REGISTERED NUMBER: |
Report of the Directors and |
Financial Statements |
for the Year Ended 30 September 2022 |
for |
Icw Insurance Services Ltd |
REGISTERED NUMBER: |
Report of the Directors and |
Financial Statements |
for the Year Ended 30 September 2022 |
for |
Icw Insurance Services Ltd |
Icw Insurance Services Ltd (Registered number: 10985073) |
Contents of the Financial Statements |
for the year ended 30 September 2022 |
Page |
Company Information | 1 |
Report of the Directors | 2 |
Report of the Independent Auditors | 4 |
Statement of Comprehensive Income | 8 |
Balance Sheet | 9 |
Statement of Changes in Equity | 10 |
Notes to the Financial Statements | 11 |
Icw Insurance Services Ltd |
Company Information |
for the year ended 30 September 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
1 Charterhouse Mews |
London |
EC1M 6BB |
BANKERS: |
116 Fenchurch Street |
London |
EC3M 5AL |
Icw Insurance Services Ltd (Registered number: 10985073) |
Report of the Directors |
for the year ended 30 September 2022 |
The directors present their report with the financial statements of the company for the year ended 30 September 2022. |
PRINCIPAL ACTIVITY |
ICW Insurance Services is a Managing General Agent writing A-rated residential and commercial building warranties. Revenue is derived from the provision and management of insurance cover on fully underwritten policies. |
REVIEW OF BUSINESS |
The company has recruited more staff to meet demand and ensure high customer standards are met. |
Sustained marketing investment for search engine optimisation and advertising campaigns has continued to generate both web traffic and increase brand awareness. |
Further investments have been made in improving our technology capabilities including the development of a client portal to facilitate document upload and a new application for tablet use by our inspection staff to assist evidential capture and real time reporting. |
KEY PERFORMANCE INDICATORS |
ICW Insurance Services intends to monitor performance using the following key indicators: |
- | Revenue growth |
- | Gross margin |
- | Profit growth (EBITDA) |
- | Claims ratio and customer service review |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks to the company arise from the COVID-19, Ukraine war, increase in global inflation and the potential knock-on effects associated with price increases which could slow the economy. In addition, changes in legislation and regulation affecting the insurance industry and competition within the marketplace. |
The Directors manage these risks by: |
Close monitoring of economic and market conditions, the legislative and regulatory framework and responding to changes by updating guidance delivered to operational staff via a robust quality management system, ensuring continued compliance with risk management frameworks. |
Close monitoring of financial performance through financial reporting and the measurement of KPIs including project pipeline, revenue by source & location, cost, profitability, and cash management. |
FUTURE DEVELOPMENTS |
- | New IBG product which compliments existing warranty products which went live in September 2022 |
- | New Surety product |
- | New Commercial Insurance products to go live Q2 2023 |
The directors expect the level of activity to increase in the forthcoming year due to the introduction of new products, sustained marketing and recruitment strategies and the growth of the ICW brand with the warranty, building control and insurance products. |
A continued focus on the recruitment of key personnel and IT improvements to ensure greater capabilities and efficiencies, along with continued development of our Risk Management Framework to ensure our internal controls are robust and prepared for any industry changes will further develop our business. |
Icw Insurance Services Ltd (Registered number: 10985073) |
Report of the Directors |
for the year ended 30 September 2022 |
DIVIDENDS |
£1,500,000 will be distributed for the year ended 30 September 2022 (2021:NIL). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 October 2021 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
The company made donations of £828 (2021: £500) in the period. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Report of the Directors 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. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Anstey Bond LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Icw Insurance Services Ltd |
Opinion |
We have audited the financial statements of Icw Insurance Services Ltd (the 'company') for the year ended 30 September 2022 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 Financial Reporting Standard 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 30 September 2022 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. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit: |
- | the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Icw Insurance Services Ltd |
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 identified material misstatements in the Report of the Directors. |
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 Statement of Directors' Responsibilities set out on page three, 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 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. |
Report of the Independent Auditors to the Members of |
Icw Insurance Services Ltd |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
. | the nature of the industry and sector, control environment and business performance including the design of the Company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; |
. | results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
. | any matters we identified having obtained and reviewed the Company's documentation of their policies and procedures relating to: |
. | identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; |
. | detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
. | the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
. | the matters discussed among the audit engagement team and involving relevant internal specialists, including tax and IT specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue deferrals. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty. |
Audit response to the risks identified |
Our procedures to respond to risks identified included the following: |
. | reviewing the financial statement disclosures and verifying through obtaining supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
. | enquiring of management and external legal counsel concerning actual and potential litigation and claims; |
. | performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
. | reading minutes of meetings of those charged with governance, and reviewing regulatory correspondence |
. | obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and |
. | obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and |
Report of the Independent Auditors to the Members of |
Icw Insurance Services Ltd |
. | in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists and significant component audit teams, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
1 Charterhouse Mews |
London |
EC1M 6BB |
Icw Insurance Services Ltd (Registered number: 10985073) |
Statement of Comprehensive |
Income |
for the year ended 30 September 2022 |
30.9.22 | 30.9.21 |
Notes | £ | £ |
TURNOVER |
Cost of sales | ( |
) | ( |
) |
