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REGISTERED NUMBER: 07279489 (England and Wales)















CANDID INSURANCE SERVICES LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

AUDITED

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023






CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

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










Page

Company Information 1

Group Strategic Report 2 to 5

Report of the Directors 6 to 7

Report of the Independent Auditors 8 to 10

Consolidated Statement of Comprehensive
Income

11


Consolidated Statement of Financial Position 12

Company Statement of Financial Position 13

Consolidated Statement of Changes in Equity 14

Company Statement of Changes in Equity 15

Consolidated Statement of Cash Flows 16

Notes to the Consolidated Statement of Cash
Flows

17


to


18

Notes to the Consolidated Financial Statements 19 to 30


CANDID INSURANCE SERVICES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2023







DIRECTORS: Mr J G Sargent
Mr R J Kerton
Mr M Barham



REGISTERED OFFICE: 920 Hempton Court
Aztec West
BRISTOL
BS32 4SR



REGISTERED NUMBER: 07279489 (England and Wales)



AUDITORS: Morris Owen
Statutory Auditors
43-45 Devizes Road
SWINDON
Wiltshire
SN1 4BG



BANKERS: Lloyds Bank Plc
58 Queens Road
Clifton
Bristol
BS8 1RQ

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023


The directors present their strategic report for the year ended 31st December 2023.

Candid Insurance Services Ltd (Candid) is a specialist insurance company focused on arranging insurance and protection policies for UK families. Candid's principal activities are the distribution of regulated life and protection products via an advised telephony service, underpinned by innovative marketing strategy managed in-house.

In August 2023, Candid Insurance Services Limited acquired Anorak Group Technologies Limited and its subsidiary Anorak Technologies Limited. The results of the acquired entities are therefore included in the financial statements for the period from 4th August 2023, the acquisition date, and 31 December 2023.

This strategic report references both the activities of Candid Insurance Services Limited and the acquired Anorak entities (hereon in together referred to as the 'Group').

REVIEW OF BUSINESS
The Group reported strong results for the financial year ended 31st December 2023. Revenue grew by circa 11% from £19.9m in the standalone Candid entity to £22.0m for the Group. Earnings before interest, tax, depreciation and amortisation (EBITDA) before impairment of the Anorak investment grew from (£139,362) in 2022 to £456,041 in 2023, an increase of £595k.

Throughout the financial year of 2023, the standalone Candid entity continued with a strategy of developing a broad telephony-based broker service on an advised basis. During 2023, the Group successfully closed its external service offering as a marketing partner, with its remaining partner being leveraged as a strategic opportunity for the beginning of 2024. This enabled the Group to consume all enquiries in-house, creating an end-to-end service which ensured the Group had full control over the advice, management, and consequent outcomes. With new regulatory principles coming into play in August 2023, this was important to ensure the Group had the relevant involvement in driving the right behaviours.

Alongside successfully bringing all business operations in-house, the standalone Candid entity also launched its own insurance products at the end of January 2023. Through a strategic partnership with iptiQ, a B2B2C subsidiary of the Swiss Re Group, it was able to launch Term Life and Serious Illness products under the Polly and Tom brands, which have been the foundation of the company's growth in recent years. The Group worked closely with iptiQ to create products which are tailormade for the Polly and Tom customer demographics, enabling more mothers and fathers around the UK to protect their families at an affordable price with additional benefits included, such as virtual GP services and mental health support. By creating the strategic partnership with iptiQ, the Group was able to distribute more policies by creating significant efficiency gains in the service provided by its advisory teams, creating bespoke question sets and agreeing structure service level agreements for underwriting decisions. Ultimately, the Group was able to distribute more insurance policies because of this partnership.

Following the launch of bespoke insurance products in January 2023, the Group went on to successfully develop and launch mobile applications under the Polly and Tom branding in March 2023. With ambitions of digitalizing its advisory services further, the Group released a post-sale service offering within the Android and iOS mobile operating systems for customers to access policy documentation in combination with viewing their chosen beneficiaries. The Group continued to offer a web portal for those who preferred not to download mobile applications, but successfully activated more than 70% of its policyholders within the Polly and Tom mobile applications, creating valid hypotheses for future digitalization through support from the Clark Group in years to come.

