Company Registration No. 12087894 (England and Wales)
INSURETY LTD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
LB GROUP
Number One
Vicarage Lane
Stratford
London
England
E15 4HF
INSURETY LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
INSURETY LTD
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
21,123
16,825
Current assets
Debtors
5
158,281
36,832
Cash at bank and in hand
206,180
152,704
364,461
189,536
Creditors: amounts falling due within one year
6
(195,024)
(29,838)
Net current assets
169,437
159,698
Total assets less current liabilities
190,560
176,523
Creditors: amounts falling due after more than one year
7
(33,785)
(149,167)
Net assets
156,775
27,356
Capital and reserves
Called up share capital
8
50,000
50,000
Share premium account
9
149,700
149,700
Profit and loss reserves
10
(42,925)
(172,344)
Total equity
156,775
27,356
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial period ended 31 December 2021 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
INSURETY LTD
BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2021
31 December 2021
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 6 December 2022 and are signed on its behalf by:
Mr R A Mayo
Director
Company Registration No. 12087894
INSURETY LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 3 -
1
Accounting policies
Company information
Insurety Ltd is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Cheltenham Film Studios, Hatherley Lane, Cheltenham, GL51 6PN.
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.
1.2
Going concern
The director
s
consider the company to be a going concern due to the
return to profitability during the period. The directors expect the company will continue to be profitable in the next financial year and beyond.
1.3
Reporting period
The financial statements are prepared based on a
seventeen
month period to
31 December 2021. The prior year financial statements were prepared on a thirteen month period to 31 July 2021. Therefore the comparative amounts presented in the financial statements (including the related notes) will not be entirely comparable.
1.4
Turnover
Turnover represents broking commissions and fees. Brokerage income is recognised the later of when the insured is debited with the premium and the inception date of the policy.
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
20% straight line
Computers
33% 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
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the
company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
INSURETY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in
profit
or
loss
, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, 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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset
, with
the net amounts presented in the financial statements
,
when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include
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.
INSURETY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 5 -
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.
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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
Insurance broking debtors and creditors
In accordance with the Statement of Accounting Principles, the company recognises insurance debtors and fiduciary cash balances only to the extent that the company has a material economic interest in those balances. Accordingly, where insurance debtors and fiduciary cash are not recognised in the company's balance sheet, insurance creditors relating to those insurance debtors and fiduciary cash are also not included in the company's balance sheet. The net amount that will be receivable by the company from the fiduciary accounts, representing only that element of the insurance debtors and fiduciary cash that is commissions, fees or interest due to the company, is shown under debtors.
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.
INSURETY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 6 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2021
2020
Number
Number
Total
4
2
4
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 August 2020
17,949
17,949
Additions
1,545
6,560
8,105
Disposals
(1,299)
(1,299)
At 31 December 2021
1,545
23,210
24,755
Depreciation and impairment
At 1 August 2020
1,124
1,124
Depreciation charged in the period
195
2,710
2,905
Eliminated in respect of disposals
(397)
(397)
At 31 December 2021
195
3,437
3,632
Carrying amount
At 31 December 2021
1,350
19,773
21,123
At 31 July 2020
16,825
16,825
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
as restated
Trade debtors
132,571
35,533
Other debtors
19,510
1,299
152,081
36,832
INSURETY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
5
Debtors
(Continued)
- 7 -
2021
2020
Amounts falling due after more than one year:
£
£
Other debtors
6,200
Total debtors
158,281
36,832
6
Creditors: amounts falling due within one year
2021
2020
£
£
as restated
Bank loans
10,000
833
Amounts owed to group undertakings
116,000
Taxation and social security
16,189
12,065
Other creditors
52,835
16,940
195,024
29,838
Loans due within one year includes bank loans of
£10,000 (2020:
£
833)
from the government business bounce back loan scheme.
Included in amounts owed to group undertakings is an amount of £100,000 (2020: £nil) owed to the parent company, Minority Venture Partners 9 Limited. Interest is charged on the balance at 8.5% above the Bank of England base rate.
7
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Bank loans and overdrafts
33,785
49,167
Amounts owed to group undertakings
100,000
33,785
149,167
Loans due
after
one year includes bank loans of
£33,785 (2020:
£
49,167)
from the government business bounce back loan scheme.
Included in amounts owed to group undertakings is an amount of £nil (2020: £100,000) owed to the parent company, Minority Venture Partners 9 Limited. Interest is charged on the balance at 8.5% above the Bank of England base rate.
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
9,167
INSURETY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 8 -
8
Called up share capital
2021
2020
2021
2020
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
50,000
50,000
50,000
50,000
9
Share premium account
2021
2020
£
£
At the beginning of the period
149,700
Issue of new shares
149,700
At the end of the period
149,700
149,700
10
Profit and loss reserves
2021
2020
as restated
£
£
At the beginning of the period
(172,344)
Profit/(loss) for the period
129,419
(172,344)
At the end of the period
(42,925)
(172,344)
11
Related party transactions
Included in other creditors due within one year is an amount of £16,000 (2020: £nil) owed to the parent company. This balance is interest free and repayable on demand.
Included in administration costs are non executive director fees of £22,917 (2020: £20,833) paid to the parent company.
Included in other debtors is an amount of £19,076 (2020: £nil) owed by the directors. Interest is charged at 2.5% on this balance.
12
Parent company
The ultimate parent company is Minority Venture Partners 9 Limited, a company incorporated in England. The address of the registered office is Venture House St. Leonards Road, Allington, Maidstone, England, ME16 0LS.
The ultimate controlling party is P. G. Cullum by reference to his shareholding in the parent company.
INSURETY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2021
- 9 -
13
Bank balances
In addition to the bank balance shown on the balance sheet there is a balance of £139,316 (2020: £65,594) 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.
14
Prior period adjustment
The 2020 comparatives have been amended to net down the insurance broking balances, as per the accounting policy in note 1.11. As a result debtors have decreased by £177,788 to £36,832, bank balances have reduced by £65,594 to £152,704 and creditors due within one year have reduced by £243,382 to £29,838.
There is no change in the profit and loss in the 2020 comparatives arising from this amendment.