REGISTERED NUMBER: 08058015 (England and Wales)

TALBOTS LAW LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

8

Statement of Financial Position

9

Statement of Changes in Equity

10

Statement of Cash Flows

11

Notes to the Statement of Cash Flows

12

Notes to the Financial Statements

14

DIRECTORS:

Mr A.E. Wakeman

Mr J.E. Gwilliams

Ms L.M. Jones

Mrs R.E. Pardoe

Mrs J. Flint

Mr D.A. Hodgetts

Mr A. Vigus

Mr P.A. Patel

Ms J. Bains

Mr J.W. Wright

Mrs N.E. Reeve

REGISTERED OFFICE:

Morgan House

25-27 Hagley Road

Stourbridge

West Midlands

DY8 1QH

REGISTERED NUMBER:

08058015 (England and Wales)

AUDITORS:

Folkes Worton LLP

Chartered Accountants and Statutory Auditor

15-17 Church Street

Stourbridge

West Midlands

DY8 1LU

The directors present their strategic report for the year ended 31 December 2024.

REVIEW OF BUSINESS

The results for the year and financial position of the company are as shown in the annexed financial statements.

The directors consider the key performance indicators to be operating profit and net assets, which communicate the financial performance and strength of the company and are all disclosed within the body of the financial statements.

Since the incorporation of the business, the business has continued to grow. Consistent control of overhead costs has been reflected in the trading results, demonstrating the value of the policies adopted by the company.

From knowledge and information available currently, the directors feel that consistent application of company policies will enable them to continue to compete in the current market.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The company's activities expose it to a number of financial risks including credit risk.

Credit risk

The company's principal financial assets are trade and other receivables. The company's credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables. The company has no significant concentration of credit risk, with exposure spread over a large number of counterparts and customers.

ON BEHALF OF THE BOARD:

Mr D.A. Hodgetts - Director

30 September 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of solicitors.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mr A.E. Wakeman

Mr J.E. Gwilliams

Ms L.M. Jones

Mrs R.E. Pardoe

Mrs J. Flint

Mr D.A. Hodgetts

Mr A. Vigus

Mr P.A. Patel

Ms J. Bains

Mr J.W. Wright

Mrs N.E. Reeve

Other changes in directors holding office are as follows:

Mrs M.E. Morgan - resigned 31 December 2024

Mr P.W.A. Hill - resigned 31 December 2024

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Folkes Worton LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr D.A. Hodgetts - Director

30 September 2025

Opinion

We have audited the financial statements of Talbots Law Ltd (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of 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.

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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 Report of the Directors.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page three, 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 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.

Auditors' 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 a Report of the Auditors 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:

Based on our understanding of the company and its industry, we identified the principal risks of non-compliance with laws and regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks were related to:

- Revenue recognition;

- Existence and valuation of work in progress;

- Existence and valuation of trade receivables;

- Existence and completeness of trade liabilities and accruals;

- Management override of controls;

- The posting of inappropriate journal entries to increase revenue or reduce expenditure;

- Management bias in accounting estimates and judgements; and

- Non-disclosure of transactions and balances with related parties.

In response to the above identified risks, audit procedures were designed to enable us to arrive at appropriately drawn conclusions. These audit procedures include;

- Documentation of the income and expenditure recording processes and agreement of a sample of income and expenditure from source to the nominal entries;

- Verification with suppliers of the valuation of trade payables and accruals;

- Review and challenging of journal entries, in particular unusual transactions and account combinations;

- Challenging of assumptions and judgements made by management in their assessment of significant accounting estimates;

- Review of the list of related parties, discussion with management and review of the records of account; and

- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely it would be for the inherently limited procedures required by auditing standards to identify it. In addition, as with any audit, there remains a risk of not detecting irregularities as these may include collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Nigel Meredith FCA (Senior Statutory Auditor)

for and on behalf of Folkes Worton LLP

Chartered Accountants and Statutory Auditor

15-17 Church Street

Stourbridge

West Midlands

DY8 1LU

30 September 2025

TURNOVER

30,117,193

24,980,195

Cost of sales

4,780,598

4,379,974

GROSS PROFIT

25,336,595

20,600,221

Administrative expenses

25,966,112

21,014,261

(629,517

)

(414,040

)

Other operating income

2,870,243

3,024,045

OPERATING PROFIT

4

2,240,726

2,610,005

Interest receivable and similar income

91,212

89,276

2,331,938

2,699,281

Interest payable and similar expenses

5

316,271

300,742

PROFIT BEFORE TAXATION

2,015,667

2,398,539

Tax on profit

6

449,804

555,099

PROFIT FOR THE FINANCIAL YEAR

1,565,863

1,843,440

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,565,863

1,843,440

FIXED ASSETS

Intangible assets

7

2,893,334

3,205,334

Tangible assets

8

551,423

884,951

3,444,757

4,090,285

CURRENT ASSETS

Stocks

9

6,072,625

4,424,726

Debtors

10

3,338,669

4,214,902

Cash at bank and in hand

3,005,859

1,206,353

12,417,153

9,845,981

CREDITORS

Amounts falling due within one year

11

6,093,760

4,482,467

NET CURRENT ASSETS

6,323,393

5,363,514

TOTAL ASSETS LESS CURRENT LIABILITIES

9,768,150

9,453,799

CREDITORS

Amounts falling due after more than one year

12

(1,242,753

)

(2,494,265

)

PROVISIONS FOR LIABILITIES

16

(197,301

)

(197,301

)

