Annual Report & Accounts 2026
68
14. INTANGIBLE ASSETS
Lawyer relationships £ Goodwill £
Total intangibles £
Cost or valuation
At 31 January 2026 and 2026
3,508,840
4,807,411
8,316,251
Amortisation
At 31 January 2024
3,260,297
–
3,260,297
Charge for the year
248,543
–
248,543
At 31 January 2026
3,508,840
–
3,508,840
Charge for the year
–
–
–
At 31 January 2026
3,508,840
–
3,508,840
Carrying amount
At 31 January 2026
–
4,807,411
4,807,411
At 31 January 2026
–
4,807,411
4,807,411
At 31 January 2024
248,543
4,807,411
5,055,954
For the purpose of impairment testing, goodwill arising from the acquisition of Keystone Law Limited is allocated to a single cash-generating unit (CGU) that is expected to benefit from the synergies of the combination. Goodwill reviews are undertaken annually or more frequently if events or changes in circumstances indicate potential impairment.
An impairment review has been performed for the year ended 31 January 2026 and recoverable amounts have been determined based on value-in-use calculations. These calculations have assessed the projected future cash flows over the next five years based on financial budgets approved by management for the year ended 31 January 2027 and then looking forwards a further four years. A discounted cash flow model was prepared assuming no growth in profits over the period to stress test the carrying value of the goodwill, using a pre-tax discount rate of 11% (2026: 11%). Management does not foresee any realistic adverse movement in the assumptions used in the impairment review which would trigger the requirement for an impairment.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
14. INTANGIBLE ASSETS
Lawyer relationships £ Goodwill £
Total intangibles £
Cost or valuation
At 31 January 2026 and 2026
3,508,840
4,807,411
8,316,251
Amortisation
At 31 January 2024
3,260,297
–
3,260,297
Charge for the year
248,543
–
248,543
At 31 January 2026
3,508,840
–
3,508,840
Charge for the year
–
–
–
At 31 January 2026
3,508,840
–
3,508,840
Carrying amount
At 31 January 2026
–
4,807,411
4,807,411
At 31 January 2026
–
4,807,411
4,807,411
At 31 January 2024
248,543
4,807,411
5,055,954
For the purpose of impairment testing, goodwill arising from the acquisition of Keystone Law Limited is allocated to a single cash-generating unit (CGU) that is expected to benefit from the synergies of the combination. Goodwill reviews are undertaken annually or more frequently if events or changes in circumstances indicate potential impairment.
An impairment review has been performed for the year ended 31 January 2026 and recoverable amounts have been determined based on value-in-use calculations. These calculations have assessed the projected future cash flows over the next five years based on financial budgets approved by management for the year ended 31 January 2027 and then looking forwards a further four years. A discounted cash flow model was prepared assuming no growth in profits over the period to stress test the carrying value of the goodwill, using a pre-tax discount rate of 11% (2026: 11%). Management does not foresee any realistic adverse movement in the assumptions used in the impairment review which would trigger the requirement for an impairment.
NOTES TO THE FINANCIAL STATEMENTS CONTINUED