Orme & Slade Limited - Period Ending 2019-08-31

Registration number: 06271967

Orme & Slade Limited

Annual Report and Unaudited Financial Statements

for the Period from 1 July 2018 to 31 August 2019

Orme & Slade Limited

Contents

Company Information	1
Balance Sheet	2 to 3
Notes to the Financial Statements	4 to 11

Orme & Slade Limited

Company Information

Directors

M I Bowen M D Evans T J L Haggar L A Hollis P J James C M Jones D Sangster L A Smith

Registered office

Natwest Bank Chambers The Homend Ledbury Herefordshire HR8 1AB

Accountants

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

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Orme & Slade Limited

(Registration number: 06271967)
Balance Sheet as at 31 August 2019

	Note	31 August 2019  £	30 June 2018  £
Fixed assets
Intangible assets	4	-	121,500
Tangible assets	5	61,727	68,088
Other financial assets	6	-	210,000
		61,727	399,588
Current assets
Debtors	7	1,012,608	447,243
Cash at bank and in hand		45,136	422,839
		1,057,744	870,082
Creditors: Amounts falling due within one year	8	(86,793)	(176,943)
Net current assets		970,951	693,139
Total assets less current liabilities		1,032,678	1,092,727
Provisions	9	(10,000)	(34,690)
Deferred tax liabilities		(2,501)	(4,133)
Net assets		1,020,177	1,053,904
Capital and reserves
Called up share capital		1	1
Profit and loss account		1,020,176	1,053,903
Total equity		1,020,177	1,053,904

For the financial period ending 31 August 2019 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the period in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

The notes on pages 4 to 11 form an integral part of these financial statements.
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Orme & Slade Limited

(Registration number: 06271967)
Balance Sheet as at 31 August 2019

Approved and authorised by the Board on 28 May 2020 and signed on its behalf by:
 

.........................................

D Sangster
Director

The notes on pages 4 to 11 form an integral part of these financial statements.
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Orme & Slade Limited

Notes to the Financial Statements for the Period from 1 July 2018 to 31 August 2019

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Natwest Bank Chambers
The Homend
Ledbury
Herefordshire
HR8 1AB

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.

The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.

Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Judgements

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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

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Orme & Slade Limited

Notes to the Financial Statements for the Period from 1 July 2018 to 31 August 2019

Key sources of estimation uncertainty

Amounts recoverable on contracts - The process of assessing amounts recoverable on contracts requires various estimates and judgements to be made. Fee earners are required to record time spent on client assignments and this is used as the basis for the amounts recoverable on contracts. A year end report of time on all assignments is circulated to fee earners to identify likely recoverable amounts. This amount is then discounted to reflect the recovery rate of the firm. The carrying amount is £97,867 (2018 - £111,439).

Work in progress - This is valued at the lower of cost and net realisable value. Cost is represented by labour and other direct costs incurred in bringing the matter to its present state of completion. Net realisable value is the estimated fee charge less further costs expected to be incurred to completion. The carrying amount is £81,167 (2018 - £45,557).

Bad debt provision - Due to the nature of the business, there are high levels of trade receivables at the year end and, therefore, a risk that some of these balances may be irrecoverable. A bad debt review is carried out, where debts are assessed and provided against when the recoverability of these balances is considered to be uncertain. The carrying amount is £42,228 (2018 - £Nil).

Revenue recognition

Fee income represents the fair value of services provided during the year on client assignments. Fair value reflects the amounts expected to be recoverable from clients based on time spent, skills provided and expenses incurred, and exclude VAT. Income is recognised as contract activity progresses and the right to consideration is secured, except where the final outcome cannot be assessed with reasonable certainty.

Income in respect of contingent fee assignments is recognised in the period when the contingent event occurs and collectability of the fee is assured.

