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REGISTERED NUMBER: 07279489 (England and Wales)















CANDID INSURANCE SERVICES LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2021






CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021










Page

Company Information 1

Strategic Report 2 to 3

Report of the Directors 4 to 5

Report of the Independent Auditors 6 to 8

Statement of Income and Retained Earnings 9

Statement of Financial Position 10

Notes to the Financial Statements 11 to 18


CANDID INSURANCE SERVICES LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2021







DIRECTORS: Mr M D E Edwards
Dr M Toetzke
Mr J G Sargent



SECRETARY: Mr M D E Edwards



REGISTERED OFFICE: 920 Hempton Court
Aztec West
BRISTOL
BS32 4SR



REGISTERED NUMBER: 07279489 (England and Wales)



AUDITORS: Morris Owen
Statutory Auditors
43-45 Devizes Road
SWINDON
Wiltshire
SN1 4BG



BANKERS: Lloyds Bank Plc
58 Queens Road
Clifton
Bristol
BS8 1RQ

CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2021


The directors present their strategic report for the year ended 31st December 2021.

Candid Insurance Services Ltd (Candid) is a specialist insurance company focused on bringing about insurance and protection policies for UK families. Candid's principal activities are the distribution of regulated life and protection products via an advised telephone based service and regulated lead generation to the financial services industry.

REVIEW OF BUSINESS
Candid reported strong results for the financial year ended 31st December 2021. Revenue grew by 30% from £11.6m to £15m and gross profit from £4.7m to £6.5m, a 38% increase.

During the financial year of 2021, Candid began a realignment of the business, moving away from solely financial lead generation, to a hybrid model of lead generation and life insurance and protection distribution. The business now offers a fully advised, telephone based broker service beside the already existing lead generation business.

Staff numbers grew during 2021 from 16 in December 2020 to 60 in December 2021. This staff growth was broadly for the development and support of the new life and protection distribution side of the business. Several mid-level managers were brought into the business to strengthen the overall management team and a number of life and protection advisors were hired.

Staff retention remained high across the year. Candid maintains a fun, progressive environment with plenty of opportunity for growth and career advancement. Staff turnover remained at 5% during 2021 indicating a happy and productive workforce.

A new director, Joshua Sargent was appointed in January 2021. Joshua Sargent was already a full time employee of the business, having worked for Candid for the previous 5 years, focussing on commercial development and general management. Joshua was elevated to director to strengthen and diversify the board and to recognise his growing seniority and responsibility within the business.

Candid continued to invest in its core web assets, Polly.co.uk, Tom.co.uk and Winston.co.uk. Polly, Tom, and Winston are growing insurance brands in the UK market and responsible for driving new business. Customer enquiries grew strongly over the course of 2021, with year on year growth in enquiries of 7.5%.

Investments were made in IT and technology over the course of the year. Candid invested heavily in tools to assist with providing accurate and consistent advice to customers. These continuing investments in technology will ensure customer needs and requirements are accurately and consistently met while helping to ensure a robust monitoring and business quality environment.

Candid increased compliance support from a third party compliance consultant, Help You Comply, during the year. This support relates mainly to compliance with Financial Conduct Authority governed UK regulation. Our compliance consultant is satisfied that compliance with the regulatory framework in the UK is satisfactory and the correct levels of monitoring are in place for the nature of the business.

A new lease was taken on 5500sq ft of office space in Aztec West Business Park Bristol. All current staff were moved from our Whiteladies Road premises to the new space. This space was taken with an eye to growth and expansion in subsequent years.

PRINCIPAL RISKS AND UNCERTAINTIES
Change in the online marketing landscape is rapid and continuous. Online privacy and data concerns are becoming bigger issues and during 2021 we saw Apple Inc role out major changes to the way they treat third party tracking cookies. This has had a negative impact on the efficiency of marketing optimisation algorithms on platforms like Facebook.

These changes have had an impact on the performance and margins of online marketing campaigns being undertaken by Candid. Candid has taken steps and continues to take steps to mitigate these challenges through the diversification of marketing strategies.

The current employment landscape is challenging, finding and hiring quality staff remains a challenge. Candid has hired a full time recruiter to help combat this.


CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2021

SECTION 172(1) STATEMENT
As Directors we are required under section 172 to take into consideration the interest of stakeholders in our decision making. The Board of Candid Insurance Services continue to have regard to the interests of the company's employees and other stakeholders. This includes the impact of its activities on the community, the environment and the company reputation when making decisions.

Our employees are our most valuable asset. We strive to offer attractive terms and benefits, and continue to work on the employees' development. We also strive to maintain good relationships with our suppliers and associates which is reflected in our excellent credit rating.

