REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2024 |
for |
Old Mill Financial Planning Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2024 |
for |
Old Mill Financial Planning Limited |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Contents of the Financial Statements |
for the Year Ended 30 June 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Income Statement | 12 |
Other Comprehensive Income | 13 |
Balance Sheet | 14 |
Statement of Changes in Equity | 15 |
Notes to the Financial Statements | 16 |
Old Mill Financial Planning Limited |
Company Information |
for the Year Ended 30 June 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
5 Barnfield Crescent |
Exeter |
Devon |
EX1 1QT |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Strategic Report |
for the Year Ended 30 June 2024 |
The directors present their strategic report for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
The company started trading in October 2021, following the successful restructure of Old Mill Financial Planning LLP (now Old Mill Financial Planning 2021 LLP) and other Old Mill LLPs into a new group under Old Mill Topco Limited. |
The purpose of the company is unchanged from last year, being to act as financial advisers to a range of clients across the South West and wider UK. |
In common with the rest of the Old Mill Group, it is fair to say that the year was a challenging one. |
Our financial key performance indicators for the year were as follows: |
Cash balance as of 30 June 2024 of £520,672 (2023 £570,841) |
Net assets as of 30 June 2024 of £2,583,507 (2023 £2,224,900) |
Income growth of 4.42% (2023 not comparable) |
Underlying EBITDA of £1,441,676 and EBITDA margin of 17% (2023 £1,917,349 & 23%) |
These results are below what the directors consider to be acceptable for the business. Accordingly, during the year, actions were taken to ensure that the year ended with the business in a more robust position for future trading. |
1. Leadership changes |
A strategy of growth via the implementation of a client segmentation policy was launched by the management team of Old Mill Wealth Management during the year. This had a detrimental effect on staff morale, and with this a fall-off in overall business performance. Accordingly, changes to the leadership structure were made, with a new strategy (more in-keeping with Old Mill's traditional focus on client service and people development) launched alongside this. |
Also during the year, a new Governance and Leadership structure was implemented in Old Mill Topco Limited, the company's parent company, which the company will directly benefit from. |
These changes included: |
- | An amended Chief Executive Officer role, with a new CEO appointed with responsibility for the firm's longer-term strategy, culture and people strategy, and shareholder value. Mark Neath, formerly our Head of Corporate Finance, took on this role with effect from 1 July 2024. |
- | The creation of a new Managing Director role, with the MD having responsibility for the running of the firm and the delivery of the current year's plan. From 1 July, Jolyon Stonehouse, one of our founding partners, took on the role of MD. |
In simple terms, the CEO has the remit to "Change Old Mill" while the MD has the remit to "Run Old Mill". |
The Board of Old Mill Topco Limited is confident that the changes implemented in respect of governance, position the company strongly for the years ahead. |
These changes are accompanied by a shift in the strategy for Old Mill Group, including the company, which will ensure that we put our clients and our people are at the heart of everything we do. This strategy was finalised during the early part of the year to 30 June 2025, and formally launched firmwide at an All Firm event on 18 September 2024. Initial feedback from our people has been extremely positive. |
After the end of the reporting period, our financial position was further strengthened as a result of the capitalisation of an inter-company loan of £3,709,046 between the company and its parent company, Old Mill Topco Limited, thus increasing the net assets to over £5m. Further information is provided in note 21. |
Exceptional costs |
Changes to the previous leadership team gave rise to exceptional costs which impacted the company's profitability in the year. |
During the year, costs incurred in respect of the restructure amounted to £408,033. The total expense, which is exceptional in nature, is included in administration expenses in the Profit and Loss Account. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Strategic Report |
for the Year Ended 30 June 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks facing Old Mill Financial Planning Ltd are as follows: |
1 | Economic risks, and in particular, the ongoing risk of rising interest rates and inflation, though these are seen to be reducing compared to previous years. That being said, these risks continue to be compounded by the increase in conflicts around the world, notable in Europe and the Middle East. There is also the potential future impact of a devaluation of the US dollar or tariffs following the outcome of the 2024 US presidential election. To help manage these risks, multi-year financial forecasts have been produced, with different scenarios run for different levels of interest rates. We also maintain a strong balance sheet which gives us a strong platform from which to trade through a recession. |
