Laven Partners Limited - Limited company accounts 20.1

REGISTERED NUMBER: 10915221 (England and Wales)

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 30th April 2020

for

Laven Partners Limited

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Consolidated Statement of Comprehensive Income

5

Consolidated Balance Sheet

6

Company Balance Sheet

7

Consolidated Statement of Changes in Equity

8

Company Statement of Changes in Equity

9

Consolidated Cash Flow Statement

10

Notes to the Consolidated Financial Statements

11

DIRECTORS:

J A de Lavenere Lussan

L Guo

Ms I Sloan

REGISTERED OFFICE:

7th Floor (North)

11 Old Jewry

London

EC2R 8DU

REGISTERED NUMBER:

10915221 (England and Wales)

AUDITORS:

Meyer Williams

Chartered Accountants

& Statutory Auditors

Stag House

Old London Road

Hertford

Hertfordshire

SG13 7LA

The directors present their report with the financial statements of the company and the group for the year ended 30th April 2020.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of the provision of consultancy, marketing and advisory services.

DIVIDENDS

No dividends will be distributed for the year ended 30th April 2020.

DIRECTOR

J A de Lavenere Lussan held office during the whole of the period from 1st May 2019 to the date of this report.

Other changes in directors holding office are as follows:

L Guo and Ms I Sloan were appointed as directors after 30th April 2020 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Meyer Williams, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J A de Lavenere Lussan - Director

28th May 2021

Opinion

We have audited the financial statements of Laven Partners Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30th April 2020 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and 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 group's and of the parent company affairs as at 30th April 2020 and of the group's 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 group 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 group'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 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 two, 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 group's and the parent 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 group or the parent 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.

S Heaney (Senior Statutory Auditor)

for and on behalf of Meyer Williams

Chartered Accountants

& Statutory Auditors

Stag House

Old London Road

Hertford

Hertfordshire

SG13 7LA

28th May 2021

TURNOVER

3

2,972,268

1,925,995

Cost of sales

49,882

50,544

GROSS PROFIT

2,922,386

1,875,451

Administrative expenses

2,388,552

1,778,636

533,834

96,815

Other operating income

4,234

224

OPERATING PROFIT

5

538,068

97,039

Interest receivable and similar income

10,000

9,785

548,068

106,824

Interest payable and similar expenses

6

18,048

1,688

PROFIT BEFORE TAXATION

530,020

105,136

Tax on profit

7

67,438

(32,722

)

PROFIT FOR THE FINANCIAL YEAR

462,582

137,858

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

462,582

137,858

Profit attributable to:

Owners of the parent

390,025

78,163

Non-controlling interests

72,557

59,695

462,582

137,858

Total comprehensive income attributable to:

Owners of the parent

390,025

78,163

Non-controlling interests

72,557

59,695

462,582

137,858

FIXED ASSETS

Intangible assets

10

1,268,363

1,329,051

Tangible assets

11

45,579

24,369

Investments

12

-

-

1,313,942

1,353,420

CURRENT ASSETS

Debtors

13

1,589,145

1,180,866

Cash at bank

228,528

275,370

1,817,673

1,456,236

CREDITORS

Amounts falling due within one year

14

1,409,879

1,243,987

NET CURRENT ASSETS

407,794

212,249

TOTAL ASSETS LESS CURRENT LIABILITIES

1,721,736

1,565,669

CREDITORS

Amounts falling due after more than one year

15

125,000

291,667

NET ASSETS

1,596,736

1,274,002

CAPITAL AND RESERVES

Called up share capital

20

110

110

Retained earnings

1,625,236

1,235,211

SHAREHOLDERS' FUNDS

1,625,346

1,235,321

NON-CONTROLLING INTERESTS

(28,610

)

38,681

TOTAL EQUITY

1,596,736

1,274,002

The financial statements were approved by the Board of Directors and authorised for issue on 28th May 2021 and were signed on its behalf by:

J A de Lavenere Lussan - Director

L Guo - Director

FIXED ASSETS

Intangible assets

10

-

-

Tangible assets

11

-

-

Investments

12

110

11,023

110

11,023

CURRENT ASSETS

Debtors

13

21,235

14,125

Cash at bank

4,744

1,368

25,979

15,493

CREDITORS

Amounts falling due within one year

14

579,895

375,808

NET CURRENT LIABILITIES

(553,916

)

