REGISTERED NUMBER:
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UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 |
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ALPHA UNDERWRITING LIMITED |
REGISTERED NUMBER:
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UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2019 |
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FOR |
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ALPHA UNDERWRITING LIMITED |
ALPHA UNDERWRITING LIMITED (REGISTERED NUMBER: 06904209) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 4 |
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Chartered Accountants' Report | 10 |
ALPHA UNDERWRITING LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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ACCOUNTANTS: |
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East Wing |
Goffs Oak House |
Goffs Lane |
Goffs Oak |
Hertfordshire |
EN7 5BW |
ALPHA UNDERWRITING LIMITED (REGISTERED NUMBER: 06904209) |
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BALANCE SHEET |
31 DECEMBER 2019 |
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2019 | 2018 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Debtors | 6 |
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Cash at bank |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
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PROVISIONS FOR LIABILITIES |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital | 10 |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
ALPHA UNDERWRITING LIMITED (REGISTERED NUMBER: 06904209) |
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BALANCE SHEET - continued |
31 DECEMBER 2019 |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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ALPHA UNDERWRITING LIMITED (REGISTERED NUMBER: 06904209) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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1. | STATUTORY INFORMATION |
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Alpha Underwriting Limited is a
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The presentation currency of the financial statements is the Pound Sterling (£). |
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The financial statements have been rounded to the nearest £. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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These financial statements have been prepared on a going concern basis. Since the balance sheet date, the company has been dealing with the economic impact of COVID 19 and the Government policies to tackle the virus. Part of the company's income is derived from the sale of travel insurance policies and this income has been significantly affected by the Government imposed lockdown in 2020. The Directors have taken a number of steps to protect the business and they are planning for the end of the COVID 19 impact. These steps include furloughing employees, cutting costs, obtaining finance through the group. |
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The Directors have considered the possible further impacts on the business and its ability to continue as a going concern. While the Directors accept there are inherent uncertainties around the further impact of COVID 19 on the business they are satisfied that, based on their assessment of the future possible impacts and their plans to deal with them, the company will continue as a going concern and therefore this is a valid basis for the preparation of the financial statements. |
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Turnover |
Turnover represents brokerage and commissions on insurance policy sales, less cancellations in the period. |
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Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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Tangible fixed assets |
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Land and buildings | - |
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Plant and machinery etc | - |
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ALPHA UNDERWRITING LIMITED (REGISTERED NUMBER: 06904209) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Financial instruments |
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS102 to all of its financial instruments. |
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Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. |
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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. |
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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. |
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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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
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Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
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Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
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Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
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Current or deferred taxation assets and liabilities are not discounted. |
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Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
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Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
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Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
ALPHA UNDERWRITING LIMITED (REGISTERED NUMBER: 06904209) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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2. | ACCOUNTING POLICIES - continued |
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Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
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Insurance transactions |
The company records on its balance sheet amounts due to and from clients and insurers in relation to the insurance transactions that the company handles on behalf of those parties. Insurer money is held in accordance with the agreements in place between the insurer and the company. |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
assets |
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COST |
At 1 January 2019 |
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Additions |
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At 31 December 2019 |
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AMORTISATION |
At 1 January 2019 |
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Charge for year |
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At 31 December 2019 |
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NET BOOK VALUE |
At 31 December 2019 |
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At 31 December 2018 |
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ALPHA UNDERWRITING LIMITED (REGISTERED NUMBER: 06904209) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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5. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST |
At 1 January 2019 |
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Additions |
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Disposals | ( |
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At 31 December 2019 |
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DEPRECIATION |
At 1 January 2019 |
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Charge for year |
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Eliminated on disposal | ( |
