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Registered number: 03476249






ALAN BLUNDEN & CO. LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023










img670e.png

 
ALAN BLUNDEN & CO. LTD
 
 
COMPANY INFORMATION


Directors
J Cadle (appointed 1 July 2023)
B Brook (resigned 1 July 2023)
R Burgess 
M Searcy 
M Womack (appointed 1 July 2023)




Registered number
03476249



Registered office
Exchequer Court
33 St. Mary Axe

London

EC3A 8AA




Independent auditors
Venthams
Chartered Accountants & Statutory Auditor

Millhouse

32 - 38 East Street

Rochford

Essex

SS4 1DB





 
ALAN BLUNDEN & CO. LTD
 

CONTENTS



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 27


 
ALAN BLUNDEN & CO. LTD
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

Introduction
 
Our Vision has always been to be a top 50 broker, we are pleased to report that in November 2023 we were officially recognised as being placed within the top 50 brokers at number 45.
The board are pleased to report another period of profitable, organic growth for the Company. Our Year end changed from 31st March to 31st December in this accounting period and the results are therefore for an 9 month period not a full 12 months.
Despite this shortened period of accounting our pretax profit increased as did our operating profit as a % of our turnover.
Sales per employee were reduced due to the shortened accounting period.
Following the change in control on the 1st July 2023 the business has seen many benefits from our Group and we have only seen positive outcomes from the change. There has been no change in our day to day operations or senior management team.

Business review
 
Our service standards across the business remained exceptional during the year. We continued to focus on providing good outcomes for all of our customers.
Looking at this shortened financial period, ABACUS, our wholesale property division, continued to make excellent progress as a result of our strategy.
We have continued to invest in our systems and technology making enhancements to both our broker trading platform and back office systems.
Our retail areas of the business, Cover4 & London Road, have continued to find the market difficult but progress has been made and new strategic initiatives will help these areas progress in 2024.

Principal risks and uncertainties
 
The cost of living and global uncertainty
• The forthcoming UK elections and changing political landscape
• Changes in Regulation
• Capacity restrictions in the UK Property insurance market
• Cyber risks
 

Financial key performance indicators
 
                                                                                                                    December 2023           March 2023
Increase / (Decrease) in turnover                                                                           (9.68%)                  31.91%
Increase / (Decrease) in pre-tax operating profit                                                   10.53%                   21.99%
Operating profit as a percentage of turnover                                                         22.43%                  18.33%
Increase / (Decrease) in gross profit                                                                     (14.30%)                   24.10%
Shareholder’s funds as a percentage of turnover                                                  15.50%                  25.26%
Sales per employee                                                                                              £283,885               £325,139

Page 1

 
ALAN BLUNDEN & CO. LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023


This report was approved by the board and signed on its behalf.


R Burgess
Director

Date: 23 September 2024

Page 2

 
ALAN BLUNDEN & CO. LTD
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the period ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic Report, the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Results and dividends

The profit for the period, after taxation, amounted to £4,370,955 (2023 -£4,234,641).

During the year dividends were paid of £7,556,400 (2023: £1,000,000).

Directors

The directors who served during the period were:

J Cadle (appointed 1 July 2023)
B Brook (resigned 1 July 2023)
R Burgess 
M Searcy 
M Womack (appointed 1 July 2023)

Page 3

 
ALAN BLUNDEN & CO. LTD
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023

Financial instrument risk management

We monitor our financial position carefully and receive monthly, detailed cash flow and management figures.  In addition, the board have considered the key financial risks to the firm.  This can be summarised as follows: 

Credit risk
We use a third party provider when offering payment by instalments to our customers.  The majority of these contracts are on a ‘non-recourse’ basis meaning there is no credit risk to the firm.  For statement customers, the terms offered are in line with the contracted authority provided by our insurer panel.  We have systems in place for collection of any aged debt which includes both weekly and monthly management reporting with appropriate escalation.  The risk here is low.

Liquidity risk
The majority of our funds are held in instant access UK bank accounts.  Liquidity risk is low.

Cash flow risk
This is low risk with the business holding more than sufficient cash funds.

Future developments

To enable the firm to continue progressing towards its vision, the following key developments are planned for the forthcoming period:
• Innovative new products and functionality to our trading platforms
• Expansion of IT development team to increase speed of delivery

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsVenthamswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





R Burgess
Director

Date: 23 September 2024

Page 4

 
ALAN BLUNDEN & CO. LTD
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALAN BLUNDEN & CO. LTD
 

Opinion


We have audited the financial statements of Alan Blunden & Co. Ltd (the 'Company') for the period ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the period then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Page 5

 
ALAN BLUNDEN & CO. LTD
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALAN BLUNDEN & CO. LTD (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 3, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 6

 
ALAN BLUNDEN & CO. LTD
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALAN BLUNDEN & CO. LTD (CONTINUED)

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 an Auditors' Report 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.
- Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include FCA regulation specifically CASS 5 (Client money: Insurance distribution activity) and health and safety legislation.
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).


