Company registration number 06836398 (England and Wales)
ALLAY CLAIMS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
ALLAY CLAIMS LTD
COMPANY INFORMATION
Directors
A M Stokoe
S P Bell
Company number
06836398
Registered office
Studio 20, The Kiln
Hoults Yard
Walker Road
Newcastle Upon Tyne
NE6 2HL
Auditor
Sumer Auditco Limited
The Beehive, Beehive Ring Road
London Gatwick Airport
Gatwick
United Kingdom
RH6 0PA
ALLAY CLAIMS LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 20
ALLAY CLAIMS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 1 -

The directors present the strategic report for the year ended 28 February 2022.

Principal activities

The principal activity of the company continued to be that of a claims management company.

Review of the business

Turnover arising from PPI claims has fallen during the period to £nil as time limit for PPI claims has passed.

 

The directors consider the loss in the current year on ordinary activities before taxation of £1,595,046 (2021 : Profit £23,395,827) is expected as the company has no income and looks to consolidate its position by minimising expenses as the strategy for the business is reviewed going forward.

Principal risks and uncertainties

The company finances its operations through retained profits and support from the shareholders. The management's objectives are to:

 

- retain sufficient liquid funds to enable the company to meet its day to day obligations as they fall due whilst maximising returns on surplus funds.

 

All of the company's surplus funds are invested in sterling bank accounts, therefore there is no price risk exposure.

Going Concern

In February 2021 the company transferred its trade and certain assets to UK GPC Ltd (formerly Allay (UK) Ltd) and exited the group and is currently not trading.

 

However, at the time of approving the financial statements, the directors have a reasonable expectation that the company has sufficient resources to enable the company to meet its day to day obligations as they fall due subject to the discretionary financial support of the shareholders.

 

Therefore the directors have continued to adopt the going concern basis of accounting in preparing the financial statements.

s172(1) statement

The directors of the company consider, both individually and together, that they have acted in a way which is most likely to promote the success of the company for the benefit of its stakeholders. The key stakeholders of the company are the suppliers and company shareholders. In discharging their Section 172 duties, the directors have considered the impact on the interests of suppliers by ensuring agreements are honoured and payment terms are met. The directors seek to align company values with other stakeholder values to ensure continued success.

On behalf of the board

S P Bell
Director
20 October 2023
ALLAY CLAIMS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 2 -

The directors present their annual report and financial statements for the year ended 28 February 2022.

Results and dividends

The results for the year are set out on page 7.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

A M Stokoe
S P Bell
Auditor

Sumer Auditco Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Energy and carbon report

The SECR disclosure presents our carbon footprint within the United Kingdom, an appropriate intensity metric, the total energy used of electricity and gas for the relevant financial year.

Year ended 28 February 2022
Period ended 26 February 2021
Energy consumption used to calculate emissions (kWh)
-
234,861
Emissions from combustion of gas (tCO2e)
-
8.8
Emissions from purchased electricity, location-based (tCO2e)
-
6.8
Total gross tCO2e based on above
-
15.6
Number of claims during period
-
69k
Intensity ratio (tCO2e/claim)
-
0.226
*where tCO2e is the metric tonne of Carbon Dioxide equivalent
Quantification and reporting methodology

We have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol – Corporate Standard and have used the 2020 UK Government’s Conversion Factors for Company Reporting.

ALLAY CLAIMS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 3 -
Statement of directors' responsibilities

The directors are responsible 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:

 

 

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.

Strategic Report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
S P Bell
Director
20 October 2023
ALLAY CLAIMS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ALLAY CLAIMS LTD
- 4 -
Opinion

We have audited the financial statements of Allay Claims Ltd (the 'company') for the year ended 28 February 2022 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

ALLAY CLAIMS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLAY CLAIMS LTD
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:

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 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'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 financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Capability of the audit in detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

 

The following laws and regulations were identified as being of significance to the entity:

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

ALLAY CLAIMS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ALLAY CLAIMS LTD
- 6 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://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.

