes, performance and efficiency.
Clarion has made a strong start to the current financial year, given the current economic environment, with activity significantly ahead of last year, which alongside strict control of lock up levels provides a sound base to continue to pursue the growth strategy of the business.

Going concern

In the opinion of the directors Clarion has sufficient financial resources together with clearly defined performance objectives. It has the strong support of its bankers, shareholders and other providers of funds in working towards meeting its financial objectives. As a consequence, the directors believe that Clarion is well placed to manage its business risks and opportunities successfully.
The directors have a reasonable expectation that Clarion has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt a going concern basis of accounting in preparing the annual financial statements.
On 31 May 2024, the Group underwent a restructure, resulting in a new parent company, Never Ordinary Limited. The directors are satisfied that the restructure will not affect the ongoing operations of the group and therefore their assessment of going concern remains unchanged. 

- 4 -

 
CLARION SOLICITORS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Engagement with employees

For Clarion, employee engagement and creating an exceptional employee experience is a critical part of the business’s continued success both in terms of attracting and retaining talent and ensuring that the strong people-focused culture is maintained as it grows.
Clarion has well thought-out strategies around various employee engagement factors such as leadership, internal communication, learning and development, reward and recognition, well-being and ESG. It aims to ensure that all employees have a voice and have the opportunity to share their thoughts in a variety of ways throughout the year.
Clarion continues to maintain our award-winning culture, which was externally accredited in May 2024 with Clarion achieving a Top 10 position in the prestigious Sunday Times Best Places to Work (Big Organisations) and winning a special award with The Sunday Times for being the Best Place to Work for Young People.  
Clarion maintains a keen focus on employee well-being and development. We also have a greater emphasis on diversity and inclusion within the business, with the creation of many internal initiatives which support a culture where each of our people can thrive and be their authentic selves. Diversity and inclusion has mattered to Clarion for a long time and we have made real progress in many areas, particularly with regard to gender and the high proportion of female employees. This has included ensuring we retain many talented women in the workplace through maternity returner coaching, the introduction of extensive menopause support and the joining of the Fertility Matters at work initiative.
Our commitment to diversity and inclusion extends beyond the firm with a number of external initiatives including working in a local school with the aim of increasing opportunities for social mobility in the future, which also provides volunteering opportunities for our team. We have also developed our work experience program to have a real focus on social mobility and providing opportunities for people who may otherwise not have the same opportunities to access careers in law.
Clarion is committed to ensuring that a culture free from discrimination and harassment is embedded in our culture and actively promote equality and diversity. Clarion provides equality of opportunity for all employees, irrespective of ethnic origin, religion, gender, marital status, disability, age or sexual orientation.

- 5 -

 
CLARION SOLICITORS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

ESG at Clarion

We are committed to driving the business forward for the benefit of our people, clients, and community while ensuring our actions align with our environmental and social responsibilities.
Our ESG activities and Net-Zero plan are important not only to our business but also to the expectations of our employees, prospective legal talent, and clients. Increasingly, businesses are seeking legal suppliers and supply chains that actively prioritise sustainability and have a clear Net-Zero strategy. This is a responsibility we take seriously and is firmly on our management agenda.
By empowering our people to contribute to initiatives that reduce our environmental footprint and create positive community impact, we embed sustainability into the business. 
Environmental
Flotilla continue as our Net Zero Partner, their carbon accounting platform provides high level and granular visibility over our carbon usage.
In 2024 we have completed our Energy Savings Opportunity Scheme (ESOS) assessment. 
Baseline footprint:
Clarion's carbon footprint for the year ended 31 May 2024 has been 're-baselined' to 764 tCO2e, or 3.6 tCO2e per FTE. This compares to the average of 5.1 tCO2e for an office-based SME. Re-baselining adjustments were made due to changes in calculation methodology by Flotilla. Over 90% of Clarion's baseline emissions were Scope 3, which continues to be the case in the most recent year.
Footprint by Scope:
91% of Clarion's baseline emissions were Scope 3 (value chain) emissions, rising to 93% in the most recent year. Scope 1 emissions (gas heating at Elizabeth House and Clarion's space within Coronet House) are now less than 1% of total emissions and have fallen in the most recent year given more accurate usage data becoming available. Scope 2 emissions from non-renewable electricity accounted for 7% of total emissions and have increased in the most recent year due to the inclusion of electricity data for Clarion's space within Coronet House.
Year on Year:
In the most recent year, there has been a 3% decrease in total emissions compared to the previous year (to 31 May 2023). This decrease is predominantly due to a fall in both Scope 1 (heating) emissions, possibly due to data improvements, and those relating to spend on technology. This was partly offset by increased emissions related to Clarion's use of restaurants/subsistence and commuting.
 
