| J H Lowson & Company Limited |
| Strategic Report |
|
| The directors present their strategic report for the year ended 31 March 2025. |
|
| Review of the business |
|
| The company offers investment management and independent financial advisory services to retail and corporate customers. |
| • |
Profit for the period: £224,188 (2024: £57,182) |
| • |
Shareholders’ funds: £196,345 (2024: £148,606) |
| • |
Dividends paid: £120,375 (2024: £50,858) |
|
|
| Revenues from Investment Management Services increased by 10%. Funds under management have increased during the period. This is largely as a result of an increase in asset values over the period but also some new business growth. |
| Revenues from Advisory Services also grew by about 12%. Once again, this is mainly through an increase in the asset values, with a small amount of new business. |
| Consultancy Services remained broadly the same - as expected for non-core services. |
| Overall, Company revenues increased by 12% while cost of sales decreased by 100% - as a result of the completion of and earn out agreement with a former Director in the previous period. Overheads increased by 13%, primarily due to higher staff costs. |
|
| Key performance indicators (‘KPIs’) |
|
| The Board monitors the progress of the company by reference to the following KPIs: |
|
|
|
|
|
2025 |
2024 |
|
| Investment Management Fees |
63,720 |
57,626 |
Company’s fees levied on the funds under management. |
|
| Fees and Commissions |
289,445 |
256,311 |
Fees received from investment services provided. |
| Consultancy fees |
5,687 |
5,770 |
Fees from consulting services provided. |
|
|
| Retained Profit |
224,188 |
57,182 |
Balance of Revenue less Expenditure for the period. |
|
| Cash and Bank Reserves |
168,442 |
82,022 |
Balance of cash held in hand and at bank. |
|
| J H Lowson & Company Limited |
| Strategic Report |
|
| Principal risks and uncertainties |
|
| Compliance with regulatory, legal and ethical standards – the company not only has obligations under the industry regulator (Financial Conduct Authority) but also to its professional body (The Chartered Insurance Institute), which awards the firm’s Corporate Chartered Firm status. Maintaining regulatory permissions and professional recognition is a high priority for the company. |
| Due to the sector in which the company operates, many of the financial risks such as price and credit risk are minimised. The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. The company has developed a framework for identifying risks which focuses on the management of its capital requirements and the financial resources at its disposal to meet those costs. |
| The company operates exclusively within the United Kingdom and has all the usual risks associated with operating a business. |
| The company still has around 6.5% of Investment Management Funds Under Management that it is at risk of withdrawal (from a former business introducer). Put into perspective, the complete withdrawal of these remaining assets would result in a loss of only about 1.3% of total revenues and only about 2% of Net Profit, before tax. However, this decline has been gradual (three years so far) and is expected to continue in the same manner. The rate of withdrawal is slowing, as clients become more “sticky” (i.e. those that are less engaged with the former introducer). It is likely that withdrawals will be balanced somewhat with new clients to the Investment Management Service and the general long term increase in asset prices (increasing funds under management). We would therefore still expect to see positive growth in Investment Management revenues overall, in the long term – punctuated with short periods where revenues fall ( due to falling asset prices). |
| Core revenues from Advisory services are expected to follow the same long-term trend - increasing with the general rise in asset prices as well as the additional new client assets (which should more than balance any loss of assets, from natural wastage). |
Operating costs are expected to remain low/non existent for the foreseeable future. Overheads are expected to increase in line with inflation (as inflationary increases are usually passed on in staffing costs, which is the largest overhead). |
| The company has a little under 1 year left on the office lease and is actively considering options for renewing or relocating. |
|
| Future developments |
|
