Company Registration No. 13809098 (England and Wales)
BLU NICHE RISK SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
LB GROUP
1 Vicarage Lane
Stratford
London
England
E15 4HF
BLU NICHE RISK SERVICES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 7
BLU NICHE RISK SERVICES LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
1,553
2,783
Current assets
Debtors
6
760,661
176,171
Cash at bank and in hand
42,207
24,881
802,868
201,052
Creditors: amounts falling due within one year
7
(870,777)
(169,570)
Net current (liabilities)/assets
(67,909)
31,482
Total assets less current liabilities
(66,356)
34,265
Creditors: amounts falling due after more than one year
8
(425,457)
(401,654)
Net liabilities
(491,813)
(367,389)
Capital and reserves
Called up share capital
9
1
1
Capital redemption reserve
72,101
72,101
Distributable profit and loss reserves
(563,915)
(439,491)
Total equity
(491,813)
(367,389)

The directors of the company have 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 by the board of directors and authorised for issue on 25 September 2024 and are signed on its behalf by:
Mr P Horncastle
Director
Company Registration No. 13809098
BLU NICHE RISK SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

Blu Niche Risk Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, 8 Lloyd's Avenue, London, EC3N 3EL.

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 disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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 made a loss of £124,424 (2022: loss of £439,491) during the year ended 31 December 2023 and at that date its liabilities exceed its assets by £491,813 (2022: £367,389). true

 

The company is therefore dependant on the continued support of its group companies, including continued access to the parent company cash loan facility of £800,000.

 

The company has prepared a cash flow forecast which indicates that the company is expected to be profitable in 2024 and 2025 and would generate sufficient cash flow to meet its minimum expenditure commitments and to support its current level of corporate overheads.

 

The parent company has confirmed its intension to provide any additional necessary financial support for a minimum of 12 months from the date of the approval of financial statements in addition to the existing loan

 

At the time of approving of the financial statements the directors have considered the availability of the financial support described above and are of opinion that parent company has adequate resources in order to fulfil this requirement for the foreseeable future. Therefore, the directors, with on-going support, have adopted the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

The company generates revenue principally from commissions and fees associated with underwriting and administering insurance contracts.

 

Commission receivable is recognised on the commencement of the insurance contracts concerned, which is when brokerage, commission and fees not due until after the year end are recognised on the inception of the insurance contracts concerned, which is when the underwriting services have been substantially completed.

 

Adjustments to commissions are recognised when they can be ascertained with reasonable certainty, which is normally when the amounts concerned are advised or confirmed by the relevant third parties.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

BLU NICHE RISK SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Computers
33% straight line

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
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.6
Cash and cash equivalents

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

1.7
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.

BLU NICHE RISK SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.

1.8
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.

1.9
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

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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.

BLU NICHE RISK SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
3
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
6,000
5,000
4
Employees

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

2023
2022
Number
Number
Total
6
2
5
Tangible fixed assets
Computers
£
Cost
At 1 January 2023 and 31 December 2023
3,884
Depreciation and impairment
At 1 January 2023
1,101
Depreciation charged in the year
1,230
At 31 December 2023
2,331
Carrying amount
At 31 December 2023
1,553
At 31 December 2022
2,783
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
651,244
160,119
Other debtors
109,417
16,052
760,661
176,171
BLU NICHE RISK SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
7
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
254,731
101,334
Amounts owed to group undertakings
573,378
25,201
Taxation and social security
18,466
6,925
Other creditors
24,202
36,110
870,777
169,570

Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.

8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to group undertakings
425,457
401,654

The company's financing facility includes a loan from its immediate parent company amounting to £425,457 (2022: £401,654) as at 31 December 2023. The loan accrues interest at a rate of six months SONIA plus 2.0%. The loan is due for repayment in full in 2027. In line with accounting requirements, the group loan liability has been discounted back to the present value of future cashflows. Management considers 10% to be a reasonable estimate of the market rate of interest for similar debt instruments. Total interest of £21,567 (2022: £31,829) was charged during the period ended 31 December 2023.

9
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of 0.1p each
1,000
1,000
1
1
Ordinary B of 0.1p each
313
313
-
-

There are two class of ordinary shares. The B shares have no voting rights or rights to a dividend.

 

Profit and loss reserve

 

This reserve relates to the cumulative profit and loss less the amounts distributed to shareholders.

 

Capital Contribution reserve

 

This reserve represents the present value adjustment in the respect of initial recognition of group loans, using the effective interest method.

BLU NICHE RISK SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
10
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.

Senior Statutory Auditor:
Richard Lane
Statutory Auditor:
LB Group (Stratford)
11
Events after the reporting date

Subsequent to year end, on 14 February 2024, 54 additional B class ordinary shares and 102 new C class ordinary shares were issued at a nominal value of 0.1p. The shares have no voting rights or rights to dividends.

12
Related party transactions

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

 

NuVenture International Limited, an immediate parent undertaking, has provided the Company with an ongoing cash loan facility of £800,000. Interest is charged in accordance to note 8. As at 31 December 2023 the Company owed £425,457 (2022: £401,654) to NuVenture International Limited in respects to this loan and accrued interest.

 

The ultimate controlling party is Mr. A Balakrishnan.

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