Company Registration No. 06649961 (England and Wales)
WE FIGHT ANY CLAIM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2018
WE FIGHT ANY CLAIM LIMITED
COMPANY INFORMATION
Directors
Mr P C Bentley
(Appointed 01 May 2019)
Ms G L Cocchiara
(Appointed 01 May 2019)
Mrs L H Farr
(Appointed 01 May 2019)
Mr R J Thomas
(Appointed 01 May 2019)
Company number
06649961
Registered office
Cradoc House
Heol Y Llyfrau
Aberkenfig
BRIDGEND
UK
CF32 9PL
Auditor
Baldwins Audit Services
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
CARDIFF
UK
CF23 8AB
WE FIGHT ANY CLAIM LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
4
Directors' responsibilities statement
3
Independent auditor's report
5 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 22
WE FIGHT ANY CLAIM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2018
- 1 -
The directors present the strategic report and financial statements for the year ended 31 October 2018.
Fair Review of the Business
We Fight Any Claim Ltd (WFAC) was founded in 2010 as a small family run business and since then has become one of the largest and most successful claims management companies in the UK.
The year ending October 2018 was an extremely busy year for WFAC. No further TV advertising was done however the rebrand that we went through in 2017 continued to add to our success long after the campaign ended. In July 2018, the company was hit by an industry wide fee cap enforced by the regulator and FCA which reduced the fees that we were able to charge to 20% plus VAT. This in turn will have an effect on profitability as these leads start to filter through.
In addition to this we continued with our business re-engineering to enable us to keep costs to a minimum across the business and we continue to operate in a lean and efficient manner going forward.
In 2018 we recovered £112m in miss-sold payment protection for our customers bringing our total recovered today in excess of £590m.
As a founding member of the Alliance of Claims companies, WFAC has maintained a commitment to consumers to fight for what they are due to ensure they are compensated for being let down by not only the banks and financial institutions but those that govern them. As the only Claims Manager that challenged the time bar through a judicial review, we continue to fly the flag for access to justice.
Employees
WFAC’s staff are fully engaged in our business and continue to operate a staff forum “your voice” to encourage two way communication. 2018 saw us undertake a further assessment for IIP and we we delighted to retain our Investors in People (IIP) Gold award. This was a real achievement as we were assessed against the new IIP standard which is harder to attain than the previous standard. IIP Gold is described by IIP as “world class best practice” and is held by only 1.5% of organisations in the UK.
We take our responsibility as a modern employer extremely seriously which includes good practice for diversity and inclusion. We have a robust equality policy and an action plan on place to improve our gender pay gap. We are currently partnering with Chwarae Teg which supports the development of women in the work place and remain part of the Armed Forces Covenant and part of the Disability Confident Scheme.
WE FIGHT ANY CLAIM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
- 2 -
Principal risks and uncertainties
The company is prudent in its financial management and carefully monitors financial risk. The company has little credit risk and has retained more than sufficient cash balances to fund its operations therefore having low exposure to cash flow and liquidity risks.
The company’s reports and financial controls were maintained through the year. Income is recognised as it falls due and expenditure is included within the financial statements on an accruals basis.
The company’s strategy is to ensure there is adequate management resource to ensure that operational risk is identified and minimised so as not to affect the financial performance of the business.
As a claims management company, the risks currently facing WFAC are:
-
The fee cap, which came into force in July 2018. This restricts claims management companies to a 20% fee;
-
The time bar, meaning no PPI claims can be submitted after 29 August 2019;
-
Other regulatory risks, which may vary as a consequence of Government policy.
Early notification of both the fee cap and time bar has allowed WFAC the breathing space to bring into play other revenue streams all of which are within the financial services sector. As such WFAC has now re-branded as the We Plan Group and revenue is being generated from other revenue streams to replace the revenue lost as a result of the Fee Cap. This will ensure the business has a sustainable future moving forward when PPI ends.
WFAC prides itself on its excellent commitment to quality and ensures that all regulatory requirements are met with the highest of standards. Regulatory risks are monitored to ensure that current standards are maintained.
Key performance indicators
The company produces and monitors a number of Key Performance Indicators (KPI’s) on a weekly and monthly basis. The main financial KPI’s used by the company are provided below:
In addition to the above, the company also monitors non-financial KPI’s on a weekly and monthly basis. These include outbound call success rates, return rates for PPI information packs and the final success rates of PPI claims. This information is used to reduce cost throughout all areas of the business.
