REGISTERED NUMBER: 16228193 (England and Wales)

CHATTERTONS GROUP HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTOR AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2026

Page

Company Information

1

Group Strategic Report

2

to

3

Report of the Director

4

to

5

Report of the Independent Auditors

6

to

8

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

to

30

DIRECTOR:

R R Ludlow

REGISTERED OFFICE:

5 South Street

Horncastle

LN9 6DS

REGISTERED NUMBER:

16228193 (England and Wales)

SENIOR STATUTORY AUDITOR:

Tara Bellamy FCA

AUDITORS:

Duncan & Toplis Audit Limited, Statutory Auditor

4 Henley Way

Doddington Road

Lincoln

Lincolnshire

LN6 3QR

The director presents his strategic report of the company and the group for the year ended 30 April 2026.

REVIEW OF BUSINESS

The principal activity of the group for the year ended 30 April 2026 is the provision of legal services from 8 main offices across the East Midlands, with 2 additional serviced offices in the East Midlands and London.

Established in 1856, Chattertons is considered to be one of oldest law firms in the UK, and since 2016 has operated under an ABS licence.

The results for the year and financial position of the group are shown in the annexed financial statements. The group considers its key performance indicators include turnover, gross profit, trading profit* and net assets.

2026

£

Turnover

18,287,127

Cost of sales

6,913,280

Gross profit

11,373,847

Gross profit margin %

62,20

Trading profit

5,966,652

Trading profit margin %

32.63

Net assets

19,414,512

Earnings before interest, tax, depreciation and amortisation

5,651,403

*Trading profit and EBITDA includes profit from operating activities and net interest received.

Chattertons continues to pursue its growth strategy to become a significant provider of professional services in the East Midlands and beyond, through a combination of organic growth, the recruitment of additional of high-calibre professionals and exploring further acquisition opportunities. The directors continue to focus on balancing growth with prudent cost management and maintaining a strong cash position.

Chattertons Group Holdings Limited became the controlling party of Chattertons Group Limited on 29 May 2025. Richard Ludlow became the ultimate controlling party as of this date.

PRINCIPAL RISKS AND UNCERTAINTIES

The Directors are aware of their responsibilities for managing risk and regularly evaluate the risks and uncertainties that could impact on future performance.

The economy plays a part in the group's ability to operate profitability. Exposure to negative economic developments in sectors in which the group operates, either directly or indirectly through the impact on the group's bankers, suppliers or customers may result in decreased demand, increased operating costs or an inability for the business to meet its full strategic objectives.

The group operates in a competitive market, failure to compete effectively in terms of quality and price can have an adverse effect on demand and/or margins.

In addition to the uncertainties noted above, other principal risks actively managed by the group include the risks associated with potential threats to Group and customer data from malicious cyber-attack or hacking.

The group mitigates these risks by:

- A defined organisational structure with clear lines of responsibility underpinned by a corporate governance framework and a scheme of delegated authority.

- Management and staff across the organisation work closely with customers to operate as effectively as possible, whilst fostering long-term working relationships, innovative working, and good lines of communication.

- Operating a recruitment and selection process to ensure that employees are experienced and competent in their work. There is an established programme of training and development to ensure that colleagues are alert to, and responsive to customer needs whilst operating in line with the Group's corporate objectives.

- A commitment to ensuring compliance with data protection legislation and best-practice cyber security through investment and continuous improvement in these areas.

The group remains consistently profitable and there are no planned changes to the principal activities of the group in the next financial year.

ON BEHALF OF THE BOARD:

R R Ludlow - Director

29 October 2026

The director presents his report with the financial statements of the company and the group for the year ended 30 April 2026.

COMMENCEMENT OF TRADING

Chattertons Group Holdings Limited with incorporated on 4th February 2025 and became the parent undertaking of the group following a share for share exchange on 15th May 2025.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of legal and wealth management services.

DIVIDENDS

An final dividend of £43,500 was declared on 30th April 2026.

The total distribution of dividends for the year ended 30th April 2026 was £43,500 which was paid to the shareholders.

DIRECTOR

R R Ludlow held office during the whole of the period from 1 May 2025 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

R R Ludlow - Director

29 October 2026

Opinion

We have audited the financial statements of Chattertons Group Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2026 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of 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:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 30 April 2026 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 the 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.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page four, 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 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 group's and 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 group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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:

We have identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial experience, knowledge of the sector, a review of regulatory and legal correspondence and through discussions with Directors and other management obtained as part of the work required by auditing standards. We have also discussed with the Directors and other management the policies and procedures relating to compliance with laws and regulations. We communicated laws and regulations throughout the team and remained alert to any indications of non-compliance throughout the audit.

