Registration number:
for the Year Ended
T L Dallas Group Limited
Contents
Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Consolidated Profit and Loss Account |
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Consolidated Balance Sheet |
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Balance Sheet |
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Consolidated Statement of Changes in Equity |
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Statement of Changes in Equity |
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Consolidated Statement of Cash Flows |
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Notes to the Financial Statements |
T L Dallas Group Limited
Strategic Report for the Year Ended 31 December 2021
The directors present their strategic report for the year ended 31 December 2021.
Principal activity
The company is a holding company and the principal activity of its subsidiary undertakings continues to be the broking of general insurance business in the United Kingdom.
Fair review of the business
The hard insurance market that was highlighted in last year’s report, continued into 2021 as expected. Our teams have continued to use their skills to place insurances despite the ongoing difficult market, and through increased premiums, a “bounce back” for many clients through 2021 and improved new business efforts we have achieved an increase in turnover of over 5% (approximately £500,000). We expect this “hard” market to continue well into 2022, although there are signs of a flattening of rate increases. This represents both an opportunity and a challenge to our business with more companies reviewing their insurances leading to more new business opportunities, although in many cases there are not a large level of alternative cover options available.
Consolidation in our sector continues apace and we continue to view this largely as an opportunity. Indeed, we have established two new majority owned subsidiaries, established by entrepreneurial insurance professionals who wish to “grow their own” businesses and not operate within a consolidator model. We continue to try to attract high quality individuals to join the business through 2022.
Despite these two new “start-up businesses” posting losses (as budgeted and expected) in Year 1, Group profit before tax has held up well showing a significant increase of some £89,000, or 10% from £924,000 to £1,013,000.
The Group Balance Sheet shown on page 8 of the Financial Statements shows continued strong reserves with net assets (excluding Minority Interests) increasing by over 10% from £7,043,000 to £7,811,000 with positive cash generation of over £500,000 also being seen during the year.
Principal risks and uncertainties
Distribution channels for insurance continue to change and we constantly monitor and adapt to ensure that the Group is able to retain a strong position in the industry – we still believe there is a place in our industry for personal & bespoke service for clients of all sizes.
As the country continues to recover from the pandemic, we have largely adopted a hybrid style of working from home and the offices, which seems to suit most staff, and is in fact expected by new recruits now. This does create challenges in terms of ensuring our culture continues to be embedded across our businesses, but we are making full use of video conferencing and bring teams together regularly. We are also investing in staff wellbeing and are aware of, and are addressing, the cost of living pressures that some of our colleagues may be feeling.
The hard market continues to provide uncertainty as noted above and we try to address this through staff training and continuing to maintain excellent and professional, working relationships with our insurer partners.
Approved and authorised by the
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T L Dallas Group Limited
Directors' Report for the Year Ended 31 December 2021
The directors present their report and the for the year ended 31 December 2021.
Director of the group
The directors who held office during the year were as follows:
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
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T L Dallas Group Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report 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:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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.
T L Dallas Group Limited
Independent Auditor's Report to the Members of T L Dallas Group Limited
Opinion
We have audited the financial statements of T L Dallas Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2021, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, 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 31 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's 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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
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:
T L Dallas Group Limited
Independent Auditor's Report to the Members of T L Dallas Group Limited
• |
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
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the parent company financial statements are not in agreement with the accounting records and returns; or |
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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 3], 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 is 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.
Auditor 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 an auditor’s report 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.
In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.
Following this assessment we considered the opportunities and incentives that may exist within the group for fraud and identified the greatest potential for fraud to be sales completeness and cut off.
We also obtained an understanding of the legal and regulatory frameworks that the group operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the group operates, to enable us to identify the key laws and regulations applicable to the group. 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 group, including FCA, Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.
T L Dallas Group Limited
Independent Auditor's Report to the Members of T L Dallas Group Limited
We then performed audit procedures after consideration of the above risks which included the following:
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reviewing insurance policies to determine income allocated in correct period; |
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reviewing post year end activity and external documentation to verify year end insurance debtors and creditors; |
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enquiring of management concerning actual and potential litigation and claims; |
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reviewing correspondence with HMRC and the group's legal advisors; |
• |
performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
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reading minutes of meetings of those charged with governance; and; |
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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. |
All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
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 auditor's report.
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 an auditor’s report 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.
