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Shepherd Global Limited
























Annual report and financial statements



For the year ended 31 December 2022



Registered number: 08601855

 
Shepherd Global Limited


Company Information


Directors
H  T Shepherd 
J Shepherd 




Registered number
08601855



Registered office
88 Leadenhall Street

London

EC3A 3BP




Independent auditor
Buzzacott LLP

130 Wood Street

London

EC2V 6DL





 
Shepherd Global Limited


Contents



Page
Directors' report
 
1 - 2
Group strategic report
 
3 - 4
Independent auditor's report
 
5 - 8
Consolidated statement of comprehensive income
 
9
Consolidated statement of financial position
 
10 - 11
Company statement of financial position
 
12
Consolidated statement of changes in equity
 
13
Company statement of changes in equity
 
14
Consolidated Statement of cash flows
 
15 - 16
Notes to the financial statements
 
17 - 38


 
Shepherd Global Limited

 
Directors' report
For the year ended 31 December 2022

The directors present their report together with the Group strategic report and the consolidated financial statements of Shepherd Compello Limited ('the company') and its subsidiaries (together 'the group') for the year ended 31 December 2022.

Principal activity

The principal activity of the company was that of a holding company. The principal activity of the subsidiary companies was that of insurance brokerage, mediation and administration.

Results and dividends

The profit for the year, after taxation and minority interests, amounted to £387,832 (2021 - loss £614,730).

The results for the period are set out on page 9.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who served during the year and up to the date of signature of the financial statements were as follows:

H  T Shepherd 
J Shepherd 

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 the group and of the profit or loss of the group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK 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 group 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 the group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 1

 
Shepherd Global Limited
 
Directors' report (continued)
For the year ended 31 December 2022

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the group's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the group's auditor is aware of that information.

Auditor

The auditor, Buzzacott LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





J Shepherd
Director

Date: 29 September 2023

Page 2

 
Shepherd Global Limited


Group strategic report
For the year ended 31 December 2022

Introduction
 
The directors present the Group strategic report for Shepherd Global Limited ('the company') and its subsidiaries (together 'the group') for the year ended 31 December 2022.

Business review
 
Turnover for the year was £9.5m. There was a profit before tax of £683k.
Against this backdrop, the key financial performance indicators for the group are as follows:

ole69d6.png
The directors consider this result was pleasing given the competitive landscape in which it operates.

Principal risks and uncertainties
 
The directors consider the principal risks and uncertainties facing the business to be as follows:

Business and regulatory risk
 
The group operates in a highly regulated and diverse business environment. The directors and management of the company therefore regularly review the business and regulatory risks to ensure these are mitigated as far as possible.

Exchange rate risk
 
The group is exposed to currency risk given a substantial portion of the group's operations are in currencies other than Sterling. The US dollar and Euro are the most significant currencies to which the group is exposed. The directors manage this risk and look to mitigate the effect of exchange rate fluctuations through the use of hedging and foreign exchange forward contracts as deemed appropriate at the time of trade.

Credit risk
 
Credit risk is the risk that a counterparty will be unable to pay amounts in full when they fall due. The group monitors its debtor balances on an ongoing basis and provision is made for doubtful debts as necessary.
Investments of cash surpluses are only made through banks and companies which have sufficient credit ratings.

Liquidity risk

Liquidity risk is the risk that cash may not be available to pay obligations when they fall due. The group has appropriate cash flow management structures in place in order to anticipate demand for cash and meet obligations as they are due. In addition, controls are in place over client money to ensure that the company has appropriate cash resource to meet its obligations as they fall due.

Page 3

 
Shepherd Global Limited


Group strategic report (continued)
For the year ended 31 December 2022

Operating risk

The directors and management of the group meet regularly to review the operation of the business and to review the adequacy of operating systems and internal controls. When a risk is identified, it is assessed and the necessary remedial action is decided and agreed upon by the directors and management team. The group maintains errors and omissions insurance.

Future plans

The group continues to invest in IT platforms in order to drive forward an improved service for our clients and reporting for our stakeholders, whilst improving internal efficiencies.
The directors have undertaken a strategic review of the business priorities through to 2024 and have mapped out how to grow turnover and profitability through investment in people and diversification of our current offering. This began in earnest during previous periods and will continue moving forward.
The group also continues to focus on the team and developing talent from within where there is opportunity to do so.


