ACCOUNTS - Final Accounts preparation

18 months ended

30 September

BROADSTONE FINANCIAL SOLUTIONS LIMITED - Company Information

Caseware UK (AP4) 2018.0.196 2018.0.196 2018-09-302018-09-30falseThe principal activity of the company is that of financial services in respect of list assurance, pensions, unit trusts and employee benefits.true2017-10-01true 02131269 2017-10-01 2018-09-30 02131269 2018-09-30 02131269 2016-04-01 2017-09-30 02131269 2017-09-30 02131269 c:Director1 2017-10-01 2018-09-30 02131269 d:OfficeEquipment 2017-10-01 2018-09-30 02131269 d:OfficeEquipment 2018-09-30 02131269 d:OfficeEquipment 2017-09-30 02131269 d:OfficeEquipment d:OwnedOrFreeholdAssets 2017-10-01 2018-09-30 02131269 d:Non-currentFinancialInstruments d:UnlistedNon-exchangeTraded 2018-09-30 02131269 d:Non-currentFinancialInstruments d:UnlistedNon-exchangeTraded 2017-09-30 02131269 d:CurrentFinancialInstruments 2018-09-30 02131269 d:CurrentFinancialInstruments 2017-09-30 02131269 d:CurrentFinancialInstruments d:WithinOneYear 2018-09-30 02131269 d:CurrentFinancialInstruments d:WithinOneYear 2017-09-30 02131269 d:UKTax 2017-10-01 2018-09-30 02131269 d:UKTax 2016-04-01 2017-09-30 02131269 d:ShareCapital 2018-09-30 02131269 d:ShareCapital 2017-09-30 02131269 d:RetainedEarningsAccumulatedLosses 2018-09-30 02131269 d:RetainedEarningsAccumulatedLosses 2017-09-30 02131269 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2018-09-30 02131269 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2017-09-30 02131269 c:FRS102 2017-10-01 2018-09-30 02131269 c:Audited 2017-10-01 2018-09-30 02131269 c:FullAccounts 2017-10-01 2018-09-30 02131269 c:PrivateLimitedCompanyLtd 2017-10-01 2018-09-30 02131269 c:SmallCompaniesRegimeForAccounts 2017-10-01 2018-09-30 iso4217:GBP xbrli:pure

Registered number: 02131269

CS FINANCIAL SOLUTIONS (CSFS) LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2018

CS FINANCIAL SOLUTIONS (CSFS) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF CS FINANCIAL SOLUTIONS (CSFS) LIMITED

UNDER SECTION 449 OF THE COMPANIES ACT 2006

Opinion

We have audited the financial statements of CS Financial Solutions (CSFS) Limited (the 'Company') for the year ended 30 September 2018, which comprise the Balance sheet and the related notes, 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 September 2018 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 United Kingdom, including the Financial Reporting Council'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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

∙the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

∙the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report 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

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CS FINANCIAL SOLUTIONS (CSFS) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF CS FINANCIAL SOLUTIONS (CSFS) LIMITED (CONTINUED)

UNDER SECTION 449 OF THE COMPANIES ACT 2006

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Directors' report has 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 Directors' report.

We have nothing to report in respect of the following matters in relation to which 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; or

∙the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a Strategic report.

Responsibilities of directors

As explained more fully in the Directors' responsibilities statement on page 1, 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 is 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.

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CS FINANCIAL SOLUTIONS (CSFS) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE SHAREHOLDERS OF CS FINANCIAL SOLUTIONS (CSFS) LIMITED (CONTINUED)

UNDER SECTION 449 OF THE COMPANIES ACT 2006

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 an Auditors' report 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.

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 Auditors' report.

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 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.

Eifion Roberts (Senior statutory auditor)

for and on behalf of

Langtons Professional Services Limited

The Plaza

100 Old Hall Street

Liverpool

L3 9QJ

25 January 2019

Page 3

CS FINANCIAL SOLUTIONS (CSFS) LIMITED

REGISTERED NUMBER: 02131269

BALANCE SHEET

AS AT 30 SEPTEMBER 2018

		2018		Re-stated 2017
Note		£		£

Fixed assets
Tangible assets	5		39,949		53,261
Investments	6		23,500		23,500
			63,449		76,761
Current assets
Debtors: amounts falling due within one year	7	1,329,796		782,065
Cash at bank and in hand	8	97,186		196,926
		1,426,982		978,991
Creditors: amounts falling due within one year	9	(986,018)		(808,498)
Net current assets			440,964		170,493
Total assets less current liabilities			504,413		247,254

Net assets			504,413		247,254

Capital and reserves
Called up share capital	670,000	670,000
Profit and loss account	(165,587)	(422,746)
	504,413	247,254

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

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

The Company has opted not to file the statement of income and retained earnings in accordance with provisions applicable to companies subject to the small companies' regime.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 January 2019.

P G McGuckin

Director

The notes on pages 5 to 12 form part of these financial statements.

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CS FINANCIAL SOLUTIONS (CSFS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2018

1.	General information

The company is a private company limited by shares, which is incorporated under the Companies Act 2006 and registered in England and Wales (no. 02131269). The address of the registered office is 20 Chapel Street, Liverpool, England, L3 9AG.
These financial statements present information about the company as an individual undertaking. It is a subsidiary of CS Financial Solutions Holdings Limited. The principal activity of the company is that of financial services in respect of list assurance, pensions, unit trusts and employee benefits.
The presentation currency of these financial statements is £ sterling; the financial statements are rounded to the nearest £.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services and commissions
Revenue is recognised in the period in which the services are provided when all of the following conditions are satisfied:
- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due;
- the stage of completion at the end of the reporting period can be measured reliably; and
- the costs incurred and the costs to complete can be measured reliably.