- 6 -

 
CLARION SOLICITORS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Social - our people and our community
Our people and our community are incredibly important to us. These are just some of the ways we show our commitment to both during the last financial year: 
 
We remain the lead sponsor for Run For All Leeds 10k Team Challenge, and have been for over 16 year, and are the proud sponsors of the Rob Burrow Leeds Marathon to support Motor Neurone Disease.  2025 will be the third year we have supported this event;
We took part in the UK Corporate Games that took part in Leeds
Charity of employee choice is Candlelighters and over £14,852.61 has been raised to date by employees;
For over three years we have partnered with Dixons Trinity Chapletown school in Leeds delivering a bespoke programme of activities designed to help enable students to fulfil their potential
Following our commitment to become Menopause Friendly employers, we continue to enhance our access to information, guidance and support to all colleagues; and
Colleagues continue to take part in a wide range of volunteering activities for our charities and third parties we support and are associated with

Governance
We maintain strong corporate governance practices promoting strong leadership, transparency and proactive risk management. We are building a resilient business with high ethical standards that promotes a culture of integrity. 
Points of note for 2023/2024:
 
Clarion is proud to be a Real Living Wage employer and has been for a number of years now. There are now 15,000 Living Wage Employers in the UK who are choosing to pay the Real Living Wage to provide employees and their families with greater security and stability
We maintain our Cyber Essentials Plus accreditation; and
We maintain a comprehensive programme of compliance training for everyone and continue to invest in our internal risk and compliance team.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

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

- 7 -

 
CLARION SOLICITORS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024


Post balance sheet events

There have been no significant events affecting the Group since the year end.

Auditors

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

This report was approved by the board on 31 January 2025 and signed on its behalf.
 





R G Millmore
Director

- 8 -

 
CLARION SOLICITORS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLARION SOLICITORS LIMITED
 

Opinion

We have audited the financial statements of Clarion Solicitors Limited (the ‘Parent Company’) and its subsidiaries (the ‘Group’) for the year ended 31 May 2024 which comprise Consolidated Statement of Comprehensive Income, the Consolidated and Company Statement of Financial Position, the Consolidated and Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

give a true and fair view of the state of the Group's and of the Parent Company’s affairs as at 31 May 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Group and the 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 other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's nor 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.
- 9 -

 
CLARION SOLICITORS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLARION SOLICITORS LIMITED
 

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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:
 
the information given in the Group Strategic Report and the Directors' 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 Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In light of the knowledge and understanding of the Group and the Parent Company and their environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.

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

adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the Parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

- 10 -

 
CLARION SOLICITORS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLARION SOLICITORS LIMITED
 

Responsibilities of Directors

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 Group's and the Parent Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors intend either to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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.
 
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
 
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. 

Based on our understanding of the Group and the Parent Company and their industry, we considered that noncompliance with the following laws and regulations might have a material effect on the financial statements:  employment regulation, health and safety regulation and non compliance with anti-money laundering regulation.

To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
Inquiring of management and, where appropriate, those charged with governance, as to whether the Group and Parent Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the Group and the Parent Company which were contrary to applicable laws and regulations, including fraud.  

We also considered those laws and regulations that have a direct effect on the preparation of the financial
statements, such as tax legislation, pension legislation and the Companies Act 2006.
- 11 -

 
CLARION SOLICITORS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLARION SOLICITORS LIMITED
 

In addition we evaluated the directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements including the risk of management override of controls and determined that the principal risks related to the posting of manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, revenue recognition (which we pinpointed to the cut-off assertion) and significant one-off or unusual transactions.

Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.

There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.

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 auditor’s report.

Use of the audit 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.



