Company Registration No. 08397254 (England and Wales)
TRILOGY MANAGING GENERAL AGENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
LB GROUP
Number One
Vicarage Lane
Stratford
London
England
E15 4HF
TRILOGY MANAGING GENERAL AGENTS LIMITED
COMPANY INFORMATION
Directors
Mr C J Blackwell
Mr R C Hayes
(Appointed 20 February 2020)
Mr P J Staddon
(Appointed 6 July 2020)
Mr C G Harman
(Appointed 20 February 2020)
Secretary
N Watson
(Appointed 26 October 2020)
Company number
08397254
Registered office
1 Vicarage Lane
Stratford
London
E15 4HF
Accountant
LB Group (Stratford)
Number One
Vicarage Lane
Stratford
London
England
E15 4HF
Business address
Third Floor
153 Fenchurch Street
London
Greater London
UK
EC3M 6BB
Auditors
PKF Littlejohn LLP
15 Westferry Circus
London
E14 4HD
TRILOGY MANAGING GENERAL AGENTS LIMITED
CONTENTS
Page
Directors' report
1 - 2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 17
The following pages do not form part of the financial statements
Detailed profit and loss account
TRILOGY MANAGING GENERAL AGENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 1 -
The directors present their annual report and financial statements for the year ended 31 December 2020.
Principal activities
The group acts as insurance underwriting agents and Trilogy Managing Agents Limited is one the main operating companies. The company is authorised and regulated by the Financial Conduct Authority and is an approved Lloyd’s coverholder. The bulk of the company’s activities are conducted through its Appointed Representative.
During the year the company's operating activities were transferred to its subsidiary, Trilogy Underwriting Limited.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr C J Blackwell
Mr R C Hayes
(Appointed 20 February 2020)
Mr P J Staddon
(Appointed 6 July 2020)
Mr C G Harman
(Appointed 20 February 2020)
Mr S Petch
(Resigned 20 February 2020)
Mr N H Topche
(Appointed 20 February 2020 and resigned 26 February 2020)
Mr A Quilter
(Resigned 20 February 2020)
Results and dividends
The result for the period after taxation amounted to a profit of £17,021. The directors do not propose any dividends for the period.
Financial instruments
Treasury operations and financial instruments
The company has various financial assets and liabilities, such as trade receivables and trade payables, arising directly from its operations. These assets and operating cash arising are actively managed to avoid unnecessary currency exposure. The company has not undertaken hedging activity but may do so if such arrangements appear to be a suitable solution to minimising any currency exposures, especially for earnings in currencies other than sterling.
Liquidity risk
The company manages its own cash and borrowings to maximise interest income and minimise interest expense, whilst ensuring that sufficient liquid resources are available to meet operating needs. The company does not hold client money while insurers’ funds are held with approved banks in currencies appropriate to the settlement requirements of the business.
Interest rate risk
The company could become exposed to interest rate risk on bank deposits if interest rates recover.
Foreign currency risk
The company’s principal foreign currency exposure risk potential could arise from income earned on trading operations with customers and suppliers in non sterling currency. Current and anticipated insurance business is predominantly denominated in sterling.
Credit risk
The company acts as an agent for insurers; while suitable vetting arrangements are operated to verify the credit worthiness of insurance brokers from whom business predominantly comes, the risk of non-payment rests largely with others. Investment of cash surpluses are made with banks which are considered by the Board to have adequate credit ratings to achieve the prudential standards applicable in our business.
TRILOGY MANAGING GENERAL AGENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 2 -
Auditor
PKF Littlejohn LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of 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.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr C G Harman
Director
7 January 2022
TRILOGY MANAGING GENERAL AGENTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 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.
TRILOGY MANAGING GENERAL AGENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF TRILOGY MANAGING GENERAL AGENTS LIMITED
- 4 -
Opinion
We have audited the financial statements of Trilogy Managing General Agents Limited (the 'company') for the year ended 31 December 2020 which comprise the profit and loss account, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies.
