Nowell Meller Solicitors Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 05536577 (England and Wales)

UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2020

FOR

NOWELL MELLER SOLICITORS LIMITED

Page

Company Information

1

Balance Sheet

2

to

3

Notes to the Financial Statements

4

to

10

DIRECTORS:

Mrs D F Hackney

S P Kirwan

Mrs J A Matthewman

Mrs C B Colclough

REGISTERED OFFICE:

7-8 St. Mary's Grove

Stafford

Staffordshire

ST16 2AT

REGISTERED NUMBER:

05536577 (England and Wales)

ACCOUNTANTS:

Poole Waterfield Limited

Ground Floor

Custom House

Waterfront East

Brierley Hill

West Midlands

DY5 1XH

BANKERS:

Lloyds Bank PLC

Fountain Square

Hanley

Stoke-on-Trent

ST1 1LE

FIXED ASSETS

Intangible assets

4

106,044

133,260

Tangible assets

5

57,680

61,878

163,724

195,138

CURRENT ASSETS

Debtors

6

1,150,866

968,538

Cash at bank and in hand

120,589

31,069

1,271,455

999,607

CREDITORS

Amounts falling due within one year

7

853,189

526,404

NET CURRENT ASSETS

418,266

473,203

TOTAL ASSETS LESS CURRENT LIABILITIES

581,990

668,341

CREDITORS

Amounts falling due after more than one year

8

(362,030

)

(395,727

)

PROVISIONS FOR LIABILITIES

(13,661

)

(16,152

)

NET ASSETS

206,299

256,462

CAPITAL AND RESERVES

Called up share capital

11

6

6

Retained earnings

206,293

256,456

SHAREHOLDERS' FUNDS

206,299

256,462

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2020.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2020 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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 Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 July 2021 and were signed on its behalf by:

S P Kirwan - Director

Mrs J A Matthewman - Director

Mrs D F Hackney - Director

Mrs C B Colclough - Director

1.	STATUTORY INFORMATION

Nowell Meller Solicitors 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.

Turnover

Turnover represents net invoiced sales of services and movements in work in progress, excluding Value Added Tax.

Intangible assets

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

Computer software is being amortised evenly over its estimated useful life of four years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Computer equipment

-

25% on reducing balance and 10% on cost

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

Taxation

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

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Intangible assets - goodwill

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

Goodwill, being the amount paid in connection with the acquisition of the business of Nowell Meller Solicitors on 1 November 2005, is being amortised evenly over its estimated life of twenty years. Goodwill in relation to the acquisition of Arthur Boulton & Son Solicitors on 1 November 2007 is being amortised evenly over its estimated useful life of eighteen years. The directors are satisfied that the period over which goodwill is being amortised reflects a reasonable estimate of its useful life.

Work in progress

Work in progress is recognised in respect of unbilled time on cases based on the estimated proportion of work done at the Balance Sheet date and the amount of fees which are considered recoverable. In respect of fixed fee work which is unbilled at the Balance Sheet date the full value of the fixed fee is recognised, subject to it being considered recoverable. Work in progress is shown as "Amounts recoverable on contracts" in debtors.

Going concern

The financial statements of the company have been prepared on a going concern basis. The validity of this basis depends upon the continued financial support of its bankers and principal creditors.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 41 (2019 - 40 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

Goodwill

assets

Totals

£

£

£

COST

At 1 November 2019

and 31 October 2020

305,000

40,044

345,044

AMORTISATION

At 1 November 2019

201,773

10,011

211,784

Charge for year

17,205

10,011

27,216

At 31 October 2020

218,978

20,022

239,000

NET BOOK VALUE

At 31 October 2020

86,022

20,022

106,044

At 31 October 2019

103,227

30,033

133,260

The 'other intangible assets' represents computer software.