The total number of employees grew in 2023, with 52 more people joining the business to create a workforce of 212in December 2023. The recruitment was in the sales department, as well as supporting functions, such as customer experience, quality assurance, marketing, and operations. In August 2023, Matthew Edwards stepped down as Chief Executive Officer, and was replaced by longstanding Chief Operating Officer and statutory director, Joshua Sargent. In turn, Richard Kerton was made statutory director and promoted to Chief Distribution Officer, and Matthew Barham was hired to become Chief Operating Officer and subsequently was appointed a statutory director. Joshua Sargent made further senior hires to solidify the senior leadership team within the business, ensuring there is enough knowledge and capability to sustainably grow the business further over time, whilst minimising risk and exposure.

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023


The Group continued to invest in its staff by sponsoring individuals to complete qualifications under the Chartered Insurance Institute, with multiple employees obtaining the full certification throughout the calendar year. By maintaining a solid foundation for learning and development, the Group strives to retain the majority of those which have been hired in quick succession following consecutive years of hyper-growth. Work continues to foster a positive culture and working environment, allowing employees to flourish in roles which can offer personal and professional success over time. This remains a focus with a view to aiding staff retention.

Candid acquired a business from within the industry in August 2023. Anorak Group Ltd was purchased with a view to bringing additional advisors into the sales department, whilst leveraging proprietary technology which had been at the forefront of Anorak's strategy in recent years. An opportunity was presented to Candid and the business was successfully acquired following the relevant regulatory approvals. The work required to integrate the Anorak business was detailed, with the technology being complex and many of the processes being different to what was standardised within the Candid business. This resulted in a delay in executing the original plan following the completion of the transaction.

At the point of completion of the acquisition, reflecting on the performance of the acquired business and future plans for integration, it was determined that the value of the investment in Anorak Technologies Group had reduced, and the investment was impaired on this date. This resulted in an impairment write down in the Group of £5.3m. The remaining goodwill held in the consolidated balance sheet is being amortised over three years.

On 1st November 2023, the trade of Anorak Technologies Limited was hived up into Candid Insurance services Limited. All new Anorak revenue booked from 1st November was logged on Candid's back office system.

Investments continued to be made into information technology and software in order to continue with a strategy of creating proprietary services for a company which is a part of a wider insurance technology group. The tools provided for sales teams to distribute insurance and platforms to manage customer enquiries continue to be leveraged by systems which were built in-house. Focus and attention remain on upgrading the relevant systems to ensure they are of the required level for the industry too.

The Group retained the third-party compliance services of Help You Comply Ltd for another year. This enabled the VP of Compliance and wider Senior Management Function to obtain consultative opinion on regulatory topics when required. With new regulatory principles, such as Consumer Duty under the FCA, coming into play, the Group ensured Help You Comply Ltd was able to continue supporting the relevant individuals and departments to mitigate risk whilst driving sustainability. Investment into associated areas was again prominent, with work on data protection and consent being paramount for the business based on the volume of enquiries generated each month.


CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

PRINCIPAL RISKS AND UNCERTAINTIES
Rising acquisition costs continued in 2023, adding to the challenges in 2022 from an online privacy and data ownership perspective. The introduction of new functionality by third parties such as Meta and Google led to a requirement to increase spend to maintain conversion rates. The work continues to diversify marketing sources to offset this spend, with additional platforms being explored alongside organic channels to support investment into a more holistic approach to online marketing and customer acquisition. An increase in sales team employees created a larger requirement for opportunities too, adding to a notion of creating more lifetime value for existing customers instead of seeking perpetual growth from a single product line.

Further brand investment in television advertising campaigns through 2023 has helped this diversification but there is still more to be done as we look toward product diversification and upsell opportunities to further support our growth. The Group plans to focus its efforts on the customer lifetime value of customers in 2024, positioning itself as the partner for its customers long-term, allowing the Group to offset customer acquisition costs by leveraging the mobile application to reengage customers in the future.

The challenges associated with online marketing will remain prominent, but innovation and investment into proprietary tools to measure spend and data have at least enabled the Group to monitor the return on investment across online sources. This would not combat drastic changes made by social media firms, but this is something that will be a continuous risk to the Group, so long as it focuses on attracting customers online.

