The directors present the strategic report for the year ended 30 November 2021.
Creative Benefit Solutions Limited ("CBS" / "the Company") a private company limited by shares and registered in England and Wales is an employee benefit consultancy business, with two trading subsidiaries which are
Creative Auto Enrolment Limited (CAE) – provides Auto enrolment services to employers and it is also the Scheme manager and Scheme Funder of the Creative Pension Trust (CPT)
Creative Benefit Wealth Management Limited (CWM) - providing financial services advice to individuals.
CAE is the largest part of the Creative Group in terms of revenue and profit. CPT obtained Master Trust authorisation from The Pensions Regulator on 4 September 2019, which marked both a key achievement for the group and an important strategic step for its future.
The profit for the Group for the year ended 30 November 2021 before taxation was £2.1m (2020 - profit £1.4m).
The board considers the results for the year to be satisfactory and that the business is performing well in terms of retaining its clients, increasing the membership and funds under management in the CPT and building even greater resilience within our operational capability.
The Company is primarily exposed to operational and reputational risks due to the sector Creative operates in, and in particular with the parts of the business which are regulated.
The group is proactive and focused on understanding and managing the risks it is naturally exposed to and actively seeks to mitigate these wherever possible.
Creative has a comprehensive governance structure, maintains a detailed risk register, a considerable number of policies and procedures, regular and effective management reporting and controls in place to identify, mitigate and control risks.
The Company's activities expose it to several financial risks including credit risk, market risk and liquidity risk. The company does not use derivative financial instruments for speculative purposes.
Credit risk
Credit risk exists through employers settling charges levied by the Group. A provision for doubtful debt is made based on the period of the outstanding debt. The Company is not exposed to high levels of credit risk from financial institutions as it only places cash on deposit.
Market risk
Market risk arises from adverse changes to the value of assets arising from fluctuations in exchange rates, interest rates and market prices, which then impacts revenue. A provision is made when budgeting for a reasonable market fluctuations, however a large part of the income of the Group is not based on market fluctuations and this reduces this risk.
The Group's cash assets are all denominated in sterling and thus is not exposed to any significant market risk.
Liquidity risk
The Company monitors its net cash flow on an ongoing basis to ensure that it has sufficient cash resources to meet the funding demands of the business. Quarterly forecasting is also undertaken to identify any future cash deficiency to allow time for corrective actions to be taken if required.
Brexit risk
There remains some residual uncertainty about trading relationships both inside and outside of the EU and how this may impact the markets or businesses going forward. It is impossible to predict the materiality of this outcome given the ongoing uncertainty, but the board are comfortable that the prudent financial assumptions made within our forward projections, make allowance for a range of potential negative outcomes.
Covid risk
The COVID-19 pandemic developed rapidly in early 2020, and the Board invoked its Business Continuity Plan (BCP) in February 2020. Over the following few months, the Business amended its working practices to the ‘new norm’ and currently is not working under its BCP plan but continues to monitor government guidance and regulation in operating its business. In the opinion of the board, the Group has continued to operate effectively throughout the period, with little interruption to business as usual.
The Company group has a number of key performance indicators (KPl's) that assist in assessing the performance of the Group. Considered together, these give a holistic view of the underlying performance of the Group and the alignment with the overall strategy.
Financial KPI's: turnover growth 19% (2020 - 6%) and profit before finance charge and taxation £2.3m (2020 - £1.73m). The annualised repeat income has risen from 82% of total income to 85% and the trend is increasing into FY 22 and beyond. Funds under management as at 30 November 2021 totalled £680,897,385 (2020 - £462,654,753)
Non-financial KPI: the number of chargeable employers 13,679 (2020: 13,800). This reduction is largely due to insolvency but is in line with expectations. The number of individual clients to whom services are provided is 498 (2020 – 450).
2021 was another challenging year for the business due to the impact of the COVID pandemic but still increased its turnover and profits over that of 2020 and exceeding budget expectation.
The directors believe that the ongoing investment in business, will provide future benefit to both employers, their employees and the members of the CPT and will provide a firm platform for future growth.
The Creative Group consists of Creative Benefit Solutions Limited (CBSL), Creative Benefit Wealth Management Limited (CBWML) and Creative Auto Enrolment Limited (CAEL). Shareholders of CBSL and CAEL have recently agreed to sell the shares in these two entities to the acquiring entity, Cushon Group Limited. The contracts were exchanged on 14th January 2022, FCA approval was received on 29th March 2022 and the acquisition completed on 13th April 2022.