2.3

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of income and retained earnings on a straight line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

The Company has taken advantage of the optional exemption available on transition to FRS 102 which allows lease incentives on leases entered into before the date of transition to the standard 01 April 2016 to continue to be charged over the period to the first market rent review rather than the term of the lease.

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CS FINANCIAL SOLUTIONS (CSFS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2018

2.Accounting policies (continued)

2.4

Interest income

Interest income is recognised in the Statement of income and retained earnings using the effective interest method.

2.5

Finance costs

Finance costs are charged to the Statement of income and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.6

Borrowing costs

All borrowing costs are recognised in the Statement of income and retained earnings in the year in which they are incurred.

2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in the Statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.8

Taxation

Tax is recognised in the Statement of income and retained earnings, except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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CS FINANCIAL SOLUTIONS (CSFS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2018

2.Accounting policies (continued)

2.9

Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Office equipment

20%

Straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of income and retained earnings.

2.10

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of income and retained earnings for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each Balance sheet date. Gains and losses on remeasurement are recognised in profit or loss for the period.

2.11

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.13

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

2.14

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Page 7

CS FINANCIAL SOLUTIONS (CSFS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2018

Employees

The average monthly number of employees, including directors, during the year was 35 (2017 - 35).

Corporation tax
Current tax on profits for the year	-	(40,020)

Total current tax	-	(40,020)

Profit/(loss) on ordinary activities before tax

257,159

(334,242)

Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2017 - 19.67%)	48,860	(65,745)
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	23,706	8,669
Capital allowances for year/period in excess of depreciation	2,529	(10,476)
Adjustments to tax charge in respect of prior periods	-	11,802
Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge	(31,037)	(30,685)
Surrender of tax losses	(16,248)	14,258
Unrelieved tax losses carried forward	-	32,157
Group relief	(27,810)	-
Total tax charge for the year/period	-	(40,020)

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CS FINANCIAL SOLUTIONS (CSFS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2018

4.Taxation (continued)

Factors that may affect future tax charges

The company has tax losses of £nil available to be carried forward and offset against future trading profits.
Deferred taxation
The deferred tax asset arising on the excess of tax losses over fixed asset timing differences of £4,869 has not been recognised in these accounts.

5.	Tangible fixed assets

		Office equipment
		£
	Cost or valuation
	At 1 October 2017	66,558
	At 30 September 2018	66,558
	Depreciation
	At 1 October 2017	13,297
	Charge for the year on owned assets	13,312
	At 30 September 2018	26,609
	Net book value
	At 30 September 2018	39,949
	At 30 September 2017	53,261

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CS FINANCIAL SOLUTIONS (CSFS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2018

6.	Fixed asset investments

		Unlisted investments
		£
	Cost or valuation
	At 1 October 2017	23,500
	At 30 September 2018	23,500

	Net book value
	At 30 September 2018	23,500
	Re-stated at 30 September 2017	23,500

Debtors

					2018	2017
					£	£


Trade debtors	688,449	410,008
Amounts owed by group undertakings	408,475	254,132
Other debtors	69,310	65,020
Prepayments and accrued income	163,562	52,905
	1,329,796	782,065

8.	Cash and cash equivalents
		2018	2017
		£	£

Cash at bank and in hand	97,186	196,926
	97,186	196,926

Page 10

CS FINANCIAL SOLUTIONS (CSFS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2018

9.	Creditors: Amounts falling due within one year
		2018	Re-stated 2017
		£	£

Bank loans	23,465	-
Trade creditors	401,920	216,536
Amounts owed to group undertakings	7	7
Other taxation and social security	105,130	127,271
Other creditors	129,554	54,829
Accruals and deferred income	325,942	409,855
	986,018	808,498

10.	Financial instruments
		2018	2017
		£	£

	Financial assets
	Financial assets measured at fair value through profit or loss	120,686	220,426

Financial assets measured at fair value through profit or loss comprise cash and bank balances.

11.	Contingent liabilities

The company has given security for the borrowings of its parent company CS Financial Solutions Holdings Limited; the security given is a fixed and floating charge over the assets and undertaking of the company. the borrowings of the parent company amount to £1,278,000.

12.	Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £124,439 (2017 - £241,941). Contributions totalling £68,593 (2017 - £35,936) were payable to the fund at the balance sheet date and are included in creditors.

13.	Related party transactions
	At the balance sheet date, an amount of £7 (2017: £7) was owed to CS Trustees (CST) Limited. At the balance sheet date, an amount of £408,475 (2017: £254,130) was due from CS Financial Solutions Holding Limited, the parent company.

Page 11

CS FINANCIAL SOLUTIONS (CSFS) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 SEPTEMBER 2018

14.	Controlling party

The company is a wholly owned subsidiary of CS Financial Solutions Holdings Limited, which is controlled by its directors.
The registered office address of CS Financial Solutions Holdings Limited is 20 Chapel Street, Liverpool L3 9AG.

Page 12