Company registration number SC538101 (Scotland)
HARPER MCDERMOTT LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
HARPER MCDERMOTT LTD
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
HARPER MCDERMOTT LTD
COMPANY INFORMATION
- 1 -
Directors
T Fox
J P Kelly
M Sommerville
C Sweenie
Company number
SC538101
Registered office
First Floor, The Reel House
7 West Regent Street
Glasgow
Scotland
G2 1RW
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
Scotland
G2 2LB
HARPER MCDERMOTT LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
The directors present the strategic report for the year ended 30 June 2024.
Review of the business
The company’s turnover for the year has increased by 13.2% from £6,859,442 to £7,762,176.
Overheads increased year on year, resulting in an operating profit of £2,409,351 (2023: £2,764,650).
At the year end, the company had shareholder’s funds of £6,188,700 compared to £7,111,766 the previous year. The directors are pleased to have maintained a strong net current asset position with current assets exceeding current liabilities by £794,054 (2023: £1,110,854).
Principal risks and uncertainties
The directors have assessed certain risk factors affecting the company, the main being cash flow risk. The company manages its cash flow with the preparation and review of forecasts, ensuring the maintenance of a minimum cash level.
Key performance indicators
The directors consider the main key performance indicator of the company to be operating profit margin which was 31.0% for the current financial year, a decrease of 9.3% from 40.3% in 2023.
Financial risk management
The company finances its operations through its retained profits. Management’s objective is to retain sufficient liquid funds to enable it to meet its day-to-day obligations as they fall due.
T Fox
Director
5 February 2025
HARPER MCDERMOTT LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company continued to be that of the provision of trust deeds and debt advisory services.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £2,668,500 (2023: £2,500,100). The directors do not recommend the payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
T Fox
J P Kelly
M Sommerville
C Sweenie
Auditor
The auditor, Consilium Audit Limited, was appointed during the year and is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of directors' responsibilities
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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 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.
HARPER MCDERMOTT LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
On behalf of the board
T Fox
Director
5 February 2025
HARPER MCDERMOTT LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HARPER MCDERMOTT LTD
- 5 -
Opinion
We have audited the financial statements of Harper McDermott Ltd (the 'company') for the year ended 30 June 2024 which comprise 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:
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.
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.
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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
HARPER MCDERMOTT LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARPER MCDERMOTT LTD
- 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:
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
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.
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:
We 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 directors and management and from our knowledge of the regulatory environment relevant to the company.
We assessed the extent of compliance with laws and regulations through making enquiries of management and inspecting legal correspondence.
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 and their knowledge of actual, suspected and alleged fraud.
To address the risk of fraud through management bias and override of controls, we tested journal entries to identify unusual transactions, we assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias and we investigated the rationale behind significant or unusual transactions.
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.
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.
HARPER MCDERMOTT LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HARPER MCDERMOTT LTD
- 7 -
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.
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.
David Holt
Senior Statutory Auditor
For and on behalf of Consilium Audit Limited
Statutory Auditor
169 West George Street
Glasgow
Scotland
G2 2LB
20 February 2025
HARPER MCDERMOTT LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
7,762,176
6,859,442
Administrative expenses
(4,748,216)
(4,095,328)
Exceptional item - impairment losses
4
(605,486)
Other operating income
877
536
Operating profit
5
2,409,351
2,764,650
Interest receivable and similar income
8
93,074
229,490
Interest payable and similar expenses
9
(173)
Profit before taxation
2,502,425
2,993,967
Tax on profit
10
(756,991)
(569,875)
Profit for the financial year
1,745,434
2,424,092
The profit and loss account has been prepared on the basis that all operations are continuing operations.
The notes on pages 12 to 21 form part of these financial statements.
