Company registration number 06125089 (England and Wales)
FACTOR LAW HOLDINGS LTD
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
FACTOR LAW HOLDINGS LTD
COMPANY INFORMATION
Director
Mr V Mehta
Secretary
Vistra Cosec Limited
Company number
06125089
Registered office
7th Floor
50 Broadway
London
SW1H 0BL
Auditor
GMcG BELFAST
Alfred House
19 Alfred Street
Belfast
BT2 8EQ
Business address
27-45 Great Victoria Street
Belfast
BT2 7AQ
Bankers
Bank of America
2 King Edward Street
London
EC1A 1HQ
Solicitors
Tughans
The Ewart
3 Bedford Square
Belfast
BT2 7EP
FACTOR LAW HOLDINGS LTD
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 33
FACTOR LAW HOLDINGS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The director presents the strategic report for the year ended 31 December 2024.

Review of the business

Annual turnover has decreased from the prior year. The results of the group for the year, as set out on page 8, show that operating profit has increased to £206,439 (2023 - £178,233) and that the group generated a profit after tax for the financial year of £50,870 (2023 - £110,381).

Principal risks and uncertainties

The group is exposed to a variety of financial risks that include the effects of changes in liquidity risk, credit risks, interest rate risks and foreign exchange rate risk.

 

Liquidity risk

The group directors prepare the financial statements on the going concern basis. They consider the group and parent company to have sufficient working capital for operations. The group and parent company focuses on the timely receipt of cash from customers and manages this process on a weekly basis. In the event that the group is in need of extra funds, the group and company has access to sufficient, available funding from its ultimate parent company, Factor Law Inc.

 

Credit risk

The group has implemented policies that require appropriate credit checks on potential customers before new accounts are accepted. Receivable balances are then monitored on an ongoing basis and provision is made for doubtful debts where necessary.

 

Interest rate risk

The group has interest bearing assets. Interest bearing assets include only cash balances that earn interest based on prevailing bank rates.

 

Foreign exchange risk

The group is exposed to fluctuations in the exchange rate of the US Dollar, Hong Kong Dollar and Polish Zloty against Sterling. It is the group's policy not to take out instruments to hedge exchange movements.

 

Situation in Ukraine/Russia

The group does not have any customers or vendors in either Russia or Ukraine and, resultantly, the performance of the business has not been materially effected by the ongoing Ukraine/Russia crisis.

 

Inflation

Cost inflation during the financial year continued to be high and the future level of inflation remains uncertain. The group maintains regular forecasts to ensure areas affected by cost increases are identified so mitigating action can be taken.

 

The group is working with customers, suppliers and employees to mitigate the impact of increasing costs.

FACTOR LAW HOLDINGS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Key performance indicators

The key performance indicators of the group are the maximisation of revenue growth and profitability efficiency, as the headcount increases, and the business continues to grow. The directors are satisfied with the revenue for the period which amounted to £21,007k (2023 - £26,768k). This shows a decrease on the prior period which is mainly driven by a reduction in related party revenue as a result of UK cost savings. Gross profit margin has increased to 41% (2023: 38%). The group will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The group and company have complied with all applicable legislation and regulations.

On behalf of the board

Mr V Mehta
Director
23 December 2025
FACTOR LAW HOLDINGS LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -

The director presents his annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the group is the provision of legal and consulting services in a wide range of industries and practices through two forms of engagement: Legal Managed Services and Regulatory Response/Projects. The group provides next-generation solutions for complex legal work at scale, ranging from deadline-driven regulatory projects to long-term managed services performed primarily in Factor's delivery centres.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr B Carson
(Resigned 31 July 2025)
Mr V Mehta
Ms S Hasson
(Resigned 30 November 2024)
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its director during the year. These provisions remain in force at the reporting date.

Disabled persons

The group is committed to employment policies, which follow best practice based on equal opportunities for all employees, irrespective of sex, race, colour, disability or marital status. The group gives full and fair consideration to applications for employment from disabled persons, having regard to their particular aptitudes and

abilities. Appropriate arrangements are made for the continued employment and training, career development and promotion of disabled persons employed by the group. If members of staff become disabled, where possible, the group continues employment, either in the same or an alternative position with appropriate retraining being given if necessary.

Employee involvement

The group systematically provides employees with information on matters of concern to them, consulting them or their representatives regularly, so that their views can be taken into account when making decisions that are likely to affect their interests. Employee involvement in the company is encouraged, as achieving a common awareness on the part of all employees of the financial and economic factors affecting the group plays a major role in objectives.

