Goodlord Protect Ltd
Financial Statements
For the year ended 31 August 2022
For Filing with Registrar
Company Registration No. 10435096 (England and Wales)
Goodlord Protect Ltd
Company Information
Directors
Oh Goodlord Ltd
W Reeve
(Appointed 27 March 2023)
Secretary
Oh Goodlord Ltd
Company number
10435096
Registered office
The Hickman
2-4 Whitechapel Road
London
E1 1EW
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Goodlord Protect Ltd
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 8
Goodlord Protect Ltd
Balance Sheet
As at 31 August 2022
Page 1
2022
2021
as restated
Notes
£
£
£
£
Current assets
Debtors
4
9,410,893
4,132,402
Cash at bank and in hand
5
2,148,394
2,015,588
11,559,287
6,147,990
Creditors: amounts falling due within one year
6
(3,284,700)
(1,893,474)
Net current assets
8,274,587
4,254,516
Creditors: amounts falling due after more than one year
7
(39,167)
(49,167)
Net assets
8,235,420
4,205,349
Capital and reserves
Called up share capital
8
1
1
Profit and loss reserves
8,235,419
4,205,348
Total equity
8,235,420
4,205,349
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered 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 4 August 2023 and are signed on its behalf by:
W Reeve
Director
Company Registration No. 10435096
Goodlord Protect Ltd
Notes to the Financial Statements
For the year ended 31 August 2022
Page 2
1
Accounting policies
Company information
Goodlord Protect Ltd is a private company limited by shares incorporated and domiciled in England and Wales. The registered office is The Hickman, 2-4 Whitechapel Road, London, E1 1EW.
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 financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound. The prior year comparatives are unaudited.
The financial statements have been prepared under the historical cost convention.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Oh Goodlord Limited. These consolidated financial statements are available from its registered office, The Hickman, 2-4 Whitechapel Road, London, E1 1EW.
1.2
Going concern
At the time of approving the financial statements, the Directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.true
Goodlord Protect Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 August 2022
1
Accounting policies
(Continued)
Page 3
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Revenue generated from the sale of RPI policies is recognised upfront. RPI policies are 12 months in length. Where RPI policies are invoiced on a monthly basis, accrued income is recognised in the first month of sale for the full 12 months of the policy.
Revenue recognised for the direct to landlord product is also recognised upfront.
Tenants liability insurance revenue is recognised on receipt of the reporting from paymentshield which shows the commissions due to the company for policies sold.
1.4
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.5
Financial instruments
Basic financial instruments are measured at amortised cost. The company has no other financial
instruments or basic financial instruments measured at fair value.
1.6
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.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.7
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.
Goodlord Protect Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 August 2022
1
Accounting policies
(Continued)
Page 4
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.
1.8
Insurance debtors and creditors
The company acts as an agent in broking the insurable risks of clients and, generally speaking, is not liable as a principal for premiums due to underwriters or for claims payable to clients. As a result of the legal relationship with clients and underwriters, the company has followed FRS 102 for insurance intermediaries by showing net balances resulting from debtors and creditors. The cash balances relating to insurance business are included as cash of the company itself, and shown as a corresponding liability. Insurance debtors are only recognised in respect of brokerage due.
Goodlord Protect Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 August 2022
Page 5
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.
The Directors do not consider there to be any material areas of estimation uncertainty or judgements in the current and prior year, other than those noted below.
RPI Cancellation Provision
RPI policies sold cover 12 month periods with some policies allowing customers to cancel during the policy period. As all revenue is recognised upfront for RPI policies management has estimated the value of a cancellation provision, based on historic cancellation rates.
Accrued Income Calculation
Accrued income has been calculated taking the total volume of new monthly policies by month, and using the rate card whilst incorporating an average discount rate to calculate an accrued income amount at the end of each month.
TCLI Clawback Provision
A provision is included in the accounts for the clawback of commissions paid by Paymentshield using historic actual clawback numbers.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
1
1
4
Debtors
2022
2021
As restated
Amounts falling due within one year:
£
£
Trade debtors
1,931,428
335,460
Amounts due from group undertakings
5,129,623
1,650,781
Other debtors
2,349,842
2,146,161
9,410,893
4,132,402
Goodlord Protect Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 August 2022
Page 6
5
Cash at bank and in hand
Included within the year end balance is client monies of £nil (2021 - £25,296).
6
Creditors: amounts falling due within one year
2022
2021
As restated
£
£
Trade creditors
958,278
464,922
Amounts due to group undertakings
17,000
Other creditors
2,326,422
1,411,552
3,284,700
1,893,474
7
Creditors: amounts falling due after more than one year
2022
2021
£
£
Bank loans and overdrafts
39,167
49,167
The loan is an unsecured debt. During the first 12 months, the UK Government will pay interest, at 2.50% per annum, due under this loan to the lender as a Business Interruption Payment.
On 27 September 2021, Oh Goodlord Ltd, the Company's parent, entered into a debenture agreement. A cross guarantee structure exists for this debenture between Oh Goodlord Ltd, Vouch Ltd and Goodlord Protect Ltd.
8
Called up share capital
2022
2021
£
£
Ordinary share capital
Issued and fully paid
1 ordinary share of £1
1
1
1
1
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
The auditor was Moore Kingston Smith LLP.
Goodlord Protect Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 August 2022
Page 7
10
Related party transactions
The Company has taken advantage of the exemption granted within Section 33 of FRS 102, which does not require disclosure of transactions between a subsidiary undertaking and other Group undertakings. There are no key management personnel other than the directors.
11
Parent company
Goodlord Protect Ltd is a subsidiary of Oh Goodlord Ltd, a company registered in England and Wales, and with the registered address; The Hickman, 2-4 Whitechapel Road, London, E1 1EW. Oh Goodlord Ltd is the ultimate controlling party.
12
Prior period adjustment
Changes to the balance sheet
At 31 August 2021
As previously reported
Adjustment
As restated
£
£
£
Other debtors
1,123,316
1,103,025
2,226,341
Other creditors
(851,907)
(559,645)
(1,411,552)
Capital and reserves
Profit and loss
3,742,148
463,200
4,205,348
Goodlord Protect Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 August 2022
12
Prior period adjustment
(Continued)
Page 8
Changes to the profit and loss account
Period ended 31 August 2021
As previously reported
Adjustment
As restated
£
£
£
Sales
3,271,078
463,200
3,734,278
Direct costs
(133,531)
-
(133,531)
Profit for the financial period
2,785,523
463,200
3,248,723
Prior year adjustments were required to be included in the accounts for the following reasons:
Goodlord Protect Ltd previously recognised RPI revenue and associated costs on 12 month non-cancellable policies on a monthly basis.
In 2022 the revenue has been recognised on the first day of the policy in line with company's performance obligations being substantially complete. For comparability the 2021 presentation of the profit and loss account and balance sheet has been amended in line with this treatment.
An associated RPI cancellation provision has been recognised in 2022. As above, for comparability the 2021 presentation of the profit and loss account and balance sheet has been amended in line with this treatment.