Company registration number 06963121 (England and Wales)
DOYLE CLAYTON SOLICITORS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
DOYLE CLAYTON SOLICITORS LIMITED
COMPANY INFORMATION
Directors
Mr P C Doyle
Mrs T B A Wisener
Mr P F De Maria
Company number
06963121
Registered office
One Crown Court
Cheapside
London
EC2V 6LR
Auditor
Humphrey & Co Audit Services Ltd
7-9 The Avenue
Eastbourne
East Sussex
BN21 3YA
Business address
One Crown Court
Cheapside
London
EC2V 6LR
DOYLE CLAYTON SOLICITORS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
DOYLE CLAYTON SOLICITORS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The directors present the strategic report for the year ended 31 October 2024.

Executive summary

Doyle Clayton continues as a specialised law firm which is majority owned by an Employee Ownership Trust. Our strategic vision is to provide a first-rate service to our clients across a diverse range of legal services that we provide as a “workplace law firm”. This means our focus is helping employers and employees across all aspects of law that impact on the workplace. This will help ensure we can continue to grow and develop for the benefit of our employees, who are also beneficiaries, under the Employee Ownership Trust.

Market analysis

We continue to grow, and our turnover increased 8.3% from £14.3m to 15.4m. The growth continued to come from our core employment offering as well as growing our corporate service, education and pension offering.

 

Immigration work continues to be challenging from both a corporate and individual client perspective. Despite this, immigration is still an essential part of our service offering and complements our other service lines. The focus for the coming year will be on corporate immigration work and immigration services across the education sector.

 

Adding and adapting our service offering is also key to address the growing competition from both traditional law firms and alternative legal service providers.

Strategic objectives

Our strategic objectives are aligned with our mission to deliver exceptional legal solutions and achieve sustainable growth. This includes the following plans for the business:

 

  1. Expand and complement our “workplace law firm” offering, which includes expanding our corporate, education sector and pension offering. We already advise clients who want to gain Employee Ownership Trust status and we also offer more traditional M & A advice and services.

     

  2. Continue to enhance our technological capabilities to improve efficiency, streamline processes, and deliver innovative solutions to clients. In the year, we introduced new PMS and DMS systems which will now allow us to start to leverage AI solutions for the benefit of our clients.

     

  3. Continue to invest in talent development and recruitment to attract top legal professionals and cultivate a culture of excellence and collaboration.

     

  4. Strengthen client relationships through proactive communication, personalised service offerings, and value-driven engagements. Our new DMS will play a key part of this.

Growth Strategies

We aim to drive sustainable growth and capitalise on emerging opportunities. The key to growth is being able to attract and retain talent and being an employee owned law firm is a key part of this.

 

We now operate out of three offices, London, Reading and Bristol, with our Bristol office opening in December 2024.

 

We will continue to diversify our service offerings to address evolving client needs and capitalise on emerging legal trends and industry sectors.

DOYLE CLAYTON SOLICITORS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Risk Management

Effective risk management is essential to safeguarding our reputation, client relationships and ensuring financial stability. Key considerations include:

 

  1. Compliance with regulatory requirements, ethical standards and professional conduct guidelines.

     

  2. Mitigating cybersecurity risks through robust data protection measures, employee training, and incident response protocols.

     

  3. Managing financial risks, including fluctuations in revenue, profitability, and client demand.

     

  4. Anticipating and mitigating operational risks, such as staff turnover, resource constraints, and technology disruptions.

Conclusion

Our strategic plan is designed to position us for continued success and growth in the competitive UK legal market. By focusing on operational excellence, client-centricity and strategic innovation, we are confident in our ability to deliver exceptional legal services, drive sustainable growth and continue to create long-term value for our clients and employees / beneficiaries.

On behalf of the board

Mr P C Doyle
Director
24 February 2025
DOYLE CLAYTON SOLICITORS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -

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

Principal activities
The principal activity of the company is that of solicitors.
Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr P C Doyle
Mrs T B A Wisener
Mr P F De Maria
Auditor

The auditor, Humphrey & Co Audit Services Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr P C Doyle
Director
24 February 2025
DOYLE CLAYTON SOLICITORS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -

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

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

DOYLE CLAYTON SOLICITORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DOYLE CLAYTON SOLICITORS LIMITED
- 5 -
Opinion

We have audited the financial statements of Doyle Clayton Solicitors Limited (the 'company') for the year ended 31 October 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

DOYLE CLAYTON SOLICITORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DOYLE CLAYTON SOLICITORS LIMITED (CONTINUED)
- 6 -
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 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

We obtained an understanding of the company and the laws and regulations that could reasonably be expected to have a direct effect on the financial statements through discussion with the directors and management and the application of our knowledge and experience. We discussed with management whether there were any known or suspected instances of fraud and/or non-compliance with relevant laws and regulations. We also obtained an understanding of the company's accounting systems and internal controls.

