BLB Solicitors Limited - Period Ending 2020-03-31

Registration number: 10569111

Prepared for the registrar

BLB Solicitors Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 March 2020

BLB Solicitors Limited

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 9

BLB Solicitors Limited

Company Information

Directors

S A Bishop R G Bowater B A Dyer D Gazzard M A Hansom S J Jackson R E Lowes F C E Scott-Ashe C E M Smith A Atkinson

Registered office

Rodney House 5 Roundstone Street Trowbridge Wiltshire BA14 8DH

Bankers

Lloyds Bank plc 64 Fore Street Trowbridge BA14 8EU

Accountants

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

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BLB Solicitors Limited

(Registration number: 10569111)
Balance Sheet as at 31 March 2020

	Note	2020  £	2019  £
Fixed assets
Intangible assets	4	950,000	950,000
Tangible assets	5	1,076,026	1,085,365
		2,026,026	2,035,365
Current assets
Debtors	6	847,082	1,020,204
Cash at bank and in hand		436	392
		847,518	1,020,596
Creditors: Amounts falling due within one year	7	(1,449,011)	(1,733,518)
Net current liabilities		(601,493)	(712,922)
Total assets less current liabilities		1,424,533	1,322,443
Creditors: Amounts falling due after more than one year	7	(1,088,961)	(1,084,359)
Net assets		335,572	238,084
Capital and reserves
Called up share capital		100	100
Profit and loss account		335,472	237,984
Total equity		335,572	238,084

For the financial year ending 31 March 2020 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 year 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.

Approved and authorised by the Board on 21 January 2021 and signed on its behalf by:
 

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

S A Bishop
Director

The notes on pages 3 to 9 form an integral part of these financial statements.
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BLB Solicitors Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

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:
Rodney House
5 Roundstone Street
Trowbridge
Wiltshire
BA14 8DH

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.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

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

No significant judgements have been made by management in preparing these financial statements.

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BLB Solicitors Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

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 and work in progress estimates. At the year end, the work in progress per the system is adjusted for balances greater than 180 days old and a recovery rate is applied. The carrying amount is £225,035 (2019 - £232,047).

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 maybe irrecoverable. A bad debt review is carried out, where debts are assessed and provided against when recoverability of these balances is considered to be uncertain. The carrying amount is £101,058 (2019 - £84,555).

Revenue recognition

Turnover 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 excludes VAT.

Turnover is recognised as contract activity progresses and the right consideration is secured, except where the final outcome cannot be assessed with reasonable certainty.

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

Unbilled turnover on individual client assignments is included as amounts recoverable on long term 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 corporation 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
Furniture & equipment	25% reducing balance
Computer equipment	33% straight line

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BLB Solicitors Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

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.

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.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

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.

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BLB Solicitors Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

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.

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.
 

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BLB Solicitors Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

3

Staff numbers

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

	2020  No.	2019  No.
Average number of employees	99	98

4

Intangible assets

	Goodwill  £
Cost
At 1 April 2019	950,000
At 31 March 2020	950,000
Amortisation
Amortisation charge	-
At 31 March 2020	-
Carrying amount
At 31 March 2020	950,000
At 31 March 2019	950,000

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BLB Solicitors Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

5

Tangible assets

	Land and buildings £	Furniture & equipment  £	Computer Equipment  £	Total £
Cost
At 1 April 2019	1,045,409	56,313	8,934	1,110,656
Additions	-	1,430	-	1,430
At 31 March 2020	1,045,409	57,743	8,934	1,112,086
Depreciation
At 1 April 2019	-	18,226	7,065	25,291
Charge for the year	-	9,702	1,067	10,769
At 31 March 2020	-	27,928	8,132	36,060
Carrying amount
At 31 March 2020	1,045,409	29,815	802	1,076,026
At 31 March 2019	1,045,409	38,087	1,869	1,085,365

Included within the net book value of land and buildings above is £1,045,409 (2019 - £1,045,409) in respect of freehold land and buildings.
 

6

Debtors

	2020  £	2019  £
Trade debtors	585,814	731,552
Prepayments	36,233	56,605
Amounts recoverable on contracts	225,035	232,047
	847,082	1,020,204

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BLB Solicitors Limited

Notes to the Financial Statements for the Year Ended 31 March 2020

7

Creditors

Creditors: amounts falling due within one year

	Note	2020  £	2019  £
Due within one year
Loans and borrowings	8	781,587	1,163,692
Trade creditors		79,669	86,168
Social security and other taxes		307,015	239,508
Outstanding defined contribution pension costs		9,280	5,858
Other creditors		83,819	114,770
Accrued expenses		48,922	53,393
Corporation tax liability		138,719	70,129
		1,449,011	1,733,518
Due after one year
Loans and borrowings	8	1,088,961	1,084,359

8

Loans and borrowings

	2020 £	2019 £
Current loans and borrowings
Bank borrowings	630,415	939,117
Other borrowings	151,172	224,575
	781,587	1,163,692

	2020 £	2019 £
Non-current loans and borrowings
Other borrowings	1,088,961	1,084,359

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