REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2023 |
for |
Old Mill Financial Planning Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 30 June 2023 |
for |
Old Mill Financial Planning Limited |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Contents of the Financial Statements |
for the Year Ended 30 June 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Income Statement | 11 |
Other Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Notes to the Financial Statements | 15 |
Old Mill Financial Planning Limited |
Company Information |
for the Year Ended 30 June 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
5 Barnfield Crescent |
Exeter |
Devon |
EX1 1QT |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Strategic Report |
for the Year Ended 30 June 2023 |
The directors present their strategic report for the year ended 30 June 2023. |
REVIEW OF BUSINESS |
The company started trading in October 2021 following the successful restructure of Old Mill Financial Planning LLP and other Old Mill LLPs into a new group under Old Mill Topco Ltd. Accordingly, this is the first time statutory accounts have been prepared for a full 12-month period. |
It is fair to say that the economic conditions (both in the UK and around the world) made the year to 30 June 2023 an especially challenging one. Uncertainty in respect of inflation and interest rates, plus political upheaval in the UK and the war in Europe have all contributed to a weaker than expected performance. That being said, the company is fortunate to be able to build on its many years of highly successful trading as Old Mill Financial Planning LLP. For example, we have a wide range of loyal clients plus an exceptional employee base that services them, which together have helped us to weather the storms of the last year better than many financial planning businesses. |
Of particular benefit here is our ability to develop long-lasting, meaningful relationships with our clients, based on a key differentiator between Old Mill and our competitors - it is about the client and the goals they want to achieve. Or put another way, money is not the end game. |
The challenges of the year are reflected in our financial key performance indicators, being: |
Income for the year ended 30 June 2023 of £8,231,462 (2022 - £5,840,952) |
Net profit for the year ended 30 June 2023 of £1,186,585 (2022 - £1,257,698) |
Net assets as of 30 June 2023 of £2,224,900 (2022 - £2,482,753) |
Assets under management increased by just over 5% to £696m. The Directors consider this to be a reasonable increase, against the backdrop of a flat economy and uncertainty in the markets. |
As well as income growth and profitability, the directors will also continue to monitor other Key Performance Indicators relevant to the success of the business. |
These will include: |
1. Employee engagement |
2. Recruitment rates |
3. Client satisfaction |
4. Gross profit and gross margin |
5. Cash generation |
6. Compliance with industry-specific regulations |
Notable other highlights over the period include: |
Appointment of Amanda Browning as our new Head of Wealth Management, which includes Financial Planning. |
Being nominated as a "Women in Finance" Awards Finalist. |
Widespread media coverage, including editorial features in both the Daily Mail and Daily Express. |
PRINCIPAL RISKS AND UNCERTAINTIES |
As is often the case for a people business such as our own, the key to being successful lies with our employees. The employment market remains highly competitive, but it is vital that we can retain and recruit outstanding talent. We manage the risk by providing a highly competitive range of salary and benefits, both of which we are continually benchmarking against the wider marketplace. We also have a strong commitment to the training and development of our people, giving them the opportunities they want for rewarding and successful careers. |
The broader economic challenges, and in particular turbulent and unpredictable stock markets, are at the forefront of our risk planning at the moment. More recently, these macro risks have been compounded by the increase in conflicts around the world, notably in Europe and the Middle East. However, we have an investment committee, which includes third-party expertise, that meets regularly to help advise us on how best to manage this, and also have evolved our business model over the years to help reduce our exposure to market fluctuations. |
As with any regulated industry, there is the risk of claim related costs. This risk is managed in part by having a strong focus on technical training and ongoing improvement for our people, which in turn leads to a high standard of client service. This is evidenced by the fact that we are currently working with the regulator as lead architect on a client outcomes project. In addition, we have a robust PI policy in place to help manage risk in this area. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Strategic Report |
for the Year Ended 30 June 2023 |
SECTION 172(1) STATEMENT |
STAKEHOLDER ENGAGEMENT AND PROMOTING SUCCESS OF OLD MILL FINANCIAL PLANNING LTD |
Each of the Directors is mindful of their duties under section 172 (s172) to run the company for the benefit of its shareholder, and in doing so, to take into account the long-term impact of any decisions on stakeholder relationships and the impact of its activities on its reputation for high standards of business conducted. This statement addresses the ways in which we as a Board fulfil this responsibility. |
Clients |
The comprehensive range of Financial Planning services provided by Old Mill Financial Planning Ltd means that our clients are able to use us to help them manage their finances in order to both realise their lifestyle ambitions and ensure they have the level of financial security they desire. These services include, amongst others, cash-flow modelling, tax planning, investment planning, trust planning and later life planning. |
Given the importance our clients attach to our services, we are committed to continually looking for new ways to improve service levels, be it through investing in technology or recruitment of new specialist advisers. |
We also regularly obtain feedback from our clients on services levels, both via our Client Advisory Panels and the use of client surveys. |