Mr R Thomas
Director
29 July 2019
WE FIGHT ANY CLAIM LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2018
- 3 -
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.
WE FIGHT ANY CLAIM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2018
- 4 -
The directors present their annual report and financial statements for the year ended 31 October 2018.
Principal activities
The principal activity of the company continued to be that of the supply of support services in connection with the settlement of financial disputes.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr S Chorlton
(Resigned 01 May 2019)
Mr D Wilmot
(Resigned 01 May 2019)
Mr P C Bentley
(Appointed 01 May 2019)
Ms G L Cocchiara
(Appointed 01 May 2019)
Mrs L H Farr
(Appointed 01 May 2019)
Mr R J Thomas
(Appointed 01 May 2019)
Results and dividends
The results for the year are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
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
Mr R Thomas
Director
29 July 2019
WE FIGHT ANY CLAIM LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WE FIGHT ANY CLAIM LIMITED
- 5 -
Opinion
We have audited the financial statements of We Fight Any Claim Limited (the 'company') for the year ended 31 October 2018 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows 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 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 October 2018 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
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
.
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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 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.
WE FIGHT ANY CLAIM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WE FIGHT ANY CLAIM LIMITED
- 6 -
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 strategic report and 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 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 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.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s 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.
Ian Thomas BSc FCA DChA (Senior Statutory Auditor)
for and on behalf of Baldwins Audit Services
30 July 2019
Accountants
Statutory Auditor
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
CARDIFF
UK
CF23 8AB
WE FIGHT ANY CLAIM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2018
- 7 -
2018
2017
Notes
£
£
Turnover
3
32,633,312
28,263,119
Cost of sales
(8,680,899)
(5,582,650)
Gross profit
23,952,413
22,680,469
Administrative expenses
(20,108,345)
(22,566,130)
Operating profit
4
3,844,068
114,339
Interest receivable and similar income
6
28
13
Profit before taxation
3,844,096
114,352
Tax on profit
7
(730,571)
107,762
Profit for the financial year
3,113,525
222,114
The Profit And Loss Account has been prepared on the basis that all operations are continuing operations.
WE FIGHT ANY CLAIM LIMITED
BALANCE SHEET
AS AT
31 OCTOBER 2018
31 October 2018
- 8 -
2018
2017
Notes
£
£
£
£
Fixed assets
Tangible assets
9
5,800
6,814
Investments
10
257,100
257,000
262,900
263,814
Current assets
Debtors
13
15,252,693
14,860,385
Cash at bank and in hand
1,474,688
426,691
16,727,381
15,287,076
Creditors: amounts falling due within one year
14
(11,945,065)
(13,619,199)
Net current assets
4,782,316
1,667,877
Total assets less current liabilities
5,045,216
1,931,691
Provisions for liabilities
16
(2,358)
(2,358)
Net assets
5,042,858
1,929,333
Capital and reserves
Called up share capital
18
100
100
Profit and loss reserves
5,042,758
1,929,233
Total equity
5,042,858
1,929,333
The financial statements were approved by the board of directors and authorised for issue on 29 July 2019 and are signed on its behalf by:
Mr R Thomas
Director
Company Registration No. 06649961
WE FIGHT ANY CLAIM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2018
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2016
100
1,712,119
1,712,219
Year ended 31 October 2017:
Profit and total comprehensive income for the year
-
222,114
222,114
Dividends
8
-
(5,000)
(5,000)
Balance at 31 October 2017
100
1,929,233
1,929,333
Year ended 31 October 2018:
Profit and total comprehensive income for the year
-
3,113,525
3,113,525
Balance at 31 October 2018
100
5,042,758
5,042,858
WE FIGHT ANY CLAIM LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2018
- 10 -
2018
2017
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
21
2,886,874
(1,139,025)
Income taxes paid
(154,421)
(184,003)
Net cash inflow/(outflow) from operating activities
2,732,453
(1,323,028)
Investing activities
Purchase of tangible fixed assets
(267)
(1,516)
Proceeds on disposal of subsidiaries
(100)
-
Interest received
28
13
Net cash used in investing activities
(339)
(1,503)
Financing activities
Repayment of borrowings
(1,683,240)
313,709
Dividends paid
-
(5,000)
Net cash (used in)/generated from financing activities
(1,683,240)
308,709
Net increase/(decrease) in cash and cash equivalents
1,048,874
(1,015,822)
Cash and cash equivalents at beginning of year
416,502
1,432,324
Cash and cash equivalents at end of year
1,465,376
416,502
Relating to:
Cash at bank and in hand
1,474,688
426,691
Bank overdrafts included in creditors payable within one year
(9,312)
(10,189)
WE FIGHT ANY CLAIM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2018
- 11 -
1
Accounting policies
Company information
We Fight Any Claim Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Cradoc House, Heol Y Llyfrau, Aberkenfig, BRIDGEND, UK, CF32 9PL.