As the Group continues to grow, it will be important to retain a focus on recruitment needs and ensuring we have the right people in place to support that growth. We work with dedicated recruitment partners to meet these goals, with 2023 seeing the appointment of a number of new positions within the leadership team as well as continuing to build both our advisor cohort and wider support teams.

SECTION 172(1) STATEMENT
As Directors we are required under section 172 to take into consideration the interest of stakeholders in our decision making. The Board continues to have regard for the interests of the company's employees and other stakeholders. This includes the impact of its activities on the community, the environment and the company reputation when making decisions.

Our employees are our most valuable asset. We strive to offer attractive terms and benefits and continue to work on the employees' development. We also strive to maintain good relationships with our suppliers and associates which Is reflected in our excellent credit rating.

To ensure this continues, we regularly review our stakeholders and how we communicate and engage with them; either through information provided by management or by having direct communication with them.

CUSTOMERS AND SUPPLIERS
During 2023, our revenue moved away from lead generation and into the brokerage space. Whilst we continued to generate revenue from introducing customers to third-party intermediaries into Q4 of 2023, the in-house distribution model was the growth area in the period as we launched our own products through our partnership with IptiQ.

The Group has built a strong relationship with IptiQ, which underpins our own product offering, as well as continuing to experience a strong working relationship with a whole of market protection panel to ensure we can reach the widest needs of our customers.


CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

FUTURE DEVELOPMENTS
On 2nd January 2024, the Group acquired That's Life Group Limited, a Manchester based protection brokerage, to expand its UK presence and continue with our mission to provide protection for as many customers as possible.

The company will continue to invest in both technology and human resource to ensure that business quality and customer service levels are kept at the highest level possible.

As part of a pan-European insurance technology group, the Group has plans to integrate the Manchester business into existing operations whilst leveraging wider resource to strengthen the post-sale mobile application solution for its customers.

The Group is aware that future growth in sales will likely be focused on digital experience to supplement a broad telephony service, and product diversification will become prominent too. The Group intends to continue attracting customers via its bespoke in-house marketing strategy, whilst offering other insurance products to customers once they have activated within the mobile applications to view their policy documents and beneficiaries.

Another key factor here will be the development of customer engagement features within the mobile applications, allowing customers to make basic changes to their policy, such as payment dates and beneficiaries, creating a more comprehensive offering for its customers and positively contributing towards customer lifetime value. The Group intends to explore products which relate to those within the family, associating with its target market and the customer demographics serviced via the Polly and Tom bands - Home and Contents, Private Medical Insurance, and other General Insurance products are being considered as part of this strategy.

KPI INDICATORS
The Group monitors and benchmarks performance against the following KPIs:

- Leads generated
- Cost of leads generated
- Revenue generated per lead
- Conversion rates of leads into protection policies
- Value of protection policies written
- Customer retention rates

ON BEHALF OF THE BOARD:





Mr J G Sargent - Director


5th June 2024

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023


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

DIVIDENDS
No dividends will be distributed for the year ended 31st December 2023.

EVENTS SINCE THE END OF THE YEAR
Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS
Mr J G Sargent has held office during the whole of the period from 1st January 2023 to the date of this report.

Other changes in directors holding office are as follows:

Mr M D E Edwards - resigned 25th July 2023
Mr R J Kerton - appointed 1st September 2023

Mr M Barham was appointed as a director after 31st December 2023 but prior to the date of this report.

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.

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023


AUDITORS
The auditors, Morris Owen, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



Mr J G Sargent - Director


5th June 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CANDID INSURANCE SERVICES LIMITED


Opinion
We have audited the financial statements of Candid Insurance Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 31st December 2023 and of the group's loss 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.

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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CANDID INSURANCE SERVICES LIMITED


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 six, 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.

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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate
competence, capabilities and skills to identify or recognise non-compliance with applicable laws
and regulations through the audit planning process;

-
we identified the laws and regulations applicable to the company through discussions with directors
and other management, and from our commercial knowledge and experience of the group's
industry;
- we focused on specific laws and regulations which we considered may have a direct material effect
on the financial statements or the operations of the group, including the Financial Conduct
Authority (FCA), the Companies Act, taxation legislation, general data protection regulations
(GDPR), employment, and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through
making enquiries of management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team
remained alert to instances of non-compliance throughout the audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CANDID INSURANCE SERVICES LIMITED

We assessed this susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by:

- making enquiries of management as to where they considered there was susceptibility to fraud,
their knowledge of actual, suspected and alleged fraud; and
- regulations.considering the internal controls in place to mitigate risks of fraud and non-compliance
with laws and regulations

As a result of a small management and finance team we identified a risk of fraud through management bias and ability to override of controls, including lack of segregation of duties, which could lead to a misappropriation of cash and other assets. To address this we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set
out in note two were indicative of potential bias;
- investigated the rationale behind significant or unusual transaction including any customer
cancelled sales entries; and
- reviewed the internal group monthly reporting processes to their parent company.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HM Revenue & Customs (HMRC) and any legal correspondence.

Due 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, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

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.




Jenna Lauren Wheeler (Senior Statutory Auditor)
for and on behalf of Morris Owen
Statutory Auditors
43-45 Devizes Road
SWINDON
Wiltshire
SN1 4BG

6th June 2024

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

CONSOLIDATED
STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 22,019,877 19,939,795

Cost of sales 17,273,582 15,131,594
GROSS PROFIT 4,746,295 4,808,201

Administrative expenses 10,443,871 5,604,169
(5,697,576 ) (795,968 )

Other operating income 3,997 25,000
OPERATING LOSS 5 (5,693,579 ) (770,968 )

Interest receivable and similar income 51,211 3,385
LOSS BEFORE TAXATION (5,642,368 ) (767,583 )

Tax on loss 6 97,798 (68,828 )
LOSS FOR THE FINANCIAL YEAR (5,740,166 ) (698,755 )

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(5,740,166

)

(698,755

)

Loss attributable to:
Owners of the parent (5,740,166 ) (698,755 )

Total comprehensive income attributable to:
Owners of the parent (5,740,166 ) (698,755 )

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 2,971,201 3,045,460
Tangible assets 9 554,426 562,319
Investments 10 - -
3,525,627 3,607,779

CURRENT ASSETS
Debtors 11 4,970,727 3,161,644
Cash at bank and in hand 1,761,733 2,009,240
6,732,460 5,170,884
CREDITORS
Amounts falling due within one year 12 5,867,933 1,716,461
NET CURRENT ASSETS 864,527 3,454,423
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,390,154

7,062,202

PROVISIONS FOR LIABILITIES 15 4,981,861 1,913,743
NET (LIABILITIES)/ASSETS (591,707 ) 5,148,459

CAPITAL AND RESERVES
Called up share capital 16 11,152 11,152
Capital redemption reserve 17 38 38
Retained earnings 17 (602,897 ) 5,137,269
SHAREHOLDERS' FUNDS (591,707 ) 5,148,459

The financial statements were approved by the Board of Directors and authorised for issue on 5th June 2024 and were signed on its behalf by:





Mr J G Sargent - Director


CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

COMPANY STATEMENT OF FINANCIAL POSITION
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 8 2,971,201 3,045,460
Tangible assets 9 554,426 562,319
Investments 10 - -
3,525,627 3,607,779

CURRENT ASSETS
Debtors 11 4,963,504 3,161,644
Cash at bank and in hand 1,740,947 2,009,240
6,704,451 5,170,884
CREDITORS
Amounts falling due within one year 12 5,751,700 1,716,462
NET CURRENT ASSETS 952,751 3,454,422
TOTAL ASSETS LESS CURRENT
LIABILITIES

4,478,378

7,062,201

PROVISIONS FOR LIABILITIES 15 4,981,861 1,913,743
NET (LIABILITIES)/ASSETS (503,483 ) 5,148,458

CAPITAL AND RESERVES
Called up share capital 16 11,152 11,152
Capital redemption reserve 17 38 38
Retained earnings 17 (514,673 ) 5,137,268
SHAREHOLDERS' FUNDS (503,483 ) 5,148,458

Company's loss for the financial year (5,651,941 ) (698,756 )

The financial statements were approved by the Board of Directors and authorised for issue on 5th June 2024 and were signed on its behalf by:





Mr J G Sargent - Director


CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1st January 2022 11,152 5,836,024 38 5,847,214

Changes in equity
Total comprehensive income - (698,755 ) - (698,755 )
Balance at 31st December 2022 11,152 5,137,269 38 5,148,459

