Company registration number 07950137 (England and Wales)
WATSON RAMSBOTTOM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
WATSON RAMSBOTTOM LIMITED
COMPANY INFORMATION
Directors
Mr E S Ashworth
Mrs R S Horman-Brown
Mr S P Maher
Mr J S Leach
Ms S J Pollitt
Ms A Caswell
Ms S Isa
Ms S Moore
Mrs C L Egerton
(Appointed 4 March 2024)
Company number
07950137
Registered office
25-29 Victoria Street
Blackburn
BB1 6DN
Auditor
MHA
Richard House
9 Winckley Square
Preston
PR1 3HP
WATSON RAMSBOTTOM LIMITED
CONTENTS
Page
Strategic report
1 - 6
Directors' report
7 - 8
Directors' responsibilities statement
9
Independent auditor's report
10 - 12
Profit and loss account
13
Statement of comprehensive income
14
Balance sheet
15
Statement of changes in equity
16
Statement of cash flows
17
Notes to the financial statements
18 - 32
WATSON RAMSBOTTOM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -
The directors present the strategic report for the year ended 31 July 2024.
Review of the Business
Strategy
Our mission is to embody our core values of ‘We are Human’ and ‘We’ve Got Your Back’ while remaining committed to delivering exceptional legal services at the heart of the communities we serve. As we move forward, we will continue to build on our significant growth, actively pursuing opportunities in geographical areas where we have only recently become a supplier of legal services to drive further expansion whilst remaining open to the opportunities that appropriate acquisitions may afford our growth plans.
At the same time, we remain adaptable to the evolving landscape of consumer and commercial legal services, harnessing emerging legal technologies and positioning ourselves to take full advantage of new opportunities. This strategic approach has already delivered impressive year-on-year growth, and we are determined to sustain this momentum. Our focus remains on strengthening the Watson Ramsbottom team while embracing innovation and change, ensuring we are always well-placed to maximise growth and success.
The strategy of assessing opportunities and seizing them at the right time continues to deliver strong results.
Services range and delivery
We remain committed to staying ahead of our competition by offering a diverse range of legal products and services through both traditional and modern approaches. We continuously review and refine our services to adapt to the evolving needs of our clients, ensuring we maintain our competitive edge.
While we fully embrace digital and electronic channels, we also recognise the importance of personalisation, tailoring our services to suit each client’s preferences. By leveraging cutting-edge technology and AI-powered tools, we are enhancing efficiency, streamlining processes, and improving the overall client experience. At the same time, we remain dedicated to delivering our services from our high-street locations within local communities, ensuring accessibility, convenience, and a personal touch.
The market
Although the legal services industry presents many challenges, we have identified the opportunities arising from its ongoing transformation. The consolidation of many smaller providers into larger organisations has reduced competition, opening up space for us to grow and establish a stronger presence in new regions and new service lines. We have strategically invested in expanding into these areas and strengthening our foothold. The failings of having appropriate succession planning in more traditional legal practices presents opportunities for acquisitions where there are gaps in the market for provision of services. This proactive approach ensures we are well-equipped to adapt to the changing needs of our clients and succeed in this evolving landscape.
WATSON RAMSBOTTOM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
Focusing on clients
Our company’s core brand value 'We’ve Got Your Back' is central to our client service strategy. Although the legal services industry has undergone significant changes, trust and expertise provided by individual lawyers and support staff continue to be the foundation of our service and we have committed additional resources to strengthen our reputation in this critical area. With accreditations from the Law Society, STEP and Resolution across various departments, we demonstrate our unwavering commitment to delivering exceptional customer service.
The continued growth of the Watson Ramsbottom team allows us to provide full support to clients throughout their legal journey. Regular engagement with clients, combined with the feedback we receive, helps us continually improve our services.
The company places a strong emphasis on enhancing communication with clients, leveraging both traditional methods and digital tools to stay in tune with evolving client expectations and the latest technological developments. Substantial investments in time, effort, and finances have been made to develop a client portal, offering an intuitive interface for secure communication and confidential data exchange, thereby saving clients time and enhancing security measures against external threats.