 

We audited the risk of management override of controls, by testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. Our other audit procedures included, but were not limited to, carrying out detailed substantive testing of a sample of income and expenditure transactions arising in the year. We agreed wages records to wages costs in the accounts. We tested a sample of balance sheet items such as fixed assets, work in progress, debtors and creditors. We also reviewed the financial statements and checked disclosures to supporting documentation to assess compliance with applicable law and regulation.

 

Because of the inherent risk of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements as we will be less likely to become aware of instances of non-compliance. The risk is greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

We obtained the SRA Accountant's Report for 31 October 2024 which was unqualified with no breaches.

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

DOYLE CLAYTON SOLICITORS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DOYLE CLAYTON SOLICITORS LIMITED (CONTINUED)
- 7 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Andrew Robinson (Senior Statutory Auditor)
For and on behalf of Humphrey & Co Audit Services Ltd, Statutory Auditor
Chartered Accountants
7-9 The Avenue
Eastbourne
East Sussex
BN21 3YA
3 March 2025
DOYLE CLAYTON SOLICITORS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
15,442,910
14,260,628
Administrative expenses
(12,744,730)
(11,264,413)
Operating profit
4
2,698,180
2,996,215
Interest receivable and similar income
7
34,243
3,855
Interest payable and similar expenses
8
(1,995)
-
0
Profit before taxation
2,730,428
3,000,070
Tax on profit
9
(712,584)
(713,562)
Profit for the financial year
2,017,844
2,286,508

The profit and loss account has been prepared on the basis that all operations are continuing operations.

DOYLE CLAYTON SOLICITORS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 9 -
2024
2023
£
£
Profit for the year
2,017,844
2,286,508
Other comprehensive income
-
-
Total comprehensive income for the year
2,017,844
2,286,508
DOYLE CLAYTON SOLICITORS LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
190,817
228,429
Current assets
Stocks
12
108,224
128,218
Debtors
13
4,383,083
3,373,223
Cash at bank and in hand
531,952
2,632,039
5,023,259
6,133,480
Creditors: amounts falling due within one year
14
(2,197,176)
(3,281,626)
Net current assets
2,826,083
2,851,854
Total assets less current liabilities
3,016,900
3,080,283
Provisions for liabilities
Provisions
15
23,095
-
0
Deferred tax liability
16
28,483
30,499
(51,578)
(30,499)
Net assets
2,965,322
3,049,784
Capital and reserves
Called up share capital
18
1,400
1,360
Share premium account
19
515,055
399,031
Capital redemption reserve
20
42
82
Profit and loss reserves
2,448,825
2,649,311
Total equity
2,965,322
3,049,784

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

The financial statements were approved by the board of directors and authorised for issue on 24 February 2025 and are signed on its behalf by:
Mr P C Doyle
Mrs T B A Wisener
Director
Director
Company registration number 06963121 (England and Wales)
DOYLE CLAYTON SOLICITORS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 November 2022
1,310
265,518
132
2,204,121
2,471,081
Year ended 31 October 2023:
Profit and total comprehensive income for the year
-
-
-
2,286,508
2,286,508
Issue of share capital
18
-
0
133,513
-
-
133,513
Distributions to Doyle Clayton EOT Limited
10
-
-
-
(1,841,318)
(1,841,318)
Other movements
50
-
0
(50)
-
-
Balance at 31 October 2023
1,360
399,031
82
2,649,311
3,049,784
Year ended 31 October 2024:
Profit and total comprehensive income for the year
-
-
-
2,017,844
2,017,844
Issue of share capital
18
-
0
116,024
-
-
116,024
Distributions to Doyle Clayton EOT Limited
10
-
-
-
(2,218,330)
(2,218,330)
Other movements
40
-
0
(40)
-
-
Balance at 31 October 2024
1,400
515,055
42
2,448,825
2,965,322
DOYLE CLAYTON SOLICITORS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
1,027,162
3,816,042
Interest paid
(1,995)
-
0
Income taxes paid
(1,034,268)
(671,087)
Net cash (outflow)/inflow from operating activities
(9,101)
3,144,955
Investing activities
Purchase of tangible fixed assets
(22,923)
(15,596)
Interest received
34,243
3,855
Net cash generated from/(used in) investing activities
11,320
(11,741)
Financing activities
Proceeds from issue of shares
116,024
133,513
Dividends and distributions paid
(2,218,330)
(1,841,318)
Net cash used in financing activities
(2,102,306)
(1,707,805)
Net (decrease)/increase in cash and cash equivalents
(2,100,087)
1,425,409
Cash and cash equivalents at beginning of year
2,632,039
1,206,630
Cash and cash equivalents at end of year
531,952
2,632,039
DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 13 -
1
Accounting policies
Company information