This report was approved by the board and signed on its behalf.



J Shepherd
Director

Date: 29 September 2023

Page 4

 
 
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Independent auditor's report to the members of Shepherd Global Limited
For the year ended 31 December 2022

Opinion


We have audited the financial statements of Shepherd Global Limited (the 'parent company') and its subsidiaries (together, the 'group') for the year ended 31 December 2022, which comprise the Consolidated statement of comprehensive income, the Consolidated and Company statements of financial position, the Consolidated and Company statements of changes in equity, the Consolidated statement of cash flows, and the related notes, including a summary of significant accounting policiesThe 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 group's and of the parent company's affairs as at 31 December 2022 and of the group's 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's 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 United Kingdom, including the Financial Reporting Council'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 group's or the parent 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 other information comprises the information included in the Annual report other than the financial statements and  our Auditor's report thereon.  The directors are responsible for the other information contained within the Annual report.  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. 
 
Page 5

 
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Independent auditor's report to the members of Shepherd Global Limited (continued)
For the year ended 31 December 2022

Other information (continued)
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 course of 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.
 
Opinion 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 Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the 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 the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


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
the parent company 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 Directors' responsibilities statement, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
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Independent auditor's report to the members of Shepherd Global Limited (continued)
For the year ended 31 December 2022

Auditor's 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

How the audit was considered capable of detecting irregularities including fraud
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 Senior Statutory Auditor ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
we made enquiries of management as to where they considered there was susceptibility to fraud, and their
knowledge of actual, suspected and alleged fraud;
we identified the laws and regulations that could reasonably be expected to have a material effect on the financial
statements of the company through discussions with directors and other management at the planning stage;
the audit team held a discussion to identify any particular areas that were considered to be susceptible to
misstatement, including with respect to fraud and non-compliance with laws and regulations; and
we focused our planned audit work 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 Companies Act 2006 and taxation legislation.

We assessed the extent of compliance with the laws and regulations identified above through:
 
making enquiries of management;
inspecting legal correspondence throughout the year for any potential litigation or claims; and
considering the internal controls in place that are designed to mitigate risks of fraud and non-compliance with laws
and regulations.
 
To address the risk of fraud through management bias and override of controls, we:
 
identified and assessed the design effectiveness of controls management has in place to prevent and detect fraud;
determined the susceptibility of the company to management override of controls by checking the implementation
of controls and enquiring of individuals involved in the financial reporting process;
reviewed journal entries to identify unusual transactions;
performed analytical procedures to identify any large, unusual or unexpected transactions and investigated and large variances from the prior year;
reviewed accounting estimates, in particular regarding the valuation of investments in associate and deferred income, and evaluated where judgements or decisions made by management indicated bias (see note 3);
tested the existence of revenue by obtaining an understanding of the clients' systems, including when insurance debtors, insurance creditors, and commissions are recorded, and when a bordereau is issued, as well as tracing a sample of nominal ledger transactions to their respective bank receipts and bordereaux;

Page 7

 
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Independent auditor's report to the members of Shepherd Global Limited (continued)
For the year ended 31 December 2022

Auditor's responsibilities for the audit of the financial statements (continued)

tested the completeness of revenue by tracing bank receipts through to their bordereau and the accounting records; and
carried out substantive testing to check the occurrence and cut-off of expenditure.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which
included:
 
agreeing financial statement disclosures to underlying supporting documentation;
enquiring of management as to actual and potential litigation and claims; and
reviewing correspondence with the Financial Conduct Authority.
 
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those
leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the
more that compliance with a law or regulation is removed from the events and transactions reflected in the financial
statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding
irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion,
omission or misrepresentation.


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 2006Our 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.