Investing in people
The business has significantly increased its investment in personnel development. This strategic focus has enhanced and expanded the skills of our staff, enabling us to offer clients access to a higher level of expertise. At the heart of our approach is our core value and culture of "We've Got Your Back", which extends first and foremost to our staff. We are deeply committed to fostering a supportive, respectful, and inclusive workplace, ensuring that our team feels valued and supported. Additionally, we continue to provide specialised and tailored training across various aspects of our operations. As a result of these efforts, it was no surprise when we were honoured for a second consecutive year in the Sunday Times Best Places to Work 2024.
Investing in marketing technology
Investing in technology to aid marketing is a key strategic decision for our business, recognising the shifting dynamics of the customer journey in today’s rapidly-evolving landscape for the provision of legal services. While global challenges of the recent past have highlighted the importance of personal relationships in the provision of legal services, we also acknowledge the growing opportunities presented by the digital & AI revolution. As such, we continue to prioritise both nurturing strong client relationships and embracing digital advancements to improve service delivery.
Our commitment to enhancing our IT and digital capabilities is evident in our ongoing research and development. We are implementing AI-powered solutions to streamline processes and elevate our service levels, ensuring a more personalised and efficient client experience. These advancements not only drive positive client testimonials but also play a vital role in marketing our services, contributing to stronger brand recognition and growth.
In terms of marketing, our strategy has delivered measurable results, reflected in higher rankings for key legal search terms and a growing presence across social media platforms. This increase in online engagement has directly translated into more new instructions, demonstrating the effectiveness of our digital approach.
WATSON RAMSBOTTOM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
In the community
With offices located in key town centres across Lancashire and West Yorkshire, maintaining strong connections with local communities is central to our business. This commitment aligns with our ‘We are Human’ vision and values. Our ongoing presence in these town centres not only fosters relationships with the local community but also supports the independent businesses that share our high streets. By ensuring our footfall benefits the wider area, we contribute to the vibrancy and success of these local economies.
In addition to this, the business continues to invest time in supporting projects such as the Darwen Youth Zone and partnering with various charities in the regions where our offices are based. We actively sponsor local sports teams, support community events, and encourage our staff and directors to donate their time and expertise to local organisations. This ongoing involvement ensures that we give something meaningful back to the communities that we serve.
Awards
In addition to the company's Law Society Lexcel and other accreditations, the company has yet again received external recognition from various professional bodies including The Legal 500 and The Sunday Times Best Places to Work.
Future outlook
In a services industry where technology and AI will drive a need for change in how legal services are provided to clients, our business is well positioned to be able to adapt and shift to meet the changing expectations of current and future clients. We are, however, confident in our ability to drive significant growth, particularly through our ambitious brand awareness campaign. A key part of this strategy will be our headline sponsorship of a local professional football club in the second tier of the English Football pyramid, which will enhance our visibility and further strengthen our presence in the community. We are excited about the opportunities this partnership brings and are confident it will help us maintain and exceed our current level of performance in the years to come.
WATSON RAMSBOTTOM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 4 -
Description of Principal Risks and Uncertainties
The management of the business and the implementation of the company’s strategy are exposed to a range of potential risks. These risks are carefully evaluated by the board, which then takes appropriate actions to monitor and mitigate their impact. The board has identified the following as the key risks that could affect the company's operations
Financial management risks
Like any business, a law firm is exposed to financial risks stemming from insufficient liquidity. To mitigate this risk, we have taken proactive measures to ensure that we maintain a healthy level of liquidity at all times.
Our firm has developed a comprehensive financial risk management strategy, which includes ongoing monitoring of our financial position, cash flow, bank balances, and debt levels. Regular financial reporting enables us to spot potential liquidity concerns early, allowing us to address them before they escalate into more significant issues.