(360,315

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(553,806

)

(349,292

)

CREDITORS

Amounts falling due after more than one year

15

125,000

291,667

NET LIABILITIES

(678,806

)

(640,959

)

CAPITAL AND RESERVES

Called up share capital

20

110

110

Retained earnings

(678,916

)

(641,069

)

SHAREHOLDERS' FUNDS

(678,806

)

(640,959

)

Company's loss for the financial year

(37,847

)

(591,069

)

The financial statements were approved by the Board of Directors and authorised for issue on 28th May 2021 and were signed on its behalf by:

J A de Lavenere Lussan - Director

L Guo - Director

Called up

share

Retained

Non-controlling

Total

capital

earnings

Total

interests

equity

£

£

£

£

£

Balance at 1st May 2018

110

1,207,048

1,207,158

61,552

1,268,710

Changes in equity

Total comprehensive income

-

78,163

78,163

59,695

137,858

Dividends

-

(50,000

)

(50,000

)

-

(50,000

)

110

1,235,211

1,235,321

121,247

1,356,568

Drawings from subsidiary LLP

-

-

-

(82,566

)

(82,566

)

Balance at 30th April 2019

110

1,235,211

1,235,321

38,681

1,274,002

Changes in equity

Total comprehensive income

-

390,025

390,025

72,557

462,582

110

1,625,236

1,625,346

111,238

1,736,584

Drawings from subsidiary LLP

-

-

-

(139,848

)

(139,848

)

Balance at 30th April 2020

110

1,625,236

1,625,346

(28,610

)

1,596,736

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st May 2018

110

-

110

Changes in equity

Dividends

-

(50,000

)

(50,000

)

Total comprehensive income

-

(591,069

)

(591,069

)

Balance at 30th April 2019

110

(641,069

)

(640,959

)

Changes in equity

Total comprehensive income

-

(37,847

)

(37,847

)

Balance at 30th April 2020

110

(678,916

)

(678,806

)

Cash flows from operating activities

Cash generated from operations

23

539,643

732,443

Interest paid

(18,048

)

(1,688

)

Net cash from operating activities

521,595

730,755

Cash flows from investing activities

Purchase of intangible fixed assets

(234,173

)

(900,716

)

Purchase of tangible fixed assets

(37,749

)

(14,674

)

Interest received

10,000

266

Net cash from investing activities

(261,922

)

(915,124

)

Cash flows from financing activities

New loans in year

-

500,000

Loan repayments in year

(166,667

)

(41,667

)

Amount withdrawn by directors

-

(3,177

)

Payments to non controlling interests

(139,848

)

(82,566

)

Equity dividends paid

-

(50,000

)

Net cash from financing activities

(306,515

)

322,590

(Decrease)/increase in cash and cash equivalents

(46,842

)

138,221

Cash and cash equivalents at beginning of year

24

275,370

137,149

Cash and cash equivalents at end of year

24

228,528

275,370

1.	STATUTORY INFORMATION

Laven Partners 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 General 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The group has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirement of paragraph 33.7.

Basis of consolidation

The consolidated financial statements have been prepared using both acquisition accounting and the merger accounting.

The merger accounting method of consolidation was used on the business combination of the parent company and its subsidiaries that occurred in the year to 30 April 2018. The ownership of the purchaser and the acquiree did not change, and, with all requirements prescribed under FRS 102 for the use of merger accounting being met, no goodwill arose and reserves were treated as though the post merger structure had always been in place.

Goodwill has arisen on an acquisition during the year to 30 April 2019 as shown in note 10.

Going concern

The directors have a reasonable expectation that the group will have adequate resources to continue in operational existence for the foreseeable future. In making this assessment the directors have considered both the net asset position on the balance sheet and the impact of the current coronavirus outbreak ("COVID-19") on the company, its employees, clients and third-party suppliers.

The directors consider that as the group has made significant profits in the year and seen a large inflow of cash, it will be able to continue to meet its debts as they fall due.

While there is considerable uncertainty about the impact that COVID-19 will have on the global economy the directors do not believe it impacts the use of the going concern basis of preparation nor does it cast significant doubts about the group's ability to continue as a going concern for a period of twelve months from the date of the financial statements being authorised for issue.