The potential impact of different laws and regulations varies considerably. Firstly, the Group is subject to laws and regulations that directly impact the financial statements (for example financial reporting legislation) and we have assessed the extent of compliance with such laws as part of our financial statements audit. We evaluated management incentives and opportunities for fraudulent manipulation of the financial statements, (including risk of override of controls) and determined that the principal risks were related to management bias in accounting estimate and judgemental areas of the financial statements such as depreciation of tangible fixed asset, as well as the risk of inappropriate journal entries to increase reported profitability. Audit procedures performed by the engagement team included the identification and testing of material and unusual journal entries and challenging management on key accounting estimates, assumptions and judgements made in preparation of the financial statements.

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. The further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. As with any audit, there is a greater risk of non-detection of irregularities as these may involve collusion, intentional omissions of 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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

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

Tara Bellamy FCA (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Audit Limited, Statutory Auditor

4 Henley Way

Doddington Road

Lincoln

Lincolnshire

LN6 3QR

30 October 2026

TURNOVER

3

18,287,127

Cost of sales

6,913,280

GROSS PROFIT

11,373,847

Administrative expenses

7,600,034

3,773,813

Other operating income

18,507

OPERATING PROFIT

5

3,792,320

Exceptional items

6

474,681

3,317,639

Interest receivable and similar income

7

3,721,155

7,038,794

Amounts written off investments

8

16,875

7,021,919

Interest payable and similar expenses

9

1,055,267

PROFIT BEFORE TAXATION

5,966,652

Tax on profit

10

1,555,864

PROFIT FOR THE FINANCIAL YEAR

4,410,788

Profit attributable to:

Owners of the parent

3,308,091

Non-controlling interests

1,102,697

4,410,788

PROFIT FOR THE YEAR

4,410,788

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,410,788

Total comprehensive income attributable to:

Owners of the parent

3,308,091

Non-controlling interests

1,102,697

4,410,788

FIXED ASSETS

Intangible assets

13

1,413,540

Tangible assets

14

2,765,748

Investments

15

-

4,179,288

CURRENT ASSETS

Debtors

16

7,101,086

Cash at bank and in hand

12,768,666

19,869,752

CREDITORS

Amounts falling due within one year

17

4,379,744

NET CURRENT ASSETS

15,490,008

TOTAL ASSETS LESS CURRENT LIABILITIES

19,669,296

CREDITORS

Amounts falling due after more than one year

18

(166,667

)

PROVISIONS FOR LIABILITIES

20

(88,117

)

NET ASSETS

19,414,512

CAPITAL AND RESERVES

Called up share capital

21

50,000

Share premium

22

10,088,886

Retained earnings

22

3,264,591

SHAREHOLDERS' FUNDS

13,403,477

NON-CONTROLLING INTERESTS

23

6,011,035

TOTAL EQUITY

19,414,512

The financial statements were approved by the director and authorised for issue on 29 October 2026 and were signed by:

R R Ludlow - Director

FIXED ASSETS

Intangible assets

13

-

Tangible assets

14

-

Investments

15

15,035,079

15,035,079

CURRENT ASSETS

Debtors

16

832,034

Cash at bank

43,500

875,534

CREDITORS

Amounts falling due within one year

17

875,534

NET CURRENT LIABILITIES

-

TOTAL ASSETS LESS CURRENT LIABILITIES

15,035,079

CAPITAL AND RESERVES

Called up share capital

21

50,000

Share premium

22

14,985,079

SHAREHOLDERS' FUNDS

15,035,079

Company's profit for the financial year

4,939,693

The financial statements were approved by the director and authorised for issue on 29 October 2026 and were signed by:

R R Ludlow - Director

Called up

share

Retained

Share

capital

earnings

premium

£

£

£

Changes in equity

Issue of share capital

50,000

-

10,088,886

Dividends

-

(43,500

)

-

Total comprehensive income

-

3,308,091

-

50,000

3,264,591

10,088,886

Acquisition of non-controlling interest

-

-

-

Balance at 30 April 2026

50,000

3,264,591

10,088,886

Non-controlling

Total

Total

interests

equity

£

£

£

Changes in equity

Issue of share capital

10,138,886

-

10,138,886

Dividends

(43,500

)

-

(43,500

)

Total comprehensive income

3,308,091

1,102,697

4,410,788

13,403,477

1,102,697

14,506,174

Acquisition of non-controlling interest

-

4,908,338

4,908,338

Balance at 30 April 2026

13,403,477

6,011,035

19,414,512

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Changes in equity

Issue of share capital

50,000

-

14,985,079

15,035,079

Dividends

-

(43,500

)

-

(43,500

)

Total comprehensive income

-

43,500

-

43,500

Balance at 30 April 2026

50,000

-

14,985,079

15,035,079

Cash flows from operating activities

Cash generated from operations

1

4,551,914

Interest paid

(989,531

)

