Pareto Financial Planning Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 06582775 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 March 2020

for

Pareto Financial Planning Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

J M Stevenson

G M Chantry

P Stones

S Carswell

R Percival

D Hardy-Dearness

REGISTERED OFFICE:

Level 7, Tower 12

The Avenue North

18-22 Bridge Street

Manchester

M3 3BZ

REGISTERED NUMBER:

06582775 (England and Wales)

ACCOUNTANTS:

Pareto Tax & Wealth LLP

Level 7, Tower 12,

18-22 Bridge Street,

Spinningfields,

Manchester

M3 3BZ

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

116,813

77,960

Investments

6

-

-

116,813

77,960

CURRENT ASSETS

Debtors

7

2,846,355

2,638,535

Cash at bank

392,882

36,236

3,239,237

2,674,771

CREDITORS

Amounts falling due within one year

8

809,520

678,792

NET CURRENT ASSETS

2,429,717

1,995,979

TOTAL ASSETS LESS CURRENT LIABILITIES

2,546,530

2,073,939

PROVISIONS FOR LIABILITIES

29,864

22,482

NET ASSETS

2,516,666

2,051,457

CAPITAL AND RESERVES

Called up share capital

100

100

Retained earnings

2,516,566

2,051,357

SHAREHOLDERS' FUNDS

2,516,666

2,051,457

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2020 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 and authorised for issue on 17 November 2020 and were signed on its behalf by:

J M Stevenson - Director

1.	STATUTORY INFORMATION

Pareto Financial Planning 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.

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 as modified by the revaluation of certain assets.

Turnover

Turnover is derived from commissions received and fees generated. Income is taken to the profit and loss

account on the following basis: Initial commission as and when the policy is in force. Renewal and fund based

commission is credited on a receipts basis and fee income as and when a sales invoice is generated.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of Pareto Financial Planning LLP, a LLP

controlled by J Stevenson and G Chantry, in 2010 is being amortised evenly over its estimated useful life of 5

years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost

less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets

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

Leasehold improvements

-

20% on cost

Furniture and fittings

-

20% on cost

Computer equipment

-

33% on cost

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

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.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 54 (2019 - 49 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2019

and 31 March 2020

1,200,000

AMORTISATION

At 1 April 2019

and 31 March 2020

1,200,000

NET BOOK VALUE

At 31 March 2020

-

At 31 March 2019

-

5.	TANGIBLE FIXED ASSETS

Furniture

Leasehold

and

Computer

improvements

fittings

equipment

Totals

£

£

£

£

COST

At 1 April 2019

80,817

87,173

122,734

290,724

Additions

-

44,407

43,357

87,764

At 31 March 2020

80,817

131,580

166,091

378,488

DEPRECIATION

At 1 April 2019

79,536

52,727

80,501

212,764

Charge for year

1,281

16,355

31,275

48,911

At 31 March 2020

80,817

69,082

111,776

261,675

NET BOOK VALUE

At 31 March 2020

-

62,498

54,315

116,813

At 31 March 2019

1,281

34,446

42,233

77,960

6.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

Additions

148,447

Impairments

(148,447

)

At 31 March 2020

-

NET BOOK VALUE

At 31 March 2020

-

During the year the company acquired 100% of the share capital of Watson Laurie Financial Services Limited.

The total value of the investment was impaired at 31 March 2020.

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.20

31.3.19

£

£

Trade debtors

402,673

363,070

Amounts owed by group undertakings

1,605,829

1,272,496

Other debtors

560,995

523,267

Directors' current accounts

77,420

274,985

Prepayments and accrued income

199,438

204,717

2,846,355

2,638,535

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.20

31.3.19

£

£

Bank loans and overdrafts

49,650

-

Trade creditors

123,252

170,590

Tax

209,160

168,486

Social security and other taxes

54,155

47,953

VAT

42,478

23,962

Other creditors

53,891

-

Accrued expenses

276,934

267,801

809,520

678,792

9.	OTHER FINANCIAL COMMITMENTS

At the 31 March 2020 the company had rental lease commitments of £183,558 per annum.

The remaining value of the commitments are shown to acknowledge an option for early termination at the end of

year 3:

Within 2 years

£367,116

Within 4 years

£699,197

10.	RELATED PARTY DISCLOSURES

At 31 March 2020 the directors owed the company a total of £77,420 (2019: £274,985).

The amount is included in debtors due within one year and is repayable on demand.

Interest is payable on the loan at 2.5% per annum.

At 31 March 2020 the company was owed £1,837 (2019: £3,522) by Pensionhelp Limited, a company controlled

by John Stevenson. The amount is included within trade debtors.

At 31 March 2020 the company was owed £285,000(2019: £336,030) by Millane Holdings Limited, a company

in which John Stevenson is a director and shareholder.

The amount is included in other debtors due within one year and was repaid on 4 September 2020.

At 31 March 2020 the company was owed £117,388 (2019: £73,830) by Pareto Properties LLP, an LLP

controlled by John Stevenson and George Chantry.

The amount is included in other debtors due within one year.

At 31 March 2020 the company was owed £1,605,829 (2019: £1,272,496) by Stechant Limited, the ultimate

parent company, controlled by John Stevenson and George Chantry.

At 31 March 2020 the company was owed £Nil (2019: £57,281) by Pareto Property Investments LLP, an LLP

controlled by John Stevenson.

The amount is included in other debtors due within one year.

At 31 March 2020 the company was owed £111,154 (2019: £7,005) by Lunar Investment Management Limited,

a company in which John Stevenson is a director and shareholder.

The amount is included in other debtors due within one year.

11.	ULTIMATE CONTROLLING PARTY

The immediate parent company is Stechant Limited, a company registered in England and Wales, and controlled

by John Stevenson and George Chantry.

At 31 March 2020 £1,605,829 (2019: £1,272,496) was due from Stechant Limited.