REGISTERED NUMBER: |
Unaudited Financial Statements for the Year Ended 31 December 2023 |
for |
The Fiducia MGA Company Limited |
REGISTERED NUMBER: |
Unaudited Financial Statements for the Year Ended 31 December 2023 |
for |
The Fiducia MGA Company Limited |
The Fiducia MGA Company Limited (Registered number: 09913313) |
Contents of the Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Balance Sheet | 1 |
Notes to the Financial Statements | 3 |
Chartered Certified Accountants' Report | 8 |
The Fiducia MGA Company Limited (Registered number: 09913313) |
Balance Sheet |
31 December 2023 |
31.12.23 | 31.12.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 4 |
Investments | 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 | ( | ) | ( | ) |
SUBORDINATED LOAN | 11 | ( | ) |
NET ASSETS/(LIABILITIES) | ( | ) |
CAPITAL AND RESERVES |
Called up share capital |
Share premium |
Retained earnings | ( | ) | ( | ) |
SHAREHOLDERS' FUNDS | ( | ) |
The directors acknowledge their responsibilities for: |
(a) | ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and |
(b) | preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company. |
The Fiducia MGA Company Limited (Registered number: 09913313) |
Balance Sheet - continued |
31 December 2023 |
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 |
The Fiducia MGA Company Limited (Registered number: 09913313) |
Notes to the Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
The Fiducia MGA Company Limited is a |
Registered number: |
Registered office: |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
The company has not applied any significant judgements or estimates which could have a significant effect on the amounts recognised in its financial statements. |
Turnover and revenue recognition |
General commission: |
The company is vested with underwriting authority from both Lloyd's market insurers and Insurance Companies and the company's turnover represents the company's right to receive commission from both Lloyd's market insurers from insurable risks placed with those market insurers under either a binding authority or a line slip. |
The company obtains the right to receive general commission from both Lloyd's market insurers and Insurance Companies at an agreed percentile rate of the gross/net premium written on the inception date of the policy and therefore recognizes income at the point at which the insurance product goes on risk. |
Profit commission: |
The company writes business with both Lloyd's market insurers and Insurance Companies under binding authorities or line slips for an agreed underwriting year of account. |
The company accrues the right, under the binding agreements in place, to receive a share of the net underwriting profits of the insurers for an underwriting year of account ("Profit commission") which is calculated based on the performance of the book of business so written under the binding agreement (net premium less claims incurred).The profit commission earned is due for payment 13 months following the end of the underwriting year of account to which it relates. |
There is considerable estimation uncertainty in relation to the company recognizing this income stream and the corresponding financial asset. The profit commission, whilst based on the net premium underwritten (which is known) is contingent upon (a) the final loss ratio for the book of business which cannot be determined until at least 12 months following the end of the underwriting year, and (b) the level of agreed underwriters expenses and costs. Profit commission generally therefore cannot be reliably measured. |
The company discloses in its financial statements details of this contingent asset (where material), and recognizes profit commission as income and a financial asset only when receipt of such in the following accounting period becomes virtually certain. |
The Fiducia MGA Company Limited (Registered number: 09913313) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Fixtures and fittings | - |
Computer equipment | - |
Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses. |
At each balance sheet date the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss. |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets that are held by the company under leases which transfer to the company substantially all the risks and rewards of ownership are classified as being held under finance leases. Leases which do not transfer substantially all the risks and rewards of ownership to the company are classified as operating leases. |
Assets held under finance leases are initially recognised as assets of the company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest. Finance expenses are recognised immediately in the profit and loss. |
Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
The Fiducia MGA Company Limited (Registered number: 09913313) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
2. | ACCOUNTING POLICIES - continued |
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. |
Insurance contracts |
Client money bank accounts: |
An insurance intermediary has sufficient interest in the risks and rewards associated with monies held on trust and therefore such assets held by the company meet the recognition criteria for an asset under FRS 102. |
Insurance debtors: |
Generally debtors represent general commission and profit share commission receivable as there exists a contractual right to receive such commission from the insurer. |
Premium debt net of commission is not recognised in the company's financial statements as in general there exists no contractual right to receive the net premium as intermediaries act in the capacity of agent between the insured and the insurer. The exception to this is where the insurance contract is governed by the Marine Insurance Act 1906, in which case the premium debt net of commission is recognised. |
