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Source Insurance Limited

Strategic Report, Report of the Directors and

Audited Financial Statements for the Year Ended 31 December 2023






Source Insurance Limited

Company Information
for the Year Ended 31 December 2023







DIRECTORS: A A Masters
M T Guest
J Pinkerton



REGISTERED OFFICE: Floor 2, Wing A
Global Reach
Dunleavy Drive
Penarth
CF11 0SN



REGISTERED NUMBER: 02864963 (England and Wales)



AUDITORS: BPU Limited
Chartered Accountants
Statutory Auditor
Radnor House
Greenwood Close
Cardiff Gate Business Park
Cardiff
CF23 8AA



BANKERS: Barclays
3rd Floor
Windsor Court
3 Windsor Place
Cardiff
CF10 3BX

Source Insurance Limited (Registered number: 02864963)

Strategic Report
for the Year Ended 31 December 2023


The directors present their strategic report along with the audited financial statements for the year ended 31 December 2023 for Source Insurance Limited ("the Company"). The strategic report provides a review of the business for the financial year, setting out some of the key performance indicators and describes how the directors manage risks and discusses the main trends and factors that could affect the future.

PRINCIPAL ACTIVITIES AND BUSINESS REVIEW

The principal activity of the Company is the provision of general insurance products and technical solutions, distributed through mortgage brokers and networks.

The results for Source Insurance Limited "the Company" show a profit before tax of £1,315,521 (2022: £1,941,386) for the year and turnover of £12,729,253 (2022: £12,674,186). At year end the Company had net assets of £5,306,433 (2022: £4,800,133).

BUSINESS STRATEGY AND OBJECTIVES

Our company's primary goal is to provide world-class service to our customers. To achieve this, significant investments have been made in our technology to enhance the customer experience for both brokers and policyholders.

We maintain strong relationships with our panel of underwriting insurers, allowing us to offer a wide range of high-quality insurance products that provide value for money to our customers. Our business model is centred around the customer, and we remain committed to high-quality products offering value to the policyholder.

To support our customers, we continue to develop clear and concise customer documentation, intuitive online customer portals, and a comprehensive training program for brokers. We are constantly seeking new ways to improve our online services and reduce paper usage, both within our business and for our customers, as part of our commitment to sustainability.

Overall, our strategy is to maintain a customer-focused approach, provide high-quality products, and continue to invest in technology to improve the customer journey. We believe that this approach will help us achieve our long-term objectives and ensure the continued success of our business.

PRINCIPAL RISKS AND UNCERTAINTIES

The board and senior management team have a detailed strategy for the identification, mitigation, management and removal of risk. The company maintains a comprehensive risk register which is reviewed monthly. Risk management is discussed at senior management meetings, and all necessary actions are taken to ensure the company actively manages each and every risk to the business.







Source Insurance Limited (Registered number: 02864963)

Strategic Report
for the Year Ended 31 December 2023




Financial Risk

The Company's earnings are underpinned by insurance commissions from renewal of policies, as well as the addition of new business. The Company concentrates on the provision of a wide choice of insurance covers to enable policyholders to transact insurance business and remain loyal customers. There are however risks of changes to the competitive and economic environment. Cash management and forecasting is embedded within the finance function as a core control and periodically reviewed by senior management.

Operational Risk

There is a risk that the Company will encounter internal or external system failures. The Company continues to invest in its technology, upgrading systems and moving to a cloud based model to manage risks and improve service delivery. External specialist resources are utilised where appropriate, in areas such as penetration testing to ensure controls are adequate.

Regulatory and Compliance Risk

The Company is regulated by the Financial Conduct Authority ("FCA"), as such compliance is at the heart of the business. The Company has always demonstrated strong compliance with regulatory standards, with risk mitigation including regular insurer audits. The Company has an experienced compliance function, and provides comprehensive training and call quality monitoring of each customer facing employee.

Underwriting Capacity Risk

There is a risk that an insurer could withdraw products or change risk appetite impacting our ability to offer products to new and renewing customers. This risk is mitigated by the Company working closely with a number of insurance companies to ensure a wide and deep coverage footprint reducing dependency on a single underwriter.

KEY PERFORMANCE INDICATORS (KPI)

The company have a number of KPIs to which everything is measured. The main Financial KPIs are detailed below.