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At 31 December 2019 |
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NET BOOK VALUE |
At 31 December 2019 |
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At 31 December 2018 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2019 | 2018 |
£ | £ |
Bank loans and overdrafts |
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Trade creditors |
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Amounts owed to group undertakings |
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Taxation and social security |
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Other creditors |
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8. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2019 | 2018 |
£ | £ |
Bank loans |
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Other creditors |
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ALPHA UNDERWRITING LIMITED (REGISTERED NUMBER: 06904209) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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9. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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2019 | 2018 |
£ | £ |
Bank loans |
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On 2 November 2015 National Westminster Bank PLC registered a debenture which contains a fixed and floating charge covering all the property or undertakings of the company in respect of the bank loan. |
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The loan has a personal guarantee of £100,000 from the director, P E Byrne. |
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On the 20 December 2019 HSBC UK Bank PLC registered a debenture which contains a fixed and floating charge covering all the property or undertakings of the company in respect of the bank loan. |
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10. | CALLED UP SHARE CAPITAL |
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Allotted, issued and fully paid: |
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Year Ended | Year Ended |
Number: | Class: | Nominal | 31.12.18 | 31.12.17 |
value: | £ | £ |
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10,000 | Ordinary Shares | £1 | 10,000 | 10,000 |
10,000 | 10,000 |
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11. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
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P E Byrne is a director of the company, in the previous year he gave a personal guarantee of £100,000 in respect of the National Westminster bank loan. |
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The company owes P E Byrne £29,000 (2018: £Nil) at the year end. |
ALPHA UNDERWRITING LIMITED (REGISTERED NUMBER: 06904209) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2019 |
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12. | RELATED PARTY DISCLOSURES |
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P E Byrne is a director of the company and is a director of Tedaisy Limited, Tedaisy Insurance Group Ltd, PSA Investments Ltd, Tedaisy Investments Limited, Intrinsia Brokers Ltd and Intrinsia Claims Ltd. |
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The company made purchases from Tedaisy Limited totalling £Nil (2018: £5,287). The company made sales to Tedaisy Limited totalling £Nil (2018: £2 38). |
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At the balance sheet date Tedaisy Limited owed the company NIL (2018: £10,000). The loan was deemed not recoverable and written off during the year. |
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The company recharged accountancy fees to PSA Investments Ltd during the the year of £2,000 (2018: £Nil). |
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At the balance sheet date Tedaisy Investments Limited owed the company £49,280 (2018: £Nil). |
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The balance owed from Intrinsia Brokers Limited for the interest free loan at the end of the year was £1,275 (2018: £Nil). The balance owed from Intrinsia Brokers Limited for the interest bearing loan at the end of the year was £Nil (2018: £261,498), during the year interest charged to Intrinsia Brokers Limited totalling £3,942 (2018: £15,478). The company provided services to Intrinsia Brokers Ltd of £12,692 (2018: £31,330). The amount due from Intrinsia Brokers Ltd shown in trade debtors at the balance sheet date was £Nil (2018: £1,420). The company paid Intrinsia Brokers Ltd £1,706 (2018: £nil) for recharged services. |
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At the balance sheet date Intrinsia Claims Ltd owed the company £600 (2018: £Nil). |
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Tedaisy Insurance Group Limited is the parent company of Alpha Underwriting Limited. At the end of the year an amount was due to Tedaisy Insurance Group Limited of £467,604 (2018: due from Tedaisy Insurance Group Limited £57,988). |
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P E Byrne and D S Sweetman are directors of the company and are directors of Practice Cover Limited and Arrow Underwriting Services Limited. |
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At the end of the year an amount was due from Practice Cover Limited of £127,733 (2018: £50,622). |
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At the balance sheet date the company owed Arrow Underwriting Limited £100 (2018: £100). |
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13. | ULTIMATE PARENT COMPANY AND CONTROLLING PARTY |
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The parent company is Tedaisy Insurance Group Limited, a company incorporated in England and Wales. Tedaisy Insurance Group Limited is under the control of the majority shareholder P E Byrne. |
CHARTERED ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS |
ON THE UNAUDITED FINANCIAL STATEMENTS OF |
ALPHA UNDERWRITING LIMITED |
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The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies. |
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In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Alpha Underwriting Limited for the year ended 31 December 2019 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us. |
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As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed within the ICAEW's regulations and guidance at http://www.icaew.com/en/membership/regulations-standards-and-guidance. |
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This report is made solely to the Board of Directors of Alpha Underwriting Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Alpha Underwriting Limited and state those matters that we have agreed to state to the Board of Directors of Alpha Underwriting Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Alpha Underwriting Limited and its Board of Directors, as a body, for our work or for this report. |
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It is your duty to ensure that Alpha Underwriting Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and loss of Alpha Underwriting Limited. You consider that Alpha Underwriting Limited is exempt from the statutory audit requirement for the year. |
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We have not been instructed to carry out an audit or a review of the financial statements of Alpha Underwriting Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. |
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East Wing |
Goffs Oak House |
Goffs Lane |
Goffs Oak |
Hertfordshire |
EN7 5BW |
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