J H Lowson & Company Limited - Accounts

Registered number

08013456

J H Lowson & Company Limited

Report and Financial Statements

31 March 2015

J H Lowson & Company Limited
Report and accounts
Contents
	Page
Company information	1
Directors' report	2
Strategic report	3
Independent auditors' report	4
Profit and loss account	5
Balance sheet	6
Cash flow statement	7
Notes to the financial statements	8-10

J H Lowson & Company Limited

Company Information

Directors

J H Lowson

R J Lowson

Auditors

Paul Clegg & Company

Riverside Offices

2nd Floor

26 St George's Quay

Lancaster

LA1 1RD

Bankers

Barclays Bank PLC

38 Market Street

Lancaster

LA1 1HR

Registered office

19 Roosevelt Avenue

Lancaster

LA1 5EJ

Registered number

08013456

J H Lowson & Company Limited
Registered number:				08013456
Directors' Report
The directors present their report and financial statements for the year ended 31 March 2015.
Principal activities and review of the business
The company's principal activity is investment management services. It is making steady progress in line with director's forecasts.
Financial risk
Due to the sector in which the company operates, many of the financial risks such as price and credit risk are minimised. In addition, the company operates exclusively within the United Kingdom. The directors operate tight control over expenditure to ensure that both liquidity and cash flow risks are minimised. This will continue until such time as the directors do not consider this policy to be in the best interests of the company.
Directors
The following persons served as directors during the year:
	J H Lowson
	R J Lowson
Directors' responsibilities

The directors are responsible for preparing the report and 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 estimates that are reasonable and prudent;
●	state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
●	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.

Disclosure of information to auditors

Each person who was a director at the time this report was approved confirms that:
●	so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and
●	he 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 auditor is aware of that information.

This report was approved by the board on 22 April 2015 and signed on its behalf.

J H Lowson

Director

J H Lowson & Company Limited
Strategic Report
For the Year Ended 31st March 2015
The directors present their strategic report for the year ended 31 March 2015.
Review of the business
The company offers investment management services to consumers.
During the year the company increased the number of clients’ it services and turnover grew accordingly. The directors have purposefully ensured that the company’s growth is a gradual process. This ensures the company’s controls and processes are well established to meet what the directors believe to be an increasing market as consumers become more aware and are directed towards this business model.
Results and performance
The results for the period are set out on page 5 and show a profit of £14,501 (2014: £1,887). The shareholders’ funds total £54,956 (2014: £42,909). No dividends were paid or proposed during the year.
The company’s income and turnover increased during the year. This increase, combined with a tight control of overheads is the reason for the improved results.
Key performance indicators (‘KPIs’)
The Board monitors the progress of the company by reference to the following KPIs:
				2015	2014
Investment Management Fees				17,282	4,841	Company’s fees levied on the funds under management.
Retained Profit				14,501	1,887	Balance of Revenue less Expenditure for the period.
Cash and Bank Reserves				56,905	53,531	Balance of cash held in hand and at bank.
Principal risks and uncertainties
Due to the sector in which the company operates, many of the financial risks such as price and credit risk are minimised. The process of risk acceptance and risk management is addressed through a framework of policies, procedures and internal controls. The company has developed a framework for identifying risks which focuses on the management of its capital requirements and the financial resources at its disposal to meet those costs.
Compliance with regulatory, legal and ethical standards is a high priority for the company.
The company operates exclusively within the United Kingdom and has all the usual risks associated with operating a business.
Future developments
The financial services sector has undergone significant changes over the past few years, the culmination of which are beginning to be seen in the market today and will increasingly be felt over the coming months. It is the director’s belief that the company is well placed to take advantage of the opportunities that these changes present and it has the systems and controls in place to do so.
This report was approved by the board on 22 April 2015 and signed on its behalf.
J H Lowson
Director

J H Lowson & Company Limited

Independent auditors' report

to the members of J H Lowson & Company Limited

We have audited the financial statements of J H Lowson & Company Limited for the year ended 31 March 2015 which comprise the Profit and Loss Account, the Balance Sheet, the Cash Flow Statement and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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 an auditors' report 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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the accounts

A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Opinion on the financial statements

In our opinion the financial statements:
●	give a true and fair view of the state of the company's affairs as at 31 March 2015 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.

Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Strategic and Directors' Reports for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
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.
Paul Clegg FCA (senior statutory auditor)		Riverside Offices
for and on behalf of		2nd Floor
Paul Clegg & Company		26 St George's Quay
Chartered Accountants and Statutory Auditors		Lancaster
22 April 2015		LA1 1RD

J H Lowson & Company Limited
Profit and Loss Account
for the year ended 31 March 2015
Notes						2015		2014
£							£
Turnover				2		17,282		4,841
Administrative expenses						(2,965)		(3,126)
Operating profit				3		14,317		1,715
Interest receivable						184		172
Profit on ordinary activities before taxation						14,501		1,887
Tax on profit on ordinary activities				4		(2,454)		(34)
Profit for the financial year						12,047		1,853
Statement of total recognised gains and losses
The company has no recognised gains or losses other than the profit for the above two financial years.
The notes on pages 8 to 10 form an integral part of these financial statements .

