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Registered number: 11494075










EXCELLO LAW LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2023

 
EXCELLO LAW LIMITED
 
 
COMPANY INFORMATION


Directors
G Bisnought 
J H Losty 
S A James (appointed 21 November 2022)




Registered number
11494075



Registered office
110 Bishopsgate

London

EC2N 4AY




Independent auditor
Shaw Gibbs (Audit) Limited
Statutory Auditor

Wey Court West

Union Road

Farnham

Surrey

GU9 7PT





 
EXCELLO LAW LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 3
Directors' Report
 
4 - 5
Independent Auditor's Report
 
6 - 9
Consolidated Statement of Comprehensive Income
 
10
Consolidated Statement of Financial Position
 
11
Company Statement of Financial Position
 
12 - 13
Consolidated Statement of Changes in Equity
 
14
Company Statement of Changes in Equity
 
15 - 16
Consolidated Statement of Cash Flows
 
17
Consolidated Analysis of Net Debt
 
18
Notes to the Financial Statements
 
19 - 40


 
EXCELLO LAW LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

Introduction
 
The Directors present their report for the year ended 30 June 2023, providing a comprehensive overview of the Company’s financial performance, strategic developments, and future outlook.
Excello Law continues to redefine the legal industry, setting new standards in the consultancy fee-share model. As one of the UK’s top 10 fastest-growing law firms, it has become the firm of choice for experienced lawyers seeking a modern, entrepreneurial approach to legal practice.
Excello Law stands apart as a leading full-service fee-share firm, renowned for its selective recruitment and commitment to excellence. Our model empowers lawyers with independence while providing unparalleled support. As self-employed professionals, they enjoy the freedom to manage their practice while benefiting from our comprehensive infrastructure, including compliance, finance, marketing, IT, and a strong national referral network. This ensures they can focus on delivering exceptional client service without the administrative burdens of a traditional law firm.
Unlike volume-driven models, we focus on selecting the right lawyers, not just more lawyers. By prioritising quality over quantity, we ensure cultural alignment and high professional standards across our team. This approach has led to a 98% retention rate—one of the highest in the sector—reflecting the loyalty, satisfaction, and long-term success of our lawyers.
At the heart of our success is a genuine partnership with our lawyers. We take time to understand their ambitions, challenges, and goals—getting under the bonnet of their practice to provide tailored support that fuels long-term success. This philosophy underpins our strong retention rates and ensures lawyers thrive within our firm.
The past year has been pivotal for Excello Law. In December2022, we completed a strategic merger with My Business Counsel (MBC), marking the first major consolidation in the consultancy law sector. This move expanded our expertise into new legal areas and strengthened our national presence. In total over the past year, we welcomed 43 new lawyers, including 31 from MBC, resulting in a 34% increase in our total lawyer count, increasing to 175 across the UK. FY 23 was a standout period, with a revenue of £16 million—an impressive 40% rise from 2022. Looking ahead to June 2024, our forecast projects a £22 million revenue, marking a remarkable 38% year-on-year increase. This substantial growth in legal talent and outstanding financial performance reaffirms our firm's position as a leading force in the legal landscape.
A key driver of our innovation is the House of Brands strategy, which goes beyond merely supporting lawyers in launching their own legal practices—we actively partner with them. Through this initiative, Excello Law provides strategic guidance, initial investment, business development support, branding, marketing, and compliance assistance. For those looking to scale further, we introduce them to potential investors. As of this reporting period, eight boutique legal brands have been established through this programme, including Roberts Law and Preston Law in 2023.
Technology remains central to our expansion and efficiency. Recent advancements include a new credit control system, adoption of Staffology for HR and payroll management, and the use of Pirical for talent acquisition and retention. Additionally, our tailored 1:1 onboarding programme, led by senior leadership, ensures seamless integration for new lawyers.
Excello Law is on a trajectory of sustainable growth - strategic investments, commitment to innovation, and differentiated approach ensure we remain at the forefront of the fee-share sector, delivering unrivalled opportunities for both lawyers and clients.

