Company registration number SC398240 (Scotland)
Melville Independent plc
Annual report and financial statements
for the year ended 31 December 2024
Melville Independent plc
Company information
Directors
Kristofor Banks
Matthew Irvine
Barry McKenzie
Secretary
Matthew Irvine
Company number
SC398240
Registered office
10 Melville Street
Edinburgh
EH3 7NS
Auditor
Henderson Loggie LLP
The Stamp Office
Level 5
10 - 14 Waterloo Place
Edinburgh
EH1 3EG
Melville Independent plc
Contents
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of income and retained earnings
8
Balance sheet
9
Statement of cash flows
10
Notes to the financial statements
11 - 23
Melville Independent Plc
Melville Independent plc
Strategic Report
for the year ended 31 December 2024
- 1 -
The directors present the strategic report and financial statements for the year ended 31 December 2024.
Review of the business
Melville Independent plc (“the Company”) is a well-established, professionally managed independent financial advisor, based in Edinburgh with clients throughout the United Kingdom. The Company’s service to clients includes personal financial planning, investment, pensions and employee benefits to both personal and corporate clients.
The Company was established in 2011 with a number of key individuals having operated within the industry since the early 1990’s. The Company has developed a client base from longstanding and trusted relationships with existing clients and professional introducers, including solicitors, accountants and private equity houses. The nature of the advice and relationships Melville Independent plc builds with its clients has led to the development of three key successful Divisions:
Wealth Management Division
Corporate Solutions Division
Mortgage Division
Melville Independent plc is an appointed representative of JKFS (UK) Limited, who are authorised and regulated by the Financial Conduct Authority.
Principal risks and uncertainties
The management of Melville Independent plc and the execution of the Company's strategy are subject to a number of risks.
The key business risks and uncertainties affecting the Company are considered to relate to regulatory changes, industry factors outwith Melville Independent's control and the retention of staff. The Company applies a risk management strategy to ensure they are continually aware of any material impact these factors might have on the successful operation of the firm.
Development and performance
Company turnover for the year was £3.1m, up from £2.9m. Ongoing income increased from £2m to £2.17m as the company continues to increase its funds under management and develops relationships with its ongoing clients. This provides a strong foundation for the company to operate from going forward as it aims to achieve sustainable growth.
At the end of the reporting period the Company operated with 13 registered individuals who have a wide range of qualifications all from level 4 upwards. Although this was a reduction in individuals from the previous year, strong client retention from a focus on high quality advice and client relationship management has meant that the overall number of clients of the company has been maintained.
The company retains a high level of capital and reserves which enable it to manage periodic fluctuations in business activity, additional costs or react to opportunities for growth through expansion should the situation arise.
The results for the year and financial position at the year end were considered satisfactory by the directors who expect growth in future periods.
Melville Independent Plc
Melville Independent plc
Strategic Report (continued)
for the year ended 31 December 2024
- 2 -
Key performance indicators
Given the nature of the IFA business, Melville Independent's directors are of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance and position of the firm.
Matthew Irvine
Director
12 May 2025
Melville Independent plc
Directors' report
for the year ended 31 December 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company continued to be that of independent financial advisors.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £374,713. 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:
Kristofor Banks
Matthew Irvine
Barry McKenzie
Auditor
The auditor, Henderson Loggie LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
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.
On behalf of the board
Matthew Irvine
Director
12 May 2025
Melville Independent plc
Directors' responsibilities statement
for the year ended 31 December 2024
- 4 -
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.
Melville Independent plc
Independent auditor's report
to the members of Melville Independent plc
- 5 -
Opinion
We have audited the financial statements of Melville Independent plc (the 'Company') for the year ended 31 December 2024 which comprise the statement of income and retained earnings, the balance sheet, 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 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Melville Independent plc
Independent auditor's report
to the members of Melville Independent plc (continued)
- 6 -
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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
As part of our planning process:
We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. Management informed us that there were no instances of known, suspected or alleged fraud;
We identified the following areas as those most likely to have a material impact on the financial statements: FCA regulations; employment law (including the Working Time Directive); anti-bribery and corruption; GDPR; and compliance with the Companies Act 2006;
We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetrated, and tailored our risk assessment accordingly; and
Using our knowledge of the company, together with the discussions held with management at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.
