A_&_J_WEALTH_MANAGEMENT_L - Accounts


Company Registration No. 5105933 (England and Wales)
A & J WEALTH MANAGEMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
A & J WEALTH MANAGEMENT LIMITED
COMPANY INFORMATION
Directors
Mr G S Jones
Mr J S S Posgate
Mr G J Frisby
(Appointed 7 August 2018)
Mr S Hartley
(Appointed 7 August 2018)
Mr J E Moore
(Appointed 7 August 2018)
Secretary
Mrs L J Furnell
Company number
5105933
Registered office
Sawfords
Bigfrith Lane
Cookham Dean
Maidenhead
Berks.
England
SL6 9PH
Auditor
The Fish Partnership Audit Services
The Mill House
Boundary Road
Loudwater
High Wycombe
Bucks.
United Kingdom
HP10 9QN
A & J WEALTH MANAGEMENT LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 33
A & J WEALTH MANAGEMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2019
- 1 -

The directors present the strategic report for the year ended 31 March 2019.

Fair review of the business

The company provides discretionary management of investment portfolios for private clients, charities and institutional clients in the United Kingdom. It’s subsidiary company Redwood Business Insurance Services Limited provides non discretionary management for private clients and has a division engaged in the provision of general insurance for commercial and private clients.

Malcolm Purrell Financial Planning Limited was acquired during the year and provides non discretionary management for private clients.

During the year we strengthened our corporate governance by the appointment of two non executive directors.

A five year business plan was produced during the year and as a result a new business development director has been appointed on 1st July 2019

Principal risks and uncertainties

Given the reliance on periodic asset based fees for revenue generation, the risks and uncertainties of the business are directly correlated with risks and uncertainties in financial markets. There are regularly reviewed by our investment committee and changes to the funds made as appropriate.

In October 2017 the global markets started a downward trend but had recovered by the end of March to their previous level as reflected in our funds performance.

Key performance indicators

The results of the Group for the year to 31st March 2019 compared to the year ended 31st March 2018 reflect increased revenues derived from resilient markets, however increased costs resulted in a reduction in profits. Profit before taxation of £786,001 (2018: Profit of £982,524) based upon revenue of £3,698,995 (2018: £3,431,089) delivered to the shareholders a profit after tax of £605,886 (2018: £756,342). The shareholders’ funds in the Group total £1,256,006 (2018: £1,651,280).

The capital adequacy cover for the company as at 31st March 2019 was £509,546 (2018: £434,992).

The performance of the Group during the year was affected by the downturn in global markets in October 2018 but which had recovered by the end of March 2019. The majority of the Group’s income is related directly to the value of funds under management. Nevertheless the results are encouraging.

One of the most important measures of the Group is Funds Under Management (“FUM”) as the vast amount of revenue is generated from periodic asset-based fees(98%), FUM at 31st March 2019 was £338M of which £48M was acquired on the purchase of MPFP Limited (2018: £254M).

The capital adequacy cover for the company as at 31st March 2019 was 1.03 times the required liquid capital (2018: 2.75 times).

During the year the company bought back 2,265 £1 ordinary shares at a cost of £900,000 and on 24th September 2018 acquired 100% of MPFP Limited and the wholly owned subsidiary Malcolm Purrell Financial Planning Limited a financial services company.

On behalf of the board

Mr G S Jones
Director
12 July 2019
A & J WEALTH MANAGEMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2019
- 2 -

The directors present their annual report and financial statements for the year ended 31 March 2019.

Principal activities

The principal activity of the company and group continued to be that of carrying out the business of an independent financial advisor and pensions administrator.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr G S Jones
Mr J S S Posgate
Mr G B Vald
(Resigned 3 April 2018)
Mr G J Frisby
(Appointed 7 August 2018)
Mr S Hartley
(Appointed 7 August 2018)
Mr J E Moore
(Appointed 7 August 2018)
Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £101,160. The directors do not recommend payment of a further dividend.