Page 1

 
EXCELLO LAW LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Business review
 
The Directors are pleased to note that Excello Law has continued to experience significant growth during the financial year. Our team of consultant lawyers has expanded, as has our national reach. Excello Law now operates across nine national offices, providing fully serviced workspaces designed to foster collaboration and client engagement.
Excello Law remains committed to supporting its lawyers through a dedicated Compliance Department, which plays a vital role in maintaining the highest regulatory standards. Headed by our Head of Risk and Compliance, the department ensures adherence to AML requirements, conflict checks, file reviews, and the SRA Code of Conduct. The firm has also doubled the size of its compliance team, reinforcing its commitment to risk management and regulatory compliance.

Principal risks and uncertainties
 
The Directors regularly assess the major risks to which the firm is exposed and remain committed to maintaining its strong position by upholding high standards of legal advice and data security.
Economic downturn
Excello Law is well-positioned to withstand economic downturns, having been founded during the 2008 financial crisis. The firm has historically found that while certain legal services, such as real estate and corporate law, may decline during downturns, demand for dispute resolution, insolvency, corporate restructuring, employment, and debt recovery tends to increase. Additionally, economic uncertainty often leads to opportunities for recruitment, as traditional law firms reduce headcounts.
Competitors
The legal sector has seen significant growth in the number of consultancy-based fee share firms, reflecting the model’s maturity. Excello Law continues to monitor the competitive landscape and remains focused on innovation, consolidation, and delivering high-quality services to sustain its impressive growth trajectory. A key differentiator is our House of Brands initiative, which goes far beyond anything else in the market. We provide a true partnership—offering an extensive, end-to-end solution that covers every aspect of launching and growing a legal practice. From strategy and initial investment to law firm setup, branding, marketing, business development, and operational support, we deliver a comprehensive platform that allows lawyers to build their practice while we handle the complexities of insurance, compliance, finance, and administration. This innovative programme fosters entrepreneurship in a way no other firm in the sector does, ensuring our lawyers have the strongest possible foundation for success.
Information Technology
IT is central to Excello Law’s business model, ensuring the security and efficiency of operations. The firm has invested in modernising its systems, appointing a Senior Technology and Innovation Officer to lead digital transformation efforts. A robust cybersecurity framework is in place, and the firm maintains Cyber Security insurance to mitigate risks. Regular assessments of IT infrastructure and supplier security protocols are conducted to safeguard client data. 
Professional Indemnity Insurance
Excello Law maintains a close relationship with its insurers and brokers to ensure it receives the best premium rates in the market. The firm’s compliance team works diligently to uphold the highest standards in risk management and regulatory compliance, ensuring a strong position within the insurance market.
 
Page 2

 
EXCELLO LAW LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Compliance
Excello Law’s Compliance Department plays a crucial role in maintaining regulatory standards and ensuring lawyers receive ongoing training and support. The department oversees AML compliance, conflict checks, file audits, and adherence to the SRA Code of Conduct. By fostering a culture of integrity and accountability, Excello Law ensures that its lawyers operate within a robust and compliant legal framework.
Changes to IR 35
The Directors continue to monitor regulatory changes, including developments in IR35 legislation. From inception, Excello Law has sought legal and tax advice to ensure compliance with the regulatory framework governing self-employed workers. The Directors remain confident that Excello Law’s model adheres to current legal requirements and will continue to review its structure in response to any legislative changes.

Financial key performance indicators
 
The following KPIs are used by the Directors to monitor the financial performance of the Company:
Revenue Growth - Revenue has grown £7,039,266, an increase of 62% since the previous year.
                                        
 2023                2022
Gross Profit:       £5,187,571     £4,233,198
Profit before tax:    £127,273     £2,232,876
The Directors also monitor cashflow closely.
            

