REGISTERED NUMBER: 06598441 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

AFFINITY LAW LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

N J Kitchener

C Pratt

SECRETARY:

D L Norwell

REGISTERED OFFICE:

100 New Walk

Leicester

Leicestershire

LE1 7EA

REGISTERED NUMBER:

06598441 (England and Wales)

ACCOUNTANTS:

Magma Audit LLP (part of the Dains Group)

First Floor, Lakeside House

4 Smith Way

Grove Park

Leicester

Leicestershire

LE19 1SX

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

220,678

209,790

220,678

209,790

CURRENT ASSETS

Debtors

6

845,909

1,373,670

Cash at bank and in hand

2,401,248

1,680,986

3,247,157

3,054,656

CREDITORS

Amounts falling due within one year

7

(3,158,985

)

(2,328,663

)

NET CURRENT ASSETS

88,172

725,993

TOTAL ASSETS LESS CURRENT LIABILITIES

308,850

935,783

CREDITORS

Amounts falling due after more than one year

8

(180,080

)

(195,284

)

PROVISIONS FOR LIABILITIES

(10,585

)

-

NET ASSETS

118,185

740,499

CAPITAL AND RESERVES

Called up share capital

2

2

Retained earnings

118,183

740,497

118,185

740,499

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 December 2025.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 December 2025 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 2 November 2026 and were signed on its behalf by:

N J Kitchener - Director

1.	STATUTORY INFORMATION

Affinity Law Limited is a limited company, limited by shares, registered in England and Wales. Its registered office address is 100 New Walk Leicester LE1 7EA and the registered number is 06598441.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The presentation currency of the financial statements is pound sterling (£) and figures are rounded to the nearest £1.

Turnover

Turnover, which is derived from the provision of legal services, 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:

Rendering of services

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:

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the contract;

- the stage of completion of the contract at the end of the reporting period can be measured reliably; and

- the costs incurred and the costs to complete the contract can be measured reliably.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2012, 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.

Tangible fixed assets 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 a straight line method or reducing balance method, as indicated below.

Fixtures, fittings and equipment 25% reducing balance

Computer equipment 33.3% straight line

Motor vehicles 25% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Financial instruments

(i) Financial assets

Basic financial assets, including trade and other debtors, 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.

Such assets are subsequently carried at amortised cost using the effective interest rate method.

(ii) Financial liabilities

Basic financial liabilities, including trade and other creditors 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.

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

Taxation

The tax expense for the year comprises current and deferred tax.

Tax is recognised in profit or loss 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.

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.

Both current and deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases. Payments under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Cash and cash equivalents

Cash and cash equivalents are represented by cash in hand, deposits held at call with financial institutions, and other short-term highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 25 (2024 - 23 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2025

and 31 December 2025

677,250

AMORTISATION

At 1 January 2025

and 31 December 2025

677,250

NET BOOK VALUE

At 31 December 2025

-

At 31 December 2024

-

5.	TANGIBLE FIXED ASSETS

Short

leasehold

Fixtures

land &

and

Motor

Computer

buildings

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 January 2025

750

30,016

252,084

37,118

319,968

Additions

-

17,115

106,000

15,694

138,809

Disposals

-

(125

)

(109,138

)

(15,763

)

(125,026

)

At 31 December 2025

750

47,006

248,946

37,049

333,751

DEPRECIATION

At 1 January 2025

750

28,943

45,270

35,215

110,178

Charge for year

-

2,627

52,524

4,428

59,579

Eliminated on disposal

-

(125

)

(40,796

)

(15,763

)

(56,684

)

At 31 December 2025

750

31,445

56,998

23,880

113,073

NET BOOK VALUE

At 31 December 2025

-

15,561

191,948

13,169

220,678

At 31 December 2024

-

1,073

206,814

1,903

209,790

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Trade debtors

-

150,000

Amounts owed by group undertakings

52,800

-

Other debtors

229,610

4,559

Directors' current accounts

417,031

903,210

Tax

103,623

-

VAT

20,696

281,487

Deferred tax asset

-

17,265

Prepayments and accrued income

22,149

17,149

845,909

1,373,670

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

£

Hire purchase contracts

35,579

32,838

Trade creditors

2,840,563

2,065,564

Corporation tax

179,731

152,250

Social security and other taxes

39,884

26,117

Other creditors

3,622

3,168

Accruals and deferred income

59,606

48,726

3,158,985

2,328,663

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2025

2024

£

£

Hire purchase contracts

180,080

195,284

9.	SECURED DEBTS

The following secured debts are included within creditors:

2025

2024

£

£

Hire purchase contracts

215,659

228,122

Hire purchase contracts are secured on the assets concerned.

10.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 December 2025 and 31 December 2024:

2025

2024

£

£

N J Kitchener

Balance outstanding at start of year

480,207

400,118

Amounts advanced

421,369

485,639

Amounts repaid

(486,050

)

(405,550

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

415,526

480,207

S E Roberts

Balance outstanding at start of year

423,003

329,424

Amounts advanced

223,510

499,129

Amounts repaid

(646,513

)

(405,550

)

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

423,003

C Pratt

Balance outstanding at start of year

-

-

Amounts advanced

1,505

-

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

1,505

-

11.	ULTIMATE CONTROLLING PARTY

The controlling party is Affinity Law Personal Injury Limited.