Yendall Hunter Limited - Limited company accounts 18.2

REGISTERED NUMBER: 09410777 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2019

FOR

YENDALL HUNTER LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

7

Statement of Financial Position

8

Statement of Changes in Equity

9

Statement of Cash Flows

10

Notes to the Statement of Cash Flows

11

Notes to the Financial Statements

12

DIRECTORS:

M J Hunter

A E Yendall

REGISTERED OFFICE:

75 Park Lane

Croydon

Surrey

CR9 1XS

REGISTERED NUMBER:

09410777 (England and Wales)

AUDITORS:

Kings Mill Partnership

Chartered Accountants and Statutory Auditors

75 Park Lane

Croydon

Surrey

CR9 1XS

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

REVIEW OF BUSINESS

The results for the year and financial position of the company are shown in the audited financial statements.

The company has experienced continued sales growth with turnover increasing by 11.2% from £10.8 million

(year-ended 31 March 2018) to £12.0 million (year ended 31 March 2019). During the same time period, operating

profit increased by 18.7% from £5.8 million to £6.8 million.

The key financial performance indicators are as follows:

1. Turnover: £12.0 million (2017-18 £10.8 million)

2. Monthly turnover: £1.0 million (2017-18 £0.9 million)

3. Operating Expenses: £5.2 million (2017-18 £5.0 million)

4. Operating Profit: £6.8 million (2017-18 £5.8 million)

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks faced by the company include exposure to bad debts, reduction in new expert appointments and

staffing risks related to retaining highly specialized consulting staff. The company manages its bad debt exposure

through prompt billing and continuous monitoring of receivables and collections. The company continues to solidify its

reputation in the marketplace by expanding its established network of law firms and corporate clients. Recruitment, staff

retention and professional development are treated as a priority at all levels.

FUTURE DEVELOPMENT

The company plans to continue its strategy of organic growth and is actively developing a second generation of expert

witnesses and work-winners to maintain and expand the flow of expert appointments in the long-term.

ON BEHALF OF THE BOARD:

A E Yendall - Director

18 December 2019

The directors present their report with the financial statements of the company for the year ended 31 March 2019.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of construction disputes and project advisory

consultancy services.

DIVIDENDS

Interim dividends of £20,000 and £24,000 per share were paid on 7th June 2018 and 16th November 2018 respectively.

The director's recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2019 will be £4,400,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2018 to the date of this report.

M J Hunter

A E Yendall

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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

company and of the profit or loss of the company 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;

-	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

company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken

as a director in order to make himself aware of any relevant audit information and to establish that the company's

auditors are aware of that information.

AUDITORS

The auditors, Kings Mill Partnership, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A E Yendall - Director

18 December 2019

Opinion

We have audited the financial statements of Yendall Hunter Limited (the 'company') for the year ended 31 March 2019

which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in

Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 Financial Reporting Standard 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 company's affairs as at 31 March 2019 and of its 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 Auditors' 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 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 in the Strategic

Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors

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.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit,

we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the 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 Statement of Directors' Responsibilities set out on page three, 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 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 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 company or to cease operations, or have no realistic

alternative but to do so.

Auditors' 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 a Report of the Auditors 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 www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Romit Basu FCA (Senior Statutory Auditor)

