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Financial Statements for the Year Ended 30 November 2016 |
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for |
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Restons Solicitors Limited |
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REGISTERED NUMBER:
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Financial Statements for the Year Ended 30 November 2016 |
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for |
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Restons Solicitors Limited |
Restons Solicitors Limited (Registered number: 05584055) |
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Contents of the Financial Statements |
for the Year Ended 30 November 2016 |
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Page |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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Restons Solicitors Limited |
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Company Information |
for the Year Ended 30 November 2016 |
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DIRECTORS: |
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SECRETARY: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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SENIOR STATUTORY
AUDITOR: |
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AUDITORS: |
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Statutory Auditor |
The Copper Room |
Deva Centre |
Trinity Way |
Manchester |
M3 7BG |
Restons Solicitors Limited (Registered number: 05584055) |
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Balance Sheet |
30 November 2016 |
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30.11.16 | 30.11.15 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Debtors | 6 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 7 | ( |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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PROVISIONS FOR LIABILITIES | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 8 |
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Retained earnings | 9 |
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SHAREHOLDERS' FUNDS |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors on
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Restons Solicitors Limited (Registered number: 05584055) |
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Notes to the Financial Statements |
for the Year Ended 30 November 2016 |
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1. | STATUTORY INFORMATION |
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Restons Solicitors Limited is a
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company's registered number and registered office address can be found on the Company Information page. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
These financial statements for the year ended 30th November 2016 are the first financial statements of Restons |
Solicitors Limited prepared in accordance with FRS 102 1A, The Financial Reporting Standard applicable in |
the UK and Republic of Ireland. The date of transition to FRS 102 was 1st December 2014. An explanation of |
how transition to FRS 102 has affected the reported financial position and financial performance is given in |
note 15. |
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 £. |
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The principal accounting policies adopted are set out below. |
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Significant judgements and estimates |
In the application of the company's accounting policies, the directors are required to make judgements, |
estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from |
other sources. The estimates and associated 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. Revisions to accounting estimates are recognised in the period |
in which the estimate is revised where the revision affects only that period, or in the period of the revision and |
future periods where the revision affects both current and future periods. |
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The key assumptions concerning the future and other key sources of estimation include uncertainties at the |
reporting date, which may have a risk of causing a material adjustment to the carrying amounts of assets and |
liabilities within the next financial periods, are discussed below. |
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Going concern |
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. |
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Revenue recognition |
Fee income represents revenue earned under a wide variety of contracts to provide professional services. |
Revenue is recognised as earned when, and to the extent that, the company obtains the right to consideration in |
exchange for its performance under these contracts. It is measured at the fair value of the right to |
consideration, which represents amounts chargeable to clients, excluding value added tax. |
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Fee income that is contingent on events outside the control of the company is recognised when the contingent |
event occurs. |
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Goodwill |
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net |
assets acquired. It is initially recognised as an asset cost and is subsequently measured at cost less accumulated |
amortisation and accumulated impairment loss. |
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In line with the requirements of FRS102 the Directors have completed a full review of intangible assets of the |
company. Following this review the Directors have considered the treatment of Goodwill and under the |
transitional requirements of FRS102 have reduced the useful economic life of the goodwill acquired in 2005 |
and as a result full provision has been made for the impairment at the date of first year adoption being 30th |
November 2014. |
Restons Solicitors Limited (Registered number: 05584055) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 November 2016 |
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2. | ACCOUNTING POLICIES - continued |
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Tangible fixed assets |
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Plant and machinery | - |
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Fixtures and fittings | - |
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Computer equipment | - |
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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. |
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Fixed asset investments |
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and |
subsequently measured at cost less any accumulated impairment losses. The investments are assessed for |
impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised |
immediately in profit or loss. |
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Fixed asset investments which are listed on recognised stock exchanges are stated at year end market value. |
Fixed asset investments which are unlisted are stated at cost less provisions for reductions in value. |
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A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating |
policies of the entity so as to obtain benefits from its activities. |
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Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible |
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any |
such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the |
impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the |
