REGISTERED NUMBER: 06598441 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

AFFINITY LAW LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

N J Kitchener

S E Roberts

SECRETARY:

S E Roberts

REGISTERED OFFICE:

100 New Walk

Leicester

Leicestershire

LE1 7EA

REGISTERED NUMBER:

06598441 (England and Wales)

ACCOUNTANTS:

Magma Audit LLP

Unit 2 Charnwood Edge Business Park

Syston Road, Leicester

LE7 4UZ

Magma Audit LLP is part

Of the Dains Group

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

209,790

93,213

209,790

93,213

CURRENT ASSETS

Debtors

6

1,373,670

909,023

Cash at bank and in hand

1,680,986

2,269,133

3,054,656

3,178,156

CREDITORS

Amounts falling due within one year

7

(2,328,663

)

(2,148,443

)

NET CURRENT ASSETS

725,993

1,029,713

TOTAL ASSETS LESS CURRENT LIABILITIES

935,783

1,122,926

CREDITORS

Amounts falling due after more than one year

8

(195,284

)

(57,030

)

NET ASSETS

740,499

1,065,896

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

740,497

1,065,894

740,499

1,065,896

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 26 September 2025 and were signed on its behalf by:

N J Kitchener - Director

1.	STATUTORY INFORMATION

Affinity Law Limited is a limited company, registered in England and Wales. Its registered office address is 100 New Walk Leicester LE1 7EA and the registered number is 06598441.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentation currency of the financial statements is pound sterling (£) and figures are rounded to the nearest £1.

Turnover

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2012, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures, fittings and equipment 25% reducing balance

Computer equipment 3 years straight line

Motor vehicles 25% reducing balance

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

- Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 23 (2023 - 22 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2024

and 31 December 2024

677,250

AMORTISATION

At 1 January 2024

and 31 December 2024

677,250

NET BOOK VALUE

At 31 December 2024

-

At 31 December 2023

-

5.	TANGIBLE FIXED ASSETS

Short

leasehold

Fixtures

land &

and

Motor

Computer

buildings

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2024

750

30,016

205,482

37,118

273,366

Additions

-

-

220,404

-

220,404

Disposals

-

-

(173,802

)

-

(173,802

)

At 31 December 2024

750

30,016

252,084

37,118

319,968

DEPRECIATION

At 1 January 2024

750

27,138

118,953

33,312

180,153

Charge for year

-

1,805

46,578

1,903

50,286

Eliminated on disposal

-

-

(120,261

)

-

(120,261

)

At 31 December 2024

750

28,943

45,270

35,215

110,178

NET BOOK VALUE

At 31 December 2024

-

1,073

206,814

1,903

209,790

At 31 December 2023

-

2,878

86,529

3,806

93,213

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

150,000

150,000

Other debtors

4,559

4,559

Directors' current accounts

903,210

729,542

VAT

281,487

-

Deferred tax asset

17,265

-

Prepayments and accrued income

17,149

24,922

1,373,670

909,023

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Hire purchase contracts

32,838

11,423

Trade creditors

2,065,564

1,510,216

Corporation tax

152,250

464,228

Social security and other taxes

26,117

27,216

VAT

-

126,370

Other creditors

3,168

3,152

Accruals and deferred income

48,726

5,838

2,328,663

2,148,443

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Hire purchase contracts

195,284

57,030

9.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

£

Hire purchase contracts

228,122

68,453

Hire purchase contracts are secured on the assets concerned.

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2024 and 31 December 2023:

2024

2023

£

£

N J Kitchener

Balance outstanding at start of year

400,118

370,968

Amounts advanced

485,639

504,668

Amounts repaid

(405,550

)

(475,518

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

480,207

400,118

S E Roberts

Balance outstanding at start of year

329,424

307,516

Amounts advanced

499,129

497,425

Amounts repaid

(405,550

)

(475,517

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

423,003

329,424