Melville Independent plc
Independent auditor's report
to the members of Melville Independent plc (continued)
- 7 -
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Enquiring with management about any known or suspected instances of non-compliance with laws and regulations, including FCA regulations, employment law (including the Working Time Directive); anti-bribery and corruption; GDPR, the Companies Act 2006; and fraud;
Review of legal fee expenditure and board minutes;
Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to accruals and provisions; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.
Owing to the inherent limitations of an audit, there is an unavoidable risk that some material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). For instance, the further removed non-compliance is from the events and transactions reflected in the financial statements, the less likely the auditor is to become aware of it or to recognise the non-compliance.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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.
Diana Penny
Senior Statutory Auditor
For and on behalf of Henderson Loggie LLP
12 May 2025
Chartered Accountants
Statutory Auditor
The Stamp Office
Level 5
10 - 14 Waterloo Place
Edinburgh
EH1 3EG
Melville Independent Plc
Melville Independent plc
Statement of income and retained earnings
for the year ended 31 December 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
3,114,728
2,880,996
Cost of sales
(687,066)
(615,682)
Gross profit
2,427,662
2,265,314
Administrative expenses
(2,295,314)
(2,039,778)
Other operating income
30,071
28,800
Operating profit
4
162,419
254,336
Interest receivable and similar income
8
13,842
11,543
Fair value gains and losses on investments
39
2,810
Profit before taxation
176,300
268,689
Tax on profit
9
(30,312)
(49,064)
Profit for the financial year
145,988
219,625
Retained earnings brought forward
417,369
581,463
Dividends
10
(374,713)
(383,719)
Retained earnings carried forward
188,644
417,369
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Melville Independent plc
Balance sheet
as at 31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
67,321
86,576
Investments
12
106
67,321
86,682
Current assets
Debtors
13
163,967
176,456
Cash at bank and in hand
691,313
592,162
855,280
768,618
Creditors: amounts falling due within one year
14
(536,333)
(264,098)
Net current assets
318,947
504,520
Total assets less current liabilities
386,268
591,202
Creditors: amounts falling due after more than one year
15
(47,624)
(104,403)
Provisions for liabilities
Provisions
17
(100,000)
Deferred tax liability
18
(19,430)
(100,000)
(19,430)
Net assets
238,644
467,369
Capital and reserves
Called up share capital
20
50,000
50,000
Profit and loss reserves
188,644
417,369
Total equity
238,644
467,369
The financial statements were approved by the board of directors and authorised for issue on 12 May 2025 and are signed on its behalf by:
Matthew Irvine
Director
Company registration number SC398240 (Scotland)
Melville Independent plc
Statement of cash flows
for the year ended 31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
521,551
467,912
Income taxes paid
(48,873)
(92,497)
Net cash inflow from operating activities
472,678
375,415
Investing activities
Purchase of tangible fixed assets
(1,222)
(1,896)
Proceeds from disposal of tangible fixed assets
200
Proceeds from disposal of investments
145
102,096
Interest received
13,842
11,543
Net cash generated from investing activities
12,965
111,743
Financing activities
Payment of finance leases obligations
(11,779)
(4,908)
Dividends paid
(374,713)
(383,719)
Net cash used in financing activities
(386,492)
(388,627)
Net increase in cash and cash equivalents
99,151
98,531
Cash and cash equivalents at beginning of year
592,162
493,631
Cash and cash equivalents at end of year
691,313
592,162
Melville Independent plc
Notes to the financial statements
for the year ended 31 December 2024
- 11 -
1
Accounting policies
Company information
Melville Independent plc is a public company limited by shares incorporated in Scotland. The registered office is 10 Melville Street, Edinburgh, EH3 7NS.