Doyle Clayton Solicitors Limited is a private company limited by shares incorporated in England and Wales. The registered office is One Crown Court, Cheapside, London, EC2V 6LR.

1.1
Accounting convention

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

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

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

1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

1.4
Tangible fixed assets

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

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

Land and buildings Leasehold
10% - 20% straight line
Plant and machinery
30% reducing balance
Fixtures, fittings & equipment
15% reducing balance

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

DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
1.5
Impairment of fixed assets

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

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

 

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

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

1.6
Stocks

Work in progress is calculated as time recorded on individual matters not yet billed. The value is based on charge out rates of staff.

At each reporting date, an assessment is made for impairment. Any irrecoverable work in progress is written off in the profit or loss account.

1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

 

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

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest rate method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
Taxation

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

Current tax

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

Deferred tax

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

 

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

DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 17 -
1.11
Provisions

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

 

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

1.12
Employee benefits

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

 

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

 

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

1.13
Retirement benefits

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

1.14
Leases

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

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

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

Work in Progress

Work in progress is based on unbilled time at the Balance Sheet date.

 

The directors review unbilled time records prior to the year end and write off any they consider to be irrecoverable. The directors consider all remaining unbilled time to be fully recoverable.

 

The carrying amount of work in progress as at the balance sheet date is £108,224 (2023 - £128,218).

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives, and when appropriate, taking into account their residual values. The useful lives and residual values are reassessed on an annual basis.

 

When assessing the useful life of an asset, factors that are considered among others, include maintenance undertaken and technological advances.

 

When assessing the residual value of an asset, factors that are considered among others, are the market for the second hand item and projected values.

 

The carrying amount of these assets at the balance sheet date is £190,817 (2023: £228,429).

Bad debt provision

The provision for bad debts is made up of both specific balances and a general balance.

 

The provision is ascertained for the specific bad debts by management providing for specific balances which they consider to be irrecoverable. At the balance sheet date the specific bad debts provision totals £103,747 (2023 - £319,908).

 

The general provision is calculated by management based on a prediction of what they consider could potentially be irrecoverable. At the balance sheet date the general bad debt provision totals £215,000 (2023 - £170,000).

 

The carrying amount of this provision at the balance sheet date is £318,747 (2023 - £489,908).

 

 

DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Solicitors services
15,442,910
14,260,628
2024
2023
£
£
Turnover analysed by geographical market
UK
14,983,609
13,761,506
Outside of the UK
459,301
499,122
15,442,910
14,260,628
2024
2023
£
£
Other revenue
Interest income
34,243
3,855
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
14,100
13,900
Depreciation of owned tangible fixed assets
60,535
61,393
Operating lease charges
491,446
440,684
5
Employees

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

2024
2023
Number
Number
Solicitors
66
63
Support
25
22
Total
91
85
DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
5
Employees
(Continued)
- 20 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
8,754,361
7,682,691
Social security costs
989,832
904,110
Pension costs
455,482
360,854
10,199,675
8,947,655
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
788,076
784,237
Company pension contributions to defined contribution schemes
39,009
56,575
827,085
840,812

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 4).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
336,976
305,777
Company pension contributions to defined contribution schemes
12,462
20,731
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
26,778
3,855
Other interest income
7,465
-
0
Total income
34,243
3,855
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
26,778
3,855
DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
1,995
-
0
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
714,600
708,172
Adjustments in respect of prior periods
-
0
1,067
Total current tax
714,600
709,239
Deferred tax
Origination and reversal of timing differences
(2,016)
4,323
Total tax charge
712,584
713,562

From 1 April 2023, there is no longer a single Corporation Tax rate for non-ring fence profits.

 

At the Spring Budget 2021, the government announced that the Corporation Tax main rate for non-ring fence profits would increase to 25% for profits above £250,000. A small profits rate of 19% was also announced for companies with profits of £50,000 or less. Companies with profits between £50,000 and £250,000 will pay tax at the main rate, reduced by a marginal relief. This provides a gradual increase in the effective Corporation Tax rate.

