Company Registration No. 02208091 (England and Wales)
KBIS LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
KBIS LIMITED
COMPANY INFORMATION
Directors
Mr G R Prest
Mrs E A Prest
Mr L W E Gill
Mr W Downey
Mr J J Hanly
Ms C Lebecq
Mr L D Anderson
(Appointed 19 January 2023)
Company number
02208091
Registered office
6th Floor, One America Square
17 Crosswall
London
EC3N 2LB
Auditor
Arnold Hill & Co LLP
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
KBIS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 19
KBIS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the Strategic Report and financial statements of KBIS Limited (the "Company") for the year ended 31 December 2023.

Fair review of the business

The principal activity of the Company in the period under review is to fulfil most of the insurance requirements of horse owners and equestrian businesses and associations.

S172 Statement
Introduction
The Directors consider that they have adhered to the requirements of section 172 of the Companies Act 2006 (the "Act") and have, in good faith, acted in a way that they consider would be most likely to promote the success of the Company for the benefit of its members and have had regard to and recognised the importance of considering all stakeholders (as set out in section 172(1)(a-f) of the Act) in its decision making.
Corporate governance framework and stakeholder engagement
For the financial period ended 31 December 2023, the Company continued to act in accordance with the corporate governance arrangements which are embedded across the Group's ultimate shareholders. These shareholders support the delivery of strategic and business objectives within a framework of best corporate governance practice. The Company is clear that good governance and effective communications are essential on to protect the reputation and relationships with all its stakeholder community. The Company is committed to health and safety standards and social responsibility.
Decision making
In all decision making, the directors act in good faith in a manner most likely to promote the success of the Company, and in doing so always has regard to :
- The likely consequences of any decision in the long term;
- The interests of the Company's employees;
- The need to foster the Company's business relationships with suppliers, customers and others;
- The impact of the Company's operations on the community and the environment;
- The desirability of the Company maintaining a reputation for high standards of business conduct;
- the need to act fairly as between members of the Company.
Composition of the Board
The Directors of the Company have given careful consideration to the size and structure of the Board in order to meet the operational and financial needs and challenges of the business. Also, that the Directors have a suitable level of knowledge and expertise to enable them to discharge any decision making responsibilities appropriately.
Engagement to stakeholders
The long-term success of our business is dependent on building strong supportive relationships and shared values with our stakeholders. In order to meet its strategic objectives, the Company has developed mutually beneficial relationships with stakeholders, including, shareholders, colleagues, suppliers, customers, regulators and local communities. The Company ensures that such relationships are established and managed in line with the core principles and values of the Company. The directors supervise and evaluate the management of the company on the priorities related to suppliers, customers, local communities and those with whom the company is in relation and ensure their reinforcement.
Key performance indicators

The profit for the year, after taxation, was in line with expectations and amounted to £1,256,498 (2022: £922,391). The year to 31 December 2023 produced a turnover of £3,018,003 (2022: £3,053,174).

KBIS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The Company is exposed to financial risk through its financial assets and liabilities. The key financial risk to the business is to ensure that the financial assets of the Company exceed the financial liabilities in a manner consistent with the financial resources requirement of the Financial Conduct Authority, the Company's regulator.

 

The most important components of the financial risk are interest rate risk, currency risk, credit risk, liquidity risk and cash flow risk. Due to the Company's business and assets and liabilities contained in the Company's balance sheet the only financial risks the directors consider relevant are currency risk, liquidity risk, cash flow risk and credit risk. Currency risk is mitigated through the general practice of maintaining all foreign transactions in that particular currency, therefore removing any transaction gains/losses.

 

Liquidity risk and cash flow risk are managed in a number of different ways, principally due to the nature of the business. The Company agrees terms with suppliers that do not necessitate the payments of significant sums in advance. In addition, a liability to an underwriter is usually recognised at the same time as a customer receivable.

 

Cash flow risk is managed by control over income received. Due to the Company's nature, customers pay monthly, quarterly or yearly depending on the policy and renewal terms relating to the period.

 

Credit risks are mitigated by the nature of the debtor balances owed and through the internal control environment identifying recoverability issues.

 

The Directors continually review these key risks and uncertainties and believe that the Company is well placed to manage these and that the business will develop satisfactorily in the future.

On behalf of the board

Mr J J Hanly
Director
20 September 2024
KBIS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and audited financial statements of KBIS Limited for the period ended 31 December 2023.

 

Incorporation and registered office

The Company is incorporated in England and Wales. The registered office of the Company is 6th Floor, One America Square, 17 Crosswall, London, EC3N 2LB.

Principal activities

The principal activity of the Company in the period under review is to fulfill most of the insurance requirements of horse owners and equestrian businesses and associations.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr G R Prest
Mrs E A Prest
Mr L W E Gill
Mr W Downey
Mr J J Hanly
Ms C Lebecq
Mr L D Anderson
(Appointed 19 January 2023)
Auditor

The auditors, Arnold Hill & Co LLP, are deemed to be reappointed under Section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as the directors are aware, there is no relevant audit information of which the Company’s auditors are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the Company’s auditors are aware of that information.