Employees |
The expertise, commitment, loyalty and dedication of our people are the most important drivers of our long term, sustainable success. Accordingly, we are firmly committed to ensuring equal opportunities and equal access to career development for everyone who works for Old Mill Financial Planning Ltd. We are proud that life in Old Mill Financial Planning Ltd is heavily influenced by our core values of Open-minded, Passionate and Lovely to work with, and we believe strongly in having open engagement with all employees across the Company. |
Our employee engagement starts even before an employee's first day with the company - every new joiner receives a welcome phone call the week before they start. |
In terms of ongoing engagement, there are regular team social events, ranging from go-karting to quiz nights to team meals out. |
We hold quarterly presentations for all employees, which is an opportunity to update them on business performance, strategic initiatives and year-to-date financial results. We also involve our people in the ongoing development of the business - for example, via our annual Festival of Financial Planning. |
We also consider it important to promote and celebrate the successes and achievements of our employees. For example, every year we hold a "Long service and Exam passes" celebratory lunch in November. |
Shareholders |
Old Mill Financial Planning Ltd has only one shareholder, being Old Mill Topco Ltd. There is regular communication between the management of the two companies to help with the delivery of both day-to-day business objectives as well as longer terms strategic goals. For example, the non-executive board members of Old Mill Topco Ltd have regular contact with the directors of Old Mill Financial Planning Ltd to obtain their input on business performance and strategic decision making. |
Suppliers |
We are committed to treating our suppliers in the same way that we like our own clients to treat Old Mill Financial Planning Ltd. In particular, we operate a system of twice-monthly supplier payment runs to ensure invoices are paid on a timely basis. This is particularly important for all the small, local businesses that supply Old Mill Financial Planning Ltd. |
Community |
Along with the rest of the Old Mill Group, Old Mill Financial Planning Ltd is firmly rooted in the South West, and accordingly links with our local community are vitally important to us. Indeed, many of our employees and clients regularly socialise together away from work, for example at charity events. |
We frequently undertake events to support local charities (for example, sponsored sky-dives), and also provide support and sponsorship to local clubs, charities and events. Employees of Old Mill Financial Planning Ltd join colleagues from the rest of the Old Mill Group in supporting the Somerset Community Foundation (plus related foundations in Devon and Wiltshire). Old Mill has its own charitable fund, with a charitable giving programme that is supported by the Foundation. |
The environment |
In common with the rest of the Old Mill Group, Old Mill Financial Planning Ltd is committed to improving our carbon footprint. For example, our Wells Office is fitted with solar panels, and every office is fully equipped with a range of recycling bins. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Strategic Report |
for the Year Ended 30 June 2023 |
Future developments in this area that are under consideration include achieving B Corporation status and the provision of an electric car scheme for our employees. |
CONCLUSION |
Despite the tough economic conditions, the Directors consider Old Mill Financial Planning Ltd to have had a good year. The business remains on track to deliver on its long term objectives, both financial and non-financial. |
ON BEHALF OF THE BOARD: |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Report of the Directors |
for the Year Ended 30 June 2023 |
The directors present their report with the financial statements of the company for the year ended 30 June 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of financial advisers. |
DIVIDENDS |
Interim dividends per share were paid as follows: |
£0.000879 | - 31 July 2022 |
£0.002949 | - 28 February 2023 |
£0.002284 | - 21 April 2023 |
£0.006112 |
The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 30 June 2023 will be £ |
Interim dividends paid in the period to 30 June 2022 totalled £350,000. |
FUTURE DEVELOPMENTS |
The Directors will continue to target strong year-on-year growth for the business. In the main, this will be achieved by continuing to focus on providing a fully-rounded Financial Planning service to our clients, which will be underpinned by the retention and recruitment of high-quality people. The Directors will ensure there is sufficient investment (be it in people, services or technology) to enable the business to meet its growth targets. |
The Directors will also remain alert to acquisitions should such opportunities arise. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
FINANCIAL INSTRUMENTS |
The Directors are responsible for monitoring financial risk. |
The Directors consider the business to have a level of exposure that is normal for the sector in terms of price, credit, liquidity and cash flow risks, and are committed to reducing risks in all these areas where possible. For example, significant time and money is being invested in improving the processes for forecasting the timing of income receipts over the course of the financial year. In particular, this will help manage risks around liquidity and cash flows when there is uncertainty in the financial markets. |
The company does not enter into any formally designated hedging arrangements. |
QUALIFYING THIRD PARTY INDEMNITY PROVISIONS |
The company has made qualifying third-party indemnity provisions for the benefit of its directors. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Report of the Directors |
for the Year Ended 30 June 2023 |
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; |
- | state whether applicable 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. |