5.	TANGIBLE FIXED ASSETS

Computer

equipment

£

COST

At 1 November 2019

315,757

Additions

7,029

At 31 October 2020

322,786

DEPRECIATION

At 1 November 2019

253,879

Charge for year

11,227

At 31 October 2020

265,106

NET BOOK VALUE

At 31 October 2020

57,680

At 31 October 2019

61,878

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Computer

equipment

£

COST

At 1 November 2019

and 31 October 2020

48,000

DEPRECIATION

At 1 November 2019

4,800

Charge for year

4,800

At 31 October 2020

9,600

NET BOOK VALUE

At 31 October 2020

38,400

At 31 October 2019

43,200

6.

DEBTORS

31.10.20

31.10.19

£

£

Amounts falling due within one year:

Trade debtors

173,221

111,497

Amounts recoverable on

contracts

403,396

364,851

Prepayments

74,711

17,132

651,328

493,480

Amounts falling due after more than one year:

Other debtors

105,762

103,362

Directors' loan accounts

304,664

282,584

S.455 taxation over 1 year

89,112

89,112

499,538

475,058

Aggregate amounts

1,150,866

968,538

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.20

31.10.19

£

£

Loan

104,673

20,316

Bank loans and overdrafts

184,193

175,364

Other loans

256,094

195,484

Hire purchase contracts (see note 9)

9,604

9,600

Trade creditors

35,015

50,896

Tax

16,351

16,351

Social security and other taxes

54,660

19,357

VAT

175,358

21,244

Other creditors

5,241

5,792

Accrued expenses

12,000

12,000

853,189

526,404

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.10.20

31.10.19

£

£

Loan - 1-2 years

-

20,316

Loan - 2-5 years

-

60,948

Loan - 5 years

-

15,537

Bank loans - 1-2 years

54,732

39,439

Bank loans - 2-5 years

154,402

130,158

Bank loans - over 5 years

7,955

5,392

Other loans - 1-2 years

116,941

73,556

Other loans - 2-5 years

-

15,181

Hire purchase contracts (see note 9)

28,000

35,200

362,030

395,727

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Loan - 5 years

-

15,537

Repayable by instalments

Bank loans - over 5 years

7,955

5,392

9.	LEASING AGREEMENTS

Minimum lease payments under hire purchase fall due as follows:

Hire purchase

contracts

31.10.20

31.10.19

£

£

Gross obligations repayable:

Within one year

12,310

12,306

Between one and five years

35,892

45,122

48,202

57,428

Finance charges repayable:

Within one year

2,706

2,706

Between one and five years

7,892

9,922

10,598

12,628

Net obligations repayable:

Within one year

9,604

9,600

Between one and five years

28,000

35,200

37,604

44,800

The company has the following annual operating lease commitments:-

31.10.20

31.10.19

£

£

Expiring:

Within one year

58,025

64,679

Between 2 - 5 years

47,343

24,806

105,368

89,485

10.	SECURED DEBTS

The following secured debts are included within creditors:

31.10.20

31.10.19

£

£

Bank overdrafts

132,525

137,971

Hire purchase contracts

37,604

44,800

Bank loans

193,757

212,382

Loan

104,673

117,117

468,559

512,270

The company's bank borrowing facilities are secured by an unlimited debenture incorporating a fixed charge and are guaranteed by two members of the board of directors and a former director. The loan of £104,673 is secured by way of debenture.

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.10.20

31.10.19

value:

£

£

6

Ordinary

£1

6

6

12.	RELATED PARTY TRANSACTIONS

Included in debtors are balances owed to the company from two members of the Board of the Directors totalling £304,664 (2019 - £282,584). A total of £22,080 was advanced during the year.

The balances are unsecured and interest free.

An amount of £105,762 (2019 - £103,362) that is included in debtors is in respect of a shareholder.

The balance is unsecured and interest free.

13.	ULTIMATE CONTROLLING PARTY

Throughout the year the company has been controlled by J Matthewman, S Kirwan and A J Hall by virtue of each holding 33.3% of the issued share capital.