We have strengthened our cash flow management through the use of detailed projections, enabling us to plan for upcoming expenses and identify potential periods of cash shortfall. This forward-looking approach allows us to make arrangements in advance, ensuring we have the necessary funds to meet our financial obligations.
Given the scale of our operations, financial risk management is overseen by a dedicated team, including the Practice Manager, Financial Manager, and Compliance Officer for Finance & Administration. This team, along with the executive board of Directors, ensures that we consistently monitor the firm’s financial health and take timely action to mitigate any emerging risks.
Economy
The Board remains cognisant of the potential risks posed by the current economic climate, particularly following the changing financial path of the new UK Government and the global impact of decision-making in the USA. As such, we will closely monitor the situation and regularly reassess any potential impacts on our operations, as any significant economic slowdown in the economy coupled with increased tax burdens on business could have a negative impact on our operations.
The business has successfully maintained its growth despite broader economic challenges and continues to thrive through the fluctuations of the housing market, remaining largely unaffected. This resilience stands in contrast to many of our competitors who have struggled during these periods.
Competition
A key risk to the success of a legal services firm is the growing competition, particularly from non-traditional law firms. This presents a significant challenge to the business and requires ongoing vigilance and proactive management.
To stay ahead of competitors, the firm must prioritise innovation in its services and foster strong, enduring relationships with clients. Building trust and delivering exceptional service are essential in maintaining a competitive advantage.
Additionally, implementing well-targeted marketing strategies is crucial to effectively showcase the firm’s products and services. This ensures the firm remains visible to potential clients and retains its current client base. By investing in brand awareness, using digital marketing tools and leveraging client testimonials will ensure continued success in this area.
Furthermore, staying agile in the face of an ever-changing legal landscape is essential. The firm must keep up with evolving market trends, regulatory changes, and new technologies to maintain its edge over competitors. Firms that continuously innovate, adapt, and stay client-focused are best positioned to succeed in a competitive environment.
WATSON RAMSBOTTOM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 5 -
Employee Risks
The company acknowledges the critical role that employees play in the success of the business, particularly in an environment where the talent pool is limited. As recruitment becomes increasingly challenging, the retention of staff remains our top priority. We focus on providing ongoing training, development, and support to ensure long-term commitment from our employees. Significant reinvestment in key team members, including competitive salary packages and bonus structures, ensures that we remain an attractive employer. We firmly believe that investing in our people is essential for achieving lasting success.
Recognising that the dedication and expertise of our staff are fundamental to our growth and prosperity, we are committed to fostering a positive, supportive, and rewarding work environment, as evidenced by the recent recognition we have received through awards. Our goal is to cultivate a loyal, high-performing team who view the company as their long-term professional home, driving the company’s continued success.
Analysis based on Key Performance Indicators
Management continue to monitor and report on top line turnover and EBITDA. EBITDA is defined as profits before interest payable, interest receivable, taxation, depreciation and amortisation.
The management remain pleased with the progression of turnover and EBITDA figures for the current and previous 4 years which continue to be consistently high.
Turnover - fees billed
2024 - £14,567,286 (12.5% increase on previous year)
2023 - £12,952,444 (25.5% increase on previous year)
2022 - £10,323,475 (26.6% increase on previous year)
2021 - £ 8,157,413 (69.0% increase on previous year)
2020 - £ 4,827,599 (4.8% increase on previous year)
EBITDA
2024 - £2,327,400
2023 - £1,940,347
2022 - £1,800,340
2021 - £1,791,814
2020 - £ 997,314
Analysis of Development and Performance
During the 2024-25 period, the business is experiencing a significant increase in new work, driven by the continued success of our existing marketing strategies and underpinned by our high-profile brand-awareness campaign. This campaign, including our headline sponsorship of a local professional football team in our core geographic area, has played a pivotal role in raising our profile and attracting new clients.
We have also maintained a strong commitment to delivering high levels of customer service, which has contributed to our ability to secure repeat business and positive client testimonials, further enhancing our brand reputation. Our operational focus has been on streamlining processes and improving internal efficiencies, with several key projects started in the previous year continuing post-year-end. These initiatives aim to optimise our day-to-day operations, ensuring that we continue to meet the growing demand for our services effectively.