Jonathan West (Senior Statutory Auditor)
for and on behalf of
Buzzacott LLP
Statutory Auditor
130 Wood Street
London
EC2V 6DL

30 September 2023
Page 8

 
Shepherd Global Limited


Consolidated statement of comprehensive income
For the year ended 31 December 2022

Year ended 31 December 2022
Year ended
31 December 2021
Note
£
£

  

Turnover
 4 
9,470,330
8,488,318

Administrative expenses
  
(9,915,481)
(10,511,943)

Other operating income
 5 
1,394,235
1,187,674

Operating profit/(loss)
  
949,084
(835,951)

Income/(expenses) from participating interests
  
(296,590)
44,825

Interest receivable and similar income
 10 
79,987
164,050

Interest payable and similar expenses
 11 
(49,762)
(20,042)

Profit/(loss) before taxation
  
682,719
(647,118)

Tax on profit/(loss)
 12 
(231,124)
46,759

Profit/(loss) for the financial year
  
451,595
(600,359)

  

Currency translation differences
  
78,767
(16,068)

  

Total comprehensive income for the year
  
530,362
(616,427)

Profit/(loss) for the year attributable to:
  

Non-controlling interests
  
63,763
14,371

Owners of the parent company
  
387,832
(614,730)

  
451,595
(600,359)

Total comprehensive income for the year attributable to:
  

Non-controlling interest
  
63,763
14,371

Owners of the parent company
  
466,599
(630,798)

  
530,362
(616,427)

The notes on pages 17 to 38 form part of these financial statements.

Page 9

 
Shepherd Global Limited - Registered number: 08601855

Consolidated statement of financial position
As at 31 December 2022

2022
2021
Note
£
£

Fixed assets
  

Intangible assets
 13 
69,320
115,537

Tangible assets
 14 
247,136
249,704

Investments
 15 
1,120,919
1,442,389

  
1,437,375
1,807,630

Current assets
  

Debtors: amounts falling due after more than one year
 16 
-
229,817

Debtors: amounts falling due within one year
 16 
6,567,099
4,691,127

Cash at bank and in hand
 17 
25,542,539
22,414,015

  
32,109,638
27,334,959

Creditors: amounts falling due within one year
 18 
(28,485,394)
(24,409,274)

Net current assets
  
 
 
3,624,244
 
 
2,925,685

Total assets less current liabilities
  
5,061,619
4,733,315

Creditors: amounts falling due after more than one year
 19 
(1,602,374)
(1,808,093)

Provisions for liabilities
  

Deferred taxation
 22 
(3,661)
-

Net assets
  
3,455,584
2,925,222


Capital and reserves
  

Called up share capital 
 24 
3,000
3,000

Share premium account
 25 
4,755,000
4,755,000

Profit and loss account
 25 
(1,490,312)
(1,956,911)

Equity attributable to owners of the parent company
  
3,267,688
2,801,089

Non-controlling interests
  
187,896
124,133

  
3,455,584
2,925,222


Page 10

 
Shepherd Global Limited - Registered number: 08601855

Consolidated statement of financial position (continued)
As at 31 December 2022

The financial statements were approved and authorised for issue by the board on  and were signed on its behalf by:




J Shepherd
Director

Date: 29 September 2023

The notes on pages 17 to 38 form part of these financial statements.

Page 11

 
Shepherd Global Limited - Registered number: 08601855

Company statement of financial position
As at 31 December 2022

2022
2021
Note
£
£

Fixed assets
  

Investments
 15 
5,515,554
5,540,434

Current assets
  

Debtors
 16 
194,372
694,253

Cash at bank and in hand
 17 
20,089
210,424

  
214,461
904,677

Creditors: amounts falling due within one year
 18 
(1,035,182)
(1,644,738)

Net current liabilities
  
 
 
(820,721)
 
 
(740,061)

Total assets less current liabilities
  
4,694,833
4,800,373

  

  

Net assets
  
4,694,833
4,800,373


Capital and reserves
  

Called up share capital 
 24 
3,000
3,000

Share premium account
 25 
4,755,000
4,755,000

Profit and loss account brought forward
  
42,373
928,972

Loss for the year
  
(105,540)
(886,599)

Profit and loss account carried forward
  
(63,167)
42,373

  
4,694,833
4,800,373


The financial statements were approved and authorised for issue by the board on  and were signed on its behalf by:


J Shepherd
Director

Date: 29 September 2023

The notes on pages 17 to 38 form part of these financial statements.