| The directors expect revenues to grow in line with the increase in asset prices – which is expected to exceed inflation, over the longer term. In the short term (in the next financial period) we could see a possible reduction in revenues (because of a sharp fall in asset prices during the beginning of that period). However, it will depend on how quickly asset prices recover. |
| Over the longer term, the company will aim to expand the business through further acquisitions. |
| The company may purchase a property and relocate the head office – if a suitable option becomes available |
|
| This report was approved by the board on 6 June 2025 and signed on its behalf. |
|
|
|
| J H Lowson |
| Director |
|
| Basis for opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
|
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
| Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
| Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
| Other information |
| The 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. |
|
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| ● |
the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| ● |
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. |
| Matters on which we are required to report by exception |
| In 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. |
| ● |
Review of directors minutes and review of nominal postings for legal and professional fees ensured we identified any regulatory compliance issues and laws that company must follow in the year and to the date of signing the financial statements; |
| ● |
The assessment of fraud was considered as low due to the segregation of duties seen, the low levels of cash handled. A review of journal entries and consideration of their appropriateness was carried out through the audit; |
| ● |
During the audit we speak to management, test the systems and speak to various members of the finance function to understand the entity its processes and the nature of trade to assist in determining if the financial statements are true and fair; |
| ● |
Challenging assumptions made by management in making their significant accounting estimates; |
| ● |
Reviewing financial statement disclosure and testing to supporting documentation to assess compliance with applicable laws and regulations; |
| ● |
The company is highly regulated by the FCA as part of the audit we review submissions in the year for compliance. |
| A further description of our responsibilities for the audit of the financial statements is available on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. |
|
| 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. |
|
|
| Penelope Bowden ACA |
| (Senior Statutory Auditor) |
Suite 2, 2 Mannin Way |
| for and on behalf of |
Lancaster Business Park |
| Riverside Accountancy Lancaster Limited |
Caton Road |
| Statutory Auditor |
Lancaster |
| 06/06/2025 |
LA1 3SU |
|
| J H Lowson & Company Limited |
| Statement of Cash Flows |
| for the year ended 31 March 2025 |
|
| Notes |
|
2025 |
|
2024 |
| £ |
£ |
| Operating activities |
| Profit for the financial year |
225,480 |
|
62,773 |
|
| Adjustments for: |
| Depreciation |
1,328 |
|
1,524 |
| (Increase) in debtors |
(282) |
|
(2,597) |
| (Decrease)/increase in creditors |
(6,758) |
|
8,864 |
|
|
|
219,768 |
|
70,564 |
|
| Interest received |
3,362 |
|
934 |
| Interest paid |
|
|
(6,000) |
|
(6,525) |
| Corporation tax paid |
(11,720) |
|
(13,872) |
|
| Cash generated by operating activities |
205,410 |
|
51,101 |
|
|
|
|
|
|
| Investing activities |
| Payments to acquire tangible fixed assets |
(338) |
|
(330) |
| Payments to acquire investments |
(100,000) |
|
- |
| Proceeds from sale of investments |
6,000 |
|
- |
|
| Cash used in investing activities |
(94,338) |
|
(330) |
|
|
|
|
|
|
| Financing activities |
| Equity dividends paid |
(120,375) |
|
(50,858) |
| Proceeds from new loans |
100,000 |
|
- |
| Repayment of loans |
(4,277) |
|
(3,733) |
|
| Cash used in financing activities |
(24,652) |
|
(54,591) |
|
|
|
|
|
|
| Net cash generated/(used) |
| Cash generated by operating activities |
205,410 |
|
51,101 |
| Cash used in investing activities |
(94,338) |
|
(330) |
| Cash used in financing activities |
(24,652) |
|
(54,591) |
|
| Net cash generated/(used) |
86,420 |
|
(3,820) |
|
| Cash and cash equivalents at 1 April |
82,022 |
|
85,841 |
| Cash and cash equivalents at 31 March |
168,442 |
|
82,021 |
|
|
|
|
|
|
| Cash and cash equivalents comprise: |
| Cash at bank |
168,442 |
|
82,022 |
|
|
|
|
|
|
|
| J H Lowson & Company Limited |
| Notes to the Accounts |