In addition, we continue to make significant investments in our IT infrastructure and the bespoke development of our practice and client management systems. These efforts are designed to enhance the integration of our services and increase the speed at which we deliver them to clients. We are confident that this approach will allow us to grow at a sustainable, risk-averse pace, in line with the objectives set out in our strategic business plan.
WATSON RAMSBOTTOM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 6 -
Mr E S Ashworth
Director
7 April 2025
WATSON RAMSBOTTOM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 7 -
The directors present their annual report and financial statements for the year ended 31 July 2024.
Principal activities
The principal activity of the company continued to be that of the provision of legal services.
Results and dividends
The results for the year are set out on page 13.
Ordinary dividends were paid amounting to £796,036. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr E S Ashworth
Mrs R S Horman-Brown
Mr S P Maher
Mr J S Leach
Ms S J Pollitt
Ms A Caswell
Ms S Isa
Ms S Moore
Mrs C L Egerton
(Appointed 4 March 2024)
Auditor
Following the merger of MHA Moore and Smalley into MHA, MHA were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the business, principle risk and uncertainties and development and performance.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
WATSON RAMSBOTTOM LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
On behalf of the board
Mr E S Ashworth
Director
7 April 2025
WATSON RAMSBOTTOM LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2024
- 9 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
WATSON RAMSBOTTOM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WATSON RAMSBOTTOM LIMITED
- 10 -
Opinion
We have audited the financial statements of Watson Ramsbottom Limited (the 'company') for the year ended 31 July 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor 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 ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
WATSON RAMSBOTTOM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WATSON RAMSBOTTOM LIMITED (CONTINUED)
- 11 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
Auditing the risk of management override of controls, including testing journal entries and other adjustments for appropriateness;
Enquiries with management about any known or suspected instances of non-compliance with laws and regulations and fraud;
Reviewing how management identify and track compliance with key laws and regulations. Scrutinising legal and professional costs incurred for indications of non-compliance and consequential financial implications;
Auditing the risk of fraud in revenue by way of cut off testing, testing the deferral of income for invoices spanning the year end as well as sales transaction testing to obtain evidence that revenue is complete and recognised in the correct accounting period.
WATSON RAMSBOTTOM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WATSON RAMSBOTTOM LIMITED (CONTINUED)
- 12 -
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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Karen Hain BA FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Preston, United Kingdom
7 April 2025
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313)
WATSON RAMSBOTTOM LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2024
- 13 -
2024
2023
Notes
£
£
Turnover
3
14,567,286
12,952,444
Cost of sales
(5,032,589)
(4,177,459)
Gross profit
9,534,697
8,774,985
Administrative expenses
(7,312,546)
(6,947,113)
Other operating income
11,350
7,300
Operating profit
4
2,233,501
1,835,172
Interest receivable and similar income
8
487,293
319,536
Interest payable and similar expenses
9
(142,042)
(76,908)
Profit before taxation
2,578,752
2,077,800
Tax on profit
10
(674,689)
(460,015)
Profit for the financial year
1,904,063
1,617,785
The profit and loss account has been prepared on the basis that all operations are continuing operations.