HARPER MCDERMOTT LTD
BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
50,543
51,513
Investments
13
5,356,504
5,961,990
5,407,047
6,013,503
Current assets
Debtors
15
174,465
142,187
Cash at bank and in hand
1,686,069
1,793,706
1,860,534
1,935,893
Creditors: amounts falling due within one year
16
(1,066,480)
(825,039)
Net current assets
794,054
1,110,854
Total assets less current liabilities
6,201,101
7,124,357
Provisions for liabilities
Deferred tax liability
17
12,401
12,591
(12,401)
(12,591)
Net assets
6,188,700
7,111,766
Capital and reserves
Called up share capital
19
1
1
Profit and loss reserves
6,188,699
7,111,765
Total equity
6,188,700
7,111,766
The notes on pages 12 to 21 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 5 February 2025 and are signed on its behalf by:
T Fox
Director
Company Registration No. SC538101
HARPER MCDERMOTT LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
1
7,187,773
7,187,774
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
2,424,092
2,424,092
Dividends
11
-
(2,500,100)
(2,500,100)
Balance at 30 June 2023
1
7,111,765
7,111,766
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
1,745,434
1,745,434
Dividends
11
-
(2,668,500)
(2,668,500)
Balance at 30 June 2024
1
6,188,699
6,188,700
The notes on pages 12 to 21 form part of these financial statements.
HARPER MCDERMOTT LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
3,055,904
2,757,354
Interest paid
(173)
Income taxes paid
(567,353)
(455,541)
Net cash inflow from operating activities
2,488,551
2,301,640
Investing activities
Purchase of tangible fixed assets
(20,762)
(21,210)
Interest received
13,074
4,490
Dividends received
80,000
225,000
Net cash generated from investing activities
72,312
208,280
Financing activities
Dividends paid
(2,668,500)
(2,500,100)
Net cash used in financing activities
(2,668,500)
(2,500,100)
Net (decrease)/increase in cash and cash equivalents
(107,637)
9,820
Cash and cash equivalents at beginning of year
1,793,706
1,783,886
Cash and cash equivalents at end of year
1,686,069
1,793,706
The notes on pages 12 to 21 form part of these financial statements.
HARPER MCDERMOTT LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information
Harper McDermott Ltd is a private company limited by shares incorporated in Scotland. The registered office is First Floor, The Reel House, 7 West Regent Street, Glasgow, Scotland, G2 1RW. The company's registration number is SC538101.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
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
Revenue is recognised to the extent the company obtains the right to consideration in exchange for its performance and is measured at the fair value of the consideration received, excluding discounts, rebates, VAT and other sales tax or duty.
The company's revenue is primarily generated from the provision of insolvency solutions to individuals experiencing debt problems. Revenue is recognised on a monthly basis over the life of the case aligned to the ongoing services provided.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following basis:
Fixtures and fittings
25% straight line
Computers
25% 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 the profit and loss account.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the profit and loss account.
HARPER MCDERMOTT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Impairment of fixed assets
Where a reasonable and consistent basis of allocation can be identified, assets are allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.
1.7
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 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.
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 method.
1.8
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.
HARPER MCDERMOTT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.9
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.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account 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 leases asset are consumed.
HARPER MCDERMOTT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
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.
3
Turnover and other revenue
All turnover is generated in the United Kingdom and relates solely to the principal activity of the company.
2024
2023
£
£
Other revenue
Interest income
13,074
4,490
Dividends received
80,000
225,000
4
Exceptional item
2024
2023
£
£
Expenditure
Impairment losses
605,486
-
This relates to the impairment of an investment in a subsidiary company. See Note 13 for further details.
5
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
21,000
Depreciation of owned tangible fixed assets
21,732
24,095
Operating lease charges
163,339
153,606
During the year, certain expenses that had previously been included as cost of sales, were reclassified as administrative expenses. This resulted in a reduction in cost of sales reported for the year to 30 June 2023 of £27,360 and an increase in administrative expenses of £27,360. There was no impact on the overall profit as a result of this reclassification.
