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REGISTERED NUMBER: 07349131 (England and Wales)















MERS INS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023






MERS INS LIMITED (REGISTERED NUMBER: 07349131)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Statement of Income and Retained Earnings 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Cash Flow Statement 12

Notes to the Consolidated Cash Flow Statement 13

Notes to the Consolidated Financial Statements 15


MERS INS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: Mr M Woods
Mr R Dornan





REGISTERED OFFICE: Pendeford House
Pendeford Business Park
Overstrand
Wolverhampton
West Midlands
WV9 5AP





REGISTERED NUMBER: 07349131 (England and Wales)





AUDITORS: Folkes Worton LLP
Chartered Accountants and Statutory Auditor
15-17 Church Street
Stourbridge
West Midlands
DY8 1LU

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their strategic report of the company and the group for the year ended 31 December 2023.

REVIEW OF BUSINESS
The principal activity of the company during the year in review continues to be that of a holding company and the wider group activities continue to be acting as an Insurance Intermediary selling personal line insurance, predominantly motor, to the general public.

Our ongoing commitment is to be a customer centric organisation. In order to support and enhance our customer journey this year, the directors have focussed on harnessing technology to develop and implement customer portals. These portals allow customers greater flexibility to transact with us at times to suit them and their personal circumstances. Efficiencies have been optimised at every given opportunity, to ensure that manpower is located where the customers need it most which helps guide them and help them achieve great outcomes with a strong focus on first call resolution.

The leadership team continues to mature following earlier focus on recruitment, the benefits of which become more evident by the delivery of projects on a more agile basis. These in turn support the short, medium and long-term objectives of the group.

However, it is always pleasing to report that this year saw the company deliver further improvements in customer loyalty as well as writing a balanced book in soft market conditions. This long-term, prudent approach will protect the longevity of its insurer panel and underwriting performance.

The group was solvent and compliant with FCA regulations throughout the year and at 31 December 2023.

Looking ahead, the group will seek to optimise its existing expertise to expand the business model into new and emerging sectors and grow by acquisition, where it is felt this will be of benefit to our customer base. The group forecasts growth in profit for the next financial year as the market continues to adjust and stabilise post-pandemic and significant regulatory changes become embedded across the insurance industry.

PRINCIPAL RISKS AND UNCERTAINTIES
Given the systemic nature and impact of Covid 19 it has, and continues to produce globally challenging market conditions.

As with previous years, the principal uncertainty that the group faces is the vagaries of the insurance market. This external challenge is always present across the market and is therefore always a risk to general market forces and trends.

The directors are of the opinion that beyond those noted above, there are no additional risks attributable to the group which need to be highlighted other than normal commercial risks.

Risks to the business are reported and reviewed at regular meetings of the directors and risk mitigation strategies implemented as appropriate.

ON BEHALF OF THE BOARD:





Mr M Woods - Director


9 September 2024

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


The directors present their report and the financial statements for the year ended 31 December 2021.

DIVIDENDS
The total distribution of dividends for the year ended 31 December 2023 will be £ 200,000 .

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

Mr M Woods
Mr R Dornan

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 group'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 group's auditors are aware of that information.

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023


AUDITORS
The auditors, Folkes Worton LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:




Mr M Woods - Director


9 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MERS INS LIMITED


Opinion
We have audited the financial statements of Mers Ins Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2023 and of the group's 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 group 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 group's and the parent 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MERS INS LIMITED


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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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 three, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MERS INS 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:

Based on our understanding of the group, the company and their industry, we identified the principal risks of non-compliance with laws and regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and determined that the principal risks were related to:
- Revenue recognition;
- Management override of controls;
- Management bias in accounting estimates and judgements; and
- Non-disclosure of transactions and balances with related parties.

In response to the above identified risks, audit procedures were designed to enable us to arrive at appropriately drawn conclusions. These audit procedures include;
- Documentation of the invoice recording processes and agreement of a sample of income from source to the nominal entries;
- Review and challenging of journal entries, in particular unusual transactions and account combinations;
- Challenging of assumptions and judgements made by management in their assessment of significant accounting estimates;
- Review of the list of related parties, discussion with management and review of the records of account; and
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely it would be for the inherently limited procedures required by auditing standards to identify it. In addition, as with any audit, there remains a risk of not detecting irregularities as these may include collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

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
MERS INS 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.