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 Auditors' Report.


Page 7

 
ALAN BLUNDEN & CO. LTD
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ALAN BLUNDEN & CO. LTD (CONTINUED)

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 an Auditors' Report 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.





Stuart Harrison (Senior statutory auditor)
  
for and on behalf of
Venthams
 
Chartered Accountants
Statutory Auditor
  
Millhouse
32 - 38 East Street
Rochford
Essex
SS4 1DB

24 September 2024
Page 8

 
ALAN BLUNDEN & CO. LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023

Period ending
31 December
Period ending
31 March
2023
2023
Note
£
£

  

Turnover
 3 
25,549,618
28,287,136

Cost of sales
  
(15,318,547)
(16,348,234)

Gross profit
  
10,231,071
11,938,902

Administrative expenses
  
(4,508,089)
(6,253,264)

Other operating income
  
8,465
13,542

Exceptional other operating charges
  
-
(513,611)

Operating profit
 4 
5,731,447
5,185,569

Interest receivable and similar income
  
127,024
77,034

Profit before tax
  
5,858,471
5,262,603

Tax on profit
 8 
(1,487,516)
(1,027,962)

Profit for the financial period
  
4,370,955
4,234,641

There was no other comprehensive income for 2023 (2023:£NIL).

Page 9

 
ALAN BLUNDEN & CO. LTD
REGISTERED NUMBER:03476249

BALANCE SHEET
AS AT 31 DECEMBER 2023

31 December
31 March
2023
2023
Note
£
£

Fixed assets
  

Tangible assets
 12 
190,131
266,697

Investments
 13 
4,288
4,918

  
194,419
271,615

Current assets
  

Debtors: amounts falling due within one year
 14 
16,692,893
15,792,358

Cash at bank and in hand
 15 
9,710,610
11,348,866

  
26,403,503
27,141,224

Creditors: amounts falling due within one year
 17 
(22,607,760)
(20,218,791)

Net current assets
  
 
 
3,795,743
 
 
6,922,433

Total assets less current liabilities
  
3,990,162
7,194,048

Provisions for liabilities
  

Deferred tax
 19 
(30,357)
(48,798)

  
 
 
(30,357)
 
 
(48,798)

Net assets
  
3,959,805
7,145,250


Capital and reserves
  

Called up share capital 
 20 
100,000
100,000

Profit and loss account
 21 
3,859,805
7,045,250

  
3,959,805
7,145,250


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




R Burgess
Director

Date: 23 September 2024

Page 10

 
ALAN BLUNDEN & CO. LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2022
100,000
3,810,609
3,910,609


Comprehensive income for the year

Profit for the year
-
4,234,641
4,234,641


Contributions by and distributions to owners

Dividends: Equity capital
-
(1,000,000)
(1,000,000)



At 1 April 2023
100,000
7,045,250
7,145,250


Comprehensive income for the period

Profit for the period
-
4,370,955
4,370,955


Contributions by and distributions to owners

Dividends: Equity capital
-
(7,556,400)
(7,556,400)


At 31 December 2023
100,000
3,859,805
3,959,805


Page 11

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

1.


General information

Alan Blunden & Co. Ltd is a private company limited by shares, incorporated in England and Wales.  Its registered office is Exchequer Court, 33 St. Mary Axe, London, EC3A 8AA. 
The principal activity of the company continued to be that of non-life insurance brokers.
The financial statements are for a 9 month period due to the year end being changed to align with the group of which the company belongs.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Amtrust International Insurance Limited as at 31 December 2023 and these financial statements may be obtained from its registered address, Washington Mall 7 Reid Street Suite 400 Hamilton, HM 11, Bermuda.

 
2.3

Going concern

The directors have undertaken a threshold condition review of likely financial impacts (best, anticipated and worst), and the results of these have satisfied the directors that there are sufficient resources for at least the next 12 months for the company to continue as a going concern.  As a result, the financial statements have been prepared on the going concern basis.

Page 12

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when the amount of revenue can be measured reliably and it is probable that the Company will receive the consideration due under the contract.
Revenue arises from commission and fees recognised when the insurance premiums are received from the customer.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 13

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.10

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using either the reducing balance method or straight line basis..

Depreciation is provided on the following basis:

L/Term Leasehold Property
-
20%
reducing balance
Motor vehicles
-
25%
reducing balance
Fixtures & fittings
-
25%
reducing balance
Computer equipment
-
25%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 14

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Debtors

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.