WATSON RAMSBOTTOM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 14 -
2024
2023
£
£
Profit for the year
1,904,063
1,617,785
Other comprehensive income
-
-
Total comprehensive income for the year
1,904,063
1,617,785
WATSON RAMSBOTTOM LIMITED
BALANCE SHEET
- 15 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
50,056
57,955
Tangible assets
13
1,344,532
1,394,016
1,394,588
1,451,971
Current assets
Debtors
14
4,989,266
3,990,978
Cash at bank and in hand
1,156,804
867,547
6,146,070
4,858,525
Creditors: amounts falling due within one year
15
(4,994,237)
(4,870,431)
Net current assets/(liabilities)
1,151,833
(11,906)
Total assets less current liabilities
2,546,421
1,440,065
Creditors: amounts falling due after more than one year
16
(101,361)
(168,035)
Provisions for liabilities
Claims provision
19
59,146
38,645
Deferred tax liability
20
100,014
55,512
(159,160)
(94,157)
Net assets
2,285,900
1,177,873
Capital and reserves
Called up share capital
22
211
211
Capital redemption reserve
189
189
Profit and loss reserves
2,285,500
1,177,473
Total equity
2,285,900
1,177,873
The financial statements were approved by the board of directors and authorised for issue on 7 April 2025 and are signed on its behalf by:
Mr E S Ashworth
Director
Company Registration No. 07950137
WATSON RAMSBOTTOM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 16 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 August 2022
211
189
2,218,339
2,218,739
Year ended 31 July 2023:
Profit and total comprehensive income
-
-
1,617,785
1,617,785
Dividends
11
-
-
(2,658,651)
(2,658,651)
Balance at 31 July 2023
211
189
1,177,473
1,177,873
Year ended 31 July 2024:
Profit and total comprehensive income
-
-
1,904,063
1,904,063
Dividends
11
-
-
(796,036)
(796,036)
Balance at 31 July 2024
211
189
2,285,500
2,285,900
WATSON RAMSBOTTOM LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,983,212
1,244,707
Interest paid
(142,042)
(76,908)
Income taxes paid
(492,542)
(322,936)
Net cash inflow from operating activities
1,348,628
844,863
Investing activities
Purchase of tangible fixed assets
(76,910)
(159,577)
Proceeds from disposal of tangible fixed assets
53,130
Interest received
487,293
319,536
Net cash generated from investing activities
463,513
159,959
Financing activities
Movement on directors loan accounts
(1,030,794)
1,779,820
Proceeds from borrowings
1,064,476
476,000
Repayment of borrowings
(616,603)
(438,667)
Repayment of bank loans
(155,605)
(155,461)
Payment of finance leases obligations
(4,880)
(4,749)
Dividends paid
(796,036)
(2,658,651)
Net cash used in financing activities
(1,539,442)
(1,001,708)
Net increase in cash and cash equivalents
272,699
3,114
Cash and cash equivalents at beginning of year
670,838
667,724
Cash and cash equivalents at end of year
943,537
670,838
Relating to:
Cash at bank and in hand
1,156,804
867,547
Bank overdrafts included in creditors payable within one year
(213,267)
(196,709)
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 18 -
1
Accounting policies
Company information
Watson Ramsbottom Limited is a private company limited by shares incorporated in England and Wales. The registered office is 25-29 Victoria Street, Blackburn, BB1 6DN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover for services represents the fair value of legal services provided during the year on client assignments. Fair value reflects the amount expected to be recoverable from clients and is based on time spent, expertise and skills provided, and expenses incurred. Fee income is stated net of Value Added Tax,the consideration and the nominal amount interest received is recognised as interest income.
Legal services provided to clients during the year which, at the balance sheet date, have not been invoiced to clients, have been recognised as fee income in accordance with Section 23 Revenue of Financial Reporting Standard 102. When the outcome of a transaction can be reliably estimated, fees are recognised by reference to the stage of completion and anticipated recovery at the balance sheet date.
Unbilled fee income is included as stated at fair value where the right to consideration has been obtained. Provision is made against unbilled amounts on those engagements where the right to receive payments is contingent on other factors outside the control of the company.
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which the directors believe to be 10 years.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 19 -
Depreciation is recognised so as to write off the cost of assets over their useful lives on the following bases:
Land and buildings
1% straight line
Fixtures, fittings & equipment
15% reducing balance
Computer equipment
25% reducing balance/straight line
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 22 -
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 23 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Unbilled revenue
The value of unbilled revenue is derived on the basis of estimates and assumptions regarding the fair value of unbilled time recorded to matters at the year end. The valuation of unbilled revenue involves significant judgement and affects the amount of revenue recognised. The valuation is based on an estimate of the amount expected to be recoverable from clients on unbilled items based on such factors as time spent on the job or the fees already raised in relation to work already performed. The finance department review historical trends to ensure that the method for accounting for the amounts recoverable on contracts is the most accurate for each matter.