Future developments

Excello Law is on a strong growth trajectory, driven by a commitment to sustainable expansion and delivering a solution unlike anything else in the crowded market. 
Excello Law stands out by offering a truly differentiated approach—one that prioritises innovation, tailored support, and strategic investment. Our unique fee-share consultancy model is built on a foundation of quality over quantity, ensuring we attract and retain entrepreneurial lawyers who value independence, flexibility, and the highest levels of operational support. As we continue on this upward trajectory, our focus remains on sustainable growth, international expansion, and fostering an environment where lawyers can build successful long-term careers.


This report was approved by the board on 10 March 2025 and signed on its behalf.


G Bisnought
Director

Page 3

 
EXCELLO LAW LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023

The directors present their report and the financial statements for the year ended 30 June 2023.

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 company during the year continued to be that of solicitors.

Results and dividends

The profit for the year, after taxation, amounted to £75,087 (2022 - £1,948,598).

A dividend of £Nil was declared during the year (2022 - £340,000).

Directors

The directors who served during the year were:

G Bisnought 
J H Losty 
S A James (appointed 21 November 2022)

Matters covered in the Group Strategic Report

nformation concerning the business review, principal risks and uncertanties, and future developments are included within the Strategic Report. 

Page 4

 
EXCELLO LAW LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023

Disclosure of information to auditor

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 auditor is 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 auditor is aware of that information.

This report was approved by the board on 10 March 2025 and signed on its behalf.
 


G Bisnought
Director

Page 5

 
EXCELLO LAW LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EXCELLO LAW LIMITED
 

Opinion


We have audited the financial statements of Excello Law Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 30 June 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the 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 or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 6

 
EXCELLO LAW LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EXCELLO LAW LIMITED (CONTINUED)


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the 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 the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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.


Page 7

 
EXCELLO LAW LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EXCELLO LAW LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 either intend 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 Group financial statements.


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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006, UK tax legislation and Solicitors Regulatory Authority. 
Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


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.


Other matters 
 

The prior year comparatives were not audited.


Page 8

 
EXCELLO LAW LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF EXCELLO LAW LIMITED (CONTINUED)


Use of our report
 

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







Mark Dickinson FCA (Senior Statutory Auditor)
for and on behalf of
Shaw Gibbs (Audit) Limited
Statutory Auditor
Wey Court West
Union Road
Farnham
Surrey
GU9 7PT

11 March 2025
Page 9

 
EXCELLO LAW LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

As restated
2023
2022
Note
£
£

  

Turnover
 4 
18,377,641
11,338,375

Cost of sales
  
(13,190,070)
(7,105,177)

Gross profit
  
5,187,571
4,233,198

Administrative expenses
  
(5,319,750)
(3,265,645)

Other operating charges
  
(8)
1,263,085

Operating (loss)/profit
 5 
(132,187)
2,230,638

Interest receivable and similar income
 9 
261,265
4,304

Interest payable and similar expenses
 10 
(1,805)
(2,066)

Profit before tax
  
127,273
2,232,876

Tax on profit
 11 
(52,186)
(284,278)

Profit for the financial year
  
75,087
1,948,598

Profit for the year attributable to:
  

Owners of the parent company
  
75,087
1,948,598

  
75,087
1,948,598

Total comprehensive income attributable to:
  

There were no recognised gains and losses for 2023 or 2022 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 19 to 40 form part of these financial statements.

Page 10

 
EXCELLO LAW LIMITED
REGISTERED NUMBER: 11494075

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
871,694
-

Tangible assets
 14 
82,214
32,051

  
953,908
32,051

Current assets
  

Debtors: amounts falling due within one year
 16 
5,984,829
4,906,622

Cash at bank and in hand
 17 
936,781
530,984

  
6,921,610
5,437,606

Creditors: amounts falling due within one year
 18 
(6,000,090)
(3,687,587)

Net current assets
  
 
 
921,520
 
 
1,750,019

Total assets less current liabilities
  
1,875,428
1,782,070

Provisions for liabilities
  

Deferred taxation
 19 
(18,271)
-

  
 
 
(18,271)
 
 
-

Net assets excluding pension asset
  
1,857,157
1,782,070

Net assets
  
1,857,157
1,782,070


Capital and reserves
  

Called up share capital 
 20 
100
100

Profit and loss account
  
1,857,057
1,781,970

Equity attributable to owners of the parent Company
  
1,857,157
1,782,070

  
1,857,157
1,782,070


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 March 2025.




