REGISTERED NUMBER: |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2023 |
FOR |
ST&R LIMITED |
REGISTERED NUMBER: |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2023 |
FOR |
ST&R LIMITED |
ST&R LIMITED (REGISTERED NUMBER: 07967035) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 30 April 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
ST&R LIMITED |
COMPANY INFORMATION |
for the Year Ended 30 April 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
120-124 Towngate |
Leyland |
Lancashire |
PR25 2LQ |
ST&R LIMITED (REGISTERED NUMBER: 07967035) |
BALANCE SHEET |
30 April 2023 |
2023 | 2022 |
(Unaudited) |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Debtors | 6 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 7 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
8 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 10 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 11 |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
ST&R LIMITED (REGISTERED NUMBER: 07967035) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 30 April 2023 |
1. | STATUTORY INFORMATION |
ST&R Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
BASIS OF PREPARING THE FINANCIAL STATEMENTS |
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. |
SIGNIFICANT JUDGEMENTS AND ESTIMATES |
Significant judgements and estimates made by management in preparing these financial statements include: |
- Depreciation of tangible assets |
- Amortisation of intangible assets |
- Calculation of Accrued Income |
- Clawbacks of insurance policies |
TURNOVER |
Turnover represents commissions receivable after deducting the expected future clawbacks, when the company obtains the right to consideration. |
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. |
TANGIBLE FIXED ASSETS |
Depreciation is provided on tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows. |
Fixtures and Fittings - 20% on cost |
Motor Vehicles - 20% on cost |
Computer Equipment - 33% on cost |
Tangible fixed assets are stated at deemed cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
ST&R LIMITED (REGISTERED NUMBER: 07967035) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
FINANCIAL INSTRUMENTS |
Debtors and creditors receivable / payable within one year |
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. |
Loans and borrowings |
Loans and borrowings are initially recognised at the transaction price including transaction costs. |
Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value. |
TAXATION |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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. |
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. |
ST&R LIMITED (REGISTERED NUMBER: 07967035) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
2. | ACCOUNTING POLICIES - continued |
PROVISIONS |
The company recognises provisions within the financial statements relating to the following: |
Long Service Award |
The Directors wish to acknowledge members of staff with a minimum 5 years service, and as such, a provision has been created to be paid at the discretion of the Directors to reward these employees. |
Provision for clawback |
This is a provision that has been calculated within the financial statements using historic cancellation rates to estimate the total cost of policies that will be cancelled and commissions due back to customers. The calculation looks at the age of policies when cancelled and divides the monetary value by the total sales of that age. This data model is continuously updated as more data becomes available. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | INTANGIBLE FIXED ASSETS |
Branding | Website |
costs | Costs | Totals |
£ | £ | £ |
COST |
At 1 May 2022 |
and 30 April 2023 |
AMORTISATION |
At 1 May 2022 |
Amortisation for year |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
ST&R LIMITED (REGISTERED NUMBER: 07967035) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
5. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 May 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 April 2023 |
DEPRECIATION |
At 1 May 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
At 30 April 2022 |
Fixed assets, included in the above, which are held under finance leases are as follows: |
Motor |
vehicles |
£ |
COST |
Additions |
At 30 April 2023 |
DEPRECIATION |
Charge for year |
At 30 April 2023 |
NET BOOK VALUE |
At 30 April 2023 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
(Unaudited) |
£ | £ |
Amounts owed by group undertakings |
Other debtors |
Directors' current accounts | 1,115,206 | 1,013,408 |
Prepayments and accrued income |
ST&R LIMITED (REGISTERED NUMBER: 07967035) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
(Unaudited) |
£ | £ |
Other loans |
Finance leases |
Trade creditors |
Corporation tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
(Unaudited) |
£ | £ |
Other loans - 1-2 years | 1,022,262 |
Other loans - 2-5 years | 233,371 |
Finance leases |
9. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
(Unaudited) |
£ | £ |
Other loans |
Hire Purchase / Finance Leases | 158,446 | - |
Other loans are secured by fixed and floating charges over all the property and undertakings of the company by Triple Point Advancr Leasing PLC. This loan has a maximum facility of up to £6,000,000. Within this loan, there are covenants relating to a number of economic benchmarks and restrictions within the company. Should a covenant be breached, the lenders require repayment in full due immediately. In the year, the covenant was breached by way of Directors drawings however the lenders have acknowledged this and provided a waiver of any breaches for the period ending April 2023. Hire purchase and finance lease obligations are secured upon the assets to which the finance relates. |
10. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
(Unaudited) |
£ | £ |
Deferred tax | 47,010 | 6,169 |
ST&R LIMITED (REGISTERED NUMBER: 07967035) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
2023 | 2022 |
(Unaudited) |
£ | £ |
Other provisions |
Long Service Award | 143,000 | - |
Provision for clawback | 1,781,392 | 1,750,000 |
1,924,392 | 1,750,000 |
Aggregate amounts | 1,971,402 | 1,756,169 |
Deferred |
tax |
£ |
Balance at 1 May 2022 |
Accelerated capital allowances | 40,841 |
Balance at 30 April 2023 |
11. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary A shares | £1 | 51 | 51 |
Ordinary B shares | £1 | 25 | 25 |
Ordinary C shares | £1 | 49 | 49 |
125 | 125 |
12. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
13. | CONTINGENT LIABILITIES |
The company has a contingent liability relating to a HMRC determination relating to a past pension arrangement scheme that was operated. The net effect of this is approximately £177,950 that will need to be paid to HMRC and reduce profits, should HMRC uphold this decision. At this point, it is uncertain on whether the current appeal against this determination will be successful or at what point in time this will be confirmed. |
ST&R LIMITED (REGISTERED NUMBER: 07967035) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 30 April 2023 |
14. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - INTEREST FREE |
The following advances and credits to directors subsisted during the years ended 30 April 2023 and 30 April 2022: |
2023 | 2022 |
(Unaudited) |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Personal guarantees have been given by Mr J Slater to L&G, Prudential, Aviva and Ageas for claw backs if the company is wound up. |
15. | POST BALANCE SHEET EVENTS |
After the year end, the secured debt agreement with Triple Point Advancr Leasing PLC was renewed, increasing the facility up to a maximum of £7,100,000. |
16. | ULTIMATE CONTROLLING PARTY |
The controlling party is the parent company, JST Group Ltd. |
Registered office; Lingmell House, Water Street, Chorley, Lancashire, PR7 1EE |
Group accounts have not been prepared by the parent company, being a small group. |
17. | CHANGE IN ACCOUNTING ESTIMATE |
Within the period, the business changed the accounting estimate on how the clawback provision and accrued income is calculated. Recognition of the income will remain the same, however a different model is used to calculate the allowance of expected commission income that may be clawed back over the four year life of an insurance policy sold. The change in accounting estimate has been made as the data model continues to be developed with the availability of new data, giving rise to the change in estimate which the directors feel is more prudent. The adjustments result in a reduction in turnover of £4,315,494. This is made up of a reduction in accrued income relating to Non-Indemnity policies of £4,267,037 and an increase in the provision for clawback of Indemnity policies of £48,457. |