Auditor

The Fish Partnership Audit Services were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr G S Jones
Director
12 July 2019
A & J WEALTH MANAGEMENT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2019
- 3 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

  •     select suitable accounting policies and then apply them consistently;

  •     make judgements and accounting estimates that are reasonable and prudent;

  •     state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

  •     prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

A & J WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF A & J WEALTH MANAGEMENT LIMITED
- 4 -
Opinion

We have audited the financial statements of A & J Wealth Management Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2019 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

  • give a true and fair view of the state of the group's and the parent company's affairs as at 31 March 2019 and of the group's profit for the year then ended;

  • have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

  • have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

  • the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

  • the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's or the parent company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

A & J WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A & J WEALTH MANAGEMENT LIMITED
- 5 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

  • the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

  • the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

  • adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

  • the parent company financial statements are not in agreement with the accounting records and returns; or

  • certain disclosures of directors' remuneration specified by law are not made; or

  • we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Other matters which we are required to address

The financial statements of A & J Wealth Management Limited for the corresponding year ended 31 March 2018 were unaudited.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

A & J WEALTH MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A & J WEALTH MANAGEMENT LIMITED
- 6 -
Martin Sheehy (Senior Statutory Auditor)
for and on behalf of The Fish Partnership Audit Services
12 July 2019
Statutory Auditor
The Mill House
Boundary Road
Loudwater
High Wycombe
Bucks.
United Kingdom
HP10 9QN
A & J WEALTH MANAGEMENT LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2019
- 7 -
2019
2018
Notes
£
£
Turnover
3
3,698,995
3,431,089
Cost of sales
(20,307)
(22,436)
Gross profit
3,678,688
3,408,653
Administrative expenses
(2,879,051)
(2,525,946)
Other operating income
1,350
-
Operating profit
4
800,987
882,707
Interest receivable and similar income
8
2,222
12
Interest payable and similar expenses
9
(31,863)
(20,504)
Amounts written off investments
10
14,655
120,309
Profit before taxation
786,001
982,524
Tax on profit
11
(180,115)
(226,182)
Profit for the financial year
605,886
756,342
Profit for the financial year is all attributable to the owners of the parent company.
A & J WEALTH MANAGEMENT LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2019
- 8 -
2019
2018
£
£
Profit for the year
605,886
756,342
Other comprehensive income
-
-
Total comprehensive income for the year
605,886
756,342
Total comprehensive income for the year is all attributable to the owners of the parent company.
A & J WEALTH MANAGEMENT LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2019
31 March 2019
- 9 -
2019
2018
Notes
£
£
£
£
Fixed assets
Goodwill
13
730,578
454,744
Tangible assets
14
830,374
818,947
Investments
15
1
1
1,560,953
1,273,692
Current assets
Debtors
18
1,257,437
995,902
Investments
19
296,085
1,067,301
Cash at bank and in hand
297,494
261,800
1,851,016
2,325,003
Creditors: amounts falling due within one year
20
(1,982,425)
(1,344,977)
Net current (liabilities)/assets
(131,409)
980,026
Total assets less current liabilities
1,429,544
2,253,718
Creditors: amounts falling due after more than one year
21
(172,500)
(601,095)
Provisions for liabilities
24
(1,038)
(1,343)
Net assets
1,256,006
1,651,280
Capital and reserves
Called up share capital
26
13,968
16,233
Share premium account
272,298
272,298
Capital redemption reserve
3,525
1,260
Profit and loss reserves
966,215
1,361,489
Total equity
1,256,006
1,651,280
The financial statements were approved by the board of directors and authorised for issue on 12 July 2019 and are signed on its behalf by:
12 July 2019
Mr G S Jones
Director
A & J WEALTH MANAGEMENT LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2019
31 March 2019
- 10 -
2019
2018
Notes
£
£
£
£
Fixed assets
Tangible assets
14
820,469
809,962
Investments
15
1,430,558
991,388
2,251,027
1,801,350
Current assets
Debtors
18
1,004,362
759,136
Investments
19
296,085
1,067,301
Cash at bank and in hand
47,289
106
1,347,736
1,826,543
Creditors: amounts falling due within one year
20
(1,656,275)
(1,022,840)
Net current (liabilities)/assets
(308,539)
803,703
Total assets less current liabilities
1,942,488
2,605,053
Creditors: amounts falling due after more than one year
21
(172,500)
(544,845)
Net assets
1,769,988
2,060,208
Capital and reserves
Called up share capital
26
13,968
16,233
Share premium account
272,298
272,298
Capital redemption reserve
3,525
1,260
Profit and loss reserves
1,480,197
1,770,417
Total equity
1,769,988
2,060,208

