Company registration number 09492583 (England and Wales)
MERRICKS SOLICITORS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
PAGES FOR FILING WITH REGISTRAR
MERRICKS SOLICITORS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
MERRICKS SOLICITORS LIMITED
BALANCE SHEET
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
58,333
78,333
Tangible assets
4
31,449
35,457
89,782
113,790
Current assets
Debtors
5
402,687
442,572
Cash at bank and in hand
18,209
23,783
420,896
466,355
Creditors: amounts falling due within one year
6
(195,426)
(246,738)
Net current assets
225,470
219,617
Total assets less current liabilities
315,252
333,407
Creditors: amounts falling due after more than one year
7
(7,457)
(18,345)
Provisions for liabilities
(6,428)
(5,284)
Net assets
301,367
309,778
Capital and reserves
Called up share capital
1,000
1,000
Profit and loss reserves
300,367
308,778
Total equity
301,367
309,778
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 31 May 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
MERRICKS SOLICITORS LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 6 February 2024 and are signed on its behalf by:
Mr T F Merrick
Director
Company registration number 09492583
MERRICKS SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
1
Accounting policies
Company information
Merricks Solicitors Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1-3 Cross Street, Wadebridge, Cornwall, PL27 7DT.
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
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.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.3
Intangible fixed assets - 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 at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 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:
Leasehold improvements
25% per annum on the reducing balance method
Plant and equipment
25% per annum on the reducing balance method
Fixtures and fittings
25% per annum on the reducing balance method
Computers
25% per annum on the reducing balance method
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.
MERRICKS SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 4 -
1.5
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.
1.6
Cash at bank and in hand
Cash at bank and in hand 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.
1.7
Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
1.8
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 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 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.
1.9
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
16
15
MERRICKS SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 5 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 June 2022 and 31 May 2023
200,000
Amortisation and impairment
At 1 June 2022
121,667
Amortisation charged for the year
20,000
At 31 May 2023
141,667
Carrying amount
At 31 May 2023
58,333
At 31 May 2022
78,333
4
Tangible fixed assets
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 1 June 2022
17,000
7,538
7,461
52,109
84,108
Additions
6,475
6,475
At 31 May 2023
17,000
7,538
7,461
58,584
90,583
Depreciation and impairment
At 1 June 2022
9,351
5,115
5,023
29,162
48,651
Depreciation charged in the year
1,912
606
610
7,355
10,483
At 31 May 2023
11,263
5,721
5,633
36,517
59,134
Carrying amount
At 31 May 2023
5,737
1,817
1,828
22,067
31,449
At 31 May 2022
7,649
2,423
2,438
22,947
35,457
5
Debtors: amounts falling due wthin one year
2023
2022
£
£
Trade debtors
198,964
224,057
Corporation tax recoverable
14,303
14,303
Other debtors
189,420
204,212
402,687
442,572
MERRICKS SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 6 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans (secured)
37,677
39,333
Trade creditors
22,791
33,722
Amounts owed to participating interests
34,247
28,728
Corporation tax
35,311
36,372
Other taxation and social security
39,741
43,238
Other creditors
25,659
65,345
195,426
246,738
A charge was filed with Companies House by Barclays Bank plc on 4 May 2016. The particulars include both fixed and floating charges with a negative pledge, which cover all property or undertaking of the company.
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans (secured)
7,457
18,345
8
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:
2023
2022
£
£
15,886
14,598
9
Related party transactions
During the year the company entered into transactions with related parties as follows:
Mr R F Merrick (director) who is a 50% shareholder in Beronwade Limited who rented a property to the company. Transactions in the year totalled £5,519 (2022: £2,147).
The amount owed to Beronwade Limited at 31 May 2023 is £34,247 (2022: £28,727).
Mr R F Merrick and Mr T F Merrick (directors) rented a property to the company, the amount paid in the year by the company was £12,818 (2022: £11,427).
MERRICKS SOLICITORS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 7 -
10
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Loans
2.50
50,123
140,364
2,189
(138,476)
54,200
50,123
140,364
2,189
(138,476)
54,200