| for the year ended 31 March 2025 |
|
| 1 |
Summary of significant accounting policies |
|
|
Basis of preparation |
|
The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. |
|
|
Turnover |
|
The company’s turnover represents the value, of services supplied to clients during the period. Turnover represents fees and commissions, paid to the company during the year, including commission earned and paid on policies proposed and accepted on risk before the year end, wholly conducted in the United Kingdom |
|
|
Intangible fixed assets |
|
Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses over their economic lives as follows:- |
|
Goodwill |
straight line over economic life of 5 years |
|
|
Tangible fixed assets |
|
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land and investment properties, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
|
|
Leasehold building improvements |
straight line over the lease term of 10 years |
|
Plant and machinery |
25% reducing balance |
|
Fixtures, fittings, and equipment |
25% reducing balance |
|
|
Investment property |
|
Investment property is initially recognised at cost and then subsequently measured at fair value. Changes in value are recognised in profit or loss. |
|
|
Cash at bank and in hand |
|
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short term liquid investments with the orginal maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within the borrowings in current liabilities. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Pensions |
|
Contributions to defined contribution plans are expensed in the period to which they relate. |
|
| 2 |
Analysis of turnover |
2025 |
|
2024 |
| £ |
£ |
|
|
Investment management services |
63,720 |
|
57,626 |
|
Fees and commissions |
289,445 |
|
256,311 |
|
Consultancy fees |
5,687 |
|
5,770 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
358,852 |
|
319,707 |
|
|
|
|
|
|
|
|
|
|
| 3 |
Operating profit |
2025 |
|
2024 |
| £ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
1,328 |
|
1,524 |
|
Operating lease rentals - land and buildings |
12,485 |
|
12,485 |
|
Auditors' remuneration for audit services |
2,220 |
|
2,320 |
|
|
|
|
|
|
|
|
|
|
| 4 |
Directors' emoluments |
2025 |
|
2024 |
| £ |
£ |
|
|
Emoluments |
60,900 |
|
28,317 |
|
|
|
|
|
|
|
|
|
|
|
Highest paid director: |
|
Emoluments |
42,010 |
|
18,900 |
|
|
|
|
|
|
|
|
|
|
| 5 |
Staff costs |
2025 |
|
2024 |
| £ |
£ |
|
|
Wages and salaries |
73,773 |
|
65,817 |
|
Social security costs |
755 |
|
(3,066) |
|
Other pension costs |
5,974 |
|
5,421 |
|
|
|
|
|
|
80,502 |
|
68,172 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Directors |
2 |
|
2 |
|
Administration |
1 |
|
2 |
|
|
|
|
|
|
3 |
|
4 |
|
|
|
|
|
|
|
|
|
|
| 6 |
Interest payable |
2025 |
|
2024 |
| £ |
£ |
|
|
Bank loans |
6,000 |
|
6,525 |
|
|
|
|
|
|
|
|
|
|
| 7 |
Taxation |
2025 |
|
2024 |
| £ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
55,872 |
|
11,720 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
202 |
|
(135) |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
56,074 |
|
11,585 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2025 |
|
2024 |
| £ |
£ |
|
Profit on ordinary activities before tax |
224,188 |
|
57,182 |
|
|
|
|
|
|
|
|
|
|
Applicable rate of corporation tax in the UK |
24.83% |
|
20.08% |
|
| £ |
£ |
|
Profit on ordinary activities multiplied by the applicable rate of corporation tax |
|
55,666 |
|
11,482 |
|
|
Effects of: |
|
Timing differences |
289 |
|
103 |
|
Disallowed expenditure |
119 |
|
- |
|
Current tax charge for period |
56,074 |
|
11,585 |
|
|
|
|
|
|
|
|
|
|
| 8 |
Intangible fixed assets |
£ |
|
Goodwill: |
|
|
Cost |
|
At 1 April 2024 |
30,000 |
|
At 31 March 2025 |
30,000 |
|
|
|
|
|
|
|
|
|
|
Amortisation |
|
At 1 April 2024 |
30,000 |
|
At 31 March 2025 |
30,000 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 March 2025 |
- |
|
|
|
|
|
|
|
|
|
|
Goodwill was written off in equal monthly instalments over its estimated economic life of 5 years. |
|
|
| 9 |
Tangible fixed assets |
|
|
Investment Property |
|
Land and buildings |
|
Fixtures, fittings, tools and equipment |
|
Total |
|
|
At cost |
|
At cost |
|
At cost |
| £ |
£ |
£ |
£ |
|
Cost |
|
At 1 April 2024 |
148,001 |
|
4,034 |
|
9,304 |
|
161,339 |
|
Additions |
- |
|
- |
|
338 |
|
338 |
|
At 31 March 2025 |
148,001 |
|
4,034 |
|
9,642 |
|
161,677 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 April 2024 |
- |
|
3,291 |
|
5,945 |
|
9,236 |
|
Charge for the year |
- |
|
403 |
|
925 |