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £710,940 (2018 - £842,129 profit).

The financial statements were approved by the board of directors and authorised for issue on 12 July 2019 and are signed on its behalf by:
12 July 2019
Mr G S Jones
Director
Company Registration No.
A & J WEALTH MANAGEMENT LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2019
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2017
17,493
272,298
-
1,304,697
1,594,488
Year ended 31 March 2018:
Profit and total comprehensive income for the year
-
-
-
756,342
756,342
Dividends
12
-
-
-
(199,550)
(199,550)
Own shares acquired
-
-
-
(500,000)
(500,000)
Redemption of shares
26
(1,260)
-
1,260
-
-
Balance at 31 March 2018
16,233
272,298
1,260
1,361,489
1,651,280
Year ended 31 March 2019:
Profit and total comprehensive income for the year
-
-
-
605,886
605,886
Dividends
12
-
-
-
(101,160)
(101,160)
Own shares acquired
-
-
-
(900,000)
(900,000)
Redemption of shares
26
(2,265)
-
2,265
-
-
Balance at 31 March 2019
13,968
272,298
3,525
966,215
1,256,006
A & J WEALTH MANAGEMENT LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2019
- 12 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2017
17,493
272,298
-
1,627,838
1,917,629
Year ended 31 March 2018:
Profit and total comprehensive income for the year
-
-
-
842,129
842,129
Dividends
12
-
-
-
(199,550)
(199,550)
Own shares acquired
-
-
-
(500,000)
(500,000)
Redemption of shares
26
(1,260)
-
1,260
-
-
Balance at 31 March 2018
16,233
272,298
1,260
1,770,417
2,060,208
Year ended 31 March 2019:
Profit and total comprehensive income for the year
-
-
-
710,940
710,940
Dividends
12
-
-
-
(101,160)
(101,160)
Own shares acquired
-
-
-
(900,000)
(900,000)
Redemption of shares
26
(2,265)
-
2,265
-
-
Balance at 31 March 2019
13,968
272,298
3,525
1,480,197
1,769,988
A & J WEALTH MANAGEMENT LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2019
- 13 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
31
1,576,416
800,761
Interest paid
(31,863)
(20,504)
Income taxes paid
(130,731)
(193,788)
Net cash inflow from operating activities
1,413,822
586,469
Investing activities
Purchase of intangible assets
(381,523)
-
Proceeds on disposal of intangibles
-
698,027
Purchase of tangible fixed assets
(37,796)
(59,755)
Proceeds on disposal of fixed asset investments
-
(1)
Proceeds from other investments and loans
785,871
(902,200)
Interest received
222
12
Dividends received
2,000
-
Net cash generated from/(used in) investing activities
368,774
(263,917)
Financing activities
Proceeds from issue of shares
2,265
1,260
Redemption of shares
(2,265)
(1,260)
Purchase of own shares
(900,000)
(500,000)
Repayment of bank loans
(604,378)
304,764
Payment of finance leases obligations
(5,666)
(6,466)
Dividends paid to equity shareholders
(101,160)
(199,550)
Net cash used in financing activities
(1,611,204)
(401,252)
Net increase/(decrease) in cash and cash equivalents
171,392
(78,700)
Cash and cash equivalents at beginning of year
126,102
204,802
Cash and cash equivalents at end of year
297,494
126,102
Relating to:
Cash at bank and in hand
297,494
261,800
Bank overdrafts included in creditors payable within one year
-
(135,698)
A & J WEALTH MANAGEMENT LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2019
- 14 -
2019
2018
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
32
1,415,051
440,861
Interest paid
(31,817)
(20,458)
Income taxes paid
(108,914)
(149,169)
Net cash inflow from operating activities
1,274,320
271,234
Investing activities
Proceeds on disposal of intangibles
-
698,027
Purchase of tangible fixed assets
(33,936)
(55,293)
Proceeds on disposal of subsidiaries
(439,170)
-
Proceeds on disposal of fixed asset investments
-
(1)
Proceeds from other investments and loans
785,871
(902,200)
Dividends received
207,000
161,000
Net cash generated from/(used in) investing activities
519,765
(98,467)
Financing activities
Proceeds from issue of shares
2,265
1,260
Redemption of shares
(2,265)
(1,260)
Purchase of own shares
(900,000)
(500,000)
Repayment of bank loans
(604,378)
304,764
Payment of finance leases obligations
(5,666)
(6,466)
Dividends paid to equity shareholders
(101,160)
(199,550)
Net cash used in financing activities
(1,611,204)
(401,252)
Net increase/(decrease) in cash and cash equivalents
182,881
(228,485)
Cash and cash equivalents at beginning of year
(135,592)
92,893
Cash and cash equivalents at end of year
47,289
(135,592)
Relating to:
Cash at bank and in hand
47,289
106
Bank overdrafts included in creditors payable within one year
-
(135,698)
A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
- 15 -
1
Accounting policies
Company information

