Company registration number 00728419 (England and Wales)
STANMORE INSURANCE BROKERS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
PAGES FOR FILING WITH REGISTRAR
STANMORE INSURANCE BROKERS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
STANMORE INSURANCE BROKERS LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
381,265
320,283
Current assets
Debtors
5
1,791,393
1,479,112
Cash at bank and in hand
1,967,648
1,542,811
3,759,041
3,021,923
Creditors: amounts falling due within one year
6
(2,194,277)
(2,051,339)
Net current assets
1,564,764
970,584
Total assets less current liabilities
1,946,029
1,290,867
Provisions for liabilities
(72,671)
(13,117)
Net assets
1,873,358
1,277,750
Capital and reserves
Called up share capital
24,000
24,000
Share premium account
202,630
202,630
Profit and loss reserves
1,646,728
1,051,120
Total equity
1,873,358
1,277,750
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 September 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
STANMORE INSURANCE BROKERS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 SEPTEMBER 2023
30 September 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 5 February 2024 and are signed on its behalf by:
Mrs J Hyde
Director
Company Registration No. 00728419
STANMORE INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -
1
Accounting policies
Company information
Stanmore Insurance Brokers Limited is a private company limited by shares incorporated in England and Wales. The registered office is 30 High Street, Little Lever, Bolton, BL3 1NB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary 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
Turnover
Turnover is recognised at the fair value of consideration received for insurance broking services provided in the normal course of business, and is shown net of the relevant sales related tax, IPT.
Turnover is recognised on receipt of insurance premiums or agreed fees from the client, alongside acceptance of the premium by the insurer. A proportion of the commission is deferred over the period of the contract to cover the ongoing maintenance and claims management of the contract. Other amounts received from insurers are also recognised upon receipt given the inherent uncertainty over entitlement until they are remitted to the company.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its useful economic life of 10 years.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Straight line basis until lease end December 2028
Fixtures & fittings
25% straight line basis
Office equipment
20% or 33% straight line basis
Assets in the course of construction are not depreciated.
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.
STANMORE INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.6
Cash and cash equivalents
Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, are initially recognised at transaction price. 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. Trade creditors are recognised initially at transaction price.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
STANMORE INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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.
1.10
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.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
1.13
Insurance broking assets and liabilities
In accordance with the rules established by the Financial Conduct Authority, the company holds all insurance funds in segregated statutory trust client bank accounts. The cash at bank and in hand balance as stated on the balance sheet includes all client, insurer and own monies. Debtors and creditors arising from insurance broking transactions are shown separately as assets and liabilities.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
27
25
STANMORE INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 6 -
3
Intangible fixed assets
Goodwill
£
Cost
At 1 October 2022 and 30 September 2023
303,730
Amortisation and impairment
At 1 October 2022 and 30 September 2023
303,730
Carrying amount
At 30 September 2023
At 30 September 2022
4
Tangible fixed assets
Leasehold improvements
Assets under construction
Fixtures & fittings
Office equipment
Total
£
£
£
£
£
Cost
At 1 October 2022
267,816
44,721
150,291
462,828
Additions
101,850
13,545
19,533
134,928
Disposals
(13,096)
(111,834)
(124,930)
Transfers
104,649
(267,816)
163,167
At 30 September 2023
206,499
208,337
57,990
472,826
Depreciation and impairment
At 1 October 2022
15,418
127,127
142,545
Depreciation charged in the year
22,005
35,910
14,048
71,963
Eliminated in respect of disposals
(11,113)
(111,834)
(122,947)
At 30 September 2023
22,005
40,215
29,341
91,561
Carrying amount
At 30 September 2023
184,494
168,122
28,649
381,265
At 30 September 2022
267,816
29,303
23,164
320,283
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
775,294
573,866
Amounts owed by group undertakings
699,812
694,621
Other debtors
316,287
210,625
1,791,393
1,479,112
STANMORE INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 7 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,859,774
1,605,736
Taxation and social security
177,116
125,647
Other creditors
157,387
319,956
2,194,277
2,051,339
7
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
25,008
25,008
Between two and five years
100,032
100,032
In over five years
4,168
29,176
129,208
154,216
8
Related party transactions
Balances with related parties
The following amounts were outstanding at the reporting end date:
Category
Amounts owed by
Amounts owed to
related parties
related parties
2023
2022
2023
2022
£
£
£
£
Entities with control, joint control or significant influence over the company
699,812
694,621
9
Directors' transactions
A director of the company received an advance from the company that totalled £165,325 (2022: £160,211) at the balance sheet date. The maximum amount advanced during the year was £386,007. Interest was charged at the HMRC approved rate. The advance was unsecured and repayable on demand.