To ensure this continues, we regularly review our stakeholders and how we communicate and engage with them; either by information provided by management or by having direct communication with.

CUSTOMERS AND SUPPLIERS
Candid continues to hold a position of best in market for protection leads. The demand for life insurance leads continues to outstrip supply.

Candid has also developed strong relationship with insurance carriers and enjoys a strong working relationship with a whole of market protection panel and excellent rates of commissions on sales.

FUTURE DEVELOPMENTS
The company will continue to invest in both technology and human resource to ensure that business quality and customer service levels are kept at the highest level possible. The company will also continue to strengthen the middle management layer, creating a more robust management team and environment.

We also expect the change in shareholding to have only positive impact on the business and we look forward to the collaboration, please see note 19 in the accounts for further details.

KPI INDICATORS
Candid monitors and benchmarks performance against the following KPIs:

- Leads generated
- Cost of leads generated
- Revenue generated per lead
- Conversion rates of leads into protection policies
- Value of protection policies written
- Customer retention rates

ON BEHALF OF THE BOARD:





Mr M D E Edwards - Director


31st March 2022

CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2021


The directors present their report with the financial statements of the company for the year ended 31st December 2021.

DIVIDENDS
No dividends will be distributed for the year ended 31st December 2021.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2021 to the date of this report.

Mr M D E Edwards
Dr M Toetzke

Other changes in directors holding office are as follows:

Mr J G Sargent - appointed 5th January 2021

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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;
-state whether applicable accounting standards have been followed, subject to any material departures
disclosed and explained in the financial statements;
-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.

CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2021


AUDITORS
The auditors, Morris Owen, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr M D E Edwards - Director


31st March 2022

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CANDID INSURANCE SERVICES LTD


Opinion
We have audited the financial statements of Candid Insurance Services Ltd (the 'company') for the year ended 31st December 2021 which comprise the Statement of Income and Retained Earnings, Statement of Financial Position 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 31st December 2021 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 Strategic Report and 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CANDID 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 Strategic Report or 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 four, 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.

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate
competence, capabilities and skills to identify or recognise non-compliance with applicable laws
and regulations through the audit planning process;

-
we identified the laws and regulations applicable to the company through discussions with
directors and other management, and from our commercial knowledge and experience of the
company's industry;
- we focused on specific laws and regulations which we considered may have a direct material effect
on the financial statements or the operations of the company, including the Financial Conduct
Authority (FCA), the Companies Act, taxation legislation, general data protection regulations
(GDPR), employment, and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through
making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team
remained alert to instances of non-compliance throughout the audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CANDID INSURANCE SERVICES LTD

We assessed this susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:

- making enquiries of management as to where they considered there was susceptibility to fraud,
their knowledge of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws
and regulations.

As a result of a small management and finance team we identified a risk of fraud through management bias and ability to override of controls, including lack of segregation of duties, which could lead to a misappropriation of cash and other assets. To address this we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set
out in note two were indicative of potential bias;
- investigated the rationale behind significant or unusual transaction including any customer
cancelled sales entries; and
- reviewed the internal group monthly reporting processes on this company.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HM Revenue & Customs (HMRC) and any legal correspondence.

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.




Alan John Barlow (Senior Statutory Auditor)
for and on behalf of Morris Owen
Statutory Auditors
43-45 Devizes Road
SWINDON
Wiltshire
SN1 4BG

11th April 2022

CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 31ST DECEMBER 2021

2021 2020
Notes £    £   

REVENUE 3 14,994,936 11,648,643

Cost of sales 8,459,206 6,911,277
GROSS PROFIT 6,535,730 4,737,366

Administrative expenses 4,427,076 2,714,124
OPERATING PROFIT 5 2,108,654 2,023,242

Interest receivable and similar income 271 420
2,108,925 2,023,662

Interest payable and similar expenses 7 902 211
PROFIT BEFORE TAXATION 2,108,023 2,023,451

Tax on profit 8 523,408 463,996
PROFIT FOR THE FINANCIAL YEAR 1,584,615 1,559,455

Retained earnings at beginning of year 4,251,409 2,691,954

RETAINED EARNINGS AT END OF
YEAR

5,836,024

4,251,409

CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

STATEMENT OF FINANCIAL POSITION
31ST DECEMBER 2021

2021 2020
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 3,578,774 3,212,088
Property, plant and equipment 10 276,349 88,543
3,855,123 3,300,631

CURRENT ASSETS
Debtors 11 889,252 393,963
Cash at bank and in hand 2,568,441 1,597,225
3,457,693 1,991,188
CREDITORS
Amounts falling due within one year 12 1,134,657 794,189
NET CURRENT ASSETS 2,323,036 1,196,999
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,178,159