for and on behalf of Kings Mill Partnership

Chartered Accountants and Statutory Auditors

75 Park Lane

Croydon

Surrey

CR9 1XS

18 December 2019

TURNOVER

12,017,365

10,810,108

Administrative expenses

5,172,905

5,041,807

OPERATING PROFIT

4

6,844,460

5,768,301

Interest receivable and similar income

1,370

1,163

PROFIT BEFORE TAXATION

6,845,830

5,769,464

Tax on profit

5

1,342,410

1,205,427

PROFIT FOR THE FINANCIAL YEAR

5,503,420

4,564,037

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

5,503,420

4,564,037

FIXED ASSETS

Tangible assets

7

55,033

93,474

CURRENT ASSETS

Debtors

8

5,925,255

5,492,070

Cash at bank

4,271,038

3,191,134

10,196,293

8,683,204

CREDITORS

Amounts falling due within one year

9

2,025,144

1,649,593

NET CURRENT ASSETS

8,171,149

7,033,611

TOTAL ASSETS LESS CURRENT LIABILITIES

8,226,182

7,127,085

PROVISIONS FOR LIABILITIES

11

7,476

11,799

NET ASSETS

8,218,706

7,115,286

CAPITAL AND RESERVES

Called up share capital

12

100

100

Retained earnings

13

8,218,606

7,115,186

SHAREHOLDERS' FUNDS

8,218,706

7,115,286

The financial statements were approved by the Board of Directors on 18 December 2019 and were signed on its behalf by:

A E Yendall - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2017

100

4,951,149

4,951,249

Changes in equity

Dividends

-

(2,400,000

)

(2,400,000

)

Total comprehensive income

-

4,564,037

4,564,037

Balance at 31 March 2018

100

7,115,186

7,115,286

Changes in equity

Dividends

-

(4,400,000

)

(4,400,000

)

Total comprehensive income

-

5,503,420

5,503,420

Balance at 31 March 2019

100

8,218,606

8,218,706

Cash flows from operating activities

Cash generated from operations

1

5,981,359

4,793,871

Amount paid to group undertakings

(6,403

)

(200,152

)

Amount received from group undertakings

645,131

-

Tax paid

(1,135,810

)

(1,204,395

)

Net cash from operating activities

5,484,277

3,389,324

Cash flows from investing activities

Purchase of tangible fixed assets

(5,743

)

(25,276

)

Interest received

1,370

1,163

Net cash from investing activities

(4,373

)

(24,113

)

Cash flows from financing activities

Equity dividends paid

(4,400,000

)

(2,400,000

)

Net cash from financing activities

(4,400,000

)

(2,400,000

)

Increase in cash and cash equivalents

1,079,904

965,211

Cash and cash equivalents at beginning of year

2

3,191,134

2,225,923

Cash and cash equivalents at end of year

2

4,271,038

3,191,134

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2019

2018

£

£

Profit before taxation

6,845,830

5,769,464

Depreciation charges

44,184

47,719

Finance income

(1,370

)

(1,163

)

6,888,644

5,816,020

Increase in trade and other debtors

(1,078,316

)

(1,148,995

)

Increase in trade and other creditors

171,031

126,846

Cash generated from operations

5,981,359

4,793,871

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of

these Statement of Financial Position amounts:

Year ended 31 March 2019

31.3.19

1.4.18

£

£

Cash and cash equivalents

4,271,038

3,191,134

Year ended 31 March 2018

31.3.18

1.4.17

£

£

Cash and cash equivalents

3,191,134

2,225,923

1.	STATUTORY INFORMATION

Yendall Hunter Limited is a private company, limited by shares , registered in England and Wales. The

company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The

Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party

transactions with parent companies within the group, being a wholly owned subsidiary.

Turnover

Turnover is the amount derived from ordinary activities, and is measured at the fair value of the consideration

received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the

rendering of services.

Turnover from the rendering of services is recognised by the value of services provided under contracts to the

extent that there is a right to consideration and is recorded at the value of the consideration due. Where a contract

has only been partially completed at the balance sheet date, turnover payments are received from clients in

advance of services provided, the amounts are recorded as deferred income and included as part of the creditors

due within one year. Unbilled revenue on individual client assignments is included as unbilled amounts for client

work within debtors.

Tangible fixed assets

Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and

accumulated impairment losses.

