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Registered number: 11937792
KP LAW LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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KP LAW LIMITED
CONTENTS
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Notes to the financial statements
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REGISTERED NUMBER:11937792
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KP LAW LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2025
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Debtors: amounts falling due after more than one year
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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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Net current assets/(liabilities)
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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REGISTERED NUMBER:11937792
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KP LAW LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2025
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 profit and loss account 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:
The notes on pages 3 to 13 form part of these financial statements.
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KP LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
KP Law Limited is a private company limited by shares incorporated in England and Wales. The address of its registered office is 75 High Holborn, London, England, WC1V 6LS.
The financial statements are presented in sterling (£), which is the functional currency of the Company. Monetary amounts in these financial statements are 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 Financial Reporting Standard 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 preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Directors believe that it is appropriate to prepare the financial statements on a Going Concern basis which assumes that the Company will continue in operational existence for at least 12 months from the date of the signing of the financial statements. Notwithstanding the net liabilities it is appropriate because the Company has substantial litigation claims in progress which are expected to give rise to substantial returns in the future. The Directors have prepared forecasts which demonstrate that the Company has adequate cash and financing facilities. The review performed has considered downside scenarios that could reasonably arise within the period along with any mitigations associated with it. These scenarios have shown that the Company can continue to operate within its available funding and leaves sufficient headroom within the facility for the Company to not breach the funding facility limit or covenants. The Company is funded by Legatus Holdings Limited by way of an unsecured Revolving Credit Facility (“RCF”) repayable in 2029. The Directors have performed an assessment to ensure that this facility will provide the Company with sufficient funding in line with its forecasted net expenditure for at least 12 months following the signature of the Financial Statements. The Directors have also considered post year end results whilst performing these reviews.
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.
Accordingly, contingent fees are recognised as revenue at the point in time that a case successfully concludes. Non-contingent fees are recognised as revenue when incurred.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
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KP LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
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.
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 balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Company's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Amortisation is charged on a straight-line basis over the asset’s estimated useful economic life, which reflects the pattern in which the asset’s future economic benefits are expected to be consumed.
As at 31 December 2025 the remaining useful life of goodwill is estimated as 13 to 47 months.
As at 31 December 2025 the remaining useful life of customer contracts is estimated as 13 months.
Amortisation is recognised in the profit and loss account within administrative expenses.
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KP LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Ordinary shares are classified as equity.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
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KP LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
The Company has elected to apply Sections 11 and 12 of FRS 102 in respect of financial instruments.
Financial assets and financial liabilities are recognised when the Company becomes party to the contractual provisions of the instrument.
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.
The Company’s policies for its major classes of financial assets and financial liabilities are set out below.
Financial assets
Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.
Financial liabilities
Basic financial liabilities, including trade and other creditors, and loans from fellow Group companies 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 for a similar debt instrument. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Impairment of financial assets
Financial assets measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the Company would receive for the asset if it were to be sold at the reporting date.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
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
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KP LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
2.Accounting policies (continued)
recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets and financial liabilities
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, 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.
Current tax is the amount of income tax payable in respect of taxable profit for the year or prior years.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.
Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
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KP LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The Company makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these estimates and assumptions. Management consider there to be the below material judgements in the financial statements.
Customer Contracts
Management has assessed the values of the customer contracts acquired as a result of the acquisition of the business and assets of Lanier, Longstaff, Hedar & Roberts LLP. The claims being brought in respect of the customer contracts acquired are already within a redress scheme and therefore the material uncertainty and judgement is on the duration of the claim and not the value. Duration is assessed quarterly in line with the amortisation policy.
This was reassessed to twelve months as at 31 December 2025. The duration has changed as a result of developments in the administration of the redress scheme through which these claims are being settled.
Provisions
A provision has been made in respect of the repayment of a payment made by a non-related third party in respect of a guarantee. The repayment has been provided for at the present value of the cashflows, taking into account the expected timing of the required payments, which is linked to the settlement of certain claims.
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The average monthly number of employees, including Directors, during the year was 121 (2024 - 97).
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KP LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Charge for the year on owned assets
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Customer contracts relates to the acquisition of the trade and assets of Lanier, Longstaff, Hedar & Roberts LLP.
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KP LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Charge for the year on owned assets
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Due after more than one year
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Prepayments and accrued income
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KP LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Cash and cash equivalents
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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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Creditors: Amounts falling due after more than one year
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Amounts owed to Group undertakings
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The amounts owed to Group undertakings includes a revolving credit facility. Under the terms of the revolving credit facility, income received by the Company is used to pay back the loan made thereunder. The funding facility is available until June 2029.
As at 31 December 2024 the loan was secured through a fixed and floating charge over all the assets of the Company. As at 31 December 2025 the loan is unsecured.
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KP LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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In the prior year, the Company received an advance payment relating to a guarantee provided for certain customer contracts. This payment is repayable from future amounts received under those contracts. The repayment has been provided for at the present value of the cashflows, taking into account the expected timing of the required payments, which is linked to the settlement of certain claims.
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In accordance with the Asset Purchase Agreement pursuant to which the Company acquired the business and assets of Lanier, Longstaff, Hedar & Roberts LLP on 28 February 2024, deferred consideration may be due on the successful resolution of certain claims. As at 31 December 2025, no liability has been accounted for, as any deferred consideration that may be payable cannot be reliably estimated.
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Commitments under operating leases
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At 31 December 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than one year and not later than five years
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Financial commitments and guarantees
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At the period end the assets of the Company were held as security for loans in the ultimate parent company, Legatus Holdings Limited. As at the period end, the amount outstanding for the Group was £386,274,338.
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Related party transactions
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The Company has taken advantage of the exemption available in Section 1AC.35 of FRS 102 Section 1A whereby it has not disclosed transactions with any wholly owned subsidiary undertaking of the Group.
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KP LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
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Post balance sheet events
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Subsequent to the year end, the Company entered into an agreement to settle part of its deferred consideration contingent liability for £11,800,000.
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Ultimate controlling party
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The parent and ultimate parent Company is Legatus Holdings Limited. The financial statements of the Company are consolidated in the financial statements of Legatus Holdings Limited. These consolidated financial statements are available from its registered office, c/o Brabners LLP, 100 Barbirolli Square, Manchester, M2 3AB.
The auditors' report on the financial statements for the year ended 31 December 2025 was unqualified.
The audit report was signed on 17 June 2026 by James Rimell (senior statutory auditor) on behalf of Blick Rothenberg Audit LLP.
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