Company registration number SC222279 (Scotland)
EDINBURGH RISK MANAGEMENT (GENERAL) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
PAGES FOR FILING WITH REGISTRAR
EDINBURGH RISK MANAGEMENT (GENERAL) LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
EDINBURGH RISK MANAGEMENT (GENERAL) LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2023
30 November 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
3
60,635
133,397
Tangible assets
4
258,340
141,893
Investments
5
3,500
3,500
322,475
278,790
Current assets
Debtors
6
851,219
818,755
Cash at bank and in hand
209,544
151,847
1,060,763
970,602
Creditors: amounts falling due within one year
7
(220,299)
(188,013)
Net current assets
840,464
782,589
Total assets less current liabilities
1,162,939
1,061,379
Creditors: amounts falling due after more than one year
8
(90,649)
(21,379)
Provisions for liabilities
(4,401)
(4,401)
Deferred tax liability
(4,401)
(4,401)
Net assets
1,067,889
1,035,599
Capital and reserves
Called up share capital
103
105
Share premium account
98,172
98,172
Capital redemption reserve
2
Profit and loss reserves
969,612
937,322
Total equity
1,067,889
1,035,599
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 November 2023 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.
EDINBURGH RISK MANAGEMENT (GENERAL) LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 NOVEMBER 2023
30 November 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 30 August 2024 and are signed on its behalf by:
A W Mackie
D A Mackie
Director
Director
Company registration number SC222279 (Scotland)
EDINBURGH RISK MANAGEMENT (GENERAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
1
Accounting policies
Company information
Edinburgh Risk Management (General) Limited is a private company limited by shares incorporated in Scotland. The registered office is 69A Dean Path, Edinburgh, EH4 3AT.
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
Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable.
Turnover comprises commission, fees and bonuses and is recognised as follows:
- commission is recognised on the date of renewal of an insurance policy;
- fees are recognised when the work in relation to it has been completed; and
- bonuses are recognised when received due to the uncertain nature of these items.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.4
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:
Tenant's improvements
25% reducing balance
Fixtures and fittings
25% reducing balance
Equipment
33.33% reducing balance
Motor vehicles
25% reducing balance
EDINBURGH RISK MANAGEMENT (GENERAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.
1.5
Fixed asset investments
Investments are measured at cost less accumulated impairment.
1.6
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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet 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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
EDINBURGH RISK MANAGEMENT (GENERAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account 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.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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.
1.13
Insurance broking debtors and creditors
insurance companies and, as such, generally are not liable as principals for the amounts arising on such transactions. Therefore, debtors and creditors arising from insurance broking transactions are not reflected in the company's balance sheet as assets and liabilities.
EDINBURGH RISK MANAGEMENT (GENERAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.14
Insurance broking account
The company is required to pay all client money into the insurance broking account. Payments from this account relate to the settlement of insurance creditors, refund of premiums to clients and authorised withdrawals of commission earned. The insurance broking account is protected from being claimed by third parties by virtue of signed undertakings with the company's banker.
Therefore, the insurance broking account is not reflected as an asset on the company's balance sheet.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
14
16
3
Intangible fixed assets
Goodwill
£
Cost
At 1 December 2022 and 30 November 2023
363,810
Amortisation and impairment
At 1 December 2022
230,413
Amortisation charged for the year
72,762
At 30 November 2023
303,175
Carrying amount
At 30 November 2023
60,635
At 30 November 2022
133,397
EDINBURGH RISK MANAGEMENT (GENERAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 7 -
4
Tangible fixed assets
Tenant's improvements
Fixtures and fittings
Equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 December 2022
106,823
60,150
71,732
147,290
385,995
Additions
25,350
144,126
169,476
Disposals
(34,285)
(34,285)
At 30 November 2023
132,173
60,150
71,732
257,131
521,186
Depreciation and impairment
At 1 December 2022
60,898
47,487
61,562
74,155
244,102
Depreciation charged in the year
11,538
3,398
1,776
21,552
38,264
Eliminated in respect of disposals
(19,520)
(19,520)
At 30 November 2023
72,436
50,885
63,338
76,187
262,846
Carrying amount
At 30 November 2023
59,737
9,265
8,394
180,944
258,340
At 30 November 2022
45,925
12,663
10,170
73,135
141,893
5
Fixed asset investments
2023
2022
£
£
Unlisted investments
3,500
3,500
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
752,013
733,974
Prepayments and accrued income
99,206
84,781
851,219
818,755
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
EDINBURGH RISK MANAGEMENT (GENERAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Obligations under finance leases
32,806
10,738
Corporation tax
118,550
94,375
Other taxation and social security
7,061
8,374
Other creditors
4,576
47,120
Accruals and deferred income
57,306
27,406
220,299
188,013
The bank borrowings of the parent undertaking, which total £162,236 (2022 - £212,342), are secured by an intercompany guarantee between this company, Belgrave Homes (Scotland) Limited and RDM Holdings Limited.
The bank also holds a bond and floating charge over the assets of this company in respect of the finance leases.
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Obligations under finance leases
90,649
21,379
See note 7 for security details.
9
Commitments under operating leases
Lessee
At the reporting end date the company had outstanding commitments for future minimun lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
Within one year
1,380
1,380
Between two and five years
173
1,553
1,553
2,933
10
Related party transactions
At the year end, the company was owed £685,372 (2022 - £667,333) from its ultimate parent undertaking, RDM Holdings Limited. The balance is unsecured, interest free and repayable on demand.
At the year end, the company was owed £66,641 (2022 - £66,641) from its fellow subsidiary undertaking, Belgrave Homes (Scotland) Limited. The balance is unsecured, interest free and repayable on demand.
During the year, the company paid £54,840 (2022 - £49,440) of management fees and £8,400 (2022 - £8,400) of rent to RDM Holdings Limited.
EDINBURGH RISK MANAGEMENT (GENERAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -
11
Parent company
The parent undertaking is RDM Holdings Limited, a company registered in Scotland. The company’s registered office address is The Smiddy, Smithy Row, East Fortune, North Berwick, Scotland, EH39 5LD.
In the opinion of the directors, the company has no ultimate controlling party.
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