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, modified to include fair value movements on investments through profit and loss. The principal accounting policies adopted are set out below.
1.2
Going concern
The company's directors have considered the business plan and projections of the company for a period of at least 12 months from the date of signing, including levels of ongoing income which provide substantial value in the business, and believe that the going concern basis is appropriate in the preparation of the financial statements. true
1.3
Turnover
Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax.
Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts, the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors.
Fee income that is contingent on events outside the control of the firm is recognised when the contingent event occurs.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and machinery
25% straight line
Fixtures, fittings & equipment
25% straight line
Motor vehicles
25% straight line
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.
Melville Independent plc
Notes to the financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies (continued)
- 12 -
1.5
Fixed asset investments
Listed investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Changes in fair value are recognised in profit or loss. Transaction costs are expensed to profit or loss as incurred.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, and deposits held at call with banks.
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.
Melville Independent plc
Notes to the financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies (continued)
- 13 -
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.
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 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
Melville Independent plc
Notes to the financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies (continued)
- 14 -
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.
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.
Melville Independent plc
Notes to the financial statements (continued)
for the year ended 31 December 2024
1
Accounting policies (continued)
- 15 -
1.13
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the year they are payable.
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.
2
Judgements and key sources of estimation uncertainty
In the application of the director'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, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
Melville Independent plc
Notes to the financial statements (continued)
for the year ended 31 December 2024
2
Judgements and key sources of estimation uncertainty (continued)
- 16 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Accruals
The directors estimate requirements for accruals using post year end information. This identifies costs and income that are expected to be incurred. Accruals are only released when there is a reasonable expectation that these costs will not be invoiced in the future.
Dilapidations provisions
The directors are required to consider that estimating dilapidation costs involves inherent uncertainties regarding both the timing and amount of such costs. This process relies on key assumptions, including factors such as wear and tear, inflation rates, and applicable regulations, as well as subjective professional judgment that accounts for variables like lease terms and the condition of the property. Directors must ensure that these costs be recognised as estimates when it is probable that obligations exist, an outflow of resources is expected, and the amounts can be reliably measured.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Independent Financial Advice
3,114,728
2,880,996
2024
2023
£
£
Other revenue
Interest income
13,842
11,543
The total turnover for the year has been derived from its principal activity wholly undertaken in the United Kingdom.
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
8,498
9,053
Depreciation of tangible fixed assets held under finance leases
11,779
4,908
Operating lease charges
90,976
91,097
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
15,540
14,400
Melville Independent plc
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 17 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
23
23
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
1,118,467
1,101,221
Social security costs
121,788
117,497
Pension costs
112,794
109,692
1,353,049
1,328,410
Redundancy payments in the year include £nil (2023: £30,000).
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
232,461
285,782
Company pension contributions to defined contribution schemes
21,565
36,012
254,026
321,794
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 4).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
78,088
71,451
Company pension contributions to defined contribution schemes
8,401
15,047
The directors are considered the key management of the company.
Melville Independent plc
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 18 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
13,842
11,543
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
10,882
33,352
Deferred tax
Origination and reversal of timing differences
19,430
15,712
Total tax charge
30,312
49,064
At the Spring Budget 2021, the government announced that the corporation tax main rate for profits would increase to 25%. Following Royal Assent this was enacted from 1 April 2023 and as a result the corporation tax rate effective in the period has been set at 25% (2023 - 23.52%).