Unbilled income on individual client assignments is included as amounts recoverable on contracts within debtors.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold land and buildings	Over 50 years

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Orme & Slade Limited

Notes to the Financial Statements for the Period from 1 July 2018 to 31 August 2019

Leasehold land and buildings	25% reducing balance per annum
Office equipment	33% of cost per annum
Fixtures & fittings	10% reducing balance per annum

Intangible assets

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Goodwill	Over 20 years

Investments

Investments held as fixed assets are stated at historical cost less provision for any diminution in value.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.

Provisions

Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

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Orme & Slade Limited

Notes to the Financial Statements for the Period from 1 July 2018 to 31 August 2019

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial Instruments

Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.

 Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

 Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.

A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.

The recoverable amount of goodwill is derived from measurement of the present value of the future cash flows of the cash-generating units ('CGUs') of which the goodwill is a part. Any impairment loss in respect of a CGU is allocated first to the goodwill attached to that CGU, and then to other assets within that CGU on a pro-rata basis.

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Orme & Slade Limited

Notes to the Financial Statements for the Period from 1 July 2018 to 31 August 2019

Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. Where a reversal of impairment occurs in respect of a CGU, the reversal is applied first to the assets (other than goodwill) of the CGU on a pro-rata basis and then to any goodwill allocated to that CGU.

For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.

Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.

3

Staff numbers

The average number of persons employed by the company (including directors) during the period, was as follows:

	1 July 2018 to 31 August 2019  No.	Year ended 30 June 2018  No.
Average number of employees	27	27

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Orme & Slade Limited

Notes to the Financial Statements for the Period from 1 July 2018 to 31 August 2019

4

Intangible assets

	Goodwill  £
Cost
At 1 July 2018	270,000
At 31 August 2019	270,000
Amortisation
At 1 July 2018	148,500
Amortisation charge	121,500
At 31 August 2019	270,000
Carrying amount
At 31 August 2019	-
At 30 June 2018	121,500

5

Tangible assets

	Freehold land and buildings £	Long leasehold land and buildings £	Fixtures and fittings £	Office equipment £	Total £
Cost
At 1 July 2018	57,500	24,435	41,678	66,054	189,667
Additions	-	-	-	1,385	1,385
At 31 August 2019	57,500	24,435	41,678	67,439	191,052
Depreciation
At 1 July 2018	11,500	22,491	25,483	62,104	121,578
Charge for the year	1,342	567	1,889	3,949	7,747
At 31 August 2019	12,842	23,058	27,372	66,053	129,325
Carrying amount
At 31 August 2019	44,658	1,377	14,306	1,386	61,727
At 30 June 2018	46,000	1,944	16,195	3,949	68,088

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Orme & Slade Limited

Notes to the Financial Statements for the Period from 1 July 2018 to 31 August 2019

6

Investments held as fixed assets

	Financial assets
Cost
At 1 July 2018	210,000
Disposals	(210,000)
At 31 August 2019	-

The investment represented the company's share in R & G Properties (Ledbury) LLP, an LLP in which D A Rushton is a member.

7

Debtors

	31 August 2019  £	30 June 2018  £
Trade debtors	68,254	124,996
Amounts owed by related parties	736,805	-
Other debtors	9,241	145,596
Prepayments	19,274	19,655
Work in progress	81,167	45,557
Amounts recoverable on contracts	97,867	111,439
	1,012,608	447,243

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Orme & Slade Limited

Notes to the Financial Statements for the Period from 1 July 2018 to 31 August 2019

8

Creditors

Creditors: amounts falling due within one year

	31 August 2019  £	30 June 2018  £
Due within one year
Trade creditors	-	4,693
Social security and other taxes	6,965	62,146
Other creditors	-	40,870
Accrued expenses	38,588	12,100
Corporation tax liability	41,240	57,134
	86,793	176,943

9

Provisions

	Dilapidations provision £	Client claims provision £	Onerous lease provision £	Total £
At 1 July 2018	7,500	11,000	16,190	34,690
Additional provisions	-	10,000	-	10,000
Decrease in existing provisions	(7,500)	(11,000)	(16,190)	(34,690)
At 31 August 2019	-	10,000	-	10,000

10

Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £7,531 (2018 - £34,158).

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