Nigel Meredith FCA (Senior Statutory Auditor)
for and on behalf of Folkes Worton LLP
Chartered Accountants and Statutory Auditor
15-17 Church Street
Stourbridge
West Midlands
DY8 1LU

9 September 2024

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 10,532,087 10,033,447

Administrative expenses 10,370,267 9,768,438
OPERATING PROFIT 5 161,820 265,009

Interest receivable and similar income 25,211 6,230
187,031 271,239

Interest payable and similar expenses 6 20,145 15,247
PROFIT BEFORE TAXATION 166,886 255,992

Tax on profit 7 87,445 34,273
PROFIT FOR THE FINANCIAL YEAR 79,441 221,719

Retained earnings at beginning of year 1,688,120 1,766,401

Dividends 9 (200,000 ) (300,000 )

RETAINED EARNINGS FOR THE GROUP
AT END OF YEAR

1,567,561

1,688,120

Profit attributable to:
Owners of the parent 79,441 221,719

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

CONSOLIDATED BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 1,517,489 1,457,917
Tangible assets 11 131,916 72,238
Investments 12 - -
1,649,405 1,530,155

CURRENT ASSETS
Debtors 13 4,717,420 4,288,163
Cash at bank 355,690 617,580
5,073,110 4,905,743
CREDITORS
Amounts falling due within one year 14 5,104,239 4,737,778
NET CURRENT (LIABILITIES)/ASSETS (31,129 ) 167,965
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,618,276

1,698,120

CREDITORS
Amounts falling due after more than one year 15 40,715 -
NET ASSETS 1,577,561 1,698,120

CAPITAL AND RESERVES
Called up share capital 18 10,000 10,000
Retained earnings 19 1,567,561 1,688,120
SHAREHOLDERS' FUNDS 1,577,561 1,698,120

The financial statements were approved by the Board of Directors and authorised for issue on 9 September 2024 and were signed on its behalf by:



Mr R Dornan - Director



Mr M Woods - Director


MERS INS LIMITED (REGISTERED NUMBER: 07349131)

COMPANY BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 - -
Investments 12 3,830,601 3,830,601
3,830,601 3,830,601

CURRENT ASSETS
Cash at bank 84 75

CREDITORS
Amounts falling due within one year 14 3,678,190 3,678,181
NET CURRENT LIABILITIES (3,678,106 ) (3,678,106 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

152,495

152,495

CAPITAL AND RESERVES
Called up share capital 18 10,000 10,000
Retained earnings 142,495 142,495
SHAREHOLDERS' FUNDS 152,495 152,495

Company's profit for the financial year 200,000 300,000

The financial statements have been prepared 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 9 September 2024 and were signed on its behalf by:




Mr R Dornan - Director



Mr M Woods - Director


MERS INS LIMITED (REGISTERED NUMBER: 07349131)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 233,272 930,684
Interest paid (7,523 ) (10,838 )
Interest element of hire purchase payments paid (12,622 ) (4,409 )
Tax paid 57,426 32,757
Net cash from operating activities 270,553 948,194

Cash flows from investing activities
Purchase of intangible fixed assets (265,000 ) (265,000 )
Purchase of tangible fixed assets (16,492 ) (49,239 )
Interest received 25,211 6,230
Net cash from investing activities (256,281 ) (308,009 )

Cash flows from financing activities
Capital repayments in year (42,862 ) (32,058 )
Amount introduced by directors 647,020 287,160
Amount withdrawn by directors (680,320 ) (222,000 )
Equity dividends paid (200,000 ) (300,000 )
Net cash from financing activities (276,162 ) (266,898 )

(Decrease)/increase in cash and cash equivalents (261,890 ) 373,287
Cash and cash equivalents at beginning of year 2 617,580 244,293

Cash and cash equivalents at end of year 2 355,690 617,580

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

NOTES TO THE CONSOLIDATED 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 166,886 255,992
Depreciation charges 281,654 245,870
Finance costs 20,145 15,247
Finance income (25,211 ) (6,230 )
443,474 510,879
Increase in trade and other debtors (522,388 ) (169,310 )
Increase in trade and other creditors 312,186 589,115
Cash generated from operations 233,272 930,684

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 355,690 617,580
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 617,580 244,293


MERS INS LIMITED (REGISTERED NUMBER: 07349131)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023


3. ANALYSIS OF CHANGES IN NET FUNDS

Other
non-cash
At 1/1/23 Cash flow changes At 31/12/23
£    £    £    £   
Net cash
Cash at bank 617,580 (261,890 ) 355,690
617,580 (261,890 ) 355,690
Debt
Finance leases (4,338 ) 42,862 (119,412 ) (80,888 )
(4,338 ) 42,862 (119,412 ) (80,888 )
Total 613,242 (219,028 ) (119,412 ) 274,802

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


1. STATUTORY INFORMATION

Mers Ins Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. 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.

