Thursfields Legal Limited - Period Ending 2022-04-30

Thursfields Legal Limited

Contents

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

Thursfields Legal Limited

Company Information

Directors

M O'Hara G Burge A Gibb S Kitching-Miller J Warrilow T Edwards R Pettigrew P Rea P Chapman L Tipple R Webb

Registered office

9-10 The Tything Worcester Worcestershire WR1 1HD

Bankers

Lloyds Bank Plc 1st Floor 4 The Cross Worcester WR1 3PY

Accountants

Hazlewoods LLP Windsor House Bayshill Road Cheltenham GL50 3AT

Thursfields Legal Limited

(Registration number: 08829685)
Balance Sheet as at 30 April 2022

	Note	2022  £	2021  £
Fixed assets
Tangible assets	5	204,100	206,083
Investments	6	82,004	48,897
		286,104	254,980
Current assets
Debtors	7	2,509,183	2,452,862
Cash at bank and in hand		2,185,043	2,428,663
		4,694,226	4,881,525
Creditors: Amounts falling due within one year	8	(1,684,274)	(2,103,880)
Net current assets		3,009,952	2,777,645
Total assets less current liabilities		3,296,056	3,032,625
Creditors: Amounts falling due after more than one year	8	-	(333,000)
Provisions	9	(75,000)	(75,000)
Deferred tax liabilities		(39,582)	(30,751)
Net assets		3,181,474	2,593,874
Capital and reserves
Called up share capital	11	45	45
Capital redemption reserve		55	55
Profit and loss account		3,181,374	2,593,774
Total equity		3,181,474	2,593,874

For the financial year ended 30 April 2022 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 Directors on 25 November 2022 and signed on its behalf by:
 

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

M O'Hara

Director

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2022

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:
9-10 The Tything
Worcester
Worcestershire
WR1 1HD

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 smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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.
 

Key sources of estimation uncertainty

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 £112,040 (2021 - £120,633).

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 estimates. The carrying amount is £1,574,534 (2021 - £1,385,664).

Provision for client claims - the provision is based on a review of potential claims and an assessment of any potential settlements that are considered likely as a result of these. The carrying amount is £75,000 (2021 - £75,000).

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2022

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 to 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 fee income on individual assignments is included as amounts recoverable on contracts within debtors.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Corporation tax

The tax expense for the year comprises current and deferred tax. Corporation 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 income 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
Computer equipment	33% straight line basis
Office equipment	20% straight line basis
Leasehold improvements	10% straight line basis

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.

Negative goodwill arising on an acquisition is recognised on the face of the balance sheet on the acquisition date and subsequently the excess up to the fair value of non-monetary assets acquired is recognised in profit or loss in the periods in which the non-monetary assets are recovered.

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2022

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	Straight line basis over 5 years

Trade debtors

Trade debtors are amounts due from clients 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. Amounts 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.

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.

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 distributions to the Company’s shareholders are 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.

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2022

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.
 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 133 (2021 - 139).

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2022

4

Intangible assets

	Goodwill  £
Cost
At 1 May 2021 and 30 April 2022	1,100,000
Amortisation
At 1 May 2021 and 30 April 2022	1,100,000
Carrying amount
At 30 April 2021 and 30 April 2022	-

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2022

5

Tangible assets

	Leasehold Improvements £	Office equipment  £	Computer equipment  £	Total £
Cost
At 1 May 2021	72,780	193,178	256,243	522,201
Additions	10,650	2,334	81,059	94,043
At 30 April 2022	83,430	195,512	337,302	616,244
Depreciation
At 1 May 2021	16,213	140,663	159,242	316,118
Charge for the year	7,762	20,973	67,291	96,026
At 30 April 2022	23,975	161,636	226,533	412,144
Carrying amount
At 30 April 2022	59,455	33,876	110,769	204,100
At 30 April 2021	56,567	52,515	97,001	206,083

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2022

6

Investments

	2022 £	2021 £
Other investments	82,004	48,897

The balance at 30 April 2022 comprises £82,000 (2021 - £48,893) in respect of the company's capital and current accounts in Thursfields Child Care LLP and £4 (2021 - £4) share capital in Thursfields (Legal Services) Limited.
 

Other investments	£
Cost
At 1 May 2021	48,897
Additions	82,000
Disposals	(48,893)
At 30 April 2022	82,004
Carrying amount
At 30 April 2022	82,004
At 30 April 2021	48,897

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking	Registered office	Holding	Proportion of voting rights and shares held
			2022	2021
Subsidiary undertakings
Thursfields (Legal Services) Limited		Ordinary shares	100%	100%

Thursfields (Legal Services) Limited is dormant.

The profit for the financial period of Thursfields (Legal Services) Limited was £nil and the aggregate amount of capital and reserves at the end of the period was £491,109.

7

Debtors

	2022  £	2021  £
Trade debtors	476,812	654,217
Other debtors	65,156	48,298
Prepayments	392,681	364,683
Amounts recoverable on long term contracts	1,574,534	1,385,664
	2,509,183	2,452,862

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2022

8

Creditors

	2022  £	2021  £
Due within one year
Bank loans and overdrafts	136,669	37,000
Trade creditors	81,946	76,258
Social security and other taxes	551,371	794,020
Other creditors	521,710	606,083
Accrued expenses	178,611	121,664
Corporation tax liability	213,967	468,855
	1,684,274	2,103,880

	2022 £	2021 £
Due after one year
Bank loans	-	333,000

Creditors due after one year include a Coronavirus Business Interruption Loan Scheme (CBILS) bank loan of £nil (2021 - £333,000).

Thursfields Legal Limited

Notes to the Financial Statements for the Year Ended 30 April 2022

9

Provisions

	Client claims provision £
At 1 May 2021 and at 30 April 2022	75,000

10

Deferred tax

Deferred tax assets and liabilities

2022	Liability £
Accelerated tax depreciation	39,582
	39,582

2021	Liability £
Accelerated tax depreciation	30,751
	30,751

11

Share capital

Allotted, called up and fully paid shares

	2022		2021
	No.	£	No.	£
Ordinary 'A' Shares of £0.01 each	375	3.75	-	-
Ordinary 'B' Shares of £0.01 each	750	7.50	750	7.50
Ordinary 'E' Shares of £0.01 each	750	7.50	750	7.50
Ordinary 'F' Shares of £0.01 each	750	7.50	750	7.50
Ordinary 'G' Shares of £0.01 each	375	3.75	750	7.50
Ordinary 'H' Shares of £0.01 each	750	7.50	750	7.50
Ordinary 'I' Shares of £0.01 each	750	7.50	750	7.50
	4,500	45	4,500	45

During the year 375 Ordinary 'G' shares were reclassed as Ordinary 'A' shares.
 

12

Financial commitments, guarantees and contingencies

The total amount of financial commitments not included in the balance sheet is £380,238 (2021 - £486,816).