Provision of doubtful debts
The application of the bad debt provision to unpaid bills involves an element of judgement in assessing the amount of the provision and the age of the debt to apply to this. This is considered to be a critical accounting judgement due to the value of unpaid bills on the balance sheet. At each balance sheet date, management undertake an assessment of the recoverability of trade debtors based upon their knowledge of the customers, ageing of the balances outstanding and previous write off history. Where necessary, an impairment is recorded as a doubtful debt. The actual level of debt collected may differ from the estimated level of recovery.
Claims provision
At each balance sheet date, management undertake an assessment of any ongoing litigations or claims based upon the significance of client complaints and breaches. The firm will assess the nature of the claims and how likely they are to result in a liability to the firm. Where it is deemed likely, a claims provision will be included based on an estimate of the liability.
The actual level of claim monies paid may differ from the estimated provision.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Fee income
14,567,286
12,952,444
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
3
Turnover and other revenue
(Continued)
- 24 -
2024
2023
£
£
Other revenue
Interest income
487,293
319,536
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
86,000
84,076
Loss on disposal of tangible fixed assets
19,203
-
Amortisation of intangible assets
7,899
21,099
Operating lease charges
288,165
233,319
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
18,500
20,200
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
10
8
Fee earners
122
74
Support staff
106
146
Total
238
228
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
7,639,559
7,067,470
Pension costs
428,407
287,384
8,067,966
7,354,854
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 25 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
379,645
359,424
Company pension contributions to defined contribution schemes
298,072
167,220
677,717
526,644
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
80,431
85,150
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
485,139
311,859
Other interest income
2,154
7,677
Total income
487,293
319,536
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
485,139
311,859
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
25,610
25,042
Other interest on financial liabilities
45,008
46,445
70,618
71,487
Other finance costs:
Interest on finance leases and hire purchase contracts
61,683
5,421
Other interest
9,741
142,042
76,908
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 26 -
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
630,187
452,264
Deferred tax
Origination and reversal of timing differences
44,502
7,751
Total tax charge
674,689
460,015
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
2,578,752
2,077,800
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.01%)
644,688
436,546
Tax effect of expenses that are not deductible in determining taxable profit
10,138
21,032
Effect of change in corporation tax rate
1,225
Depreciation on assets not qualifying for tax allowances
7,446
2,145
Deferred tax adjustments in respect of prior years
12,417
Superdeduction expenditure
(933)
Taxation charge for the year
674,689
460,015
11
Dividends
2024
2023
£
£
Final paid
796,036
2,658,651
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 27 -
12
Intangible fixed assets
Goodwill
£
Cost
At 1 August 2023 and 31 July 2024
870,994
Amortisation and impairment
At 1 August 2023
813,039
Amortisation charged for the year
7,899
At 31 July 2024
820,938
Carrying amount
At 31 July 2024
50,056
At 31 July 2023
57,955
13
Tangible fixed assets
Land and buildings
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 August 2023
1,170,821
165,587
386,339
33,990
1,756,737
Additions
44,532
32,377
31,940
108,849
Disposals
(77,500)
(77,500)
At 31 July 2024
1,137,853
165,587
418,716
65,930
1,788,086
Depreciation and impairment
At 1 August 2023
65,821
59,015
231,512
6,373
362,721
Depreciation charged in the year
12,969
15,976
48,844
8,211
86,000
Eliminated in respect of disposals
(5,167)
(5,167)
At 31 July 2024
73,623
74,991
280,356
14,584
443,554
Carrying amount
At 31 July 2024
1,064,230
90,596
138,360
51,346
1,344,532
At 31 July 2023
1,105,000
106,572
154,827
27,617
1,394,016
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 28 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,010,011
854,549
Gross amounts owed by contract customers
1,347,680
998,129
Other debtors
1,474,622
1,405,408
Prepayments and accrued income
1,156,953
732,892
4,989,266
3,990,978
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
355,905
352,314
Obligations under finance leases
18
10,495
3,844
Other borrowings
17
709,650
317,333
Trade creditors
1,161,487
369,791
Corporation tax
412,320
274,675
Other taxation and social security
729,580
660,560
Other creditors
655,191
1,685,057
Accruals and deferred income
959,609
1,206,857
4,994,237
4,870,431
Obligations under finance leases are secured by a fixed charge over the assets to which they relate.