Future developments

The director is optimistic on the outlook for the group in the coming year and believe that the group will be well placed to service the needs of any new or existing customers. The group aims to continue on its trajectory of investing heavily in the best and brightest industry professionals in order to continue to tackle meaningful and complex work for a wide range of global clients. This investment in the company’s infrastructure is deemed to be a huge driver for future success; enabling the group to deliver on its ambitions of re-ordering the legal marketplace through the provision of first class service to clients by our highly technical and innovative legal experts. The group anticipates that this will only serve to contribute to many more opportunities for the growth of current client contracts as well as obtaining larger contracts with new clients in the future; to achieve our key performance indicator of revenue growth maximisation.

FACTOR LAW HOLDINGS LTD
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Strategic report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risk and uncertainties, and the business review.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr V Mehta
Director
23 December 2025
FACTOR LAW HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF FACTOR LAW HOLDINGS LTD
- 5 -
Opinion

We have audited the financial statements of Factor Law Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 director's 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 group's and parent 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 director with respect to going concern are described in the relevant sections of this report.

FACTOR LAW HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FACTOR LAW HOLDINGS LTD
- 6 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

FACTOR LAW HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FACTOR LAW HOLDINGS LTD
- 7 -
Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines is 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 director is responsible for assessing the parent 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

FACTOR LAW HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FACTOR LAW HOLDINGS LTD
- 8 -
Extent to which the audit was considered capable of dectecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing potential risks of material misstatement in respect of irregularities, including fraud and non-compliances with laws and regulations, we considered the following:

As a result of these procedures, we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the Companies Act 2006, and local tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

FACTOR LAW HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FACTOR LAW HOLDINGS LTD
- 9 -
Audit repsonse to risks identified

Our procedures to respond to the risks identified included the following:

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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. In addition, as with any audit, there remains a higher risk of non-detection of irregularities, as they may involve 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 is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

FACTOR LAW HOLDINGS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF FACTOR LAW HOLDINGS LTD
- 10 -

Use of our report

This report is made solely to the parent 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 parent company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Mr Nigel Moore FCA (Senior Statutory Auditor)
For and on behalf of GMcG BELFAST, Statutory Auditor
Chartered Accountants
Alfred House
19 Alfred Street
Belfast
BT2 8EQ
23 December 2025
FACTOR LAW HOLDINGS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
21,007,378
26,767,952
Cost of sales
(12,364,898)
(16,563,936)
Gross profit
8,642,480
10,204,016
Administrative expenses
(8,463,814)
(9,966,294)
Other operating income/(expenses)
27,773
(59,489)
Operating profit
4
206,439
178,233
Interest receivable and similar income
7
-
0
34,904
Interest payable and similar expenses
8
(1,701)
(9,050)
Profit before taxation
204,738
204,087
Tax on profit
9
(153,868)
(93,706)
Profit for the financial year
22
50,870
110,381
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(84,788)
115,039
Total comprehensive income for the year
(33,918)
225,420
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
FACTOR LAW HOLDINGS LTD
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
70,738
262,686
Tangible assets
11
61,729
208,726
132,467
471,412
Current assets
Debtors
14
8,452,505
10,103,500
Cash at bank and in hand
105,918
569,872
8,558,423
10,673,372
Creditors: amounts falling due within one year
15
(2,181,688)
(4,534,746)
Net current assets
6,376,735
6,138,626
Total assets less current liabilities
6,509,202
6,610,038
Creditors: amounts falling due after more than one year
16
-
(92,911)
Provisions for liabilities
Provisions
17
654,120
634,488
Deferred tax liability
18
6,361
-
0
(660,481)
(634,488)
Net assets
5,848,721
5,882,639
Capital and reserves
Called up share capital
21
1
1
Other reserves
22
3,250,187
3,250,187
Profit and loss reserves
22
2,598,533
2,632,451
Total equity
5,848,721
5,882,639

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 23 December 2025 and are signed on its behalf by:
23 December 2025
Mr V Mehta
Director
Company registration number 06125089 (England and Wales)
FACTOR LAW HOLDINGS LTD
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
2
2
Current assets
Debtors
14
-
0
181,797
Creditors: amounts falling due within one year
15
(51,910)
(233,707)
Net current liabilities
(51,910)
(51,910)
Net liabilities
(51,908)
(51,908)
Capital and reserves
Called up share capital
21
1
1
Profit and loss reserves
22
(51,909)
(51,909)
Total equity
(51,908)
(51,908)

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2023 - £47,336 loss).

