Yendall Hunter Limited - Limited company accounts 22.3

REGISTERED NUMBER: 09410777 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

FOR

YENDALL HUNTER LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

DIRECTORS:

M J Hunter

A E Yendall

REGISTERED OFFICE:

D S House,

306 High Street

Croydon

Surrey

CR0 1NG

REGISTERED NUMBER:

09410777 (England and Wales)

AUDITORS:

DSK Partners LLP

Chartered Accountants and Statutory Auditors

D S House

306 High Street

Croydon

Surrey

CR0 1NG

The directors present their strategic report for the year ended 31 March 2022.

REVIEW OF BUSINESS

The results for the year and financial position of the company are shown in the audited financial statements.

The company has experienced decrease in sales with turnover decreasing by 10.74% from £14.0 million (year ended 31 March 2021) to £12.5 million (year ended 31 March 2022). During the same time period, operating profit decreased by 16% from £7.5 million to £6.3 million.

The key financial performance indicators are as follows:

1. Turnover: £12.53 million (2020-21: £14.07 million)

2. Monthly turnover: £1.04 million (2020-21: £1.17 million)

3. Operating Expenses: £6.23 million (2020-21: £6.5 million)

4. Operating Profit: £6.31 million (2020-21: £7.57 million)

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks faced by the company include exposure to bad debts, reduction in new expert appointments and staffing risks related to retaining highly specialized consulting staff. The company manages its bad debt exposure through prompt billing and continuous monitoring of receivables and collections. The company continues to solidify its reputation in the marketplace by expanding its established network of law firms and corporate clients. Recruitment, staff retention and professional development are treated as a priority at all levels.

FUTURE DEVELOPMENT

The company plans to continue its strategy of organic growth and is actively developing a second generation of expert witnesses and work-winners to maintain and expand the flow of expert appointments in the long-term.

ON BEHALF OF THE BOARD:

A E Yendall - Director

21 December 2022

The directors present their report with the financial statements of the company for the year ended 31 March 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of construction disputes and project advisory consultancy services.

DIVIDENDS

Interim dividends of £30,000 and £40,000 per share were paid on 27th May 2021 and 17th January 2022 respectively. The director's recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2022 will be £7,000,000.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2021 to the date of this report.

M J Hunter

A E Yendall

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the company 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 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 company'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 company's auditors are aware of that information.

AUDITORS

The auditors, DSK Partners LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A E Yendall - Director

21 December 2022

Opinion

We have audited the financial statements of Yendall Hunter Limited (the 'company') for the year ended 31 March 2022 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 company's affairs as at 31 March 2022 and of its 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 company 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and 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 this gives rise to a material misstatement in the financial statements themselves. 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

-	the 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 three, 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 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 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations.

We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The key laws and regulations we have considered in this context included the Companies Act 2006, pension and tax legislation. In addition, we have considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

- Using our general commercial and sector experience and through discussions with the directors and management, we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements as well as those arising from management's own assessment of the risks that irregularities may occur either as a result of fraud or error.

- We examined the company's regulatory and legal correspondence and discussed with the directors and management any known or suspected instances of fraud or non-compliance with laws and regulations.

- We communicated identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

- In addressing the risk of management override of controls, we tested the appropriateness of journal entries. We also challenged assumptions and judgements made by management in their significant accounting estimates and judgements.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentation, or through collusion.

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.