2 | The key to the Company's success is our people. We continue to manage this risk by offering a competitive range of salary and benefits, both of which we are continually benchmarking against the wider marketplace - please see the "Employees" section below for more details, including an update on our Employee benefits platform. We also have a strong commitment to the training and development of our people, giving them the opportunities they want for rewarding and successful careers. |
3 | As ever with any regulated industry, there is the risk of claim related costs. We continue to manage this risk in part by having a strong focus on technical training and ongoing improvement for our people, which in turn leads to a high standard of client service. This includes the use of Compliance-related KPIs as part of the annual appraisal process for our Partners and other key client advisers. In addition, we have robust PI cover in place. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Strategic Report |
for the Year Ended 30 June 2024 |
SECTION 172(1) STATEMENT |
Stakeholder engagement and promoting the success of Old Mill |
Each of the Directors is mindful of their duties under section 172 (s172) to run the company for the benefit of its shareholder, and in doing so, to take into account the long-term impact of any decisions on stakeholder relationships and the impact of its activities on its reputation for high standards of business conducted. This statement addresses the ways in which we as a Board deliver on this responsibility. |
Clients |
The company continues to provide a comprehensive range of financial planning and wealth management services to its clients. |
Investment is a key part of being able to maintain and enhance service levels to our clients. During the year, we continued to invest in our core back-office system, Curo. This investment will make it easier for our people to offer high quality advice and service to our clients. |
Our Business Development and Marketing team also have a major role to play when it comes to engagement with our clients. During the year to 30 June 2024, they helped publish a wide range of articles and case studies to help promote to clients (and prospective clients) the high levels of expertise within Old Mill and the wide range of services we offer. This includes our regular investment newsletter, which is very popular with many of our clients. |
Employees |
The expertise, commitment, loyalty and dedication of our people are the single most important driver of our long term, sustainable success. Accordingly, we are firmly committed to ensuring equal opportunities and equal access to career development for everyone who works for Old Mill. |
We are proud that life in Old Mill is heavily influenced by our core values of Open-minded, Passionate and Lovely to work with, and indeed, these formed a core part of the way our business restructure was implemented. This included announcing the structure on a firmwide Teams call rather than simply relying on email, and following it up with a series of in-person roadshow / Q&A meetings across all our offices. |
We continue to invest in training and development in order to support the career aspirations of our people. Some of the headline statistics from the year in respect of this include: |
- 7 new recruits |
- 8 people who enjoyed promotions and / or successfully completed their professional qualifications |
In terms of ongoing engagement, there are regular team social events, ranging from low-key, such as local team lunches and rounders matches, right up to our annual Christmas parties. We have also reintroduced an All Firm away day so that everyone in the business is aware of our plans for the business, ranging from short term operational matters through to longer term strategic initiatives. |
Last year's report talked about the introduction of "Old Mill Xtra", a new employee platform which helps our people to save money and take care of their wellbeing. It was extremely pleasing to note that over the first year of the platform's life, the majority of our people made use of it. |
We have also continued to promote the Wellbeing of our people. During the year, activities included: |
- | A Get moving challenge to support Mental Health Awareness week, |
- | Regular Menopause café online meetings, open to all staff, which included a guest speaker slot from menopause nutritionist Julia Witherspoon, and |
- | Encouraging everyone to take a break from work to have a drink and chat with a colleague as part of Dementia UK's Time for a Cuppa Week. |
We continue to hold quarterly presentations for all employees, which is an opportunity to update them on business performance, strategic initiatives and year-to-date financial results. We have also reinvigorated our staff forum meetings, with our CEO, MD and People Director now all attending regular face-to-face meetings in all offices. |
Shareholders |
Our internal management accounts and KPIs are shared with the Board of Old Mill Topco Limited every month. The senior leaders and employee shareholders of Old Mill Topco Limited also receive regular briefings on business performance and strategic developments. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Strategic Report |
for the Year Ended 30 June 2024 |
Suppliers |
We are committed to treating our suppliers in the same way that we like our own clients to treat Old Mill. In particular, we operate a system of twice-monthly supplier payment runs to ensure invoices are paid on a timely basis. This is particularly important for all the small, local businesses that supply Old Mill. |
