Acumen Financial Planning Limited - Limited company accounts 20.1
Acumen Financial Planning Limited - Limited company accounts 20.1
REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
FOR |
ACUMEN FINANCIAL PLANNING LIMITED |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Income Statement | 7 |
Other Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Notes to the Financial Statements | 11 |
ACUMEN FINANCIAL PLANNING LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
145 St. Vincent Street |
Glasgow |
G2 5JF |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
The directors present their strategic report for the year ended 31 October 2020. |
REVIEW OF BUSINESS |
The directors are satisfied with the overall performance. During a year of market volatility, turnover and profit before tax show modest decreases. There is a slightly reduced capital reserve position. |
The directors anticipate another broadly similar year to 2020 in terms of income and profitability. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The directors have established risk management systems to effectively manage the risks to which the company is exposed. |
The key risk facing the company is market risk whereby a downturn in markets could reduce future revenue levels. The company actively monitor their mitigation measures against such risk and respond accordingly. |
ON BEHALF OF THE BOARD: |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
The directors present their report with the financial statements of the company for the year ended 31 October 2020. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of financial planners. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 October 2020 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 November 2019 to the date of this report. |
FINANCIAL INSTRUMENTS |
The company's activities expose it to a number of financial risks, including credit risk, liquidity risk and cash flow risk. |
CREDIT RISK, LIQUIDITY RISK AND CASH FLOW RISK |
Credit risk |
The company's main financial assets are trade debtors and bank balances and deposits. Trade debtors are monitored on an ongoing basis, bank balances and deposits are held with established financial institutions with high credit ratings. |
Liquidity and cash flow risk |
The company reviews cash flow requirements on a regular basis and holds funds on current account to ensure sufficient funds are available to finance ongoing operations. |
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). 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. |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
AUDITORS |
The auditors, McLay, McAlister & McGibbon LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACUMEN FINANCIAL PLANNING LIMITED |
Opinion |
We have audited the financial statements of Acumen Financial Planning Limited (the 'company') for the year ended 31 October 2020 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 company's affairs as at 31 October 2020 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 |
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 company'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 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 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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
ACUMEN FINANCIAL PLANNING LIMITED |
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. |
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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
145 St. Vincent Street |
Glasgow |
G2 5JF |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
INCOME STATEMENT |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
31.10.20 | 31.10.19 |
Notes | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
OPERATING PROFIT | 4 |
Interest receivable and similar income |
820,681 | 896,666 |
Fair value adjustments on |
investments | 4,830 | 7,847 |
825,511 | 904,513 |
Interest payable and similar expenses | 5 |
PROFIT BEFORE TAXATION |
Tax on profit | 6 |
PROFIT FOR THE FINANCIAL YEAR |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
31.10.20 | 31.10.19 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
BALANCE SHEET |
31 OCTOBER 2020 |
31.10.20 | 31.10.19 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
Investments | 12 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
14 |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Share premium | 20 |
Capital redemption reserve | 20 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 November 2018 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 October 2019 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 31 October 2020 |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
1. | STATUTORY INFORMATION |
Acumen Financial Planning Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company 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 requirements of Section 7 Statement of Cash Flows. |
Preparation of consolidated financial statements |
The financial statements contain information about Acumen Financial Planning Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements. |