On behalf of the board
Mr J J Hanly
Director
20 September 2024
KBIS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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 UK 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 of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to:

 

 

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

KBIS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF KBIS LIMITED
- 5 -
Opinion

We have audited the financial statements of KBIS Limited (the 'Company') for the year ended 31 December 2023 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and 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 FRS 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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.

Opinions on other matters prescribed by the Companies Act 2006

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

KBIS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KBIS LIMITED
- 6 -
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 and the Directors' Report.

 

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:

 

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement, 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.

Auditor's 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 auditor's 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.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

Our approach was as follows:

 

KBIS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF KBIS LIMITED
- 7 -

 

 

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 auditor's 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.

Stephanie Evans
Senior Statutory Auditor
For and on behalf of Arnold Hill & Co LLP
23 September 2024
Chartered Accountants
Statutory Auditor
Sixth Floor
Capital Tower
91 Waterloo Road
London
SE1 8RT
KBIS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
3,018,003
3,053,174
Administrative expenses
(2,365,747)
(2,440,943)
Other operating income
417,414
268,491
Operating profit
4
1,069,670
880,722
Interest receivable and similar income
7
24,698
4,729
Profit on ordinary activities before taxation
1,094,368
885,451
Taxation
8
162,130
36,940
Profit/(loss) for the year/period
1,256,498
922,391
Total comprehensive income for the year/period
1,256,498
922,391

The profit and loss account has been prepared on the basis that all operations are continuing operations.

 

There are no recognised gains and losses other than those passing through the profit and loss account.

KBIS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
-
0
7,662
Current assets
Debtors
10
5,161,663
3,535,399
Cash at bank and in hand
1,470,294
2,100,169
6,631,957
5,635,568
Creditors: amounts falling due within one year
11
(3,400,158)
(3,666,013)
Net current assets
3,231,799
1,969,555
Total assets less current liabilities
3,231,799
1,977,217
Provisions for liabilities
Deferred tax liability
12
-
0
1,916
-
(1,916)
Net assets
3,231,799
1,975,301
Capital and reserves
Called up share capital
13
10,000
10,000
Profit and loss reserves
3,221,799
1,965,301
Total equity
3,231,799
1,975,301
The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
Mr J J Hanly
Director
Company Registration No. 02208091
KBIS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
10,000
1,042,910
1,052,910
Period ended 31 December 2022:
Profit and total comprehensive income
-
922,391
922,391
Balance at 31 December 2022
10,000
1,965,301
1,975,301
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,256,498
1,256,498
Balance at 31 December 2023
10,000
3,221,799
3,231,799
KBIS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
15
(849,378)
(331,075)
Income taxes refunded/(paid)
194,805
(6,368)
Net cash outflow from operating activities
(654,573)
(337,443)
Investing activities
Interest received
24,698
4,729
Net cash generated from investing activities
24,698
4,729
Net cash used in financing activities
-
-
Net decrease in cash and cash equivalents
(629,875)
(332,714)
Cash and cash equivalents at beginning of year
2,100,169
2,432,883
Cash and cash equivalents at end of year
1,470,294
2,100,169
KBIS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

KBIS Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6th Floor, One America Square, 17 Crosswall, London, EC3N 2LB.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional and presentational currency of the Company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents commission earned on insurance contracts, and excludes value added tax and insurance premium tax.

1.4
Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Fixtures, fittings & equipment
25% straight line basis
Computer equipment
25% straight line basis

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.6
Financial assets

The Company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial assets are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument. Basic financial assets, which include amounts owed from undertakings, other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method, less any impairment.

 

Interest is recognised by applying the effective interest rate, except for short-term receivables when the recognition of interest would be immaterial.

KBIS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.7
Financial liabilities

Financial liabilities, including amounts owed to affiliated undertakings and other creditors, are initially measured at transaction price. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method, except for short-term payables when the recognition of interest would be immaterial.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred taxation is recognised in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the Company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

The Company operates a defined contribution scheme for the benefit of its employees. The assets of the scheme are held separately from those of the Company. Contributions payable are charged to the profit and loss account in the year they are payable.

1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease.

1.12
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.13

Claims handling income and costs

The Company administers some claims on behalf of underwriters. The Company recognises the costs associated with claims handling in the year in which they are incurred. Any revenues from underwriters for the provision of handling claims are recognised as turnover in the period in which they are received.

KBIS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2
Judgements and key sources of estimation uncertainty

In the application of the Company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover

An analysis of the Company's turnover, is as follows:

2023
2022
£
£
Turnover
Premiums received
14,598,974
13,912,128
Payable to underwriters
(11,580,971)
(10,858,954)
3,018,003
3,053,174

All turnover was earned within the United Kingdom.