KPIs year ended 31 December 2023:

Turnover - £12.7m (2022: £12.7m)

Operating Profit - £1.2m (2022: £1.9m)

FUTURE DEVELOPMENTS


Source Insurance Limited (Registered number: 02864963)

Strategic Report
for the Year Ended 31 December 2023

As we look to the future, our company remains focused on delivering a best-in-class general insurance proposition. We are committed to providing our customers with an exceptional experience and will continue to make improvements to our online portals and consumer documentation to ensure that our customers have access to the information and services they need, when they need them.

In addition, we are exploring new opportunities to enhance our product offerings, expand our distribution channels, and deepen our relationships with underwriting insurers. We believe that by remaining customer-focused and staying at the forefront of technological innovation, we can continue to deliver value to our customers and drive sustainable growth for our business.

We are excited about the opportunities ahead and remain committed to investing in our people, processes, and technology to achieve our long-term objectives. By staying true to our core values and leveraging our strengths, we are confident that we can build a successful and sustainable business that delivers value to all stakeholders.

THIS REPORT WAS APPROVED BY THE BOARD:





J Pinkerton - Director


25 July 2024

Source Insurance Limited (Registered number: 02864963)

Report of the Directors
for the Year Ended 31 December 2023


The directors present their report with the financial statements of the company for the year ended 31 December 2023.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 was £500,000 (2022 - £800,000).

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

A A Masters
M T Guest
J Pinkerton

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Source Insurance Limited (Registered number: 02864963)

Report of the Directors
for the Year Ended 31 December 2023


STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

THIS REPORT WAS APPROVED BY THE BOARD:





J Pinkerton - Director


25 July 2024

Report of the Independent Auditors to the Members of
Source Insurance Limited


Opinion
We have audited the financial statements of Source Insurance Limited (the 'company') for the year ended 31 December 2023 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Report of the Independent Auditors to the Members of
Source Insurance Limited


Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page five, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
Source Insurance Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risks of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment.

The laws and regulations that we determined were most significant to the company were the Companies Act 2006, UK corporate tax laws, regulation of The Financial Conduct Authority, Employment law, Data Protection Act, Health and Safety at Work Act and Consumer Credit Act.

We obtained an understanding of how the company is complying with those laws and regulations by making enquiries to the management, and corroborated these enquiries through our review of board minutes and review of legal and professional spend for the year.

We assessed the susceptibility of the companys financial statements to material misstatement, including how fraud might occur, and did not identify any key audit matters relating to irregularities, including fraud. We assessed the effectiveness of internal controls that management has in place to prevent and detect fraud, including testing of manual journals and evaluating the assumptions and judgements made by management in its significant accounting estimates.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
Source Insurance Limited


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




John Huw Palin FCA (Senior Statutory Auditor)
for and on behalf of BPU Limited
Chartered Accountants
Statutory Auditor

26 July 2024

Source Insurance Limited (Registered number: 02864963)

Profit and Loss Account
for the Year Ended 31 December 2023

2023 2022
Notes £    £   

TURNOVER 12,729,253 12,674,186

Cost of sales (5,612,406 ) (5,457,843 )
GROSS PROFIT 7,116,847 7,216,343

Administrative expenses (5,914,036 ) (5,309,279 )
OPERATING PROFIT 3 1,202,811 1,907,064

Interest receivable & similar income 112,710 34,322
PROFIT BEFORE TAXATION 1,315,521 1,941,386

Tax on profit 4 (309,221 ) (370,217 )
PROFIT FOR THE FINANCIAL YEAR 1,006,300 1,571,169

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,006,300

1,571,169

Source Insurance Limited (Registered number: 02864963)

Balance Sheet
31 December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 7 43,520 75,872
Tangible assets 8 278,281 350,279
321,801 426,151

CURRENT ASSETS
Debtors 9 14,379,201 14,383,202
Cash at bank 1,187,020 2,709,231
15,566,221 17,092,433
CREDITORS
Amounts falling due within one year 10 10,520,589 12,633,451
NET CURRENT ASSETS 5,045,632 4,458,982
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,367,433

4,885,133

PROVISIONS FOR LIABILITIES 13 61,000 85,000
NET ASSETS 5,306,433 4,800,133

CAPITAL AND RESERVES
Called up share capital 14 2,000 2,000
Retained earnings 15 5,304,433 4,798,133
SHAREHOLDERS' FUNDS 5,306,433 4,800,133

