Company registration number 11864319 (England and Wales)
LITICA LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
LITICA LTD
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 7
LITICA LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2024
31 March 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
8,449
8,069
Tangible assets
4
119,302
115,413
Investments
5
21,499
60
149,250
123,542
Current assets
Debtors
6
4,982,890
2,330,582
Cash at bank and in hand
2,382,895
2,102,237
7,365,785
4,432,819
Creditors: amounts falling due within one year
7
(1,839,090)
(1,322,185)
Net current assets
5,526,695
3,110,634
Net assets
5,675,945
3,234,176
Capital and reserves
Called up share capital
8
75
75
Share premium account
99,989
99,989
Profit and loss reserves
5,575,881
3,134,112
Total equity
5,675,945
3,234,176

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 31 March 2024 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 16 August 2024 and are signed on its behalf by:
S Ruffle
S Bolster
Director
Director
Company registration number 11864319 (England and Wales)
LITICA LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
1
Accounting policies
Company information

Litica Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, 16 Eastcheap, London, EC3M 1BD. The trading address is 2nd Floor, 16 Eastcheap, London, EC3M 1BD.

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 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.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Revenue is comprised of commissions arising from the underwriting of "After the event" insurance policies. The company primarily receives three types of commissions:

 

1. Deposit commission, which are recognised upon inception of the insurance policy.

2. Staged commission, which are recognised upon a specified milestone in a legal trial being reached, and

3. Deferred and contingent commission ("D&C commission"), which are recognised once the legal outcome of a case is known.

 

With Staged and D&C commission, the rendering of services is substantially completed at the inception of the insurance policy, whereas the timing of the payment and amount to be received from the customer may not be known for a period of up to 5 years. As a result, the revenue is not recognised until the point in time at which the Company can identify the payment timing and amount for the services provided.

 

The Company also receives deferred deposit commission, which is payable by the customer at specified future dates greater than one year. Where there is a significant financing component in the contract, the future consideration is discounted to an amount to reflect the financing component of the contract. In discounting the future consideration, the Company takes into account the effect of both of the following:

 

1. The expected length of time between when the services are provided to the customer and the timing of payment; and

2. The prevailing interest rates in the relevant market.

 

The Company presents the effects of financing, being interest income, separately from the deposit commission in the Income Statement.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

LITICA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 3 -

Amortisation 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:

Software
20% straight line
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:

Leasehold improvements
Over the term of the lease
Computers
25% straight line
Motor vehicles
25% reducing balance

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.

The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively.

1.6
Fixed asset investments

Interests in subsidiaries 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.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

An impairment loss is recognised immediately in profit or loss.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. A reversal of an impairment loss is recognised immediately in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

LITICA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 4 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's statement of financial position 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.

Basic financial liabilities

Basic financial liabilities, including creditors, 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.

1.10
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.

1.11
Taxation

The tax expense represents the sum of the tax currently payable.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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.

1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

1.13
Retirement benefits

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

LITICA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 5 -
1.14
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.

2
Employees

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

2024
2023
Number
Number
Total
11
9
3
Intangible fixed assets
Other
£
Cost
At 1 April 2023
13,685
Additions
3,896
At 31 March 2024
17,581
Amortisation and impairment
At 1 April 2023
5,616
Amortisation charged for the year
3,516
At 31 March 2024
9,132
Carrying amount
At 31 March 2024
8,449
At 31 March 2023
8,069
LITICA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2023
7,179
151,991
159,170
Additions
3,016
38,617
41,633
Disposals
-
0
(4,836)
(4,836)
At 31 March 2024
10,195
185,772
195,967
Depreciation and impairment
At 1 April 2023
62
43,695
43,757
Depreciation charged in the year
2,171
35,573
37,744
Eliminated in respect of disposals
-
0
(4,836)
(4,836)
At 31 March 2024
2,233
74,432
76,665
Carrying amount
At 31 March 2024
7,962
111,340
119,302
At 31 March 2023
7,117
108,296
115,413
5
Fixed asset investments
2024
2023
£
£
Shares in group undertakings and participating interests
21,499
60
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
60
Additions
21,465
Valuation changes
(26)
At 31 March 2024
21,499
Carrying amount
At 31 March 2024
21,499
At 31 March 2023
60
LITICA LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,966,847
-
0
Amounts owed by group undertakings
-
0
645,118
Other debtors
2,016,043
1,685,464
4,982,890
2,330,582
7
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
150,583
-
0
Amounts owed to group undertakings
82,797
214,072
Taxation and social security
1,226,154
816,915
Other creditors
379,556
291,198
1,839,090
1,322,185
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of 1p each
3,200
3,200
32
32
Ordinary B shares of 1p each
3,200
3,200
32
32
Ordinary C shares of 1p each
1,131
1,131
11
11
7,531
7,531
75
75

The share classes rank pari passu in all respects save that different dividends may be declared on each class of share.

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:

2024
2023
£
£
333,427
454,673
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