Page 12


Shepherd Global Limited
 
  
 


Consolidated statement of changes in equity
For the year ended 31 December 2022



Called up share capital
Share premium account
Profit and loss account
Equity attributable to owners of parent company
Non-controlling interests
Total equity


£
£
£
£
£
£



At 1 January 2021
3,000
4,755,000
(1,326,113)
3,431,887
109,762
3,541,649





Loss for the year
-
-
(614,730)
(614,730)
14,371
(600,359)


Currency translation differences
-
-
(16,068)
(16,068)
-
(16,068)





At 1 January 2022
3,000
4,755,000
(1,956,911)
2,801,089
124,133
2,925,222





Profit for the year
-
-
387,832
387,832
63,763
451,595


Currency translation differences
-
-
78,767
78,767
-
78,767



At 31 December 2022
3,000
4,755,000
(1,490,312)
3,267,688
187,896
3,455,584



The notes on pages 17 to 38 form part of these financial statements.

Page 13


Shepherd Global Limited
 
  
 


Company statement of changes in equity
For the year ended 31 December 2022



Called up share capital
Share premium account
Profit and loss account
Total equity


£
£
£
£



At 1 January 2021
3,000
4,755,000
928,972
5,686,972





Loss for the year
-
-
(886,599)
(886,599)





At 1 January 2022
3,000
4,755,000
42,373
4,800,373





Loss for the year
-
-
(105,540)
(105,540)



At 31 December 2022
3,000
4,755,000
(63,167)
4,694,833



The notes on pages 17 to 38 form part of these financial statements.

Page 14

 
Shepherd Global Limited


Consolidated statement of cash flows
For the year ended 31 December 2022

Year ended 31 December 2022
Year ended 31 December 2021
£
£

Cash flows from operating activities

Profit/(loss) for the year
451,595
(600,359)

Adjustments for:

Amortisation of intangible assets
46,217
388,517

Depreciation of tangible assets
122,420
141,895

Interest paid
49,755
20,042

Interest received
(79,987)
(164,050)

Taxation credit/(charge)
231,124
(46,759)

(Increase)/decrease in debtors
(1,651,651)
9,740,102

Increase/(decrease) in creditors
3,948,434
(12,905,069)

Share of results of associates and joint ventures
296,590
(44,825)

Interest paid
(49,755)
(20,042)

Interest received
79,987
164,050

Foreign exchange variance
78,767
(16,068)

Net cash generated from operating activities

3,523,496
(3,342,566)


Cash flows from investing activities

Purchase of tangible fixed assets
(119,852)
(38,876)

Purchase of fixed asset investments
(15,265)
(29,218)

Sale of unlisted and other investments
40,145
-

Net cash from investing activities

(94,972)
(68,094)

Cash flows from financing activities

Repayment of loans
(300,000)
(125,000)

Repayment of finance leases
-
(55,183)

Net cash used in financing activities
(300,000)
(180,183)
Page 15

 
Shepherd Global Limited


Consolidated statement of cash flows (continued)
For the year ended 31 December 2022


2022
2021

£
£



Net increase/(decrease) in cash and cash equivalents
3,128,524
(3,590,843)

Cash and cash equivalents at beginning of year
22,414,015
26,004,858

Cash and cash equivalents at the end of year
25,542,539
22,414,015


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
200,561
700,053

Cash held on behalf of clients
25,341,978
21,713,962

25,542,539
22,414,015


Page 16

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022

1.


General information

Shepherd Global Limited ('the company') is a private company limited by shares and is registered and incorporated in England and Wales. The registered office and principal places of business is 88 Leadenhall Street, London, EC3A 3BP.
The group consists of Shepherd Global Limited and all of its subsidiaries.
The company's and the group's principal activities and nature of its operations are disclosed in the Directors' report.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires group management to exercise judgement in applying the group's accounting policies (see note 3).
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.
The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements incorporate those of Shepherd Global Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtained economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date control passes.
All financial statements are made up to 31 December 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The cost of a business combination is the fair value at the acquired date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

Page 17

 
Shepherd Global Limited

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.3

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Therefore the financial statements have been prepared on a going concern basis.

 
2.4

Foreign currency translation

Functional and presentation currency

The company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

On consolidation, the results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities of overseas operations are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.

 
2.5

Turnover

Brokerage income is recognised when the company's obligations to arrange the respective insurance policy have been substantially completed and the income due is reasonably certain. In respect of income earned or returned out of adjustment premiums, declarations of turnover or periodic premium income statements from clients, income is recognised when the amount has been determined.
Fee income is recognised when and to the extent that insurance services to which it relates have been substantially completed.
Rentals receivable under operating leases are recognised as turnover on a straight line basis over the lease term.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Page 18

 
Shepherd Global Limited

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

Defined contribution pension plan

The group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the group in independently administered funds.

