Company Registration No. 09960870 (England and Wales)
LAURUS LAW LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
PAGES FOR FILING WITH REGISTRAR
LAURUS LAW LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
LAURUS LAW LIMITED
BALANCE SHEET
AS AT
31 MARCH 2021
31 March 2021
- 1 -
2021
2020
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
56,493
129,077
Tangible assets
4
35,210
42,184
91,703
171,261
Current assets
Stocks
35,030
74,482
Debtors
5
487,130
343,465
Cash at bank and in hand
615,226
172,390
1,137,386
590,337
Creditors: amounts falling due within one year
6
(1,224,813)
(408,634)
Net current (liabilities)/assets
(87,427)
181,703
Total assets less current liabilities
4,276
352,964
Creditors: amounts falling due after more than one year
7
(549,442)
(308,000)
Net (liabilities)/assets
(545,166)
44,964
Capital and reserves
Called up share capital
9
5,797
4,810
Share premium account
76,861
44,290
Profit and loss reserves
(627,824)
(4,136)
Total equity
(545,166)
44,964
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 March 2021 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.
T
he 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.
LAURUS LAW LIMITED
BALANCE SHEET (CONTINUED)
AS AT
31 MARCH 2021
31 March 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 22 December 2021 and are signed on its behalf by:
R. Carroll
Director
Company Registration No. 09960870
LAURUS LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2021
- 3 -
1
Accounting policies
Company information
Laurus Law Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
30 Dukes Place, London, EC3A 7LP.
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 a
mounts
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.
1.2
Going concern
The directors have assessed to the best of their abilities the current and potential future impact of the
true
Covid-19 global pandemic, to ensure that the company can maintain it's day-to-day activities. Although the company experienced significant disruption during the year as a result of restrictions imposed it was able to continue its business growth and was able to support the business and ensure it had adequate working capital through the provision of director loans, securing of a Coronavirus Business Interruption Loan and obtaining support through the government job retention scheme where appropriate.
The results for the 2021 financial year have separately also been significantly impacted by a large one-off settlement cost to a third party, together with the associated legal fees. This is a large reason behind the overall loss for the year of £623,688
,
which means the company has a net liability position of £545,166 as at the balance sheet date.
The company does however have sufficient working capital to meet these net liabilities, with a large portion of the liabilities being repayable in over 1 year and further
director loan
s
provided for working capital in April 2021
. The company has continued to grow since the year-end and is now profitable, meaning that the company is confident of reversing this net liability position within the next 12-24 months.
At the time of approving the financial statements, the directors
therefore
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 amounts recoverable for the services provided to clients, excluding value added tax, under contractual obligations which are performed gradually over time.
If, at the Balance Sheet date, completion of contractual obligations is dependent on external factors (and thus outside the control of the company), then revenue is recognised only when the event occurs. In such cases, costs incurred up to the Balance sheet date are carried forward as work in progress.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
LAURUS LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 4 -
1.5
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
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:
Development costs
Over 3 years
1.6
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:
Office equipment and furniture
25% 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
.
1.7
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
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.
LAURUS LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 5 -
1.9
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 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.
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 and
bank loans, 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
paymen
ts 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.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts 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.
1.10
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.
1.11
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.
LAURUS LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
1
Accounting policies
(Continued)
- 6 -
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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
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 lease
s
asset are consumed.
1.15
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
41
30
LAURUS LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 7 -
3
Intangible fixed assets
Other
£
Cost
At 1 April 2020
288,404
Additions
35,326
At 31 March 2021
323,730
Amortisation and impairment
At 1 April 2020
159,327
Amortisation charged for the year
107,910
At 31 March 2021
267,237
Carrying amount
At 31 March 2021
56,493
At 31 March 2020
129,077
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2020
76,982
Additions
10,174
At 31 March 2021
87,156
Depreciation and impairment
At 1 April 2020
34,798
Depreciation charged in the year
17,148
At 31 March 2021
51,946
Carrying amount
At 31 March 2021
35,210
At 31 March 2020
42,184
LAURUS LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 8 -
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
247,189
180,395
Corporation tax recoverable
34,015
114,469
Other debtors
104,869
48,601
386,073
343,465
Deferred tax asset
98,654
484,727
343,465
2021
2020
Amounts falling due after more than one year:
£
£
Other debtors
2,403
Total debtors
487,130
343,465
6
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans
15,000
Trade creditors
41,777
44,782
Taxation and social security
286,496
142,733
Other creditors
881,540
221,119
1,224,813
408,634
7
Creditors: amounts falling due after more than one year
2021
2020
£
£
Bank loans and overdrafts
285,000
Other creditors
264,442
308,000
549,442
308,000
Bank loans payable as at the year-end of £300,000 relates to a Barclays Floating Rate Basis Coronavirus Business Interruption Loan, with interest charged at 3.79% per annum. The loan is secured by a debenture granted by the company to Barclays Security Trustee Limited, with a fixed and floating charge covering all of the assets of the company.
LAURUS LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 9 -
8
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2021
2020
Balances:
£
£
Accelerated capital allowances
(13,210)
-
Tax losses
111,864
-
98,654
-
2021
Movements in the year:
£
Liability at 1 April 2020
-
Credit to profit or loss
(98,654)
Asset at 31 March 2021
(98,654)
The deferred tax asset set out above is partly expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.
9
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5,797
4,810
5,797
4,810
During the year a further
987
ordinary £1 shares were issued.
10
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:
2021
2020
£
£
Total commitments
186,353
149,219
LAURUS LAW LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2021
- 10 -
11
Directors' transactions
Other debtors includes £8
,
2
00
(20
20
: £
Nil
) which was loaned by the company to director Mr S Gasser. £7,000 of this balance has an agreement in place, with the loan to be repaid over 18 months from April 2021 onwards, with interest charged at 6%. £2,403 of this debtor is therefore recoverable in over 1 year.
Other creditors includes £
8
8,000 (20
20
: £
238,000
) loaned by director Mr N Addyman
,
£70,
00
0 (20
20
: £
70,000
) loaned by director Mr J Hollingsworth
, £46,400 (2020: £Nil) loaned by director Mr R Carroll and £60,042 (2020: £Nil) loaned by director Mr J Chadwick
to the company respectively. These loans are repayable in over 1 year and have therefore been classified as such.
I
n the
current
year
,
interest of 4.8% (10% between July 2020 - November 2020) was charged to the company on loans from directors. Interest paid in the year to directors on these loans amounted to £
33,944
(20
20
: £
Nil
).
Included within consultancy fees are
amounts
pa
yable
to director Mr R Gray of £3,900 (2020: £4,800)
for consultancy related services
.
12
Parent company
The directors consider that there is no controlling party.