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. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis.
The company has no external debt and the directors are confident that the company has the continued support of its shareholder and directors who will defer repayment of loan balances totalling £9,845,845 (2017 - £11,529,086) to enable the company to meet its day to day working capital requirements.
Having made enquiries and reviewed statistical information, the directors are confident that the company can continue as a going concern.
1.3
Turnover
Turnover represents fees payable to the company for providing support services in the settlement of financial disputes, excluding VAT.
Turnover is recognised upon receipt of an offer letter from the lender to pay compensation.
1.4
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:
Fixtures,fittings & equipment
10% straight line
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
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
WE FIGHT ANY CLAIM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
1
Accounting policies (Continued)
- 12 -
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
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.
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 is estimated to be less than its carrying amount, the carrying amount of the asset 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 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
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.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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
trade
debtors,
cash and bank balances
and loans to related companies
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.
WE FIGHT ANY CLAIM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
1
Accounting policies (Continued)
- 13 -
Impairment of financial assets
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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when
the company
transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Basic financial liabilities
Basic financial liabilities, including
trade
creditors and loans from
related
companies 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 receipts 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations
expire or are discharged or cancelled.
1.9
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.
WE FIGHT ANY CLAIM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
1
Accounting policies (Continued)
- 14 -
1.10
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.
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.
1.11
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.
1.12
Leases
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
s
asset are consumed.
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.
WE FIGHT ANY CLAIM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
2
Judgements and key sources of estimation uncertainty (Continued)
- 15 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Refund provision
The company is liable to make refunds to customers for the collection of personal protection insurance payments upfront on a no win no fee basis. The provision has been estimated utilising historical data to identify the total value of policies sold or fees paid and the average value of refunds made to estimate the value of future claims to be settled and is applicable to all unsuccessful claims.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2018
2017
£
£
Turnover analysed by class of business
Financial dispute support services
32,633,312
28,263,119
2018
2017
£
£
Other significant revenue
Interest income
28
13
4
Operating profit
2018
2017
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
791
3,250
Depreciation of owned tangible fixed assets
1,281
1,474
Operating lease charges
-
10,925
WE FIGHT ANY CLAIM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
- 16 -
5
Employees
2018
2017
£
£
Wages and salaries
7,383,026
10,477,233
The company has no employees. The wages disclosed above are recharged from a connected company, Premiumstar Limited.