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income 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 company and the group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 19

 
Shepherd Global Limited

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.11

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated statement of comprehensive income over its useful economic life, which is 10 years.
Other intangible assets
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 Amortisation is provided on the following bases:

Computer software

20% straight line
Website development costs

33% straight line

 
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements
-
11 - 14% straight line
Fixtures, fittings and equipment
-
15 -33% straight line
Motor vehicles
-
25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 20

 
Shepherd Global Limited

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.13

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.14

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted group shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.15

Associates and joint ventures

An entity is treated as a joint venture where the group is a party to a contractual agreement with one or more parties from outside the group to undertake an economic activity that is subject to joint control.

An entity is treated as an associated undertaking where the group exercises significant influence in that it has the power to participate in the operating and financial policy decisions.
In the consolidated accounts, interests in associated undertakings are accounted for using the equity method of accounting. Under this method an equity investment is initially recognised at the transaction price (including transaction costs) and is subsequently adjusted to reflect the investors share of the profit or loss, other comprehensive income and equity of the associate. The Consolidated statement of comprehensive income includes the group's share of the operating results, interest, pre-tax results and attributable taxation of such undertakings applying accounting policies consistent with those of the group. In the Consolidated statement of financial position, the interests in associated undertakings are shown as the group's share of the identifiable net assets, including any unamortised premium paid on acquisition.
Any premium on acquisition is dealt with in accordance with the goodwill policy.

 
2.16

Debtors

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.

 
2.17

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 21

 
Shepherd Global Limited

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)

 
2.18

Creditors

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

 
2.19

Provisions for liabilities

Provisions are made where an event has taken place that gives the group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.

  
2.20

Claims handling provisions

An amount of income, representing anticipated future claims handling costs on contracts of insurance written
or accepted under binding authorities as at the reporting date has been deferred to future accounting periods
and is shown within creditors as a deferred income reserve.

  
2.21

Insurance debtors and creditors

i) The group acts as an agent in brokering the insurable risks of its clients and generally is not liable as a
principal for premiums due to underwriters nor for claims payable of its clients. Notwithstanding the
group's legal relationship with client and underwriters and since, in practice premium and claims monies
are usually accounted for by insurance intermediaries, it has followed generally accepted accounting
principles by showing cash, debtors, and creditors relating to insurance business as assets and liabilities of the
group itself.
ii) The group has given regard to FRS 102 and offsets debtors and creditors from insurance broking
transactions only when it is legally enforceable.

  
2.22

Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development
expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be
demonstrated.

 
2.23

Financial instruments

The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
 
Page 22

 
Shepherd Global Limited

Notes to the financial statements
For the year ended 31 December 2022

2.Accounting policies (continued)


2.23
Financial instruments (continued)

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated statement of comprehensive income.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Investment in associate
In line with the company's and group's accounting policies, the directors have assessed whether there are any indications that the company's investment in its associate undertaking is impaired. Though the associated undertaking has made only a small profit in the year ended 31 December 2022, in the judgement of the directors the carrying value of the investment is not impaired. They have reached this conclusion after considering the discontinuation of loss making divisions within the company and the appointment of a new Chief Underwriting Officer, who is well known to the market and is expected to drive profitable growth in years to come.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows:
Deferred income
Material estimates are made in determining deferred income. Details of its nature and carrying amount are set out in note 23.
Insurance creditors
Included in creditors are amounts that are being investigated and may be subject to a future credit write back. At 31/12/22 these totalled £175,880.

Page 23

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022

4.


Turnover

An analysis of turnover by class of business is as follows:


2022
2021
£
£

Brokerage fees
9,465,412
8,473,756

Other income
4,918
14,562

9,470,330
8,488,318


Analysis of turnover by country of destination:

2022
2021
£
£
United states

3,083,250

3,131,443
 
Europe

2,181,476

2,169,455
 
United Kingdom

2,799,404

2,048,787
 
Other

1,406,200

1,124,071
 
9,470,330

8,473,756
 


5.