A & J Wealth Management Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of A & J Wealth Management Limited and all of its subsidiaries.

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.

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
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated financial statements incorporate those of A & J Wealth Management Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 March 2019. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Malcolm Purrell Financial Planning Limited has been included in the group financial statements using the purchase method of accounting. Accordingly, the group profit and loss account and statement of cash flows include the results and cash flows of Malcolm Purrell Financial Planning Limited for the six month period from its acquisition on 24 September 2018. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition.

A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 16 -
1.3
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.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for 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 the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business 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.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

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:

Freehold land and buildings
Straight line over 50 years
Leasehold improvements
Fixtures and fittings
Straight line over 4 years
Computers
Straight line over 3-4 years
Motor vehicles
Straight line over 4 years

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 recognised in the profit and loss account.

Freehold buildings are depreciated to write down the cost less residual value over their remaining useful life by equal instalments. The freehold building is maintained to such a high standard that its fair value is not less than its cost no depreciation has been charged. The amount of depreciation that would have been charged for the year is not material.

A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 17 -
1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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 not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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.

A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 18 -
1.9
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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 publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 group 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 group after deducting all of its liabilities.

A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

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 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.

 

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 20 -
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 if, and only if, there is 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
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 21 -
3
Turnover and other revenue
2019
2018
£
£
Turnover analysed by class of business
Commission received
3,009,480
2,707,015
Portfolio management fees
140,588
301,001
Insurance brokerage fees
548,927
344,485
-
78,588
3,698,995
3,431,089
2019
2018
£
£
Other significant revenue
Interest income
222
12
Dividends received
2,000
-
4
Operating profit
2019
2018
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
26,368
38,348
Amortisation of intangible assets
105,689
143,744
Operating lease charges
90,604
69,461
5
Auditor's remuneration
2019
2018
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
42,720
-
For other services
Taxation compliance services
2,400
-
Other taxation services
2,868
-
All other non-audit services
13,566
-
18,834
-
A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 22 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2019
2018
2019
2018
Number
Number
Number
Number
38
33
24
24

Their aggregate remuneration comprised:

Group
Company
2019
2018
2019
2018
£
£
£
£
Wages and salaries
1,359,851
1,192,958
837,882
798,241
Social security costs
145,760
131,414
87,458
86,160
Pension costs
134,117
102,298
58,478
51,715
1,639,728
1,426,670
983,818
936,116
7
Directors' remuneration
2019
2018
£
£
Remuneration for qualifying services
82,393
146,425
8
Interest receivable and similar income
2019
2018
£
£
Interest income
Interest on bank deposits
222
12
Income from fixed asset investments
Income from shares in group undertakings
2,000
-
Total income
2,222
12

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
222
12
A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 23 -
9
Interest payable and similar expenses
2019
2018
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
18,902
6,517
Interest on finance leases and hire purchase contracts
3,125
3,125
Other interest on financial liabilities
9,790
10,816
31,817
20,458
Other finance costs:
Other interest
46
46
Total finance costs
31,863
20,504
10
Amounts written off investments
2019
2018
£
£
Gain on disposal of current asset investments
14,655
120,309
11
Taxation
2019
2018
£
£
Current tax
UK corporation tax on profits for the current period
180,420
225,846
Deferred tax
Origination and reversal of timing differences
(305)
336
Total tax charge
180,115
226,182
A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
11
Taxation
(Continued)
- 24 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2019
2018
£
£
Profit before taxation
786,001
982,524
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2018: 19.00%)
149,340
186,680
Tax effect of expenses that are not deductible in determining taxable profit
14,443
16,957
Permanent capital allowances in excess of depreciation
(3,191)
5,892
Amortisation on assets not qualifying for tax allowances
19,523
16,457
-
196
Taxation charge
180,115
226,182
12
Dividends
2019
2018
£
£
Interim paid
101,160
199,550
13
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2018
1,116,180
Additions - separately acquired
381,523
Disposals
(250,000)
At 31 March 2019
1,247,703
Amortisation and impairment
At 1 April 2018
661,436
Amortisation charged for the year
105,689
Disposals
(250,000)
At 31 March 2019
517,125
Carrying amount
At 31 March 2019
730,578
At 31 March 2018
454,744
A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
13
Intangible fixed assets
(Continued)
- 25 -
Company
Goodwill
£
Cost
At 1 April 2018
250,000
Disposals
(250,000)
At 31 March 2019
-
Amortisation and impairment
At 1 April 2018
250,000
Disposals
(250,000)
At 31 March 2019
-
Carrying amount
At 31 March 2019
-
At 31 March 2018
-
14
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improve-ments
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2018
765,349
12,444
216,331
114,761
80,650
1,189,535
Additions
-
-
7,862
29,934
-
37,796
At 31 March 2019
765,349
12,444
224,193
144,695
80,650
1,227,331
Depreciation and impairment
At 1 April 2018
-
12,444
177,541
99,955
80,649
370,589
Depreciation charged in the year
-
-
14,076
12,292
-
26,368
At 31 March 2019
-
12,444
191,617
112,247
80,649
396,957
Carrying amount
At 31 March 2019
765,349
-
32,576
32,448
1
830,374
At 31 March 2018
765,349
-
38,791
14,806
1
818,947
A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
14
Tangible fixed assets
(Continued)
- 26 -
Company
Freehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2018
765,349
137,545
114,761
80,650
1,098,305
Additions
-
6,600
27,336
-
33,936
At 31 March 2019
765,349
144,145
142,097
80,650
1,132,241
Depreciation and impairment
At 1 April 2018
-
107,740
99,955
80,649
288,344
Depreciation charged in the year
-
11,586
11,842
-
23,428
At 31 March 2019
-
119,326
111,797
80,649
311,772
Carrying amount
At 31 March 2019
765,349
24,819
30,300
1
820,469
At 31 March 2018
765,349
29,806
14,806
1
809,962

Freehold land and buildings with a carrying amount of £765,349 (2018 - £765,349) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

