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Registered number: 04405992










EADTL LTD










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
EADTL LTD
 
 
COMPANY INFORMATION


Directors
A Akhurst (appointed 5 May 2023)
M Bates (appointed 5 May 2023, resigned 18 December 2024)
J Elliott (appointed 5 May 2023)
B Keating (appointed 5 May 2023)
P Bisset (resigned 5 May 2023)
H Buck (resigned 31 March 2023)
G Young (resigned 5 May 2023)
L Heanley (appointed 8 January 2025)




Registered number
04405992



Registered office
First floor Glendale House
Reading Road

Burghfield Common

Reading

Berkshire

RG7 3BL




Independent auditors
Larking Gowen LLP
Chartered Accountants & Statutory Auditors

1st Floor, Prospect House

Rouen Road

Norwich

NR1 1RE





 
EADTL LTD
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 5
Independent auditors' report
 
6 - 9
Statement of comprehensive income
 
10
Statement of financial position
 
11 - 12
Statement of changes in equity
 
13
Notes to the financial statements
 
14 - 31


 
EADTL LTD
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the year ended 31 December 2023.

Business review
 
On 4 May 2023, LSL Property Services plc announced that its entire owned estate agency network would become franchises. This included branches operated by the Company.
On 5 May 2023, the Company’s share capital was sold to Southern Homemove Limited. On the same date, a franchise agreement was entered into between LSLi Limited, Southern Homemove Limited (the Company’s immediate and ultimate parent) and the Company as the franchisee. The Company continues to trade in the same manner and continues to use the Davis Tate brand.
Davis Tate Limited changed its name to EADTL Limited on 24 May 2023.
The Company transitioned to FRS 102 from FRS 101 as at 1 January 2022. Previous periods have been restated to reflect the changes in accounting policies as detailed in note 29.

Financial key performance indicators
 
The Company made an operating profit, exlcuding exceptional items, of £12k against an operating profit in 2022 of £723k. The Company's key financial and other performance indicators during the year were as follows:
         
2023  2022  Change
         £'000  £'000  %
Revenue        4,985  5,456  (8.6)
Operating profit (excluding exceptional items)  12  723  (98.3)
Operating profit margin      0.2%  13.3% 
Revenue decreased by 8.6% year on year with macro-economic factors such as UK interest rate rises weighing on results. Profitability has been impacted by additional franchise fees levied on the Company's revenue from 5 May 2023 and accruals recognised to close a number of unprofitable branches.

Page 1

 
EADTL LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
The principal risks and uncertainties facing the Company are as follows:
Market Risk
The volume of house sales and the Company's revenue and profitability could be adversely affected by the following external factors:
the housing market;
customer behaviour;
competition from other estate agents; and
changes in legislation.

The Company continues to manage these through risk reviews at regular board meetings.
Operational Risk
The Company's results could also be affected by the following internal factors:
failure to recruit or retain key staff;
failure of information systems;
failure to comply with relevant legislation; and
failure of the franchise model.

Strategic changes made have mitigated the risk to the Company.


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



B Keating
Director

Date: 2 April 2025

Page 2

 
EADTL LTD
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Principal activity

The principal activity of the Company is the provision of estate agency services and related activities.

Directors

The directors who served during the year were:

A Akhurst (appointed 5 May 2023)
M Bates (appointed 5 May 2023, resigned 18 December 2024)
J Elliott (appointed 5 May 2023)
B Keating (appointed 5 May 2023)
P Bisset (resigned 5 May 2023)
H Buck (resigned 31 March 2023)
G Young (resigned 5 May 2023)

Results and dividends

The profit for the year, after taxation, amounted to £68k (2022 - £521k).