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

2024
2023
£
£
Profit before taxation
2,730,428
3,000,070
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.50%)
682,607
675,016
Tax effect of expenses that are not deductible in determining taxable profit
31,993
37,493
Adjustments in respect of prior years
-
0
1,067
Permanent capital allowances in excess of depreciation
-
0
(4,337)
Deferred tax adjustments
(2,016)
4,323
Taxation charge for the year
712,584
713,562
DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
10
Dividends and distributions
2024
2023
£
£
Distributions to Doyle Clayton EOT Ltd
Amounts paid
2,218,330
1,841,318
11
Tangible fixed assets
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 November 2023
408,070
195,082
408,008
1,011,160
Additions
-
0
22,923
-
0
22,923
At 31 October 2024
408,070
218,005
408,008
1,034,083
Depreciation and impairment
At 1 November 2023
313,442
154,016
315,273
782,731
Depreciation charged in the year
27,428
19,197
13,910
60,535
At 31 October 2024
340,870
173,213
329,183
843,266
Carrying amount
At 31 October 2024
67,200
44,792
78,825
190,817
At 31 October 2023
94,628
41,066
92,735
228,429
12
Stocks
2024
2023
£
£
Work in progress
108,224
128,218
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,843,237
2,906,579
Other debtors
79,180
12,827
Prepayments and accrued income
460,666
453,817
4,383,083
3,373,223
DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 23 -
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
501,779
281,375
Corporation tax
39,600
359,268
Other taxation and social security
538,201
1,090,582
Other creditors
187,995
546,859
Accruals and deferred income
929,601
1,003,542
2,197,176
3,281,626

 

15
Provisions for liabilities
2024
2023
£
£
23,095
-
Movements on provisions:
£
Additional provisions in the year
23,095
16
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
28,483
30,499
2024
Movements in the year:
£
Liability at 1 November 2023
30,499
Credit to profit or loss
(2,016)
Liability at 31 October 2024
28,483

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
455,482
360,854

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

At the balance sheet date the company had a pension liability of £405 (2023 £637).

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,320
1,320
1,320
1,320
Ordinary 'A' class of £1 each
80
40
80
40
1,400
1,360
1,400
1,360

The holders of ordinary and ordinary A shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the company. The ordinary and ordinary A shares rank equally with regards to the company's residual assets.

On 13 February 2024, 40 ordinary A shares were transferred out of treasury.

 

At the balance sheet date 20 ordinary A shares (2023 - 60) and 22 ordinary shares (2023 - 22) are held in treasury.

19
Share premium account

This reserve records the amount above the nominal value received for shares issued, less transaction costs.

20
Capital redemption reserve

This reserve records the nominal value of the shares repurchased by the company.

21
Financial commitments, guarantees and contingent liabilities

In 2022 Doyle Clayton Solicitors Ltd entered into an agreement to be a guarantor for a bank loan between Doyle Clayton EOT Ltd and HSBC for £4,500,000.

 

As at 31 October 2024 the outstanding balance of the loan is £1,000,000.

DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 25 -
22
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
245,542
323,858
Between two and five years
100,886
338,668
346,428
662,526
23
Related party transactions

The following amounts were outstanding at the reporting end date:

On 11 September 2019, a shareholder in the company was provided with a loan. The principal amount of the loan is repayable on the earlier of 10 years from the date of the loan agreement or payment of deferred consideration due to the borrower relating to sale of shares. Interest is payable on the loan balance at an annual rate of 3%. At the Balance Sheet date the loan balance was £12,827 (2023: £12,827).

Other information

The company is a guarantor for a loan taken out by Doyle Clayton EOT Limited in 2022 for a sum of £4,500,000.

 

As at 31 October 2024 the outstanding balance of the loan is £1,000,000. (2023: £3,000,000)

24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
2,017,844
2,286,508
Adjustments for:
Taxation charged
712,584
713,562
Finance costs
1,995
-
0
Investment income
(34,243)
(3,855)
Depreciation and impairment of tangible fixed assets
60,535
61,393
Increase in provisions
23,095
-
Movements in working capital:
Decrease in stocks
19,994
48,854
(Increase)/decrease in debtors
(1,009,860)
695,783
(Decrease)/increase in creditors
(764,782)
13,797
Cash generated from operations
1,027,162
3,816,042
DOYLE CLAYTON SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 26 -
25
Analysis of changes in net funds
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
2,632,039
(2,100,087)
531,952
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