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For and on behalf of
Statutory Auditors & Chartered Accountants
T L Dallas Group Limited
Consolidated Profit and Loss Account for the Year Ended 31 December 2021
Note |
2021 |
2020 |
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Turnover |
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Administrative expenses |
( |
( |
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Other operating income |
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Operating profit |
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Other interest receivable and similar income |
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Profit before tax |
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Taxation |
( |
( |
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Profit for the financial year |
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Profit/(loss) attributable to: |
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Owners of the company |
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Minority interests |
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T L Dallas Group Limited
(Registration number: 02434450)
Consolidated Balance Sheet as at 31 December 2021
Note |
2021 |
2020 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Other financial assets |
- |
- |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Capital redemption reserve |
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Profit and loss account |
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Equity attributable to owners of the company |
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Minority interests |
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Total equity |
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Approved and authorised by the
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T L Dallas Group Limited
(Registration number: 02434450)
Balance Sheet as at 31 December 2021
Note |
2021 |
2020 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Investments |
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Other financial assets |
- |
- |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current assets |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Capital redemption reserve |
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Profit and loss account |
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Total equity |
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Approved and authorised by the
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T L Dallas Group Limited
Consolidated Statement of Changes in Equity for the Year Ended 31 December 2021
Equity attributable to the parent company
Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
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At 1 January 2021 |
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Profit for the year |
- |
- |
- |
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Dividends |
- |
- |
- |
- |
- |
( |
( |
Acquisition of non-controlling interest, that does not result in a change of control |
- |
- |
- |
- |
- |
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At 31 December 2021 |
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Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
Non- controlling interests |
Total equity |
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At 1 January 2020 |
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|
( |
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Profit for the year |
- |
- |
- |
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|
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Dividends |
- |
- |
- |
( |
( |
- |
( |
At 31 December 2020 |
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T L Dallas Group Limited
Statement of Changes in Equity for the Year Ended 31 December 2021
Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 January 2021 |
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Profit for the year |
- |
- |
- |
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At 31 December 2021 |
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Share capital |
Share premium |
Capital redemption reserve |
Profit and loss account |
Total |
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At 1 January 2020 |
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Profit for the year |
- |
- |
- |
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Dividends |
- |
- |
- |
( |
( |
At 31 December 2020 |
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T L Dallas Group Limited
Consolidated Statement of Cash Flows for the Year Ended 31 December 2021
Note |
2021 |
2020 |
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Cash flows from operating activities |
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Profit for the year |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Finance income |
( |
( |
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Corporation tax expense |
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Working capital adjustments |
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(Increase)/decrease in trade debtors |
( |
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Decrease in trade creditors |
( |
( |
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Cash generated from operations |
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Corporation taxes paid |
( |
( |
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Net cash flow from operating activities |
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Cash flows from investing activities |
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Interest received |
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Acquisition of intangible assets |
( |
( |
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Acquisitions of tangible assets |
( |
( |
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Net cash flows from investing activities |
( |
( |
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Cash flows from financing activities |
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Proceeds from issue of ordinary shares, net of issue costs |
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- |
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Dividends paid |
( |
( |
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Net cash flows from financing activities |
( |
( |
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Net increase in cash and cash equivalents |
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Cash and cash equivalents at 1 January |
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Cash and cash equivalents at 31 December |
19,986,951 |
19,439,591 |
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were 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.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The group's presentation currency is the pound sterling.
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2021.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
No profit and loss account is presented for the company as permitted by section 408 of the Companies Act 2006. Its profit for the financial year was £529,223 (2020 - £546,355).
Key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature and estimation means that actual outcomes could differ from those estimates. The following judgements (apart from these involving estimates) had the most significant effect on amounts recognised in the financial statements.
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The net carrying amount is £1,537,558 (2020 -£1,637,744).
Impairment of debtors
The group makes an estimate of the recoverable value of trade and other debtors. When assessing the impairment of trade and other debtors, management considers factors which include the current credit rating of the debtor, the ageing profile of debtors and historical experience. The net carrying amount is £3,196,481 (2020 -£3,022,141).
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Revenue recognition
Turnover represents: commissions and fees, which are taken to revenue in full at the later of the binding contract date and the renewal or commencement date of the policy; risk management fees, which are taken to revenue as they are invoiced; management charges from group companies, which are taken to revenue as they are invoiced; and certain other fees and commissions which are recognised on receipt. The group recognises profit deals received from insurers on a cash receipts basis.
Government grants
Grants are measured at the fair value of the asset received or receivable.
Grants relating to revenue shall be recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.
A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.
Grants relating to assets shall be recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred it shall be recognised as deferred income and not deducted from the carrying amount of the asset.