An interim dividend of £7,342k (2022 - £Nil) was paid during the year. This dividend was declared and paid before the Company was acquired by its parent, Southern HomeMove Ltd, during the year. The directors do not recommend the payment of a final dividend. The Company transitioned to FRS 102 from FRS 101 as at 1 January 2022. The dividend was declared and paid before the Company was acquired by Southern HomeMove Ltd and therefore whilst the financial statements were still being prepared under FRS 101. Note 29 to these financial statements explains the transitional adjustments required. Under FRS 101 the Company had sufficient distributable reserves to make the £7,342k dividend. Under Company law, as the dividend was declared and paid before the transition when there were sufficient distributable deserves this is considered a legal dividend.

Page 3

 
EADTL LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and 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 for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Future developments

The Company will continue to undertake measures to optimise its trading performance, to protect margins and EBITDA, whilst retaining and augmenting talent to ensure it is well placed to take advantage of future market developments.

Qualifying third party indemnity provisions

During the year the Company maintained liability insurance for its directors and officers. This provision, which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006, was in force throughout the year and is currently in force. Neither the Company's indemnity nor insurance provides cover in the event that a director or officer is proved to have acted fraudulently or dishonestly.

Matters covered in the Strategic report

The following matters have been included in the strategic report:
 
Business review
Financial key performance indicators
Principal risks and uncertainties

Auditors

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

Page 4

 
EADTL LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

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

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

Post balance sheet events

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

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





B Keating
Director

Date: 2 April 2025

Page 5

 
EADTL LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EADTL LTD
 

Opinion


We have audited the financial statements of EADTL Ltd (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


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


Page 6

 
EADTL LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EADTL LTD (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the 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.


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 directors' 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 set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 7

 
EADTL LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EADTL LTD (CONTINUED)


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 an Auditors' 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:

Due to the field in which the Company operates, we identified the areas most likely to have a direct material impact on the financial statements as compliance with UK tax legislation, UK accounting standards and the Companies Act 2006. In addition, we considered the provisions of other laws and regulations which whilst not having a direct impact on the financial statements, are fundamental to the Company's ability to operate including health and safety, employment law, GDPR and compliance with FCA and client money rules.
Our approach to identifying and assessing the risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included the following:
 
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations and fraud;
Reviewing legal and professional fees to confirm all matters where the Company engaged lawyers during the year;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Reviewing the reports and findings from client money Propertymark audits to ensure all applicable requirements are being complied with;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the value of stock held; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.


Because of the inherent limitations 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. This 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 also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditors' report.


Page 8

 
EADTL LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF EADTL LTD (CONTINUED)


Use of our report
 

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





John Atkins ACA FCCA (Senior statutory auditor)
  
for and on behalf of
Larking Gowen LLP
 
Chartered Accountants
& Statutory Auditors
  
1st Floor, Prospect House
Rouen Road
Norwich
NR1 1RE

 
Date: 
3 April 2025
Page 9

 
EADTL LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

As restated
2023
2022
Note
£000
£000

  

Turnover
 4 
4,985
5,456

Cost of sales
  
(851)
(720)

Gross profit
  
4,134
4,736

Administrative expenses
  
(4,122)
(4,013)

Exceptional administrative expenses
 13 
133
-

Operating profit
  
145
723

Interest receivable and similar income
 9 
5
-

Interest payable and similar expenses
 10 
(43)
-

Profit before tax
  
107
723

Tax on profit
 11 
(39)
(202)

Profit for the financial year
  
68
521

There was no other comprehensive income for 2023 (2022 - £Nil).

The notes on pages 14 to 31 form part of these financial statements.

Page 10

 
EADTL LTD
REGISTERED NUMBER: 04405992

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£000
£000

Fixed assets
  

Intangible assets
 14 
627
21

Tangible assets
 15 
45
75

  
672
96

Current assets
  

Debtors
 16 
533
7,582

Cash at bank and in hand
 17 
437
698

  
970
8,280

Creditors: amounts falling due within one year
 18 
(994)
(1,030)

Net current (liabilities)/assets
  
 
 
(24)
 
 
7,250

Total assets less current liabilities
  
648
7,346

Creditors: amounts falling due after more than one year
 19 
(554)
-

Provisions for liabilities
  

Other provisions
 21 
(38)
-

  
 