4,497,630

CREDITORS
Amounts falling due after more than
one year

13

-

(235,031

)

PROVISIONS FOR LIABILITIES 15 (330,945 ) -
NET ASSETS 5,847,214 4,262,599

CAPITAL AND RESERVES
Called up share capital 16 11,152 11,152
Capital redemption reserve 17 38 38
Retained earnings 17 5,836,024 4,251,409
SHAREHOLDERS' FUNDS 5,847,214 4,262,599

The financial statements were approved by the Board of Directors and authorised for issue on 31st March 2022 and were signed on its behalf by:




Mr M D E Edwards - Director



Mr J G Sargent - Director


CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2021


1. STATUTORY INFORMATION

The company is a private company limited by shares. registered in England and Wales. The company's registered number is 07279489. The registered office address is 920 Hempton Court, Aztec West, Bristol, BS32 4SR.

The presentation currency of the financial statements is the Pound Sterling (£).

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 requirement of paragraph 33.7.

This information is included in the parent's accounts and address details can be found in note 20.

Related party exemption
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 as stated in Section 33
Related Party Disclosure paragraph 33.7.

CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


2. ACCOUNTING POLICIES - continued

Significant judgements, assumptions and estimates
In preparing these financial statements, the directors have made the following judgements:

- Determine whether leases entered into by the company as a lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

- Determine the period of useful economic life and any residual value of all tangible fixed assets in order to write off the value of each asset over that period.

- Determine an appropriate provision for bad and doubtful debts by assessing the recoverability of all balances on a balance by balance basis.

- Determine the period of useful economic life on all intangible assets in order to write off the value of each asset over that period.

In preparing these financial statements, the director have also made some assumptions and estimates in respect of a clawback provision.

Provision is made for potential clawback of commission paid to the company by life insurance companies under indemnity terms. These clawbacks can take place within the first 48 months, in most cases, of a policy if the policy lapses. The provision is based on the historical analysis of clawbacks and the company's own internal arrangement to minimise clawback situations.

Whilst making the estimate of the clawback provision, the company recognises a debtor in relation to the elements of the clawback that would be recoverable from the third parties for commissions paid to them in relation the transaction.

Revenue
Revenue represents net invoiced sale of services, excluding value added tax. Revenue in respect of lead generation is recognised on all validated leads at the date the lead is generated. Revenue in respect of commission is recognised net of commission clawback when a policy goes on risk.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2018, is being amortised evenly over its estimated useful life of ten years.

Please refer to note 8 for details of the goodwill acquired during the year.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Improvements to leasehold property - over term of the 10 lease
Computer equipment - 33% on cost
Office equipment - over 15 years
Plant and machinery - 33% on cost

Financial instruments
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Short term trade creditors are measured at the transaction price. Other financial liabilities, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.


CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


2. ACCOUNTING POLICIES - continued
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 statement of financial position date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

3. REVENUE

The revenue and profit before taxation are attributable to the principal activities of the company.

An analysis of revenue by class of business is given below:

2021 2020
£    £   
Lead generation 11,239,766 11,631,375
Commission 3,755,170 17,268
14,994,936 11,648,643

All revenue is generated in the United Kingdom.

CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


4. EMPLOYEES AND DIRECTORS
2021 2020
£    £   
Wages and salaries 1,945,312 991,101
Social security costs 255,692 92,518
Other pension costs 33,402 9,886
2,234,406 1,093,505

The average number of employees during the year was as follows:
2021 2020

Staff 40 11
Directors 2 1
42 12

Included within wages and salaries there is an amount of £7,500 (2020: £23,772) in respect of termination payments

2021 2020
£    £   
Directors' remuneration 555,046 272,802
Directors' pension contributions to money purchase schemes 2,636 675

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 1

Information regarding the highest paid director is as follows:
2021 2020
£    £   
Emoluments etc 380,058 272,802
Pension contributions to money purchase schemes 1,318 675

5. OPERATING PROFIT

The operating profit is stated after charging:

2021 2020
£    £   
Hire of plant and machinery 4,276 1,761
Depreciation - owned assets 64,739 40,180
Goodwill amortisation 533,314 416,558
Operating leases 106,304 26,184

6. AUDITORS' REMUNERATION
2021 2020
£    £   
Fees payable to the company's auditors and their associates for
the audit of the company's financial statements

14,025

10,260
Auditors' remuneration for non audit work 1,485 -

CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


7. INTEREST PAYABLE AND SIMILAR EXPENSES
2021 2020
£    £   
Corporation tax interest payable 902 211

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2021 2020
£    £   
Current tax:
UK corporation tax 431,981 490,000
Under/over provision 9,188 10,778
Total current tax 441,169 500,778