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 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 company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Old Mill Financial Planning Limited |
Opinion |
We have audited the financial statements of Old Mill Financial Planning Limited (the 'company') for the year ended 30 June 2023 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 30 June 2023 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. |
Report of the Independent Auditors to the Members of |
Old Mill Financial Planning Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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. |
Report of the Independent Auditors to the Members of |
Old Mill Financial Planning Limited |
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. Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
- | the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
- | we identified the laws and regulations applicable to the Company through discussions with the directors and other management, and from our commercial knowledge and experience; |
- | we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation, employment, health and safety legislation and the FCA; |
- | we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing correspondence with industry regulators, and inspecting legal correspondence; and |
- | identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. |
We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
- | making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
- | considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
To address the risk of fraud through management bias and override of controls, we: |
- | performed analytical procedures to identify any unusual or unexpected relationships; |
- | tested journal entries to identify unusual transactions; |
- | assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and |
- | investigated the rationale behind significant or unusual transactions. |
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
- | agreeing financial statement disclosures to underlying supporting documentation; |
- | reading the minutes of meetings of those charged with governance; |
- | enquiring of management as to actual and potential litigation and claims; and |
- | reviewing correspondence with HMRC, relevant regulators, and the Company's legal advisors. |
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or 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. |
Report of the Independent Auditors to the Members of |
Old Mill Financial Planning Limited |
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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
5 Barnfield Crescent |
Exeter |
Devon |
EX1 1QT |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Income Statement |
for the Year Ended 30 June 2023 |
Period |
13.8.21 |
Year Ended | to |
30.6.23 | 30.6.22 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT | 5 |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT BEFORE TAXATION |
Tax on profit | 7 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Other Comprehensive Income |
for the Year Ended 30 June 2023 |
Period |
13.8.21 |
Year Ended | to |
30.6.23 | 30.6.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Balance Sheet |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
12 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 14 |
Retained earnings | 15 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Statement of Changes in Equity |
for the Year Ended 30 June 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2023 |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements |
for the Year Ended 30 June 2023 |
1. | STATUTORY INFORMATION |
Old Mill Financial Planning Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). Monetary amounts in these financial statements are rounded to the nearest £. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions 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; |
• | the requirements of disclosing Key Management Personnel Compensation. |
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. |
Critical accounting judgements and key sources of estimation uncertainty |
In the application of the Company's accounting policies, which are described below, management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 accounted for in the period in which the estimate is revised if the revision only affects that period, or in the period of revision and future periods if the revision affects both current and future periods. |
The following judgements have had the most significant effect on amounts recognised in the financial statements: |
The value of unbilled commission income is shown within prepayments and accrued income. In arriving at the carrying value shown in the balance sheet, judgements are made about the estimated billable value on a case by case basis.The provision for unbilled commission at the year end was £601,315 (2022 £576,614). |
There is an element of estimation and judgement made by the company when considering the bad debt provision included within trade debtors. The value of the client balances recoverable is considered on a case by case basis. The provision for bad debts against the trade debtor balance at the year end was £30,453 (2022 £10,060). |
In determining the estimated life of goodwill the company has considered the average life of a client and concluded periods of 8 and 20 years to be appropriate. Each year the company reviews this policy to ensure it remains appropriate. For further information in respect of year end balances refer to note 9. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Fee income represents revenue earned under a wide variety of contracts to provide professional services. Revenue is recognised as earned when, and to the extent that, the firm obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax. |
Revenue is generally recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations. For such contracts the amount of revenue reflects the accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors. |
Goodwill |
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirers interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of comprehensive income over its useful economic life. |
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years. |
