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REGISTERED NUMBER: 08864405 (England and Wales)











Financial Statements

for the Year Ended 31 July 2023

for

Ark Insurance Group Limited

Ark Insurance Group Limited (Registered number: 08864405)






Contents of the Financial Statements
for the Year Ended 31 July 2023




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Ark Insurance Group Limited

Company Information
for the Year Ended 31 July 2023







DIRECTORS: R Gow
L Scannell
A Hollier
D Gilbert





REGISTERED OFFICE: Leofric House
Binley Road
Coventry
CV3 1JN





REGISTERED NUMBER: 08864405 (England and Wales)





AUDITORS: Leigh Christou Ltd
Chartered Certified Accountants and
Statutory Auditor
Leofric House
Binley Road
Coventry
CV3 1JN

Ark Insurance Group Limited (Registered number: 08864405)

Balance Sheet
31 July 2023

31.7.23 31.7.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 212,428 177,303
Tangible assets 5 57,300 69,851
269,728 247,154

CURRENT ASSETS
Debtors 6 2,346,605 1,877,068
Cash at bank 7 2,543,003 1,934,478
4,889,608 3,811,546
CREDITORS
Amounts falling due within one year 8 4,320,733 2,839,035
NET CURRENT ASSETS 568,875 972,511
TOTAL ASSETS LESS CURRENT
LIABILITIES

838,603

1,219,665

CREDITORS
Amounts falling due after more than one
year

9

(75,492

)

(123,364

)

PROVISIONS FOR LIABILITIES 13 (36,434 ) (18,409 )
NET ASSETS 726,677 1,077,892

CAPITAL AND RESERVES
Called up share capital 14 50,000 50,000
Retained earnings 15 676,677 1,027,892
SHAREHOLDERS' FUNDS 726,677 1,077,892

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Statement of Income and Retained Earnings has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 20 March 2024 and were signed on its behalf by:





R Gow - Director


Ark Insurance Group Limited (Registered number: 08864405)

Notes to the Financial Statements
for the Year Ended 31 July 2023

1. STATUTORY INFORMATION

Ark Insurance Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover comprises net retained earnings from brokerage commission and fees.

Income relating to insurance broking is recognised when the policy has been incepted, completed and confirmed.

Income from brokerage and fees on adjustment premiums, binding authorities and treaties are recognised on a periodic basis when the consideration due is confirmed by the third parties.

Other fees receivable are recognised in the period to which they relate or when they can be measured with reasonable certainty.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Development costs are being amortised evenly over their estimated useful life of five years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - Straight line over 4 years

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Income and Retained Earnings, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Ark Insurance Group Limited (Registered number: 08864405)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 20 (2022 - 16 ) .

4. INTANGIBLE FIXED ASSETS
Development
costs
£   
COST
At 1 August 2022 390,776
Additions 125,921
At 31 July 2023 516,697
AMORTISATION
At 1 August 2022 213,473
Amortisation for year 90,796
At 31 July 2023 304,269
NET BOOK VALUE
At 31 July 2023 212,428
At 31 July 2022 177,303

Ark Insurance Group Limited (Registered number: 08864405)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

5. TANGIBLE FIXED ASSETS
Fixtures
and Motor Computer
fittings vehicles equipment Totals
£    £    £    £   
COST
At 1 August 2022 - 91,306 25,455 116,761
Additions 7,543 - 1,399 8,942
At 31 July 2023 7,543 91,306 26,854 125,703
DEPRECIATION
At 1 August 2022 - 33,500 13,410 46,910
Charge for year 861 14,452 6,180 21,493
At 31 July 2023 861 47,952 19,590 68,403
NET BOOK VALUE
At 31 July 2023 6,682 43,354 7,264 57,300
At 31 July 2022 - 57,806 12,045 69,851

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 August 2022
and 31 July 2023 58,691
DEPRECIATION
At 1 August 2022 26,365
Charge for year 8,082
At 31 July 2023 34,447
NET BOOK VALUE
At 31 July 2023 24,244
At 31 July 2022 32,326

6. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.23 31.7.22
£    £   
Insurance debtors 1,735,294 1,554,277
Amounts owed by group undertakings 94,936 93,444
Other debtors 19,177 11,589
Unearned commission 456,286 175,485
Prepayments 40,912 42,273
2,346,605 1,877,068

Ark Insurance Group Limited (Registered number: 08864405)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

7. CASH AT BANK
31.7.23 31.7.22
£    £   
Cash and cash equivalents 794,877 877,522
Client bank account 1,748,126 1,056,956
2,543,003 1,934,478

The company holds restricted client account cash balances in respect of its insurance activities. This cash is held in client money bank accounts and cannot be used for the company's working capital purposes.