15
Fixed asset investments
Group
Company
2019
2018
2019
2018
Notes
£
£
£
£
Investments in subsidiaries
16
-
-
1,430,557
991,387
Unlisted investments
1
1
1
1
1
1
1,430,558
991,388
Movements in fixed asset investments
Group
Investments other than loans
£
Cost or valuation
At 1 April 2018 and 31 March 2019
1
Carrying amount
At 31 March 2019
1
At 31 March 2018
1
A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
15
Fixed asset investments
(Continued)
- 27 -
Movements in fixed asset investments
Company
Shares in group undertakings
Other investments other than loans
Total
£
£
£
Cost or valuation
At 1 April 2018
991,387
1
991,388
Additions
439,170
-
439,170
At 31 March 2019
1,430,557
1
1,430,558
Carrying amount
At 31 March 2019
1,430,557
1
1,430,558
At 31 March 2018
991,387
1
991,388
16
Subsidiaries

Details of the company's subsidiaries at 31 March 2019 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office key
shares held
Direct
Indirect
Redwood Business Insurance Services Limited
1
Insurance brokers and Independent Financial Advisors
Ordinary
100.00
0
Malcolm Purrell Financial Planning Limited
1
Independent Financial Advisors
Ordinary
100.00
0
MPFP Limited
1
Dormant
Ordinary
100.00
0
Registered Office addresses:
1
Sawfords, Bigfrith Lane, Cookham Dean, Maidenhead, Berks, England, SL6 9PH
17
Financial instruments
Group
Company
2019
2018
2019
2018
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,143,396
935,644
928,478
712,969
Equity instruments measured at cost less impairment
1
1
1
1
Instruments measured at fair value through profit or loss
296,085
1,067,301
296,085
1,067,301
Carrying amount of financial liabilities
Measured at amortised cost
1,834,750
1,670,232
1,592,346
1,345,134
A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 28 -
18
Debtors
Group
Company
2019
2018
2019
2018
Amounts falling due within one year:
£
£
£
£
Trade debtors
20,234
44,745
19,965
44,745
Amounts owed by group undertakings
-
-
9,811
-
Other debtors
1,123,162
890,899
898,702
668,224
Prepayments and accrued income
114,041
60,258
75,884
46,167
1,257,437
995,902
1,004,362
759,136
19
Current asset investments
Group
Company
2019
2018
2019
2018
£
£
£
£
Unlisted investments
296,085
1,067,301
296,085
1,067,301
20
Creditors: amounts falling due within one year
Group
Company
2019
2018
2019
2018
Notes
£
£
£
£
Bank loans and overdrafts
22
-
195,231
-
195,231
Obligations under finance leases
23
36,736
42,403
36,736
42,403
Trade creditors
26,145
33,534
21,996
30,417
Amounts owed to group undertakings
-
-
61,717
3,000
Corporation tax payable
275,339
225,650
207,814
185,653
Other taxation and social security
44,836
50,190
28,615
36,898
Other creditors
1,490,354
732,151
1,200,360
474,688
Accruals and deferred income
109,015
65,818
99,037
54,550
1,982,425
1,344,977
1,656,275
1,022,840
21
Creditors: amounts falling due after more than one year
Group
Company
2019
2018
2019
2018
Notes
£
£
£
£
Bank loans and overdrafts
22
-
544,845
-
544,845
Other creditors
172,500
56,250
172,500
-
172,500
601,095
172,500
544,845
A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 29 -
22
Loans and overdrafts
Group
Company
2019
2018
2019
2018
£
£
£
£
Bank loans
-
604,378
-
604,378
Bank overdrafts
-
135,698
-
135,698
-
740,076
-
740,076
Payable within one year
-
195,231
-
195,231
Payable after one year
-
544,845
-
544,845

The long-term loans are secured by fixed charges over the company's freehold property and by debenture.