The directors consider the group to be sufficiently robust that its operations will not be significantly affected and that it will be able to generate and maintain sufficient levels of cash in order to meet its financial commitments for at least the period under review. The group therefore continues to use the going concern basis in preparing its financial statements.

Significant judgements and estimates

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the period. The nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had a significant effect on amounts recognised in the financial statements:

a)

Management make estimates of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, the factors considered include the current credit rating of the debtor, the ageing profile of debtors and historical experience.

b)

Management make estimates of the useful life of tangible fixed assets and apply an appropriate depreciation policy. Impairment reviews are undertaken regularly and assets are written down as necessary.

c)

Management estimates the useful life of intangible fixed assets and applies an appropriate amortisation policy. Impairment reviews are undertaken regularly and assets are written down as necessary.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of CPA Audit LLP in 2019, is being amortised over its estimated useful life of 10 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation or impairment losses.

Development costs relating to internally generated software projects are capitalised when all of the following can be demonstrated:

a) The development project is technically feasible

b) The company has an intention to complete and use or sell the product and the ability to do so

c) The product will generate future economic benefits

d) The company has sufficient technical and financial resources to complete the product's development

e) Expenditure relating to the development project can be measured reliably

Development costs include staff costs, other direct expenses and an appropriate proportion of overheads. Development costs are amortised on a straight line basis over each project's estimated useful life which is considered to be 5 years. Amortisation begins when the software product is available to be launched to its market.

Tangible fixed assets

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is calculated so as to write off the cost of an asset, less its residual value, over their estimated useful lives as follows:

Leasehold property improvements

- over the period of the lease

Office equipment

- 50% on cost

Fixtures and fittings

- 25% on cost

Financial instruments

Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of the future payments, and subsequently at amortised cost using the effective interest method; Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate, which is an approximation, of the amount that the group would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the statement of financial position when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 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.

Research and development

Costs relating to research and development projects are capitalised and carried forward until the product is available to its market. Research and development costs are written off to expenses over the estimated useful life of the product once the product has been launched. Development costs include staff costs, other direct expenses and an appropriate proportion of overheads.

Foreign currencies

Transactions in foreign currency are initially recorded in the entity's functional currency by applying the spot exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Investments

The subsidiary company's investment in its LLP subsidiary undertaking is included in the financial statements on an equity accounting basis at a value equal to its members' interest in the subsidiary's financial statements. Investments in subsidiary companies are included in the company financial statements at amortised cost.

Operating leases

Rentals payable under operating leases are charged to the profit and loss on a straight line basis over the lease term. Lease incentives are recognised over the lease term.

Cash and cash equivalents

For the purposes of the cash flow statement, cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk to changes in value.

Non controlling interests

Members' capital in the subsidiary of Laven (Consulting) Limited is treated as a liability as the LLP does not have any discretionary rights to withhold the repayment of capital to members. However, the non controlling interests in the consolidated balance sheet, representing minority members' interests in the LLP, are included in reserves in accordance with FRS 102.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by geographical market is given below:

30.4.20

30.4.19

£

£

United Kingdom

2,685,003

1,656,645

Europe

235,763

218,712

United States of America

24,628

25,638

Asia

26,874

25,000

2,972,268

1,925,995

4.	EMPLOYEES AND DIRECTORS

30.4.20

30.4.19

£

£

Wages and salaries

796,881

643,561

Social security costs

106,463

86,637

Other pension costs

19,248

12,477

922,592

742,675

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

30.4.20

30.4.19

Directors

1

1

Office staff

20

20

21

21

30.4.20

30.4.19

£

£

Director's remuneration

70,000

56,000

Director's pension contributions to money purchase schemes

2,100

1,458

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.4.20

30.4.19

£

£

Depreciation - owned assets

16,539

11,164

Goodwill amortisation

68,250

68,250

Development costs amortisation

226,611

226,611

Auditors' remuneration

15,910

17,500

Foreign exchange differences

(1,182

)

2,315

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.4.20

30.4.19

£

£

Bank loan interest

18,048

1,688

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

30.4.20

30.4.19

£

£

Deferred tax

67,438

(32,722

)

Tax on profit

67,438

(32,722

)