Forvis Mazars Services Limited (formerly Mazars Limited)
Registered number: 05380971
Annual report and financial statements
For the year ended 31 August 2024
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FORVIS MAZARS SERVICES LIMITED
COMPANY INFORMATION
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FORVIS MAZARS SERVICES LIMITED
CONTENTS
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Independent Auditor's Report
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Statement of Comprehensive Income
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Statement of Financial Position
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Statement of Changes in Equity
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Notes to the Financial Statements
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FORVIS MAZARS SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
The Directors are pleased to present their Strategic Report for financial year 2024.
As stated in the Directors' report, the principal activity of the Company is to provide staff and support services to Forvis Mazars LLP and its subsidiaries. Turnover for the Company is generated by charging a management fee to Forvis Mazars LLP for the provision of its services based on a mark-up of the costs incurred. The factors and trends that determine the success of the Company are based on the performance of the controlling party - Forvis Mazars LLP. For the year ended 31 August 2024, turnover for the Company and Forvis Mazars LLP increased by 13% and 9% respectively.
The Company does not provide services to other clients.
Future and other developments
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On 1 September 2024, the delegated members of Forvis Mazars LLP, in conjunction with the directors of Forvis Mazars Services Limited, elected to transfer all the Company's employees to the parent company Forvis Mazars LLP. Following the change, from 1 September 2024, Forvis Mazars Services Limited will be a holding company.
Other than the change of employing entity, there are no changes in the terms or conditions within the employment contracts with the employees, and we remain committed to upholding the wellbeing and development of all of our staff as set out in Section 172.
Principal risks and uncertainties
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Further to the transfer of the Company's employees to the parent company, Forvis Mazars LLP, the Company will cease providing services to Forvis Mazars LLP and its subsidiaries and will transition to a holding company. The directors do not intend to wind up the Company, it will continue to operate as a holding company for the foreseeable future.
Financial and non-financial KPIs
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The main financial KPIs are revenue and profit before tax whilst the main non-financial KPI is headcount.
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FORVIS MAZARS SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
Directors' statement of compliance with duty to promote the success of the Company under Section 172(1)
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In 2018 the Companies (Miscellaneous Reporting Regulations) introduced a requirement for large companies to publish a statement describing how the directors have had regard to the matters set out in section 172(1)(a) to (f) of the Companies Act 2006.
Section 172(1) (a) to (f) requires each director to act in the way he or she considers would be most likely to promote the success of the Company for the benefit of its members as a whole. As the principal activity of the Company is to provide staff and support services to Forvis Mazars LLP and its subsidiaries, the directors' consider their responsibilities, decisions and reputation in regards of the Company aligned to the members and executive board of its ultimate controlling party Forvis Mazars LLP.
This statement takes into consideration the following matters:
a)The likely consequences of any decision in the long-term
The strategy of Forvis Mazars LLP and its subsidiaries in regards of client service delivery and promotion of the interests of our employees forms the basis of long term decision making by the directors of the Company.
The Company, in conjunction with the members of Forvis Mazars LLP, have taken the decision to transfer its staff to its parent company Forvis Mazars LLP, were future forecasting of this impact will be consolidated into the group analysis.
b)The interests of the company’s employees
The welfare of the Company’s people remains a central focus of Forvis Mazars LLP’s strategy. We hold regular all-team webinars, run as open forums for the whole firm, and utilise newsletters, surveys, socials and Teams communities which continues to transform the way that our people interact with each other. The Company also places significant focus upon mental health and wellbeing, offering a wide range of resources, webinars, apps, and trained Mental Health First Aiders accessible to all its employees.
We continue to invest in all of our offices. In 2024 we expanded our world class London office which emphasises our commitment to provide our employees an environment promoting innovation and collaboration. That said, we promote hybrid working to ensure that our employees have continued and sustainable balance within their work and home environments.