Paul Gainford
Senior Statutory Auditor
For and on behalf of Sumer Auditco Limited
Statutory Auditor
The Beehive, Beehive Ring Road
London Gatwick Airport
Gatwick
United Kingdom
RH6 0PA
20 October 2023
ALLAY CLAIMS LTD
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 7 -
Year
Period
ended
ended
28 February
26 February
2022
2021
Notes
£
£
Turnover
3
-
36,130,551
Cost of sales
-
0
(1,088,642)
Gross profit
-
35,041,909
Administrative expenses
(1,060,873)
(53,877,318)
Other operating income
59,891
279,639
Operating loss
4
(1,000,982)
(18,555,770)
Interest receivable and similar income
319
301
Interest payable and similar expenses
7
(594,383)
(48,704)
Other gains and losses
8
-
42,000,000
(Loss)/profit before taxation
(1,595,046)
23,395,827
Tax on (loss)/profit
9
66,471
(4,376,225)
(Loss)/profit for the financial year
(1,528,575)
19,019,602

 

ALLAY CLAIMS LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 8 -
Year
Period
ended
ended
2022
2021
£
£
(Loss)/profit for the year
(1,528,575)
19,019,602
Other comprehensive income
-
-
Total comprehensive income for the year
(1,528,575)
19,019,602
ALLAY CLAIMS LTD
BALANCE SHEET
AS AT
28 FEBRUARY 2022
28 February 2022
- 9 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
-
0
12,532
Current assets
Debtors
12
-
0
68,180
Cash at bank and in hand
3,451,682
10,042,116
3,451,682
10,110,296
Creditors: amounts falling due within one year
13
(4,942,753)
(10,085,324)
Net current (liabilities)/assets
(1,491,071)
24,972
Net (liabilities)/assets
(1,491,071)
37,504
Capital and reserves
Called up share capital
15
200
200
Share premium account
3,978
3,978
Profit and loss reserves
(1,495,249)
33,326
Total equity
(1,491,071)
37,504
The financial statements were approved by the board of directors and authorised for issue on 20 October 2023 and are signed on its behalf by:
S P Bell
Director
Company Registration No. 06836398
ALLAY CLAIMS LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 10 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2020
200
3,978
42,613,617
42,617,795
Period ended 26 February 2021:
Profit and total comprehensive income
-
-
19,019,602
19,019,602
Dividends
10
-
-
(61,599,893)
(61,599,893)
Balance at 26 February 2021
200
3,978
33,326
37,504
Year ended 28 February 2022:
Loss and total comprehensive income
-
-
(1,528,575)
(1,528,575)
Balance at 28 February 2022
200
3,978
(1,495,249)
(1,491,071)
ALLAY CLAIMS LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 11 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
18
(896,175)
31,251,351
Interest paid
(594,383)
(48,704)
Income taxes paid
(5,100,195)
(1,777,194)
Net cash (outflow)/inflow from operating activities
(6,590,753)
29,425,453
Investing activities
Proceeds from disposal of tangible fixed assets
-
0
(28,204)
Proceeds from disposal of investments
-
0
42,000,000
Interest received
319
301
Net cash generated from investing activities
319
41,972,097
Financing activities
Dividends paid
-
0
(61,599,893)
Net cash used in financing activities
-
(61,599,893)
Net (decrease)/increase in cash and cash equivalents
(6,590,434)
9,797,657
Cash and cash equivalents at beginning of year
10,042,116
244,459
Cash and cash equivalents at end of year
3,451,682
10,042,116
ALLAY CLAIMS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 12 -
1
Accounting policies
Company information

Allay Claims Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Studio 20, The Kiln, Hoults Yard, Walker Road, Newcastle Upon Tyne, NE6 2HL.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

In February 2021 the company transferred its trade and certain assets to UK GPC Ltd (formerly Allay (UK) Ltd) and exited the group and is currently not trading. true

 

However, at the time of approving the financial statements, the directors have a reasonable expectation that the company has sufficient resources to enable the company to meet its day to day obligations as they fall due subject to the discretionary financial support of the shareholders.