Stephen English (Senior Statutory Auditor)

for and on behalf of
Forvis Mazars LLP
Chartered Accountants and Statutory Auditor 
6 Dominus Way
Meridian Business Park
Leicester
LE19 1RP

31 January 2025
- 12 -

 
CLARION SOLICITORS LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Note
£
£

  

Turnover
 4 
33,857,143
30,848,586

Cost of sales
  
(14,113,558)
(11,903,793)

Gross profit
  
19,743,585
18,944,793

Administrative expenses
  
(13,516,523)
(12,219,550)

Operating profit
 5 
6,227,062
6,725,243

Interest receivable and similar income
 9 
82,653
29,448

Interest payable and similar expenses
 10 
(232,637)
(133,399)

Profit before taxation
  
6,077,078
6,621,292

Tax on profit
 11 
(1,676,987)
(1,477,781)

Profit for the financial year
  
4,400,091
5,143,511

  

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 21 to 40 form part of these financial statements.

- 13 -

 
CLARION SOLICITORS LIMITED
REGISTERED NUMBER: 07185479

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
537,097
915,967

Tangible assets
 14 
543,459
715,247

  
1,080,556
1,631,214

Current assets
  

Work in progress
 16 
6,427,693
6,139,098

Debtors: amounts falling due within one year
 17 
8,544,868
8,236,170

Cash at bank and in hand
 18 
1,140,326
296,985

  
16,112,887
14,672,253

Creditors: amounts falling due within one year
 19 
(10,999,474)
(8,305,518)

Net current assets
  
 
 
5,113,413
 
 
6,366,735

Total assets less current liabilities
  
6,193,969
7,997,949

Creditors: amounts falling due after more than one year
 20 
(83,182)
(126,404)

Provisions for liabilities
  

Deferred taxation
 21 
(145,263)
(189,747)

Other provisions
 22 
-
(363,000)

  
 
 
(145,263)
 
 
(552,747)

Net assets
  
5,965,524
7,318,798


Capital and reserves
  

Called up share capital 
 23 
600
744

Capital redemption reserve
 24 
392
248

Profit and loss account
 24 
5,964,532
7,317,806

  
5,965,524
7,318,798


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 January 2025.




R G Millmore
C N R Hutton
Director
Director

The notes on pages 21 to 40 form part of these financial statements.

- 14 -

 
CLARION SOLICITORS LIMITED
REGISTERED NUMBER: 07185479

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
469,095
830,964

Tangible assets
 14 
543,459
713,035

Investments
 15 
391,829
391,829

  
1,404,383
1,935,828

Current assets
  

Stocks
 16 
6,427,693
6,139,098

Debtors: amounts falling due within one year
 17 
8,532,159
8,205,155

Cash at bank and in hand
 18 
1,102,417
228,874

  
16,062,269
14,573,127

Creditors: amounts falling due within one year
 19 
(11,249,119)
(8,510,583)

Net current assets
  
 
 
4,813,150
 
 
6,062,544

Total assets less current liabilities
  
6,217,533
7,998,372

  

Creditors: amounts falling due after more than one year
 20 
(83,182)
(126,404)

Provisions for liabilities
  

Deferred taxation
 21 
(144,843)
(189,327)

Other provisions
 22 
-
(363,000)

  
 
 
(144,843)
 
 
(552,327)

Net assets
  
5,989,508
7,319,641


Capital and reserves
  

Called up share capital 
 23 
600
744

Capital redemption reserve
 24 
392
248

Profit and loss account carried forward
 24 
5,988,516
7,318,649

  
5,989,508
7,319,641


- 15 -

 
CLARION SOLICITORS LIMITED
REGISTERED NUMBER: 07185479
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MAY 2024

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 Comprehensive Income in these financial statements. The profit after tax of the Company for the year was £4,423,232 (2023: £5,144,354).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 January 2025.




R G Millmore
C N R Hutton
Director
Director

The notes on pages 21 to 40 form part of these financial statements.

- 16 -

 
CLARION SOLICITORS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 June 2022
744
248
5,716,795
5,717,787


Comprehensive income for the year

Profit for the year
-
-
5,143,511
5,143,511
Total comprehensive income for the year
-
-
5,143,511
5,143,511


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(3,542,500)
(3,542,500)



At 1 June 2023
744
248
7,317,806
7,318,798


Comprehensive income for the year

Profit for the year
-
-
4,400,091
4,400,091
Total comprehensive income for the year
-
-
4,400,091
4,400,091


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(5,753,365)
(5,753,365)

Repurchase of own shares
(144)
144
-
-


At 31 May 2024
600
392
5,964,532
5,965,524


The notes on pages 21 to 40 form part of these financial statements.