company estimates the recoverable amount of the cash-generating unit to which the asset belongs. |
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Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the |
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects |
current market assessments of the time value of money and the risks specific to the asset for which the |
estimates of future cash flows have been adjusted. |
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Restons Solicitors Limited (Registered number: 05584055) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 November 2016 |
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2. | ACCOUNTING POLICIES - continued |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with bank, |
other short-term liquid investments with original maturities of three months or less, and bank overdrafts. |
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Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 |
'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
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Financial instruments are recognised in the company's statement of financial position when the company |
becomes party to the contractual provisions of the instrument. |
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Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when |
there is a legally enforcible right to set off the recognised amounts and there is an intention to settle on a net |
basis or to realise the net asset and settle the liability simultaneously. |
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Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction |
price including transaction costs and are subsequently carried at amortised costs using the effective interest |
method 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. Financial assets classified as |
receivable within one year are not amortised. |
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Other financial assets |
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or |
joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are |
subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that |
investments in equity instruments that are not publically traded and whose fair values cannot be measured |
reliably are measured at cost less impairment. |
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Impairment of financial assets |
Financial assets, other than those held at fair value through profit or loss, are assessed for indicators of |
impairment at each reporting end date. |
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Financial assets are impaired where there is objective evidence that, as a result of one or more events that |
occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. |
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 profit or loss. |
Restons Solicitors Limited (Registered number: 05584055) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 November 2016 |
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2. | ACCOUNTING POLICIES - continued |
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Derecognition of financial asets |
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or |
are settled, or when the company transfers the financial asset and substantially all the risks and rewards of |
ownership to another entity, or if some significant risks and rewards of ownership are retained but control of |
the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
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Classification of financial liabilities |
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. |
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Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference |
shares that are classified as debt, 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 receipts |
discounted at a market rate of interest. Financial liabilities classified as payable within one year are not |
amortised. |
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Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
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Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of |
business from suppliers. Amounts 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. |
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Derecognition of financial liabilities |
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or |
cancelled. |
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Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. |
Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion |
of the company. |
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Taxation |
The tax expense represents the sum of the tax currently payable and deferred tax. |
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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 and 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. |
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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. |
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Restons Solicitors Limited (Registered number: 05584055) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 November 2016 |
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2. | ACCOUNTING POLICIES - continued |
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent |
that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be |
recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability |
is settled or the asset is realised. Deferred tax is charged or credited in the profit or loss account, except when it |
relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in |
equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset |
current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax |
authority. |
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Foreign currencies |
Transactions in foreign currency are translated at exchange rates approximating to the rate ruling at the date of |
the transaction. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are |
translated at the foreign exchange rate ruling at that date. Foreign exchange differences are recognised in the |
profit and loss account. |
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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. |
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The cost of any unused holiday entitlement is recognised in the period in which the employee's services are |
received. |
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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. |
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Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the |
lease. |
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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. |
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Provisions |
A provision is recognised in the balance sheet when the company has a constructive or legal obligation as a |
result of a past event and it is probable that an outflow of economic benefit will be required to settle the |
obligation. Provisions are recognised at their discounted net present value. |
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Liability limitation agreement |
The company has entered into a liability limitation agreement with Royce Peeling Green Limited, the statutory |
auditor for the year ended 30 November 2016. The proportionate liability agreement follows the |
standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability |
Agreements, and has been approved by the shareholders. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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Restons Solicitors Limited (Registered number: 05584055) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 November 2016 |