 

Therefore the directors have continued to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Fees for compensation claims are recognised at the point when the outcome of a claim is confirmed as successful.

 

Turnover is derived from the provision of services, and stated after trade discounts, other sales taxes and net of VAT.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
33.3% straight line
Plant and equipment
33.3% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

ALLAY CLAIMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
1
Accounting policies
(Continued)
- 13 -
1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

ALLAY CLAIMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, including creditors, and loans from fellow group companies, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.7
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.8
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received, if considered material to the financial statements.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

ALLAY CLAIMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
1
Accounting policies
(Continued)
- 15 -
1.9
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.10
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.11
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements 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 amount 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 that are 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 the 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.

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability.

 

The total provision for impairments on current debtors in the financial statements at the reporting date was £620,850 (2021: £Nil).

3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
PPI and compensation
-
36,130,551
2022
2021
£
£
Other significant revenue
Grants received
59,891
279,639
ALLAY CLAIMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
3
Turnover and other revenue
(Continued)
- 16 -

Turnover and grants received have arisen wholly within the United Kingdom.

Grant income includes amounts of £59,891 (2021: £279,639) receivable in relation to the Coronavirus Job Retention Scheme.

4
Operating loss
2022
2021
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
6,641
7,000
Depreciation of owned tangible fixed assets
12,532
1,928
(Profit)/loss on disposal of tangible fixed assets
-
28,204
Impairment of current debtors
620,850
-
0
Operating lease charges
94,382
104,133
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2022
2021
Number
Number
Office and management
2
118

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
12,138
2,516,559
Social security costs
1,574
220,439
Pension costs
109
21,540
13,821
2,758,538
6
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
12,138
128,198
Company pension contributions to defined contribution schemes
109
1,167
12,247
129,365

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2021 - 1).

ALLAY CLAIMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 17 -
7
Interest payable and similar expenses
2022
2021
£
£
Other finance costs:
Other interest
594,383
48,704
8
Other gains and losses
2022
2021
£
£
Gain on sale of pipeline
-
42,000,000
9
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
-
0
4,445,207
Adjustments in respect of prior periods
(66,471)
(68,982)
Total current tax
(66,471)
4,376,225

The actual (credit)/charge for the year can be reconciled to the expected (credit)/charge for the year based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
(Loss)/profit before taxation
(1,595,046)
23,395,827
Expected tax (credit)/charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
(303,059)
4,445,207
Tax effect of expenses that are not deductible in determining taxable profit
121,969
-
0
Tax effect of utilisation of tax losses
66,471
-
0
Adjustments in respect of prior years
-
0
(68,982)
Other timing differences
48,148
-
0
Taxation (credit)/charge for the year
(66,471)
4,376,225
10
Dividends
2022
2021
£
£
Final paid
-
0
61,599,893
ALLAY CLAIMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 18 -
11
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Total
£
£
£
Cost
At 27 February 2021
38,561
7,663
46,224
Disposals
(38,561)
(7,663)
(46,224)
At 28 February 2022
-
0
-
0
-
0
Depreciation and impairment
At 27 February 2021
26,029
7,663
33,692
Depreciation charged in the year
12,532
-
0
12,532
Eliminated in respect of disposals
(38,561)
(7,663)
(46,224)
At 28 February 2022
-
0
-
0
-
0
Carrying amount
At 28 February 2022
-
0
-
0
-
0
At 26 February 2021
12,532
-
0
12,532
12
Debtors
2022
2021
Amounts falling due within one year:
£
£
Other debtors
-
0
20,976
Prepayments and accrued income
-
0
47,204
-
0
68,180
13
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
130,745
20,535
Corporation tax
4,791,008
9,957,674
Other taxation and social security
-
0
73,273
Other creditors
-
0
19,842
Accruals and deferred income
21,000
14,000
4,942,753
10,085,324
ALLAY CLAIMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 19 -
14
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
109
21,540