4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Loss on foreign exchange transactions
(144)
-
0
Fees payable to the Company's auditors for the audit of the Company's annual accounts
- for audit services
12,000
11,600
- for other services
13,896
21,760
Depreciation of tangible assets
7,662
9,398
Operating lease rentals
40,000
40,000
5
Employees

The average monthly number of persons (including directors) employed by the Company during the year was:

2023
2022
Number
Number
Claims
7
6
Finance
2
2
Horse
10
12
Horsebox
3
4
Liability
9
10
Management
7
7
Other
1
1
KBIS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 15 -
Total
39
42

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,147,873
1,296,098
Social security costs
113,048
137,774
Pension costs
60,373
58,692
1,321,294
1,492,564
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
175,222
109,695
Company pension contributions to defined contribution schemes
5,100
3,714
180,322
113,409

Key management personnel are defined as directors. Remuneration for key management personnel is included within directors' remuneration.

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Bank interest
24,698
4,729
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
158,123
Adjustments in respect of prior periods
(160,214)
(192,714)
Total current tax
(160,214)
(34,591)
Deferred tax
Origination and reversal of timing differences
(1,916)
(2,349)
Total tax credit
(162,130)
(36,940)
KBIS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 16 -

The actual credit for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,094,368
885,451
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
257,176
168,236
Tax effect of expenses that are not deductible in determining taxable profit
2,211
1,567
Tax effect of utilisation of tax losses not previously recognised
-
0
(12,266)
Adjustments in respect of prior years
(160,214)
(192,714)
Group relief
(259,387)
(1,002)
Depreciation in excess of capital allowances
-
0
1,588
Deferred tax movements
(1,916)
(2,349)
Taxation credit for the year
(162,130)
(36,940)
9
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
Cost
At 1 January 2023
8,253
200,512
208,765
Disposals
(8,253)
(200,512)
(208,765)
At 31 December 2023
-
0
-
0
-
0
Depreciation and impairment
At 1 January 2023
7,896
193,207
201,103
Depreciation charged in the year
357
7,305
7,662
Eliminated on disposals
(8,253)
(200,512)
(208,765)
At 31 December 2023
-
0
-
0
-
0
Carrying amount
At 31 December 2023
-
0
-
0
-
0
At 31 December 2022
357
7,305
7,662

Following a review of the company's fixed asset register at the year end, the Company determined that all assets remaining on the register were no longer in use, and has consequently derecognised them.

KBIS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,422,653
951,667
Corporation tax recoverable
-
0
192,714
Amount due from parent undertaking
3,672,327
2,321,557
Other debtors
1,204
1,204
Prepayments and accrued income
65,479
68,257
5,161,663
3,535,399
11
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
2,349,395
2,501,498
Amounts due to fellow group undertakings
886,122
787,682
Corporation tax
-
0
158,123
Accruals and deferred income
164,641
218,710
3,400,158
3,666,013

The Company has granted a debenture over its assets as security to its bank.

12
Deferred taxation

Deferred tax assets and liabilities are offset where the Company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
-
1,916
-
1,916
2023
Movements in the year:
£
Liability at 1 January 2023
1,916
Credit to profit or loss
(1,916)
Liability at 31 December 2023
-
KBIS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
13
Share capital
2023
2022
£
£
Ordinary share capital
10,000 Ordinary shares of £1 each
10,000
10,000
14
Operating lease commitments

 

At the reporting date the Company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Land and buildings
2023
2022
£
£
Operating leases which expire
Within one year
42,000
40,000
Between two and five years
151,556
-
0
193,556
40,000

The operating lease commitments are calculated up to the break date of the lease with fixed rental payments.

15
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
1,256,498
922,391
Adjustments for:
Taxation credited
(162,130)
(36,940)
Investment income
(24,698)
(4,729)
Depreciation of tangible fixed assets
7,662
9,398
Movements in working capital:
Increase in debtors
(1,818,978)
(1,359,262)
(Decrease)/increase in creditors
(107,732)
138,067
Cash absorbed by operations
(849,378)
(331,075)
KBIS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
16
Related party transactions

Rent and rates of £40,000 (2022: £40,000) were charged to KBIS Limited by a partnership in which two of the Company's directors are partners.

 

During the current period, the Company paid £151,436 (2022: £222,342) to ParaCode Limited, a company controlled by Mr G R Prest and Mrs E Prest who are directors of the Company, in relation to licence fees for software costs.

 

The Company has taken advantage of the exemption available in accordance with Financial Reporting Standard 102 Section 33 "Related Party Transactions" not to disclose transactions entered into between two or more members of a group, as the Company is a wholly owned subsidiary undertaking of the group to which it is party to the transactions.

17
Control

The directors consider Saturn Jersey Topco Limited, a company incorporated in the Channel Islands, to be the Company's ultimate parent undertaking. The immediate parent company is KBIS Holdings Limited, a company registered in England and Wales.

 

The ultimate controllers of this Company is HGGC IV, L.P. a fund which is managed by HGGC, a company incorporated in the United States of America. The address of HGGC is 1950 University Avenue, Palo Alto, California, 94303.

 

The parent company of the largest Group to include the Company within its consolidated financial statements is Saturn Jersey Topco Limited, incorporated in the Channel Islands, and the smallest group is Specialist Risk Investments Limited, incorporated in England and Wales. Copies of these financial statements are available on the Companies House website.

18
Events after the reporting date

In June 2024, the Company acquired business renewal rights and policyholder information from a 3rd party for initial consideration of £150,000.

19
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,100,169
(629,875)
1,470,294
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