Financial Reporting Standard 102 - reduced disclosure exemptions
The group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirement of paragraph 33.7.

Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition
Turnover represents net retained brokerage, commissions and charges earned during the year for insurance services rendered. Brokerage, commissions and charges are taken to the profit and loss account at the inception date of the policy. No provision is made for adjustments to brokerage which may arise from future events such as policy cancellation, extention or amendment as these adjustments are considered to be immaterial.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2011, is being amortised evenly over its estimated useful life of twenty years.

Intellectual property
Intellectual property is initially measured at cost. After initial recognition intellectual property is measured at cost less any accumulated amortisation and any accumulated impairment losses. Intellectual property is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Computer equipment - at varying rates on cost


MERS INS LIMITED (REGISTERED NUMBER: 07349131)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Insurance debtors and creditors
The company acts as agent in broking the insurable risks of clients and is not liable as a principle for premiums due to underwriters or for claims payable to clients. Notwithstanding the legal relationship with clients and underwriters, the company has followed a generally accepted accounting practice for insurance intermediaries by showing debtors, creditors and cash balances relating to insurance business as assets and liabilities of the company itself.

In the ordinary course of insurance broking business, settlement is required to be made with insurance intermediaries or insurance companies on the basis of the net balance due to or from them rather than the amount due to or from the individual third parties which they represent.

In accordance with FRS 102, assets and liabilities may not be offset unless net settlement is legally enforceable. Accordingly, insurance debtors and creditors are shown gross within these financial statements.

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


2. ACCOUNTING POLICIES - continued

Consolidation
The consolidated group financial statements incorporate the financial statements of the company and all group undertakings. These are adjusted, where appropriate, to conform to group accounting policies.Acquisitions are accounted for under the acquisition method and goodwill on consolidation is capitalised and written off over a maximum of 20 years from the year of acquisition. The results of companies acquired or disposed of are included in the group profit and loss account after or up to the date that control passes respectively. As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

Turnover arises from net insurance brokerage, commissions and charges. The whole turnover is from activities undertaken in the United Kingdom.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,714,211 2,879,189
Social security costs 249,285 264,378
Other pension costs 84,592 55,334
3,048,088 3,198,901

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

Directors 2 2
Accounts, administration and other 31 38
Technical 56 65
89 105

2023 2022
£    £   
Directors' remuneration - -

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


5. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Other operating leases 199,244 197,772
Depreciation - owned assets 28,828 34,882
Depreciation - assets on hire purchase contracts 47,398 32,061
Goodwill amortisation 132,428 132,428
Intellectual property amortisation 73,000 46,500
Auditors' remuneration 22,830 22,683

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 7,523 10,838
Hire purchase interest 12,622 4,409
20,145 15,247

7. 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 88,704 36,904

Deferred tax (1,259 ) (2,631 )
Tax on profit 87,445 34,273

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


7. TAXATION - continued

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

2023 2022
£    £   
Profit before tax 166,886 255,992
Profit multiplied by the standard rate of corporation tax in the UK of 23.521 %
(2022 - 19 %)

39,253

48,638

Effects of:
Expenses not deductible for tax purposes 3,754 1,369
Depreciation in excess of capital allowances 57,488 30,559
Finance lease repayments (13,050 ) (6,929 )
Research and development enhanced deductions - current year - (39,364 )
enhanced deductions - prior
Total tax charge 87,445 34,273

8. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


9. DIVIDENDS
2023 2022
£    £   
Interim 200,000 300,000

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


10. INTANGIBLE FIXED ASSETS

Group
Intellectual
Goodwill property Totals
£    £    £   
COST
At 1 January 2023 2,648,553 465,000 3,113,553
Additions - 265,000 265,000
At 31 December 2023 2,648,553 730,000 3,378,553
AMORTISATION
At 1 January 2023 1,589,136 66,500 1,655,636
Amortisation for year 132,428 73,000 205,428
At 31 December 2023 1,721,564 139,500 1,861,064
NET BOOK VALUE
At 31 December 2023 926,989 590,500 1,517,489
At 31 December 2022 1,059,417 398,500 1,457,917