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold buildings |
2% straight line basis |
Office equipment |
33.33% straight line basis |
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Intangible assets
Separately acquired trademarks and licences are shown at historical cost.
Trademarks, licences (including software) and customer-related intangible assets acquired in a business combination are recognised at fair value at the acquisition date.
Trademarks, licences and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.
Other intangible assets relate to client lists, initially recognised as assets at cost and subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill on consolidation |
5% - 33% straight line basis |
Software |
33.33% straight line basis |
Other intangible assets |
5% - 33% straight line basis |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Provisions for liabilities
Provisions are recognised when the group has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Financial assets
Basic financial assets, including trade and other receivables, are initially recognised at transaction price, 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 for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss and any subsequent reversal is recognised in profit or loss.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
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 receipts discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Revenue |
The analysis of the group's revenue for the year from continuing operations is as follows:
2021 |
2020 |
|
Rendering of services |
|
|
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Operating profit |
Arrived at after charging/(crediting)
2021 |
2020 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Loss on disposal of property, plant and equipment |
- |
|
Government grants |
During the year the company has received grant income of £2,500 in respect of the Apprenticeship Scheme.
The amount of grants recognised in the financial statements was £11,236 (2020 - £
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2021 |
2020 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2021 |
2020 |
|
Administration and support |
|
122 |
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Directors' remuneration |
The directors' remuneration for the year was as follows:
2021 |
2020 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
601,093 |
535,983 |
During the year the number of directors who were receiving benefits was as follows:
2021 |
2020 |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
2021 |
2020 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Auditors' remuneration |
2021 |
2020 |
|
Audit of these financial statements |
3,850 |
3,000 |
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Taxation |
Tax charged/(credited) in the income statement
2021 |
2020 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
- |
246,476 |
208,344 |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
( |
Arising from changes in tax rates and laws |
( |
- |
Total deferred taxation |
( |
( |
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2020 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2021 |
2020 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax credit relating to changes in tax rates or laws |
( |
- |
Deferred tax credit from unrecognised temporary difference from a prior period |
- |
( |
Tax (decrease)/increase from other short-term timing differences |
( |
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
2021 |
Asset |
Accelerated capital allowances |
|
Other timing differences |
|
|
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
2020 |
Asset |
Accelerated capital allowances |
( |
Other timing differences |
|
|
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £
Company
Deferred tax assets and liabilities
2021 |
Asset |
Accelerated capital allowances |
|
2020 |
Asset |
Accelerated capital allowances |
|
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Intangible assets |
Group
Goodwill on consolidation |
Software |
Other intangible assets |
Total |
|
Cost or valuation |
||||
At 1 January 2021 |
|
|
|
|
Additions acquired separately |
- |
|
|
|
At 31 December 2021 |
|
|
|
|
Amortisation |
||||
At 1 January 2021 |
|
|
|
|
Amortisation charge |
|
|
|
|
At 31 December 2021 |
|
|
|
|
Carrying amount |
||||
At 31 December 2021 |
|
|
|
|
At 31 December 2020 |
|
|
|
|
Company
Other intangible assets |
Total |
|
Cost or valuation |
||
At 1 January 2021 |
|
|
At 31 December 2021 |
|
|
Amortisation |
||
At 1 January 2021 |
|
|
Amortisation charge |
|
|
At 31 December 2021 |
|
|
Carrying amount |
||
At 31 December 2021 |
|
|
At 31 December 2020 |
|
|
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Tangible fixed assets |
Group
Freehold land and buildings |
Office equipment |
Total |
|
Cost or valuation |
|||
At 1 January 2021 |
|
|
|
Additions |
- |
|
|
At 31 December 2021 |
|
|
|
Depreciation |
|||
At 1 January 2021 |
|
|
|
Charge for the year |
|
|
|
At 31 December 2021 |
|
|
|
Carrying amount |
|||
At 31 December 2021 |
|
|
|
At 31 December 2020 |
|
|
|
Company
Land and buildings |
Office equipment |
Total |
|
Cost or valuation |
|||
At 1 January 2021 |
|
|
|
At 31 December 2021 |
|
|
|
Depreciation |
|||
At 1 January 2021 |
|
|
|
Charge for the year |
|
- |
|
At 31 December 2021 |
|
|
|
Carrying amount |
|||
At 31 December 2021 |
|
- |
|
At 31 December 2020 |
|
- |
|
Group and company
Included within the net book value of freehold land and buildings above is £864,700 (2020 - £864,700) in respect of non-depreciable land.