23
Finance lease obligations
Group
Company
2019
2018
2019
2018
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
36,736
42,403
36,736
42,403

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 2 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

24
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2019
2018
Group
£
£
Accelerated capital allowances
1,038
1,343
The company has no deferred tax assets or liabilities.
A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
24
Deferred taxation
(Continued)
- 30 -
Group
Company
2019
2019
Movements in the year:
£
£
Liability at 1 April 2018
1,343
-
Credit to profit or loss
(305)
-
Liability at 31 March 2019
1,038
-

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

25
Retirement benefit schemes
2019
2018
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
134,117
102,298

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

26
Share capital
Group and company
2019
2018
Ordinary share capital
£
£
Issued and fully paid
8,333 Ordinary 'A' £1 shares of £1 each
8,333
8,333
827 Ordinary 'B' £1 shares of £1 each
827
827
4,808 (2018: 7,073) Ordinary 'C' £1 shares of £1 each
4,808
7,073
13,968
16,233
A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
26
Share capital
(Continued)
- 31 -

 

 

 

The share capital of the company is made up of ordinary A shares of £1 each, ordinary B shares of £1 each and ordinary C shares of £1 each and shall rank pari pasu in all respects, save as set out in the articles:

 

Voting:

 

- A and B shares give the holder the right to attend, speak and vote at all general meetings.

 

- C shares do not give the holder the right to attend, speak or vote at any general meeting.

 

Income:

 

- Dividends or other distributions made to shareholders are made to the holders of A and B shares only.

 

- C shares have no right to receive any dividend or other distribution.

 

 

Prior to a special resolution made on 16th November 2018 B shares had the right to receive dividend or other distribution but did not hold voting rights.

 

 

 

Reconciliation of movements during the year:
"A" Shares
"B" Shares
"C" Shares
Number
Number
Number
At 1 April 2018
8,333
827
7,073
Purchase of own shares
-
-
(2,265)
At 31 March 2019
8,333
827
4,808
27
Share Options

As at the 31 March 2019 the company had granted share options under a 2011 Option Scheme in respect of 275 Ordinary Shares (Option Shares) of £1 each in the company. The EMI options were granted subject to the EMI legislation over ordinary shares in the company and can be exercised: (i) in the event of a flotation or change in control; or (ii) unconditionally, subject to performance criteria being met.

 

As at the 31 March 2019 the company had granted share options under a 2016 Option Scheme in respect of 1,075 Ordinary Shares (Option Shares) of £1 each in the company. The EMI options were granted subject to the EMI legislation over ordinary shares in the company and can be exercised: (i) in the event of a flotation or change in control; or (ii) unconditionally, subject to the sole discretion of the Board.

 

No share options have been exercised during the previous years or the current year. The total value of the existing options is not considered to be material to the accounts and hence has not been recognised.

A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 32 -
28
Pillar 3 Risk Disclosure

The Pillar 3 disclosure of A & J Wealth Management Limited as required by the FCA’s “Prudential Sourcebook for Banks, Building Societies and Investment Firms” (BIPRU) specifically BIPRU 11.3.3 R. This follows the Capital Requirements Directive (“CRD”) which represents the European Union’s application of the Basel Capital Accord. The regulatory aim of the disclosures is to improve market discipline.

 

The Pillar 3 Disclosure is publicly available and may be found on the company Website at https://www.ajwealth-management.com/