Deferred tax 82,239 (36,782 )
Tax on profit 523,408 463,996

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2021 2020
£    £   
Profit before tax 2,108,023 2,023,451
Profit multiplied by the standard rate of corporation tax in the UK
of 19% (2020 - 19%)

400,524

384,456

Effects of:
Expenses not deductible for tax purposes 113,696 109,848
Adjustments to tax charge in respect of previous periods 9,188 10,778
Deferred tax - other timing differences - (41,086 )
Total tax charge 523,408 463,996

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1st January 2021 4,032,494
Additions 900,000
At 31st December 2021 4,932,494
AMORTISATION
At 1st January 2021 820,406
Amortisation for year 533,314
At 31st December 2021 1,353,720
NET BOOK VALUE
At 31st December 2021 3,578,774
At 31st December 2020 3,212,088

CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


9. INTANGIBLE FIXED ASSETS - continued

During the year additional consideration was paid in respect of the purchase of AGT Media Ltd and has been accounted for in accordance with FRS 102. The consideration represents contingent consideration as defined in the share purchase agreement.

10. PROPERTY, PLANT AND EQUIPMENT
Improvements
to Office &
leasehold Plant and computer
property machinery equipment Totals
£    £    £    £   
COST
At 1st January 2021 - 88,288 74,456 162,744
Additions 100,938 1,400 150,207 252,545
At 31st December 2021 100,938 89,688 224,663 415,289
DEPRECIATION
At 1st January 2021 - 59,820 14,381 74,201
Charge for year 3,927 23,887 36,925 64,739
At 31st December 2021 3,927 83,707 51,306 138,940
NET BOOK VALUE
At 31st December 2021 97,011 5,981 173,357 276,349
At 31st December 2020 - 28,468 60,075 88,543

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Trade debtors 79,621 51,303
Corporation tax recoverable 222,019 -
Deferred tax asset - 28,063
Prepayments 230,370 314,107
Accrued income 357,242 490
889,252 393,963

Deferred tax asset
2020
£   
Other timing differences 28,063

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2021 2020
£    £   
Trade creditors 306,828 106,965
Corporation tax - 66,000
Social security and other taxes 311,657 23,595
VAT 211,964 273,042
Other creditors 3,154 4,099
Accruals 301,054 320,488
1,134,657 794,189

CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2021 2020
£    £   
Accruals and deferred income - 235,031

The above relates to long term employee bonuses which have been fully settled during the year.

14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2021 2020
£    £   
Within one year 100,463 26,149
Between one and five years 675,026 26,149
In more than five years 743,148 -
1,518,637 52,298

15. PROVISIONS FOR LIABILITIES
2021
£   
Deferred tax
Accelerated capital allowances 54,176

Other provisions 276,769 -

Aggregate amounts 330,945 -

Deferred Other
tax provisions
£    £   
Balance at 1st January 2021 (28,063 ) -
Provided during year 82,239 276,769
Balance at 31st December 2021 54,176 276,769

Other provisions relates to to the company's clawback provision. Provision is made for potential clawback of commissions paid to the company by life insurance companies under indemnity terms. These clawbacks can take place, in most cases, in the first 48 months of a policy if the policy lapses. The provision is based on historical analysis of clawbacks but also taking into account the company's own internal arrangements to minimise clawback situations.

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2021 2020
value: £    £   
11,152 Ordinary A £1 11,152 11,152

The ordinary shares have full voting rights.

CANDID INSURANCE SERVICES LTD (REGISTERED NUMBER: 07279489)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2021


17. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1st January 2021 4,251,409 38 4,251,447
Profit for the year 1,584,615 1,584,615
At 31st December 2021 5,836,024 38 5,836,062

18. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions paid by the company to the fund.

As at 31 December 2021 there were no outstanding commitments payable (2020: £2,826).

19. POST BALANCE SHEET EVENTS

On 24 March 2022 the Ultimate Parent company, Allianz SE, sold the entire capital of the Finanzen.de Group, of which Candid Insurance Services Limited is a member, to Clark Holding SE.

20. ULTIMATE CONTROLLING PARTY

Prior to 24 March 2022 the ultimate parent company was Allianz SE incorporated in Germany and as at the balance sheet date, is Clark Holding SE, please see note 19 for more information.

The immediate parent company remains to be Finanzen.de Vermittlungsgesellschaft für Verbraucherverträge GmbH.

The address from where financial statements for the company can be obtained is;

Schlesische Strasse 29-30
10997 Berlin
Germany