11. TANGIBLE FIXED ASSETS

Group
Computer
equipment
£   
COST
At 1 January 2023 1,491,619
Additions 135,904
At 31 December 2023 1,627,523
DEPRECIATION
At 1 January 2023 1,419,381
Charge for year 76,226
At 31 December 2023 1,495,607
NET BOOK VALUE
At 31 December 2023 131,916
At 31 December 2022 72,238

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


11. TANGIBLE FIXED ASSETS - continued

Group

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Computer
equipment
£   
COST
At 1 January 2023 39,041
Additions 119,412
Transfer to ownership (39,041 )
At 31 December 2023 119,412
DEPRECIATION
At 1 January 2023 31,447
Charge for year 47,398
Transfer to ownership (39,041 )
At 31 December 2023 39,804
NET BOOK VALUE
At 31 December 2023 79,608
At 31 December 2022 7,594

12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 3,830,601
NET BOOK VALUE
At 31 December 2023 3,830,601
At 31 December 2022 3,830,601


MERS INS LIMITED (REGISTERED NUMBER: 07349131)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


12. FIXED ASSET INVESTMENTS - continued


The company owns 100% of the ordinary A shares in Premium Choice Limited.

Premium Choice Limited owns 100% of the ordinary shares in A Choice Limited, Riders Choice Limited and Van Insurance Direct Services Limited.

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2023 2022
£    £   
Trade debtors 2,009,882 1,772,380
Other debtors 2,238,117 2,069,905
Tax - 94,390
Deferred tax asset 3,890 2,631
Prepayments and accrued income 465,531 348,857
4,717,420 4,288,163

Deferred tax asset
Group
2023 2022
£    £   
Deferred tax 3,890 2,631

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Hire purchase contracts (see note 16) 40,173 4,338 - -
Trade creditors 3,164,179 3,407,887 - -
Amounts owed to group undertakings - - 3,501,020 3,501,011
Tax 88,644 36,904 - -
Social security and other taxes 64,122 64,844 - -
Other creditors 217,124 188,381 177,170 177,170
Directors' current accounts 31,860 65,160 - -
Accruals and deferred income 1,498,137 970,264 - -
5,104,239 4,737,778 3,678,190 3,678,181

Hire purchase contracts are secured by a legal charge on the assets to which they relate.

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Group
2023 2022
£    £   
Hire purchase contracts (see note 16) 40,715 -

Hire purchase contracts are secured by a legal charge on the assets to which they relate.

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Gross obligations repayable:
Within one year 46,630 4,968
Between one and five years 42,744 -
89,374 4,968

Finance charges repayable:
Within one year 6,457 630
Between one and five years 2,029 -
8,486 630

Net obligations repayable:
Within one year 40,173 4,338
Between one and five years 40,715 -
80,888 4,338

17. DEFERRED TAX

Group
£   
Balance at 1 January 2023 (2,631 )
Provided during year (1,259 )
Balance at 31 December 2023 (3,890 )

MERS INS LIMITED (REGISTERED NUMBER: 07349131)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023


18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
10,000 Ordinary £1 10,000 10,000

19. RESERVES

Group
Retained
earnings
£   

At 1 January 2023 1,688,120
Profit for the year 79,441
Dividends (200,000 )
At 31 December 2023 1,567,561


20. CONTINGENCIES

There is a cross company guarantee between Premium Choice Limited, Premium Choice Properties Limited and Mers Ins Limited, supported by a legal charge in place over all the company's assets dated 4 January 2021 in favour of Barclays Security Trustee Limited.

21. RELATED PARTY TRANSACTIONS

M Woods and R Dornan are also directors of Premium Choice Properties Limited. During the year Premium Choice Properties Limited charged rent of £178,560 (2022: £178,560) and recharged costs of £Nil (2022: £Nil) to Premium Choice Limited. Premium Choice Limited recharged costs of £Nil (2022: £Nil) to Premium Choice Properties Limited during the year, amounts owed by Premium Choice Properties Limited to the group at the year end was of £2,234,829 (2022: £2,066,827).

R Dornan is a director and shareholder of RMJD Limited, included within other debtors are amounts owed by RMJD Limited of £3,078 (2022: £3,078).

During the year the group purchased intellectual property from the company directors for £265,000 (2022: £265,000), meaning a combined total of £730,000.

The company has taken advantage of the exemption in FRS 102 s33.1A and has not disclosed in its consolidated accounts any transactions or balances between group entities which have been eliminated on consolidation.