Changes in equity
Total comprehensive income - (5,740,166 ) - (5,740,166 )
Balance at 31st December 2023 11,152 (602,897 ) 38 (591,707 )

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1st January 2022 11,152 5,836,024 38 5,847,214

Changes in equity
Total comprehensive income - (698,756 ) - (698,756 )
Balance at 31st December 2022 11,152 5,137,268 38 5,148,458

Changes in equity
Total comprehensive income - (5,651,941 ) - (5,651,941 )
Balance at 31st December 2023 11,152 (514,673 ) 38 (503,483 )

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,335,729 (176,099 )
Tax paid - (2,226 )
Net cash from operating activities 2,335,729 (178,325 )

Cash flows from investing activities
Purchase of tangible fixed assets (155,308 ) (384,261 )
Sale of tangible fixed assets 2,293 -
Acquisition of business (913,662 ) -
Interest received 15,841 3,385
Net cash from investing activities (1,050,836 ) (380,876 )

Cash flows from financing activities
Amounts loaned to ultimate parent (1,532,400 ) -
Net cash from financing activities (1,532,400 ) -

Decrease in cash and cash equivalents (247,507 ) (559,201 )
Cash and cash equivalents at
beginning of year

2

2,009,240

2,568,441

Cash and cash equivalents at end
of year

2

1,761,733

2,009,240

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST DECEMBER 2023


1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Loss before taxation (5,642,368 ) (767,583 )
Depreciation charges 716,931 631,605
Loss on disposal of fixed assets 4,294 -
Impairment of goodwill 5,326,976 -
Movement in provision 2,798,093 1,636,974
Finance income (51,211 ) (3,385 )
3,152,715 1,497,611
Increase in trade and other debtors (77,497 ) (2,255,515 )
(Decrease)/increase in trade and other creditors (739,489 ) 581,805
Cash generated from operations 2,335,729 (176,099 )

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31st December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 1,761,733 2,009,240
Year ended 31st December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 2,009,240 2,568,441


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 2,009,240 (247,507 ) 1,761,733
2,009,240 (247,507 ) 1,761,733
Total 2,009,240 (247,507 ) 1,761,733

4. ACQUISITION OF BUSINESS

On 4 August 2023 Candid Insurance Services Limited acquired the entire share capital of Anorak Technologies Group Limited, and its subsidiary, Anorak Technologies Limited ("Anorak Group"). Please see note 10 in the notes of the financial statements for further details.

The acquisition of business figure is made up as follows:

£
Legal fees and other fees 992,491
Less: Cash acquired from subsidiaries (78,829 )
Net acquisition cash outflow 913,662

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

NOTES TO THE CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31ST DECEMBER 2023


5. MAJOR NON-CASH TRANSACTIONS

The purchase price of £4,308,345 of Anorak Technologies Group Limited was settled by the company's ultimate parent, via a share for share exchange, creating an intercompany loan owed and not a cash transaction.

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

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


1. STATUTORY INFORMATION

The company is a private company limited by shares. registered in England and Wales. The company's registered number is 07279489. The registered office address is 920 Hempton Court, Aztec West, Bristol, BS32 4SR.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

The Group has reported a loss, after tax, of £5,740,166 for the year. This includes an impairment of an investment of £5,326,975 relating to the purchase of The Anorak Group as detailed more fully in note 10. The acquisition was funded by a loan of £4,308,345 from the ultimate parent company, Clark Holdings SE. The directors have received a letter of support from the ultimate parent company whereby they have assurance that they will not call on this intercompany debt.

As the acquisition was not funded by the Group's own cash, the Group still has strong cash reserves (£1.7m at the balance sheet date). The directors have also prepared detailed cashflow forecasts which show the Group continues to have a healthy cash balance. Based on these factors, the directors believe the Group is a going concern and the accounts have been prepared on this basis.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Significant judgements and estimates
In preparing these financial statements, the directors have made the following judgements:

- Determine whether leases entered into by the company as a lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

- Determine the period of useful economic life and any residual value of all tangible fixed assets in order to write off the value of each asset over that period.

- Determine an appropriate provision for bad and doubtful debts by assessing the recoverability of all balances on a balance by balance basis.

- Determine the period of useful economic life on all intangible assets in order to write off the value of each asset over that period.

