Company Registration No. 04908684 (England and Wales)
PROPHET REPORTS & COLLECTIONS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PROPHET REPORTS & COLLECTIONS LTD
COMPANY INFORMATION
Directors
J Whittingham
(Appointed 5 February 2021)
M Rea
(Appointed 5 February 2021)
Secretary
A C Peel
Company number
04908684
Registered office
The Walbrook Building
25 Walbrook
London
England
EC4N 8AW
Auditor
Parsons Accountants Ltd
No 2 Silkwood Office Park
Fryers Way
Wakefield
WF5 9TJ
PROPHET REPORTS & COLLECTIONS LTD
CONTENTS
Page
Directors' report
1
Independent auditor's report
2 - 4
Statement of comprehensive income
5
Balance sheet
6
Statement of changes in equity
7
Notes to the financial statements
8 - 16
PROPHET REPORTS & COLLECTIONS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2021
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2021.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
J Whittingham
(Appointed 5 February 2021)
M Rea
(Appointed 5 February 2021)
C Patterson
(Resigned 5 February 2021)
P Moors
(Resigned 5 February 2021)
P McDonnell
(Resigned 5 February 2021)
P Evans
(Resigned 5 February 2021)
Auditor
Parsons Accountants Ltd were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report 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 of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s
auditor
is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s
auditor
is aware of that information.
On behalf of the board
J Whittingham
Director
21 September 2022
PROPHET REPORTS & COLLECTIONS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF PROPHET REPORTS & COLLECTIONS LTD
- 2 -
Opinion
We have audited the financial statements of Prophet Reports & Collections Ltd (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 31 December 2021 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.
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
Auditor's
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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit
:
-
the information given in the directors'
r
eport 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.
PROPHET REPORTS & COLLECTIONS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF PROPHET REPORTS & COLLECTIONS LTD
- 3 -
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 identifie
d
material misstatements in the directors'
r
eport
.
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
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the company is not entitled to claim exemption in preparing a strategic report due to it being a member of an ineligible group.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, 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.
Auditor's 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
auditor's
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
.
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
.
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 directors and other management, and from our commercial knowledge and experience of the industry.
-
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, data protection, anti-bribery, employment and health and safety legislation;
-
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management 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.
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.
PROPHET REPORTS & COLLECTIONS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF PROPHET REPORTS & COLLECTIONS LTD
- 4 -
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
i
nvolve deliberate concealment or collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's 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 member for our audit work, for this report, or for the opinions we have formed.
Ian Parsons (Senior Statutory Auditor)
For and on behalf of Parsons Accountants Ltd
21 September 2022
Chartered Accountants
Statutory Auditor
No 2 Silkwood Office Park
Fryers Way
Wakefield
WF5 9TJ
PROPHET REPORTS & COLLECTIONS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2021
- 5 -
Year
9 months
ended
ended
31 December
31 December
2021
2020 Unaudited
Notes
£
£
Turnover
51,634
80,589
Cost of sales
(904)
Gross profit
51,634
79,685
Administrative expenses
(27,587)
(42,162)
Other operating income
357
814
Operating profit
3
24,404
38,337
Interest payable and similar expenses
(1)
Profit before taxation
24,404
38,336
Tax on profit
6
(4,387)
(7,283)
Profit for the financial year
20,017
31,053
The profit and loss account has been prepared on the basis that all operations are continuing operations.
PROPHET REPORTS & COLLECTIONS LTD
BALANCE SHEET
AS AT 31 DECEMBER 2021
31 December 2021
- 6 -
2021
2020 Unaudited
Notes
£
£
£
£
Fixed assets
Intangible assets
7
1,187
Tangible assets
8
375
1,562
Current assets
Debtors
9
3,073
20,460
Cash at bank and in hand
101,336
67,442
104,409
87,902
Creditors: amounts falling due within one year
10
(15,712)
(20,487)
Net current assets
88,697
67,415
Total assets less current liabilities
88,697
68,977
Provisions for liabilities
Deferred tax liability
11
297
-
(297)
Net assets
88,697
68,680
Capital and reserves
Called up share capital
13
1
1
Profit and loss reserves
88,696
68,679
Total equity
88,697
68,680
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 21 September 2022 and are signed on its behalf by:
J Whittingham
Director
Company Registration No. 04908684
PROPHET REPORTS & COLLECTIONS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2020
1
37,626
37,627
Period ended 31 December 2020:
Profit and total comprehensive income for the period
-
31,053
31,053
Balance at 31 December 2020
1
68,679
68,680
Year ended 31 December 2021:
Profit and total comprehensive income for the year
-
20,017
20,017
Balance at 31 December 2021
1
88,696
88,697
PROPHET REPORTS & COLLECTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
1
Accounting policies
Company information
Prophet Reports & Collections Ltd is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
The Walbrook Building, 25 Walbrook, London, England, EC4N 8AW.