Other operating income

2022
2021
£
£

Other operating income
-
75,000

Rental income received
150,000
-

Recharged costs
1,244,235
1,112,674

1,394,235
1,187,674



6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging/(crediting):

2022
2021
£
£

Exchange differences
(32,270)
-

Other operating lease rentals
430,224
494,809

Page 24

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022

7.


Auditor's remuneration

2022
2021
£
£


Fees payable to the group's auditor for the audit of the group's annual financial statements
8,625
7,500


Fees payable to the group's auditor and its associates in respect of:


Audit of subsidiary undertakings
24,725
21,000

Audit-related assurance services
4,500
4,000

Taxation compliance services
6,400
5,800

All other services
9,075
8,250

44,700
39,050


8.


Employees

Staff costs, including directors' remuneration, were as follows:

2022
2021
£
£
Wages and salaries

5,382,775

5,304,699
 
Social security costs

637,940

699,786
 
Company contribution to defined contribution pension schemes

447,506

699,786
 
6,468,221

6,704,271
 


The average monthly number of employees, including the directors, during the year was as follows:

2022
2021
£
£
Administration

41

43
 
Management

6

7
 
Production

45

31
 
92

81
 

Page 25

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022

9.


Directors' remuneration

2022
2021
£
£
Remuneration for qualifying services

805,527

646,134
 
Company contribution to defined contribution pension schemes

53,525

112,080
 
859,052

758,214
 

The highest paid director received remuneration of £464,846 (2021: £500,000).
The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounts to £8,333 (2021: £10,000).


10.


Interest receivable

2022
2021
£
£


Interest on bank deposits
79,987
164,050


11.


Interest payable and similar expenses

2022
2021
£
£


Interest on finance leases and hire purchase contracts
8,448
-

Interest on bank overdrafts and loans
41,314
20,042

49,762
20,042

Page 26

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022

12.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
174,185
83,364


174,185
83,364


Total current tax
174,185
83,364

Deferred tax


Origination and reversal of timing differences
56,939
(130,123)

Total deferred tax
56,939
(130,123)


Taxation on profit/(loss) on ordinary activities
231,124
(46,759)
Page 27

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2021 - higher than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit/(loss) on ordinary activities before tax
682,719
(647,118)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2020 - 19%)
129,717
(122,952)

Effects of:


Expenses not deductible for tax purposes
88,181
135,341

R&D tax credit
-
(16,512)

Change of rate of deferred tax
13,666
(23,793)

Fixed asset differences
(1,267)
(1,968)

Share of profits from associate
-
(8,517)

Difference due to overseas tax rates
827
4,333

Movement in deferred tax not recognised
-
(12,691)

Total tax charge for the year/period
231,124
(46,759)


Factors that may affect future tax charges

With effect from 1 April 2023 the rate of corporation tax increased, tapering from 19% for businesses with profits
of less than £50,000 to 25% for businesses with profit over £250,000.
Deferred tax in these financial statements has been measured at 25%, being the rate that was substantively enacted at the reporting date.

Page 28

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022

13.


Intangible assets

Group and Company





Website development costs
Computer software
Goodwill
Total

£
£
£
£



Cost


At 1 January 2022
18,401
7,568
462,165
488,134



At 31 December 2022

18,401
7,568
462,165
488,134



Amortisation


At 1 January 2022
18,401
7,568
346,628
372,597


Charge for the year
-
-
46,217
46,217



At 31 December 2022

18,401
7,568
392,845
418,814



Net book value



At 31 December 2022
-
-
69,320
69,320



At 31 December 2021
-
-
115,537
115,537



Page 29

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022

14.


Tangible fixed assets

Group






Leasehold improvements
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2022
655,704
168,462
566,820
1,390,986


Additions
-
97,939
21,913
119,852


Disposals
-
(119,375)
-
(119,375)



At 31 December 2022

655,704
147,026
588,733
1,391,463



Depreciation


At 1 January 2022
519,011
139,562
482,709
1,141,282


Charge for the year
34,929
16,323
42,268
93,520


Disposals
-
(90,475)
-
(90,475)



At 31 December 2022

553,940
65,410
524,977
1,144,327



Net book value



At 31 December 2022
101,764
81,616
63,756
247,136



At 31 December 2021
136,693
28,900
84,111
249,704

Page 30

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022

15.