Community |
As a company firmly rooted in the South West, links with our local community are vitally important to us, and indeed, many of our employees and clients regularly socialise together away from work, for example at charity events. |
We frequently undertake events to support local charities (for example, sponsored cake sales), and also provide support and sponsorship to local clubs, charities and events, such as Young Farmers groups. |
Local causes supported during the year included: |
- | The Rotary Clubs of Shepton Mallet and Yeovil |
- | Wells Carnival |
- | Yeovil Hospital & School in a bag |
- | Stoke Sub Hamdon Football Club |
- | Wells and Horrington Cricket Club |
- | Hannah's Willberry Wonder Pony Charity |
We have also continued to be active in the wider professional community. Highlights over the year include: |
- | Entreconf - Winner, best financial advisor firm |
- | Exeter living - Winner, best financial firm |
The environment |
We are committed to improving our carbon footprint. For example, our Wells Office is fitted with solar panels, and we have now completed the replacement of the lighting in our Yeovil office (our largest premises) with more energy efficient LED units. In addition, every office is fully equipped with a range of recycling bins as well as video conferencing equipment to help to reduce the need for physical travel for meetings where possible. |
Our Old Mill Xtra platform (mentioned above) promotes a cycle to work scheme for our employees. |
CONCLUSION |
The Directors consider the company to have had a difficult year. There have been a number of positive highlights, but equally more challenges than we would like. |
Difficult decisions have been taken, which although painful, will help position the business to deliver on its long term objectives, both financial and non-financial. |
ON BEHALF OF THE BOARD: |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Report of the Directors |
for the Year Ended 30 June 2024 |
The directors present their report with the financial statements of the company for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of financial advisers. |
DIVIDENDS |
No dividends will be distributed for the year ended 30 June 2024. |
The total distribution of dividends for the year ended 30 June 2023 was £1,140,000. |
FUTURE DEVELOPMENTS |
The heart of Old Mill's proposition is delivering joined-up, relationship-led advice to our clients. The key to this, and to our future growth, is our commitment to enabling our people to learn and grow. To this end, we have relaunched our Learning & Development programme to support everyone in achieving their ambitions. |
Employee engagement and client satisfaction are key objectives, and the business will also build on the changes introduced at the end of the year ended 30 June 2024, with improved levels of profitability a further target. |
As part of the delivery of the long term strategy, the Directors remain open-minded to both the delivery of new services, and improving the way existing services are delivered. They also remain committed to making the necessary investments (be it in people, services or technology) to enable the Company to meet its growth targets. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The Directors are responsible for monitoring financial risk. |
The Directors consider the Company to have a level of exposure that is normal for the sector in terms of price, credit, liquidity and cash flow risks, and are committed to reducing risks in all these areas where possible. |
The Company does not enter into any formally designated hedging arrangements. |
QUALIFYING THIRD PARTY INDEMNITY PROVISIONS |
The company has made qualifying third-party indemnity provisions for the benefit of its directors. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Report of the Directors |
for the Year Ended 30 June 2024 |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Old Mill Financial Planning Limited |
Opinion |
We have audited the financial statements of Old Mill Financial Planning Limited (the 'company') for the year ended 30 June 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 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 company's affairs as at 30 June 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the 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. |
Report of the Independent Auditors to the Members of |
Old Mill Financial Planning Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page seven, 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 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 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 company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Old Mill Financial Planning Limited |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the Company through discussions with the directors and other management, and from our commercial knowledge and experience; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation, employment, health and safety legislation and the FCA; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with industry regulators, and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. |
We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators, and the Company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Old Mill Financial Planning Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