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.23 31.7.22
£    £   
Bank loans and overdrafts (see note 10) 33,599 33,145
Hire purchase contracts (see note 11) 11,054 12,048
Insurance creditors 3,174,591 2,468,915
Trade creditors 8,594 25,344
Amounts owed to group undertakings 39,454 27,473
Tax 122,733 51,687
Social security and other taxes 15,677 14,727
Other creditors 5,841 3,945
Unearned Commission 308,829 142,318
Accrued expenses 600,361 59,433
4,320,733 2,839,035

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.7.23 31.7.22
£    £   
Bank loans (see note 10) 75,492 112,310
Hire purchase contracts (see note 11) - 11,054
75,492 123,364

10. LOANS

An analysis of the maturity of loans is given below:

31.7.23 31.7.22
£    £   
Amounts falling due within one year or on demand:
Bank loans 33,599 33,145

Amounts falling due between one and two years:
Bank loans - 1-2 years 34,438 33,973

Amounts falling due between two and five years:
Bank loans - 2-5 years 41,054 78,337

Ark Insurance Group Limited (Registered number: 08864405)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

11. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.7.23 31.7.22
£    £   
Net obligations repayable:
Within one year 11,054 12,048
Between one and five years - 11,054
11,054 23,102

Non-cancellable operating leases
31.7.23 31.7.22
£    £   
Within one year - 24,772

12. SECURED DEBTS

The following secured debts are included within creditors:

31.7.23 31.7.22
£    £   
Bank loans 109,091 145,455
Hire purchase contracts 11,054 23,102
120,145 168,557

An unlimited debenture is in place in respect of the fixed and floating charge over the assets of the company, in respect of the bank loans.

13. PROVISIONS FOR LIABILITIES
31.7.23 31.7.22
£    £   
Deferred tax
Accelerated capital allowances 30,621 18,409
Other timing differences 5,813 -
36,434 18,409

Deferred
tax
£   
Balance at 1 August 2022 18,409
Charge to Statement of Income and Retained Earnings during year 18,025
Balance at 31 July 2023 36,434

Ark Insurance Group Limited (Registered number: 08864405)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.7.23 31.7.22
value: £    £   
50,000 Ordinary £1 50,000 50,000

15. RESERVES
Retained
earnings
£   

At 1 August 2022 1,027,892
Profit for the year 504,687
Dividends (855,902 )
At 31 July 2023 676,677

16. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

C A Christou FCCA MAE (Senior Statutory Auditor)
for and on behalf of Leigh Christou Ltd

17. CAPITAL COMMITMENTS
31.7.23 31.7.22
£    £   
Contracted but not provided for in the
financial statements 36,000 -

18. RELATED PARTY DISCLOSURES

In accordance with FRS 102 Section 1A, the company only discloses transactions with related parties, including group companies, where they are not undertaken under normal market conditions.

19. AUDITOR LIABILITY LIMITATION AGREEMENT

Auditors liability is limited to a maximum of twenty five times the fee relating to the audit engagement.

The directors approved the agreement on 14 July 2023.

20. POST BALANCE SHEET EVENTS

In December 2023, the company settled the outstanding liability related to a profit commission calculation dispute with an insurer, as disclosed within note. 5, exceptional items.

21. ULTIMATE CONTROLLING PARTY

The company was controlled throughout the period by R Gow by virtue of her shareholding in the issued ordinary share capital of the ultimate parent company, ITUS Group Limited.

The registered office of ITUS Group Limited is Leofric House, Binley Road, Coventry, West Midlands, England, CV3 1JN.

Ark Insurance Group Limited (Registered number: 08864405)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2023

22. INSURANCE BALANCES

Insurance brokers normally act as agents in placing the insurable risks of their clients with insurers and, as such, generally are not liable for amounts arising from such transactions. Notwithstanding the legal relationships with clients and insurers, insurance brokers are entitled to retain investment income on any cashflows arising from insurance broking transactions.

It is considered that insurance receivables in respect of premiums and claims do not represent an asset of the company and should therefore not be recognised until the cash is received. Accordingly, the balance sheet reflects only insurance trust cash, with the corresponding payable included as a liability.

In certain circumstances, with approval at a senior level, the company may advance premiums to insurers and refunds or claims to clients prior to collection and these advances are also reflected as part of insurance broking receivables. Net insurance balances set out below therefore represent such advances made, together with fees and commissions earned on insurance transactions and either uncollected or not withdrawn from insurance trust bank accounts at the balance sheet date.

2023 2022
£    £   
Insurance broking receivables 1,735,294 1,554,277
Insurance trust accounts 1,748,126 1,056,956
Insurance broking payable (3,483,420 ) (2,611,233 )

NIL NIL