Sterling Lawyers Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Temple Chambers, 3-7 Temple Avenue, London, EC4Y 0DT.
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 £.
At 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.
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.
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.
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, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
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.
The average monthly number of persons (including directors) employed by the company during the year was:
Other creditors above includes a hire purchase loan agreement in place for a motor vehicle that is owned by the company and included within fixed assets. This creditor is secured against the asset in question.
The bank loans above secured in prior year's relate to Coronavirus Business Interruption/Recovery Loans. The first loan is due to be repaid by May 2025, the second loan is due to be repaid by May 2026 and the third loan is due to be repaid by December 2027.
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
The deferred tax liability set out above is expected to reverse within 12 month and relates to accelerated capital allowances that are expected to mature within the same period.
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
During the year, the company incurred costs of £nil (2023: £3,035) for bookkeeping services from Sterling & Beanland Limited, a company in which R. Kosarenko and Y. Lysenko, the directors, are materially interested. The company also recharged marketing, rent and administration costs to Sterling & Beanland Limited totalling £773 (2023: £5,693).
During the year, the company received £72,500 (2023: £20,667) with regards to marketing services provided to Sterling & Law Associates LLP, a company in which R. Kosarenko and Y. Lysenko, the directors, are materially interested as the designated partners. As at the year-end, the company was owed £77,500 (2023: £34,000) by Sterling & Law Associates LLP.
In addition, the company also paid costs to that partnership for administration services totalling £nil (2023: £20,000).
Furthermore, the company during the year incurred costs of £nil (2023: £24,000) for consultancy and IT development services from Sterling AI Solutions Limited, a company in which R. Kosarenko and Y. Lysenko, the directors, are materially interested.
The company also provided legal services in the year totalling £nil (2023: £1,419) to Sterling AI Solutions Limited.
Also, during the year, the company incurred costs of £124,500 (2023: £99,000) for rent from Jurintel Limited, a company in which R. Kosarenko and Y. Lysenko, the directors, are materially interested. The company also received fee income of £5,004 (2023: £15,824) from Jurintel Limited for legal services provided. At the year end £nil (2023: £8,500) remained outstanding to Jurintel Limited.
The company paid costs of £nil (2023: £1,000) for marketing services to Emigral Limited, a company in which R. Kosarenko and Y. Lysenko, the directors, are materially interested. In addition, the firm received income of £1,250 (2023: £nil) with regards to marketing, rent and admin services provided to Emigral Limited.
Finally, during the year, the company incurred costs of £153,423 (2023: £6,014) for IT development and marketing services from Logics7 Ltd, a company in which R. Kosarenko and Y. Lysenko, the directors, have an interest.
Advances or credits have been granted by the company to its directors as follows: