Company registration number 06030940 (England and Wales)
LYNCOMBE CONSULTANTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
PAGES FOR FILING WITH REGISTRAR
LYNCOMBE CONSULTANTS LIMITED
COMPANY INFORMATION
Directors
M Ferns
S Cresswell
M Couzens
J Kirk
G Hamilton
I Mackenzie
Secretary
C Forbes
Company number
06030940
Registered office
Brookdale Centre
Manchester Road
Knutsford
Cheshire
United Kingdom
WA16 0SR
Auditor
Azets Audit Services
Ship Canal House
98 King Street
Manchester
M2 4WU
LYNCOMBE CONSULTANTS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
LYNCOMBE CONSULTANTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2022
31 December 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Intangible assets
3
70,571
65,400
Tangible assets
4
56
70,571
65,456
Current assets
Debtors
5
4,802,920
3,698,388
Cash at bank and in hand
1,095,105
964,757
5,898,025
4,663,145
Creditors: amounts falling due within one year
6
(3,590,964)
(3,440,041)
Net current assets
2,307,061
1,223,104
Total assets less current liabilities
2,377,632
1,288,560
Provisions for liabilities
(17,461)
(16,088)
Net assets
2,360,171
1,272,472
Capital and reserves
Called up share capital
8
103,550
108,550
Capital redemption reserve
8,433
3,433
Profit and loss reserves
2,248,188
1,160,489
Total equity
2,360,171
1,272,472
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
7 June 2023 and are signed on its behalf by:
2023-06-07
M Couzens
Director
Company Registration No. 06030940
LYNCOMBE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
- 2 -
1
Accounting policies
Company information
Lyncombe Consultants Limited is a private company limited by shares incorporated in England and Wales. The registered office is Brookdale Centre, Manchester Road, Knutsford, Cheshire, United Kingdom, WA16 0SR.
1.1
Accounting convention
These financial statements have been prepared in accordance with 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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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 under the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements of the company are consolidated in the financial statements of Adviser Services Holdings Limited. These consolidated financial statements are available from Companies House, Crown Way, Cardiff CF14 3UZ.
1.2
Going concern
Atruet 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 is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Rendering of services
Turnover from a contract to provide services is recognised in the period in which the services are provided. The following conditions must be satisfied:
the amount of turnover 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.
1.4
Intangible fixed assets other than goodwill
Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation 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:
Software
33% straight line
LYNCOMBE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 3 -
1.5
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:
Fixtures and fittings
20% straight line
Computers
33% straight line
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.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.7
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.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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 cost using the effective interest method. Financial assets classified as receivable within one year are not amortised.
Derecognition of financial assets
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.
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.
Basic financial liabilities
Basic financial liabilities, including 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. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
LYNCOMBE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
1
Accounting policies
(Continued)
- 4 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
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.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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.
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 enacted or substantively enacted at the balance sheet date. Deferred tax is charged or credited in the profit and 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.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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 profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
LYNCOMBE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 5 -
2
Employees
The average monthly number of persons employed by the company during the year was:
2022
2021
Number
Number
Total
10
17
3
Intangible fixed assets
Software
£
Cost
At 1 January 2022
66,750
Additions
30,194
At 31 December 2022
96,944
Amortisation and impairment
At 1 January 2022
1,350
Amortisation charged for the year
25,023
At 31 December 2022
26,373
Carrying amount
At 31 December 2022
70,571
At 31 December 2021
65,400
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2022 and 31 December 2022
1,515
Depreciation and impairment
At 1 January 2022
1,459
Depreciation charged in the year
56
At 31 December 2022
1,515
Carrying amount
At 31 December 2022
At 31 December 2021
56
LYNCOMBE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 6 -
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
1,426,104
719,006
Prepayments and accrued income
3,376,816
2,979,382
4,802,920
3,698,388
In the current year, cash received post year-end relating to ongoing work at the balance sheet date has been reclassified as accrued income rather than trade debtors, to better reflect the nature of the balance. The prior year figures have been reclassified also for comparative purposes.
6
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
478,654
318,583
Amounts owed to group undertakings
1,244
Taxation and social security
6,463
12,124
Other creditors
3,105,847
3,108,090
3,590,964
3,440,041
7
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
17,643
16,364
Short term timing differences
(182)
(276)
17,461
16,088
2022
Movements in the year:
£
Liability at 1 January 2022
16,088
Charge to profit or loss
1,373
Liability at 31 December 2022
17,461
LYNCOMBE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 7 -
8
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary B shares of £1 each
82,450
87,450
82,450
87,450
Ordinary X shares of £1 each
7,100
7,100
7,100
7,100
Ordinary Y shares of £1 each
7,000
7,000
7,000
7,000
Ordinary Z shares of £1 each
7,000
7,000
7,000
7,000
103,550
108,550
103,550
108,550
The rights attached to each share class are detailed in the documentation filed at Companies House.
During the year, 5,000 Ordinary shares of £1 each were bought back by the company for consideration of £5,000 and subsequently cancelled. 40,000 Ordinary shares of £1 each were bought back by the company for consideration of £40,000 and subsequently cancelled post year end.
9
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 Lee Van Houplines and the auditor was Azets Audit Services.
10
Financial commitments, guarantees and contingent liabilities
The company is party to an unlimited cross guarantee in favour of Metro Bank Plc, in respect of certain borrowings of this company, Adviser Services Holdings Limited, Sense Network Limited, Rockhold Investments Limited, Sense Adviser Services Limited and Sense Support Limited. At 31 December 2022, the net borrowings encompassed by the cross guarantee amounted to £3,032,500 (2021: £nil).
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, as follows:
2022
2021
£
£
3,828
709
LYNCOMBE CONSULTANTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022
- 8 -
12
Related party transactions
Balances with related parties
In preparing these financial statements, advantage has been taken of the provision under section 33 of FRS 102, which states that disclosure is not required of transactions with companies which are part of the same group, provided consolidated financial statements in which the company is included are publicly available.
At the balance sheet date amounts owed to/by group companies were as follows:
Amounts owed by
Amounts owed to
related parties
related parties
2022
2021
2022
2021
£
£
£
£
Adviser Services Holdings Limited
1,413,500
719,006
Sense Network Limited
12,604
1,244
The amounts above are unsecured, interest free and repayable on demand, and have therefore been classified as due within one year.
In the opinion of the directors there are no further transactions with related parties requiring disclosure under the Financial Reporting Standard 102 Section 33.
13
Parent company
The company's immediate and ultimate parent undertaking is Adviser Services Holdings Limited, also incorporated in England and Wales. Copies of the consolidated financial statements may be obtained from the Registrar of Companies, Maindy Way, Cardiff, CF4 3UZ.
The ultimate controlling party of the company is the board of directors by virtue of their majority share holding in Adviser Services Holdings Limited.
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