 
(38)
 
 
-

Net assets
  
56
7,346


Capital and reserves
  

Called up share capital 
 22 
11
11

Share based payment reserves
 23 
-
16

Profit and loss account
 23 
45
7,319

  
56
7,346


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




B Keating
Director

Date: 2 April 2025

The notes on pages 14 to 31 form part of these financial statements.
Page 11

 
EADTL LTD
REGISTERED NUMBER: 04405992
    
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2023


Page 12

 
EADTL LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share based payment reserves
Profit and loss account
Total equity

£000
£000
£000
£000


At 1 January 2022
11
18
6,798
6,827



Profit for the year
-
-
521
521


Share-based payment transactions
-
(2)
-
(2)



At 1 January 2023
11
16
7,319
7,346



Profit for the year
-
-
68
68

Dividends
-
-
(7,342)
(7,342)

Share-based payment transactions
-
(16)
-
(16)


At 31 December 2023
11
-
45
56


The notes on pages 14 to 31 form part of these financial statements.

This dividend was declared and paid before the Company was acquired by its parent, Southern HomeMove Ltd, during the year. The directors do not recommend the payment of a final dividend. The Company transitioned to FRS 102 from FRS 101 as at 1 January 2022. The dividend was declared and paid before the Company was acquired by Southern HomeMove Ltd and therefore whilst the financial statements were still being prepared under FRS 101. Note 29 to these financial statements explains the transitional adjustments required. Under FRS 101 the Company had sufficient distributable reserves to make the £7,342k dividend. Under Company law, as the dividend was declared and paid before the transition when there were sufficient distributable deserves this is considered a legal dividend.

Page 13

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

EADTL Ltd  is a private company limited by shares, incorporated in England and Wales, registered number 04405992. The registered office address is First floor Glendale House, Reading Road, Burghfield Common, Reading, Berkshire, RG7 3BL.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

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

The prior year financial statements were prepared in accordance with FRS 101. This year the Company is applying FRS 102 because the framework is considered more appropriate to the users of the financial statements. On transition back to FRS 102 the Company applied "Section 35 - Transition to this FRS" of FRS 102. Details of the adjustments that arose on transition to FRS 102 is given in Note 29.
The financial statements are presented in Sterling, which is the functional currency of the Company, and rounded to the nearest £.

The following principal accounting policies have been applied:

 
2.2

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 the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Southern HomeMove Ltd as at 31 December 2023 and these financial statements may be obtained from Companies House.

Page 14

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.3

Going concern

The directors have considered the Company’s position at the time of signing the financial statements and have undertaken an exercise to forecast future profits and cash flows for the Company. The directors have also considered the current financial position of the Company, inlcuding the net-current liabilities position at year-end, measures the directors could take to mitigate ongoing costs should they need to and the cash and financing facilities available to the Company.
Based on this, the directors have concluded that they have a reasonable expectation that the Company will have adequate resources to continue in operational existence for the foreseeable future, and at least twelve months from the date of signing these financial statements, they therefore continue to adopt the going concern basis of accounting in preparing these financial statements.

 
2.4

Turnover

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

Turnover from exchange fees on residential sales is recognised at the legal exchange date of the sale.
Turnover from lettings is recognised on completion of the service being provided, the performance obligations which the Company has depends on the type of lettings income. Let-only lettings income is recognised at a point in time at the start of the minimum period for which a tenant has been found, typically per month. Rent-collect lettings income is recognised at a point in time once the rent has been collected for that period, typically per month. Fully managed lettings is split between the proportion of income from rent collection services which is recognised at that point in time with the remaining income being recognised over the rental period. Pre and post tenancy income is recognised at a point in time once the service is provided.
Turnover from conveyancing referrals, financial services for referrals and completion of mortgage procurement is recognised at the legal exchange date of the residential sale to which the transaction relates.