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
176,300
268,689
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2023: 24%)
44,075
63,197
Tax effect of expenses that are not deductible in determining taxable profit
13,404
9,151
Tax effect of income not taxable in determining taxable profit
(377)
Adjustments in respect of prior years
15,532
Group relief
(24,912)
(24,136)
Deferred tax adjustments in respect of prior years
(17,796)
Movement in deferred tax not recognised
9
Remeasurement of deferred tax for change in tax rates
930
Chargeable gains
299
Taxation charge for the year
30,312
49,064
Melville Independent plc
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 19 -
10
Dividends
2024
2023
£
£
Final paid
374,713
383,719
11
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
58,224
47,469
76,090
181,783
Additions
1,222
1,222
Disposals
(4,203)
(414)
(4,617)
At 31 December 2024
55,243
47,055
76,090
178,388
Depreciation and impairment
At 1 January 2024
45,799
44,500
4,908
95,207
Depreciation charged in the year
7,205
1,293
11,779
20,277
Eliminated in respect of disposals
(4,003)
(414)
(4,417)
At 31 December 2024
49,001
45,379
16,687
111,067
Carrying amount
At 31 December 2024
6,242
1,676
59,403
67,321
At 31 December 2023
12,425
2,969
71,182
86,576
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Motor vehicles
59,403
71,182
12
Fixed asset investments
2024
2023
£
£
Listed investments
106
Melville Independent plc
Notes to the financial statements (continued)
for the year ended 31 December 2024
12
Fixed asset investments (continued)
- 20 -
Movements in fixed asset investments
Investments
£
Cost or valuation
At 1 January 2024
106
Disposals
(106)
At 31 December 2024
-
Carrying amount
At 31 December 2024
-
At 31 December 2023
106
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
28,230
28,230
Other debtors
92,145
105,324
Prepayments and accrued income
43,592
42,902
163,967
176,456
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
16
11,779
11,779
Trade creditors
20,135
16,641
Corporation tax
34,170
33,301
Other taxation and social security
35,000
34,870
Other creditors
7,275
7,739
Accruals and deferred income
427,974
159,768
536,333
264,098
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
16
47,624
59,403
Other creditors
45,000
47,624
104,403
Melville Independent plc
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 21 -
16
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
11,779
11,779
In two to five years
47,624
59,403
59,403
71,182
Finance lease payments represent rentals payable by the company for certain motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. 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.
17
Provisions for liabilities
2024
2023
£
£
Dilapidations
100,000
-
Movements on provisions:
Dilapidations
£
Additional provisions in the year
100,000
The dilapidations provision relates to the expected costs of restoring the leased office building to its original condition, as required under the terms of the lease agreement. This provision has been estimated based on the terms of the lease and management's best estimate of the costs expected to be incurred at the end of the lease term.
18
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
-
21,365
Retirement benefit obligations
-
(1,935)
-
19,430
Melville Independent plc
Notes to the financial statements (continued)
for the year ended 31 December 2024
18
Deferred taxation (continued)
- 22 -
2024
Movements in the year:
£
Liability at 1 January 2024
19,430
Credit to profit or loss
(19,430)
Liability at 31 December 2024
-
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
112,794
109,692
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.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
The company has three classes of shares: A Ordinary, Ordinary, and B Ordinary all with a nominal value of £1.
21
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
61,096
91,895
Between two and five years
61,012
61,096
152,907
22
Related party transactions
During the year the company paid dividends of £357,213 (2023: £358,719) to MIPLC Holdings Limited. At the year end there was £28,230 of unpaid share capital due from MIPLC Holdings included within debtors (2023: £28,230).
Melville Independent plc
Notes to the financial statements (continued)
for the year ended 31 December 2024
- 23 -
23
Ultimate controlling party
The ultimate controlling party was MIPLC Holdings Limited which is the largest and smallest entity which group financial statements are prepared and which are publicly available.
24
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
145,988
219,625
Adjustments for:
Taxation charged
30,312
49,064
Investment income
(13,842)
(11,543)
Depreciation and impairment of tangible fixed assets
20,277
13,961
Gain on sale of investments
(39)
(2,810)
Increase in provisions
100,000
-
Movements in working capital:
Decrease in debtors
12,489
213,168
Increase/(decrease) in creditors
226,366
(13,553)
Cash generated from operations
521,551
467,912
25
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
592,162
99,151
691,313
Obligations under finance leases
(71,182)
11,779
(59,403)
520,980
110,930
631,910
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