Creative Benefit Wealth Management Limited has transferred ownership from Creative Benefit Solutions Limited to the existing individual shareholders of Creative Benefit Solutions Limited. CBWML will continue to operate as normal for the foreseeable future.
Creative Benefit Limited has transferred ownership from Creative Benefit Solutions Limited to individual shareholders following the sale of CBSL & CAEL. CBL will continue to operate as normal for the foreseeable future.
The Directors must act in accordance with a set of general duties outlined in Section 172 of the Companies Act 2006. The Directors must demonstrate that they act in good faith and promote the success of the Company for the benefit of its stakeholders. Examples of how the Directors respond to these requirements are:
Section 172: The likely consequences of any decision in the long term
The Company’s strategic plan to 2025 is closely monitored by the management and strategic boards consisting of largely the executive directors. There are monthly meetings with the Board reviewing performance and a range of other reporting. Consideration of risks and opportunities are also reviewed throughout the year, together with scenario planning and stress testing of plans where appropriate to support consideration of different outcomes in strategic planning. The Company’s strategic programmes focus on optimising delivery of strategic objectives in the short, medium and longer term.
Section 172: The interests of the Company’s employees
The Company’s employees and values are central to the company’s ethos:
The health, safety and wellbeing of the Company’s employees is a top priority, with an increased focus on mental health, emphasised by the challenges posed by the COVID-19 pandemic. The Company fosters an integrated approach to health and wellbeing with a range of services and benefits to support employees.
The Company is committed to developing teams, supporting individuals in their career pathways and supporting the achievement of the highest standards. The Company continues to offer career enhancement to its employees through relevant management and personal development work, and a range of training opportunities are in place to ensure that the Company offers high quality opportunities to attract applicants from all backgrounds, to ensure fair and equitable access.
The Company is committed to Diversity, Inclusion and Belonging, creating a sustainable culture of inclusion for its employees
Section 172: The need to foster the Company’s business relationships with suppliers, customers and others
The Company has categorised several suppliers as strategic, with whom regular meetings take place to discuss strategic and values alignment and performance. These meetings are attended by relevant employees and this activity is key to fostering mutually beneficial business relationships. The Procurement Policy promotes an ethical approach to business and Corporate Social Responsibility with respect to supplier management. As a regulated business Creative demands high standards of conduct from all employees to foster best practice and broader engagement in business relationships.
Section 172: The impact of the Company’s operations on the community and the environment
The Company recognises its responsibility to consider its impact on the environment through its direct operations and indirectly through its supply chain. The majority of energy utilisation is through leasing of office premise.
Section 172 : Encouragement of Volunteering/community projects
Creative offers a volunteer program to its staff to encourage active participation in local and national projects.
Section 172: The desirability of the Company maintaining a reputation for high standards of business conduct, and the need to act fairly between members of the Company
Creative has a strong brand and it is critical to uphold the brand and reputation of the Company. The Company has a clear Code of Conduct and framework of Policies and Procedures to support the highest standards of business conduct, integrity and adherence to regulatory requirements, fostering fairness amongst members of the Company and Group.
S172 – the need to act fairly as between the members of the company
In approving the Group's annual financial statements, the Directors carefully review the financial statements and duly consider a number of factors, including (but not limited to) any recommendations or observations from the Group's Finance team and/or the Company's auditors. To the extent that any operational or control recommendations are raised to the Directors, they are duly considered and discussed with the Group's Finance team and a course of action agreed, thereby facilitating a long-term approach by ensuring future good practice and having regard for the interests of the Group's shareholders in respect of the Group's financial efficacy.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 November 2021.
The results for the year are set out on page 10.
N o ordinary dividends were paid during the year .
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
In accordance with the company's articles, a resolution proposing that Goodman Jones LLP be reappointed as auditor of the company will be put at a General Meeting.
As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
We have audited the financial statements of Creative Benefit Solutions Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2021 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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.
Other information
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 strategic report and the directors' r eport for the financial year for which the financial statements are prepared is consistent with the financial statements ; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the directors' r eport . 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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.
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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
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:
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to industry sector regulations and unethical and prohibited business practices, and we considered the extent to which non compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and and UK Tax Legislation. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls). Appropriate audit procedures in response to these risks were carried. These procedures included:
• Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
• Reading minutes of meetings of those charged with governance;
• Obtaining and reading correspondence from legal and regulatory bodies including HMRC;
• Identifying and testing journal entries;
• Challenging assumptions and judgements made by management in their significant accounting estimates.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members; and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through 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.