G Bisnought
Director

The notes on pages 19 to 40 form part of these financial statements.

Page 11

 
EXCELLO LAW LIMITED
REGISTERED NUMBER: 11494075

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023

As restated
2023
2022
Note
£
£

Fixed assets
  

Intangible assets
 13 
53,050
-

Tangible assets
 14 
81,201
32,051

Investments
 15 
867,437
-

  
1,001,688
32,051

Current assets
  

Debtors: amounts falling due within one year
 16 
5,770,690
4,906,622

Cash at bank and in hand
 17 
811,973
530,984

  
6,582,663
5,437,606

Creditors: amounts falling due within one year
 18 
(5,573,256)
(3,687,587)

Net current assets
  
 
 
1,009,407
 
 
1,750,019

Total assets less current liabilities
  
2,011,095
1,782,070

  

Provisions for liabilities
  

Deferred taxation
 19 
(18,271)
-

  
 
 
(18,271)
 
 
-

Net assets excluding pension asset
  
1,992,824
1,782,070

Net assets
  
1,992,824
1,782,070


Capital and reserves
  

Called up share capital 
 20 
100
100

Profit and loss account brought forward
  
1,781,970
173,373

Profit for the year
  
210,754
1,948,597

Other changes in the profit and loss account

  

-
(340,000)

Profit and loss account carried forward
  
1,992,724
1,781,970

  
1,992,824
1,782,070


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 March 2025.

G Bisnought
Director

The notes on pages 19 to 40 form part of these financial statements.
Page 12

 
EXCELLO LAW LIMITED
REGISTERED NUMBER: 11494075
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 30 JUNE 2023


Page 13

 
EXCELLO LAW LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£

At 1 July 2022 (as previously stated)
100
745,272
745,372
745,372

Prior year adjustment
-
1,036,698
1,036,698
1,036,698

At 1 July 2022 (as restated)
100
1,781,970
1,782,070
1,782,070



Profit for the year
-
75,087
75,087
75,087


At 30 June 2023
100
1,857,057
1,857,157
1,857,157


The notes on pages 19 to 40 form part of these financial statements.


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£

At 1 July 2021
2
173,372
173,374
173,374



Restated profit for the year
-
1,948,598
1,948,598
1,948,598

Dividends: Equity capital
-
(340,000)
(340,000)
(340,000)

Shares issued during the year
98
-
98
98


At 30 June 2022
100
1,781,970
1,782,070
1,782,070


The notes on pages 19 to 40 form part of these financial statements.

Page 14

 
EXCELLO LAW LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2022 (as previously stated)
100
745,272
745,372

Prior year adjustment
-
1,036,698
1,036,698

At 1 July 2022 (as restated)
100
1,781,970
1,782,070



Profit for the year
-
210,754
210,754


At 30 June 2023
100
1,992,724
1,992,824


The notes on pages 19 to 40 form part of these financial statements.

Page 15

 
EXCELLO LAW LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2021
2
173,373
173,375



Restated profit for the year
-
1,948,597
1,948,597


Contributions by and distributions to owners

Dividends: Equity capital
-
(340,000)
(340,000)

Shares issued during the year
98
-
98


Total transactions with owners
98
(340,000)
(339,902)


At 30 June 2022
100
1,781,970
1,782,070


The notes on pages 19 to 40 form part of these financial statements.