The estimated useful lives range as follows; |
Goodwill - 8 years & 20 years |
Financial instruments |
(i) Financial assets |
Basic financial assets, including trade and other debtors are initially recognised at the transaction price and therefore stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the debtors are stated at cost less impairment losses for bad and doubtful debts. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors, bank loans and other loans are initially recognised at transaction price, unless the arrangement constitutes a financing transaction. |
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Taxation |
Taxation for the year comprises of current 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 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. |
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. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. |
Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
Period |
13.8.21 |
Year Ended | to |
30.6.23 | 30.6.22 |
£ | £ |
An analysis of turnover by geographical market is given below: |
Period |
13.8.21 |
Year Ended | to |
30.6.23 | 30.6.22 |
£ | £ |
United Kingdom |
Europe |
North America | - | 7,403 |
Other | 7,470 | 3,025 |
4. | EMPLOYEES AND DIRECTORS |
Period |
13.8.21 |
Year Ended | to |
30.6.23 | 30.6.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
4. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
Period |
13.8.21 |
Year Ended | to |
30.6.23 | 30.6.22 |
Directors | 4 | 4 |
Productive | 30 | 30 |
Support | 33 | 32 |
Period |
13.8.21 |
Year Ended | to |
30.6.23 | 30.6.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director for the year ended 30 June 2023 is as follows: |
Year Ended |
30.6.23 |
£ |
Emoluments etc |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
Period |
13.8.21 |
Year Ended | to |
30.6.23 | 30.6.22 |
£ | £ |
Goodwill amortisation |
Auditors' remuneration |
Bad debts | ( |
) |
In accordance with SI 2008/489 the company has not disclosed the fees payable to the company's auditors for 'Other services' as this information is included in the consolidated financial statements of Old Mill Topco Limited. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
13.8.21 |
Year Ended | to |
30.6.23 | 30.6.22 |
£ | £ |
Intercompany loan and other |
interest |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
Period |
13.8.21 |
Year Ended | to |
30.6.23 | 30.6.22 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
Period |
13.8.21 |
Year Ended | to |
30.6.23 | 30.6.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Utilisation of tax losses | ( |
) |
Total tax charge | 304,438 | 290,015 |
The rate of Corporation tax changed to 25% on 1st April 2023. The average Corporation tax rate for the year was 20.5%. |
8. | DIVIDENDS |
Period |
13.8.21 |
Year Ended | to |
30.6.23 | 30.6.22 |
£ | £ |
Ordinary shares of £0.01 each |
Interim |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
9. | INTANGIBLE FIXED ASSETS |
Goodwill |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 |
AMORTISATION |
At 1 July 2022 |
Amortisation for year |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
Amortisation is included in administrative expenses within the financial statements. |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Prepayments and accrued income |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Other loans (see note 13) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
VAT | 12,245 | 9,438 |
Other creditors |
Accruals and deferred income |
12. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Amounts owed to group undertakings |
Other creditors |
Other creditors relate to deferred consideration payable as part of the acquisition of Old Mill Financial Planning LLP (now Old Mill Financial Planning 2021 LLP). This is repayable via instalments. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
13. | LOANS |
An analysis of the maturity of loans is given below: |
30.6.23 | 30.6.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
14. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.23 | 30.6.22 |
value: | £ | £ |
Ordinary | £0.01 | 1,865,070 | 1,865,070 |
186,506,954 Ordinary Shares of £0.01 each were allotted with full voting rights. Each share ranks equally for any votes or dividends declared and upon winding up each share ranks equally for any distribution made. The shares are non redeemable. |
15. | RESERVES |
Retained |
earnings |
£ |
At 1 July 2022 |
Profit for the year |
Dividends | ( |
) |
At 30 June 2023 |
16. | ULTIMATE PARENT COMPANY |
Old Mill Topco Limited is regarded by the directors as being the company's ultimate parent company. |
The company is included in the consolidated financial statements of its parent, Old Mill Topco Limited, whose registered office is Maltravers House, Petters Way, Yeovil, BA20 1SH. |
17. | OTHER FINANCIAL COMMITMENTS |
The Company has an inter-company guarantee limited to £9,500,000 with other related parties in respect of a group banking arrangement. |
Old Mill Financial Planning Limited (Registered number: 13565826) |
Notes to the Financial Statements - continued |
for the Year Ended 30 June 2023 |
18. | RELATED PARTY DISCLOSURES |
Balances owed to or from other group members are disclosed in notes 10, 11 and 12. |
During the year the company loaned and borrowed monies from Limited Liability Partnerships which are under common control. |
As at 30 June 2023 the balances are as follows: |
Amounts owed to the company of £32,758 (2022: £83,697). |
Amounts owed to LLP's of £Nil (2022: £11). |
The movement in these balances represent cash repayments of the amounts owed to/from the company in the year. |
These amounts are unsecured, interest free, have no fixed date for repayment and are repayable on demand. |
On 25 October 2021 the company purchased the whole of the goodwill, trade and assets at book value from Old Mill Financial Planning LLP (now Old Mill Financial Planning 2021 LLP). |
The purchase was mainly financed by an unsecured loan from the holding company. At the year end the balance due to the holding company was £3,789,100 (2022: £4,712,838). Interest on this loan is being charged at 2.95% above base rate and the end date for repayment is June 2028. |
19. | ULTIMATE CONTROLLING PARTY |