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4. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 December 2015 |
and 30 November 2016 |
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AMORTISATION |
At 1 December 2015 |
and 30 November 2016 |
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NET BOOK VALUE |
At 30 November 2016 |
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At 30 November 2015 |
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In line with the requirements of FRS102 the Directors have completed a full review of intangible assets of the |
company. Following this review the Directors have considered the treatment of Goodwill and under the |
transitional requirements of FRS102 have reduced the useful economic life of the goodwill acquired in 2005 |
and as a result full provision has been made for the impairment at the date of first year adoption being 30th |
November 2014. |
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5. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Computer |
machinery | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 December 2015 |
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Additions |
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Disposals |
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At 30 November 2016 |
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DEPRECIATION |
At 1 December 2015 |
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Charge for year |
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Eliminated on disposal |
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At 30 November 2016 |
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NET BOOK VALUE |
At 30 November 2016 |
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At 30 November 2015 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.11.16 | 30.11.15 |
£ | £ |
Trade debtors |
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Prepayments and accrued income |
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Restons Solicitors Limited (Registered number: 05584055) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 November 2016 |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.11.16 | 30.11.15 |
£ | £ |
Trade creditors |
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Tax |
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Social security and other taxes |
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Other creditors |
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Directors' current accounts | 2,724,321 | 1,371,894 |
Accrued expenses |
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8. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.11.16 | 30.11.15 |
value: | £ | £ |
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'A' Ordinary | £1 | 55 | 55 |
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'B' Ordinary | £1 | 45 | 45 |
100 | 100 |
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9. | RESERVES |
Retained |
earnings |
£ |
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At 1 December 2015 |
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Profit for the year |
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Dividends | ( |
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At 30 November 2016 |
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10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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As the income statement has been omitted from the filing copy of the financial statements the following |
information is provided in accordance with S444 (5B) of the Companies Act 2006 in relation to the audit |
report on the statutory financial statements. |
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The report of the Auditors was unqualified. |
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Martin Chatten (Senior Statutory Auditor) |
for and on behalf of Royce Peeling Green Limited |
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11. | CAPITAL COMMITMENTS |
30.11.16 | 30.11.15 |
£ | £ |
Contracted but not provided for in the |
financial statements |
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Restons Solicitors Limited (Registered number: 05584055) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 November 2016 |
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12. | RELATED PARTY DISCLOSURES |
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C J Reston |
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Mr C J Reston is a director and controlling shareholder of Restons Solicitors Limited. |
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During the year dividends of £1,100,000 were paid (2015 £550,000). |
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Loans have been provided by C J Reston to the company with nil interest charged and is repayable on demand. |
The balance at the year end was £2,724,321 (2015: £1,371,894). |
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Mrs S C Reston |
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Mrs S C Reston is a director and shareholder of Restons Solicitors Limited. |
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During the year dividends of £900,000 were paid (2015 £450,000). |
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13. | ULTIMATE CONTROLLING PARTY |
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The controlling party is C J Reston and Mrs S C Reston.. |
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14. | RECONCILIATIONS ON ADOPTION OF FRS 102 |
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30
November 2014 |
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30
November 2015 |
£ | £ |
Equity as reported under previous UK GAAP and under FRS 102 | 3,464,4777 | 920,754 |
As restated | 824,477 | 920,754 |
Reconciliation of profit/(loss ) |
2014 |
Notes | £ |
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Profit/(loss) as reported under previous UK GAAP | 1,049,123 |
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Adjustments arising from transition to FRS 102: |
Impairment of Goodwill | 1 | (2,640,000 | ) |
Profit/(loss) reported under FRS 102 | (1,590,877 | ) |
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Notes to reconciliations on adoption of FRS 102 |
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1.Impairment of Goodwill |
On transition to FRS 102 the company remeasured Goodwill, resulting in an impairment of Goodwill totalling |
£2,640,000. |
Restons Solicitors Limited (Registered number: 05584055) |
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Notes to the Financial Statements - continued |
for the Year Ended 30 November 2016 |
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15. | TRANSITION TO FRS 102 |
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The company prepares its first financial statements that comply with FRS102 for the year ended 30 November |
2016. The date of transition to FRS 102 is 1 December 2014. |
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In line with the requirements of FRS102 the directors have completed a full review of intangible assets of the |
company. Following this review the Directors have considered the treatment of Goodwill and under the |
transitional requirements of FRS102 have reduced the useful economic life of the goodwill acquired in 2005 |
and as a result full provision has been made for the impairment at the date of first year adoption being 30th |
November 2014. |
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The directors do not consider there to be any other significant changes in accounting policies compared to |
those previously used. |