- 17 -

 
CLARION SOLICITORS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 June 2022
744
248
5,716,795
5,717,787


Comprehensive income for the year

Profit for the year
-
-
5,144,354
5,144,354
Total comprehensive income for the year
-
-
5,144,354
5,144,354


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(3,542,500)
(3,542,500)



At 1 June 2023
744
248
7,318,649
7,319,641


Comprehensive income for the year

Profit for the year
-
-
4,423,232
4,423,232
Total comprehensive income for the year
-
-
4,423,232
4,423,232


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(5,753,365)
(5,753,365)

Repurchase of own shares
(144)
144
-
-


At 31 May 2024
600
392
5,988,516
5,989,508


The notes on pages 21 to 40 form part of these financial statements.

- 18 -

 
CLARION SOLICITORS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
4,400,091
5,143,511

Adjustments for:

Amortisation of intangible assets
408,297
411,144

Depreciation of tangible assets
232,643
236,795

Interest paid
232,637
133,399

Interest received
(82,653)
(29,448)

Taxation charge
1,676,987
1,477,781

Increase in stocks
(288,595)
(967,354)

Increase in debtors
(77,506)
(1,119,465)

Increase/(decrease) in creditors
980,263
(441,935)

(Decrease)/increase in provisions
(363,000)
37,000

Corporation tax paid
(1,568,691)
(1,130,353)

Net cash generated from operating activities

5,550,473
3,751,075
- 19 -

 
CLARION SOLICITORS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024


2024
2023

£
£




Cash flows from investing activities

Purchase of intangible fixed assets
(29,427)
(134,460)

Purchase of tangible fixed assets
(63,067)
(348,882)

Sale of tangible fixed assets
2,212
-

Interest received
82,653
29,448

Purchase of subsidiary
-
(116,008)

Net cash used in investing activities

(7,629)
(569,902)

Cash flows from financing activities

Other new loans
1,286,499
80,000

Repayment of other loans
-
(61,667)

Dividends paid
(5,753,365)
(3,542,500)

Interest paid
(232,637)
(133,399)

Net cash used in financing activities
(4,699,503)
(3,657,566)

Net increase/(decrease) in cash and cash equivalents
843,341
(476,393)

Cash and cash equivalents at beginning of year
296,985
773,378

Cash and cash equivalents at the end of year
1,140,326
296,985


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,140,326
296,985

1,140,326
296,985


- 20 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Clarion Solicitors Limited is a private company, limited by shares, registered in England and Wales, registration number 07185479. The company is incorporated in the United Kingdom. The registered office is Elizabeth House, 13-19 Queen Street, Leeds, West Yorkshire, LS1 2TW. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, 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 Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

  
2.3

Financial Reporting Standard 102 - reduced disclosure exemptions

The Parent Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
 
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.


- 21 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.4

Going concern

In the opinion of the directors Clarion has sufficient financial resources together with clearly defined performance objectives. It has the strong support of its bankers, shareholders and other providers of funds in working towards meeting its financial objectives. As a consequence, the directors believe that Clarion is well placed to manage its business risks and opportunities successfully.
The directors have a reasonable expectation that Clarion has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt a going concern basis of accounting in preparing the annual financial statements.
On 31 May 2024, the Group underwent a restructure, resulting in a new parent company, Never Ordinary Limited. The directors are satisfied that the restructure will not affect the ongoing operations of the group and therefore their assessment of going concern remains unchanged. 

 
2.5

Revenue

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

Rendering of services

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

- 22 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

  
2.6

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis over its useful economic life. Amortisation charges are expensed to administrative expenses within the Statement of Comprehensive Income. 
Goodwill is amortised over a period of between five and fifteen years. 
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Development expenditure is considered to have a useful economic life of 5 years and is amortised on a straigth line basis.

 
2.7

Tangible fixed assets

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

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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:

Leasehold improvements
-
10% straight line
Office equipment
-
20% straight line
Computer equipment
-
33% straight line

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.

- 23 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.8

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.10

Work in progress

Work in progress is valued at the net realisable value of unbilled time after considering the stage of completion of matters and after making due provision where there is sufficient uncertainty about whether amounts will be recovered. 

