Annual Report & Accounts 2026
55
OUR FINANCIALS
date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain. GOODWILL
Goodwill is initially recognised and measured as set out above.
Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill is allocated to the Group’s cash-generating unit (or groups of cash-generating units) expected to benefit from the synergies of the combination. The cash-
generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period. On disposal of a cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. GOING CONCERN
The Group and Company financial statements have been prepared on a going concern basis as the Directors have a reasonable expectation that the Group and Company have adequate resources to continue in operational existence for the foreseeable future. The Group is cash positive, has no debt, has a model which is strongly cash generative and has, to date, a strong trading performance. The Group’s forecasts and projections show that the Group has sufficient resources for both current and anticipated cash requirements for a period of at least one year from the approval of these financial statements.
ACCOUNTING DEVELOPMENTS
At the date of authorisation of these financial statements, there were new standards issued, as well as amendments to standards which were in issue, but which were not yet effective, and which have not been applied. The principal ones were: • IFRS 18 – Presentation and disclosure in financial statements (effective for annual periods beginning on, or after, 1 January 2027);
• Annual improvements to IFRS Accounting Standards – Volume 11 (effective for annual periods beginning on, or after, 1 January 2026);
• Classification and measurement of financial instruments – Amendments to IFRS 9 and IFRS 7 (effective for annual periods beginning on, or after, 1 January 2026.
The Directors do not expect the adoption of these amendments to standards to have a material impact on the financial statements, although the implementation of IFRS 18 will impact the presentation of income from investments within the statement of comprehensive income.
SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Directors who make strategic decisions. The Executive Directors are of the opinion that the Group has only one reportable operating segment.
REVENUE
The Group generates revenue, primarily, from delivering legal services to its clients. The services delivered are largely bespoke in their nature, being specific to the legal needs of the client and the matter. The amount of consideration received for any given assignment varies significantly and matters are predominantly charged to clients on either an hourly rate or a fixed fee basis, although a small amount of work is also undertaken under conditional fee arrangements.
OUR FINANCIALS
date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain purchase gain. GOODWILL
Goodwill is initially recognised and measured as set out above.
Goodwill is not amortised but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill is allocated to the Group’s cash-generating unit (or groups of cash-generating units) expected to benefit from the synergies of the combination. The cash-
generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognised for goodwill is not reversed in a subsequent period. On disposal of a cash-generating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal. GOING CONCERN
The Group and Company financial statements have been prepared on a going concern basis as the Directors have a reasonable expectation that the Group and Company have adequate resources to continue in operational existence for the foreseeable future. The Group is cash positive, has no debt, has a model which is strongly cash generative and has, to date, a strong trading performance. The Group’s forecasts and projections show that the Group has sufficient resources for both current and anticipated cash requirements for a period of at least one year from the approval of these financial statements.
ACCOUNTING DEVELOPMENTS
At the date of authorisation of these financial statements, there were new standards issued, as well as amendments to standards which were in issue, but which were not yet effective, and which have not been applied. The principal ones were: • IFRS 18 – Presentation and disclosure in financial statements (effective for annual periods beginning on, or after, 1 January 2027);
• Annual improvements to IFRS Accounting Standards – Volume 11 (effective for annual periods beginning on, or after, 1 January 2026);
• Classification and measurement of financial instruments – Amendments to IFRS 9 and IFRS 7 (effective for annual periods beginning on, or after, 1 January 2026.
The Directors do not expect the adoption of these amendments to standards to have a material impact on the financial statements, although the implementation of IFRS 18 will impact the presentation of income from investments within the statement of comprehensive income.
SEGMENT REPORTING
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Executive Directors who make strategic decisions. The Executive Directors are of the opinion that the Group has only one reportable operating segment.
REVENUE
The Group generates revenue, primarily, from delivering legal services to its clients. The services delivered are largely bespoke in their nature, being specific to the legal needs of the client and the matter. The amount of consideration received for any given assignment varies significantly and matters are predominantly charged to clients on either an hourly rate or a fixed fee basis, although a small amount of work is also undertaken under conditional fee arrangements.