For the financial year ended 31 March 2026 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

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.

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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Heron House Financial Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is Heron House, 1 Bryngwyn Road, Newport, NP20 4JS.

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 as applicable to companies subject to the small companies regime. 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 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.

Turnover comprises of charges paid by clients based on the value of their invested assets. These charges are payable as a single charge upon initially investing in a new product recommended by the company and an annual charge, payable monthly, on invested assets that the company continues to provide advice on. Occasional one-off ad hoc hourly fees can also be charged for specialist financial planning work. The initial fee obligation relates to the initial advice provided to a client which leads to an an investment in a third-party product, hence it is appropriate that the initial income is recognised when an amount is invested. The annual charges are recognised in full when received.

Turnover also includes amounts received from clients who receive advice in connection with their assets. These charges are recognised as revenue on an on-going basis, consistent with the nature of the performance obligation being discharged, rather than a point in time.

Rental income is recognised on a straight line basis over the period to which it relates.

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.

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:

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 credited or charged to profit or loss.

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.

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

Equity instruments issued by the company 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 company.

The tax expense represents the sum of the tax currently payable and deferred 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 company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

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 when the company has 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.

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.

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 leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

Contributions to employee ownership trust

The Heron House Employee Ownership Trust (EOT) was established by Heron House Financial Management Limited. The Trust purchased 51% of the company's share capital from the owners and now holds these shares for the benefit of the company's employees.

Funding for the purchase of the company's share capital is derived from the company which pays contributions to the Trust. These contributions are accounted for as payments out of the company's distributable reserves.

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

The terms of the agreement between the Heron House Employee Ownership Trust (EOT) and the owners of the company to buy 51% of the share company's shares included both a completion payment and deferred consideration of £nil (2025 - £550,000) which is payable by instalments until 30 September 2028. The deferred consideration was paid early, in full during the year.

In order that the Heron House EOT should have the funds to pay the deferred consideration, Heron House Financial Management Limited intends to make contributions to the Trust over this same period, subject to there being distributable reserves available within the company.

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

Capital contributions to the Heron House Employee Ownership Trust are shown within the Statement of Income and Retained Earnings.

51% of the share capital of the company is owned by Heron House Employee Ownership Trustee Limited. This is the ultimate parent company. Heron House Employee Ownership Trustee Limited is a trustee of Heron House Employee Ownership Trust.

The comparative figures have been restated to reclassify other investments previously included within cash at bank. This adjustment has no effect on the profit for the prior year or on retained earnings brought forward.