|
1,328 |
|
At 31 March 2025 |
- |
|
3,694 |
|
6,870 |
|
10,564 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 March 2025 |
148,001 |
|
340 |
|
2,772 |
|
151,113 |
|
At 31 March 2024 |
148,001 |
|
743 |
|
3,359 |
|
152,103 |
|
|
|
|
|
|
|
|
|
|
| 10 |
Debtors |
2025 |
|
2024 |
| £ |
£ |
|
|
Trade debtors |
2,600 |
|
300 |
|
Prepayments and accrued income |
4,380 |
|
6,398 |
|
|
|
|
|
|
6,980 |
|
6,698 |
|
|
|
|
|
|
|
|
|
| 11 |
Investments held as current assets |
2025 |
|
2024 |
| £ |
£ |
|
Market Value |
|
Unlisted investments |
95,346 |
|
- |
|
|
|
|
|
|
|
|
|
|
|
| 12 |
Creditors: amounts falling due within one year |
2025 |
|
2024 |
| £ |
£ |
|
|
Bank loan |
4,277 |
|
3,733 |
|
Other loan |
|
|
|
|
100,000 |
|
- |
|
Corporation tax |
55,872 |
|
11,720 |
|
Other taxes and social security costs |
1,690 |
|
978 |
|
Accruals and deferred income |
6,401 |
|
13,871 |
|
|
|
|
|
|
168,240 |
|
30,302 |
|
|
|
|
|
|
|
|
|
|
The other loan is a loan from a director, interest free, repayable other than by instalments within twelve months. |
|
| 13 |
Creditors: amounts falling due after one year |
2025 |
|
2024 |
| £ |
£ |
|
|
Bank loan |
56,123 |
|
60,944 |
|
| 14 |
Loans |
2025 |
|
2024 |
| £ |
£ |
|
Loans not wholly repayable within five years: |
|
Bank loan repayment by instalments over fifteen years |
60,400 |
|
64,677 |
|
Other loan repayable other than by instalments within one year |
100,000 |
|
- |
|
|
|
|
|
|
160,400 |
|
64,677 |
|
|
|
|
|
|
|
|
|
|
Analysis of maturity of debt: |
|
Within one year or on demand |
104,277 |
|
3,733 |
|
Between one and two years |
4,277 |
|
3,733 |
|
Between two and five years |
11,199 |
|
11,199 |
|
After five years |
40,647 |
|
46,012 |
|
|
|
|
|
|
160,400 |
|
64,677 |
|
|
|
|
|
|
|
|
|
|
The bank loan is secured on leasehold property bought in 2018 on a 125 year lease, the interest rate being 4.7% over base rate per annum, the average interest rate for the year being 10% (2024: 10%) |
|
|
| 15 |
Deferred taxation |
2025 |
|
2024 |
| £ |
£ |
|
|
Accelerated capital allowances |
1,173 |
|
971 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2025 |
|
2024 |
| £ |
£ |
|
|
At 1 April |
971 |
|
1,106 |
|
Charged/(credited) to the profit and loss account |
202 |
|
(135) |
|
|
At 31 March |
1,173 |
|
971 |
|
|
|
|
|
|
|
|
|
|
|
| 16 |
Share capital |
Nominal |
|
2025 |
|
2025 |
|
2024 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
45,000 |
|
45,000 |
|
45,000 |
|
|
|
|
|
|
|
|
|
|
| 17 |
Profit and loss account |
2025 |
|
2024 |
| £ |
£ |
|
|
At 1 April |
103,606 |
|
108,867 |
|
Profit for the financial year |
168,114 |
|
45,597 |
|
Dividends |
(120,375) |
|
(50,858) |
|
|
At 31 March |
151,345 |
|
103,606 |
|
|
|
|
|
|
|
|
|
|
| 18 |
Dividends |
2025 |
|
2024 |
| £ |
£ |
|
|
Dividends on ordinary shares (note 17) |
120,375 |
|
50,858 |
|
|
|
|
|
|
|
|
|
| 19 |
Other financial commitments |
|
|
Total future minimum lease payments under non-cancellable operating leases: |
|
|
|
Land and buildings |
|
Land and buildings |
Other |
Other |
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
| £ |
£ |
£ |
£ |
|
Falling due: |
|
within one year |
12,280 |
|
12,485 |
|
- |
|
- |
|
within two to five years |
- |
|
12,280 |
|
- |
|
- |
|
|
12,280 |
|
24,765 |
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
| 20 |
Related party transactions |
|
|
During the year the investment property was rented out to a related party at a peppercorn rate, a benefit in kind has been included within the financial statements. |
|
During the year a director advanced a loan of £100,000 to the company (2024 - £nil), repayable other than by instalments within one year, interest free, the balance outstanding at the year end being £100,000 (2024 - £nil) |
|
During the year a company connected to a previous director charged the company £nil (2024 - £138,862) for their share of commissions earned in the period. |
|
| 21 |
Controlling party |
|
|
The company is ultimately controlled by J H Lowson. |
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| 22 |
Presentation currency |
|
|
The financial statements are presented in Sterling, rounded to the nearest pound. |
|
|
| 23 |
Legal form of entity and country of incorporation |
|
|
J H Lowson & Company Limited is a private company limited by shares and incorporated in England. |
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| 24 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is: |
|
|
3rd Floor |
|
Rosemary House |
|
61 North Road |
|
Lancaster |
|
LA1 1LU |