HARPER MCDERMOTT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
66
59
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,147,332
1,777,105
Social security costs
211,456
175,359
Pension costs
66,703
57,642
2,425,491
2,010,106
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
182,355
157,013
Company pension contributions to defined contribution schemes
12,095
6,900
194,450
163,913
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
13,074
4,490
Income from fixed asset investments
Income from shares in group undertakings
80,000
225,000
Total income
93,074
229,490
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
173
HARPER MCDERMOTT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
757,181
567,353
Deferred tax
Origination and reversal of timing differences
(190)
2,522
Total tax charge
756,991
569,875
From April 2023 onwards, the main rate of corporation tax rose from 19% to 25%.
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
2,502,425
2,993,967
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
625,606
613,763
Tax effect of expenses that are not deductible in determining taxable profit
151,385
16
Dividend income
(20,000)
(46,125)
Deferred tax at different rates
2,221
Taxation charge for the year
756,991
569,875
11
Dividends
2024
2023
£
£
Final paid
2,668,500
2,500,100
HARPER MCDERMOTT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
12
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 July 2023
67,263
57,392
124,655
Additions
855
19,907
20,762
At 30 June 2024
68,118
77,299
145,417
Depreciation and impairment
At 1 July 2023
49,405
23,737
73,142
Depreciation charged in the year
12,467
9,265
21,732
At 30 June 2024
61,872
33,002
94,874
Carrying amount
At 30 June 2024
6,246
44,297
50,543
At 30 June 2023
17,858
33,655
51,513
13
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
14
5,356,504
5,961,990
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 & 30 June 2024
5,961,990
Impairment
At 1 July 2023
-
Impairment losses
605,486
At 30 June 2024
605,486
Carrying amount
At 30 June 2024
5,356,504
At 30 June 2023
5,961,990
The investment held in CreditSolv Ltd was impaired to reflect its current carrying value of £45,000.
HARPER MCDERMOTT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
14
Subsidiaries
Details of the company's subsidiaries at 30 June 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Kelsom Financial Limited
First Floor, The Reel House, 7 West Regent Street, Glasgow, Scotland, G2 1RW
Ordinary
100.00
Creditsolv Limited
First Floor, The Reel House, 7 West Regent Street, Glasgow, Scotland, G2 1RW
Ordinary
100.00
15
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
125,405
95,473
Prepayments and accrued income
49,060
46,714
174,465
142,187
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
80,252
70,486
Corporation tax
757,181
567,353
Other taxation and social security
90,547
88,109
Other creditors
117,500
98,386
Accruals and deferred income
21,000
705
1,066,480
825,039
17
Deferred taxation
The following are the major deferred tax liabilities recognised by the company and movements thereon:
2024
2023
Balances:
£
£
Accelerated capital allowances
12,401
12,591
HARPER MCDERMOTT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
17
Deferred taxation
(Continued)
- 20 -
2024
Movements in the year:
£
Liability at 1 July 2023
12,591
Credit to profit or loss
(190)
Liability at 30 June 2024
12,401
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
66,703
57,642
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.
19
Share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
1,000 Ordinary shares of 0.1p
1
1
During the year, the share capital was sub-divided into 1,000 shares at par value of 0.1p. In the prior year, there was 1 share at par value of £1.
20
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
111,063
132,162
Between two and five years
363,005
73,804
In over five years
59,614
533,682
205,966
HARPER MCDERMOTT LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
21
Related party transactions
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.
No further transactions with related parties were undertaken such as are required to be disclosed under the provisions of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
22
Ultimate controlling party
The company is wholly owned by Trident Trust Company Limited, which has its registered office in Jersey, in its capacity as trustee of the Harper McDermott Limited Employee Ownership Trust.
23
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,745,434
2,424,092
Adjustments for:
Taxation charged
756,991
569,875
Finance costs
173
Investment income
(93,074)
(229,490)
Depreciation of tangible fixed assets
21,732
24,095
Impairment of fixed asset investments
605,486
-
Movements in working capital:
Increase in debtors
(32,278)
(36,485)
Increase in creditors
51,613
5,094
Cash generated from operations
3,055,904
2,757,354
24
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
1,793,706
(107,637)
1,686,069
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