Romit Basu FCA (Senior Statutory Auditor)

for and on behalf of DSK Partners LLP

Chartered Accountants and Statutory Auditors

D S House

306 High Street

Croydon

Surrey

CR0 1NG

21 December 2022

TURNOVER

12,536,849

14,075,161

Administrative expenses

6,229,704

6,501,443

OPERATING PROFIT

4

6,307,145

7,573,718

Interest receivable and similar income

6,560

2,452

PROFIT BEFORE TAXATION

6,313,705

7,576,170

Tax on profit

5

1,204,292

1,444,405

PROFIT FOR THE FINANCIAL YEAR

5,109,413

6,131,765

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

5,109,413

6,131,765

FIXED ASSETS

Tangible assets

7

142,812

215,142

CURRENT ASSETS

Debtors

8

5,249,048

6,189,575

Cash at bank

4,816,761

6,109,258

10,065,809

12,298,833

CREDITORS

Amounts falling due within one year

9

2,077,242

2,482,140

NET CURRENT ASSETS

7,988,567

9,816,693

TOTAL ASSETS LESS CURRENT LIABILITIES

8,131,379

10,031,835

PROVISIONS FOR LIABILITIES

11

14,565

24,434

NET ASSETS

8,116,814

10,007,401

CAPITAL AND RESERVES

Called up share capital

12

100

100

Retained earnings

13

8,116,714

10,007,301

SHAREHOLDERS' FUNDS

8,116,814

10,007,401

The financial statements were approved by the Board of Directors and authorised for issue on 21 December 2022 and were signed on its behalf by:

A E Yendall - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2020

100

7,775,536

7,775,636

Changes in equity

Dividends

-

(3,900,000

)

(3,900,000

)

Total comprehensive income

-

6,131,765

6,131,765

Balance at 31 March 2021

100

10,007,301

10,007,401

Changes in equity

Dividends

-

(7,000,000

)

(7,000,000

)

Total comprehensive income

-

5,109,413

5,109,413

Balance at 31 March 2022

100

8,116,714

8,116,814

Cash flows from operating activities

Cash generated from operations

1

6,971,611

6,143,713

Amount received from group undertakings

-

647,485

Tax paid

(1,269,633

)

(1,333,301

)

Net cash from operating activities

5,701,978

5,457,897

Cash flows from investing activities

Purchase of tangible fixed assets

(1,035

)

(12,165

)

Interest received

6,560

2,452

Net cash from investing activities

5,525

(9,713

)

Cash flows from financing activities

Equity dividends paid

(7,000,000

)

(3,900,000

)

Net cash from financing activities

(7,000,000

)

(3,900,000

)

(Decrease)/increase in cash and cash equivalents

(1,292,497

)

1,548,184

Cash and cash equivalents at beginning of year

2

6,109,258

4,561,074

Cash and cash equivalents at end of year

2

4,816,761

6,109,258

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2022

2021

£

£

Profit before taxation

6,313,705

7,576,170

Depreciation charges

73,365

76,375

Finance income

(6,560

)

(2,452

)

6,380,510

7,650,093

Decrease/(increase) in trade and other debtors

940,527

(936,497

)

Decrease in trade and other creditors

(349,426

)

(569,883

)

Cash generated from operations

6,971,611

6,143,713

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 March 2022

31.3.22

1.4.21

£

£

Cash and cash equivalents

4,816,761

6,109,258

Year ended 31 March 2021

31.3.21

1.4.20

£

£

Cash and cash equivalents

6,109,258

4,561,074

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.21

Cash flow

At 31.3.22

£

£

£

Net cash

Cash at bank

6,109,258

(1,292,497

)

4,816,761

6,109,258

(1,292,497

)

4,816,761

Total

6,109,258

(1,292,497

)

4,816,761

1.	STATUTORY INFORMATION

Yendall Hunter 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.

The presentation currency of the financial statements is the Pound Sterling (£) rounded to the nearest Pound.

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.

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 parent companies within the group, being a wholly owned subsidiary.

Turnover

Turnover is the amount derived from ordinary activities, and is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services.

Turnover from the rendering of services is recognised by the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the value of the consideration due. Where a contract has only been partially completed at the balance sheet date, turnover payments are received from clients in advance of services provided, the amounts are recorded as deferred income and included as part of the creditors due within one year. Unbilled revenue on individual client assignments is included as unbilled amounts for client work within debtors.

Tangible fixed assets

Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and

accumulated impairment losses.