Fixed asset investments

Group





Investments in associate
Unlisted investments
Total

£
£
£



Cost or valuation


At 1 January 2022
1,248,166
194,223
1,442,389


Additions
-
15,265
15,265


Disposals
-
(40,145)
(40,145)


Amortisation
(341,596)
-
(341,596)


Shares of associate's profit
45,006
-
45,006



At 31 December 2022
951,576
169,343
1,120,919




Company





Investments in subsidiary companies
Investments in associate
Unlisted investments
Total

£
£
£
£



Cost or valuation


At 1 January 2022
1,485,000
3,861,211
194,223
5,540,434


Additions
-
-
15,265
15,265


Disposals
-
-
(40,145)
(40,145)



At 31 December 2022
1,485,000
3,861,211
169,343
5,515,554





Subsidiary undertakings


The following were subsidiary undertakings at 31 December 2022:

Name

Registered office

Class of shares

Holding

Shepherd Compello B.V.
Lubeckweg 2, 9723 HE Groningen, Netherlands
Ordinary
92.7%
Shepherd Compello Holdings LLC USA
8 The Green, Suit R, Dover, DE19901-3618, USA
Ordinary
92.7%
EPG Global Limited
77 Marsh Wall, London, England, E14 9SH
Ordinary
100%
Shepherd Compello Limited
88 Leadenhall Street, London, EC3A 3BP
Ordinary
92.7%

Page 31

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022
Subsidiary undertakings (continued)

Shepherd Compello B.V. and Shepherd Compello Holdings LLC USA are indirect subsidiaries, being a 100% owned subsidiary undertakings of Shepherd Compello Limited.
Associates
At 31 December 2022, the company held 41% of ordinary shares in White Oak Underwriting Agency Limited. The registered office of this associate is 88 Leadenhall Street, London, EC3A 3BP.







16.


Debtors

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Due after more than one year

Other debtors
-
229,817
-
-


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Due within one year

Amounts owed by group undertakings
821,908
1,283,396
66,894
558,718

Other debtors
2,148,682
1,380,834
81,620
42,677

Insurance debtors
3,411,928
1,828,951
-
-

Prepayments and accrued income
138,723
98,810
-
-

Deferred taxation
45,858
99,136
45,858
92,858

6,567,099
4,691,127
194,372
694,253



17.


Cash and cash equivalents

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Cash held on behalf of clients
25,341,978
21,713,962
-
-

Cash held in office account
200,561
700,053
20,089
210,424

25,542,539
22,414,015
20,089
210,424


Page 32

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022

18.


Creditors: amounts falling due within one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Bank loans
300,000
300,000
-
-

Trade creditors
95,203
151,405
-
-

Amounts owed to group undertakings
-
-
446,031
1,289,991

Corporation tax
397,300
383,023
-
32,080

Other taxation and social security
176,564
182,956
76,174
66,493

Obligations under finance leases
90,960
1,575
-
-

Insurance creditors
25,411,079
21,129,336
-
-

Other creditors
196,185
322,494
-
127,974

Accruals and deferred income
1,818,103
1,938,485
512,977
128,200

28,485,394
24,409,274
1,035,182
1,644,738



19.


Creditors: amounts falling due after more than one year

Group
Group
2022
2021
£
£

Bank loans
775,000
1,075,000

Obligations under finance leases
-
2,463

Accruals and deferred income
827,374
730,630

1,602,374
1,808,093


The bank loan of £1,075,000 (2021: £1,375,000) is due for repayment over 6 years and attracts interest at 1.69% per annum above the Bank of England Base Rate and is secured by debentures across Shepherd Compello Limited, Shepherd Global Limited and White Oak Underwriting Agency Limited.

Page 33

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022

20.


Loans




Group
Group
2022
2021
£
£

Amounts falling due within one year

Bank loans
300,000
300,000

Amounts falling due 1-2 years

Bank loans
775,000
1,075,000



1,075,000
1,375,000



21.


Finance lease obligations


Future minimum lease payments due under finance leases: 

Group
Group
2022
2021
£
£

Within one year
4,864
2,283

Between 1-5 years
-
2,463

4,864
4,746

Page 34

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022

22.


