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Registration number: 10096688

Legal Protection Group Limited

Annual Report and Unaudited Filleted Financial Statements

for the Year Ended 31 December 2023

 

Legal Protection Group Limited

Contents

Balance Sheet

1

Notes to the Unaudited Financial Statements

2 to 8

 

Legal Protection Group Limited

(Registration number: 10096688)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

8,711

7,489

Investments

5

731,832

600,766

 

740,543

608,255

Current assets

 

Debtors

6

2,171,146

1,530,079

Cash at bank and in hand

 

976,371

1,277,887

 

3,147,517

2,807,966

Creditors: Amounts falling due within one year

7

(3,549,320)

(2,825,364)

Net current liabilities

 

(401,803)

(17,398)

Net assets

 

338,740

590,857

Capital and reserves

 

Called up share capital

1,000,000

1,000,000

Retained earnings

(661,260)

(409,143)

Shareholders' funds

 

338,740

590,857

For the financial year ending 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 24 September 2024 and signed on its behalf by:
 


M Rowan
Director

 

Legal Protection Group Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 8 Pinkers Court
Briarland Office Park
Gloucester Road
Rudgeway
Bristol
BS35 3QH
England

These financial statements were authorised for issue by the Board on 24 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover represents commission income on ATE and BTE cases. In accordance with FRS102, turnover in respect of cases which are contingent on future events outside of the control of the Company is not recognised until the contingent event has occurred.

For policies that have been issued where the final outcome can be assessed with reasonable certainty, income is recorded when the policy is issued less a provision in respect of any contingent element based on industry benchmarks. No value is placed on accrued income in respect of contingent fee cases in accordance with FRS102 where there is insufficient certainty as to the outcome of the case to justify the recognition as an asset.

 

Legal Protection Group Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Computer and IT equipment

33% straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

 

Legal Protection Group Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

 

Legal Protection Group Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 36 (2022 - 20).

 

Legal Protection Group Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

4

Tangible assets

Office equipment
£

Total
£

Cost or valuation

At 1 January 2023

12,327

12,327

Additions

5,724

5,724

At 31 December 2023

18,051

18,051

Depreciation

At 1 January 2023

4,838

4,838

Charge for the year

4,502

4,502

At 31 December 2023

9,340

9,340

Carrying amount

At 31 December 2023

8,711

8,711

At 31 December 2022

7,489

7,489

5

Investments

2023
£

2022
£

Investments

731,832

600,766

Subsidiaries

£

Cost or valuation

At 1 January 2023

600,766

Additions

131,066

At 31 December 2023

731,832

Provision

Carrying amount

At 31 December 2023

731,832

At 31 December 2022

600,766

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

 

Legal Protection Group Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Legal Protection Group (Canada) Ltd

Canada

75%

75%

Legal Protection Insurance (Ireland) DAC

Ireland

75%

75%

Legal Claims Group Ltd

England & Wales

100%

100%

Subsidiary undertakings

Legal Protection Group (Canada) Ltd

The principal activity of Legal Protection Group (Canada) Ltd is Dormant.

Legal Protection Insurance (Ireland) DAC

The principal activity of Legal Protection Insurance (Ireland) DAC is Dormant.

Legal Claims Group Ltd

The principal activity of Legal Claims Group Ltd is Dormant.

Capital investments

The following investments are in associated risk carriers to the Company in the form of cash capital investments. They are held at cost and form part of the capital adequacy requirements of the regulated entities.

Avonbridge PCC £681,065
City and Commercial Insurance Company PCC Limited £ 50,000

 

6

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

118,633

105,804

Amounts owed by related parties

317,550

317,550

Prepayments

 

44,659

62,954

Other debtors

 

1,690,304

1,043,771

   

2,171,146

1,530,079

 

Legal Protection Group Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 December 2023

7

Creditors

Creditors: amounts falling due within one year

2023
£

2022
£

Due within one year

Trade creditors

115,871

120,199

Taxation and social security

128,756

93,727

Accruals and deferred income

210,774

409,010

Other creditors

3,093,919

2,202,428

3,549,320

2,825,364