The interests of the Company's employees will not be impacted by the transfer to Forvis Mazars LLP.
c)The need to foster the Company’s business relationships with suppliers, customers and others
The directors’ primary business relationship is with its ultimate controlling party Forvis Mazars LLP and its members. The Company continues to ensure our staff are provided the resources and training to support Forvis Mazars LLP to strengthen and develop close working business relationships with its clients and suppliers.
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FORVIS MAZARS SERVICES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
d)The impact of the Company’s operations on the community and environment
The Company understands the significance of its environmental responsibilities, monitors its impact on the environment and implements policies to reduce any damage that might be caused by the Company’s activities. Information on the company and group initiatives relating to the environment is reported in the Streamlined energy and carbon report in the group financial statements of Forvis Mazars LLP.
e)The desirability of the Company maintaining a reputation for high standards of business conduct
High standards of business conduct are critical for the reputation of the Company and Forvis Mazars LLP.
As the employees of the Company provide financial services for the clients of Forvis Mazars LLP, our ethics are aligned with those from accounting bodies such as ICAEW and the FCA and is applied across the business. This covers conflicts of interest, our anti-bribery policy, our anti-money laundering policy, our whistleblowing policy, and in relation to confidentiality. All of our people are expected to read and understand our ethics and e-learning is provided on a regular basis.
The Company has an established Code of Conduct which sets out how the Company’s values operate in practice.
We perform internal reviews across all areas of the business to ensure compliance in the provision of services to clients of Forvis Mazars LLP.
f)The need to act fairly as between members of the Company
As the Company has only one shareholder, Forvis Mazars LLP, there is no present obligation to take this section into consideration.
This report was approved by the board and signed on its behalf by.
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FORVIS MAZARS SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2024
The directors present their report and the audited financial statements for the year ended 31 August 2024.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, the Directors' Report and the audited financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare audited financial statements for each financial year. Under that law the directors have elected to prepare the audited 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 audited 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 audited financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the audited 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 audited 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.
The Company provides staff and support services to Forvis Mazars LLP and its fellow subsidiary companies.
The profit for the year, after taxation, amounted to £12m (2023 - £10.5m)
During the year, the directors recommended the payment of a dividend of £10.4m (2023 - £9.1m).
Further to the launch of the new Forvis Mazars global network on 3 June 2024, the Company changed its name from Mazars Limited to Forvis Mazars Services Limited.
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FORVIS MAZARS SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
The directors who served during the year and up to the date of this report were:
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S M Saville (resigned 15 September 2023)
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Engagement with employees
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The Company communicates and consults employees on a variety of business and employment matters through regular staff meetings and information provided in the company's intranet covering operations, health and safety, quality management and other areas. Where appropriate, such communications involve financial and economic factors affecting the performance of the company, Forvis Mazars LLP and its fellow subsidiaries.
The Company regards itself as an "equal opportunities" employer and will give full and fair consideration to applications for employment made by disabled persons, having regard to their particular aptitudes and abilities.
Disabled employees receive appropriate training to promote their career development within the Company. Employees who become disabled are retained in their existing posts where possible or retrained for suitable alternative posts.
Streamlined energy and carbon report
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The Company understands the significance of its environmental responsibilities, monitors its impact on the environment and implements policies to reduce any damage that might be caused by the Company’s activities. Information on the Company and group initiatives relating to the environment is reported in the Streamlined Energy and Carbon Report in the group financial statements of Forvis Mazars LLP.
Matters covered in the Strategic Report
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As permitted by paragraph 1A of Schedule 7 to the Large and Medium sized Companies and Groups (Accounts and reports) Regulations 2008 certain matters which are required to be disclosed in the Directors' report have been omitted as they are included in the Strategic report on pages 1 and 2. These matters relate to business review, principal risks and uncertainties and financial and non financial KPIs.