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Investments |
Company
2021 |
2020 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 January 2021 |
|
Additions |
|
At 31 December 2021 |
|
Carrying amount |
|
At 31 December 2021 |
|
At 31 December 2020 |
|
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Holding |
Proportion of voting rights and shares held |
||
2021 |
2020 |
Subsidiary undertakings |
||||
|
Ordinary |
|
|
|
|
Ordinary |
|
|
|
|
Ordinary |
|
|
|
|
Ordinary |
|
|
|
|
Ordinary |
|
|
|
|
Ordinary |
|
|
|
|
Ordinary |
|
|
The registered address of all of the above subsidiaries is Dallas House, Low Moor, Bradford, West Yorkshire, BD12 0HF.
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Other financial assets |
Group
Financial assets at fair value through profit and loss |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 January 2021 |
41,562 |
41,562 |
At 31 December 2021 |
41,562 |
41,562 |
Impairment |
||
At 1 January 2021 |
41,562 |
41,562 |
At 31 December 2021 |
41,562 |
41,562 |
Carrying amount |
||
At 31 December 2021 |
- |
- |
At 31 December 2020 |
- |
- |
Company
Financial assets at fair value through profit and loss |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 January 2021 |
40,562 |
40,562 |
At 31 December 2021 |
40,562 |
40,562 |
Impairment |
||
At 1 January 2021 |
40,562 |
40,562 |
At 31 December 2021 |
40,562 |
40,562 |
Carrying amount |
||
At 31 December 2021 |
- |
- |
At 31 December 2020 |
- |
- |
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Debtors |
Group |
Company |
|||
2021 |
2020 |
2021 |
2020 |
|
Trade debtors |
|
|
|
|
Amounts owed by related parties |
- |
- |
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
- |
- |
Insurer client debtors |
|
|
- |
- |
Deferred tax assets |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2021 |
2020 |
2021 |
2020 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
|
|
Client accounts |
|
|
- |
- |
|
|
|
|
Creditors |
Group |
Company |
|||
2021 |
2020 |
2021 |
2020 |
|
Due within one year |
||||
Trade creditors |
|
|
- |
- |
Amounts due to related parties |
- |
- |
|
- |
Social security and other taxes |
|
|
|
- |
Other creditors |
|
|
|
- |
Accrued expenses |
|
|
- |
- |
Corporation tax liability |
267,100 |
228,968 |
14,600 |
14,478 |
Insurer creditors |
|
|
- |
- |
|
|
|
|
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Deferred tax and other provisions |
Group
Deferred tax |
Total |
|
At 1 January 2021 |
( |
( |
Increase (decrease) in existing provisions |
( |
( |
At 31 December 2021 |
( |
( |
|
Company
Deferred tax |
Total |
|
At 1 January 2021 |
( |
( |
Increase (decrease) in existing provisions |
( |
( |
At 31 December 2021 |
( |
( |
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Share capital |
Allotted, called up and fully paid shares
2021 |
2020 |
|||
No. |
£ |
No. |
£ |
|
|
|
41,856 |
|
41,856 |
|
|
26,662 |
|
26,662 |
|
|
|
|
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Redeemable shares have the following rights, preferences and restrictions: |
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Share-based payments |
Share incentive plan
The company operates a share incentive plan for all employees with qualifying service.
During the year 4,416 shares were awarded within the scheme with a value of £11.86.
The equity instruments awarded were measured with reference to turnover, which the directors believe is an accurate reflection of fair value.
The total expense recognised in the profit for the year is £31,840.
Reserves |
Group and company
Share capital
Represents the nominal value of issues shares.
Share premium reserve
Represents the amount paid for issued ordinary shares in excess of their par value.
Capital redemption reserve
A statutory, non-distributable reserve into which amounts are transferred following the redemption or purchase of the company's own shares.
Profit and loss account
Includes all current and prior periods distributable profits and losses.
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2021 |
2020 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Related party transactions |
Group
Summary of transactions with other related parties
Expenditure with and payables to related parties
2021 |
Other related parties |
Receipt of services |
|
|
2020 |
Other related parties |
Receipt of services |
|
Dividends paid |
|
|
|
|
Company
Income and receivables from related parties
2021 |
Subsidiary |
Dividends received |
|
Amounts receivable from related party |
|
|
2020 |
Subsidiary |
Amounts receivable from related party |
|
|
T L Dallas Group Limited
Notes to the Financial Statements for the Year Ended 31 December 2021
Non adjusting events after the financial period |
|