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Company registration number: 05455941
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UNAUDITED FINANCIAL STATEMENTS
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FOR THE YEAR ENDED
31 OCTOBER 2024
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COMPANY INFORMATION
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PM LAW LIMITED
REGISTERED NUMBER:05455941
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STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The directors consider that the Company is entitled to exemption from audit under section 477 of the Companies Act 2006 and members have not required the Company to obtain an audit for the year in question in accordance with section 476 of the Companies Act 2006.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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D J Mackay
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The notes on pages 3 to 6 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
PM Law Limited is a private company limited by shares incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's principal place of business is the same as the registered office and is disclosed on the company information page.
The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The following principal accounting policies have been applied:
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
∙the amount of revenue can be measured reliably;
∙it is probable that the Company will receive the consideration due under the contract;
∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and
∙the costs incurred and the costs to complete the contract can be measured reliably.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
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.
The current income 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 income.
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 ordinary shares.
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The average monthly number of employees, including directors, during the year was 49 (2023 - 36).
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Amounts recoverable on contracts
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Bank borrowings are secured by a fixed and floating charge over all of the current and future property and assets, including debts and fixed assets.
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The prior year adjustments have resulted in no effect to the profit for the year and no effect on the net assets for the year ended 31 October 2023.
The breakdown of the prior year adjustment are shown as follows:
An adjustments has been to increase salaries by £308,799 to ensure that employee costs are correctly reflected in the company in which the employees carry out their duties.
An adjustments have beeen made to reduce managment charges paid to Proddow Mackay Solicitors LLP by £308,799.
The company is part of a VAT group in which all members are jointly and severally liable for any VAT the group owes to HMRC. At 31 October 2024 the overall liability held by the associated company Proddow Mackay Solicitors LLP totals £1,435,017 (2023 - £1,086,681).
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
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Description of nature of transactions and balances with related parties
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Motor vehicle operating leases in the name of PM Law Limited are paid for and used by Proddow Mackay Solicitors LLP (an associated company under common control) and are included as an expense in that entity’s income statement to represent the economic substance of and the benefit received of the transactions.
Consequently, the commitment under operating leases totalling £119,448 (2023 - £194,012) is shown in the financial statements for Proddow Mackay Solicitors LLP.
A bank loan with Clydesdale Bank PLC in the name of PM Law Limited was received into and loan instalments repaid by Proddow Mackay Solicitors LLP (an associated company under common control) to represent the economic substance of the transaction, in respect of which the directors have obtained legal opinion.
Consequently, the bank loan creditor at the year ended 31 October 2024 totalling £5,616,307 (2023 - £3,404,050) is shown as a creditor in the financial statements for Proddow Mackay Solicitors LLP.
An inter-company guarantee exists between PM Law Limited, Proddow Mackay Limited and Proddow Mackay (Conveyancing) Limited in favour of Yorkshire Bank Plc.
At the year end date, PM Law Limited ("The company") had the following transactions:
The company was owed £1,839,943 by Proddow Mackay Solicitors LLP (2023 - £1,351,698). The loan is interest free and is repayable on demand. The entity is under common control.
The company owed £207,250 to PM Property Lawyers Limited (2023 - £nil). The loan is interest free and is repayable on demand. The entity is under common control.
The company owed £410,216 to Proddow Mackay Limited (2023 - £410,216). The loan is interest free and is repayable on demand. The entity is under common control.
The company owed £25,000 to Proddow Mackay (Conveyancing) Limited (2023 - £25,000). The loan is interest free and is repayable on demand. The entity is under common control.
The company owed £740,119 to John M Lewis & Co Limited (2023 - £740,119). The loan is interest free and is repayable on demand. The entity is under common control.
The company owed £85,355 to PM Law (Specialist Claims) Limited (2023 - £nil). The loan is interest free and is repayable on demand. The entity is under common control.
The company owed £377,229 to Proddow Mackay Legal Limited (2023 - £230,034). The loan is interest free and is repayable on demand. The entity is under common control.
The company owed £118,106 to Valerie Holmes Law Limited (2023 - £nil). The loan is interest free and is repayable on demand. The entity is under common control.
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