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 acquisition of businesses,is being amortised evenly over its estimated useful life of ten years. |
Tangible fixed assets |
Short leasehold | - |
Computer & office equipment | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provision for impairment. |
Taxation |
Taxation for the year/period 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. |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
2. | ACCOUNTING POLICIES - continued |
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. |
Listed investments |
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in the profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. |
3. | EMPLOYEES AND DIRECTORS |
31.10.20 | 31.10.19 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.10.20 | 31.10.19 |
Administration and support | 36 | 34 |
Planners | 10 | 10 |
31.10.20 | 31.10.19 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Information regarding the highest paid director is as follows: |
31.10.20 | 31.10.19 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.10.20 | 31.10.19 |
£ | £ |
Depreciation - owned assets |
Goodwill amortisation |
Auditors' remuneration |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.10.20 | 31.10.19 |
£ | £ |
Hire purchase |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.10.20 | 31.10.19 |
£ | £ |
Current tax: |
UK corporation tax |
(Over)/under provision | (6,162 | ) | (158 | ) |
Total current tax |
Deferred tax | ( |
) |
Tax on profit |
UK corporation tax was charged at 19%) in 2019. |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.10.20 | 31.10.19 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2019 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Other timing differences | (984 | ) | 3,807 |
Amortisation and depreciation not allowable | 22,411 | 19,103 |
Group relief | (66,346 | ) | - |
Total tax charge | 105,907 | 195,049 |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
7. | DIVIDENDS |
31.10.20 | 31.10.19 |
£ | £ |
Interim |
8. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 November 2019 |
and 31 October 2020 |
AMORTISATION |
At 1 November 2019 |
Amortisation for year |
At 31 October 2020 |
NET BOOK VALUE |
At 31 October 2020 |
At 31 October 2019 |
9. | TANGIBLE FIXED ASSETS |
Computer |
Short | & office |
leasehold | equipment | Totals |
£ | £ | £ |
COST |
At 1 November 2019 |
Additions |
At 31 October 2020 |
DEPRECIATION |
At 1 November 2019 |
Charge for year |
At 31 October 2020 |
NET BOOK VALUE |
At 31 October 2020 |
At 31 October 2019 |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 November 2019 |
and 31 October 2020 |
PROVISIONS |
At 1 November 2019 | 7,000 |
Impairments | 2,500 |
At 31 October 2020 | 9,500 |
NET BOOK VALUE |
At 31 October 2020 |
At 31 October 2019 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.10.20 | 31.10.19 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Accrued income |
Prepayments |
12. | CURRENT ASSET INVESTMENTS |
31.10.20 | 31.10.19 |
£ | £ |
Listed investments | 153,458 | 147,141 |
Market value of listed investments at 31 October 2020 - £ 153,458 (2019 - £ 147,141 ). |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.10.20 | 31.10.19 |
£ | £ |
Other loans (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Accrued expenses |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.10.20 | 31.10.19 |
£ | £ |
Hire purchase contracts (see note 16) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
31.10.20 | 31.10.19 |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.10.20 | 31.10.19 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
31.10.20 | 31.10.19 |
£ | £ |
Within one year |
Between one and five years |
In more than five years |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.10.20 | 31.10.19 |
£ | £ |
Hire purchase creditors | 26,756 | 68,316 |
Hire purchase creditors are secured over the specific assets financed. |
18. | PROVISIONS FOR LIABILITIES |
31.10.20 | 31.10.19 |
£ | £ |
Deferred tax | 25,087 | 29,567 |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
18. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 November 2019 |
Provided during year | ( |
) |
Balance at 31 October 2020 |
19. | CALLED UP SHARE CAPITAL |
Allotted and issued: |
Number: | Class: | Nominal | 31.10.20 | 31.10.19 |
value: | £ | £ |
Ordinary | £1 | 438,721 | 438,721 |
20. | RESERVES |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 November 2019 | 1,032,733 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 October 2020 | 994,077 |
21. | CONTINGENT LIABILITIES |
The company has granted a bond and floating charge over its assets in respect of a loan made to a group company. At the balance sheet date the loan outstanding was £1,002,977 (2019:£1,326,201). |
22. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 October 2020 and 31 October 2019: |
31.10.20 | 31.10.19 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
The advances are interest free and repayable on demand. |
23. | RELATED PARTY DISCLOSURES |
ACUMEN FINANCIAL PLANNING LIMITED (REGISTERED NUMBER: SC215343) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 OCTOBER 2020 |
24. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is |