Leadx Holdings Limited - Limited company accounts 20.1
Leadx Holdings Limited - Limited company accounts 20.1
REGISTERED NUMBER: |
LEADX HOLDINGS LIMITED |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2020 |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2020 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
LEADX HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2020 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditors |
The Exchange |
5 Bank Street |
Bury |
BL9 0DN |
BANKERS: |
Drummond House |
1 Redheughs Avenue |
Edinburgh |
EH12 9JN |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2020 |
The directors present their strategic report on the company for the year ended 30 June 2020. |
REVIEW OF BUSINESS |
The Company is primarily a holding company that provides central support services to its subsidiary The Claims Guys Limited. |
The results of the Company for the year, as set out on pages 8, 9 and 10, show a profit on ordinary activities before tax of £14,639,471 (2019: £15,149,511) and the shareholders' funds of the Company total £2,483,197 (2019: £1,685,131). |
The Company is closely working with all of its suppliers to ensure that they are aware of the reduction in size of the business and the implication that may have. |
The Company continues to comply with the FCA regulatory requirements and will use the practices and ethos developed under these regulations to manage the business in the future. |
As referenced in the Employee Consultation paragraph below, the Company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the Company. This is achieved through formal and informal meetings and through regular communication. |
There is now a single ultimate shareholder for the Company and there are therefore no issues between members. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The Company has identified the following key risks and uncertainties:- |
1) The failure of its principal subsidiary The Claims Guys Limited due to regulatory reasons. |
To mitigate this risk the Company ensures that appropriately experienced compliance specialists are recruited and retained, to ensure that all relevant regulations are adhered to by the Company. |
2) The impact of the global Covid-19 pandemic on the financial performance of the group. |
The current global Covid-19 pandemic is a potential threat to the Company and the trading status of the subsidiary. The directors have considered the impact of the global Covid-19 pandemic on the Company and recognise that the future cannot be predicted with certainty. However, the directors expect the Company to continue trading. All management can work remotely and the group is currently providing other staff with the ability to work remotely. The group is dependent on the banks continuing to work and process repayments and therefore anticipate a slowdown in activity as the banks may face staff shortages. The group has significant cash reserves. The directors believe that the Company is well placed to manage the risks at these challenging times and therefore continues to adopt a going concern basis of accounting in preparing these financial statements. No adjustment has been made to write down assets or provide for additional liabilities, should the going concern basis not be appropriate. The Company continues to monitor the situation in respect of Covid-19 but the vast majority of roles can be performed from home and to date the only impact has been a slight delay in financial institutions processing claims. |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2020 |
BUSINESS ENVIRONMENT |
The CMC PPI market has a limited period in which to deliver the revenues from PPI and new areas of financial claims are no longer being developed. |
Whilst the revenue from PPI claims is expected to end in 2021, the trading subsidiary is actively seeking new avenues for generating income, including:- |
i) Data breach claims |
ii) Diesel emission claims |
iii) Tax refund claims |
The Company has a dedicated team of employees that focus on generating new income streams via email campaigns. |
Furthermore, the trading subsidiary has developed an extensive database of client information which provides scope for further income in the form of "lead sales". |
The Directors are satisfied that, for the next 12 months from the date of approval of the financial statements, the Company will remain operational and profitable. |
DISABLED EMPLOYEES |
Applications for employment by disabled persons are always fully considered, bearing in mind the abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the Company continues and that appropriate training is arranged. It is the policy of the Company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees. |
EMPLOYEE CONSULTATION |
The Company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the Company. This is achieved through formal and informal meetings and through regular communication. |
KEY PERFORMANCE INDICATORS |
The company considers the performance of its principal subsidiary The Claims Guys Limited as its key performance indicator. The three most important key performance indicators for The Claims Guys Limited are: |
a. Invoiced revenue |
b. Cash collections |
c. Costs incurred per month |
FUTURE DEVELOPMENTS |
The trading subsidiary, The Claims Guys Limited, will generate leads for other claims management companies or solicitors until its licence expires in June 2021 and beyond that will continue to collect any outstanding debtors. |
The trading subsidiary is actively seeking new avenues for generating growth, as explained in the Business Environment section of the Strategic Report. |
ON BEHALF OF THE BOARD: |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2020 |
The directors present their report with the financial statements of the company for the year ended 30 June 2020. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the period under review was that of a holding company that provides central support services to its principal subsidiary The Claims Guys Limited. |
DIVIDENDS |
Interim dividends totalling £13,750,000 in respect of ordinary shares were paid during the year. The directors recommend that no final dividend be paid on these shares. |
The total distribution of dividends for the year ended 30 June 2020 will be £13,750,000. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2019 to the date of this report. |
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; |