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

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


2. ACCOUNTING POLICIES - continued
Significant judgements and estimates - continued
In preparing these financial statements, the directors have also made some assumptions and estimates in respect of a clawback provision.

Provision is made for potential clawback of commission paid to the company by life insurance companies under indemnity terms. These clawbacks can take place within the first 48 months, in most cases, of a policy if the policy lapses. The provision is based on the historical analysis of clawbacks and the company's own internal arrangement to minimise clawback situations. The provision also accounts for discounting using a market interest rate for the Group.

Whilst making the estimate of the clawback provision, the company recognises a debtor in relation to the elements of the clawback that would be recoverable from the third parties for commissions paid to them in relation to the transaction.

At the year end the total clawback provision for the Group and company is £4,884,848 (2022:£1,913,743). This year's figure includes £208,005 which was hived up from Anorak Technologies Limited.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue represents net invoiced sale of services, excluding value added tax. Revenue in respect of lead generation is recognised on all validated leads at the date the lead is generated. Revenue in respect of commission is recognised net of commission clawback when a policy goes on risk.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of the business in 2018 is being amortised evenly over its estimated useful life of ten years.

Goodwill, being the amount paid in connection with the acquisition of the business in 2023 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.

Improvements to leasehold property - over term of the lease
Computer equipment - 33% on cost
Office equipment - over 15 years
Plant and machinery - 33% on cost

Financial instruments
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Short term trade creditors are measured at the transaction price. Other financial liabilities, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 statement of financial position date.


CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

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


2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Development costs
Expenditure on development is written off in the year in which it is incurred.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments
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.

3. TURNOVER

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

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Lead generation 1,321,237 7,679,228
Commission 20,698,640 12,260,567
22,019,877 19,939,795

All revenue is generated in the United Kingdom.

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 8,359,245 4,846,133
Social security costs 910,081 589,088
Other pension costs 149,961 81,230
9,419,287 5,516,451

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

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


4. EMPLOYEES AND DIRECTORS - continued

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

Staff 192 120
Directors 2 2
194 122

2023 2022
£    £   
Directors' remuneration 300,712 453,964
Directors' pension contributions to money purchase schemes 2,642 2,642

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 145,000 298,421
Pension contributions to money purchase schemes 1,321 1,321

5. OPERATING LOSS

The operating loss is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 6,708 5,615
Depreciation - owned assets 156,614 98,291
Loss on disposal of fixed assets 4,294 -
Goodwill amortisation 560,317 533,314
Auditors' remuneration 29,055 19,665
Auditors' remuneration for non audit work 34,729 2,010
Impairment losses for intangible fixed assets 5,326,975 -

On 4 August 2023, following the purchase of Anorak Technologies Group Limited and Anorak Technologies Limited, the directors of Candid Insurance Services Limited impaired the fixed asset investment resulting in an impairment of £5,326,975. This is recognised in the group's statement of comprehensive income. Please see note 10 for further information.

6. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the loss for the year was as follows:
2023 2022
£    £   
Current tax:
Under/over provision - 1,113

Deferred tax 97,798 (69,941 )
Tax on loss 97,798 (68,828 )

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

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


6. TAXATION - continued

Reconciliation of total tax charge/(credit) 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
£    £   
Loss before tax (5,642,368 ) (767,583 )
Loss multiplied by the standard rate of corporation tax in the UK
of 23.500 % (2022 - 19 %)

(1,325,956

)

(145,841

)

Effects of:
Expenses not deductible for tax purposes 1,414,309 111,283
Capital allowances in excess of depreciation - (15,646 )
Depreciation in excess of capital allowances 9,445 -
Adjustments to tax charge in respect of previous periods - 1,113
differences
Deferred tax - change in future tax rates - (19,737 )
losses
Total tax charge/(credit) 97,798 (68,828 )

7. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

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


8. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1st January 2023 4,932,494
Additions 486,058
At 31st December 2023 5,418,552
AMORTISATION
At 1st January 2023 1,887,034
Amortisation for year 560,317
At 31st December 2023 2,447,351
NET BOOK VALUE
At 31st December 2023 2,971,201
At 31st December 2022 3,045,460

On 4 August 2023 Candid Insurance Services Limited acquired Anorak Technologies Group Limited along with its subsidiary Anorak Technologies Limited. Please refer to note 10 for further information.

