REGISTERED NUMBER: 07000449 (England and Wales)

Financial Statements

for the Year Ended 31 March 2025

for

Cygnet Family Law Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

G E Brooke

D W Medd

S Phoenix

A M Nixon

S K Newton

E S Barber

V J McGee

SECRETARY:

V L Eyre

REGISTERED OFFICE:

Portland House

West Dyke Road

REDCAR

Cleveland

TS10 1DH

REGISTERED NUMBER:

07000449 (England and Wales)

SENIOR STATUTORY AUDITOR:

Christopher Beaumont BA (Hons) BFP FCA DChA

AUDITORS:

Clive Owen LLP

Chartered Accountants

& Statutory Auditors

140 Coniscliffe Road

Darlington

County Durham

DL3 7RT

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

45,751

57,951

45,751

57,951

CURRENT ASSETS

Debtors

6

2,132,343

1,950,832

Cash at bank and in hand

624,445

537,713

2,756,788

2,488,545

CREDITORS

Amounts falling due within one year

7

(545,390

)

(674,548

)

NET CURRENT ASSETS

2,211,398

1,813,997

TOTAL ASSETS LESS CURRENT LIABILITIES

2,257,149

1,871,948

PROVISIONS FOR LIABILITIES

9

(8,086

)

-

NET ASSETS

2,249,063

1,871,948

CAPITAL AND RESERVES

Called up share capital

10

200

200

Retained earnings

2,248,863

1,871,748

SHAREHOLDERS' FUNDS

2,249,063

1,871,948

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 6 October 2025 and were signed on its behalf by:

S Phoenix - Director

1.	STATUTORY INFORMATION

Cygnet Family Law Limited 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 the provisions of Section 1A "Small Entities" of 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.

There were no material departures from that standard.

The principal accounting policies adopted in the preparation of the financial statements are set out below and have remained unchanged from the previous year, and also have been consistently applied within the same accounts.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Income recognition

Income is recognised when services have been provided.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2010, was amortised evenly over its estimated useful life of five years.

Tangible fixed assets

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

Fixtures and fittings

-

25% on cost

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses.

Financial instruments

Basic financial instruments are recognised at amortised cost with changes recognised in profit or loss.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

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.

Leasing commitments

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

Related party transactions

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group nor transactions with directors conducted at a market rate.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 79 (2024 - 75 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2024

and 31 March 2025

493,012

AMORTISATION

At 1 April 2024

and 31 March 2025

493,012

NET BOOK VALUE

At 31 March 2025

-

At 31 March 2024

-

5.	TANGIBLE FIXED ASSETS

Fixtures

and

fittings

£

COST

At 1 April 2024

172,706

Additions

16,324

At 31 March 2025

189,030

DEPRECIATION

At 1 April 2024

114,755

Charge for year

28,524

At 31 March 2025

143,279

NET BOOK VALUE

At 31 March 2025

45,751

At 31 March 2024

57,951

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

398,477

287,876

Accrued income

1,635,058

1,579,233

Prepayments

98,808

83,723

2,132,343

1,950,832

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade creditors

7,914

8,641

Taxation and social security

398,977

339,962

Other creditors

800

95,389

Accruals and deferred income

137,699

230,556

545,390

674,548

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2025

2024

£

£

Within one year

102,191

5,683

Between one and five years

31,487

8,287

133,678

13,970

9.	PROVISIONS FOR LIABILITIES

2025

2024

£

£

Deferred tax

8,086

-

Deferred

tax

£

Charge to Statement of Income and Retained Earnings during year

8,086

Balance at 31 March 2025

8,086

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

£

100

Ordinary

£1

100

100

100

A Ordinary

£1

100

100

200

200

The ordinary shares carry full voting rights.

The A ordinary shares shall not confer on the holders of them any right to notice of or to attend, speak or vote at general meetings of the company.

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was qualified on the following basis:

Basis for qualified opinion

Included within the balance sheet of Cygnet Family Law Limited at 31 March 2025 is an estimate of accrued income amounting to £1,635,058. Whilst undertaking the audit of accrued income it became apparent that there were significant delays in invoicing the legal aid cases, included within this number, due to the workload of the cost draftsman, this has resulted in a number of cases which were complete at 31 March 2025 not yet being costed. Our testing in this area showed that actual amounts billed for these matters were in excess of the carrying value of accrued income recognised at 31 March 2025 for the corresponding matter. In addition, there are a number of ongoing legal aid cases which overlap the year end which it has not been possible to value.

Accrued income would appear to be materially underestimated at 31 March 2025, although it has not been possible for us to formulate a reliable estimate of the amount involved. Audit work on accrued income at 31 March 2024 indicate that the balances at those dates are also likely to be materially understated. As a result, we are not able to form an opinion on accrued income at 30 June 2023, 31 March 2024 or 31 March 2025 and hence the turnover for the current and comparative periods.

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 qualified opinion.

Christopher Beaumont BA (Hons) BFP FCA DChA (Senior Statutory Auditor)

for and on behalf of Clive Owen LLP

12.	ULTIMATE CONTROLLING PARTY

The company is a wholly owned subsidiary of Redcar & Cleveland Legal Services Limited, who's registered office is 1st Floor Redcar & Cleveland House, Kirkleatham Street, Redcar, Yorkshire, TS10 1RT.

The ultimate controlling party is Redcar & Cleveland Borough Council, who own 100% of the share capital in Redcar & Cleveland Legal Services Limited.