Simpsons Mortgage Services Limited
Financial Statements
For the year ended 30 April 2023
For Filing with Registrar
Company Registration No. 02708103 (England and Wales)
Simpsons Mortgage Services Limited
Balance Sheet
As at 30 April 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
13,602
13,065
Current assets
Debtors
5
167,449
252,060
Cash at bank and in hand
173,629
84,175
341,078
336,235
Creditors: amounts falling due within one year
6
(139,051)
(187,068)
Net current assets
202,027
149,167
Total assets less current liabilities
215,629
162,232
Provisions for liabilities
7
(29,093)
(21,627)
Net assets
186,536
140,605
Capital and reserves
Called up share capital
9
100
100
Profit and loss reserves
186,436
140,505
Total equity
186,536
140,605
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 31 August 2023 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 2023
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 amounts 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
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.
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.
Simpsons Mortgage Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
1
Accounting policies
(Continued)
Page 3
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 is 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.
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.
Simpsons Mortgage Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 4
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
17
17
3
Directors' remuneration
2023
2022
£
£
Remuneration paid to directors
104,000
104,000
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 May 2022
14,376
51,754
66,130
Additions
4,997
991
5,988
At 30 April 2023
19,373
52,745
72,118
Depreciation and impairment
At 1 May 2022
8,076
44,989
53,065
Depreciation charged in the year
1,720
3,731
5,451
At 30 April 2023
9,796
48,720
58,516
Carrying amount
At 30 April 2023
9,577
4,025
13,602
At 30 April 2022
6,300
6,765
13,065
Simpsons Mortgage Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 5
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
166,849
230,620
Other debtors
600
21,440
167,449
252,060
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
2,279
1,274
Corporation tax
27,052
26,611
Other creditors
109,720
159,183
139,051
187,068
7
Provisions for liabilities
2023
2022
£
£
Clawback provision
29,093
21,627
Movements on provisions:
Clawback provision
£
At 1 May 2022
21,627
Additional provisions in the year
36,000
Utilisation of provision
(28,534)
At 30 April 2023
29,093
A provision is made in respect of clawback for policies which might subsequently be cancelled, on the basis of experience in recent years.
Simpsons Mortgage Services Limited
Notes to the Financial Statements (Continued)
For the year ended 30 April 2023
Page 6
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 £23,312 (2022 - £22,635).
9
Called up share capital
2023
2022
£
£
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 2023
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:
2023
2022
£
£
Within one year
680
680
Between two and five years
1,190
1,190
1,870
1,870
12
Related party transactions
The company incurred a management fee payable to its immediate parent company, Simpsons Estate Agents Limited, amounting to £69,048 (2022: £69,048).
The company paid rent, at arm's length, to its immediate parent company, Simpsons Estate Agents Limited, amounting to £15,540 (2022: £15,540).
At the year end £166,402 (2022: £230,173) was due from the immediate parent company.
At the year end £447 (2022: £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.