 
2.5

Operating leases: the Company as lessee

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

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

 
2.6

Interest income

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

Page 15

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.7

Finance costs

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

 
2.8

Pensions

Defined contribution pension plan

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

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

 
2.9

Current and deferred taxation

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

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

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

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

 
2.10

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

Page 16

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Intangible assets

Goodwill

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

Other intangible assets

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

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

 The estimated useful lives range as follows:

Fixed lettings book fee
-
15
years
Goodwill
-
10
years

During the period the Company entered into a franchise agreement which includes an initial fee for the benefit of the existing lettings book and registered trademark, payable in the form of a monthly fixed fee over 15 years. The directors consider the monthly fixed fee represents the purchase of these assets. As such, the assets are capitalised at the present value of the future payments discounted at an appropriate weighted average cost of capital and a corresponding fixed lettings book fee liability recognised.
 
Subsequently, the fixed lettings book fee asset is amortised to the Statement of comprehensive income over 15 years, being the full term of the franchise agreement. The discounting of the liability is unwound annually with the finance cost recognised within the Statement of comprehensive income.

Page 17

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.

Depreciation is provided on the following basis:

Leasehold improvements
-
over the length of the lease
Motor vehicles
-
4 years straight line
Fixtures and fittings
-
3 - 5 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.13

Debtors

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

 
2.14

Cash and cash equivalents

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

 
2.15

Creditors

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

 
2.16

Provisions for liabilities

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

Page 18

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.17

Financial instruments

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

Financial instruments are recognised in the Company's Statement of financial position 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 trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

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

 
2.18

Dividends

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

Page 19

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates and judgements. It also requires management to exercise judgement in the process of applying the Company's accounting policies. The estimates that have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities within the next financial year are discussed below.
Amortisation of goodwill
The Company assesses the useful life of goodwill by determining the expected useful life of the relevant lettings books acquired. The Company also reviews annually for impairment of goodwill and this requires an estimation of the value-in-use of the cash generating units to which the intangible assets are allocated. This involves estimation of future cash flows and choosing a suitable discount rate.
Dilapidations provision
The Company reviews its property lease agreements for evidence of any dilapidation clauses. The Company considers work incurred while the property has been leased and estimates the expected cost of re-instating the property to the condition at the beginning of the lease.


4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£000
£000

Residential sales exchanges
2,358
2,903

Lettings
2,392
2,350

Financial services
129
122

Other
106
81

4,985
5,456


All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

2023
2022
£000
£000

Other operating lease rentals
278
258

Page 20

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Auditors' remuneration

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


2023
2022
£000
£000

Fees payable to the Company's auditors for the audit of the Company's financial statements
14
10


7.


Employees

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


2023
2022
£000
£000

Wages and salaries
2,500
2,607

Social security costs
243
287

Cost of defined contribution scheme
115
136

2,858
3,030


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


        2023
        2022
            No.
            No.







Provision of estate agency and related services
88
88


8.


Directors' remuneration

2023
2022
£000
£000

Directors' emoluments
140
-

Company contributions to defined contribution pension schemes
7
-

147
-


In the prior year employment contracts for the directors were held within the group of which the company used to be a part, as a result a proportion of the directors' remuneraton paid through the group relates to duties performed for this Company.

Page 21

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest receivable and similar income

2023
2022
£000
£000


Other interest receivable
5
-


10.


Interest payable and similar expenses

2023
2022
£000
£000


Fixed lettings book fee finance cost
43
-


11.


Taxation


2023
2022
£000
£000


Current tax on profits for the year
-
134

Adjustments in respect of previous periods
-
(1)

Total current tax
-
133


Origination and reversal of timing differences
-
6

Changes to tax rates
-
2

Adjustment in respect of prior periods
-
11

Utilisation of tax losses
39
50

Total deferred tax
39
69


Tax on profit
39
202
Page 22

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:

2023
2022
£000
£000


Profit on ordinary activities before tax
107
723


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
25
137

Effects of:


Non-tax deductible amortisation of goodwill and impairment
4
6

Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
2
(6)

Adjustments to tax charge in respect of prior periods
-
10

Remeasurement of deferred tax for changes in tax rates
8
-

Changes in tax laws
-
2

Impact of share based payments
-
1

Impact of conversion to FRS 102
-
52

Total tax charge for the year
39
202


Factors that may affect future tax charges

There are no factors that may affect future tax charges.


