Evolve Brokers Ltd
Unaudited Financial Statements
For the year ended 31 December 2023
Pages for Filing with Registrar
Company Registration No. 09265181 (England and Wales)
Evolve Brokers Ltd
Company Information
Directors
K Luchman Jr
G Sheffield Jr
Company number
09265181
Registered office
6th Floor
9 Appold Street
London
EC2A 2AP
Accountants
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Evolve Brokers Ltd
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 7
Evolve Brokers Ltd
Balance Sheet
As at 31 December 2023
Page 1
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
4
45,040
46,441
Current assets
Debtors
6
1,426,105
4,212,255
Cash at bank and in hand
2,685,192
3,441,361
4,111,297
7,653,616
Creditors: amounts falling due within one year
7
(3,825,971)
(7,252,335)
Net current assets
285,326
401,281
Net assets
330,366
447,722
Capital and reserves
Called up share capital
8
10,000
10,000
Profit and loss reserves
320,366
437,722
Total equity
330,366
447,722

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 31 December 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.

The financial statements were approved by the board of directors and authorised for issue on 12 April 2024 and are signed on its behalf by:
K Luchman Jr
Director
Company Registration No. 09265181
EVOLVE BROKERS LTD
Evolve Brokers Ltd
NOTES TO THE FINANCIAL STATEMENTS
For the year ended 31 December 2023
Page 2
1
Accounting policies
Company information

Evolve Brokers Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, 9 Appold Street, London, EC2A 2AP. The business address is 107 Leadenhall Street, London, EC3A 4AF.

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 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, which are those of Evolve Brokers Ltd as an individual entity, have been prepared under the historical cost convention, modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The company made a loss in the year of £117,356 (2022: £24,202) and at the balance sheet date had net assets of £330,366 (2022: £447,722). At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for the services provided in the normal course of business.

 

Turnover represents brokerage fees due to the company and are recognised as income when our contractual undertakings to our clients have been met and the right to related income arises.

 

Alterations in brokerage arising from additional and return premiums and adjustments are taken to credit / debit in the year in which they are notified.

1.4
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.

1.5
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:

Fixtures, fittings & equipment
33% per annum on a straight line basis

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.

EVOLVE BROKERS LTD
Evolve Brokers Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 3
1.6
Fixed asset investments

Investments are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

1.7
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.

1.8
Debtors and creditors

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans and other debtors 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.

 

Creditors

Short term trade creditors and other current creditors payable on demand 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.

1.9
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.

1.10
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.

EVOLVE BROKERS LTD
Evolve Brokers Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 4
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.

1.11
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.

1.12
Retirement benefits

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

1.13
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.

1.14
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.

EVOLVE BROKERS LTD
Evolve Brokers Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 5
1.15

Insurance receivables and payables

The company acts as an insurance broker and is generally not liable for premiums due to underwriters or claims payable to clients.

Uncollected premiums from insureds and uncollected claims on refunds from insurers are recorded as insurance receivables on the company's Balance Sheet. In certain instances, the company advances premiums, refunds or claims to insurance underwriters or insureds prior to collection. Such advances are made from fiduciary funds and are reflected in the company's Balance Sheet as insurance receivables.

 

The obligations to remit these funds to insurers or insureds are recorded as insurance payables on the company's Balance Sheet. The period for which the company holds such funds is dependent upon the date funds are remitted to the company and the date the company is required to forward such payments to creditors.

 

The company holds cash balances relating to insurance broking third parties on trust which cannot be called upon on insolvency of the company. However, any interest generated on these cash balances is recognised and reflected as interest receivable and similar income as the company has the right to such interest in accordance with the terms of business agreed with clients.

2
Employees

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

2023
2022
Number
Number
Total
13
10
3
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 January 2023 and 31 December 2023
7,766
Depreciation and impairment
At 1 January 2023 and 31 December 2023
7,766
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
EVOLVE BROKERS LTD
Evolve Brokers Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2023
Page 6
4
Fixed asset investments
2023
2022
£
£
Loans
45,040
46,441
Movements in fixed asset investments
Loans
£
Cost or valuation
At 1 January 2023
46,441
Valuation changes
(1,401)
At 31 December 2023
45,040
Carrying amount
At 31 December 2023
45,040
At 31 December 2022
46,441
5
Cash at bank and in hand

Included within Cash at bank and in hand are cash balances of £2,523,681 (2022: £3,176,016) relating to insurance broking third parties on trust which are restricted as to their use and cannot be called upon on in the event of insolvency of the company.

6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,362,874
4,151,216
Corporation tax recoverable
6,106
-
0
Other debtors
32,412
41,343
Prepayments and accrued income
24,713
19,696
1,426,105
4,212,255

Included within Trade debtors are insurance receivables of £680,926 (2022: £3,761,056) relating to fiduciary funds; primarily insurance premiums and claims due to be collected from third parties.

EVOLVE BROKERS LTD
Evolve Brokers Ltd
NOTES TO THE FINANCIAL STATEMENTS (Continued)
For the year ended 31 December 2023
Page 7
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
3,771,683
7,161,597
Corporation tax
-
0
6,106
Other taxation and social security
38,611
60,704
Other creditors
-
1,272
Accruals and deferred income
15,677
22,656
3,825,971
7,252,335

Included within Trade creditors are insurance payables of £2,382,210 (2022: £6,538,340) relating to fiduciary balances; primarily insurance premiums and claims due to be settled on to third parties.

8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of £1 each
10,000
10,000
10,000
10,000
9
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
£
£
78,764
155,153
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