The financial statements were approved by the Board of Directors and authorised for issue on 25 July 2024 and were signed on its behalf by:





J Pinkerton - Director


Source Insurance Limited (Registered number: 02864963)

Statement of Changes in Equity
for the Year Ended 31 December 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 2,000 4,026,964 4,028,964

Changes in equity
Dividends - (800,000 ) (800,000 )
Total comprehensive income - 1,571,169 1,571,169
Balance at 31 December 2022 2,000 4,798,133 4,800,133

Changes in equity
Dividends - (500,000 ) (500,000 )
Total comprehensive income - 1,006,300 1,006,300
Balance at 31 December 2023 2,000 5,304,433 5,306,433

Source Insurance Limited (Registered number: 02864963)

Cash Flow Statement
for the Year Ended 31 December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (549,888 ) 2,305,874
Tax paid (581,282 ) (237,809 )
Net cash from operating activities (1,131,170 ) 2,068,065

Cash flows from investing activities
Purchase of intangible fixed assets - (97,054 )
Purchase of tangible fixed assets (3,751 ) (1,956 )
Interest received 112,710 34,322
Net cash from investing activities 108,959 (64,688 )

Cash flows from financing activities
Capital repayments in year - (8,883 )
Equity dividends paid (500,000 ) (800,000 )
Net cash from financing activities (500,000 ) (808,883 )

(Decrease)/increase in cash and cash equivalents (1,522,211 ) 1,194,494
Cash and cash equivalents at
beginning of year

2

2,709,231

1,514,737

Cash and cash equivalents at end
of year

2

1,187,020

2,709,231

Source Insurance Limited (Registered number: 02864963)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 1,315,521 1,941,386
Depreciation charges 75,750 88,550
Loss on disposal of fixed assets - 922
Amortisation charges 32,351 21,182
Finance income (112,710 ) (34,322 )
1,310,912 2,017,718
Decrease in trade and other debtors 4,001 32,555
(Decrease)/increase in trade and other creditors (1,864,801 ) 255,601
Cash generated from operations (549,888 ) 2,305,874

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 1,187,020 2,709,231
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 2,709,231 1,514,737


Source Insurance Limited (Registered number: 02864963)

Notes to the Cash Flow Statement
for the Year Ended 31 December 2023


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank 2,709,231 (1,522,211 ) 1,187,020
2,709,231 (1,522,211 ) 1,187,020
Total 2,709,231 (1,522,211 ) 1,187,020

Source Insurance Limited (Registered number: 02864963)

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


1. 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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover represents brokerage income from the sale of insurance policies, and interest income received from the provision of finance to fund the purchase of insurance policies. Brokerage income is recognised upon inception of the corresponding insurance policy. Interest income is recognised over the repayment period of the finance provided, and represents a constant proportion of the balance of repayments outstanding.

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.

Other intangible assets are being amortised evenly over their estimated useful life of three years.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 14% straight line
Fixtures and fittings - 10% straight line
Computer equipment - at rates varying between 10% and 33.33%

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, 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.


Source Insurance Limited (Registered number: 02864963)

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


1. 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.

Pension costs
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 balances
The company acts as an insurance intermediary and is not liable for premiums due to underwriters or for claims payable to clients. Notwithstanding this legal relationship with clients and underwriters, the company follows generally accepted accounting practice by showing debtors, cash and creditors relating to insurance business as assets and liabilities of the company itself. The company receives premiums and premium refunds under risk transfer agreements with underwriters.

Hire purchase and leasing commitments
Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet and depreciated over their useful lives.

The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding.

Rentals paid under operating leases are charged to income on a straight line basis over the lease term.

2. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 3,575,570 3,337,797
Social security costs 421,254 381,157
Other pension costs 86,570 90,001
4,083,394 3,808,955

Source Insurance Limited (Registered number: 02864963)

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


2. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022

Employees 67 70

2023 2022
£    £   
Directors' remuneration 1,142,503 563,441

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 731,455 323,280

The directors consider that there are no key management personnel within the company other than themselves.

3. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Depreciation - owned assets 75,749 88,550
Loss on disposal of fixed assets - 922
Computer software amortisation 32,352 21,182
Audit fees 11,796 13,469
Auditors' remuneration for non audit work 1,200 900
Rent 116,510 116,837

Source Insurance Limited (Registered number: 02864963)

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


4. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 333,221 370,217

Deferred tax (24,000 ) -
Tax on profit 309,221 370,217

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,315,521 1,941,386
Profit multiplied by the standard rate of corporation tax in the
UK of 23.521% (2022 - 19%)

309,424

368,863

Effects of:
Expenses not deductible for tax purposes 122 319
Depreciation in excess of capital allowances 23,520 1,035
Deferred tax (24,000 ) -
Charge in relation to prior year 155 -
Total tax charge 309,221 370,217

5. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Paid 500,000 800,000

Source Insurance Limited (Registered number: 02864963)

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


6. INTEREST PAYABLE AND SIMILAR EXPENSES

2023 2022
£ £
Interest payable on finance facility 387,331 273,899
387,331 273,899

Interest payable is included within cost of sales.

7. INTANGIBLE FIXED ASSETS
Other
intangible Computer
assets software Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 67,167 97,054 164,221
AMORTISATION
At 1 January 2023 67,167 21,182 88,349
Amortisation for year - 32,352 32,352
At 31 December 2023 67,167 53,534 120,701
NET BOOK VALUE
At 31 December 2023 - 43,520 43,520
At 31 December 2022 - 75,872 75,872

Source Insurance Limited (Registered number: 02864963)

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


8. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Computer
machinery fittings equipment Totals
£    £    £    £   
COST
At 1 January 2023 80,679 378,910 347,924 807,513
Additions - - 3,751 3,751
At 31 December 2023 80,679 378,910 351,675 811,264
DEPRECIATION
At 1 January 2023 37,459 122,630 297,145 457,234
Charge for year 11,525 37,891 26,333 75,749
At 31 December 2023 48,984 160,521 323,478 532,983
NET BOOK VALUE
At 31 December 2023 31,695 218,389 28,197 278,281
At 31 December 2022 43,220 256,280 50,779 350,279

9. DEBTORS
2023 2022
£    £   
Amounts falling due within one year:
Trade debtors 12,550,963 12,575,064
Other debtors 473,003 558,705
Prepayments & accrued income 145,235 149,433
13,169,201 13,283,202

Amounts falling due after more than one year:
Other debtors 1,210,000 1,100,000

Aggregate amounts 14,379,201 14,383,202

Source Insurance Limited (Registered number: 02864963)

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


10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade creditors 4,934,501 4,820,799
Corporation tax 122,156 370,217
Social security and other taxes 131,778 73,797
Other creditors & accruals 5,332,154 7,368,638
10,520,589 12,633,451

11. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2023 2022
£    £   
Within one year 119,629 119,910
Between one and five years 466,139 469,230
In more than five years 29,135 145,670
614,903 734,810

12. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Receivables Finance Facility 4,028,505 6,042,037

The receivables finance facility is secured by a fixed and floating charge over the assets of the company.

The hire purchase contract is secured over the assets to which it relates.

13. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 61,000 85,000

Source Insurance Limited (Registered number: 02864963)

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


13. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 January 2023 85,000
Credit to Profit and Loss Account during year (24,000 )
Balance at 31 December 2023 61,000

14. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
2,000 Ordinary £1 2,000 2,000

15. RESERVES
Retained
earnings
£   

At 1 January 2023 4,798,133
Profit for the year 1,006,300
Dividends (500,000 )
At 31 December 2023 5,304,433

Source Insurance Limited (Registered number: 02864963)

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


16. RELATED PARTY DISCLOSURES

a) Related parties

(i) Common directorship/ownership:-
Protect Commercial Insurance Solutions Limited
Red Apple Finance Limited


b) Loans between related parties Debtor/
Received Paid Written off (creditor )
in year in year in year at year end
£    £    £    £   
2023
Red Apple Finance Limited (3,307 ) 27,569 - 1,572,893
Protect Commercial Insurance
Solutions Limited

(1,196

)

1,231

-

109
2022
Red Apple Finance Limited (15,180 ) 98,495 - 1,548,631
Protect Commercial Insurance
Solutions Limited

(927

)

927

-

74


17. ULTIMATE CONTROLLING PARTY

The controlling party is A A Masters.