Page 16

 
EXCELLO LAW LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
75,087
1,948,598

Adjustments for:

Amortisation of intangible assets
90,960
-

Depreciation of tangible assets
19,543
7,326

Loss on disposal of tangible assets
1,181
-

Interest paid
1,804
2,066

Interest received
(261,265)
(4,304)

Taxation charge
52,186
284,278

(Increase) in debtors
(1,376,441)
(4,062,598)

Decrease/(increase) in amounts owed by participating ints
202,607
(309,244)

Increase in creditors
2,352,764
3,048,160

Increase in amounts owed to participating ints
133,553
-

Corporation tax (paid)
(118,754)
(12,277)

Net cash generated from operating activities

1,173,225
902,005


Cash flows from investing activities

Purchase of intangible fixed assets
(962,654)
-

Purchase of tangible fixed assets
(73,182)
(39,377)

Interest received
261,265
4,304

Net cash from investing activities

(774,571)
(35,073)

Cash flows from financing activities

Issue of ordinary shares
-
98

New secured loans
8,947
-

Dividends paid
-
(340,000)

Interest paid
(1,804)
(2,066)

Net cash used in financing activities
7,143
(341,968)

Net increase in cash and cash equivalents
405,797
524,964

Cash and cash equivalents at beginning of year
530,984
6,020

Cash and cash equivalents at the end of year
936,781
530,984


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
936,781
530,984

936,781
530,984


Page 17

 
EXCELLO LAW LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2023





At 1 July 2022
Cash flows
Acquisition and disposal of subsidiaries
At 30 June 2023
£

£

£

£

Cash at bank and in hand

530,984

527,568

(121,771)

936,781

Debt due within 1 year

-

-

(8,947)

(8,947)


530,984
527,568
(130,718)
927,834

The notes on pages 19 to 40 form part of these financial statements.

Page 18

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1.


General information

Excello Law Limited (11494075) is a private company limited by shares and registered in England and Wales. The registered office is 110 Bishopsgate, London, EC2N 4AY.

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

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

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

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

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss

Page 19

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.4

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.

 
2.5

Operating leases: the Group as lessee

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.

 
2.6

Interest income

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

 
2.7

Pensions

Defined contribution pension plan

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

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

Page 20

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.8

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.


Page 21

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.9

Intangible assets

Goodwill

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

Other intangible assets

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

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

 The estimated useful lives range as follows:

Goodwill
-
10
years
Software
-
3
years

 
2.10

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Fixtures and fittings
-
25%
reducing balance
Office equipment
-
25%
reducing balance and 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.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 22

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.12

Debtors

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

 
2.13

Cash and cash equivalents

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

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

 
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.

 
2.15

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.

Page 23

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.16

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

 
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.

Page 24

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies (as described in note 1), management is required to make judgments, estimates and assumptions. These estimates and underlying assumptions are reviewed on an ongoing basis. 
The below sources of estimation uncertainty have a significant effect on the amounts recognised in the financial statements:
Amounts recoverable on contracts - The assessment of amounts recoverable on contracts involves various judgements, estimates and assumptions being made. The valuation is based upon the time recorded by fee earners on client work, subsequent invoices raised and recoveries made on work carried out.  A recovery rate is used which takes account of amounts recovered in previous accounting periods
Consultants costs provisions - Consultants are due an agreed percentage of profit costs when worked carried out for clients have been both invoiced and paid. An estimate is accrued for these costs where recoverable on contracts and trade debtors existed at the year end, and where invoices had not already been received from the consultants at that date, which is based on 5 years average of consultancy costs compared to revenue.
Bad debt provision - Provision is included for trade debtors which are not expected to be recovered. The provision  is estimated based upon the expected recoverability of invoices at the year end and the length of time they have been outstanding. 
 


4.


Turnover

As restated
2023
2022
£
£

Fees receivable
17,478,929
10,355,283

Recharged salary costs
898,712
380,247

Management charges
-
602,845

18,377,641
11,338,375


Analysis of turnover by country of destination:

As restated
2023
2022
£
£

United Kingdom
18,030,298
10,851,402

Rest of Europe
276,746
182,184

Rest of the world
70,597
304,789

18,377,641
11,338,375


The Rest of Europe and Rest of the world turnover is based on billed time.

Page 25

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

5.