J H Lowson & Company Limited
Balance Sheet
as at 31 March 2015
Notes				2015			2014
£					£
Current assets
Debtors	5		1,855			822
Cash at bank and in hand			56,905			53,531
			58,760			54,353
Creditors: amounts falling due within one year	6		(3,804)			(1,444)
Net current assets				54,956			52,909
Total assets less current liabilities				54,956			52,909
Creditors: amounts falling due after more than one year	7			-			(10,000)
Net assets				54,956			42,909
Capital and reserves
Called up share capital	8			45,000			45,000
Profit and loss account	9			9,956			(2,091)
Shareholders' funds	10			54,956			42,909
J H Lowson
Director
Approved by the board on 22 April 2015
The notes on pages 8 to 10 form an integral part of these financial statements .

J H Lowson & Company Limited
Cash Flow Statement
for the year ended 31 March 2015
Notes			2015		2014
£				£
Reconciliation of operating profit to net cash
inflow from operating activities
Operating profit			14,317		1,715
Increase in debtors			(1,033)		(781)
Decrease in creditors			(60)		(440)
Net cash inflow from operating activities			13,224		494
CASH FLOW STATEMENT
Net cash inflow from operating activities			13,224		494
Returns on investments and servicing of finance	11		184		172
Taxation			(34)		-
			13,374		666
Financing	11		(10,000)		-
Increase in cash			3,374		666
Reconciliation of net cash flow to movement in net debt
Increase in cash in the period			3,374		666
Decrease in debt and lease financing			10,000		-
Change in net debt	12		13,374		666
Net funds at 1 April			43,531		42,865
Net funds at 31 March			56,905		43,531

J H Lowson & Company Limited
Notes to the Financial Statements
for the year ended 31 March 2015
1	Accounting policies
	Basis of preparation
	The financial statements have been prepared under the historical cost convention and in accordance with applicable United Kingdom Accounting Standards.
	Turnover
	Turnover represents net commissions and fees receivable by the company for services provided during the year.
2	Analysis of turnover					2015		2014
£							£
	By activity:
	Investment management services					17,282		4,841
	By geographical market:
	UK					17,282		4,841
3	Operating profit					2015		2014
£							£
	This is stated after charging:
	Auditors' remuneration for audit services					840		1,120
	Auditors' remuneration for other services					-		(19)
4	Taxation					2015		2014
£							£
	Analysis of charge in period
	Current tax:
	UK corporation tax on profits of the period					2,454		34
	Tax on profit on ordinary activities					2,454		34
	Factors affecting tax charge for period
	The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
						2015		2014
£							£
	Profit on ordinary activities before tax					14,501		1,887
	Standard rate of corporation tax in the UK					20%		20%
£							£
	Profit on ordinary activities multiplied by the standard rate of corporation tax					2,900		377
	Effects of:
	Utilisation of tax losses					(446)		(343)
	Current tax charge for period					2,454		34
	Factors that may affect future tax charges
	The company has unrelieved trading losses carried forward to set against future trading profits of £nil (2014: £2,229).
5	Debtors					2015		2014
£							£
	Accrued income					1,855		822
6	Creditors: amounts falling due within one year					2015		2014
£							£
	Corporation tax					2,454		34
	Accrued expenses					1,350		1,410
						3,804		1,444
7	Creditors: amounts falling due after one year					2015		2014
£							£
	Amount due for repayment, other than by instalments after more than five years:
	Subordinated loan from directors (interest free)					-		10,000
8	Share capital	Nominal		2015		2015		2014
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£1 each		45,000		45,000		45,000
9	Profit and loss account					2015		2014
£							£
	At 1 April 2014					(2,091)		(3,944)
	Profit for the financial year					12,047		1,853
	At 31 March 2015					9,956		(2,091)
10	Reconciliation of movement in shareholders' funds					2015		2014
£							£
	At 1 April					42,909		41,056
	Profit for the financial year					12,047		1,853
	At 31 March					54,956		42,909
11	Gross cash flows					2015		2014
£							£
	Returns on investments and servicing of finance
	Interest received					184		172
	Financing
	Loan repayments					(10,000)		-
12	Analysis of changes in net debt
		At 1 Apr 2014		Cash flows		Non-cash changes		At 31 Mar 2015
£			£		£		£
	Cash at bank and in hand	53,531		3,374				56,905
	Debt due after 1 year	(10,000)		10,000				-
	Total	43,531		13,374		-		56,905
13	Ultimate controlling party
	The company is ultimately controlled by J H Lowson.