Pensionhelp Limited - Limited company accounts 23.2

REGISTERED NUMBER: 09437056 (England and Wales)

PENSIONHELP LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Balance Sheet

11

Company Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

K M Wilson

M Wilson

D E Hardy-Dearness

J M Stevenson

M D McPhun

REGISTERED OFFICE:

5 - 7 Byrom Street

Manchester

M3 4PF

REGISTERED NUMBER:

09437056 (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

The directors present their strategic report of the company and the group for the year ended 31 March 2023.

STRATEGIC REPORT

The company offers independent advice on pensions and retirement planning to a range of customers, who are mainly referred to the company via third party connections. The management team are successful in developing long-term relationships with third parties through formal introduce agreements.

In the financial year ending March 2023 the UK base interest rate increased, resulting in lower pension transfer values and, in turn, a reduction in the company's turnover from £16.94m to £9.97m.The Directors have reduced the overhead cost base of the company accordingly, whilst continuing to build relationships with additional introducers to further diversify lead generation.

During the year a brought forward provision for redress payments to customers was reduced, following the completion of a past business review.

The main key performance indicators used by management on a regular basis include New case volumes, Gross and Net profit margins, Current ratio and FCA capital adequacy headroom.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors consider the full range of risks affecting the company on a regular basis, and where appropriate take action to address such risks. The principal risks and uncertainties facing the company are detailed below:

Risks To Introducer Relationships

The company has developed strong long-term relationships with a range of introducers and does not feel overly dependent on any one introducer.

Economic and Political Risk

Business volumes are reactive to changes in the economic and political environment, including interest rates. The directors monitor these changes to ensure resources are appropriate to numbers of referrals.

Compliance Risk

Remaining compliant with the Financial Conduct Authority and Financial Ombudsmen Service regulations is critical to the company. Significant time and resource is invested in training and compliance to ensure the company minimises compliance risk.

Technology Risk

The company continues to invest in IT to improve efficiency and client experience, whilst maintaining its high level of cyber security.

ON BEHALF OF THE BOARD:

M Wilson - Director

30 October 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2023.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of provision of Pensions advice

DIVIDENDS

The total distribution of dividends for the year ended 31 March 2023 will be £401,136.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

K M Wilson

M Wilson

D E Hardy-Dearness

J M Stevenson

Other changes in directors holding office are as follows:

M D McPhun - appointed 11 August 2022

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

M Wilson - Director

30 October 2023

Opinion

We have audited the financial statements of Pensionhelp Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 March 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 group's and the parent 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 group or the parent 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:

Procedures to identify risks:

-

enquiring of management concerning the company's procedures relating to: identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

-

discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas: timing of recognition of income and related expenses, posting of unusual journals; and

-

obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety, pensions legislation, tax legislation, and Financial Conduct Authority regulations.

The procedures to respond to risks identified included:

-

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above;

-

enquiring of management, concerning actual and potential litigation, claims, and customer complaints;

-

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-

reviewing correspondence with HMRC and the Financial Conduct Authority, where appropriate;

-

testing the timing and matching of income and related expense transactions either side of the year end; and

-

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant 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.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulation that are not closely related to events and transactions reflected in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detection one resulting from an 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.

Graham Travis FCA (Senior Statutory Auditor)

for and on behalf of Clarke Nicklin LLP

Chartered Accountants and

Statutory Auditors

Clarke Nicklin House

Brooks Drive

Cheadle Royal Business Park

Cheadle

Cheshire

SK8 3TD

9 November 2023

TURNOVER

9,966,103

16,942,891

Cost of sales

2,522,483

4,162,275

GROSS PROFIT

7,443,620

12,780,616

Administrative expenses

6,661,027

6,580,083

782,593

6,200,533

Other operating income

-

51,000

OPERATING PROFIT

4

782,593

6,251,533

Exceptional items

5

479,747

(3,892,833

)

1,262,340

2,358,700

Interest receivable and similar income

69,175

736

1,331,515

2,359,436

Interest payable and similar expenses

6

3,005

2,272

PROFIT BEFORE TAXATION

1,328,510

2,357,164

Tax on profit

7

244,066

404,296

PROFIT FOR THE FINANCIAL YEAR

1,084,444

1,952,868

Profit attributable to:

Owners of the parent

1,084,444

1,952,868

PROFIT FOR THE YEAR

1,084,444

1,952,868

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,084,444

1,952,868

Total comprehensive income attributable to:

Owners of the parent

1,084,444

1,952,868

FIXED ASSETS

Intangible assets

10

17,335

28,285

Tangible assets

11

410,293

594,039

Investments

12

-

-

427,628

622,324

CURRENT ASSETS

Debtors

13

1,432,789

3,426,274

Cash at bank

8,254,994

8,364,015

9,687,783

11,790,289

CREDITORS

Amounts falling due within one year

14

997,587

1,962,509

NET CURRENT ASSETS

8,690,196

9,827,780

TOTAL ASSETS LESS CURRENT LIABILITIES

9,117,824

10,450,104

CREDITORS

Amounts falling due after more than one year

15

(57,188

)

(88,877

)

PROVISIONS FOR LIABILITIES

18

(1,998,907

)

(3,982,806

)

NET ASSETS

7,061,729

6,378,421

CAPITAL AND RESERVES

Called up share capital

19

100

100

Retained earnings

20

7,061,629

6,378,321

SHAREHOLDERS' FUNDS

7,061,729

6,378,421

The financial statements were approved by the Board of Directors and authorised for issue on 30 October 2023 and were signed on its behalf by:

M Wilson - Director

FIXED ASSETS

Intangible assets

10

17,335

28,285

Tangible assets

11

410,293

594,039

Investments

12

2,675,000

2,675,000

3,102,628

3,297,324

CURRENT ASSETS

Debtors

13

1,422,027

3,425,359

Cash at bank

5,198,297

5,438,519

6,620,324

8,863,878

CREDITORS

Amounts falling due within one year

14

997,313

1,946,388

NET CURRENT ASSETS

5,623,011

6,917,490

TOTAL ASSETS LESS CURRENT LIABILITIES

8,725,639

10,214,814

CREDITORS

Amounts falling due after more than one year

15

(57,188

)

(88,877

)

PROVISIONS FOR LIABILITIES

18

(1,998,907

)

(3,982,806

)

NET ASSETS

6,669,544

6,143,131

CAPITAL AND RESERVES

Called up share capital

19

100

100

Retained earnings

20

6,669,444

6,143,031

SHAREHOLDERS' FUNDS

6,669,544

6,143,131

Company's profit for the financial year

927,549

1,779,996

The financial statements were approved by the Board of Directors and authorised for issue on 30 October 2023 and were signed on its behalf by:

M Wilson - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2021

100

4,826,589

4,826,689

Changes in equity

Dividends

-

(401,136

)

(401,136

)

Total comprehensive income

-

1,952,868

1,952,868

Balance at 31 March 2022

100

6,378,321

6,378,421

Changes in equity

Dividends

-

(401,136

)

(401,136

)

Total comprehensive income

-

1,084,444

1,084,444

Balance at 31 March 2023

100

7,061,629

7,061,729

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 April 2021

100

4,764,171

4,764,271

Changes in equity

Dividends

-

(401,136

)

(401,136

)

Total comprehensive income

-

1,779,996

1,779,996

Balance at 31 March 2022

100

6,143,031

6,143,131

Changes in equity

Dividends

-

(401,136

)

(401,136

)

Total comprehensive income

-

927,549

927,549

Balance at 31 March 2023

100

6,669,444

6,669,544

Cash flows from operating activities

Cash generated from operations

1

30,616

6,508,524

Interest paid

-

(770

)

Interest element of hire purchase payments paid

(3,005

)

(1,502

)

Tax paid

300,221

(1,960,066

)

Net cash from operating activities

327,832

4,546,186

Cash flows from investing activities

Purchase of intangible fixed assets

-

(33,180

)

Purchase of tangible fixed assets

(73,372

)

(477,727

)

Interest received

69,175

736

Net cash from investing activities

(4,197

)

(510,171

)

Cash flows from financing activities

Capital repayments in year

(31,688

)

-

Amount introduced by directors

9,586

-

Amount withdrawn by directors

(9,418

)

(67,565

)

Equity dividends paid

(401,136

)

(401,136

)

Net cash from financing activities

(432,656

)

(468,701

)

(Decrease)/increase in cash and cash equivalents

(109,021

)

3,567,314

Cash and cash equivalents at beginning of year

2

8,364,015

4,796,701

Cash and cash equivalents at end of year

2

8,254,994

8,364,015

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

2023

2022

£

£

Profit before taxation

1,328,510

2,357,164

Depreciation charges

268,068

155,625

Redress provision

(1,965,869

)

3,892,833

Finance costs

3,005

2,272

Finance income

(69,175

)

(736

)

(435,461

)

6,407,158

Decrease/(increase) in trade and other debtors

1,431,000

(179,933

)

(Decrease)/increase in trade and other creditors

(964,923

)

281,299

Cash generated from operations

30,616

6,508,524

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2023

31.3.23

1.4.22

£

£

Cash and cash equivalents

8,254,994

8,364,015

Year ended 31 March 2022

31.3.22

1.4.21

£

£

Cash and cash equivalents

8,364,015

4,796,701

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22

Cash flow

At 31.3.23

£

£

£

Net cash

Cash at bank

8,364,015

(109,021

)

8,254,994

8,364,015

(109,021

)

8,254,994

Debt

Finance leases

(120,566

)

31,688

(88,878

)

(120,566

)

31,688

(88,878

)

Total

8,243,449

(77,333

)

8,166,116

1.	STATUTORY INFORMATION

Pensionhelp 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 General 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.

Basis of consolidation

The consolidated income statement and balance sheet include the financial statements of the company and its subsidiary undertakings. The results of subsidiaries acquired or sold during the period are included in the consolidated income statement from, or up to, the date control passes. Intra-group transactions are eliminated fully on consolidation.

On acquisition of a subsidiary, the subsidiary's assets and liabilities that exist at the date of acquisition are recorded at their fair values reflecting their condition at that date. All changes to those assets and liabilities, and the resulting gains and losses that arise after the group has gained control of the subsidiary are charged to the post acquisition income statement.

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.

Redress provision - The estimated cost of future redress payments is charged to the income statement when the directors become aware of a complaint or potential complaint for past unsuitable advice. In addition, provisions are included where the Financial Conduct Authority commissions a wider review into a specific group of past advice cases.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

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.

Development costs are being amortised evenly over their estimated 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.

Improvements to property

-

33% on cost

Fixtures and fittings

-

33% on cost

Motor vehicles

-

25% on cost

Computer equipment

-

33% on cost