The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102
The Financial Reporting Standard applicable in the UK and Republic of Ireland
(United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
-
give a true and fair view of the state of the company's affairs as at 31 December 2020 and of its profit for the company for the year then ended;
-
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the
Auditor's
responsibilities for the audit of the
financial statements
section of our report. We are independent of the
company
in accordance with the ethical requirements that are relevant to our audit of the
financial statements
in the UK, including the FRC’s Ethical Standard
, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the directors'
r
eport for the financial year for which the financial statements are prepared is consistent with the financial statements
; and
-
the directors' report has been prepared in accordance with applicable legal requirements.
TRILOGY MANAGING GENERAL AGENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRILOGY MANAGING GENERAL AGENTS LIMITED
- 5 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie
d
material misstatements in the directors'
r
eport
.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
-
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
-
the financial statements are not in agreement with the accounting records and returns; or
-
certain disclosures of
remuneration specified by law are not made; or
-
we have not received all the information and explanations we require for our audit; or
-
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report and take advantage of the small companies exemption from the requirement to prepare a strategic report.
Responsibilities of directors
As explained more fully in the directors'
r
esponsibilities
s
tatement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of
financial statements
that are free from material misstatement, whether due to fraud or error. In preparing the
financial statements
, the
directors are
responsible for assessing the company
'
s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
directors
either
intend
to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements
as a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor's
report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK)
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements
.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
TRILOGY MANAGING GENERAL AGENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF TRILOGY MANAGING GENERAL AGENTS LIMITED
- 6 -
-
We obtained an understanding of the company and the sector in which it operates to identify laws and regulations that could reasonably be expected to have a direct effect on the financial statements. We obtained our understanding in this regard through discussions with management, and application of cumulative audit knowledge and experience of the sector.
-
We determined the principal laws and regulations relevant to the company in this regard to be those arising from FCA Rules, FRS102, Companies Act 2006 and relevant tax compliance regulations in the UK.
-
We designed our audit procedures to ensure the audit team considered whether there were any indications of non-compliance by the company with those laws and regulations. These procedures included, but were not limited to making enquiries of management, review of minutes and review of regulatory correspondence.
-
We also identified the risks of material misstatement of the financial statements due to fraud. We considered, in addition to the non-rebuttable presumption of a risk of fraud arising from management override of controls, that included the potential for management bias in relation to the impairment of debtors and we addressed this by challenging the assumptions and judgements made by management when auditing their assessment of the recoverability of debtors.
-
As in all of our audits, we addressed the risk of fraud arising from management override of controls by performing audit procedures which included, but were not limited to: the testing of journals; reviewing accounting estimates for evidence of bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's 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.
Neil Coulson (Senior Statutory Auditor)
for and on behalf of PKF Littlejohn LLP
7 January 2022
Chartered Accountants
Statutory Auditor
15 Westferry Circus
London
E14 4HD
TRILOGY MANAGING GENERAL AGENTS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2020
- 7 -
2020
2019
£
£
Turnover
109,696
715,210
Administrative expenses
(92,675)
(1,497,432)
Other operating income
718,122
Operating profit/(loss)
17,021
(64,100)
Interest payable and similar expenses
-
(5,094)
Profit/(loss) before taxation
17,021
(69,194)
Tax on profit/(loss)
48,543
Profit/(loss) for the financial year
17,021
(20,651)
TRILOGY MANAGING GENERAL AGENTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2020
31 December 2020
- 8 -
2020
2019
as restated
Notes
£
£
£
£
Fixed assets
Investments
4
70
Current assets
Debtors
5
443,046
257,489
Cash at bank and in hand
6
20,920
30,803
463,966
288,292
Creditors: amounts falling due within one year
7
(240,639)
(81,916)
Net current assets
223,327
206,376
Total assets less current liabilities
223,397
206,376
Capital and reserves
Called up share capital
8
200
200
Share premium account
9
300,000
300,000
Profit and loss reserves
10
(76,803)
(93,824)
Total equity
223,397
206,376
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 7 January 2022 and are signed on its behalf by:
Mr C G Harman
Director
Company Registration No. 08397254
TRILOGY MANAGING GENERAL AGENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2020
- 9 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 December 2019:
Balance at 1 January 2019
200
300,000
(73,173)
227,027
Year ended 31 December 2019:
Loss and total comprehensive income for the year
-
-
(20,651)
(20,651)
Balance at 31 December 2019
200
300,000
(93,824)
206,376
Year ended 31 December 2020:
Profit and total comprehensive income for the year
-
-
17,021
17,021
Balance at 31 December 2020
200
300,000
(76,803)
223,397
TRILOGY MANAGING GENERAL AGENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2020
- 10 -
1
Accounting policies
Company information
Trilogy Managing General Agents Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
1 Vicarage Lane, Stratford, London, E15 4HF.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
TRILOGY MANAGING GENERAL AGENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 11 -
1.2
Going concern
The Company is a managing general agent (“MGA”) underwriting insurance on behalf of major insurance
companies and Lloyd’s syndicates (“Carriers”). The business of insurance underwriting is conducted
through
its
Appointed Representative (“AR)”)
Trilogy Underwriting Limited,
for which it acts as the regulated entity.