Deferred taxation


Group



2022


£






At beginning of year
99,136


Credited to profit or loss
(56,939)



At end of year
42,197

Company


2022


£






At beginning of year
92,858


Credit to profit or loss
(47,000)



At end of year
45,858

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Accelerated capital allowances
-
(28,953)
-
-

Tax losses carried forward
-
60,009
-
60,009

Other
42,197
68,080
45,858
32,849

42,197
99,136
45,858
92,858

Comprising:

Asset
45,858
99,136
45,858
92,858

Liability
(3,661)
-
-
-

42,197
99,136
45,858
92,858


Page 35

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022

23.


Deferred income

Deferred income is included in the financial statements as follows:

2022
2021
£
£
Current liabilities

300,000

260,061
 
Non-current liabilities

831,627

730,630
 
1,131,627

990,691
 

The deferred income represents deferral of commission income related to claims handling activities. The amount of the provision has been determined using assumptions regarding the future activity levels and is at fair value.


24.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



3,000 (2021 - 3,000) Ordinary shares of £1.00 each
3,000
3,000



25.


Reserves

Share premium account
Reserve represents consideration received for shares issued above their nominal value.
Profit and loss reserves
Cumulative profit and loss net of distributions to owners.


26.


Pension commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from
those of the group in an independently administered fund. The pension cost charge represents contributions
payable by the entity to the fund and amounted to £447,506 (2021: £699,786). Contributions totalling £114,667 (2021: £268,897) were payable to the fund at the reporting date.

Page 36

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022

27.


Commitments under operating leases

At 31 December 2022, the group and the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2022
2021
£
£

Not later than 1 year
171,093
341,088

Later than 1 year and not later than 5 years
157,600
323,829

328,693
664,917

28.


Related party transactions

White Oak Underwriting Agency Limited ('White Oak') is an associate undertaking. During the year the group provided loans of £nil (2021: £nil) to White Oak with an effective interest rate of 10% per annum, and made payments on behalf of White Oak totalling £985,332 (2021: £1,810,731). White Oak made repayments totalling £1,825,000 (2021: £2,016,900). There are no fixed repayment terms. Interest charged during the period was £60,000 (2021: £163,411). The group charged fees to White Oak Underwriting Agency Limited of £717,541 (2021:
£509,500). At the year end, the amount due from White Oak was £767,404 (2021: £1,446,807).
Shepherd Compello Limited, a subsidiary, recharged £46,363 (2021: £436,077) of expenses to the company, and the company recharged expenses totalling £2,000,745 (2021: £388,792) to the company. Shepherd Compello made net payments of £829,366 (2021: £1,566,195) during the year. At the year end, Shepherd Compello Limited was owed £314,975 (2021: £1,289,990) by Shepherd Global Limited.
At the year end, the company was owed £1,980,281 (2021: £206,336) by Shepherd Compello B.V., an entity controlled by the company.


29.


Directors' transactions

During the year, total advances of £107,747 (2021: £56,598) were made to J Shepherd and total repayments of £nil (2021: £nil) were received by the company. At the year end, £320,289 (2021: £161,724) was owed to the group by J Shepherd.
During the year, total advances of £170,202 (2021: £418,623) were made to H T Shepherd, and total repayments of £nil (2021: £10,000) were received by the group. At the year end, £969,401 (2021: £913,648) was owed to the group by H T Shepherd. These balances are included within "other debtors" in note 16, and are interest free and repayable on demand.


30.


Controlling party

Shepherd Global Limited heads the smallest and largest group for which consolidated financial statements are prepared. Its registered office is 88 Leadenhall Street, London, EC3A 3BP.
The ultimate controlling party is considered to be J Shepherd by virtue of his majority shareholding in Shepherd Global Limited.

Page 37

 
Shepherd Global Limited

 
Notes to the financial statements
For the year ended 31 December 2022
31.


Analysis of net debt






At 1 January 2022
Cash flows
Repayments of loans / finance leases
Other non-cash changes
At 31 December 2022
£

£

£

£

£

Cash at bank and in hand

700,053

(499,492)

-

-

200,561

Cash held on behalf of clients

21,713,962

3,628,016

-

-

25,341,978

Debt due after 1 year

(1,075,000)

-

-

300,000

(775,000)

Debt due within 1 year

(300,000)

-

300,000

(300,000)

(300,000)

Finance leases

(4,038)

-

-

(86,922)

(90,960)


21,034,977
3,128,524
300,000
(86,922)
24,376,579

Page 38