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Registration number: 09183897

Prepared for the registrar
Harrowells Limited
Annual Report and Unaudited Financial Statements
for the Year Ended 30 November 2024

Harrowells Limited

Contents

Company Information | 1
Balance Sheet | 2
Notes to the Financial Statements | 3 to 9

Harrowells Limited

Company Information

Directors | S R K Black R J Hugill R P Onyett R C Wood E I M Ryder M J Hayward M D Rowley

Registered office | 1 St Saviourgate York North Yorkshire YO1 8ZQ

Bankers | HSBC Bank plc 13 Parliament Street York North Yorkshire YO1 8RS

Accountants | Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

Harrowells Limited

(Registration number: 09183897)
Balance Sheet as at 30 November 2024

| Note | 2024 £ | 2023 £
Fixed assets |  |  |
Tangible assets | 5 | 82,521 | 88,608
Current assets |  |  |
Debtors | 6 | 3,412,268 | 3,361,544
Cash at bank and in hand |  | 13,636 | 13,325
|  | 3,425,904 | 3,374,869
Creditors: Amounts falling due within one year | 7 | (1,976,027) | (2,174,555)
Net current assets |  | 1,449,877 | 1,200,314
Total assets less current liabilities |  | 1,532,398 | 1,288,922
Creditors: Amounts falling due after more than one year | 7 | (20,743) | -
Provisions for liabilities |  | (86,960) | (33,987)
Net assets |  | 1,424,695 | 1,254,935
Capital and reserves |  |  |
Called up share capital |  | 540 | 580
Share premium reserve |  | 504,366 | 322,204
Capital redemption reserve |  | 200 | 100
Retained earnings |  | 919,589 | 932,051
Shareholders' funds |  | 1,424,695 | 1,254,935

For the financial year ending 30 November 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• | The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
• | The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 19 June 2025 and signed on its behalf by:

R P Onyett
Director

Harrowells Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

| 1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
1 St Saviourgate
York
North Yorkshire
YO1 8ZQ

| 2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

Critical accounting 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 amounts 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.

Key Sources of estimation uncertainty
Amounts recoverable on contracts (AROC) - The process of assessing AROC requires various estimates and judgements to be made. Fee earners are required to record time spent on client assignments and this is used as the basis for the AROC estimate. The fee earners review their work in progress balances regularly to identify likely irrecoverable amounts. Recovery rates are then applied to the balances according to work type. Residential and contingent work in progress is excluded from this.
Residential AROC is valued by removing all work in progress from the calculation and then multiplying the fixed fee by the number of matters post exchange at the year end.
Contingent work in progress is removed from the valuation and is only recognised where the contingent event has occurred. The carrying amount is £1,284,875 (2023 - £1,215,612).

Bad debt provision - Due to the nature of the business, there are high levels of trade receivables at the year end, and therefore a risk that some of these balances may be irrecoverable. A bad debt review is carried out at the year end where debts are assessed and provided against when the recoverability of these balances is considered uncertain. The carrying amount is £16,608 (2023 - £24,511).

Provision for client claims - The provision is based on a review of potential claims and an assessment of any potential settlements that are considered likely as a result of these. The carrying amount is £30,000 (2023 - £nil).

Harrowells Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

Dilapidations provision - a provision for dilapidations on the offices is being built up each year based on the amount expected to be payable per square foot of office space on termination of the relevant leases. The carrying amount is £47,932 (2023 - £22,924).

Revenue recognition

Income represents the fair value of services provided during the year on client assignments. Fair value reflects the amounts expected to be recoverable from clients based on time spent, skills provided and expenses incurred, and excludes VAT. Fee income is recognised as contract activity progresses and the right to consideration is secured, except where the final outcome cannot be assessed with reasonable certainty.
Fee income in respect of contingent fee assignments is recognised when recoverability of the fee is no longer subject to the contingent event.
Unbilled fee income on individual assignments is included as amounts recoverable on contracts within debtors.

Disbursements
Disbursements are not included in income or expenses, but are netted against each other.