The financial statements were approved by the board of directors and authorised for issue on 23 December 2025 and are signed on its behalf by:
23 December 2025
Mr V Mehta
Director
Company registration number 06125089 (England and Wales)
FACTOR LAW HOLDINGS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2023
1
3,250,187
2,407,031
5,657,219
Year ended 31 December 2023:
Profit for the year
-
-
110,381
110,381
Other comprehensive income:
Currency translation differences
-
-
115,039
115,039
Total comprehensive income
-
-
225,420
225,420
Balance at 31 December 2023
1
3,250,187
2,632,451
5,882,639
Year ended 31 December 2024:
Profit for the year
-
-
50,870
50,870
Other comprehensive income:
Currency translation differences
-
-
(84,788)
(84,788)
Total comprehensive income
-
-
(33,918)
(33,918)
Balance at 31 December 2024
1
3,250,187
2,598,533
5,848,721
FACTOR LAW HOLDINGS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
1
(4,573)
(4,572)
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
(47,336)
(47,336)
Balance at 31 December 2023
1
(51,909)
(51,908)
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
0
Balance at 31 December 2024
1
(51,909)
(51,908)
FACTOR LAW HOLDINGS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
26
(103,353)
(1,011,639)
Interest paid
(1,701)
(9,050)
Income taxes paid
(342,901)
(87,003)
Net cash outflow from operating activities
(447,955)
(1,107,692)
Investing activities
Purchase of intangible assets
-
(16,414)
Purchase of tangible fixed assets
(12,234)
(28,356)
Interest received
-
0
34,904
Net cash used in investing activities
(12,234)
(9,866)
Net decrease in cash and cash equivalents
(460,189)
(1,117,558)
Cash and cash equivalents at beginning of year
569,872
1,680,646
Effect of foreign exchange rates
(3,765)
6,784
Cash and cash equivalents at end of year
105,918
569,872
FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
1
Accounting policies
Company information

Factor Law Holdings Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 7th Floor, 50 Broadway, London, SW1H 0BL.

 

The group consists of Factor Law Holdings Ltd and all of its subsidiaries.

1.1
Basis of preparation

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Factor Law Holdings Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies (Continued)
- 18 -
1.4
Going concern

After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the group has adequate resources to continue existence for the foreseeable future. Further, the directors of the parent undertaking have indicated that they will continue to provide financial support to the company and group for a period of at least 12 months from the date the accounts are signed and to provide sufficient funds to the group where necessary. The directors have satisfied themselves through enquiry and review of the parent undertaking cash flow forecasts, that it has the means and ability to provide such support to the group if required. The group therefore continues to adopt the going concern basis in preparing its financial statements.

1.5
Turnover

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

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:

 

1.6
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

1.7
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Capitalised software
33.3% straight line
1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
14-20% straight line
Fixtures and fittings
20-33% straight line
FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies (Continued)
- 19 -

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies (Continued)
- 20 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally 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.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies (Continued)
- 21 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies (Continued)
- 22 -
Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies (Continued)
- 23 -
1.18
Share-based payments

The ultimate parent company issues equity-settled share option appreciation rights to certain employees of the group for their services to the group. Equity-settled share-based payments are measured at fair value and are recognised as an expense in the profit and loss account with a corresponding increase in equity. The fair values of these payments are measured at each reporting date using option-pricing models, taking into account the terms and conditions upon which the awards are granted. The fair value is recognised over the period during which employees become unconditionally entitled to the awards, subject to the parent company's estimate of the number of awards which will lapse, either due to employees leaving the group prior to vesting or due to non-market based performance conditions not being met.

1.19
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.20
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

 

1.21
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty (Continued)
- 24 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Dilapidations provision

The group is required to perform dilapidation repairs and in certain instances restore leased property to agreed specifications prior to the property being vacated at the end of their lease term. These amounts are based on estimates from an external third party of repair and restoration costs at a future date and therefore, a degree of uncertainty exists.

Estimating useful lives of depreciable and amortised assets

The annual depreciation and amortisation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of fair values and residual values. The directors annually review these asset lives and adjust them as necessary to reflect current thinking on remaining lives in light of technological change, prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have significant impact on depreciation and amortisation charges for the period. It is not practical to quantify the impact of changes in asset lives on an overall basis, as asset lives are individually determined, and there are a significant number of asset lives in use. The impact of any change would vary significantly depending on the individual changes in assets and the classes of assets impacted.

