J H Lowson & Company Limited - Accounts

Registered number

08013456

J H Lowson & Company Limited

Report and Financial Statements

31 March 2017

J H Lowson & Company Limited
Report and accounts
Contents
	Page
Company information	1
Directors' report	2
Strategic report	3
Independent auditors' report	4
Income statement	5
Statement of comprehensive income	6
Statement of financial position	7
Statement of changes in equity	8
Statement of cash flows	9
Notes to the financial statements	10-15

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

3rd Floor

Rosemary House

61 North Road

Lancaster

LA1 1LU

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 2017.
Principal activities
The company's principal activity during the year continued to be investment management and independent financial advisory services. It is making steady progress in line with director's forecasts.
Financial instrument 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 (Financial Reporting Standard 102 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 5 May 2017 and signed on its behalf.

J H Lowson

Director

J H Lowson & Company Limited
Strategic Report
The directors present their strategic report for the year ended 31 March 2017.
Review of the business
The company offers investment management and independent financial advisory services to consumers and financial advisors.
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 £18,800 (2016: £20,121). The shareholders’ funds total £79,460 (2016: £70,698). Dividends of £5,000 were paid during the year and a further £7,500 after the year end.
The company’s income and turnover increased during the year. However, the company's overheads also increased, so overall there was a slight reduction in profit.
Key performance indicators (‘KPIs’)
The Board monitors the progress of the company by reference to the following KPIs:
			2016	2016
Investment Management Fees			26,193	25,708	Company’s fees levied on the funds under management.
Fees and Commissions			56,754	21,300	Commissions received from investment services provided.
Consultancy fees			28,340	-	Fees from consulting services provided.
Retained Profit			18,800	20,121	Balance of Revenue less Expenditure for the period.
Cash and Bank Reserves			55,323	50,202	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 5 May 2017 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 2017 which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows 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), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

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/auditscopeukprivate

Opinion on the accounts

In our opinion the accounts:
●	give a true and fair view of the state of the company's affairs as at 31 March 2017 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 Directors' Report and the Strategic Report 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 accounts 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
Accountants and Statutory Auditors		Lancaster
5 May 2017		LA1 1RD

J H Lowson & Company Limited
Income Statement
for the year ended 31 March 2017
Notes						2017		2016
£							£
Turnover				2		111,287		47,008
Cost of sales						(13,910)		(14,657)
Gross profit						97,377		32,351
Administrative expenses						(78,729)		(12,457)
Operating profit				3		18,648		19,894
Interest receivable						152		227
Profit on ordinary activities before taxation						18,800		20,121
Tax on profit on ordinary activities				6		(5,038)		(4,379)
Profit for the financial year						13,762		15,742
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 10 to 15 form an integral part of these financial statements .

J H Lowson & Company Limited
Statement of comprehensive income
for the year ended 31 March 2017
Notes					2017		2016
£						£
Profit for the financial year					13,762		15,742
Other comprehensive income
Total comprehensive income for the year					13,762		15,742

J H Lowson & Company Limited
Statement of Financial Position
as at 31 March 2017
Notes				2017			2016
£					£
Fixed assets
Intangible assets	7			22,500			28,500
Tangible assets	8			4,959			4,652
				27,459			33,152
Current assets
Debtors	9		6,000			6,740
Cash at bank and in hand			55,323			50,202
			61,323			56,942
Creditors: amounts falling due within one year	10		(8,697)			(17,874)
Net current assets				52,626			39,068
Total assets less current liabilities				80,085			72,220
Creditors: amounts falling due after more than one year	11			-			(1,000)
Provisions for liabilities
Deferred taxation	13			(625)			(522)
Net assets				79,460			70,698
Capital and reserves
Called up share capital	14			45,000			45,000
Profit and loss account	15			34,460			25,698
Total equity				79,460			70,698
J H Lowson
Director
Approved by the board on 5 May 2017
The notes on pages 10 to 15 form an integral part of these financial statements .

J H Lowson & Company Limited
Statement of Changes in Equity
for the year ended 31 March 2017
Share			Share		Other		Profit		Total
capital			premium		reserves		and loss
account
£			£		£		£		£
At 1 April 2015		45,000		-		-		9,956		54,956
Profit for the financial year								15,742		15,742
At 31 March 2016		45,000		-		-		25,698		70,698
At 1 April 2016		45,000		-		-		25,698		70,698
Profit for the financial year								13,762		13,762
Dividends								(5,000)		(5,000)
At 31 March 2017		45,000		-		-		34,460		79,460

J H Lowson & Company Limited
Statement of Cash Flows
for the year ended 31 March 2017
Notes			2017		2016
£				£
Operating activities
Profit for the financial year			18,648		19,894
Adjustments for:
Depreciation			788		102
Amortisation of goodwill			6,000		1,500
Decrease/(increase) in debtors			740		(4,885)
Increase in creditors			745		667
			26,921		17,278
Interest received			152		227
Corporation tax paid			(3,857)		(2,454)
Cash generated by operating activities			23,216		15,051
Investing activities
Payments to acquire intangible fixed assets			-		(30,000)
Payments to acquire tangible fixed assets			(1,095)		(4,754)
Cash used in investing activities			(1,095)		(34,754)
Financing activities
Equity dividends paid			(5,000)		-
Proceeds from new loans			-		15,000
Repayment of loans			(12,000)		(2,000)
Cash (used in)/generated by financing activities			(17,000)		13,000
Net cash generated/(used)
Cash generated by operating activities			23,216		15,051
Cash used in investing activities			(1,095)		(34,754)
Cash (used in)/generated by financing activities			(17,000)		13,000
Net cash generated/(used)			5,121		(6,703)
Cash and cash equivalents at 1 April			50,202		56,905
Cash and cash equivalents at 31 March			55,323		50,202
Cash and cash equivalents comprise:
Cash at bank			55,323		50,202