GROSS PROFIT |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT and |
PROFIT BEFORE TAXATION |
Tax on profit | 6 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Icw Insurance Services Ltd (Registered number: 10985073) |
Balance Sheet |
30 September 2022 |
30.9.22 | 30.9.21 |
Notes | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
Investments | 9 |
CURRENT ASSETS |
Debtors | 10 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 11 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 14 | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Retained earnings | 16 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Icw Insurance Services Ltd (Registered number: 10985073) |
Statement of Changes in Equity |
for the year ended 30 September 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 October 2020 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 September 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 September 2022 |
Icw Insurance Services Ltd (Registered number: 10985073) |
Notes to the Financial Statements |
for the year ended 30 September 2022 |
1. | STATUTORY INFORMATION |
Icw Insurance Services Ltd is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows; |
• | the requirement of paragraph 3.17(d); |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirements of paragraphs 26.18(b), 26.19 to 26.21 and 26.23; |
• | the requirement of paragraph 33.7. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue recognition - Insurance activities |
Credit is taken for commission at the point at which placement services are substantially complete. Commissions on adjustment premiums, binding authorities and treaties are recognised when revenue is confirmed as earned. Fees charged for services are recognised when earned. |
Revenue recognition - Services |
Turnover from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable. Where a contract has only been partially completed at the balance sheet date turnover represents the fair value of the service provided to date based on the stage of completion of the contract activity at the balance sheet date. |
Tangible fixed assets |
- Fixtures & fittings - 20% |
- Computer equipment - 20% |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
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. |
Icw Insurance Services Ltd (Registered number: 10985073) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2022 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
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. |
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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowings or current liabilities. |
Insurance broking debtors and creditors |
Insurance intermediaries act as agents in the placement of insurable risks. As such, they are not liable, as principal, for amounts arising from such transactions. In recognition of this relationship, debtors from insurance intermediary transactions are not included as an asset of the Company. Other than the receivable for brokerage, commissions, or fees earned on a transaction, no recognition of the insurance transaction occurs until the Company receives cash in respect of the premiums or claims. At that point, a corresponding liability is established in favour of the insurer or the cedant, unless the cash is held in trust, in which case neither the cash nor the corresponding liability is reflected in the Company's financial statements. |
Trade and other debtors |
Trade and other debtors that are receivable within one year and do not constitute a financing transaction are recorded at the undiscounted amount expected to be received, net of impairment. Those that are receivable after more than one year or that constitute a financing transaction are recorded initially at fair value less transaction costs and subsequently at amortised cost, net of impairment. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
3. | EMPLOYEES AND DIRECTORS |
30.9.22 | 30.9.21 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
Icw Insurance Services Ltd (Registered number: 10985073) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2022 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
30.9.22 | 30.9.21 |
Employees |
30.9.22 | 30.9.21 |
£ | £ |
Directors' remuneration |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
30.9.22 | 30.9.21 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Auditors' remuneration |
5. | EXCEPTIONAL ITEMS |
30.9.22 | 30.9.21 |
£ | £ |
Exceptional items | 971,771 | - |
The exceptional item relates to reversing claims provision amounting to £971,771. |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.9.22 | 30.9.21 |
£ | £ |
Current tax: |
UK corporation tax |
Tax on profit |
7. | DIVIDENDS |
30.9.22 | 30.9.21 |
£ | £ |
Ordinary shares of £1 each |
Interim |
Icw Insurance Services Ltd (Registered number: 10985073) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2022 |
8. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 October 2021 |
Additions |
At 30 September 2022 |
DEPRECIATION |
At 1 October 2021 |
Charge for year |
At 30 September 2022 |
NET BOOK VALUE |
At 30 September 2022 |
At 30 September 2021 |
9. | FIXED ASSET INVESTMENTS |
Investments (neither listed nor unlisted) were as follows: |
30.9.22 | 30.9.21 |
£ | £ |
Other investments | - | 23,170 |
10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.22 | 30.9.21 |
£ | £ |
Trade debtors |
Provision for bad debts | (50,000 | ) | - |
Amounts owed by group undertakings |
Tax |
Prepayments and accrued income |
11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.9.22 | 30.9.21 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Trade creditors |
Amounts owed to group undertakings |
Tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
Icw Insurance Services Ltd (Registered number: 10985073) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2022 |
12. | LOANS |
An analysis of the maturity of loans is given below: |
30.9.22 | 30.9.21 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
13. | LEASING AGREEMENTS |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
30.9.22 | 30.9.21 |
£ | £ |
Within one year |
14. | PROVISIONS FOR LIABILITIES |
30.9.22 | 30.9.21 |
£ | £ |
Other provisions | - | 971,771 |
The claims handling provision is no longer considered justifiable as the business has employed a claims handling team, who have full delegated authority to manage claims on behalf of the insurer and so we are not expecting any of the costs initially provided for. |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.9.22 | 30.9.21 |
value: | £ | £ |
Ordinary | £1 | 1,000 | 1,000 |
16. | RESERVES |
Retained |
earnings |
£ |
At 1 October 2021 |
Profit for the year |
Dividends | ( |
) |
At 30 September 2022 |
17. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
They are included in the parent company consolidated financial statements which are available on Companies House. |
Icw Insurance Services Ltd (Registered number: 10985073) |
Notes to the Financial Statements - continued |
for the year ended 30 September 2022 |
18. | ULTIMATE CONTROLLING PARTY |
As at the balance sheet date, the ultimate controlling party is Mr D S Leathem by virtue of his in the control of the Parent Company, ICW Group Holdings Limited. |
The controlling party is ICW Group Holdings Ltd, a company incorporated in United Kingdom. Copies of the consolidated financial statements for ICW Group Holdings Ltd are available from Companies House. |