 
2.11

Debtors

Short term debtors are measured at transaction price, less any impairment

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

  
2.13

Financial instruments

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

 
2.14

Creditors

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

- 24 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.15

Foreign currency translation

Functional and presentation currency

The Group's functional and presentational currency is GBP.

Transactions and balances

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

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

 
2.16

Finance costs

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

 
2.17

Dividends

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

 
2.18

Pensions

Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payments obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.19

Interest income

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

 
2.20

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

- 25 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.21

Provisions for liabilities

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

 
2.22

Current and deferred taxation

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

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

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

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

- 26 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.23

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

Critical judgements in applying the Group’s accounting policies 
The critical judgements that the directors have made in the process of applying the Group’s accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
(i) Assessing indicators of impairment 
In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability and where applicable, the ability of the asset to be operated as planned. There have been no indicators of impairments identified during the current financial year.
Key sources of estimation uncertainty 
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(ii) Recoverability of debtors and work in progress
The Group establishes a provision for all debtors and work in progress amounts that are estimated not to be recoverable either in full or in part. When assessing recoverability the directors have considered factors such as the aging of the receivables, past experience of recoverability, and the credit profile of individual or groups of clients.   


4.


Turnover

All turnover arose within the United Kingdom and is applicable to the principal activity of the Group. 

- 27 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
232,643
236,795

Amortisation of intangible assets including goodwill
408,297
411,144

Other operating lease rentals
529,715
696,042


6.


Auditors' remuneration

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


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
33,500
32,500


7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
2024
2023
£
£


Wages and salaries
15,642,806
13,780,550

Social security costs
1,735,918
1,523,359

Defined contribution pension cost - support staff
547,712
362,407

Defined contribution pension scheme - fee earners
1,278,888
918,086

19,205,324
16,584,402


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


        2024
        2023
            No.
            No.







Fee earners
196
188



Support staff
112
110

308
298

- 28 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

8.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
768,183
668,951


During the year retirement benefits were accruing to no directors (2023 - 3) in respect of defined contribution pension schemes.

The highest paid director received remuneration, excluding pension contributions, of £124,186 (2023 - £141,291) during the year. 

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 - £500) during the year. 


9.


Interest receivable

2024
2023
£
£


Bank interest receivable
82,653
29,448


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
-
1,574

Other loan interest payable
232,637
131,825

232,637
133,399

- 29 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

11.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
1,806,531
1,410,367

Adjustments in respect of previous periods
(85,060)
(17,349)


Total current tax
1,721,471
1,393,018

Deferred tax


Origination and reversal of timing differences
(57,447)
50,610

Effect of tax rate changes on opening balances
12,963
34,153

Total deferred tax
(44,484)
84,763


Taxation on profit on ordinary activities
1,676,987
1,477,781

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of25% (2023 -20%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
6,077,078
6,621,292


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 20%)
1,519,270
1,324,258

Effects of:


Expenses not deductible for tax purposes
154,763
170,717

Fixed asset differences
75,051
61,156

Adjustments to tax charge in respect of prior periods
(85,060)
(17,349)

Adjustments to tax charge in respect of prior periods - deferred tax
12,963
34,153

Remeasurement of deferred tax for changes in tax rates
-
10,117

Other differences
-
(105,271)

Total tax charge for the year
1,676,987
1,477,781

- 30 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

12.


Dividends

2024
2023
£
£


Dividends paid to Ordinary 1 shareholders
2,062,720
2,057,000


Dividends paid to Ordinary A shareholders
3,025,315
440,000


Dividends paid to Ordinary 2 shareholders
281,280
280,500


Dividends paid to Ordinary 3 shareholders
384,050
765,000

5,753,365
3,542,500


13.