Provision of information to auditor
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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 auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
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FORVIS MAZARS SERVICES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2024
The directors continue to closely monitor and evaluate the market amid the current economic climate and inflationary pressures. They are committed to retaining and investing in staff and the delivery of quality services for clients, including digital solutions, in order to further build strong performance. Detailed budgets and cash flow forecasts are completed in conjunction with the Company’s ultimate controlling party, Forvis Mazars LLP, and its subsidiaries. Ongoing performance against targets is comprehensively reviewed with forecasts updated on a regular basis. The directors are satisfied that the company has adequate working capital resources and group support to continue in operational existence for the foreseeable future.
The directors of the Company, based upon the above, at the time of approval of the financial statements, have concluded that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus, the going concern basis has been adopted in preparing the financial statements.
Post balance sheet events
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On 1 September 2024, the delegated members of Forvis Mazars LLP, in conjunction with the directors of Forvis Mazars Services Limited, elected to transfer all the Company's employees to the parent company Forvis Mazars LLP. Following the change, from 1 September 2024, Forvis Mazars Services Limited's principal activity will be that of a holding company, with all costs and income being transferred to Forvis Mazars LLP.
The auditor, Crowe U.K. LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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FORVIS MAZARS SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FORVIS MAZARS SERVICES LIMITED
Opinion
We have audited the financial statements of Forvis Mazars Services Limited (the “company”) for the year ended 31 August 2024 which comprise the Statement of comprehensive income, Statement of financial position, Statement of changes in equity 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 31 August 2024 and of its profit for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 directors are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
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FORVIS MAZARS SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FORVIS MAZARS SERVICES LIMITED
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the 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 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 by the company, 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.
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FORVIS MAZARS SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FORVIS MAZARS SERVICES LIMITED
Responsibilities of the 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.
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:
We obtained an understanding of the legal and regulatory frameworks within which the company operate, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and UK Corporate Tax Legislation.
We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and inappropriate revenue recognition. Our audit procedures to respond to these risks included enquiries of management about their identification and assessment of the risk of irregularities, sample testing on the appropriate journals, reviewing accounting estimates for biases, corroborating balances recognised to supporting documentation on a sample basis and ensuring accounting policies are appropriate under the United Kingdom Generally Accepted Accounting Practice and applicable law.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements of the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.
A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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FORVIS MAZARS SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF FORVIS MAZARS SERVICES LIMITED
Use of the audit 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.
Sarah Riches (Senior Statutory Auditor)
for and on behalf of
Crowe U.K. LLP
Statutory Auditor
55 Ludgate Hill
London
EC4M 7JW
17 December 2024
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FORVIS MAZARS SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 AUGUST 2024
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Income from fixed assets investments
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Amounts written off investments
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Interest receivable and similar income
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Profit for the financial year
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There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.
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There was no other comprehensive income for 2024 (2023 - £NIL).
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The notes on pages 14 to 27 form part of these financial statements.
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FORVIS MAZARS SERVICES LIMITED
REGISTERED NUMBER: 05380971
STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2024
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Debtors: amounts falling due within one year
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Cash and cash equivalents
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 27 form part of these financial statements.
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FORVIS MAZARS SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2024
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Comprehensive income for the year
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Dividends: Equity capital (note 9)
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Comprehensive income for the year
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Dividends: Equity capital (note 9)
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The notes on pages 14 to 27 form part of these financial statements.
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
Forvis Mazars Services Limited (formerly Mazars Limited) is a company limited by shares, incorporated and registered in England and Wales. The registered number of the company is 05380971. The address of its registered office is 30 Old Bailey, London, United Kingdom, EC4M 7AU.
The Company provides staff and support services to Forvis Mazars LLP and its fellow subsidiary companies.
2.Accounting policies
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Basis of preparation of financial statements
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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 judgement in applying the Company's accounting policies (see note 3).
The financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the company operates and is rounded to the nearest pound.
The following principal accounting policies have been applied:
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Financial reporting standard 102 - reduced disclosure exemptions
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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 Forvis Mazars LLP as at 31 August 2024, the Company's ultimate parent undertaking. The consolidated financial statements of Forvis Mazars LLP are prepared in accordance with IFRS and are available to the public and may be obtained from Companies House.