The address of the place of business is Prophet House, 27 Hornbeam Square South, Harrogate, North Yorkshire, HG2 8NB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues
: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
-
Section 26 ‘Share based Payment’
:
Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Arthur J. Gallagher & Co.
These consolidated financial statements are available from its registered office
.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Reporting period
The comparatives stated relate to 9 month period from 1 April 2020 to 31 December 2020. The year end of 31 December was selected in 2020 to bring the reporting date in line with the wider group. As a result, amounts stated are not entirely comparable.
PROPHET REPORTS & COLLECTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 9 -
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from rendering of services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that
it is probable will be
recover
ed
.
1.5
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development costs
10% on cost
1.7
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Equipment
33% on cost
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.8
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
PROPHET REPORTS & COLLECTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 10 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.9
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.10
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
PROPHET REPORTS & COLLECTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 11 -
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable 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.
1.11
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.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the
profit and loss account
because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
PROPHET REPORTS & COLLECTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 12 -
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met
. Where a
grant does not specify performance conditions
it
is recognised in income when the proceeds are received or receivable
. A grant received before the recognition criteria are satisfied is recognised as a liability.
1.16
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Operating profit
2021
2020 Unaudited
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(357)
Depreciation of owned tangible fixed assets
273
364
Amortisation of intangible assets
113
1,523
4
Auditor's remuneration
2021
2020 Unaudited
Fees payable to the company's auditor and associates:
£
£
For audit and related services
6,900
3,523
Audit fees are borne by the wider group.
PROPHET REPORTS & COLLECTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 13 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020 Unaudited
3
2
Their aggregate remuneration comprised:
2021
2020 Unaudited
£
£
Wages and salaries
13,479
19,125
Social security costs
514
820
Pension costs
175
293
14,168
20,238
6
Taxation
2021
2020 Unaudited
£
£
Current tax
UK corporation tax on profits for the current period
4,684
7,642
Deferred tax
Origination and reversal of timing differences
(297)
(359)
Total tax charge
4,387
7,283
PROPHET REPORTS & COLLECTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
6
Taxation
(Continued)
- 14 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2021
2020 Unaudited
£
£
Profit before taxation
24,404
38,336
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2020 Unaudited: 19.00%)
4,637
7,283
Tax effect of expenses that are not deductible in determining taxable profit
21
-
Adjustments in respect of prior years
(226)
Transfer pricing adjustments
(45)
Taxation charge for the year
4,387
7,283
7
Intangible fixed assets
Development costs
£
Cost
At 1 January 2021
44,352
Disposals
(44,352)
At 31 December 2021
Amortisation and impairment
At 1 January 2021
43,165
Amortisation charged for the year
113
Disposals
(43,278)
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
1,187
PROPHET REPORTS & COLLECTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 15 -
8
Tangible fixed assets
Equipment
£
Cost
At 1 January 2021
1,103
Disposals
(1,103)
At 31 December 2021
Depreciation and impairment
At 1 January 2021
728
Depreciation charged in the year
273
Eliminated in respect of disposals
(1,001)
At 31 December 2021
Carrying amount
At 31 December 2021
At 31 December 2020
375
9
Debtors
2021
2020 Unaudited
Amounts falling due within one year:
£
£
Trade debtors
3,073
17,000
Prepayments and accrued income
3,460
3,073
20,460
10
Creditors: amounts falling due within one year
2021
2020 Unaudited
£
£
Trade creditors
5,114
Amounts owed to group undertakings
15,712
Corporation tax
7,642
Other taxation and social security
4,166
Other creditors
65
Accruals and deferred income
3,500
15,712
20,487
PROPHET REPORTS & COLLECTIONS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 16 -
11
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2021
2020 Unaudited
Balances:
£
£
Accelerated capital allowances
-
297
12
Retirement benefit schemes
2021
2020 Unaudited
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
175
293
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
13
Share capital
2021
2020 Unaudited
2021
2020 Unaudited
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
14
Related party transactions
The company has taken advantage of the exemption conferred by FRS102 Section 33 'related party disclosures' not to disclose transactions with members of the Group on the grounds that 100% of the voting rights in the Company are controlled within that Group and the Company is included in the consolidated financial statements.