Intangible assets

Group





Development expenditure
Goodwill
Total

£
£
£



Cost


At 1 June 2023
755,981
4,785,424
5,541,405


Additions
29,427
-
29,427



At 31 May 2024

785,408
4,785,424
5,570,832



Amortisation


At 1 June 2023
512,517
4,112,921
4,625,438


Charge for the year
91,296
317,001
408,297



At 31 May 2024

603,813
4,429,922
5,033,735



Net book value



At 31 May 2024
181,595
355,502
537,097



At 31 May 2023
243,464
672,503
915,967



- 31 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
 
           13.Intangible assets (continued)

Company




Development expenditure
Goodwill
Total

£
£
£



Cost


At 1 June 2023
755,981
4,700,000
5,455,981


Additions
29,427
-
29,427



At 31 May 2024

785,408
4,700,000
5,485,408



Amortisation


At 1 June 2023
512,517
4,112,500
4,625,017


Charge for the year
91,296
300,000
391,296



At 31 May 2024

603,813
4,412,500
5,016,313



Net book value



At 31 May 2024
181,595
287,500
469,095



At 31 May 2023
243,464
587,500
830,964

- 32 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

14.


Tangible fixed assets

Group






Leasehold improvements
Office equipment
Computer equipment
Total

£
£
£
£



Cost 


At 1 June 2023
1,196,322
476,093
486,275
2,158,690


Additions
-
3,247
59,820
63,067


Disposals
-
(7,595)
(61,559)
(69,154)



At 31 May 2024

1,196,322
471,745
484,536
2,152,603



Depreciation


At 1 June 2023
895,931
230,166
317,346
1,443,443


Charge for the year
43,666
74,093
114,884
232,643


Disposals
-
(5,383)
(61,559)
(66,942)



At 31 May 2024

939,597
298,876
370,671
1,609,144



Net book value



At 31 May 2024
256,725
172,869
113,865
543,459



At 31 May 2023
300,391
245,927
168,929
715,247

- 33 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

           14.Tangible fixed assets (continued)


Company






Leasehold improvements
Office equipment
Computer equipment
Total

£
£
£
£

Cost 


At 1 June 2023
1,196,322
467,968
486,275
2,150,565


Additions
-
3,247
59,820
63,067


Disposals
-
-
(61,559)
(61,559)



At 31 May 2024

1,196,322
471,215
484,536
2,152,073



Depreciation


At 1 June 2023
895,931
224,253
317,346
1,437,530


Charge for the year
43,666
74,093
114,884
232,643


Disposals
-
-
(61,559)
(61,559)



At 31 May 2024

939,597
298,346
370,671
1,608,614



Net book value



At 31 May 2024
256,725
172,869
113,865
543,459



At 31 May 2023
300,391
243,715
168,929
713,035






- 34 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

15.


Fixed asset investments

Company





Investments in subsidiary undertakings

£



Cost and net book value 


At 1 June 2023
391,829



At 31 May 2024
391,829





Subsidiaries undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Clarion Trust Corporation Limited
Elizabeth House, 13-19 Queen Street, Leeds West Yorkshire, LS1 2TW
Ordinary
100%
LB&Co Limited
Elizabeth House, 13-19 Queen Street, Leeds West Yorkshire, LS1 2TW
Ordinary
100%


16.


Work in progress

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

Work in progress
6,427,693
6,139,098
6,427,693
6,139,098


- 35 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

17.


Debtors

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


Trade debtors
6,830,503
6,519,181
6,824,553
6,491,157

Amounts owed by group undertakings
22,446
-
22,446
-

Other debtors
22,399
725,061
15,640
722,070

Prepayments and accrued income
1,438,593
991,928
1,438,593
991,928

Tax recoverable
230,927
-
230,927
-

8,544,868
8,236,170
8,532,159
8,205,155


The balances owed by group undertakings are interest free and repayable on demand.


18.


Cash and cash equivalents

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

Cash at bank and in hand
1,140,326
296,985
1,102,417
228,874


- 36 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

19.


Creditors: Amounts falling due within one year

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

Other loans
2,096,499
810,000
2,096,499
810,000

Payments received on account
-
1,730
-
-

Trade creditors
1,718,586
1,413,956
1,718,586
1,397,756

Amounts owed to group undertakings
-
-
249,999
249,999

Amounts owed to other participating interests
2,359,684
2,268,629
2,359,684
2,268,629

Corporation tax
1,806,531
1,422,559
1,806,531
1,410,479

Other taxation and social security
972,284
754,137
971,930
743,049

Other creditors
109,995
202,687
109,995
202,687

Accruals and deferred income
1,935,895
1,431,820
1,935,895
1,427,984

10,999,474
8,305,518
11,249,119
8,510,583


The balances owed to group undertakings are interest free and repayable on demand.
Included within other loans is a balance of £1,049,999 relating to a trade finance loan which is repayable in installements and accrues interest at a rate of 5%.
The Company has an available bank overdraft facility with HSBC Bank Plc who hold a fixed and floating charge over all the of the present and future assets of the Company.


