Acumen Financial Planning Limited - Limited company accounts 23.2

REGISTERED NUMBER: SC215343 (Scotland)

STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2022

FOR

ACUMEN FINANCIAL PLANNING LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

D Gow

K Mackie

A G Robertson

SECRETARY:

Shepherd & Wedderburn Secretaries Ltd

REGISTERED OFFICE:

4 Kingshill Park

Venture Drive

Arnhall Business Park

Westhill

AB32 6FL

REGISTERED NUMBER:

SC215343 (Scotland)

AUDITORS:

McLay, McAlister & McGibbon LLP

Chartered Accountants and Statutory Auditors

145 St. Vincent Street

Glasgow

G2 5JF

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

REVIEW OF BUSINESS

The directors are satisfied with the overall performance. During a year of subdued market conditions, turnover has increased however profit before tax has decreased. There is a net increase in the capital reserve position on the restated basis.

The directors anticipate another broadly similar year to 2022 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:

A G Robertson - Director

16 May 2023

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

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 2022 will be £ 900,000 .

DIRECTORS

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

D Gow

K Mackie

A G Robertson

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.

AUDITORS

The auditors, McLay, McAlister & McGibbon LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A G Robertson - Director

16 May 2023

Opinion

We have audited the financial statements of Acumen Financial Planning Limited (the 'company') for the year ended 31 October 2022 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

-the nature of the industry sector, control environment and business performance;

-results of our enquiries of management about their own assessment of risks and irregularities;

-any matters we identified having reviewed the company's internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

-matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators.

We obtained an understanding of the legal and regulatory framework that the company operates in. The key laws and regulations we considered included the UK Companies Act and tax legislation.We assessed the extent of compliance with these as part of our procedures on the related financial statement items. In addition we considered the provisions of other laws and regulations that do not have an effect on the financial statements but compliance with which may be fundamental to the company's ability to operate.These included Financial Conduct Authority and employment laws. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors, inspection of regulatory and legal correspondence, if any, and review of minutes of meetings. These limited procedures did not identify actual or suspected non-compliance.

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.

George Macshannon (Senior Statutory Auditor)

for and on behalf of McLay, McAlister & McGibbon LLP

Chartered Accountants and Statutory Auditors

145 St. Vincent Street

Glasgow

G2 5JF

16 May 2023

TURNOVER

6,773,187

5,882,967

Cost of sales

2,255,754

1,882,736

GROSS PROFIT

4,517,433

4,000,231

Administrative expenses

3,316,222

2,611,585

OPERATING PROFIT

4

1,201,211

1,388,646

Income from fixed asset investments

2,444

2,018

Interest receivable and similar income

1,605

1,243

4,049

3,261

1,205,260

1,391,907

Fair value adjustments on

investments

(9,104

)

41,894

1,196,156

1,433,801

Interest payable and similar expenses

5

-

4,773

PROFIT BEFORE TAXATION

1,196,156

1,429,028

Tax on profit

6

208,139

229,457

PROFIT FOR THE FINANCIAL YEAR

988,017

1,199,571

PROFIT FOR THE YEAR

988,017

1,199,571

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,199,571

Note

Prior year adjustment

8

(152,897

)

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

835,120

FIXED ASSETS

Intangible assets

9

313,756

396,266

478,782

Tangible assets

10

78,090

125,535

160,607

Investments

11

-

6,500

6,500

391,846

528,301

645,889

CURRENT ASSETS

Debtors

12

1,049,601

937,800

839,738

Investments

13

190,779

197,381

153,458

Cash at bank

453,402

462,505

159,565

1,693,782

1,597,686

1,152,761

CREDITORS

Amounts falling due within one year

14

(724,244

)

(844,896

)

(340,765

)

NET CURRENT ASSETS

969,538

752,790

811,996

TOTAL ASSETS LESS CURRENT LIABILITIES

1,361,384

1,281,091

1,457,885

PROVISIONS FOR LIABILITIES

16

(31,525

)

(39,249

)

(25,087

)

NET ASSETS

1,329,859

1,241,842

1,432,798

CAPITAL AND RESERVES

Called up share capital

17

438,721

438,721

438,721

Share premium

18

316,775

316,775

316,775

Capital redemption reserve

18

52,115

52,115

52,115

Retained earnings

18

522,248

434,231

625,187

SHAREHOLDERS' FUNDS

1,329,859

1,241,842

1,432,798

The financial statements were approved by the Board of Directors and authorised for issue on 16 May 2023 and were signed on its behalf by:

A G Robertson - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 November 2020

438,721

504,660

316,775

52,115

1,312,271

Changes in equity

Dividends

-

(1,270,000

)

-

-

(1,270,000

)

Total comprehensive income

-

1,352,468

-

-

1,352,468

Balance at 31 October 2021

438,721

587,128

316,775

52,115

1,394,739

Prior year adjustment

-

(152,897

)

-

-

(152,897

)

As restated

438,721

434,231

316,775

52,115

1,241,842

Changes in equity

Dividends

-

(900,000

)

-

-

(900,000

)

Total comprehensive income

-

988,017

-

-

988,017

Balance at 31 October 2022

438,721

522,248

316,775

52,115

1,329,859

1.	STATUTORY INFORMATION

Acumen Financial Planning Limited is a private company, limited by shares , registered in Scotland. 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 represents gross commission received and receivable together with invoiced sales, inclusive of value added tax.