6
Interest receivable and similar income
2018
2017
£
£
Interest income
Interest on bank deposits
28
13
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
28
13
7
Taxation
2018
2017
£
£
Current tax
UK corporation tax on profits for the current period
730,571
22,360
Adjustments in respect of prior periods
-
(130,122)
Total current tax
730,571
(107,762)
The actual charge/(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:
2018
2017
£
£
Profit before taxation
3,844,096
114,352
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2017: 19.00%)
730,378
21,727
Tax effect of expenses that are not deductible in determining taxable profit
193
157
Effect of change in corporation tax rate
-
476
Under/(over) provided in prior years
-
(130,122)
Taxation charge/(credit) for the year
730,571
(107,762)
WE FIGHT ANY CLAIM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
- 17 -
8
Dividends
2018
2017
£
£
Final paid
-
5,000
9
Tangible fixed assets
Fixtures,fittings & equipment
£
Cost
At 1 November 2017
14,032
Additions
267
At 31 October 2018
14,299
Depreciation and impairment
At 1 November 2017
7,218
Depreciation charged in the year
1,281
At 31 October 2018
8,499
Carrying amount
At 31 October 2018
5,800
At 31 October 2017
6,814
10
Fixed asset investments
2018
2017
Notes
£
£
Investments in subsidiaries
11
100
-
Unlisted investments
257,000
257,000
257,100
257,000
WE FIGHT ANY CLAIM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
10
Fixed asset investments (Continued)
- 18 -
Movements in fixed asset investments
Shares in group undertakings
Other investments other than loans
Total
£
£
£
Cost or valuation
At 1 November 2017
-
257,000
257,000
Additions
100
-
100
At 31 October 2018
100
257,000
257,100
Carrying amount
At 31 October 2018
100
257,000
257,100
At 31 October 2017
-
257,000
257,000
11
Subsidiaries
Details of the company's subsidiaries at 31 October 2018 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
WFAC Lifestyle Limited
1
Dormant
Ordinary
100.00
Registered Office address:
1
Tintern House, William Brown Close, Llantarnam Industrial Park, Cwmbran, Gwent, NP44 3AB
12
Financial instruments
2018
2017
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
11,982,302
10,775,508
Equity instruments measured at cost less impairment
257,000
257,000
Carrying amount of financial liabilities
Measured at amortised cost
10,713,846
13,180,501
WE FIGHT ANY CLAIM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
- 19 -
13
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
3,282,221
3,052,562
Gross amounts owed by contract customers
3,217,789
4,039,258
Other debtors
8,700,081
7,722,946
Prepayments and accrued income
52,602
45,619
15,252,693
14,860,385
14
Creditors: amounts falling due within one year
2018
2017
Notes
£
£
Bank loans and overdrafts
15
9,312
10,189
Other borrowings
15
9,845,846
11,529,086
Trade creditors
612,567
1,038,833
Corporation tax
598,590
22,440
Other taxation and social security
632,629
416,258
Other creditors
86,137
211,850
Accruals and deferred income
159,984
390,543
11,945,065
13,619,199
15
Loans and overdrafts
2018
2017
£
£
Bank overdrafts
9,312
10,189
Other loans
9,845,846
11,529,086
9,855,158
11,539,275
Payable within one year
9,855,158
11,539,275
The other loans are interest free and unsecured.
16
Provisions for liabilities
2018
2017
Notes
£
£
Deferred tax liabilities
17
2,358
2,358
2,358
2,358
WE FIGHT ANY CLAIM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
16
Provisions for liabilities (Continued)
- 20 -
A refund provision was recognised in prior years as the company is liable to make refunds to customers for the collection of personal protection insurance payments upfront on a no win no fee basis. The provision was estimated based on historical data to identify the total value of policies sold or fees paid and the average value of refunds made to estimate the value of future claims to be settled and is applicable to all unsuccessful claims. The company ceased collecting fees upfront and based on the level of refunds made, the provision is no longer considered necessary.
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2018
2017
Balances:
£
£
Accelerated capital allowances
2,358
2,358
There were no deferred tax movements in the year.
18
Share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
100 Ordinary Shares of £1 each
100
100
WE FIGHT ANY CLAIM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
- 21 -
19
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2018
2017
£
£
Aggregate compensation
481,267
183,668
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Purchase of goods
2018
2017
£
£
Other related parties
14,547,261
16,635,558
The following amounts were outstanding at the reporting end date:
2018
2017
Amounts owed to related parties
£
£
Key management personnel
9,845,845
11,529,086
Other related parties
86,037
211,850
9,931,882
11,740,936
The following amounts were outstanding at the reporting end date:
2018
2017
Amounts owed by related parties
£
£
Other related parties
6,591,307
5,632,212
6,591,307
5,632,212
20
Controlling party
Joy Chorlton is considered the ultimate controlling party due to her 100% shareholding in the company.
WE FIGHT ANY CLAIM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2018
- 22 -
21
Cash generated from operations
2018
2017
£
£
Profit for the year after tax
3,113,525
222,114
Adjustments for:
Taxation charged/(credited)
730,571
(107,762)
Investment income
(28)
(13)
Depreciation and impairment of tangible fixed assets
1,281
1,474
(Decrease) in provisions
-
(1,914,562)
Movements in working capital:
(Increase)/decrease in debtors
(392,308)
1,562,072
(Decrease) in creditors
(566,167)
(902,348)
Cash generated from/(absorbed by) operations
2,886,874
(1,139,025)
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