20.


Creditors: Amounts falling due after more than one year

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

Accruals and deferred income
83,182
126,404
83,182
126,404




- 37 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

21.


Deferred taxation


Group



2024
2023


£

£






At beginning of year
(189,747)
(104,564)


Charged to profit or loss
44,484
(85,183)



At end of year
(145,263)
(189,747)

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

Fixed asset timing differences
(188,627)
(221,118)
(188,627)
(221,118)

Short term timing differences
43,364
31,371
43,784
31,791

(145,263)
(189,747)
(144,843)
(189,327)


22.


Provisions


Group and Company



Future costs provision

£





At 1 June 2023
363,000


Charged to profit or loss
(363,000)



At 31 May 2024
-

- 38 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

23.


Share capital

2024
2023
£
£
Authorised, allotted, called up and fully paid



440 (2023 - 440) Ordinary 1 shares of £1.00 each
440
440
Nil (2023 - 44) Ordinary A shares of £1.00 each
-
44
60 (2023 - 60) Ordinary 2 shares of £1.00 each
60
60
50 (2023 - 100) Ordinary 3 shares of £1.00 each
50
100
Nil (2023 - 100) Ordinary B shares of £1.00 each
-
100
50 (2023 - Nil) Ordinary 4 shares of £1.00 each
50
-

600

744

On 3 April 2024 the Company subdivided the 100 Ordinary 3 shares of £1.00 each into 50 Ordinary 3 shares of £1.00 each and 50 Ordinary 4 shares of £1.00 each. 
On 31 May 2024 the Company repurchased 44 Ordinary A shares at their nominal value of £44 and 100 Ordinary B shares at their nominal value of £100. 
The holders of the Ordinary 1, Ordinary 2, Ordinary 3 and Ordinary 4 shares are entitled to attend and vote at general meetings, receive dividends and participate in a distribution in the event of the winding up of the Company. The shares are not redeemable. 



24.


Reserves

Capital redemption reserve

The balance of the capital redemption reserve represents the cumulative repurchase of Ordinary A shares. 

Profit and loss account

This reserve represents cumulative profits and losses less dividends paid. The full reserve is available for distribution.

25.


Analysis of net debt




At 1 June 2023
Cash flows
At 31 May 2024
£

£

£

Cash at bank and in hand

296,985

843,341

1,140,326

Debt due within 1 year

(993,320)

(1,103,179)

(2,096,499)


(696,335)
(259,838)
(956,173)

- 39 -

 
CLARION SOLICITORS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

26.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separate 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 £1,826,600 (2023 - £1,280,493). Contributions totalling £161,805 (2023 - £119,975) were payable to the fund at the balance sheet date and are included in creditors.


27.


Commitments under operating leases

At 31 May 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
578,172
518,198

Later than 1 year and not later than 5 years
1,059,982
1,408,167

1,638,154
1,926,365

28.


Post balance sheet events

There have been no significant events affecting the Group since year end. 


29.


Related party transactions

During the year, Clarion Solicitors Limited paid dividends of £5,753,365 (2023 - £3,542,500) including £5,603,365 (2023 - £3,392,500) paid to the directors of the Company.
The Group has received loans from the directors and shareholders of the Company. Amounts totalling £2,359,684 (2023 - £2,268,629) were owed to the shareholders at the balance sheet date which includes  £2,093,076 (2023 - £2,041,176) owed to the directors of the Group.
At the balance sheet date the Group is owed £Nil (2023 - £699,517) by directors by virtue of their loan accounts.
During the year the Group entered into transactions with related parties by virtue of a common directorship. During the year the Group paid £10,250 (2023 - £10,133) in quarterly partnership fees. There were no amounts outstanding in respect of these sales or purchases in the current or prior year.
The Group has taken advantage of the exemption conferred by FRS 102 Section 33 not to disclose transactions with wholly owned members of the Group.


30.


Immediate and ultimate parent undertaking and controlling party

The Company's immediate parent undertaking is Never Ordinary Limited, a company registered in England and Wales. The Directors are of the opinion there is no ultimate controlling party.

- 40 -