Armour Risk Management Limited
Financial Statements
For the year ended 31 December 2023
Pages for Filing with Registrar
Company Registration No. 07111972 (England and Wales)
Armour Risk Management Limited
Contents
Page
Balance sheet
1
Notes to the financial statements
2 - 7
Armour Risk Management Limited
Balance Sheet
As at 31 December 2023
31 December 2023
Page 1
2023
2022
as restated
Notes
£
£
£
£
Current assets
Debtors
3
364,799
484,358
Creditors: amounts falling due within one year
4
(1,254,591)
(1,259,278)
Net current liabilities
(889,792)
(774,920)
Capital and reserves
Called up share capital
5
100
100
Profit and loss reserves
(889,892)
(775,020)
Total equity
(889,792)
(774,920)
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 25 September 2024
J A Rotman
Director
Company Registration No. 07111972
Armour Risk Management Limited
Notes to the Financial Statements
For the year ended 31 December 2023
Page 2
1
Accounting policies
Company information
Armour Risk Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is 30 Old Bailey, London, United Kingdom, EC4M 7AU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
The company ceased trading on 30 June 2021 and the intention is for the company to be liquidated as soon as the outstanding litigation over cases brought by former policyholders of Elite Insurance Company Limited are closed. Further details of the claims are included in note 9.
This is proposed to be a solvent liquidation. The director has therefore determined that the going concern basis is no longer appropriate and these statements have been prepared on a basis other than going concern.
The adoption of a basis of preparation other than going concern has not resulted in any changes to the recognition and measurement of assets, liabilities, income or expenses included within the financial statements. No provisions have been recognised as a result of adopting a basis of preparation other than going concern.
1.3
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.
1.4
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Armour Risk Management Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
1
Accounting policies
(Continued)
Page 3
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.5
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.6
Provisions
(i) Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligations.
(ii) Contingencies
Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (i) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company's control. Contingent liabilities are disclosed in the financial statements unless the profitability of an outflow of resources is remote.
Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefits is probable.
1.7
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.
1.8
Irrecoverable value added tax is expended through the income statement.
Armour Risk Management Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 4
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
No staff were employed by the company after the company ceased trading on 30 June 2021.
3
Debtors
2023
2022
as restated
Amounts falling due within one year:
£
£
Corporation tax recoverable
62,150
62,150
Other debtors
302,649
422,208
364,799
484,358
4
Creditors: amounts falling due within one year
2023
2022
as restated
£
£
Amounts owed to group undertakings
1,105,556
1,105,556
Accruals and deferred income
149,035
153,722
1,254,591
1,259,278
At 31 December 2023, amount owed to group undertakings includes a £1,106k (2022: £1,106k) loan facility with Armour Group Limited which is repayable on demand.
5
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
Armour Risk Management Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 5
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Emphasis of matter - financial statements prepared on a basis other than going concern
We draw attention to note 1.2 of the financial statements which explains that the company has ceased trading and the director intends to liquidate the company after the resolution of on-going litigation. Further details of the claims are included in note 9. The director does not consider it to be appropriate to adopt the going concern basis of accounting in preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern. Our opinion is not modified in respect of this matter.
Senior Statutory Auditor:
Darren Jordan
Statutory Auditor:
Moore Kingston Smith LLP
Armour Risk Management Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
Page 6
7
Related party transactions
At year end, the company has a loan from Armour Group Limited, its ultimate parent company of £1,105,556 (2022: £1,105,556).
8
Parent company
The company is a 100% subsidiary of Armour Risk Services (Bermuda) Limited; a company incorporated in Bermuda and considered to be its parent company. Armour Risk Services (Bermuda) Limited, is itself owned by Armour Group Limited, a company incorporated in Bermuda and the director considers this company to be the ultimate parent company.
Aquiline Holdings GP (Offshore) Limited, an entity controlled by Mr. J W Greenberg is the ultimate controlling party by virtue of their shareholding in the ultimate parent company.
9
Litigation
The company is currently engaged in litigation over cases brought by former policyholders of Elite Insurance Company Limited. Based on the information received to date, the director's view is that none of these cases have merit and for two of the cases provisions of €7,929 and €106,489 have been made in the accounts based on the event of a potential payout being required. The timing of resolution of these cases is uncertain being dependent on the French judicial process.
10
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Dec 2022
£
£
£
Current assets
Debtors due within one year
555,908
(71,550)
484,358
Creditors due within one year
Other creditors
(1,334,130)
74,852
(1,259,278)
Net assets
(778,222)
3,302
(774,920)
Capital and reserves
Profit and loss reserves
(778,322)
3,302
(775,020)
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 December 2022
£
£
£
Administrative expenses
(241,486)
3,302
(238,184)
Loss for the financial period
(241,257)
3,302
(237,955)
Armour Risk Management Limited
Notes to the Financial Statements (Continued)
For the year ended 31 December 2023
10
Prior period adjustment
(Continued)
Page 7
Reconciliation of changes in equity
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Exchange Gain
-
3,302
Equity as previously reported
(536,965)
(778,222)
Equity as adjusted
(536,965)
(774,920)
Analysis of the effect upon equity
Profit and loss reserves
-
3,302
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Exchange Gain
3,302
Loss as previously reported
(241,257)
Loss as adjusted
(237,955)
Notes to reconciliation
The prior period adjustment is to correct related party balances between two different parties, bank receipt during 2022 from one party has mistakenly treated as received from the parent company.