Company Registration No. SC181744 (Scotland)
FOCUS FINANCIAL MANAGEMENT (SCOTLAND) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2020
PAGES FOR FILING WITH REGISTRAR
FOCUS FINANCIAL MANAGEMENT (SCOTLAND) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
FOCUS FINANCIAL MANAGEMENT (SCOTLAND) LIMITED
BALANCE SHEET
AS AT 31 JANUARY 2020
31 January 2020
- 1 -
2020
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
3
65,293
165,171
Tangible assets
4
8,999
11,572
74,292
176,743
Current assets
Debtors
5
426,129
15,717
Cash at bank and in hand
19,568
306,682
445,697
322,399
Creditors: amounts falling due within one year
6
(68,614)
(90,540)
Net current assets
377,083
231,859
Total assets less current liabilities
451,375
408,602
Provisions for liabilities
(3,928)
(2,083)
Net assets
447,447
406,519
Capital and reserves
Called up share capital
7
500
500
Share premium account
24,500
24,500
Profit and loss reserves
422,447
381,519
Total equity
447,447
406,519
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 period ended 31 January 2020 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 period 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.
FOCUS FINANCIAL MANAGEMENT (SCOTLAND) LIMITED
BALANCE SHEET (CONTINUED)
AS AT 31 JANUARY 2020
31 January 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 17 November 2020 and are signed on its behalf by:
A G Manson
Director
Company Registration No. SC181744
FOCUS FINANCIAL MANAGEMENT (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2020
- 3 -
1
Accounting policies
Company information
Focus Financial Management (Scotland) Limited is a
private
company
limited by shares
incorporated in Scotland.
The registered office is
Gresham Chambers, 3rd Floor, 45 West Nile Street, Glasgow, G1 2PT.
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, 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.
The parent company is Intelligent Capital Holdings Limited, a company registered in Scotland with their registered office being Gresham Chambers 3rd Floor, 45 West Nile Street, Glasgow, G1 2PT.
1.2
Going concern
A
t the time of approving the financial statements
,
t
he directors a
re confident
that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
In their assessment of going concern, the directors have considered the implications of the Covid-19 pandemic. They believe it does not have a material impact on the company's going concern status.
1.3
Reporting period
On 23 July 2019 the company extended its accounting period from 31 December 2019 to 31 January 2020
to align with that of the rest of the group
. As a result the current period profit and loss account represents a 13 month period and is not directly comparable to the prior period.
1.4
Turnover
Turnover represents commission and fees earned.
1.5
Intangible fixed assets - goodwill
Intangible assets are measured at cost less any accumulated amortisation and impairment losses. Goodwill represents the amount paid in connection with the acquisition of a business in 2015. It is currently being amortised evenly over its expected useful life of 10 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:
Plant and equipment
33% reducing balance
Fixtures and fittings
15% reducing balance
FOCUS FINANCIAL MANAGEMENT (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 4 -
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
.
The carrying value of tangible fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.
1.7
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.
1.8
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.
Debtors
Debtors with no stated interest rate and payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in profit or loss.
Creditors
Creditors with no stated interest rate and payable within one year are recorded at transaction price.
1.9
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.
1.10
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.
FOCUS FINANCIAL MANAGEMENT (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
1
Accounting policies
(Continued)
- 5 -
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.
1.11
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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was 2 (2018 - 7
).
FOCUS FINANCIAL MANAGEMENT (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
- 6 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2019
364,560
Disposals
(134,363)
At 31 January 2020
230,197
Amortisation and impairment
At 1 January 2019
199,389
Amortisation charged for the period
26,586
Disposals
(61,071)
At 31 January 2020
164,904
Carrying amount
At 31 January 2020
65,293
At 31 December 2018
165,171
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2019 and 31 January 2020
54,402
Depreciation and impairment
At 1 January 2019
42,830
Depreciation charged in the period
2,573
At 31 January 2020
45,403
Carrying amount
At 31 January 2020
8,999
At 31 December 2018
11,572
5
Debtors
2020
2018
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
295,640
-
Other debtors
130,489
15,717
426,129
15,717
FOCUS FINANCIAL MANAGEMENT (SCOTLAND) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2020
- 7 -
6
Creditors: amounts falling due within one year
2020
2018
£
£
Corporation tax
58,432
20,966
Other taxation and social security
-
2,398
Other creditors
10,182
67,176
68,614
90,540
7
Called up share capital
2020
2018
£
£
Ordinary share capital
Issued and fully paid
500 Ordinary shares of £1 each
500
500
8
Financial commitments, guarantees and contingent liabilities
The company is party to a cross corporate guarantee between Intelligent Capital Holdings Limited, Intelligent Capital Group Limited, Intelligent Capital Limited and Intelligent Portfolios Limited. The guarantees and securities are against the sums drawn down, lent or otherwise utilised under the terms of the credit facilities offered to Intelligent Capital Ltd, or any of the above companies, by Clydesdale Bank PLC.
9
Events after the reporting date
During the period post year end as a result of the outbreak of Covid-19 there is an unprecedented level of uncertainty across the world. Despite this the directors do not believe these events will have a material impact on the financial statements of the company. The directors have also considered the potential implications on going concern and, despite any potential Covid-19 implications arising, do not believe these will have a material impact on the going concern status of the company.
10
Related party transactions
The directors are of the opinion that all related party transactions are conducted under normal market conditions and on an arm's length basis and therefore do not need to be disclosed under FRS 102 section 1A appendix C.