- | 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. |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2020 |
AUDITORS |
DTE Business Advisers Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditor in the absence of an Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LEADX HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Leadx Holdings Limited (the 'company') for the year ended 30 June 2020 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, 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 2020 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 |
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 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 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LEADX HOLDINGS LIMITED |
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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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. |
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. |
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. |
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 |
Statutory Auditors |
The Exchange |
5 Bank Street |
Bury |
BL9 0DN |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2020 |
2020 | 2019 |
Notes | £ | £ |
REVENUE |
Administrative expenses | ( |
) | ( |
) |
(4,984,303 | ) | (5,533,988 | ) |
Other operating income |
OPERATING PROFIT | 4 |
Income from shares in group undertakings |
PROFIT BEFORE TAXATION |
Tax on profit | 5 | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2020 |
2020 | 2019 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
STATEMENT OF FINANCIAL POSITION |
30 JUNE 2020 |
2020 | 2019 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 7 |
Property, plant and equipment | 8 |
Investments | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 13 |
Retained earnings | 14 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2020 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2018 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2019 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2020 |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2020 |
1. | STATUTORY INFORMATION |
Leadx Holdings Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 06299337 and the registered office address is Hamilton House, Church Street, Altrincham, Cheshire, WA14 4DR. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
Since 2010 the primary activity of the trading subsidiary has been that of a claims management company, with the principal activity being to assist customers to recover funds as a result of having been mis-sold Payment Protection Insurance ("PPI"). |
Given the number of PPI claims that were submitted before the August 2019 deadline and the length of time that it takes for a typical PPI claim to be settled, it is expected that the group's PPI business will continue to be profitable and cash generative for the year ended 30 June 2021. |
As it has been known for some time that the PPI business had a finite lifecycle, the group has already taken steps to reduce its operating costs and remain profitable. At the year-end, the trading subsidiary had cash reserves of £5,854,284 (2019 - £5,387,294) and net assets of £8,507,748 (2019 - £8,417,694). Post year-end, the group has been able to settle its liabilities as they arise. The directors have prepared forecasts to December 2022 which show considerable cash reserves to this date, as well as new streams of revenue which the group hopes will bring further profitability. As such, the directors have adopted the going concern basis for preparing the financial statements. |
The directors have considered the impact of the global Covid-19 pandemic on the company and recognise that the future cannot be predicted with certainty. However, the company has continued to trade post year-end. All management have been able to work remotely and the Company continues to provide other staff with the ability to work remotely. The Company is dependent on the banks continuing to work and process repayments and therefore anticipate a slowdown in activity as the banks may face staff shortages. The group has significant cash reserves. The directors believe that the company is well placed to manage the risks at these challenging times and therefore continues to adopt a going concern basis of accounting in preparing these financial statements. No adjustment has been made to write down assets or provide for additional liabilities, should the going concern basis not be appropriate. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption 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. |
Preparation of consolidated financial statements |
The financial statements contain information about Leadx Holdings Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its ultimate parent, LX Holdings Limited, a company registered in England and Wales. |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
2. | ACCOUNTING POLICIES - continued |
Related party transactions |
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. |
Other operating income |
Other operating income includes management recharge income provided to the company's subsidiaries and other related companies. |
Intangible fixed assets |
Trademarks and licences relate to costs incurred in relation to the purchase of trademarks and associated goodwill of 'theclaimsline' . Trademarks and licences have been capitalised and amortised between 1 and 3 years. |
Property, plant and equipment |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term. |
Computer software | - 50% on cost |
Fixtures and fittings | - 50% and 33% on cost |
Computer equipment | - 50% and 33% on cost |
Salary costs incurred in relation to the creation of an internet based computer platform have been capitalised and are included within computer software. |
The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises. |
Government grants |
Grants are accounted for under the accruals model as permitted by FRS 102. |
During the year the company has benefitted from the Government Coronavirus Job Retention Scheme ('Furlough'). Furlough income has been recognised in "other income" in the same period as the related wage costs. |
The company has not directly benefitted from any other forms of government assistance. |
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 accounts receivable and payable, loans from banks and other third parties and loans to related parties. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement. |
Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost. |
Dividends |
Equity dividends are recognised when they become legally payable and are no longer at the discretion of the company. |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
2. | ACCOUNTING POLICIES - continued |
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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Critical accounting estimates and judgements |
In the application of the company's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates. |
The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised. |
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below. |
In disclosing contingent liabilities, the directors make judgement as to whether the entity will be required to transfer economic benefits in settlement of an obligation at the statement of financial position date as a result of a previous event. |
Estimating the recoverability of related party balances is considered the key estimate in calculating the bad debt provision at the period end. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to the income statement over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to the income statement 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 the income statement in the period to which they relate. |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
2. | ACCOUNTING POLICIES - continued |
Direct costs |
Direct costs incurred in relation to generating anticipated future revenues are deferred and matched against future revenues as they arise. |
Fixed asset investments |
Fixed assets investments are stated at cost less any provision for a permanent diminution in value. |
3. | EMPLOYEES AND DIRECTORS |
2020 | 2019 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2020 | 2019 |
Administration |
2020 | 2019 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
Information regarding the highest paid director is as follows: |
2020 | 2019 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2020 | 2019 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Auditors' remuneration |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
5. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2020 | 2019 |
£ | £ |
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 lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2020 | 2019 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2019 - |
Effects of: |
Expenses not deductible for tax purposes | ( |
) | ( |
) |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Consideration for group relief | - | 12,703 |
Total tax charge | 91,405 | - |
6. | DIVIDENDS |
2020 | 2019 |
£ | £ |
Ordinary shares of £1 each |
Interim |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
7. | INTANGIBLE FIXED ASSETS |
Trademarks |
& licences |
£ |
COST |
At 1 July 2019 |
and 30 June 2020 |
AMORTISATION |
At 1 July 2019 |
and 30 June 2020 |
NET BOOK VALUE |
At 30 June 2020 |
At 30 June 2019 |
8. | PROPERTY, PLANT AND EQUIPMENT |
Fixtures |
Computer | and | Computer |
Software | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2019 |
Additions |
At 30 June 2020 |
DEPRECIATION |
At 1 July 2019 |
Charge for year |
At 30 June 2020 |
NET BOOK VALUE |
At 30 June 2020 |
At 30 June 2019 |
9. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2019 |
and 30 June 2020 |
NET BOOK VALUE |
At 30 June 2020 |
At 30 June 2019 |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
9. | FIXED ASSET INVESTMENTS - continued |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
Other debtors |
Amounts owed by group undertakings | 2,897,632 | 2,840,832 |
Corporation tax recoverable |
Prepayments and accrued income |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
Other creditors |
Accrued expenses |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
12. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2020 | 2019 |
£ | £ |
Within one year |
Between one and five years |
13. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
Ordinary | £1 | 65,515 | 65,515 |
The class of share carries full voting rights and the right to participate in the profits or assets of the company. Preference shares carry the right that distributions upon a winding up or liquidation, shall be first applied amongst the preference shareholders. |
14. | RESERVES |
Retained |
earnings |
£ |
At 1 July 2019 |
Profit for the year |
Dividends | ( |
) |
At 30 June 2020 |
15. | ULTIMATE PARENT COMPANY |
The company's immediate parent company is Leadx Group Limited, a company registered in England and Wales, whose registered office is Hamilton House, Church Street, Altrincham, Cheshire, WA14 4DR. |
The company's ultimate parent company is Kirkstone Group Limited, a company registered in England and Wales, whose registered office is Hamilton House, Church Street, Altrincham, Cheshire, WA14 4DR. |
The smallest group in which the results of the company are consolidated is that headed by LX Holdings Limited, a company registered in England and Wales, whose registered office is Hamilton House, Church Street, Altrincham, Cheshire, WA14 4DR. Copies of the consolidated financial statements can be obtained from Companies House. |
16. | CONTINGENT LIABILITIES |
The company has entered into an unlimited inter company guarantee and debenture with its group undertakings Leadx Group Limited, Leadx Limited, Leadx Marketing Limited and The Claims Guys Limited in relation to overdraft facilities. |
LEADX HOLDINGS LIMITED (REGISTERED NUMBER: 06299337) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2020 |
17. | RELATED PARTY DISCLOSURES |
2020 | 2019 |
£ | £ |
Sales |
2020 | 2019 |
£ | £ |
Sales |
Amount due from related party |
During the period, a total of key management personnel compensation of £856,132 (2019: £775,322) was paid. |
18. | EVENTS AFTER THE REPORTING PERIOD |
The trading subsidiary, The Claims Guys Limited, has taken the decision to cancel its FCA licence with effect from 30 June 2021. From this date, no further revenue is expected to be generated in the trading subsidiary from PPI claims. |
Subsequent to 30 June 2020 dividends of £6,529,000 were declared and paid. |
19. | CONTROL |
Leadx Holdings Limited is controlled by its director M P Simpkins, who is also a director of the immediate parent company and the sole director and shareholder of the ultimate parent company. |