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Exemption from preparing consolidated financial statements
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The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of any part of the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 400 of the Companies Act 2006.
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2.Accounting policies (continued)
The directors continue to closely monitor and evaluate the market amid the current economic climate and inflationary pressures. They are committed to retaining and investing in staff and the delivery of quality services for clients, including digital solutions, in order to further build strong performance. Detailed budgets and cash flow forecasts are completed in conjunction with the Company’s ultimate controlling party, Forvis Mazars LLP, and its subsidiaries. Ongoing performance against targets is comprehensively reviewed with forecasts updated on a regular basis. The directors are satisfied that the company has adequate working capital resources and group support to continue in operational existence for the foreseeable future.
The directors of the Company, based upon the above, at the time of approval of the financial statements, have concluded that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the going concern basis has been adopted in preparing the financial statements.
Turnover represents recharges of costs incurred plus a mark-up for the provision of staff and support services.
All the costs in relation to the termination benefits were accounted in the period to which they relate.
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 the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the Statement of comprehensive income 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.
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.
Investments in subsidiaries are measured at cost less accumulated impairment.
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Cash and cash equivalents
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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.
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Debtors: amounts falling due within one year
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Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2.Accounting policies (continued)
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Creditors: amounts falling due within one year
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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.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
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.
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments 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 receipts 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.
Interest income is recognised in profit or loss using the effective interest method.
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.
- 18 -
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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Judgements in applying accounting policies and key sources of estimation uncertainty
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In applying the Company’s accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors’ judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting are recognised in the year in which the estimate is revised, if the revision affects only that year, in the year of the revision and future years, if the revision affects both current and future years.
The critical judgements that the directors have made in the process of applying the Company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
Assessing indicator of impairment of investment
In assessing whether there have been any indicators of impairment of investment, the directors have considered both external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability. There have been no indicators of impairments identified during the current financial year.
The whole of the turnover is attributable to the principal activity of the Company.
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All turnover arose within the United Kingdom.
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The auditor's remuneration is paid by and charged to the ultimate parent undertaking and ultimate controlling party, Forvis Mazars LLP.
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- 19 -
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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Staff costs were as follows:
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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Income from fixed asset investments
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Dividends received from subsidiaries
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- 20 -
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 21.5% being the weighted average of the tax rates, where 25% and 19% were applied). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 21.5% weighted average rate of corporation tax)
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Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
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Adjustments to tax charge in respect of prior periods
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Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
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Remeasurement of deferred tax for
changes in tax rates
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Total tax charge for the year
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From 1 April 2023, the rate of corporation tax in the United Kingdom increased from 19% to 25%. As such, for the financial year ended 31 August 2023, a weighted average tax rate of 21.5% was used.
- 21 -
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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Final dividend paid for on equity capital of 345p (2023 - 301p) per ordinary share.
