Company Registration No. 02680875 (England and Wales)
IFM INSURANCE BROKERS LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
IFM INSURANCE BROKERS LIMITED
CONTENTS
Page
Directors' responsibilities statement
Balance sheet
1
Notes to the financial statements
2 - 7
IFM INSURANCE BROKERS LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2023
31 October 2023
1
Period ended
Year ended
31 October 2023
31 March 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
47,442
57,701
Current assets
Debtors
5
1,592,845
190,309
Cash at bank and in hand
1,009,122
2,011,297
2,601,967
2,201,606
Creditors: amounts falling due within one year
6
(504,654)
(423,663)
Net current assets
2,097,313
1,777,943
Total assets less current liabilities
2,144,755
1,835,644
Provisions for liabilities
(14,425)
(14,425)
Net assets
2,130,330
1,821,219
Capital and reserves
Called up share capital
7
293
293
Share premium account
61,685
61,685
Capital redemption reserve
600
600
Profit and loss reserves
2,067,752
1,758,641
Total equity
2,130,330
1,821,219
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 1 March 2024 and are signed on its behalf by:
Mr M D S Edgeley
Director
Company registration number 02680875 (England and Wales)
IFM INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 OCTOBER 2023
2
1
Accounting policies
Company information
IFM Insurance Brokers Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st and 2nd Floor, Parkway Works, Kettlebridge Road, Sheffield, S9 3BL.
1.1
Reporting period
The annual financial statements are presented for a period shorter than one year to align the year end with the group, and therefore the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.
1.2
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.
1.3
Turnover
Turnover represents brokerage commission and fees net of any commission payable to third parties, and performance related commission over-riders.
Brokerage is recognised when the company's contractual right to such income is established and to the extent that the company's relevant obligations under the contracts concerned have been performed. For most of the company's broking activities, this means that brokerage is recognised at the inception of the underlying contract of insurance concerned. An appropriate portion of turnover is deferred for post placement obligations to be rendered in respect of business placed by the period end date.
The amount deferred is recognised as income over the servicing period on a consistent basis reflecting the pattern of servicing activities.
Performance related over-rider commission is recognised as income when the amount earned has been confirmed.
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:
Plant and equipment
25% Straight line
Leasehold improvements
10% 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.
IFM INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
3
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). 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.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, 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 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.
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.
IFM INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
4
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future 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.
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.
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.
1.10
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.
IFM INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
5
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.14
Insurance broking debtors and creditors
The company acts as an agent in broking the insurable risks of clients and, generally speaking, is not liable as a principal for premiums due to underwriters or for return premiums and claims payable to clients. In recognition of this relationship, the insurance debtors, creditors and cash balances ("fiduciary assets") relating to insurance business are not included as assets and liabilities of the company itself.
In the ordinary course of insurance broking business, settlement is required to be made with certain market settlement bureau, insurance intermediaries or insurance companies on the basis of the net balance due to or from them rather than the amount due to or from the individual third party which it represents. Net fiduciary assets presenting brokerage earned by the company and not taken to its own funds is included in balance sheet debtors an amount falling due within one year.
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.
The critical judgements that the directors have made in the process of applying the company's accounting policies that have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.
(i) Deferred income for post placement obligations
An amount of revenue is deferred for post placement obligations to be rendered in respect of business placed by the period end date, this estimate is based on the duration of policies and the costs of claims handling. The assumptions reflect historical experience, current trends and management's best estimate.
IFM INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
6
3
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
Period ended
Year ended
31 October
31 March
2023
2023
Number
Number
Total
24
29
4
Tangible fixed assets
Plant and equipment
Leasehold improvements
Total
£
£
£
Cost
At 1 April 2023 and 31 October 2023
65,414
97,641
163,055
Depreciation and impairment
At 1 April 2023
56,534
48,820
105,354
Depreciation charged in the period
4,563
5,696
10,259
At 31 October 2023
61,097
54,516
115,613
Carrying amount
At 31 October 2023
4,317
43,125
47,442
At 31 March 2023
8,880
48,821
57,701
5
Debtors
31 October
31 March
2023
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
1,400,000
-
Unpaid insurance brokers
142,354
142,644
Prepayments and accrued income
50,491
47,665
1,592,845
190,309
6
Creditors: amounts falling due within one year
31 October
31 March
2023
2023
£
£
Trade creditors
4,775
Corporation tax
138,276
138,276
Other creditors
361,603
285,387
504,654
423,663
IFM INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 OCTOBER 2023
7
7
Called up share capital
31 October
31 March
31 October
31 March
2023
2023
2023
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary shares of £1 each
278
278
278
278
B Ordinary shares of £1 each
15
15
15
15
293
293
293
293
The company has two classes of ordinary shares:
Class 'A' Ordinary shares have full voting rights, rights to dividend, rights to capital distribution (including on wind up) which are non-redeemable.
Class 'B' Ordinary shares have non-voting rights, rights to dividend, rights to capital distribution (including on wind up) which are non-redeemable.
8
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Steven Knowles FCA
Statutory Auditor:
Knowles Warwick Audit Services Limited
Date of audit report:
4 March 2024
9
Related party transactions
Advantage has been taken of the exemption conferred by Section 33 Related Party Disclosure not to disclose the transactions with fellow members of the group where 100% of the voting rights are controlled within the group.
10
Ultimate Parent Undertaking and Controlling Party
The company is a wholly owned subsidiary of Clear Group (Holdings) Limited.
The ultimate parent undertaking and largest group undertaking in which these financial statements are consolidated is Central Topco Limited.
Central Topco Ltd, a company registered in Jersey, was formed as part of the acquisition of the Clear Group. and is controlled by investment partnerships where Goldman Sachs & Co LLC is the investment manager. From 10 November 2022 Central Topco Ltd is the ultimate parent company of the Group. The investment partnerships where Goldman Sachs & Co LLC is the investment manager are the ultimate controlling party.
Clear Group (Holdings) Limited and Clear Investments (UK) Limited are incorporated in England and Wales have a registered office is 1 Great Tower Street, London EC3R 5AA. Central Topco Ltd has a registered office in Jersey, 22 Grenville Street, St. Helier, Jersey, JE4 8PX, from which copies of financial statements are available on request.