29
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2019
2018
2019
2018
£
£
£
£
Within one year
119,920
110,845
43,375
51,193
Between two and five years
48,848
124,988
17,625
61,000
168,768
235,833
61,000
112,193
31
Cash generated from group operations
2019
2018
£
£
Profit for the year after tax
605,886
756,342
Adjustments for:
Taxation charged
180,115
226,182
Finance costs
31,863
20,504
Investment income
(2,222)
(12)
Amortisation and impairment of intangible assets
105,689
143,744
Depreciation and impairment of tangible fixed assets
26,368
38,348
Gain on sale of investments
(14,655)
(120,309)
Movements in working capital:
(Increase) in debtors
(261,535)
(693,681)
Increase in creditors
904,907
429,643
Cash generated from operations
1,576,416
800,761
A & J WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 33 -
32
Cash generated from operations - company
2019
2018
£
£
Profit for the year after tax
710,940
842,129
Adjustments for:
Taxation charged
131,075
185,849
Finance costs
31,817
20,458
Investment income
(207,000)
(161,000)
Amortisation and impairment of intangible assets
-
57,126
Depreciation and impairment of tangible fixed assets
23,428
35,496
Gain on sale of investments
(14,655)
(120,309)
Movements in working capital:
(Increase) in debtors
(245,226)
(613,931)
Increase in creditors
984,672
195,043
Cash generated from operations
1,415,051
440,861
2019-03-312018-04-01falseCCH SoftwareCCH Accounts Production 2019.301Mr G S JonesMr J S S PosgateMr G B ValdMr G J FrisbyMr S HartleyMr J E MooreMrs L J Furnell51059332018-04-012019-03-315105933bus:Director12018-04-012019-03-315105933bus:Director22018-04-012019-03-315105933bus:Director42018-04-012019-03-315105933bus:Director52018-04-012019-03-315105933bus:Director62018-04-012019-03-315105933bus:CompanySecretary12018-04-012019-03-315105933bus:Director32018-04-012019-03-315105933bus:RegisteredOffice2018-04-012019-03-315105933bus:Consolidated2019-03-3151059332019-03-3151059332018-03-315105933core:LandBuildingscore:OwnedOrFreeholdAssets2019-03-315105933core:FurnitureFittings2019-03-315105933core:ComputerEquipment2019-03-315105933core:MotorVehicles2019-03-315105933core:LandBuildingscore:OwnedOrFreeholdAssets2018-03-315105933core:FurnitureFittings2018-03-315105933core:ComputerEquipment2018-03-315105933core:MotorVehicles2018-03-315105933core:ShareCapital2019-03-315105933core:ShareCapital2018-03-315105933core:SharePremium2019-03-315105933core:SharePremium2018-03-315105933core:CapitalRedemptionReserve2019-03-315105933core:CapitalRedemptionReserve2018-03-315105933core:SharePremium2017-03-3151059332017-04-012018-03-31510593312017-04-012018-03-3151059332017-03-315105933core:Goodwill2018-04-012019-03-315105933core:LandBuildingscore:OwnedOrFreeholdAssets2018-04-012019-03-315105933core:FurnitureFittings2018-04-012019-03-315105933core:ComputerEquipment2018-04-012019-03-315105933core:MotorVehicles2018-04-012019-03-315105933core:Goodwill2018-03-315105933core:LandBuildingscore:OwnedOrFreeholdAssets2018-03-315105933core:FurnitureFittings2018-03-315105933core:ComputerEquipment2018-03-315105933core:MotorVehicles2018-03-3151059332018-03-315105933core:UnlistedNon-exchangeTraded2019-03-315105933core:UnlistedNon-exchangeTraded2018-03-315105933core:Subsidiary12018-04-012019-03-315105933core:Subsidiary22018-04-012019-03-315105933core:Subsidiary32018-04-012019-03-315105933core:Subsidiary112018-04-012019-03-315105933core:Subsidiary212018-04-012019-03-315105933core:Subsidiary312018-04-012019-03-315105933core:Subsidiary122018-04-012019-03-315105933core:Subsidiary222018-04-012019-03-315105933core:Subsidiary322018-04-012019-03-315105933core:CurrentFinancialInstruments2019-03-315105933core:CurrentFinancialInstruments2018-03-315105933core:Non-currentFinancialInstruments2018-03-315105933core:Non-currentFinancialInstruments12019-03-315105933core:WithinOneYear2019-03-315105933core:WithinOneYear2018-03-315105933bus:PrivateLimitedCompanyLtd2018-04-012019-03-315105933bus:FRS1022018-04-012019-03-315105933bus:Audited2018-04-012019-03-315105933bus:ConsolidatedGroupCompanyAccounts2018-04-012019-03-315105933bus:FullAccounts2018-04-012019-03-31xbrli:purexbrli:sharesiso4217:GBP