12.


Dividends

2023
2022
£000
£000


Dividends
7,342
-

This dividend was declared and paid before the Company was acquired by its parent, Southern HomeMove Ltd, during the year. The directors do not recommend the payment of a final dividend. The Company transitioned to FRS 102 from FRS 101 as at 1 January 2022. The dividend was declared and paid before the Company was acquired by Southern HomeMove Ltd and therefore whilst the financial statements were still being prepared under FRS 101. Note 29 to these financial statements explains the transitional adjustments required. Under FRS 101 the Company had sufficient distributable reserves to make the £7,342k dividend. Under Company law, as the dividend was declared and paid before the transition when there were sufficient distributable deserves this is considered a legal dividend.

Page 23

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Exceptional items

2023
2022
£000
£000


Non-recurring contractual receipt
(133)
-


14.


Intangible assets




Fixed lettings book fee
Computer software
Goodwill
Total

£000
£000
£000
£000



Cost


At 1 January 2023
-
238
1,109
1,347


Additions
654
-
-
654



At 31 December 2023

654
238
1,109
2,001



Amortisation


At 1 January 2023
-
238
1,088
1,326


Charge for the year
29
-
19
48



At 31 December 2023

29
238
1,107
1,374



Net book value



At 31 December 2023
625
-
2
627



At 31 December 2022
-
-
21
21



Page 24

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Tangible fixed assets





Leasehold improvements
Motor vehicles
Fixtures and fittings
Total

£000
£000
£000
£000



Cost


At 1 January 2023
15
16
395
426


Additions
-
-
12
12



At 31 December 2023

15
16
407
438



Depreciation


At 1 January 2023
2
16
333
351


Charge for the year
2
-
40
42



At 31 December 2023

4
16
373
393



Net book value



At 31 December 2023
11
-
34
45



At 31 December 2022
13
-
62
75

Page 25

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


Debtors

2023
2022
£000
£000

Due after more than one year

Other debtors
10
10

10
10

Due within one year

Trade debtors
294
252

Amounts owed by related parties
-
7,204

Other debtors
173
13

Prepayments and accrued income
30
38

Deferred taxation
26
65

533
7,582


Trade debtors are stated net of impairment losses totalling £Nil (2022 - £14k). Impairment credits of £13k (2022 - impairment losses of £11k) were recognised in profit and loss.


17.


Cash and cash equivalents

2023
2022
£000
£000

Cash at bank and in hand
437
698



18.


Creditors: Amounts falling due within one year

2023
2022
£000
£000

Trade creditors
253
36

Amounts owed to group undertakings
3
31

Corporation tax
134
388

Other taxation and social security
253
339

Fixed lettings book fee
86
-

Other creditors
14
13

Accruals and deferred income
251
223

994
1,030


Page 26

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Creditors: Amounts falling due after more than one year

2023
2022
£000
£000

Fixed lettings book fee
554
-



20.


Deferred taxation




2023


£000






At beginning of year
65


Charged to profit or loss
(39)



At end of year
26

The deferred tax asset is made up as follows:

2023
2022
£000
£000


Accelerated capital allowances
-
4

Short term timing differences
-
5

Tax losses
26
56

26
65

A deferred tax asset of £183k (2022 - £140k) on corporation tax losses has not been recognised on the basis that there is uncertainty over the recoverability of the asset.

Page 27

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


Provisions




Dilapidation provision

£000





Charged to profit or loss
38



At 31 December 2023
38


22.