Goodwill

Goodwill, being the amount paid in connection with acquisition of various businesses,is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost of each asset less any residual value, over its estimated useful life.

Short Leasehold Improvements -over 5 years

Computer & Office equipment - 33% on cost and over 5 years

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.

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

31.10.22

31.10.21

as restated

£

£

Wages and salaries

3,112,448

2,562,422

Social security costs

340,115

264,701

Other pension costs

149,596

126,397

3,602,159

2,953,520

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

31.10.22

31.10.21

as restated

Administration and support

53

41

Planners

14

13

67

54

31.10.22

31.10.21

as restated

£

£

Directors' remuneration

264,297

249,365

Directors' pension contributions to money purchase schemes

17,490

16,646

Information regarding the highest paid director is as follows:

31.10.22

31.10.21

as restated

£

£

Emoluments etc

137,691

125,540

Pension contributions to money purchase schemes

8,072

7,683

4.	OPERATING PROFIT

The operating profit is stated after charging:

31.10.22

31.10.21

as restated

£

£

Depreciation - owned assets

91,146

82,105

Loss on disposal of fixed assets

118

-

Goodwill amortisation

82,510

82,516

Auditors' remuneration

11,580

10,880

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.10.22

31.10.21

as restated

£

£

Hire purchase

-

4,773

6.

TAXATION

Analysis of the tax charge

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

31.10.22

31.10.21

as restated

£

£

Current tax:

UK corporation tax

219,386

236,553

(Over)/under provision

(3,523

)

(21,259

)

Total current tax

215,863

215,294

Deferred tax

(7,724

)

14,163

Tax on profit

208,139

229,457

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:

31.10.22

31.10.21

as restated

£

£

Profit before tax

1,196,156

1,429,028

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

227,270

271,515

Effects of:

Expenses not deductible for tax purposes

6,257

726

Income not taxable for tax purposes

(464

)

(383

)

Adjustments to tax charge in respect of previous periods

(3,523

)

(10,628

)

Other timing differences

23

-

Amortization and depreciation not allowable

12,353

15,640

Group relief

(34,254

)

(47,799

)

Fair value adjustment on investment

477

386

Total tax charge

208,139

229,457

7.

DIVIDENDS

31.10.22

31.10.21

as restated

£

£

Interim

900,000

1,270,000

8.	PRIOR YEAR ADJUSTMENT

The comparative amounts have been restated following the discovery that the Financial Services Compensation Scheme levy costs were understated.

Summary of the prior year accounting impact:

Decrease in net profit before tax £39,964

Decrease in tax charge £7,593

Increase in Liabilities £152,897

Decrease in reserves brought forward £120,527

9.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 November 2021

and 31 October 2022

925,155

AMORTISATION

At 1 November 2021

528,889

Amortisation for year

82,510

At 31 October 2022

611,399

NET BOOK VALUE

At 31 October 2022

313,756

At 31 October 2021

396,266

10.	TANGIBLE FIXED ASSETS

Short

Computer

leasehold

& office

Improvements

equipment

Totals

£

£

£

COST

At 1 November 2021

183,787

272,821

456,608

Additions

-

43,704

43,704

Disposals

-

(43,813

)

(43,813

)

At 31 October 2022

183,787

272,712

456,499

DEPRECIATION

At 1 November 2021

129,881

201,192

331,073

Charge for year

36,634

54,512

91,146

Eliminated on disposal

-

(43,810

)

(43,810

)

At 31 October 2022

166,515

211,894

378,409

NET BOOK VALUE

At 31 October 2022

17,272

60,818

78,090

At 31 October 2021

53,906

71,629

125,535

11.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 November 2021

16,000

Disposals

(16,000

)

At 31 October 2022

-

PROVISIONS

At 1 November 2021

9,500

Eliminated on disposal

(9,500

)

At 31 October 2022

-

NET BOOK VALUE

At 31 October 2022

-

At 31 October 2021

6,500

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.22

31.10.21

as restated

£

£

Trade debtors

3,974

4,752

Amounts owed by group undertakings

300,000

200,000

Other debtors

-

126,462

Accrued income

463,806

429,396

Prepayments

281,821

177,190

1,049,601

937,800

13.	CURRENT ASSET INVESTMENTS

31.10.22

31.10.21

as restated

£

£

Listed investments

190,779

197,381

Market value of listed investments at 31 October 2022 - £ 190,779 (2021 - £ 197,381 ).

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.22

31.10.21

as restated

£

£

Trade creditors

77,058

78,297

Amounts owed to group undertakings

238,564

63,054

Tax

108,521

131,473

Social security and other taxes

93,597

77,496

Other creditors

36,941

111,226

Directors' loan accounts

1,255

1,185

Accrued expenses

168,308

382,165

724,244

844,896