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

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


8. INTANGIBLE FIXED ASSETS - continued

Company
Goodwill
£   
COST
At 1st January 2023 4,932,494
Additions 486,058
At 31st December 2023 5,418,552
AMORTISATION
At 1st January 2023 1,887,034
Amortisation for year 560,317
At 31st December 2023 2,447,351
NET BOOK VALUE
At 31st December 2023 2,971,201
At 31st December 2022 3,045,460

9. TANGIBLE FIXED ASSETS

Group
Improvements Office &
to Plant and computer
property machinery equipment Totals
£    £    £    £   
COST
At 1st January 2023 240,192 105,166 446,782 792,140
Additions 5,709 17,101 132,498 155,308
Disposals - (9,127 ) (25,020 ) (34,147 )
At 31st December 2023 245,901 113,140 554,260 913,301
DEPRECIATION
At 1st January 2023 21,015 88,316 120,490 229,821
Charge for year 28,374 16,779 111,461 156,614
Eliminated on disposal - (9,127 ) (18,433 ) (27,560 )
At 31st December 2023 49,389 95,968 213,518 358,875
NET BOOK VALUE
At 31st December 2023 196,512 17,172 340,742 554,426
At 31st December 2022 219,177 16,850 326,292 562,319

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

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


9. TANGIBLE FIXED ASSETS - continued

Company
Improvements Office &
to Plant and computer
property machinery equipment Totals
£    £    £    £   
COST
At 1st January 2023 240,192 105,166 446,782 792,140
Additions 5,709 17,101 132,498 155,308
Disposals - (9,127 ) (25,020 ) (34,147 )
At 31st December 2023 245,901 113,140 554,260 913,301
DEPRECIATION
At 1st January 2023 21,015 88,316 120,490 229,821
Charge for year 28,374 16,779 111,461 156,614
Eliminated on disposal - (9,127 ) (18,433 ) (27,560 )
At 31st December 2023 49,389 95,968 213,518 358,875
NET BOOK VALUE
At 31st December 2023 196,512 17,172 340,742 554,426
At 31st December 2022 219,177 16,850 326,292 562,319

10. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertaki
£   
COST
Additions 5,915,663
Impairments (5,429,605 )
Reclassification/transfer (486,058 )
At 31st December 2023 -
NET BOOK VALUE
At 31st December 2023 -

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

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


10. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiaries

Anorak Technologies Group Limited
Registered office: 920 Hempton Court, Aztec West, Bristol, BS32 4SR
Nature of business:
%
Class of shares: holding
Ordinary 100.00
31.12.23
£   
Aggregate capital and reserves (4,040 )
Loss for the year (14,472,370 )

On 31 October 2023, following the hive up of the trade to Candid Insurance Services Limited, this company ceased to trade. It is the directors' intention to dissolve this company during 2024.

Anorak Technologies Limited
Registered office: 920 Hempton Court, Aztec West, Bristol, BS32 4SR
Nature of business:
%
Class of shares: holding
Ordinary 100.00
31.12.23
£   
Aggregate capital and reserves (84,184 )
Loss for the year (956,907 )

On 31 October 2023, following the hive up of the trade to Candid Insurance Services Limited, this company ceased to trade. It is the directors' intention to dissolve this company during 2024.


ACQUISITION OF BUSINESS
On 4 August 2023 Candid Insurance Services Limited acquired the entire share capital of Anorak Technologies Group Limited, and its subsidiary, Anorak Technologies Limited ("Anorak Group"). The total consideration, including transaction costs, was £4,696,638. Funds have also been advanced to the companies representing a further investment of £1,219,025.

At acquisition the investment was assessed for impairment. The future cashflow were calculated for the Anorak Group to be £486,058 resulting in an impairment of investment of £5,429,605.

On 31 October 2023 the trade of the Anorak Group was hived up to Candid Insurance Services Limited. Accordingly, in accordance with FRS, the balance of investment was transferred to goodwill within Intangible Fixed Assets and amortised in line with the company's amortisation policy for the period from acquisition to the balance sheet date.

