Company Registration No. 12087894 (England and Wales)
INSURETY LTD
ANNUAL REPORT AND UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2020
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 - 8
INSURETY LTD
BALANCE SHEET
AS AT
31 JULY 2020
31 July 2020
- 1 -
2020
Notes
£
£
Fixed assets
Tangible assets
3
16,825
Current assets
Debtors
4
214,620
Cash at bank and in hand
218,298
432,918
Creditors: amounts falling due within one year
5
(273,220)
Net current assets
159,698
Total assets less current liabilities
176,523
Creditors: amounts falling due after more than one year
6
(149,167)
Net assets
27,356
Capital and reserves
Called up share capital
7
50,000
Share premium account
8
149,700
Profit and loss reserves
9
(172,344)
Total equity
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 July 2020 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 JULY 2020
31 July 2020
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 15 June 2021 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 JULY 2020
- 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
During the period to 3
1
July
2020, the company made losses arising on the start up costs expected of a
venture of this nature
, and also due to the impact
of the coronavirus (COVID-19
)
.
The director
s
, however, consider the company to be a going concern due to the continued funding and support of
the parent company and the other
shareholders of the business.
1.3
Reporting period
The financial statements are prepared based on a
thirteen
month period to
31 July
20
20. This was due to Insurety Limited incorporating on 5 July 2019. Next years 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:
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 JULY 2020
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 JULY 2020
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
The company acts as agents in placing the insurable risks of its clients with insurers and, as such, is generally not liable as principals for amounts arising from such transactions. Not withstanding these legal relationships, debtors and creditors arising from insurance broking transactions are shown as assets and liabilities. This recognises that the insurance broker is entitled to retain the investment income on any cash flows arising from these transactions.
2
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2020
Number
Total
2
INSURETY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2020
- 6 -
3
Tangible fixed assets
Computers
£
Cost
At 5 July 2019
Additions
17,949
At 31 July 2020
17,949
Depreciation and impairment
At 5 July 2019
Depreciation charged in the Period
1,124
At 31 July 2020
1,124
Carrying amount
At 31 July 2020
16,825
4
Debtors
2020
Amounts falling due within one year:
£
Trade debtors
213,321
Other debtors
1,299
214,620
5
Creditors: amounts falling due within one year
2020
£
Bank loans
833
Trade creditors
243,382
Taxation and social security
12,065
Other creditors
9,653
Accruals and deferred income
7,287
273,220
Loans due within one year includes bank loans of £
833
from the government business bounce back loan scheme.
INSURETY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2020
- 7 -
6
Creditors: amounts falling due after more than one year
2020
Notes
£
Bank loans and overdrafts
49,167
Amounts owed to group undertakings
100,000
149,167
Loans due
after
one year includes bank loans of £
49,167
from the government business bounce back loan scheme.
Included in amounts owed to group undertakings is an amount of £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
7
Called up share capital
2020
2020
Ordinary share capital
Number
£
Issued and fully paid
Ordinary of £1 each
50,000
50,000
On
5
July
20
19
1
00
Ordinary share
s
w
ere
issued at a par value of £1 on incorporation.
On
4 October 2019 a further
49
,
9
00
£1
Ordinary shares were issued at a
premium of £4 per share
.
8
Share premium account
2020
£
At the beginning of the Period
Issue of new shares
149,700
At the end of the Period
149,700
INSURETY LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2020
- 8 -
9
Profit and loss reserves
2020
£
At the beginning of the Period
Loss for the Period
(172,344)
At the end of the Period
(172,344)
10
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 is Peter Geoffrey Cullum by reference to his shareholding in the parent company.
11
Insurance broking bank account
The company holds monies in insurance broking bank accounts for the benefit of insurance broking creditors, this amount to £65,594 at the year end.