Company Registration No. 08196422 (England and Wales)
CREATIVE BENEFIT WEALTH MANAGEMENT LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2019
PAGES FOR FILING WITH REGISTRAR
CREATIVE BENEFIT WEALTH MANAGEMENT LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
CREATIVE BENEFIT WEALTH MANAGEMENT LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 NOVEMBER 2019
30 November 2019
- 1 -
2019
2018
Notes
£
£
£
£
Current assets
Trade and other receivables
4
530,311
602,144
Cash and cash equivalents
63,732
37,729
594,043
639,873
Current liabilities
5
(430,894)
(503,419)
Net current assets
163,149
136,454
Provisions for liabilities
6
(12,418)
(49,810)
Net assets
150,731
86,644
Equity
Called up share capital
7
19,998
19,998
Retained earnings
130,733
66,646
Total equity
150,731
86,644
The directors of the company have elected not to include a copy of the income statement 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 28 May 2020 and are signed on its behalf by:
C G Harrison
S A Webber
Director
Director
Company Registration No. 08196422
CREATIVE BENEFIT WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 2 -
1
Accounting policies
Company information
Creative Benefit Wealth Management Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Cannon Place, 78 Cannon Street, London, England, EC4N 6AF.
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
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
The company operated at a profit for the year of £64,087. At the year end net current assets amounted to £163,149 and net assets amounted to £150,731.
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have prepared cash flow and profit forecasts which show that the company can meet its financial obligations as they fall due. Thus the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
In the annual review of the Company’s going concern, the Directors have considered the immediate and longer term impact of the Covid-19 pandemic for the group. The directors have taken action to reduce the overhead cost base of the business where appropriate and also safeguard cashflow by utilising government support initiatives such as deferred tax payments and the furlough scheme, and deferring the settlement of liabilities which do not need to be settled in the near term. After a careful review of the business forecasts, making prudent assumptions for new client business, the impact to existing business and the direct costs associated with this, the directors are satisfied that the cashflow forecasts support that there is no material uncertainty in relation to the going concern position of the business. The Directors are committed to carrying out regular reviews of the Company’s cash flows to monitor the ongoing situation and take further steps as required.
CREATIVE BENEFIT WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 3 -
1.3
Revenue
Turnover represents adviser-charges and fees receivable from third party providers and fees for consultancy services.
Fees are recognised as follows:
- Fees and adviser-charges are recognised on the completion of the relevant documentation to effect the completion of the transaction.
- Renewal fees are recognised when receivable.
Adviser charges are stated net of a provision for clawback. The provision for clawback is made appropriate to the type of policy written.
Consultancy services income is recognised on a percentage completion basis over the course of the contract.
1.4
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.
1.5
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 statement of financial position 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 trade and other receivables 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.
CREATIVE BENEFIT WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 4 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 payables
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 payables are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
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 income statement 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.
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 income statement, 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.
CREATIVE BENEFIT WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
1
Accounting policies
(Continued)
- 5 -
1.8
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation.
Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i
s
measured at present value
,
the unwinding of the discount is recognised as a finance cost in profit or loss in the period
in which
it arises.
1.9
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 non-current 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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the period they are payable.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 19 (2018 - 19).
3
Operating profit
2019
2018
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
7,900
7,875
4
Trade and other receivables
2019
2018
Amounts falling due within one year:
£
£
Trade receivables
512,479
602,144
Other receivables
17,832
-
530,311
602,144
CREATIVE BENEFIT WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 6 -
5
Current liabilities
2019
2018
£
£
Trade payables
58,378
72,300
Amounts owed to group undertakings
162,450
22,583
Corporation tax
15,581
-
Other taxation and social security
-
8,651
Other payables
194,485
399,885
430,894
503,419
6
Provisions for liabilities
2019
2018
£
£
Clawback provision
12,418
49,810
Movements on provisions:
Clawback provision
£
At 1 December 2018
49,810
Additional provisions in the year
(37,392)
At 30 November 2019
12,418
7
Called up share capital
2019
2018
£
£
Issued and fully paid
19,998 A Ordinary shares of £1 each
19,998
19,998
19,998
19,998
8
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 senior statutory auditor was Philip Woodgate.
The auditor was Goodman Jones LLP.
CREATIVE BENEFIT WEALTH MANAGEMENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2019
- 7 -
9
Related party transactions
During the year, Creative Benefit Solutions Limited funded expenditure on behalf of Creative Benefit Wealth Management Limited totalling £1,829,100 (2018: £1,624,174) and repayments totalling £1,689,233 (2018: £1,870,295) were made. At the balance sheet date, the company owed £162,450 (2018: £22,583) to Creative Benefit Solutions Limited. Creative Benefit Solutions Limited is a related party by virtue of its shareholding in the company.
During the year, Creative Benefit Wealth Management Limited funded expenditure on behalf of Creative Auto-Enrolment Limited totalling £46,572 (2018: £19,461) and repayments totalling £218 (2018: £126,645) were made. At the balance sheet date, the company owed £4,095 (2018: £50,449) from Creative Auto-Enrolment Limited. Creative Auto-Enrolment Limited is a related party by virtue of common ownership of Creative Benefit Solutions Limited.
One of the
directors, D.W. Johnstone,
is
also
a
director of Chambers Townsend Consultancy Limited (CTC) and
a
shareholder of Chambers Townsend Holdings Limited, its parent company. During the year CTC invoiced Creative
Benefit Wealth Management Limited
£
43,666
(201
8
: £
143,744
); at the year end, the balance outstanding was £
720
(201
8
: £
19,796).
10
Control
The company is under the control of Creative Benefit Solutions Limited. There is no single, ultimate controlling party.