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

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


11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 523,931 422,760 523,931 422,760
Amounts owed by group undertakings 1,567,770 - 1,567,770 -
Corporation tax recoverable 223,132 223,132 223,132 223,132
Deferred tax asset - 15,765 - 15,765
Prepayments 653,553 1,002,864 653,553 1,002,864
Accrued income 2,002,341 1,497,123 1,995,118 1,497,123
4,970,727 3,161,644 4,963,504 3,161,644

Deferred tax asset
Group Company
2023 2022 2023 2022
£    £    £    £   
Accelerated capital allowances - (87,306 ) - (87,306 )
Deferred tax losses - 103,071 - 103,071
- 15,765 - 15,765

The amounts owed by group undertakings relates to a formal loan, repayable on demand, to Clark Holding SE, this Group's ultimate parent company. Interest is being charged annually at 8.5%.

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade creditors 398,504 525,954 396,210 525,955
Amounts owed to group undertakings 4,308,345 - 4,308,345 -
Social security and other taxes 286,892 200,911 286,892 200,911
VAT 467,055 407,855 369,227 407,855
Other creditors 55,116 30,217 51,005 30,217
Accruals 352,021 551,524 340,021 551,524
5,867,933 1,716,461 5,751,700 1,716,462

The amounts owed to group undertakings relates to an informal loan, repayable on demand, to Clark Holding SE, this Group's ultimate parent company.

13. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 166,517 238,155
Between one and five years 878,996 928,068
In more than five years 445,889 594,518
1,491,402 1,760,741

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

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


13. LEASING AGREEMENTS - continued

Company
Non-cancellable operating leases
2023 2022
£    £   
Within one year 166,517 238,155
Between one and five years 878,996 928,068
In more than five years 445,889 594,518
1,491,402 1,760,741

14. SECURED DEBTS

As part of the change in ownership in the previous year, at ultimate parent company level, a charge was made by their debt providers onto Candid Insurance Services Limited's share capital.

15. PROVISIONS FOR LIABILITIES

Group Company
2023 2022 2023 2022
£    £    £    £   
Deferred tax
Accelerated capital allowances 96,018 - 96,018 -
Deferred tax losses (13,985 ) - (13,985 ) -
82,033 - 82,033 -

Other provisions 4,899,828 1,913,743 4,899,828 1,913,743

Aggregate amounts 4,981,861 1,913,743 4,981,861 1,913,743

Group
Deferred Other
tax provisions
£    £   
Balance at 1st January 2023 (15,765 ) 926,765
Provided during year 97,798 3,973,063
Balance at 31st December 2023 82,033 4,899,828

Company
Deferred Other
tax provisions
£    £   
Balance at 1st January 2023 (15,765 ) 926,765
Provided during year 97,798 3,973,063
Balance at 31st December 2023 82,033 4,899,828

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

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


15. PROVISIONS FOR LIABILITIES - continued

Other provisions relates to to the group's clawback provision and dilapidation provision.

The clawback provision is made for potential clawback of commissions paid to the company by life insurance companies under indemnity terms. These clawbacks can take place, in most cases, in the first 48 months of a policy if the policy lapses. The provision is based on historical analysis of clawbacks, after discounting, but also taking into account the company's own internal arrangements to minimise clawback situations.

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
11,152 Ordinary A £1 11,152 11,152

The ordinary shares have full voting rights.

17. RESERVES

Group
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1st January 2023 5,137,269 38 5,137,307
Deficit for the year (5,740,166 ) (5,740,166 )
At 31st December 2023 (602,897 ) 38 (602,859 )

Company
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1st January 2023 5,137,268 38 5,137,306
Deficit for the year (5,651,941 ) (5,651,941 )
At 31st December 2023 (514,673 ) 38 (514,635 )


18. PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions paid by the company to the fund.

As at 31 December 2023 there were outstanding commitments payable for the group of £38,433 (2022: £23,545).

19. POST BALANCE SHEET EVENTS

On 2 January 2024 the Group acquired the entire share capital of That's Life Group Limited a company that provides life insurance brokerage services. The total consideration was £861,000 and is being in paid in instalments during 2024.

CANDID INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 07279489)

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


20. ULTIMATE CONTROLLING PARTY

The ultimate parent company as at the balance sheet date is Clark Holding SE.

The immediate parent company is Finanzen.de Vermittlungsgesellschaft für Verbraucherverträge GmbH.

The address from where financial statements for the company can be obtained is;

Wilhelm-Leuschner-Straße 17-19
60329 Frankfurt am Main