Tax

The tax expense for the period comprises corporation and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class | Amortisation method and rate
Goodwill | 5 years straight line

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Harrowells Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Furniture, fittings and equipment | 3 - 7 years straight line
Motor vehicles | 5 years straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Provisions

Provisions are recognised when the company has an obligation at the reporting date 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.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the profit and loss account on a straight line basis over the lease term.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Harrowells Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

Harrowells Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

| 3 | Staff numbers

The average number of persons employed by the company (including directors) during the year, was 122 (2023 - 121).

| 4 | Intangible assets

| Goodwill £
Cost and amortisation
At 1 December 2023 and at 30 November 2024 | 1,575,000
Carrying amount
At 1 December 2023 and at 30 November 2024 | -

| 5 | Tangible assets

| Furniture, fittings and equipment £ | Motor vehicles £ | Total £
Cost
At 1 December 2023 | 617,689 | 6,425 | 624,114
Additions | 32,381 | - | 32,381
Disposals | (17,928) | - | (17,928)
At 30 November 2024 | 632,142 | 6,425 | 638,567
Depreciation
At 1 December 2023 | 529,081 | 6,425 | 535,506
Charge for the year | 37,445 | - | 37,445
Eliminated on disposal | (16,905) | - | (16,905)
At 30 November 2024 | 549,621 | 6,425 | 556,046
Carrying amount
At 30 November 2024 | 82,521 | - | 82,521
At 30 November 2023 | 88,608 | - | 88,608

| 6 | Debtors

| 2024 £ | 2023 £
Trade debtors | 1,702,320 | 1,695,058
Other debtors | 72,581 | 60,697
Prepayments | 352,492 | 390,177
Amounts recoverable on contracts | 1,284,875 | 1,215,612
| 3,412,268 | 3,361,544

Harrowells Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

| 7 | Creditors

| Note | 2024 £ | 2023 £
Due within one year |  |  |
Loans and borrowings | 9 | 544,807 | 1,101,645
Trade creditors |  | 73,127 | 86,670
Social security and other taxes |  | 460,607 | 439,637
Outstanding defined contribution pension costs |  | 20,629 | 17,513
Other creditors |  | 172,599 | 10,437
Accrued expenses |  | 281,028 | 375,437
Corporation tax liability |  | 163,385 | 41,398
Directors' loan accounts |  | 259,845 | 101,818
|  | 1,976,027 | 2,174,555
Due after one year |  |  |
Loans and borrowings | 9 | 20,743 | -

| 8 | Provisions

| Client claims provision £ | Dilapidations provision £ | Total £
At 1 December 2023 | - | 22,924 | 22,924
Additional provisions | 30,000 | - | 30,000
Increase in existing provisions | - | 25,008 | 25,008
At 30 November 2024 | 30,000 | 47,932 | 77,932

| 9 | Loans and borrowings

Current loans and borrowings

| 2024 £ | 2023 £
Bank overdrafts | 212,026 | 750,794
Other borrowings | 332,781 | 350,851
| 544,807 | 1,101,645

The bank overdrafts are secured by a fixed and floating charge over the company's assets.

Non-current loans and borrowings

| 2024 £ | 2023 £
Other borrowings | 20,743 | -

Harrowells Limited

Notes to the Financial Statements for the Year Ended 30 November 2024

| 10 | Share capital

Allotted, called up and fully paid shares

| 2024 | 2023
| No. | £ | No. | £
Ordinary 'A' shares of £0.01 each | 10,000 | 100.00 | 10,000 | 100.00
Ordinary 'B' shares of £0.01 each | 10,000 | 100.00 | 10,000 | 100.00
Ordinary 'C' shares of £0.01 each | - | - | 10,000 | 100.00
Ordinary 'D' shares of £0.01 each | 10,000 | 100.00 | 10,000 | 100.00
Ordinary 'G' shares of £0.01 each | 10,000 | 100.00 | 10,000 | 100.00
Ordinary 'J' shares of £0.01 each | 10 | 0.10 | 10 | 0.10
Ordinary 'K' shares of £0.01 each | 10 | 0.10 | 10 | 0.10
Ordinary 'L' shares of £0.01 each | 10 | 0.10 | 10 | 0.10
Ordinary 'M' shares of £0.01 each | 8,000 | 80.00 | 8,000 | 80.00
Ordinary 'N' shares of £0.01 each | 3,000 | 30.00 | - | -
Ordinary 'O' shares of £0.01 each | 3,000 | 30.00 | - | -
| 54,030 | 540 | 58,030 | 580

On 21 June 2024 the company bought back 10,000 ordinary 'C' shares which were subsequently cancelled on the same day, from John Millar for a total aggregate amount of £344,128.
On 3 July 2024, 3,000 ordinary 'N' shares were allotted to Matthew Hayward for a nominal value of £30 and 3,000 ordinary 'O' shares were allotted to Matthew Rowley for a nominal value of £30.

| 11 | Financial commitments, guarantees and contingencies

The total amount of financial commitments not included in the balance sheet is £172,538 (2023 - £214,447).

| 12 | Deferred tax

Deferred tax assets and liabilities

2024 | Liability £
Difference between accumulated depreciation and amortisation and capital allowances | 9,028
| 9,028

2023 | Liability £
Difference between accumulated depreciation and amortisation and capital allowances | 11,063
| 11,063