J H Lowson & Company Limited
Notes to the Accounts
for the year ended 31 March 2017
1	Summary of significant accounting policies
	Basis of preparation
	The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.
	Turnover
	The company’s turnover represents the value, of services supplied to clients during the period. Turnover represents fees and commissions, paid to the company during the year, including commission earned and paid on policies proposed and accepted on risk before the year end, wholly conducted in the United Kingdom
	Intangible fixed assets
	Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses over their economic lives as follows:-
	Goodwill			straight line over economic life of 5 years
	Tangible fixed assets

	Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
	Freehold buildings			over 50 years
	Leasehold land and buildings			straight line over the lease term of 10 years
	Plant and machinery			25% reducing balance
	Fixtures, fittings, tools and equipment			25% reducing balance

	Taxation
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
2	Analysis of turnover					2017		2016
£							£
	Investment management services					26,192		25,708
	Fees and commissions					56,755		21,300
	Consultancy fees					28,340		-
						111,287		47,008
	By geographical market:
	UK					111,287		47,008
3	Operating profit					2017		2016
£							£
	This is stated after charging:
	Depreciation of owned fixed assets					788		102
	Amortisation of goodwill					6,000		1,500
	Operating lease rentals - land and buildings					12,485		1,572
	Auditors' remuneration for audit services					1,330		1,250
4	Directors' emoluments					2017		2016
£							£
	Emoluments					19,060		-
	Highest paid director:
	Emoluments					11,000		-
5	Staff costs					2017		2016
£							£
	Wages and salaries					33,150		2,000
	Average number of employees during the year					Number	Number
	Directors					2		2
	Administration					1		1
						3		3
6	Taxation					2017		2016
£							£
	Analysis of charge in period
	Current tax:
	UK corporation tax on profits of the period					4,935		3,857
	Deferred tax:
	Origination and reversal of timing differences					103		522
	Tax on profit on ordinary activities					5,038		4,379
	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:
						2017		2016
£							£
	Profit on ordinary activities before tax					18,800		20,121
	Standard rate of corporation tax in the UK					20%		20%
£							£
	Profit on ordinary activities multiplied by the standard rate of corporation tax					3,760		4,024
	Effects of:
	Expenses not deductible for tax purposes					36		48
	Capital allowances for period in excess of depreciation					1,139		(215)
	Current tax charge for period					4,935		3,857
7	Intangible fixed assets							£
	Goodwill:
	Cost
	At 1 April 2016							30,000
	At 31 March 2017							30,000
	Amortisation
	At 1 April 2016							1,500
	Provided during the year							6,000
	At 31 March 2017							7,500
	Carrying amount
	At 31 March 2017							22,500
	At 31 March 2016							28,500
	Goodwill is being written off in equal monthly instalments over its estimated economic life of 5 years.
8	Tangible fixed assets
				Land and buildings		Fixtures, fittings, tools and equipment		Total
				At cost		At cost
£					£		£
	Cost or valuation
	At 1 April 2016			4,034		720		4,754
	Additions			-		1,095		1,095
	At 31 March 2017			4,034		1,815		5,849
	Depreciation
	At 1 April 2016			67		35		102
	Charge for the year			403		385		788
	At 31 March 2017			470		420		890
	Carrying amount
	At 31 March 2017			3,564		1,395		4,959
	At 31 March 2016			3,967		685		4,652
9	Debtors					2017		2016
£							£
	Trade debtors					2,055		-
	Other debtors					-		17
	Prepayments and accrued income					3,945		6,723
						6,000		6,740
10	Creditors: amounts falling due within one year					2017		2016
£							£
	Loan repayable by instalments					1,000		12,000
	Corporation tax					4,935		3,857
	Other taxes and social security costs					312		-
	Other creditors					-		17
	Accruals and deferred income					2,450		2,000
						8,697		17,874
11	Creditors: amounts falling due after one year					2017		2016
£							£
	Loan repayable by instalments					-		1,000
12	Loans					2017		2016
£							£
	Analysis of maturity of debt:
	Within one year or on demand					1,000		12,000
	Between one and two years					-		1,000
						1,000		13,000
13	Deferred taxation					2017		2016
£							£
	Accelerated capital allowances					625		522
						2017		2016
£							£
	At 1 April					522		-
	Charged to the profit and loss account					103		522
	At 31 March					625		522
14	Share capital	Nominal		2017		2017		2016
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£1 each		45,000		45,000		45,000
15	Profit and loss account					2017		2016
£							£
	At 1 April					25,698		9,956
	Profit for the financial year					13,762		15,742
	Dividends					(5,000)		-
	At 31 March					34,460		25,698
16	Dividends					2017		2016
£							£
	Dividends on ordinary shares (note 15)					5,000		-
	Dividends amounting to £7,500 have been paid since the year end.
17	Other financial commitments
	Total future minimum lease payments under non-cancellable operating leases:
		Land and buildings		Land and buildings	Other		Other
		2017		2016		2017		2016
£			£		£		£
	Falling due:
	within two to five years	48,367		60,852		-		-
18	Controlling party
	The company is ultimately controlled by J H Lowson.
19	Presentation currency
	The financial statements are presented in Sterling.
20	Legal form of entity and country of incorporation
	J H Lowson & Company Limited is a private company limited by shares and incorporated in England.
21	Principal place of business
	The address of the company's principal place of business and registered office is:
	3rd Floor
	Rosemary House
	61 North Road
	Lancaster
	LA1 1LU