 
2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.14

Creditors

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

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 15

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.16

Financial instruments

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Page 16

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.16
Financial instruments (continued)


Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

 
2.17

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

  
2.18

Insurance broking debtors, cash and creditors

The company acts as an agent in placing the insurable risks of its client with insurers.  Generally, the company is not liable as principal either for premiums due to insurers or for claims payable to its clients.  Notwithstanding the company's legal relationships with clients and insurers and since, in practice, premium and claim monies are ordinarily accounted for by insurance intermediaries as if they were principals in the insurance contract, fiduciary funds, debtors and creditors relating to insurance broking business are treated as the company's assets and liabilities.  Details of insurance broking debtors, cash and creditors are shown in note 16.


3.


Turnover

The whole of the turnover is attributable to the principal activity of the company.

All turnover arose within the United Kingdom.


4.


Operating profit

The operating profit is stated after charging:

Period ending
31 December
Period ending
31 March
2023
2023
£
£

Other operating lease rentals
141,865
138,800

Page 17

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

5.


Auditors' remuneration

During the period, the Company obtained the following services from the Company's auditors and their associates:


Period ending
31 December
Period ending
31 March
2023
2023
£
£

Fees payable to the Company's auditors and their associates for the audit of the Company's financial statements
23,070
24,280

Fees payable to the Company's auditors and their associates in respect of:

All non-audit services not included above
19,345
63,026


6.


Employees

Staff costs, including directors' remuneration, were as follows:


Period ending
31 December
Period ending
31 March
2023
2023
£
£

Wages and salaries
2,628,064
3,674,600

Social security costs
259,813
407,578

Cost of defined contribution scheme
51,742
83,683

2,939,619
4,165,861


The average monthly number of employees, including the directors, during the period was as follows:


    Period ending
     31 December
    Period ending
        31 March
        2023
        2023
            No.
            No.







Administration
25
25



Management
15
10



Selling
50
52

90
87

Page 18

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

7.


Directors' remuneration

Period ending
31 December
Period ending
31 March
2023
2023
£
£

Directors' emoluments
313,946
726,104

Company contributions to defined contribution pension schemes
1,541
13,642

315,487
739,746


During the period retirement benefits were accruing to 2 directors (2023 -3) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £199,526 (2023 -£329,751).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2023 -£5,500).


8.


Taxation


Period ending
31 December
Period ending
31 March
2023
2023
£
£

Corporation tax


Current tax on profits for the year
1,505,957
1,015,828


Deferred tax


Origination and reversal of timing differences
(18,441)
423

Changes to tax rates
-
11,711


Taxation on profit on ordinary activities
1,487,516
1,027,962
Page 19

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
 
8.Taxation (continued)


Factors affecting tax charge for the period/year

The tax assessed for the period is higher than the standard rate of corporation tax in the UK of 25% (2023 -19%). The differences are explained below:

Period ending
31 December
Period ending
31 March
2023
2023
£
£


Profit on ordinary activities before tax
5,858,471
5,262,603


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 -19%)
1,464,618
999,895

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
22,898
18,412

Capital allowances for period/year in excess of depreciation
-
(3,066)

Change in UK corporation tax rate
-
11,711

Short term timing difference leading to an increase (decrease) in taxation
-
1,010

Total tax charge for the period/year
1,487,516
1,027,962



There were no factors that may affect future tax charges.




9.


Dividends

31 December
31 March
2023
2023
£
£


Ordinary A shares
7,556,400
1,000,000

7,556,400
1,000,000

Page 20

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

10.


Exceptional items

Period ending
31 December
Period ending
31 March
2023
2023
£
£


Baxter Building Ltd loan - write off
-
513,611

-
513,611

The exceptional item relates to a loan to Baxter Building Ltd that was written off with a deed of release on 29 March 2023.


11.


Intangible assets






Goodwill

£



Cost


At 1 April 2023
205,000



At 31 December 2023

205,000



Amortisation


At 1 April 2023
205,000



At 31 December 2023

205,000



Net book value



At 31 December 2023
-



At 31 March 2023
-


 



Page 21

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

12.


Tangible fixed assets







L/Term Leasehold Property
Motor vehicles
Fixtures & fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 April 2023
68,972
179,732
204,939
270,894
724,537


Additions
-
-
2,183
11,292
13,475


Disposals
-
(74,856)
-
-
(74,856)



At 31 December 2023

68,972
104,876
207,122
282,186
663,156



Depreciation


At 1 April 2023
53,055
69,495
139,115
196,175
457,840


Charge for the period on owned assets
2,580
-
13,584
27,548
43,712


Charge for the period on financed assets
-
14,749
-
-
14,749


Disposals
-
(43,276)
-
-
(43,276)



At 31 December 2023

55,635
40,968
152,699
223,723
473,025



Net book value



At 31 December 2023
13,337
63,908
54,423
58,463
190,131



At 31 March 2023
15,917
110,237
65,824
74,720
266,698

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:





Page 22

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

13.