Insurance creditors: |
A financial liability to the insurer is recognised in the financial statements to the extent that it represents (a) funded premium held in client money bank accounts net of the commission due to the company and (b) the net premium due from brokers under insurance contracts governed by the Marine Insurance Act 1906. |
Employee benefits |
Short term employee benefits such as the entitlement to holiday pay are recognised as an expense in the period in which they are accrued. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | TANGIBLE FIXED ASSETS |
Fixtures |
and | Computer |
fittings | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Disposals | ( | ) | ( | ) | ( | ) |
At 31 December 2023 |
DEPRECIATION |
At 1 January 2023 |
Charge for year |
Eliminated on disposal | ( | ) | ( | ) | ( | ) |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
The Fiducia MGA Company Limited (Registered number: 09913313) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
5. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2023 |
and 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade debtors |
Profit commission | 334,298 | 968,957 |
Other debtors |
Deferred tax asset |
Prepayments |
The deferred tax asset recognised represents the extent to which unrelieved tax losses are expected to reverse in the next three accounting periods. The company expects the remaining deferred tax asset to wholly reverse in 2024. |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Trade creditors |
Taxation and social security |
Other creditors |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.23 | 31.12.22 |
£ | £ |
Other creditors |
9. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Other loans |
The Fiducia MGA Company Limited (Registered number: 09913313) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2023 |
9. | LOANS - continued |
31.12.23 | 31.12.22 |
£ | £ |
Amounts falling due between two and five years: |
Other loans - 2-5 years |
The company entered into an agreement with its provider of loan finance on 5 February 2020. The quantum and timing of future repayments of loan debt are contingent upon the company's reported annual profit after tax. Quarterly loan repayments commenced in September 2021, with the final repayment date for the borrowings scheduled for no later than June 2026. |
The amount repayable within 12 months of the balance sheet date is known with certainty as this is derived from the reported profits in both 2022 and 2023. In addition the final repayment date is no later than June 2026 and therefore the remaining debt falls due for payment in 2 to 5 years. |
10. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.12.23 | 31.12.22 |
£ | £ |
Other loans |
The loan to the company is secured by way of a debenture in favour of the lender incorporating a fixed and floating charge over all of the assets of the company. |
Hire purchase liabilities are secured against the assets to which they relate. |
11. | SUBORDINATED LOAN |
|
12. | SUBSEQUENT EVENTS |
Profit commission |
Where profit commissions, which had accrued at the financial reporting date, have been received in the post balance sheet period or where the quantum of the profit commission is now known with reasonable certainty, and the inflow of economic benefits is virtually certain then these have been recognised as assets at the financial reporting date [see note: Debtors]. |
13. | CONTINGENT ASSET |
Contingent assets at the reporting period end represent probable inflows of economic benefits in respect of profit sharing arrangements in relation to its underwriting activities. Such contingent assets are considered to be probable on the 12 month anniversary of the inception date of the binding authority under which such profit sharing arrangements accrue. The expected quantum of the inflow of economic benefits is contingent upon the future underwriting outgoings of the underwriter, in particular the quantum of incurred claims. |
The company's best estimate of the expected inflow of economic benefits, on binding authority periods where at the financial reporting date, 12 months have elapsed from binder inception, and based on the most probable claims loss ratio, is £572,106 [2022: £842,544]. |
Chartered Certified Accountants' Report to the Board of Directors |
on the Unaudited Financial Statements of |
The Fiducia MGA Company Limited |
The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies. |
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of The Fiducia MGA Company Limited for the year ended 31 December 2023 which comprise the Income Statement, Balance Sheet and the related notes from the company's accounting records and from information and explanations you have given us. |
As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/rulebook. |
This report is made solely to the Board of Directors of The Fiducia MGA Company Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of The Fiducia MGA Company Limited and state those matters that we have agreed to state to the Board of Directors of The Fiducia MGA Company Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/factsheet163. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report. |
It is your duty to ensure that The Fiducia MGA Company Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of The Fiducia MGA Company Limited. You consider that The Fiducia MGA Company Limited is exempt from the statutory audit requirement for the year. |
We have not been instructed to carry out an audit or a review of the financial statements of The Fiducia MGA Company Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements. |
Chartered Certified Accountants |
55 Fountain Street |
Morley |
Leeds |
West Yorkshire |
LS27 0AA |