Depreciation is provided at the following annual rate in order to write off each asset over its estimated useful life:

Plant and machinery

20% straight line

Fixtures and fittings

20% straight line

Computer equipment

33.33% straight line

Leasehold improvements

20% straight line

At each statement of financial position date, the company reviews the carrying amount of its tangible fixed assets

to determine whether there is any indication that any items have suffered an impairment loss. If any such

indication exists, the recoverable amount of an 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 the asset, the company

estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive

Income, except to the extent that it relates to items recognised in other comprehensive income or directly in

equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or

substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the

statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from

those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that

have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the

timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they

will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of

exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the

operating result.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension

scheme are charged to profit or loss in the period to which they relate.

Trade and other debtors

Trade and other debtors that are receivable within one year and do not constitute a financing transaction are

recorded at the undiscounted amount expected to be received, net of impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term

highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of

financial position, bank overdrafts are shown within borrowings or current liabilities.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the

effective interest method unless the effect of discounting would be immaterial, in which case they are stated at

cost.

3.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

2,339,667

2,123,443

Social security costs

304,371

275,304

Other pension costs

34,133

31,476

2,678,171

2,430,223

The average number of employees during the year was as follows:

2019

2018

Full time employees

17

16

2019

2018

£

£

Directors' remuneration

500,000

500,000

Information regarding the highest paid director is as follows:

2019

2018

£

£

Emoluments etc

250,000

250,000

4.	OPERATING PROFIT

The operating profit is stated after charging:

2019

2018

£

£

Depreciation - owned assets

44,184

47,719

Auditors' remuneration

11,000

10,000

Auditors' remuneration - non-audit work

2,300

3,055

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2019

2018

£

£

Current tax:

UK corporation tax

1,310,260

1,102,315

Foreign taxes paid

36,473

104,395

Total current tax

1,346,733

1,206,710

Deferred tax

(4,323

)

(1,283

)

Tax on profit

1,342,410

1,205,427

UK corporation tax has been charged at 19% .

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is

explained below:

2019

2018

£

£

Profit before tax

6,845,830

5,769,464

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2018 - 19%)

1,300,708

1,096,198

Effects of:

Expenses not deductible for tax purposes

2,248

1,852

Depreciation in excess of capital allowances

7,304

4,265

Foreign tax paid

36,473

104,395

Deferred tax

(4,323

)

(1,283

)

Total tax charge

1,342,410

1,205,427

6.

DIVIDENDS

2019

2018

£

£

Ordinary shares of £1 each

Interim

4,400,000

2,400,000

7.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

Computer

leasehold

machinery

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 April 2018

77,854

69,537

23,446

38,151

208,988

Additions

-

-

-

5,743

5,743

At 31 March 2019

77,854

69,537

23,446

43,894

214,731

DEPRECIATION

At 1 April 2018

46,477

36,264

14,068

18,705

115,514

Charge for year

15,688

13,907

4,690

9,899

44,184

At 31 March 2019

62,165

50,171

18,758

28,604

159,698

NET BOOK VALUE

At 31 March 2019

15,689

19,366

4,688

15,290

55,033

At 31 March 2018

31,377

33,273

9,378

19,446

93,474

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

4,666,230

3,557,672

Amounts owed by group undertakings

54,869

700,000

Other debtors

80,236

79,189

Unbilled amounts for client work

1,063,689

1,058,635

Prepayments

60,231

96,574

5,925,255

5,492,070

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade creditors

79,784

69,591

Corporation tax

610,260

399,337

Social security and other taxes

458,079

403,660

Other creditors

322,217

245,822

Amounts owed to group undertakings

-

6,403

Accruals and deferred income

554,804

524,780

2,025,144

1,649,593

10.	LEASING AGREEMENTS

The minimum uncancellable lease payments which the company is committed to make are:

2018

2017

£

£

Payments due:

Not later than one year

108,416

111,470

Later than one year and not later than five years

-

108,416

Later than five years

-

-

108,416

219,886

11.	PROVISIONS FOR LIABILITIES

2019

2018

£

£

Deferred tax

7,476

11,799

Deferred

tax

£

Balance at 1 April 2018

11,799

Provided during year

(4,323

)

Balance at 31 March 2019

7,476