NET ASSETS

8,328,096

6,762,233

CAPITAL AND RESERVES

Called up share capital

17

721

721

Retained earnings

18

8,327,375

6,761,512

SHAREHOLDERS' FUNDS

8,328,096

6,762,233

The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2025 and were signed on its behalf by:

Mr D.A. Hodgetts - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

721

4,918,072

4,918,793

Changes in equity

Total comprehensive income

-

1,843,440

1,843,440

Balance at 31 December 2023

721

6,761,512

6,762,233

Changes in equity

Total comprehensive income

-

1,565,863

1,565,863

Balance at 31 December 2024

721

8,327,375

8,328,096

Cash flows from operating activities

Cash generated from operations

1

3,235,514

1,141,979

Interest paid

(258,614

)

(289,943

)

Finance costs paid

(57,657

)

(6,503

)

Tax paid

(232,792

)

(593,998

)

Net cash from operating activities

2,686,451

251,535

Cash flows from investing activities

Purchase of intangible fixed assets

(23,750

)

(230,000

)

Purchase of tangible fixed assets

(273,155

)

(499,666

)

Sale of tangible fixed assets

437,645

-

Interest received

91,212

89,276

Net cash from investing activities

231,952

(640,390

)

Cash flows from financing activities

New loans in year

-

1,000,000

Loan repayments in year

(1,065,608

)

(894,526

)

Amount withdrawn by directors

(53,289

)

(133,631

)

Net cash from financing activities

(1,118,897

)

(28,157

)

Increase/(decrease) in cash and cash equivalents

1,799,506

(417,012

)

Cash and cash equivalents at beginning of year

2

1,206,353

1,623,365

Cash and cash equivalents at end of year

2

3,005,859

1,206,353

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

2,015,667

2,398,539

Depreciation charges

590,292

514,391

Profit on disposal of fixed assets

(85,504

)

-

Finance costs

316,271

300,742

Finance income

(91,212

)

(89,276

)

2,745,514

3,124,396

Increase in stocks

(1,647,899

)

(743,493

)

Decrease/(increase) in trade and other debtors

757,622

(2,086,203

)

Increase in trade and other creditors

1,380,277

847,279

Cash generated from operations

3,235,514

1,141,979

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

3,005,859

1,206,353

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

1,206,353

1,623,365

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

1,206,353

1,799,506

3,005,859

1,206,353

1,799,506

3,005,859

Debt

Debts falling due within 1 year

(947,086

)

(185,904

)

(1,132,990

)

Debts falling due after 1 year

(2,494,265

)

1,251,512

(1,242,753

)

(3,441,351

)

1,065,608

(2,375,743

)

Total

(2,234,998

)

2,865,114

630,116

1.	STATUTORY INFORMATION

Talbots Law Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of value added tax and other sales related taxes. The fair value of consideration takes into account referral fees paid.

Revenue from the supply of services is recognised when:

- the amount of the revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction will flow to the entity; and

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill

Goodwill paid in connection with the acquisition of the business of Talbots Solicitors LLP in 2013, is being amortised evenly over its estimated useful life of twenty years from 1 January 2015.

Goodwill arising on further acquisitions is being amortised over its useful life of five 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

Tangible assets are initially measured at cost. After initial recognition, tangible assets are measured at cost less any accumulated depreciation and any accumulated impairment losses.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Short leasehold

-

Over the life of the lease

Fixtures and fittings

-

25% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

25% on cost

For assets acquired on the take-over of Talbots Solicitors LLP, depreciation is being charged over the remaining useful life of each asset.

The gain or loss arising on the disposal of an asset is determined as the difference between the disposal proceeds and the carrying value of the asset, and is credited or charged to the statement of comprehensive income.

Stocks

Stocks represent consumable supplies and are stated at cost to the company based on the cost of purchase on a first in first out basis.

Work in progress represents legal services performed during the period but not billed until after the accounting date and is valued at the fair value of the consideration receivable in the normal course of business.

At each reporting date, an assessment is made for impairment, being any excess of the carrying amount of stocks and work in progress over its estimated chargeable value less costs to complete. The impairment loss, and any subsequent reversal, is recognised in the statement of comprehensive income.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

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

2024

2023

£

£

Wages and salaries

17,369,396

14,278,104

Social security costs

1,558,296

1,228,073

Other pension costs

590,484

479,439

19,518,176

15,985,616

The average number of employees during the year was as follows:

2024

2023

Legal services

372

341

Administration and support

92

75

464

416

2024

2023

£

£

Directors' remuneration

1,478,585

1,348,930

Directors' pension contributions to money purchase schemes

56,605

62,688

Information regarding the highest paid director is as follows:

2024

2023

£

£

Emoluments etc

187,058

177,000

Pension contributions to money purchase schemes

7,322

7,000

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Depreciation - owned assets

254,542

209,724

Profit on disposal of fixed assets

(85,504

)

-

Goodwill amortisation

335,750

304,666

Auditors' remuneration

9,460

9,875

Auditors' remuneration for non audit work

5,090

5,400

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank loan interest

258,614

294,239

Other interest

57,657

6,503

316,271

300,742

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

449,804

472,961

Deferred tax

-

82,138

Tax on profit

449,804

555,099

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

£

Profit before tax

2,015,667

2,398,539

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.521%)

503,917

564,160

Effects of:

Expenses not deductible for tax purposes

20,590

28,122

Depreciation in excess of capital allowances

3,016

-

Finance lease charges

-

3,731

Research and development enhanced expenditure

(77,698

)

(45,505

)

Deferred tax increase to 25% enacted rate

-

4,591

Profit on disposal of assets

(21

)

-

Total tax charge

449,804

555,099