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

REGISTERED NUMBER: 06582775 (England and Wales)

PARETO FINANCIAL PLANNING LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

N J Aspray

S Carswell

D E Hardy-Dearness

C J Romain

J M Stevenson

P L Stones

P A Young

REGISTERED OFFICE:

Level 7, Tower 12, 18 22 Bridge Street,

Spinningfields

Manchester

M3 3BZ

REGISTERED NUMBER:

06582775 (England and Wales)

AUDITORS:

Clarke Nicklin LLP

Chartered Accountants and

Statutory Auditors

Clarke Nicklin House

Brooks Drive

Cheadle Royal Business Park

Cheadle

Cheshire

SK8 3TD

FIXED ASSETS

Intangible assets

4

11,913

-

Tangible assets

5

112,748

103,927

124,661

103,927

CURRENT ASSETS

Debtors

6

1,675,508

1,667,187

Cash at bank

900,131

462,387

2,575,639

2,129,574

CREDITORS

Amounts falling due within one year

7

989,425

778,996

NET CURRENT ASSETS

1,586,214

1,350,578

TOTAL ASSETS LESS CURRENT LIABILITIES

1,710,875

1,454,505

PROVISIONS FOR LIABILITIES

9

23,686

19,746

NET ASSETS

1,687,189

1,434,759

CAPITAL AND RESERVES

Called up share capital

10

100

100

Retained earnings

1,687,089

1,434,659

SHAREHOLDERS' FUNDS

1,687,189

1,434,759

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 Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 14 October 2022 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.

The financial statements are presented in Sterling (£).

Going concern

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have reached this conclusion giving due consideration to the projected future performance of the company and any potential risk that might impact the company's ability to meet its required solvency levels. For this reason, they continue to adopt the going concern basis in preparing the financial statements.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

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

There are no judgements considered to have had a significant effect on amounts recognised in the financial statements.

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 a business in 2010, is being amortised evenly over its estimated useful life of five years.

Website development

Website development expenditure is recognised as an intangible asset when the company can demonstrate:

- The technical feasibility of completing the intangible asset so that it will be available for use or sale

- Its intention to complete and its ability to use or sell the asset

- How the asset will generate future economic benefits

- The availability of resources to complete the asset

- The ability to measure reliably the expenditure during development

Following initial recognition of the website development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over its useful life of three years.

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

Government grants

Grant income receivable under the Coronavirus Job Retention Scheme ("CJRS") is recognised in the Income Statement on a straight line basis over the furlough period for each relevant employee.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, 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.

Financial assets

Basic financial assets, including trade debtors, cash and bank balances and amounts owed by group undertakings, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in the income statement.

If there is a decrease in the the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the income statement.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities

Basic financial liabilities, including trade creditors and amounts owed to group undertakings, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 65 (2021 - 56 ) .

4.	INTANGIBLE FIXED ASSETS

Website

Goodwill

development

Totals

£

£

£

COST

At 1 April 2021

1,200,000

-

1,200,000

Additions

-

12,250

12,250

At 31 March 2022

1,200,000

12,250

1,212,250

AMORTISATION

At 1 April 2021

1,200,000

-

1,200,000

Amortisation for year

-

337

337

At 31 March 2022

1,200,000

337

1,200,337

NET BOOK VALUE

At 31 March 2022

-

11,913

11,913

At 31 March 2021

-

-

-

5.	TANGIBLE FIXED ASSETS

Furniture

Leasehold

and

Computer

improvements

fittings

equipment

Totals

£

£

£

£

COST

At 1 April 2021

80,817

155,197

183,011

419,025

Additions

-

7,295

57,903

65,198

Disposals

-

(51,035

)

(122,734

)

(173,769

)

At 31 March 2022

80,817

111,457

118,180

310,454

DEPRECIATION

At 1 April 2021

80,817

89,951

144,330

315,098

Charge for year

-

22,812

33,565

56,377

Eliminated on disposal

-

(51,035

)

(122,734

)

(173,769

)

At 31 March 2022

80,817

61,728

55,161

197,706

NET BOOK VALUE

At 31 March 2022

-

49,729

63,019

112,748

At 31 March 2021

-

65,246

38,681

103,927

6.

DEBTORS

2022

2021

£

£

Amounts falling due within one year:

Trade debtors

571,658

358,409

Other debtors

249,159

298,747

Directors' current accounts

10,327

-

Prepayments and accrued income

372,207

228,662

1,203,351

885,818

Amounts falling due after more than one year:

Other debtors

472,157

781,369

Aggregate amounts

1,675,508

1,667,187

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

139,103

80,170

Other loans

26,150

23,495

Trade creditors

81,190

41,844

Corporation tax

142,061

273,854

Social security and other taxes

87,860

58,331

VAT

51,751

39,597

Other creditors

28,370

6,440

Directors' current accounts

-

26,651

Accrued expenses

432,940

228,614

989,425

778,996

Accrued expenses includes unpaid pension contributions of £30,812 (2021: £22,923).

8.	LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

2022

2021

£

£

Within one year

140,140

140,140

Between one and five years

186,853

46,713

326,993

186,853

9.	PROVISIONS FOR LIABILITIES

2022

2021

£

£

Deferred tax

23,686

19,746

Deferred

tax

£

Balance at 1 April 2021

19,746

Charge to Statement of Income and Retained Earnings during year

3,940

Balance at 31 March 2022

23,686

The provision for deferred taxation is made up as follows

2022

2021

£

£

Accelerated capital allowances

23,686

19,746

23,686

19,746

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

100

Ordinary

£1

100

100

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Graham Travis FCA (Senior Statutory Auditor)

for and on behalf of Clarke Nicklin LLP

12.	CONTINGENT LIABILITIES

The company is a party to a cross guarantee, giving a fixed and floating charge over the company's assets, in respect of a liability of Primas Newco 3 Limited, the company's ultimate parent. The liability outstanding at 31 March 2022 is £1,868,000.

13.	RELATED PARTY DISCLOSURES

At 31 March 2022 key management personnel owed the company a total of £10,327 (2021: £26,651 creditor). The amount is included in debtors due within one year, is repayable on demand and interest is payable on the loan at 2.5% per annum.

At 31 March 2022 the company was owed £672,157 (2021: £1,007,836) by entities under common control. An amount of £200,000 is due within one year, with the balance due after one year.

14.	ULTIMATE CONTROLLING PARTY

The immediate parent company is Stechant Limited, a company registered in England and Wales, and controlled by J M Stevenson.

The ultimate parent company is Primas Newco 3 Limited, a company registered in England and Wales, and controlled by J M Stevenson.