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

15
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
16
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2022
2021
£
£
Within one year
-
0
146,068
Between two and five years
-
0
30,146
-
0
176,214
17
Ultimate controlling party

On 26 February 2021 the company transferred its trade and certain assets to UK GPC Ltd (formerly Allay (UK) Ltd) and exited the group. As a result the company is now wholly owned by S Bell, S P Bell and A Stokoe. In the opinion of the directors, there is no overall controlling party.

ALLAY CLAIMS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2022
- 20 -
18
Cash (absorbed by)/generated from operations
2022
2021
£
£
(Loss)/profit for the year after tax
(1,528,575)
19,019,602
Adjustments for:
Taxation (credited)/charged
(66,471)
4,376,225
Finance costs
594,383
48,704
Investment income
(319)
(301)
(Gain)/loss on disposal of tangible fixed assets
-
28,204
Depreciation and impairment of tangible fixed assets
12,532
1,928
Gain on sale of pipeline
-
(42,000,000)
Movements in working capital:
Decrease in debtors
68,180
113,529,867
Increase/(decrease) in creditors
24,095
(63,752,878)
Cash (absorbed by)/generated from operations
(896,175)
31,251,351
19
Analysis of changes in net funds
27 February 2021
Cash flows
28 February 2022
£
£
£
Cash at bank and in hand
10,042,116
(6,590,434)
3,451,682
2022-02-282021-02-27falseCCH SoftwareCCH Accounts Production 2023.200A M StokoeS P Bell1528575068363982021-02-272022-02-2806836398bus:Director12021-02-272022-02-2806836398bus:Director22021-02-272022-02-2806836398bus:RegisteredOffice2021-02-272022-02-28068363982022-02-28068363982020-07-012021-02-26068363982021-02-2606836398core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-02-2806836398core:PlantMachinery2022-02-2806836398core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-02-2606836398core:PlantMachinery2021-02-2606836398core:CurrentFinancialInstrumentscore:WithinOneYear2022-02-2806836398core:CurrentFinancialInstrumentscore:WithinOneYear2021-02-2606836398core:CurrentFinancialInstruments2022-02-2806836398core:CurrentFinancialInstruments2021-02-2606836398core:ShareCapital2022-02-2806836398core:ShareCapital2021-02-2606836398core:SharePremium2022-02-2806836398core:SharePremium2021-02-2606836398core:RetainedEarningsAccumulatedLosses2022-02-2806836398core:RetainedEarningsAccumulatedLosses2021-02-2606836398core:ShareCapital2020-06-3006836398core:SharePremium2020-06-3006836398core:RetainedEarningsAccumulatedLosses2020-06-3006836398core:RetainedEarningsAccumulatedLosses2020-07-012021-02-26068363982021-02-26068363982020-06-3006836398core:LandBuildingscore:LongLeaseholdAssets2021-02-272022-02-2806836398core:PlantMachinery2021-02-272022-02-280683639812021-02-272022-02-280683639812020-07-012021-02-2606836398core:UKTax2021-02-272022-02-2806836398core:UKTax2020-07-012021-02-2606836398core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-02-2606836398core:PlantMachinery2021-02-2606836398core:LandBuildingscore:LeasedAssetsHeldAsLessee2021-02-272022-02-2806836398core:WithinOneYear2022-02-2806836398core:WithinOneYear2021-02-2606836398core:BetweenTwoFiveYears2022-02-2806836398core:BetweenTwoFiveYears2021-02-2606836398bus:PrivateLimitedCompanyLtd2021-02-272022-02-2806836398bus:FRS1022021-02-272022-02-2806836398bus:Audited2021-02-272022-02-2806836398bus:FullAccounts2021-02-272022-02-28xbrli:purexbrli:sharesiso4217:GBP