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

Plant and machinery

20% straight line

Fixtures and fittings

20% straight line

Computer equipment

33.33% straight line

Leasehold improvements

20% straight line

At each statement of financial position date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss, if any. Where it is not possible to estimate the recoverable amount of the asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the 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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Trade and other debtors

Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost.

3.	EMPLOYEES AND DIRECTORS

2022

2021

£

£

Wages and salaries

2,294,479

2,999,686

Social security costs

294,714

380,868

Other pension costs

87,685

99,983

2,676,878

3,480,537

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

2022

2021

Full time employees

18

21

2022

2021

£

£

Directors' remuneration

500,000

500,000

Information regarding the highest paid director is as follows:

2022

2021

£

£

Emoluments etc

250,000

250,000

4.	OPERATING PROFIT

The operating profit is stated after charging:

2022

2021

£

£

Depreciation - owned assets

73,365

76,375

Auditors' remuneration

5,775

5,500

Auditors' remuneration - non-audit work

8,350

8,165

5.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2022

2021

£

£

Current tax:

UK corporation tax

1,200,713

1,370,343

Foreign taxes paid

13,448

81,329

Total current tax

1,214,161

1,451,672

Deferred tax

(9,869

)

(7,267

)

Tax on profit

1,204,292

1,444,405

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2022

2021

£

£

Profit before tax

6,313,705

7,576,170

Profit multiplied by the standard rate of corporation tax in the UK of 19% (2021 - 19%)

1,199,604

1,439,472

Effects of:

Expenses not deductible for tax purposes

874

-

Depreciation in excess of capital allowances

13,684

12,200

Double taxation relief

(13,448

)

(81,329

)

Foreign tax paid

13,448

81,329

Deferred tax

(9,870

)

(7,267

)

Total tax charge

1,204,292

1,444,405

6.

DIVIDENDS

2022

2021

£

£

Ordinary shares of £1 each

Interim

7,000,000

3,900,000

7.	TANGIBLE FIXED ASSETS

Fixtures

Short

Plant and

and

Computer

leasehold

machinery

fittings

equipment

Totals

£

£

£

£

£

COST

At 1 April 2021

129,815

123,507

90,808

68,469

412,599

Additions

-

-

-

1,035

1,035

Disposals

-

(61,227

)

-

(16,966

)

(78,193

)

At 31 March 2022

129,815

62,280

90,808

52,538

335,441

DEPRECIATION

At 1 April 2021

43,272

83,651

30,269

40,265

197,457

Charge for year

25,963

12,454

18,162

16,786

73,365

Eliminated on disposal

-

(61,227

)

-

(16,966

)

(78,193

)

At 31 March 2022

69,235

34,878

48,431

40,085

192,629

NET BOOK VALUE

At 31 March 2022

60,580

27,402

42,377

12,453

142,812

At 31 March 2021

86,543

39,856

60,539

28,204

215,142

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

3,658,291

4,665,377

Other debtors

50

61,996

Unbilled amounts for client work

1,340,600

1,358,171

Amount owed by group undertaki

87,788

-

Prepayments

162,319

104,031

5,249,048

6,189,575

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade creditors

97,999

76,654

Corporation tax

417,933

473,405

Social security and other taxes

3,715

116,317

Other creditors

115,000

1,981

Amounts owed to group undertakings

666,430

627,761

Accruals and deferred income

776,165

1,186,022

2,077,242

2,482,140

10.	LEASING AGREEMENTS

The minimum unconceivable lease payments which the company is committed to make are:

2022

2021

£

£

Payments due:

Not later than one year

223,844

223,839

Later than one year and not later than five years

877,340

884,551

Later than five years

4985,52

715,185

1,599,736

1,823,579

11.	PROVISIONS FOR LIABILITIES

2022

2021

£

£

Deferred tax

14,565

24,434

Deferred

tax

£

Balance at 1 April 2021

24,434

Provided during year

(9,869

)

Balance at 31 March 2022

14,565