Estimating allowance for impairment of debtors

The group maintains provisions for impaired accounts at a level considered adequate to provide for probable uncollectable receivables. The level of this provision is regularly evaluated and normally consists of past due accounts that are neither subject of ongoing negotiations with management to revise payment schedules nor secured with any collateral. The provision includes amounts for impaired trade and group debtors.

Assessing for indicators of impairment

At each reporting date, fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the statement of comprehensive income. If an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the statement of comprehensive income.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
United Kingdom
5,102,321
5,377,069
North America
15,803,432
20,778,023
Europe
101,625
612,860
21,007,378
26,767,952
2024
2023
£
£
Other revenue
Interest income
-
34,904
FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
322
168,649
Fees payable to the group's auditor for the audit of the group's financial statements
26,250
50,800
Depreciation of owned tangible fixed assets
157,048
303,519
(Profit)/loss on disposal of tangible fixed assets
-
35,587
Amortisation of intangible assets
191,948
242,852
Operating lease charges
630,275
730,797
5
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management and administration
67
59
-
-
Client service professionals
251
339
-
-
Total
318
398
0
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
12,354,494
15,089,387
-
0
-
0
Social security costs
1,827,064
2,317,986
-
-
Pension costs
297,618
343,441
-
0
-
0
14,479,176
17,750,814
-
0
-
0
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
109,657
15,332
Company pension contributions to defined contribution schemes
4,602
-
114,259
15,332
FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 26 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest receivable from group companies
-
0
34,904
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
-
34,904
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
1,701
9,050
9
Taxation
2024
2023
£
£
Current tax
Foreign current tax on profits for the current period
153,868
93,706

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
204,738
204,087
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
51,185
48,001
Tax effect of expenses that are not deductible in determining taxable profit
(106,868)
149,575
Tax effect of utilisation of tax losses not previously recognised
7,426
(98,351)
Unutilised tax losses carried forward
207,042
-
0
Fixed asset timing differences
-
0
80,406
Other timing differences leading to an increase (decrease) in taxation
-
0
(65,065)
Effect of overseas tax rate
(4,917)
(20,860)
Taxation charge
153,868
93,706
FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
10
Intangible fixed assets
Group
Capitalised software
£
Cost
At 1 January 2024 and 31 December 2024
788,505
Amortisation and impairment
At 1 January 2024
525,819
Amortisation charged for the year
191,948
At 31 December 2024
717,767
Carrying amount
At 31 December 2024
70,738
At 31 December 2023
262,686
The company had no intangible fixed assets at 31 December 2024 or 31 December 2023.
11
Tangible fixed assets
Group
Leasehold improvements
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2024
2,284,445
1,756,738
4,041,183
Additions
-
0
12,234
12,234
Disposals
-
0
(974,806)
(974,806)
Exchange adjustments
(3,318)
(12,600)
(15,918)
At 31 December 2024
2,281,127
781,566
3,062,693
Depreciation and impairment
At 1 January 2024
2,240,208
1,592,249
3,832,457
Depreciation charged in the year
28,822
128,226
157,048
Eliminated in respect of disposals
-
0
(974,806)
(974,806)
Exchange adjustments
(3,311)
(10,424)
(13,735)
At 31 December 2024
2,265,719
735,245
3,000,964
Carrying amount
At 31 December 2024
15,408
46,321
61,729
At 31 December 2023
44,237
164,489
208,726
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
2
2
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024 and 31 December 2024
2
Carrying amount
At 31 December 2024
2
At 31 December 2023
2
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Factor Law Limited
11-12 St James Square, Suite 1, 3rd Floor, London, SW1Y 4LB
Ordinary
100.00
-
Factor Law Sp. z.o.o.
Kazimierrza Wielkiego 3, 50-077, Wroclaw, Poland
Ordinary
0
100.00
FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
818,599
830,019
-
0
-
0
Corporation tax recoverable
84,614
-
0
-
0
-
0
Amounts owed by group undertakings
6,617,915
8,067,198
-
-
Other debtors
20,055
199,572
-
0
181,797
Prepayments and accrued income
497,306
484,807
-
0
-
0
8,038,489
9,581,596
-
181,797
Deferred tax asset (note 18)
52,067
156,703
-
0
-
0
8,090,556
9,738,299
-
181,797
Amounts falling due after more than one year:
Other debtors
361,949
365,201
-
0
-
0
Total debtors
8,452,505
10,103,500
-
181,797

Amounts owed by group undertakings are unsecured, interest free and repayable on demand and relate entirely to the parent company, Factor Law Inc.