Operating (loss)/profit

The operating (loss)/profit is stated after charging:

2023
2022
£
£

Depreciation
19,543
23,759

Exchange differences
72
-

Other operating lease rentals
627,072
373,613

Amortisation
90,960
-


6.


Auditor's remuneration

2023
2022
£
£

Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements
41,500
-


7.


Employees

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


Group
Group
Company
Company
2023
As restated 2022
2023
As restated 2022
£
£
£
£


Wages and salaries
2,333,402
1,188,457
2,241,522
1,188,457

Social security costs
277,763
150,831
277,763
150,831

Cost of defined contribution scheme
51,756
18,002
51,801
18,002

2,662,921
1,357,290
2,571,086
1,357,290


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



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Directors
5
2
3
2



Employees
41
30
38
30

46
32
41
32

Page 26

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
901,953
520,531

Group contributions to defined contribution pension schemes
14,500
-

916,453
520,531


During the year retirement benefits were accruing to 1 director (2022 - NIL) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £575,498 (2022 - £424,501).

The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2022 - £NIL).

The amount of the accrued lump sum in respect of the highest paid director at 30 June 2023 amounted to £NIL (2022 - £NIL).


9.


Interest receivable

2023
2022
£
£


Other interest receivable
261,265
4,304

261,265
4,304


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
605
-

Other interest payable
1,200
2,066

1,805
2,066

Page 27

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
33,864
284,278

Adjustments in respect of previous periods
51
-


33,915
284,278


Total current tax
33,915
284,278

Deferred tax


Origination and reversal of timing differences
18,271
-

Total deferred tax
18,271
-


Tax on profit
52,186
284,278
Page 28

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
127,274
2,232,876


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
31,819
424,246

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
20,951
329

Capital allowances for year in excess of depreciation
811
1,371

Adjustments to tax charge in respect of prior periods
22,271
(9,762)

Other timing differences leading to an increase (decrease) in taxation
1,661
(84)

Non-taxable income
-
(101,386)

Adjustment for short accounting periods leading to an increase (decrease) in the tax charge
(35,591)
-

Other differences leading to an increase (decrease) in the tax charge
-
(40,073)

Group relief
28,990
-

Marginal relief
(22,003)
-

Remeasurement of deferred tax
3,277
9,637

Total tax charge for the year
52,186
284,278






12.


Dividends

2023
2022
£
£


Dividends paid on equity capital
-
340,000

-
340,000

Page 29

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

13.


Intangible assets

Group





Computer software
Goodwill
Total

£
£
£



Cost


Additions
53,050
909,604
962,654



At 30 June 2023

53,050
909,604
962,654



Amortisation


Charge for the year on owned assets
-
90,960
90,960



At 30 June 2023

-
90,960
90,960



Net book value



At 30 June 2023
53,050
818,644
871,694



At 30 June 2022
-
-
-



Company




Computer software

£



Cost


Additions
53,050



At 30 June 2023

53,050






Net book value



At 30 June 2023
53,050



At 30 June 2022
-

Page 30

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

14.


Tangible fixed assets

Group






Fixtures and fittings
Office equipment
Total

£
£
£



Cost or valuation


At 1 July 2022
37,923
1,454
39,377


Additions
65,718
7,464
73,182


Disposals
-
(1,454)
(1,454)



At 30 June 2023

103,641
7,464
111,105



Depreciation


At 1 July 2022
7,053
273
7,326


Charge for the year on owned assets
15,387
6,451
21,838


Disposals
-
(273)
(273)



At 30 June 2023

22,440
6,451
28,891



Net book value



At 30 June 2023
81,201
1,013
82,214



At 30 June 2022
30,870
1,181
32,051

Page 31

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

           14.Tangible fixed assets (continued)


Company






Fixtures and fittings
Office equipment
Total

£
£
£

Cost or valuation


At 1 July 2022
37,923
1,454
39,377


Additions
65,718
-
65,718


Disposals
-
(1,454)
(1,454)