5 Barnfield Crescent |
Exeter |
Devon |
EX1 1QT |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Income Statement |
for the Year Ended 30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT | 5 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Other Comprehensive Income |
for the Year Ended 30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Balance Sheet |
30 June 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Statement of Changes in Equity |
for the Year Ended 30 June 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2024 |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements |
for the Year Ended 30 June 2024 |
1. | STATUTORY INFORMATION |
Old Mill Financial Planning Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared on the going concern basis and under the historical cost convention. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by 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 disclosing Key Management Personnel Compensation. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the Company's accounting policies, which are described below, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are accounted for in the period in which the estimate is revised if the revision only affects that period, or in the period of revision and future periods if the revision affects both current and future periods. |
The following judgements have had the most significant effect on amounts recognised in the financial statements: |
The value of unbilled commission income is shown within prepayments and accrued income. In arriving at the carrying value shown in the balance sheet, judgements are made about the estimated billable value on a case by case basis.The provision for unbilled commission at the year end was £646,733 (2023 £601,315). |
There is an element of estimation and judgement made by the company when considering the bad debt provision included within trade debtors. The value of the client balances recoverable is considered on a case by case basis. The provision for bad debts against the trade debtor balance at the year end was £23,275 (2023 £30,453). |
In determining the estimated life of goodwill the company has considered the average life of a client and concluded periods of 8 and 20 years to be appropriate. Each year the company reviews this policy to ensure it remains appropriate. For further information in respect of year end balances refer to note 10. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax. |
Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirers 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 to the Statement of comprehensive income over its useful economic life. |
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 - 8 years & 20 years |
Financial instruments |
(i) Financial assets |
Basic financial assets, including trade and other debtors are initially recognised at the transaction price and therefore stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors, bank loans and other loans are initially recognised at transaction price, unless the arrangement constitutes a financing transaction. |
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Taxation |
Taxation for the year comprises of current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. |
Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
Exceptional items |
The company classifies certain one-off charges or credits that have a material impact on the company's financial results as 'exceptional items'. These are disclosed separately to provide further understanding of the financial performance of the company. |
Employee benefits; termination payments |
Where employees are entitled to benefits as a result of termination of employment, such benefits are charged to the Income Statement immediately. Where the liability is unpaid at the year end any amount outstanding is recognised as a creditor due in less than one year. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
30.6.24 | 30.6.23 |
£ | £ |
An analysis of turnover by geographical market is given below: |
30.6.24 | 30.6.23 |
£ | £ |
United Kingdom |
Europe |
North America | 1,616 | - |
Other | 4,516 | 7,470 |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
4. | EMPLOYEES AND DIRECTORS |
30.6.24 | 30.6.23 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
30.6.24 | 30.6.23 |
Directors | 4 | 4 |
Productive | 32 | 30 |
Support | 31 | 33 |
30.6.24 | 30.6.23 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
30.6.24 | 30.6.23 |
£ | £ |
Emoluments etc |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.6.24 | 30.6.23 |
£ | £ |
Goodwill amortisation |
Auditors' remuneration |
Bad debts | ( |
) |
Reorganisation expense (note 9) |
In accordance with SI 2008/489 the company has not disclosed the fees payable to the company's auditors for 'Other services' as this information is included in the consolidated financial statements of Old Mill Topco Limited. |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.24 | 30.6.23 |
£ | £ |
Intercompany loan and other |
interest |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.6.24 | 30.6.23 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax has been charged at 25% . |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
30.6.24 | 30.6.23 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
Effects of: |
Expenses not deductible for tax purposes |
Utilisation of tax losses | ( |
) | ( |
) |
Total tax charge | 194,848 | 304,438 |