Share capital

2023
2022
£000
£000
Allotted, called up and fully paid



1,000,000 (2022 - 1,000,000) Ordinary A shares of £0.01 each
10
10
26,221 (2022 - 26,221) Ordinary B shares of £0.01 each
-
-
100,000 (2022 - 100,000) Ordinary C shares of £0.01 each
1
1

11

11

Only Ordinary A shares carry voting rights.



23.


Reserves

Share based payment reserves

The share-based payment reserve is used to record the value of equity-settled share-based payments provided to the employees, as part of their remuneration.
At year-end this scheme was fully closed down and as such the reserve written-down to £Nil.

Profit and loss account

The Profit and loss account contains all prior and current year profits and losses.


24.


Prior year adjustment

The prior year has been restated to correctly classify expenses between cost of sales and administration expenses. This adjustment does not impact the profit in the prior period.

Page 28

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £115k (2022 - £136k). Contributions totalling £12k (2022 - £12k) were payable to the fund at the reporting date and are included in creditors.


26.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£000
£000


Not later than 1 year
132
142

Later than 1 year and not later than 5 years
181
325

Later than 5 years
-
13

313
480


27.


Client monies

As at 31 December 2023, monies held in separate bank accounts on behalf of clients amounted to £3,352k (2022 - £3,100k). Neither this amount, nor the matching liabilities to the clients concerned are included in the Statement of financial position.
Client funds are protected by the Financial Services Compensation Scheme (FSCS) under which the Government guarantees amounts up to £85,000. This guarantee applies to each individual client, not the total of deposits held by the Company.


28.


Controlling party

The Company's immediate and ultimate parent company is Southern HomeMove Ltd. L Heanley is the ultimate controlling party by virtue of her majority shareholding in Southern HomeMove Ltd. The registered office address is 44 Coombe Lane, London, SW20 0LA.

Page 29

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

29.


Transition to FRS 102

The Company transitioned to FRS 102 from FRS 101 as at 1 January 2022. The impact of the transition to FRS 102 is as follows:


£000

Reconciliation of equity at 1 January 2022
  


Equity at 1 January 2022 under FRS 101
  
7,706

Adjustment to goodwill carrying value
 1 
(1,058)

Derecognition of right of use asset
 2 
(729)

Derecognition of right of use liability
 2 
802

Adjustment to deferred tax
 3 
106

Equity at 1 January 2022 under FRS 102
  
6,827

£000

Reconciliation of equity at 31 December 2022
  


Equity at 31 December 2022 under FRS 101
  
8,316

Adjustment to goodwill carrying value
 1 
(1,088)

Derecognition of right of use asset
 2 
(637)

Derecognition of right of use liability
 2 
699

Adjustment to deferred tax
 3 
56

Equity at 31 December 2022 under FRS 102
  
7,346

Page 30

 
EADTL LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
£000

Reconciliation of profit and loss for year ended 31 December 2022
  


Profit for the year ended 31 December 2022 under FRS 101
  
612

Amortisation of goodwill
 1 
(30)

Depreciation
 2 
143

Loss on disposal of right of use asset
 2 
13

Finance charge
 2 
13

Rent
 2 
(180)

Deferred tax
 3 
(50)

Profit for the year ended 31 December 2022 under FRS 102
  
521

The following were changes in accounting policies arising from the transition to FRS 102:

1.Goodwill arising from the acquisition of the trade and assets, including lettings book, was held at cost less impairment under FRS 101. Under FRS 102 it is held at cost less amortisation, with amortisation charged on a straight line basis over the useful ecomic life, which is considered to be 10 years.

2.IFRS 16, right of use assets were removed from the balance sheet and the associated depreciation and interest expense reversed. The operating costs associated with the rental of these items were then reinstated as an expense through profit and loss. Lease liabilities associated with the assets were removed from the balance sheet and the associated finance charge reversed.

3.These adjustments have resulted in changes to the corporation tax charge for the year-ended 31 December 2022. This has been recognised through an adjustment to the deferred tax balance in the prior year. The deferred tax asset has been restricted to the extent that it is probable the losses will be recovered against future taxable profits.

 
Page 31