15
Ultimate controlling party
The immediate parent undertaking is Prophet Group Limited, a company registered in UK, by virtue of its majority shareholding.
The largest group of undertakings of which the company is a member and for which financial statements are
prepared is Arthur J. Gallagher & Co. a company incorporated in the United States of America, which is the
ultimate parent company. The registered address of Arthur J. Gallagher & Co. is 2850 W. Golf Rd, Rolling
Meadows, IL 60008. A copy of these consolidated financial statements is available from the registered office of
the company.
2021-12-31
2021-01-01
false
CCH Software
CCH Accounts Production 2022.200
No description of principal activity
J Whittingham
M Rea
C Patterson
P Moors
P McDonnell
P Evans
A C Peel
04908684
2021-01-01
2021-12-31
04908684
bus:Director1
2021-01-01
2021-12-31
04908684
bus:Director2
2021-01-01
2021-12-31
04908684
bus:CompanySecretary1
2021-01-01
2021-12-31
04908684
bus:Director3
2021-01-01
2021-12-31
04908684
bus:Director4
2021-01-01
2021-12-31
04908684
bus:Director5
2021-01-01
2021-12-31
04908684
bus:Director6
2021-01-01
2021-12-31
04908684
bus:RegisteredOffice
2021-01-01
2021-12-31
04908684
2021-12-31
04908684
2020-04-01
2020-12-31
04908684
core:RetainedEarningsAccumulatedLosses
2020-04-01
2020-12-31
04908684
core:RetainedEarningsAccumulatedLosses
2021-01-01
2021-12-31
04908684
core:OtherResidualIntangibleAssets
2021-12-31
04908684
core:OtherResidualIntangibleAssets
2020-12-31
04908684
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2021-12-31
04908684
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2020-12-31
04908684
2020-12-31
04908684
core:ComputerEquipment
2021-12-31
04908684
core:ComputerEquipment
2020-12-31
04908684
core:CurrentFinancialInstruments
core:WithinOneYear
2021-12-31
04908684
core:CurrentFinancialInstruments
core:WithinOneYear
2020-12-31
04908684
core:ShareCapital
2021-12-31
04908684
core:ShareCapital
2020-12-31
04908684
core:RetainedEarningsAccumulatedLosses
2021-12-31
04908684
core:RetainedEarningsAccumulatedLosses
2020-12-31
04908684
core:ShareCapital
2020-03-31
04908684
core:RetainedEarningsAccumulatedLosses
2020-03-31
04908684
2020-03-31
04908684
core:IntangibleAssetsOtherThanGoodwill
2021-01-01
2021-12-31
04908684
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2021-01-01
2021-12-31
04908684
core:ComputerEquipment
2021-01-01
2021-12-31
04908684
core:UKTax
2021-01-01
2021-12-31
04908684
core:UKTax
2020-04-01
2020-12-31
04908684
1
2021-01-01
2021-12-31
04908684
1
2020-04-01
2020-12-31
04908684
core:DevelopmentCostsCapitalisedDevelopmentExpenditure
2020-12-31
04908684
core:ComputerEquipment
2020-12-31
04908684
core:CurrentFinancialInstruments
2021-12-31
04908684
core:CurrentFinancialInstruments
2020-12-31
04908684
bus:PrivateLimitedCompanyLtd
2021-01-01
2021-12-31
04908684
bus:FRS102
2021-01-01
2021-12-31
04908684
bus:Audited
2021-01-01
2021-12-31
04908684
bus:FullAccounts
2021-01-01
2021-12-31
xbrli:pure
xbrli:shares
iso4217:GBP