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 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the c ompany has not presented its own income statement and related notes. The c ompany’s loss for the year was £145,092 (2020 - £67,335 profit).
Creative Benefit Solutions Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales . The registered office is Cannon Place, 78 Cannon Street, London, EC4N 6AF.
The group consists of Creative Benefit Solutions Limited and all of its subsidiaries.
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.
The consolidated group financial statements consist of the financial statements of the parent company Creative Benefit Solutions Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates .
All financial statements are made up to 30 November 2021 . Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the g roup.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the group will continue in operational existence for the foreseeable future.
The group operated at a profit for the year of £2,276,717. At the year end net current assets amounted to £284,809 and net assets amounted to £378,713.
The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. The directors have prepared cash flow and profit forecasts which show that the group can meet its financial obligations as they fall due. Thus the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
In the annual review of the group's going concern, the Directors have considered the longer term impact of the Covid-19 pandemic for the group. After a careful review of the business forecasts, making prudent assumptions for new client business, the impact to existing business and the direct costs associated with this, the directors are satisfied that the cashflow forecasts support that there is no material uncertainty in relation to the going concern position of the business. The Directors are committed to carrying out regular reviews of the group's cash flows to monitor the ongoing situation and take further steps as required.
Commission receivable is recognised as follows:
Commission and adviser charges on regular premium business is recognised on the effective commencement date of the related policy.
Commission and advisor charges on other business is recognised on the completion of the relevant documentation to effect the completion of the transaction.
Renewal commission is recognised when receivable.
Commission and adviser charges is stated net of a provision for clawback for commission received on indemnity terms. The provision for clawback is made appropriate to the type of policy written.
Initial Auto Enrolment services income is recognised on a percentage completion basis over the period of their staging date. All other consultancy fees and ongoing Auto Enrolment fees are recognised when due.
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 recognised in the income statement .
Equity in vest ments are measured at fair value through profit or loss , except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably , which are recognised at cost less impairment until a reliable measure of fair value becomes available.
I n the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible 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.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
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.
The group 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 group's statement of financial position when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and 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, which include trade and other receivables 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 m ethod 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.
Financial assets, other than those held at fair value through profit and loss , are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
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 group after deducting all of its liabilities.
Basic financial liabilities, including trade and other payables , 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 payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments issued by the group 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 group.
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 income statement , 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 if, and only if, there is 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.
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 non-current 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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease d asset are consumed.
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.
Government grants relating to turnover are recognised as income over the periods when the related costs are incurred . Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
During the year, the group received £ 29,911 (2020 - £46,539) under the government backed Coronavirus Job Retention Scheme (CJRS), following the outbreak of Covid-19 during the year. This amount has been recognised as other operating income.
In the application of the group’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.
The directors have assessed the critical judgements made in the process of applying the company's accounting policies that have а significant effect on the amounts recognised in financial statements. The directors are of the view that there are no judgements that need to be highlighted above the descriptions within the accounting policies in note1 above.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual credit 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:
Details of the company's subsidiaries at 30 November 2021 are as follows:
The company has the right to redeem the preference shares at any date up to 31 December 2022. On redemption, a premium of 25% is payable. The preference shares were fully repaid during the year.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. There were no amounts (2020: £78,359) outstanding at the year end.
The options outstanding at 30 November 2021 had an exercise price of £1 - £1.25 and a remaining contractual life of between 5 and 9 years.
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
One of the directors, N Chambers , is also a director of Chambers Townsend Consultancy Limited (CTC) and a shareholder of Chambers Townsend Holdings Limited, its parent company. During the year CTC invoiced the group £ 492,881 (20 20 : £ 601, 7 6 0); at the year end, the balance outstanding was £ 16,331 (20 20 : £ 35,189 owed ).
The Creative Group consists of Creative Benefit Solutions Limited (CBSL), Creative Benefit Wealth Management Limited (CBWML) and Creative Auto Enrolment Limited (CAEL). Shareholders of CBSL and CAEL have recently agreed to sell the shares in these two entities to the acquiring entity, Cushon Group Limited. The contracts were exchanged on 14th January 2022, FCA approval was received on 29th March 2022 and the acquisition completed on 13th April 2022.
Creative Benefit Wealth Management Limited has transferred ownership from Creative Benefit Solutions Limited to the existing individual shareholders of Creative Benefit Solutions Limited. CBWML will continue to operate as normal for the foreseeable future.
Creative Benefit Limited has transferred ownership from Creative Benefit Solutions Limited to individual shareholders following the sale of CBSL & CAEL. CBL will continue to operate as normal for the foreseeable future.