Tax paid

(1,792,871

)

Net cash from operating activities

1,769,512

Cash flows from investing activities

Purchase of intangible fixed assets

(5,398,175

)

Purchase of tangible fixed assets

(308,546

)

Cash acquired from subsidiaries

13,168,582

Interest received

3,721,123

Net cash from investing activities

11,182,984

Cash flows from financing activities

Amount introduced by directors

248,526

Amount withdrawn by directors

(388,856

)

Equity dividends paid

(43,500

)

Net cash from financing activities

(183,830

)

Increase in cash and cash equivalents

12,768,666

Cash and cash equivalents at beginning of year

2

-

Cash and cash equivalents at end of year

2

12,768,666

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

£

Profit before taxation

5,966,652

Depreciation charges

126,740

Amortisation charges

188,509

Impairment of investments

16,875

Interest on directors loan account

(22,243

)

Other interest

(43,461

)

Finance costs

1,055,267

Finance income

(3,721,155

)

3,567,184

Increase in trade and other debtors

(269,034

)

Increase in trade and other creditors

1,253,764

Cash generated from operations

4,551,914

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 30 April 2026

30.4.26

1.5.25

£

£

Cash and cash equivalents

12,768,666

-

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.5.25

Cash flow

At 30.4.26

£

£

£

Net cash

Cash at bank and in hand

-

12,768,666

12,768,666

-

12,768,666

12,768,666

Total

-

12,768,666

12,768,666

1.	STATUTORY INFORMATION

Chattertons Group Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation

The group financial statements consolidate the financial statements of Chattertons Group Holdings Limited and all its subsidiary undertakings drawn up to 30 April each year.

A subsidiary is an entity controlled by the Group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where the Group owns less than 50% of the voting powers of an entity but controls the entity by virtue of an agreement with other investors which give it control of the financial and operating policies of the entity it accounts for that entity as a subsidiary.

Any subsidiary undertakings or associates sold or acquired during the year are included up to, or from, the dates of change of control or change of significant influence respectively.

All intra-Group transactions, balances, income and expenses are eliminated on consolidation. Adjustments are made to eliminate the profit or loss arising on transactions with associates to the extent of the Group's interest in the entity.

The parent company has taken advantage of section 408 of the Companies Act 2006 and has not included its own Income Statement in these financial statements.

One entity included within the group financial statements, Page Nelson Limited, is entitled to the exemption from audit under Section 479A of the Companies Act 2006 relating to the year ended 30 April 2026.

These are the first consolidated financial statements prepared by the company following the acquisition of a controlling interest in Chattertons Gorup Limited on 15 May 2025. Accordingly, no comparative consolidated figures are presented.

Significant judgements and estimates

In the application of the group's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 and are covered within the accounting policies:

(i) The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the property plant and equipment, and accounting policy note for the usual economic lives of each class of assets.

(ii) The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, ageing profile of debtors and historical experience. See note 16 for the net carrying amount of the debtors and associated impairment provision.

(iii) The group has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including; life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the statement of financial position. The assumptions reflect historical experience and current trends. See note 24 for the disclosures relating to the defined contribution pension scheme.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects.

Turnover

Turnover represents amounts recoverable from clients for professional services provided during the year, excluding value added tax. The group recognises turnover when the amount can be reliably measured and it is probable that economic benefits will flow.

Services provided to clients, which at the financial reporting date have not been billed, are recognised as amounts recoverable on contracts.

Revenue recognised in this manner is based on an assessment of the fair value of the services provided at the financial reporting date reflecting the stage of completion of the service rendered. Stage of completion is measured by reference to the sales value of work done to date multiplied by the historical recovery rate for a portfolio of similar clients.

Rental income is included as the group's right to receive payment is established.

Interest receivable is recognised using the effective interest method.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2025, 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.

Freehold property

-

2% on cost

Long leasehold

-

10% on cost

Fixtures and fittings

-

25% on cost and 10% on cost

Computer equipment

-

25% on cost and 10% on cost

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Financial instruments

The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments.

Basic financial assets, including trade and other debtors and cash and bank balances are initially recognised at transaction price, unless the arrangement constitute a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the income statement.

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. Accounts 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to the income statement in the period to which they relate.

Hire purchase and leasing

Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease.

Provisions

Provisions are recognised when the company has an obligation at the statement of financial position date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

£

Legal services

16,623,506

Wealth management services

1,663,621

18,287,127

4.	EMPLOYEES AND DIRECTORS

£

Wages and salaries

8,986,259

Social security costs

1,119,268

Other pension costs

395,674

10,501,201

The average number of employees during the year was as follows:

Fee earners

131

Admin

71

202

£

Director's remuneration

24,000

Director's pension contributions to money purchase schemes

120,000