At 30 June 2023

103,641
-
103,641



Depreciation


At 1 July 2022
7,053
273
7,326


Charge for the year on owned assets
15,387
-
15,387


Disposals
-
(273)
(273)



At 30 June 2023

22,440
-
22,440



Net book value



At 30 June 2023
81,201
-
81,201



At 30 June 2022
30,870
1,181
32,051






Page 32

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


Additions
867,437



At 30 June 2023
867,437





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

MBC Law Limited
The Colmore Building, 20 Colmore Circus Queensway, Birmingham, B4 6AT
Ordinary
100%

For the year ended 30 June 2023, MBC Law Limited was entitled to the exemption from the
requirement to have an audit under the provisions of section 479A of the Companies Act 2006. The
parent undertaking has given a guarantee under section 479C in respect of this financial year.


16.


Debtors

Group

Group
As restated
Company

Company
As restated
2023
2022
2023
2022
£
£
£
£


Trade debtors
2,338,907
1,728,058
2,211,869
1,728,059

Amounts owed by joint ventures and associated undertakings
222,846
425,454
223,562
425,454

Other debtors
150,600
248,525
149,113
248,524

Prepayments and accrued income
194,474
80,632
186,141
80,632

Amounts recoverable on contracts
3,078,002
2,423,953
3,000,005
2,423,953

5,984,829
4,906,622
5,770,690
4,906,622


Page 33

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

17.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
936,781
530,984
811,973
530,984



18.


Creditors: Amounts falling due within one year

Group

Group
As restated
Company

Company
As restated
2023
2022
2023
2022
£
£
£
£

Bank loans
8,947
-
-
-

Trade creditors
2,086,458
1,174,423
1,788,799
1,174,423

Amounts owed to other participating interests
133,553
-
133,553
-

Corporation tax
153,062
335,821
153,062
335,821

Other taxation and social security
471,595
316,599
416,132
316,599

Other creditors
152,467
15,420
152,467
15,420

Accruals and deferred income
2,994,008
1,845,324
2,929,243
1,845,324

6,000,090
3,687,587
5,573,256
3,687,587


The bank loan is secured by a fixed and floating charge. The floating charge covers all the property or undertaking of the subsidary, MBC Law Limited.

Page 34

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

19.


Deferred taxation


Group





2023


£






Charged to profit or loss
(18,271)



At end of year
(18,271)

Company




2023


£






Charged to profit or loss
(18,271)



At end of year
(18,271)

The deferred taxation balance is made up as follows:

Group
Company
2023
2023
£
£

Accelerated capital allowances
(21,305)
(21,305)

Short term timing differences
3,034
3,034

(18,271)
(18,271)


20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



50 (2022 - 50) Ordinary A shares of £1.00 each
50
50
50 (2022 - 50) Ordinary B shares of £1.00 each
50
50

100

100


Page 35

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

21.
 

Business combinations

On 28th October 2022 Excello Law Limited acquired 100% of the share capital of MBC Law Limited. This was acquired under the acquisition method.

Acquisition of MBC Law Limited

Recognised amounts of identifiable assets acquired and liabilities assumed

Book value
Fair value adjustments
Fair value
£
£
£

Fixed Assets

Tangible
4,011
-
4,011

4,011
-
4,011

Current Assets

Debtors
122,131
-
122,131

Cash at bank and in hand
318,229
-
318,229

Total Assets
444,371
-
444,371

Creditors

Due within one year
(482,682)
-
(482,682)

Due after more than one year
(3,856)
-
(3,856)

Total Identifiable net liabilities
(42,167)
-
(42,167)


Goodwill
909,604

Total purchase consideration
867,437

Consideration

£


Cash
435,250

Deferred consideration
427,437

Directly attributable costs
4,750

Total purchase consideration
867,437

Page 36

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

21.Business combinations (continued)

Cash outflow on acquisition

£


Purchase consideration settled in cash, as above
867,437

867,437

Less: Cash and cash equivalents acquired
(318,229)

Net cash outflow on acquisition
549,208

The goodwill arising on acquisition is attributable to the excess paid above the value of the net assets.
The nature of these intangible assets include the consultants and client lists of MBC Law and the increased visibility this acquisition gives Excello Law in the market.