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
142,638
Obligations under finance leases
18
45,805
25,397
Other borrowings
17
55,556
101,361
168,035
Obligations under finance leases are secured by a fixed charge over the assets to which they relate.
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 29 -
17
Loans and overdrafts
2024
2023
£
£
Bank loans
142,638
298,243
Bank overdrafts
213,267
196,709
Other loans
765,206
317,333
1,121,111
812,285
Payable within one year
1,065,555
669,647
Payable after one year
55,556
142,638
Bank loans and overdrafts are secured by a first legal charge over the following properties; 31 and 31A Victoria Street, Blackburn and 33-39 Railway Road, Darwen.
There is a debenture in place with Barclays Bank Plc containing fixed and floating charges over the assets of the company.
18
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
10,495
3,844
In two to five years
45,805
25,397
56,300
29,241
Finance lease payments represent rentals payable by the company for company cars. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
19
Provisions for liabilities
2024
2023
£
£
Claims provision
59,146
38,645
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
19
Provisions for liabilities
(Continued)
- 30 -
Movements on provisions:
Claims provision
£
At 1 August 2023
38,645
Additional provisions in the year
20,501
At 31 July 2024
59,146
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
100,014
55,512
2024
Movements in the year:
£
Liability at 1 August 2023
55,512
Charge to profit or loss
44,502
Liability at 31 July 2024
100,014
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
428,407
287,384
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 31 -
22
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
D Ordinary shares of 1p each
1
1
-
-
E Ordinary shares of 1p each
1
1
-
-
F Ordinary shares of 1p each
1
1
-
-
G Ordinary shares of 1p each
1
1
-
-
Ordinary shares of 0.1p each
211,600
211,600
211
211
23
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
256,018
201,357
Between two and five years
578,445
667,236
834,463
868,593
24
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£
£
Aggregate compensation
802,413
496,604
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchases
Purchases
2024
2023
£
£
Entities with common control
179,908
48,300
Other related parties
91,810
166,635
WATSON RAMSBOTTOM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
24
Related party transactions
(Continued)
- 32 -
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities over which the entity has control, joint control or significant influence
1,292,460
1,281,168
25
Directors' transactions
Dividends totalling £796,036 (2023 - £2,658,651) were paid in the year in respect of shares held by the company's directors.
26
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,904,063
1,617,785
Adjustments for:
Taxation charged
674,689
460,015
Finance costs
142,042
76,908
Investment income
(487,293)
(319,536)
Loss on disposal of tangible fixed assets
19,203
-
Amortisation and impairment of intangible assets
7,899
21,099
Depreciation and impairment of tangible fixed assets
86,000
84,076
Increase/(decrease) in provisions
20,501
(86,500)
Movements in working capital:
Increase in debtors
(997,360)
(1,219,472)
Increase in creditors
613,468
610,332
Cash generated from operations
1,983,212
1,244,707
27
Analysis of changes in net funds/(debt)
1 August 2023
Cash flows
New finance leases
31 July 2024
£
£
£
£
Cash at bank and in hand
867,547
289,257
-
1,156,804
Bank overdrafts
(196,709)
(16,558)
-
(213,267)
670,838
272,699
943,537
Borrowings excluding overdrafts
(615,576)
(292,268)
-
(907,844)
Obligations under finance leases
(29,241)
4,880
(31,939)
(56,300)
26,021
(14,689)
(31,939)
(20,607)
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