Northwest Law Services Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 01623494 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 August 2023

for

Northwest Law Services Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

L M Evans

P L Roberts

SECRETARY:

P L Roberts

REGISTERED OFFICE:

Suite C2c, The Quadrant

Sealand Road

Chester

Cheshire

CH1 4QR

REGISTERED NUMBER:

01623494 (England and Wales)

ACCOUNTANTS:

Voisey & Co LLP

Chartered Accountants

8 Winmarleigh Street

Warrington

Cheshire

WA1 1JW

FIXED ASSETS

Tangible assets

4

22,139

21,353

CURRENT ASSETS

Stocks

954,329

847,168

Debtors

5

501,131

399,139

Cash at bank and in hand

147,407

85,836

1,602,867

1,332,143

CREDITORS

Amounts falling due within one year

6

1,060,552

953,843

NET CURRENT ASSETS

542,315

378,300

TOTAL ASSETS LESS CURRENT LIABILITIES

564,454

399,653

CREDITORS

Amounts falling due after more than one year

7

(55,000

)

(85,000

)

PROVISIONS FOR LIABILITIES

(2,812

)

(3,465

)

NET ASSETS

506,642

311,188

CAPITAL AND RESERVES

Called up share capital

10

100

100

Retained earnings

11

506,542

311,088

SHAREHOLDERS' FUNDS

506,642

311,188

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2023.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2023 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

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

(b)

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

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 18 April 2024 and were signed on its behalf by:

L M Evans - Director

P L Roberts - Director

1.	STATUTORY INFORMATION

Northwest Law Services Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Monetary amounts in these financial statements shall be rounded to the nearest £.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The key assumptions concerning the future and other key sources of estimation include uncertainties at the reporting date, which may have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial periods, are discussed below.

Turnover

Revenue from the sale of services shall be recognised when all the following conditions have been satisfied:

- the entity has transferred to the buyer the significant risks and rewards of ownership of the services;

- the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the services sold;

- the amount of revenue can be measured reliably;

- it is probable that the economic benefits associated with the transaction will flow to the entity;

- the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue is not recognised if its recoverability is considered to be uncertain.

Revenue for services rendered is recorded in the profit & loss when the service has been provided to the customer.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Fixtures and fittings

-

15% on reducing balance

Computer equipment

-

33% on cost

Stocks and work in progress

Work in progress is stated as the recoverable amount for work undertaken not invoiced at the year end date . This is calculated at applicable charge out out rates adjusted for expected recovery.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

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.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with bank, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the net asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised costs using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publically traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Short-term employee benefits

The costs of the short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 20 (2022 - 20 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 September 2022

212,294

106,094

318,388

Additions

589

6,907

7,496

At 31 August 2023

212,883

113,001

325,884

DEPRECIATION

At 1 September 2022

193,556

103,479

297,035

Charge for year

2,855

3,855

6,710

At 31 August 2023

196,411

107,334

303,745

NET BOOK VALUE

At 31 August 2023

16,472

5,667

22,139

At 31 August 2022

18,738

2,615

21,353

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.23

31.8.22

£

£

Trade debtors

478,865

375,395

Prepayments

22,266

23,744

501,131

399,139

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.8.23

31.8.22

£

£

Bank loans and overdrafts

302,307

307,365

Hire purchase contracts (see note 8)

-

2,649

Amounts owed to group undertakings

432,100

6,285

Tax

100,278

86,355

Social security and other taxes

215,301

204,619

Other creditors

3,567

4,220

Accrued expenses

6,999

342,350

1,060,552

953,843

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.8.23

31.8.22

£

£

Bank loans - 1-2 years

30,000

30,000

Bank loans - 2-5 years

25,000

55,000

55,000

85,000

8.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

31.8.23

31.8.22

£

£

Net obligations repayable:

Within one year

-

2,649

Non-cancellable operating

leases

31.8.23

31.8.22

£

£

Within one year

21,368

3,866

Between one and five years

35,024

-

56,392

3,866

9.	SECURED DEBTS

The following secured debts are included within creditors:

31.8.23

31.8.22

£

£

Bank overdrafts

272,307

268,837

Bank loans

85,000

123,528

Hire purchase contracts

-

2,649

357,307

395,014

The bank overdraft is subject to an unscheduled mortgage debenture incorporating a fixed and floating charge over all current and future assets of the company.

The bank loan is guaranteed by way of debenture by the ultimate parent company NWL (Group) Limited.

10.	CALLED UP SHARE CAPITAL

Allotted and issued:

Number:

Class:

Nominal

31.8.23

31.8.22

value:

£

£

100

Share capital 1

£1

100

100

11.

RESERVES

Retained

earnings

£

At 1 September 2022

311,088

Profit for the year

365,933

Dividends

(170,479

)

At 31 August 2023

506,542

12.	ULTIMATE CONTROLLING PARTY

The controlling party is Northwest Law Services (Holdings)Limited.

The ultimate controlling party is NWL (Group) Limted.