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Investments in subsidiary companies
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- 22 -
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
10. Fixed asset investments (continued)
Subsidiary undertakings
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The following were subsidiary undertakings of the Company:
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Registered office: 30 Old Bailey, London, EC4M 7AU
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Forvis Mazars Financial Planning Limited (formerly Mazars Financial Planning Limited)
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Forvis Mazars Corporate Finance Limited (formerly Mazars Corporate Finance Limited)
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Corporate finance services
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Forvis Mazars London Limited (formerly Mazars UK Limited)
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Volume personal insolvency services
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Forvis Mazars MR Limited (formerly Mazars MR Limited)
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Forvis Mazars Company Secretaries Limited (formerly Mazars Company Secretaries Limited)
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Forvis Mazars Trustee Company Limited (formerly Mazars Trustee Company Limited)
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Forvis Mazars Trust Corporation Limited (formerly Mazars Trust Corporation Limited)
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Forvis Mazars Trustee Company (London) Limited (formerly Mazars Trustee Company (London) Limited)
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Forvis Mazars Public Sector Internal Audit Limited (formerly Mazars Public Sector Internal Audit Limited)
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Rowanmoor Consultancy Limited
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Independent Women Limited
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Cartwright House Licensing Limited
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Mazars Company Secretaries Limited
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Mazars Corporate Finance Limited
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Mazars Holdings (Australia) Limited
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Mazars Holdings (US) Limited
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Mazars Public Sector Internal Audit Limited
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Mazars Trust corporation Limited
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Mazars Trustee Company (London) Limited
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Mazars Trustee Company Limited
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Wool Quay Nominees Limited
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Sarah Buttler Associates Limited
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- 23 -
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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10. Fixed asset investments (continued)
Registered Office: Mazars Capital Square, 58 Morrison Street, Edinburgh, EH3 8BP
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Registered Office: Suite 3, Second Floor, ICOM House, 1/5 Irish Town, Gibraltar
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Mazars (Gibraltar) Limited
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Registered office: 100 Queen Street, Glasgow, G1 3DN
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Forvis Mazars CYB Services Limited (formerly Mazars CYB Services Limited)
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Tax and trustee administration services
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Debtors: amounts falling due within one year
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Amounts owed by group undertakings
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Prepayments and accrued income
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Deferred taxation (note 14)
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Amounts owed by group undertakings are unsecured, repayable on demand and interest free.
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Cash and cash equivalents
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- 24 -
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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Creditors: amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Amounts owed to group undertakings are unsecured, repayable on demand and interest free.
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Charged to Statement of comprehensive income
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Other short term timing differences
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- 25 -
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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Allotted, called up and fully paid
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1,020,217 (2023 - 1,020,217) Ordinary shares of £1 each
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1,999,999 (2023 - 1,999,999) Ordinary redeemable shares of £1 each
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The ordinary shares entitle the holder of each to one voting right and no right to fixed income.
The option to redeem the redeemable shares are at the discretion of the board of directors. In all other respects, both classes of shares rank pari passu.
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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 £9,076 thousand (2023 - £7,809 thousand). Contributions totalling £1,449,472 (2023 - £1,231,405) were payable to the fund at the reporting date and are included in creditors.
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Commitments under operating leases
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At 31 August 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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The Company is a wholly owned subsidiary of Forvis Mazars LLP and as such has taken advantage of the exemption permitted by Section 33 ‘Related party disclosures’ not to provide disclosures of transactions entered into with other wholly owned members of the group. The Company and its subsidiary undertakings are included within the consolidated financial statements of Forvis Mazars LLP, which are publicly available and can be obtained from Companies House.
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- 26 -
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FORVIS MAZARS SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2024
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Post balance sheet events
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On 1 September 2024, the delegated members of Forvis Mazars LLP, in conjunction with the directors of Forvis Mazars Services Limited, elected to transfer all the Company's employees to the parent company Forvis Mazars LLP. Following the change, from 1 September 2024, Forvis Mazars Services Limited's principal activity will be that of a holding company, with all costs and income being transferred to Forvis Mazars LLP.
The Company is wholly owned and controlled by Forvis Mazars LLP, a limited liability partnership resident in England and Wales, which the directors consider to be the ultimate parent undertaking and controlling party. The Company and its subsidiaries are included within the consolidated financial statements of Forvis Mazars LLP, being the smallest and largest group in which the company is consolidated into. The group accounts produced by Forvis Mazars LLP are available from Companies House. The registered address of the LLP is 30 Old Bailey, London, EC4M 7AU.
Forvis Mazars LLP is part of the Forvis Mazars worldwide organisation which comprises all the member entities who have signed a co-operation agreement with Forvis Mazars Group SC. Forvis Mazars Group SC is a Limited Responsibility Co- operative Company headquartered in Belgium which itself has no professional activity and whose shareholders are partners in the member entities.
- 27 -
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