Clear Mortgage Solutions Limited - Accounts to registrar (filleted)

REGISTERED NUMBER: SC463175 (Scotland)

Financial Statements

for the Year Ended 31 December 2025

for

Clear Mortgage Solutions Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

D Taddei

A Frizzel

C Taddei

SECRETARY:

D Taddei

REGISTERED OFFICE:

Orchard Brae House

30 Queensferry Road

Edinburgh

Lothian

EH4 2HS

REGISTERED NUMBER:

SC463175 (Scotland)

SENIOR STATUTORY AUDITOR:

Mr James Delve

AUDITORS:

PKF Smith Cooper Audit Limited

Statutory Auditor

Prospect House

1 Prospect Place

Pride Park

Derby

DE24 8HG

FIXED ASSETS

Intangible assets

4

5

3,821

Tangible assets

5

45,585

49,071

45,590

52,892

CURRENT ASSETS

Debtors

6

643,069

473,515

Cash at bank

7

1,109,835

1,074,318

1,752,904

1,547,833

CREDITORS

Amounts falling due within one year

8

722,050

546,194

NET CURRENT ASSETS

1,030,854

1,001,639

TOTAL ASSETS LESS CURRENT
LIABILITIES

1,076,444

1,054,531

CREDITORS

Amounts falling due after more than one year

9

-

(20,833

)

PROVISIONS FOR LIABILITIES

(561,918

)

(518,400

)

NET ASSETS

514,526

515,298

CAPITAL AND RESERVES

Called up share capital

12

202

Retained earnings

13

514,324

515,096

SHAREHOLDERS' FUNDS

514,526

515,298

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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 21 July 2026 and were signed on its behalf by:

D Taddei - Director

C Taddei - Director

1.	STATUTORY INFORMATION

Clear Mortgage Solutions Limited is a private company, limited by shares , registered in Scotland. 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 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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

Going concern:

The board acknowledges the uncertainty that exists economically and commercially, the directors have therefore assessed the principle risks and considered the impact over the next 12 months. Management has

prepared budgets and forecasts for the next 12 months, taking into consideration risks such as decline in sales and any market changes.

As the business has a strong balance sheet, and has taken into consideration the risks above, this has enabled the directors to conclude that the business is a going concern on the date of the approval of these financial statements. Accordingly, they continue to adopt the going concern basis of accounting in preparing these financial statements.

Turnover

Turnover represents commissions received from the provision of mortgage intermediary and associated services, client fees and other networks. Commissions and client fees earned are accounted for when received or guaranteed to be received as until received it is not possible to be certain that the transaction will be completed. When commissions and client fees are received this confirms that the performance obligation has been satisfied. In the case of life commissions there is a possibility of a four year period after the inception of the policy that part of the commission earned may have to be repaid if the policy is cancelled during this period. A clawback provision is made for the expected level of commissions repayable. More information on the clawback provision is included in note 3.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2016, is being amortised evenly over its estimated useful life of ten years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Improvements to property

-

10% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

25% on cost

Financial instruments

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.

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.

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 company after deducting all of its liabilities.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

Provision

A provision is recognised in the statement of financial position when the Company has a present legal or constructive obligation as a result of a past event, and it is probable that an outflow of economic benefits will be required to settle the obligation

Leasing

Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease 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.

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.

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.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

Cash at bank and in hand

Cash at bank and in hand 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.

Interest Income

Interest income is recognised in profit or loss using the effective interest method.

Finance costs

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.

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred

Rents received

All rents received are recognised in profit or loss in the year in which they are incurred

Other Income

All other income/sundry receipts are recognised in profit or loss in the year in which they are incurred

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 49 (2024 - 42 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2025

and 31 December 2025

38,193

AMORTISATION

At 1 January 2025

34,372

Charge for year

3,816

At 31 December 2025

38,188

NET BOOK VALUE

At 31 December 2025

5

At 31 December 2024

3,821

5.	TANGIBLE FIXED ASSETS

Improvements

to

Motor

Computer

property

vehicles

equipment

Totals

£

COST

At 1 January 2025

42,294

700

114,716

157,710

Additions

-

13,424

At 31 December 2025

42,294

700

128,140

171,134

DEPRECIATION

At 1 January 2025

18,379

479

89,781

108,639

Charge for year

4,229

55

12,626

16,910

At 31 December 2025

22,608

534

102,407

125,549

NET BOOK VALUE

At 31 December 2025

19,686

166

25,733

45,585

At 31 December 2024

23,915

221

24,935

49,071

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.25

31.12.24

£

Trade debtors

4,860

8,964

Other debtors

475,236

319,165

Deferred tax asset

133,204

117,332

Prepayments

29,769

28,054

643,069

473,515

No provision or impairment (2024: £Nil) has been recognised during the period against trade debtors

7.	CASH AT BANK

The bank balance is held in relation to retained commissions earned on an indemnity basis in relation to protection policies which are held to cover potential future lapses on commissions. The company does not treat these balances as available funds.

31.12.25

31.12.24

£

Unrestricted cash at bank

507,572

502,934

Bank balance in relation to retained commissions

602,262

571,384

Cash at bank

1,109,834

1,074,318

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.25

31.12.24

£

Bank loans and overdrafts

20,833

50,000

Trade creditors

20,029

2,960

Tax

302,669

229,332

Social security and other taxes

42,319

32,731

Pensions

6,486

5,474

Other creditors

246,763

153,838

Directors' current accounts

4,130

6,917

Accrued expenses

78,821

64,942

722,050

546,194

The bank loan is secured by a bond and floating charge against the company assets.

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

31.12.25

31.12.24

£

Bank loans - 2-5 years

-

20,833

The bank loan is secured by a bond and floating charge against the company assets.

There is a CBILS loan within the company with a principal amount of £250,000 over a period of 7 years. The loan is due for repayment in May 2026. Interest is charged at a rate of 4% above the base rate

Analysis of the maturity loans is given below:

2025

2024

Amounts falling due within one year

Bank Loans

20,833

50,000

Amounts falling due 2-5 years

Bank Loans

20,833

70,833

10.	LEASING AGREEMENTS

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

31.12.25

31.12.24

£

Within one year

106,999

Between one and five years

427,997

In more than five years

427,997

534,996

962,993

1,069,992

A new leasing agreement for office rental commenced in 2024

The leasing expense for the 2025 year was £106,999

11.	PROVISIONS FOR LIABILITIES

Clawback Proc Fee

Provision Provision

£ £

Balance at 1 January 2025 (422,055) (96,345)

Provided/Released during the year (57,236) 13,718

Balance at 31 December 2025 (479,291) (82,627)

Deferred Tax

£

Balance at 1 January 2025

(117,332

)

Provided during the year

(15,872

)

Balance at 31 December 2025

(133,204

)

The deferred tax movement is expected to be immaterial

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.25

31.12.24

value:

£

20,000

Ordinary

1p

200

100

Ordinary B

1p

1

100

Ordinary C

1p

1

202

13.

RESERVES

Profit & Loss account

Includes all current and prior period retained profits and losses

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

The Report of the Auditors was unqualified.

Mr James Delve (senior statutory auditor)

For & behalf of PKF Cooper Audit Limited

Statutory Auditor

Prospect House

1 Prospect Place

Pride Park

Derby

DE24 8HG

15.	PENSION COMMITMENTS

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £35,087 (2024 - £28,972). Contributions totalling £6,238 (2024 - £5,474) were payable to the fund at the balance sheet date and are included in creditors.