15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
322,469
554,095
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
49,450
4,115
Corporation tax payable
459
104,878
459
459
Other taxation and social security
713,715
1,278,229
-
-
Other creditors
10,186
266,297
2,001
229,133
Accruals and deferred income
1,134,859
2,331,247
-
0
-
0
2,181,688
4,534,746
51,910
233,707

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Other creditors
-
0
92,911
-
0
-
0
FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
17
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Other provision
130,202
112,078
-
-
Dilapidation provision
523,918
522,410
-
-
654,120
634,488
-
-
Movements on provisions:
Other provision
Dilapidation provision
Total
Group
£
£
£
At 1 January 2024
112,078
522,410
634,488
Additional provisions in the year
18,124
1,508
19,632
At 31 December 2024
130,202
523,918
654,120

The provision relates to the group's expected cost of returning a leasehold property to the condition that existed at the inception of the lease; the associated lease expires in April 2027.

 

The other provision relates to the expected reimbursement for grants received upon non-compliance with the grant's terms and conditions.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Fixed asset timing differences
6,361
-
-
(6,140)
Short term timing differences
-
-
52,067
162,843
6,361
-
52,067
156,703
The company has no deferred tax assets or liabilities.
FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
18
Deferred taxation (Continued)
- 31 -
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 1 January 2024
(156,703)
-
Other
110,997
-
Asset at 31 December 2024
(45,706)
-
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
297,618
343,441

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

20
Share-based payment transactions
Group
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 January 2024
1,220,620
802,582
0.41
0.31
Granted
-
513,750
-
0.48
Forfeited
(187,571)
(83,149)
0.46
0.31
Exercised
(46,688)
(11,000)
0.30
0.31
Expired
(137,950)
(1,563)
0.40
-
Outstanding at 31 December 2024
848,411
1,220,620
0.40
0.39
Exercisable at 31 December 2024
848,411
1,220,620
-
0.39

The expense in the year ended 31 December 2024 arising from share-based payment transactions is £Nil (2023: £Nil).

 

The contractual life of all share options is 10 years.

 

The vesting conditions for all share based payments are that at all times since the grant date, the option holder is an employee, officer or director of, or consultant or advisor to, Factor Law Inc, Axiom Global Inc., or any parent or subsidiary of Factor Law Inc. or Axiom Global Inc.

FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
22
Reserves
Other reserves

Other reserves relates to the contribution received from the ultimate parent company in relation to issued equity-settled share option appreciation rights and the contribution of net assets to the subsidiary at spin off.

Profit and loss reserves

The profit and loss account includes all accumulated profits and losses of the group.

23
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
628,092
592,931
-
-
Between two and five years
600,122
1,390,893
-
-
1,228,214
1,983,824
-
-
24
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2024
2023
£
£
Aggregate compensation
127,664
109,755
Other information

The company has taken advantage of the exemption under paragraph 33.1A from the provisions of FRS 102 "Related Party Disclosures" from disclosing transactions with related parties that are part of the Factor Law Inc. group.

FACTOR LAW HOLDINGS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
25
Controlling party

The immediate and ultimate parent undertaking of the company during the year was Factor Law Inc, a company incorporated in the USA.

 

The largest group of undertakings that prepares consolidated financial statements is Factor Law Inc., a company incorporated in the USA. These financial statements are not publicly available.

 

The directors do not consider there to be one ultimate controlling party.

26
Cash absorbed by group operations
2024
2023
£
£
Profit after taxation
50,870
110,381
Adjustments for:
Taxation charged
153,868
93,706
Finance costs
1,701
9,050
Investment income
-
0
(34,904)
(Gain)/loss on disposal of tangible fixed assets
-
42,277
Amortisation and impairment of intangible assets
191,948
242,852
Depreciation and impairment of tangible fixed assets
157,048
303,519
Foreign exchange gains on cash equivalents
-
96,084
Increase/(decrease) in provisions
19,632
(144,078)
Movements in working capital:
Decrease/(increase) in debtors
1,630,973
(1,402,847)
Decrease in creditors
(2,309,393)
(327,679)
Cash absorbed by operations
(103,353)
(1,011,639)
27
Analysis of changes in net funds - group
1 January 2024
Cash flows
Exchange rate movements
31 December 2024
£
£
£
£
Cash at bank and in hand
569,872
(460,189)
(3,765)
105,918

The company has no cash balances.

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