T
he Company is a wholly owned subsidiary of Resolution Underwriting Holdings Limited (“RUHL”).
The directors have considered the outlook for the Company, which they consider to be positive and the budgets prepared for the period to 31 December 202
2
have been prepared on a prudent basis and indicate that
no further funding will be required from RU
H
L.
As a regulated entity, the Company is required to report its regulatory capital surplus or deficit to the UK Financial Conduct Authority (“FCA”) quarterly to confirm the solvency position of the Company. The Company has a capital surplus at the year-end and this position is monitored regularly through the review of monthly management accounts and the assessment of future profit and loss, and cash flow forecasts.
Covid-19 has
continued to result in
major disruptions throughout the United Kingdom and the whole world, generally affecting both people and the business world. The situation continu
es to evolve
and the restrictions on movement initially led to a slowdown in trade which will
have
lead to lower incomes across many sectors of business. This will include the purchase of insurance although, aside from the business written by FMGAS, none of the ARs write classes of insurance that are unusually vulnerable to Covid.
The Company assessed the effects of Covid-19 on its own business as follows:
• The effect on its staff and their continuing ability to work safely and efficiently
• The effect on its customers and insurance Carriers
• The potential reduction of the Company’s cost base
• Re-forecast budgets and cashflows
Currently the employees have mostly been working from home. They all have full access to
the various software systems and lines of communication and are working effectively and efficiently and
continuing to provide swift service to their client base. They have contacted their major customers to
assess the impact of the virus on their own businesses and have also contacted the insurance Carriers.
Somewhat surprisingly, the most important impact of Covid so far has been significantly to increase the
numbers of enquiries for insurance and the number of quotes being requested on new business. This has
much to do with the continuing levels of service that the ARs have offered and the fact that many insurance
companies have been struggling to offer any sort of decent levels of service.
The AR's have prepared budgets for 2021 and 2022.
Based on these re-forecasts, which have been prepared on a prudent basis, the Directors have considered the outlook for the Company and believe that the Company will be profitable during 2020 and 2021. Accordingly, the financial statements of the Company as at 31 December 2020 have been prepared on a going concern basis. Additionally, the Company has received confirmation from its parent company RUHL that it will continue to support the Company’s operations for the foreseeable future.
The directors are confident about the Company's prospects but, notwithstanding the prudent forecasts,
they recognise that the success or otherwise of it being able to meet its forecasts is inevitably uncertain.
TRILOGY MANAGING GENERAL AGENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover
The
C
ompany generates revenue principally from commissions
, profit commissions
and fees associated with underwriting and administering insurance contracts
.
Brokerage, commission and fees not due until after the year end are recognised on the inception of the insurance contracts concerned, which is when the underwriting services have been substantially completed. Adjustments to commission and fees are recognised when they can be ascertained with reasonable certainty, which is normally when the amounts concerned are advised or confirmed by the relevant third parties
.
Profit commissions are receivable based upon the underwriting performance of certain schemes. They are recognised when the Company can be certain that the commission will be paid and the amount can be reasonably accurately ascertained.
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:
Computers
5 years 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.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.6
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
TRILOGY MANAGING GENERAL AGENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 13 -
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
debtors
and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
, bank loans, loans from
fellow group companies and preference shares that are classified as debt, are
initially recognised at transaction price unless the arrangement constitutes a
financing transaction, where the debt instrument is measured at the present value of
the future
paymen
ts discounted at a market rate of interest.
Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective
interest rate method.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
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.