Fixed asset investments








Unlisted investments

£



Cost or valuation


At 1 April 2023
4,918


On disposal of subsidiaries
(630)



At 31 December 2023
4,288





14.


Debtors

31 December
31 March
2023
2023
£
£


Trade debtors
16,377,646
15,074,547

Amounts owed by group undertakings
48,540
83,400

Other debtors
93,630
128,875

Prepayments and accrued income
173,077
505,536

16,692,893
15,792,358



15.


Cash and cash equivalents

31 December
31 March
2023
2023
£
£

Cash at bank and in hand
9,710,610
11,348,866

9,710,610
11,348,866


Cash at bank includes £5,703,107 (2023: 5,310,785) in respect of client money which is not the property of the company.

Page 23

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

16.


Fiduciary assets and liabilities

The following fiduciary assets and liabilities held by the company have been included in net current assets:


31 December
31 March
2023
2023
£
£


Insurance broking debtor (note 13)
16,377,646
15,074,547

Fiduciary cash and deposits
5,703,107
5,310,785

Insurance broking creditors (note 16)
(20,804,979)
(19,144,519)

1,275,774
1,240,813


Net fiduciary assets mainly comprise brokerage commission due to the company, included within insurance broking debtors.


17.


Creditors: Amounts falling due within one year

31 December
31 March
2023
2023
£
£

Net broking creditors
20,804,979
19,144,519

Trade creditors
148,500
175,720

Taxation and social security
1,505,957
767,752

Other creditors
15,437
17,626

Accruals and deferred income
132,887
113,174

22,607,760
20,218,791


Page 24

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

18.


Financial instruments

31 December
31 March
2023
2023
£
£

Financial assets


Financial assets that are debt instruments measured at amortised cost
16,426,186
15,193,192

Financial assets that are equity instruments measured at cost less impairment
4,288
4,918

16,430,474
15,198,110


Financial liabilities


Financial liabilities measured at amortised cost
21,071,803
19,428,360


Financial assets that are debt instruments measured at amortised cost comprise net broking debtors, other debtors and other company loans in both the current and preceding period.


Financial assets that are equity instruments measured at cost less impairment comprise fixed asset investments only in both the current and preceding period.


Financial liabilities measured at amortised cost comprise trade creditors, accruals, other creditors and net broking creditors in both the current and preceding period.

Page 25

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

19.


Deferred taxation






2023
2023


£

£






At beginning of year
(48,798)
(36,664)


Charged to profit or loss
18,441
(12,134)



At end of year
(30,357)
(48,798)

The provision for deferred taxation is made up as follows:

31 December
31 March
2023
2023
£
£


Accelerated capital allowances
(30,357)
(48,798)

(30,357)
(48,798)


20.


Share capital

31 December
31 March
2023
2023
£
£
Allotted, called up and fully paid



32,000 (2023 -32,000) Ordinary A shares of £1.00 each
32,000
32,000
32,000 (2023 -32,000) Ordinary B shares of £1.00 each
32,000
32,000
31,000 (2023 -31,000) Ordinary C shares of £1.00 each
31,000
31,000
5,000 (2023 -5,000) Ordinary D shares of £1.00 each
5,000
5,000

100,000

100,000


All classes of shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not confer any rights of redemption.



21.


Reserves

Profit & loss account

Includes all current and prior year retained profits and losses.

Page 26

 
ALAN BLUNDEN & CO. LTD
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023

22.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The company also contributes to personal pension schemes from time to time. The pension cost charge represents contributions payable by the company to these funds and amounted to £51,742 (2023: £83,683). Contributions totalling £15,437 (2023: £17,096) were payable to these funds at the balance sheet date and are included in creditors.


23.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

31 December
31 March
2023
2023
£
£


Not later than 1 year
1,243
4,971

1,243
4,971


24.


Related party transactions

During the period the company paid £52,500 (2023: £70,000) for rent of business premises and £78,490 (2023: £58,401) in service charges to Baxter Building Limited.
During the period the company paid £97,908 (2023: £157,344) in salaries to close family members of the directors of the company.
The company has taken advantage of the exemption in FRS102 which does not require disclosure of transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.


25.


Controlling party

The immediate parent company is AmTrust International Limited, the company is registered in Bermuda and is the smallest group in which the results of Alan Blunden & Co. Limited are included.
The company's ultimate parent company and controlling party is Evergreen Parent GP LLC, a company registered in the USA and is the largest group in which the results of the company are consolidated. Copies of the group financial statements are available from Washington Mall, 7 Reid Street Suite 400 Hamilton, HM11, Bermuda. 

 
Page 27