Simpsons Mortgage Services Limited
Financial Statements
For the year ended 30 April 2022
For Filing with Registrar
Company Registration No. 02708103 (England and Wales)
Simpsons Mortgage Services Limited
Balance Sheet
As at 30 April 2022
Page 1
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
13,065
10,935
Current assets
Debtors
5
252,060
141,944
Cash at bank and in hand
84,175
150,632
336,235
292,576
Creditors: amounts falling due within one year
6
(187,068)
(188,432)
Net current assets
149,167
104,144
Total assets less current liabilities
162,232
115,079
Provisions for liabilities
7
(21,627)
(22,351)
Net assets
140,605
92,728
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
140,505
92,628
Total equity
140,605
92,728
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 15 July 2022 and are signed on its behalf by:
A. C. Dewar
Director
Company Registration No. 02708103
Simpsons Mortgage Services Limited
Notes to the Financial Statements
For the year ended 30 April 2022
Page 2
1
Accounting policies
Company information
Simpsons Mortgage Services Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Betchworth House, 57-65 Station Road, Redhill, Surrey, RH1 1DL.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of 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 financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
Despite the disruption caused by the coronavirus pandemic the business has continued to generate profits and has a strong balance sheet and cash position. The post year end trading position remains positive and therefore, at the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents the commissions received from finance companies. Fees arose wholly within the United Kingdom and are recognised when received. A provision is made in respect of clawback for policies which might subsequently fall through, on the basis of experience in recent years.
1.4
Tangible fixed assets
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:
Land and buildings leasehold
equal instalments over the period of the lease
Fixtures, fittings and equipment
20% per annum on a straight line basis
Computer equipment
33 1/3% per annum on a straight line basis
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
.
1.5
Cash and cash equivalents
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.
Simpsons Mortgage Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2022
1
Accounting policies
(Continued)
Page 3
1.6
Financial instruments
The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as 'other' or basic instruments measure at fair value.
1.7
Equity instruments
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable
.
Current 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
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.
1.9
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in
profit
or
loss
in the period
in which
it arises.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Simpsons Mortgage Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2022
1
Accounting policies
(Continued)
Page 4
1.12
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
expenditure
on a straight line basis over the term of the relevant lease
.
1.13
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
17
16
3
Directors' remuneration
2022
2021
£
£
Remuneration paid to directors
104,000
98,912
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2021 - 1).
Simpsons Mortgage Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2022
Page 5
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 May 2021
10,790
47,420
58,210
Additions
3,586
4,334
7,920
At 30 April 2022
14,376
51,754
66,130
Depreciation and impairment
At 1 May 2021
6,750
40,525
47,275
Depreciation charged in the year
1,326
4,464
5,790
At 30 April 2022
8,076
44,989
53,065
Carrying amount
At 30 April 2022
6,300
6,765
13,065
At 30 April 2021
4,040
6,895
10,935
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
230,620
101,496
Other debtors
21,440
40,448
252,060
141,944
6
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
1,274
432
Corporation tax
26,611
33,559
Other creditors
159,183
154,441
187,068
188,432
Simpsons Mortgage Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2022
Page 6
7
Provisions for liabilities
2022
2021
£
£
Clawback provision
21,627
22,351
Movements on provisions:
Clawback provision
£
At 1 May 2021
22,351
Additional provisions in the year
36,000
Utilisation of provision
(36,724)
At 30 April 2022
21,627
A provision is made in respect of clawback for policies which might subsequently be cancelled, on the basis of experience in recent years.
8
Retirement benefit schemes
Defined contribution schemes
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund. The directors are members of this pension scheme.
The charge to profit or loss in respect of defined contribution schemes was £22,635 (2021 - £16,384).
9
Called up share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary shares of £1 each
100
100
10
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Paul Samrah and the auditor was Moore Kingston Smith LLP.
Simpsons Mortgage Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2022
Page 7
11
Operating lease commitments
Lessee
At the reporting end date, the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2022
2021
£
£
Within one year
680
680
Between two and five years
1,190
1,870
1,870
2,550
12
Related party transactions
The company incurred a management fee payable to its immediate parent company, Simpsons Estate Agents Limited, amounting to £69,048 (2021: £99,000).
The company paid rent, at arm's length, to its immediate parent company, Simpsons Estate Agents Limited, amounting to £15,540 (2021: £38,033).
At the year end £230,173 (2021: £101,049) was due from the immediate parent company.
At the year end £447 (2021: £447) was due from Simpsons Estate Agents (Woking) Limited, a group company.
13
Parent company
The ultimate parent company is Toptrad Limited, a company registered in Jersey. The controlling party is the immediate parent company, Simpsons Estate Agents Limited, a company registered in England and Wales.
The largest and smallest group in which the results of the company are consolidated is that headed by Simpsons Estate Agents Limited, incorporated in England and Wales. The consolidated accounts of this company are available to the public and may be obtained from Companies House. No other group accounts include the results of the company.