TRILOGY MANAGING GENERAL AGENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
1
Accounting policies
(Continued)
- 14 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the
profit and loss account
, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or
fixed assets
.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
4
10
TRILOGY MANAGING GENERAL AGENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 15 -
3
Tangible fixed assets
Computers
£
Cost
At 1 January 2020 and 31 December 2020
766
Depreciation and impairment
At 1 January 2020 and 31 December 2020
766
Carrying amount
At 31 December 2020
At 31 December 2019
4
Fixed asset investments
2020
2019
£
£
Shares in group undertakings and participating interests
70
The company owns
7
00
Ordinary A
shares at a par value of £0.
1
in
Trilogy Underwriting L
imited, representing
7
0% of th
e class of
share capital.
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 January 2020
-
Additions
70
At 31 December 2020
70
Carrying amount
At 31 December 2020
70
At 31 December 2019
-
TRILOGY MANAGING GENERAL AGENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 16 -
5
Debtors
2020
2019
As restated
Amounts falling due within one year:
£
£
Trade debtors
361,193
253,796
Amounts due from other group undertakings
79,214
Other debtors
2,639
3,693
443,046
257,489
6
Bank balances
In addition to the bank balance shown on the balance sheet there is a balance
of £738,120
held in a separate bank account maintained for client monies
. This balance
is considered to be monies where the benefit does not belong to the company and
is
therefore excluded from the balance sheet.
The comparative figures had previously included £815,840 of these monies on the balance sheet
. The comparative balances have been amended to e
xclude
these
figures
in order
to be consistent with this year’s presentation. The
re was
included
within insurance creditors
in the comparative balances an
equivalent liability of £762,766
which
has accordingly been reduced to nil
. The comparative for i
nsurance debtor
s
ha
s alos
been increased by £53,074 to £253,795.
7
Creditors: amounts falling due within one year
2020
2019
As restated
£
£
Bank loans and overdrafts
3
Taxation and social security
24,142
Amounts due to other group undertakings
234,936
Accruals and deferred income
5,703
57,771
240,639
81,916
8
Called up share capital
2020
2019
2020
2019
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
140
140
140
140
A Ordinary shares of £1 each
60
60
60
60
200
200
200
200
The 'A' Ordinary Shares and Ordinary Shares rank pari passu. On a return of capital, whether in a winding-up or reduction of capital or otherwise, or a sale of the company, the holders of the 'A' Ordinary Share receive preferential rights to the amount held within the share premium.
TRILOGY MANAGING GENERAL AGENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2020
- 17 -
9
Share premium account
2020
2019
£
£
At the beginning and end of the year
300,000
300,000
10
Profit and loss reserves
2020
2019
£
£
At the beginning of the year
(93,824)
(73,173)
Profit/(loss) for the year
17,021
(20,651)
At the end of the year
(76,803)
(93,824)
11
Related party transactions
Mr C G Harman and Mr R C Hayes are also directors in Trilogy Underwriting Limited, an Appointed Representative of the company and is a subsidiary of the Company. During the year, the Company incurred commission of £949,478 (2019: £nil) relating to this agreement with Trilogy Underwriting Limited. As at 31 December 2020, the Company owed £171
,
172 (2019: £nil) to Trilogy Underwriting Limited in respect of this agreement.
Mr C G Harman and Mr R C Hayes are also directors in Resolution Group Services Limited, a fellow subsidiary of the parent company, Resolution Underwriting Holdings Limited. As at 31 December 2020, the Company owed £63,764 (2019: £nil) to Resolution Underwriting Group Services Limited and included in administration expenses is a management charge of £62,000 (2019: £nil) from Resolution Group Services Limited.
Mr C G Harman and Mr R C Hayes are also directors in Resolution Underwriting Holdings Limited, the parent company of the Company. As at 31 December 2020, the Company was owed £79,214 (2019: £nil) by Resolution Underwriting Holdings Limited.
12
Parent company
On 25 February 2020 the parent company changed to Resolution Underwriting Holdings Limited, a company incorporated and domiciled in England. The address of the registered office is 1 Vicarage Lane, London E15 4HF.
2020-12-31
2020-01-01
false
CCH Software
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Mr R C Hayes
Mr P J Staddon
Mr C G Harman
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Mr A Quilter
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