Northwest Law Services Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 01623494 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 August 2019

for

Northwest Law Services Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

L M Evans

P L Roberts

SECRETARY:

P L Roberts

REGISTERED OFFICE:

Queens House

Queens Road

Chester

Cheshire

CH1 3BQ

REGISTERED NUMBER:

01623494 (England and Wales)

ACCOUNTANTS:

Voisey & Co

Chartered Accountants

8 Winmarleigh Street

Warrington

Cheshire

WA1 1JW

FIXED ASSETS

Tangible assets

4

29,450

27,379

CURRENT ASSETS

Stocks

576,834

462,158

Debtors

5

397,502

851,675

Cash in hand

229

127

974,565

1,313,960

CREDITORS

Amounts falling due within one year

6

(753,973

)

(1,081,210

)

NET CURRENT ASSETS

220,592

232,750

TOTAL ASSETS LESS CURRENT LIABILITIES

250,042

260,129

CREDITORS

Amounts falling due after more than one year

7

(9,822

)

-

PROVISIONS FOR LIABILITIES

(4,851

)

(4,954

)

NET ASSETS

235,369

255,175

CAPITAL AND RESERVES

Called up share capital

9

100

100

Retained earnings

10

235,269

255,075

SHAREHOLDERS' FUNDS

235,369

255,175

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 19 March 2020 and were signed on its behalf by:

L M Evans - Director

P L Roberts - Director

1.	STATUTORY INFORMATION

Northwest Law Services 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" including the provisions of Section 1A "Small Entities" 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 wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the company'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.

The key assumptions concerning the future and other key sources of estimation include uncertainties at the

reporting date, which may have a risk of causing a material adjustment to the carrying amounts of assets and

liabilities within the next financial periods, are discussed below.

Turnover

Revenue from the sale of services shall be recognised when all the following conditions have been satisfied:

- the entity has transferred to the buyer the significant risks and rewards of ownership of the services;

- the entity retains neither continuing managerial involvement to the degree usually associated with ownership

nor effective control over the services sold;

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction will flow to the entity;

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is not recognised if its recoverability is considered to be uncertain.

Revenue for services rendered is recorded in the profit & loss when the service has been provided to the

customer.

Tangible fixed assets

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

Fixtures and fittings

-

15% on reducing balance

Computer equipment

-

33% on cost

Stocks and work in progress

Work in progress is stated as the recoverable amount for work undertaken not invoiced at the year end date . This

is calculated at applicable charge out out rates adjusted for expected recovery.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 balance sheet date.

Deferred tax

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

sheet 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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element

of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

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.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with bank,

other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

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 statement of financial position 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 net 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 costs 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 publically traded and whose fair values cannot be measured

reliably are measured at cost less impairment.

Short-term employee benefits

The costs of the 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.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of

the company.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 25 (2018 - 25 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 September 2018

195,650

84,038

279,688

Additions

2,744

15,105

17,849

At 31 August 2019

198,394

99,143

297,537

DEPRECIATION

At 1 September 2018

171,104

81,205

252,309

Charge for year

12,685

3,093

15,778

At 31 August 2019

183,789

84,298

268,087

NET BOOK VALUE

At 31 August 2019

14,605

14,845

29,450

At 31 August 2018

24,546

2,833

27,379

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.19

31.8.18

£

£

Trade debtors

390,610

821,946

Other debtors

263

23,100

Prepayments

6,629

6,629

397,502

851,675

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.19

31.8.18

£

£

Bank loans and overdrafts

234,518

257,410

Hire purchase contracts

4,482

-

Amounts owed to group undertakings

110,146

432,456

Tax

60,473

69,925

Social security and other taxes

250,855

314,418

Accrued expenses

93,499

7,001

753,973

1,081,210

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.8.19

31.8.18

£

£

Hire purchase contracts

9,822

-

8.	SECURED DEBTS

The following secured debts are included within creditors:

31.8.19

31.8.18

£

£

Bank overdrafts

159,519

257,410

Hire purchase contracts

14,304

-

173,823

257,410

The bank overdraft is subject to an unscheduled mortgage debenture incorporating a fixed and floating charge

over all current and future assets of the company.

The hire purchase agreements are secured against the asset to which the finance agreement relates.

9.	CALLED UP SHARE CAPITAL

Allotted and issued:

Number:

Class:

Nominal

31.8.19

31.8.18

value:

£

£

100

Share capital 1

£1

100

100

10.

RESERVES

Retained

earnings

£

At 1 September 2018

255,075

Profit for the year

260,194

Dividends

(280,000

)

At 31 August 2019

235,269

11.	ULTIMATE CONTROLLING PARTY

The controlling party is Northwest Law Services (Holdings)Limited.

The ultimate controlling party is NWL (Group) Limted.