8. | DIVIDENDS |
30.6.24 | 30.6.23 |
£ | £ |
Ordinary shares of £0.01 each |
Interim |
9. | EXCEPTIONAL ITEMS |
During the year, costs were incurred in respect of a restructure of the parent company's Board, including its Executive team, amounting to £195,149. This figure includes the payment of settlement agreements, external legal advice and the cost of additional HR and Operations support required by the business during the restructure period. The total expense is included in administration expenses in the Income Statement. |
Additional costs in respect of a business restructure amounted to £212,884. This figure includes settlement payments and external legal advice. This expense is also included in administration expenses in the Income Statement. |
Total exceptional costs for the year were therefore £408,033. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
10. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
AMORTISATION |
At 1 July 2023 |
Amortisation for year |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
Amortisation is included in administrative expenses within the financial statements. |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.24 | 30.6.23 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Deferred tax asset |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.24 | 30.6.23 |
£ | £ |
Other loans (see note 14) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 10,521 | 12,245 |
Other creditors |
Accruals and deferred income |
Other creditors include deferred consideration payable as part of the acquisition of Old Mill Financial Planning LLP (now Old Mill Financial Planning 2021 LLP) in 2021. This is repayable via instalments. |
Included within accruals and deferred income are termination benefits of £100,889 relating to redundancy payments, national insurance and pension costs. |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.6.24 | 30.6.23 |
£ | £ |
Amounts owed to group undertakings |
Other creditors |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - continued |
Other creditors due after more than one year relate to deferred consideration payable as part of the acquisition of Old Mill Financial Planning LLP (now Old Mill Financial Planning 2021 LLP) in 2021. Total deferred consideration included within creditors, falling due both within one year (see note 12 above) and over one year, totals £639,918 (2023: £883,321). |
14. | LOANS |
An analysis of the maturity of loans is given below: |
30.6.24 | 30.6.23 |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
15. | DEFERRED TAX |
£ |
Provided during year | ( |
) |
Balance at 30 June 2024 | ( |
) |
The provision for the deferred tax consists of a deferred tax asset due to short term timing differences which are expected to reverse within 12 months. |
There are no unused tax losses or unused tax credits. |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.24 | 30.6.23 |
value: | £ | £ |
Ordinary | £0.01 | 1,865,070 | 1,865,070 |
186,506,954 Ordinary Shares of £0.01 each were allotted with full voting rights. Each share ranks equally for any votes or dividends declared and upon winding up each share ranks equally for any distribution made. The shares are non redeemable. |
17. | RESERVES |
Retained |
earnings |
£ |
At 1 July 2023 |
Profit for the year |
At 30 June 2024 |
18. | ULTIMATE PARENT COMPANY |
Old Mill Topco Limited is regarded by the directors as being the company's ultimate parent company. |
The company is included in the consolidated financial statements of its parent, Old Mill Topco Limited, whose registered office is Maltravers House, Petters Way, Yeovil, BA20 1SH. |
19. | OTHER FINANCIAL COMMITMENTS |
The company has an inter-company guarantee limited to £9,500,000 with other related parties in respect of a group banking arrangement. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2024 |
20. | RELATED PARTY DISCLOSURES |
Balances owed to or from other group members are disclosed in notes 11, 12 and 13. |
The inter-company loans as disclosed in notes 11, 12 and 13 (with the exception of the loan with the parent company mentioned below), are unsecured, interest free, have no fixed date for repayment and are repayable on demand. |
During the year the company loaned and borrowed monies from Limited Liability Partnerships which are under common control. |
As at 30 June 2024 the balances are as follows: |
Amounts owed to the company of £Nil (2023: £32,758). |
Amounts owed to LLP's of £3,036 (2023: £Nil). |
The movement in these balances represent cash repayments of the amounts owed to/from the company in the year. |
These amounts are unsecured, interest free, have no fixed date for repayment and are repayable on demand. |
On 25 October 2021 the company purchased the whole of the goodwill, trade and assets at book value from Old Mill Financial Planning LLP (now Old Mill Financial Planning 2021 LLP). |
The purchase was mainly financed by an unsecured loan from the holding company. At the year end the balance due to the holding company was £3,738,539 (2023: £3,789,100). Interest on this loan is being charged at 2.95% above base rate and the end date for repayment is June 2028. |
21. | POST BALANCE SHEET EVENTS |
After the end of the reporting period, an inter-company loan of £3,709,046 with the company's parent company, Old Mill Topco Limited (disclosed in notes 12 and 13 to the accounts), was converted into 370,904,600 Ordinary £0.01 shares. |
22. | ULTIMATE CONTROLLING PARTY |