The results of MBC Law Limited since acquisition are as follows:

Current period since acquisition
£

Turnover
1,194,658

Loss for the period since acquisition
(44,704)

Page 37

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

22.


Prior year adjustment

A prior year adjustment has been made to amend the work in progress provision and associated consultancy costs accrual due to a correction in calculation, using data that was available at the time, to bring them in line with the 2023 methodology.  This has resulted in a decrease in turnover and amounts recoverable on long term contracts in 2022 of £504,695 and a decrease in expenditure and accruals of £453,317. Resulting in a net reduction in 2022 profits of £51,378.
The retained reserves brought forward from 2021 have not been restated for a similar amendment as the net impact would be immaterial.
Annually a provision for unpaid consultants is made based on the recoverability of their client invoicing.  This was previously included within prepayments but has now been reclassified as a provision against trade creditors.  The amount reclassified is £376,900.
In the period to 30 June 2022, the existing trade of Excello Law Limited (Company # 11494075) was transferred to an associated company.  Simultaneously, part of the trade of Excello Law Limited (Company #06284764) was transitioned to Excello Law Limited (Company #11494075)
The opening transfer of both trades has been updated to reflect the legal position more accurately at the date of transfer.  A prior year adjustment has been made in respect of which company settled and had the legal right to a third party debtor, VAT, corporation tax liability as well as taxation recoverable.  As a result of this adjustment, profits have been increased by £1,263,085; debtors by £646,612 and Creditors decreased by £612,136.
In the prior year, recharged salary costs of £380,247 have been incorrectly netted off within expenditure in the profit and loss.  These have now been restated to show as gross within income and expenditure.


23.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £51,756 (2022 - £18,002). Contributions totalling £10,789 (2022 - £5,248) were payable to the fund at the reporting date and are included in creditors.

Page 38

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

24.


Commitments under operating leases

At 30 June 2023 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Not later than 1 year
199,279
337,172
199,145
337,172

Later than 1 year and not later than 5 years
12,817
638,695
12,817
638,695

Later than 5 years
-
390,081
-
390,081

212,096
1,365,948
211,962
1,365,948

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Other operating leases

Not later than 1 year
6,856
15,707
6,856
15,707

Later than 1 year and not later than 5 years
18,552
-
18,552
-

25,408
15,707
25,408
15,707

Page 39

 
EXCELLO LAW LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

25.


Related party transactions

During the year Excello Law Limited purchased 100% of the share capital of MBC Law Limited.  Excello Law LImited has taken the exemption under FRS102 Para 33.1A and has not disclosed any intra group transactions with MBC Law Limited.

Excello Libertas Limited is an associated company, under the control of G Bisnought and J H Losty

At the year-end, £222,494 (2022 - £387,645) was owed by Excello Libertas Limited to Excello Law Limited.  As a result of the prior year adjustment, Note 22 above, £331,018 has been recognised as an Other Operating charge in the Profit and Loss.  Costs of £352 (2022 - £Nil) were recharged by Excello Law Limited to Excello Libertas Limited.

G Bisnought and J H Losty own 49% of the shares in Lowry Legal Limited.

Sales of £359,324 (2022 - £101,866) were made from Excello Law Limited to Lowry Legal Limited during the year.  Purchases of £644,624 (2022 - £Nil) were made by Excellow Law Limited from Lowry Legal Limited.

At the year end, £133,553 (2022 - £37,801owed to) was owed by Excello Law Limited to Lowry Legal Limited.

At the year end £141,678 (2022 - £128,634owed to) was owed from the company to G Bisnought. The maximum balance outstanding in the year was £196,370 and credit of £270,000 was received in settlement of the outstanding debt.

At the year end £45(2022 - £45) was owed by J H Losty to the company.

26.


Controlling party

During the year the company was under the control of the directors G Bisnought and J H Losty.
 
Page 40