REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 31 January 2024 |
for |
BROKER INSIGHTS LIMITED |
REGISTERED NUMBER: |
Financial Statements |
for the Year Ended 31 January 2024 |
for |
BROKER INSIGHTS LIMITED |
BROKER INSIGHTS LIMITED (REGISTERED NUMBER: SC574407) |
Contents of the Financial Statements |
for the Year Ended 31 January 2024 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
BROKER INSIGHTS LIMITED |
Company Information |
for the Year Ended 31 January 2024 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
Northern Assurance Buildings |
9-21 Princess Street |
Manchester |
M2 4DN |
BROKER INSIGHTS LIMITED (REGISTERED NUMBER: SC574407) |
Balance Sheet |
31 January 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
Fixed assets |
Intangible assets | 5 |
Tangible assets | 6 |
Investments | 7 |
Current assets |
Debtors: amounts falling due within one year | 8 |
Debtors: amounts falling due after more than one year |
8 |
Cash at bank |
Creditors |
Amounts falling due within one year | 9 |
Net current assets |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
10 |
Net assets |
Capital and reserves |
Called up share capital | 13 |
Share premium |
Retained earnings | ( |
) | ( |
) |
Shareholders' funds |
In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
BROKER INSIGHTS LIMITED (REGISTERED NUMBER: SC574407) |
Notes to the Financial Statements |
for the Year Ended 31 January 2024 |
1. | Statutory information |
Broker Insights Limited is a |
2. | Statement of compliance |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. |
3. | Accounting policies |
Basis of preparing the financial statements |
The company and its subsidiaries comprise a small group. The company has therefore taken advantage of Section 398 of the Companies Act 2006 not to prepare group accounts. |
Going concern |
The financial statements have been prepared on a going concern basis. The directors have taken steps to ensure that they believe the going concern basis of preparation remains appropriate. The key conditions are summarized below: |
- Following receipt of the successful £3.85m CLN issue in February 2024 the Directors have prepared cash flow forecasts extending to January 2026. The cash flow forecasts are a base case, prudent scenario. |
- The base scenario shows that the Company will breach its existing overdraft facilities and hence require further funding by April 2025, for which the directors have received non-binding assurances of further investment from the company's current investors sufficient to meet the forecast future funding requirements. Furthermore, and fully aligned with the company's strategic planning, unique product and position in an expanding market, further funding will be secured from either the company's current investors and/or an external funding raising exercise. |
- In a worst-case scenario, further funding, in addition to the funding required in the base scenario, would be needed within 12 months from the date of signing the financial statements. |
Based on the above indications and assumptions, the Directors believe that it remains appropriate to prepare the financial statements on a going concern basis. |
The Directors consider a worst-case scenario to be a severe yet plausible scenario. These events or conditions indicate that a material uncertainty exists that may cast doubt on the company's ability to continue as a going concern and therefore it may be unable to realise its assets and discharge its liabilities in the normal course of business. |
Significant judgements and estimates |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There are not considered to be any critical judgements in applying the company's accounting policies. The company makes estimates assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amounts of assets or liabilities within the next financial year are addressed below. |
Amounts due from group undertaking |
There is a balance due from group undertakings of £1,210,571 (2023 : £607,453). The loan has been provided as start up funding and recoverability has been assessed by reference to forecasts and business plans. It was concluded that a provision against this balance is not required. |
BROKER INSIGHTS LIMITED (REGISTERED NUMBER: SC574407) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
3. | Accounting policies - continued |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services and from software platform fees. Turnover is reduced for estimated discounts, rebates and other similar allowances. |
Rendering of services |
Turnover from the rendering of services is recognised by reference to the services provided in the period being reported on.The turnover recognised is in line with the rates as per the underlying contracts. |
Software platform fees |
Fees for the use of the Broker Insights software platform are recognised over the period of the software access licence. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases: |
Motor Vehicles 15% straight line |
Computer Equipment 3 years |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Financial instruments |
(i) Financial assets |
Basic financial assets, including trade and other debtors and cash and bank balances, are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
There are no assets which are initially measured at fair value. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other creditors, bank loans, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
BROKER INSIGHTS LIMITED (REGISTERED NUMBER: SC574407) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
3. | Accounting policies - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Other income |
Other income is recognised on an accruals basis. |
4. | Employees and directors |
The average number of employees during the year was |
5. | Intangible fixed assets |
Other |
intangible |
assets |
£ |
Cost |
At 1 February 2023 |
Additions |
At 31 January 2024 |
Amortisation |
At 1 February 2023 |
Charge for year |
At 31 January 2024 |
Net book value |
At 31 January 2024 |
At 31 January 2023 |
BROKER INSIGHTS LIMITED (REGISTERED NUMBER: SC574407) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
6. | Tangible fixed assets |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Cost |
At 1 February 2023 |
Additions |
At 31 January 2024 |
Depreciation |
At 1 February 2023 |
Charge for year |
At 31 January 2024 |
Net book value |
At 31 January 2024 |
At 31 January 2023 |
7. | Fixed asset investments |
Shares in |
group |
undertakings |
£ |
Cost |
At 1 February 2023 |
and 31 January 2024 |
Net book value |
At 31 January 2024 |
At 31 January 2023 |
8. | Debtors |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Other debtors |
Amounts falling due after more than one year: |
Amounts owed by group undertakings |
Aggregate amounts |
BROKER INSIGHTS LIMITED (REGISTERED NUMBER: SC574407) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
9. | Creditors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Taxation and social security |
Other creditors |
10. | Creditors: amounts falling due after more than one year |
2024 | 2023 |
£ | £ |
Bank loans |
Other creditors |
11. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
12. | Secured debts |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank overdraft |
Bank loans |
The bank loan and bank overdraft are secured by a fixed and floating charge over all assets of the company. |
13. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary Shares | 0.001 | 1,016 | 1,006 |
Ordinary A1 Shares | 0.001 | 237 | 237 |
Ordinary A2 Shares | 0.001 | 17 | 17 |
1,270 | 1,260 |
BROKER INSIGHTS LIMITED (REGISTERED NUMBER: SC574407) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
13. | Called up share capital - continued |
All shares are ranked pari pasu. |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
The share premium account includes the premium on issue of equity share, net of any issue cost. |
On 20 December 2019, share options were granted to purchase 978 share options for an exercise price of £3.066 per share exercisable between 3 and 10 years after they were granted. In February 2021 and March 2021, share options were granted to purchase 18,920 share options for an exercise price of £6.96 per share exercisable between 3 and 10 years after they were granted. During the year-end, 1,750 shares were exercised following a termination of employment. The remaining share options were terminated. |
On 15 July 2022 and 22 July 2022, shares options were granted to purchase 18,000 share options for an exercise price of £23.58 per share exercisable between 3 and 10 years after they were granted. |
On 12 October 2022, share options were granted to purchase 25,050 share options for an exercise price of £0.001 per share exercisable 1 April 2024. During the year, 8,355 share options were exercised following a termination of employment. The remaining share options were terminated. |
Between June 2023 and December 2023, share options were granted to purchase 45,500 share options for an exercise price of £23.58 per share exercisable between 3 and 10 years after they were granted. |
On 08 June 2023, share options were granted to purchase 638 share options and an additional 142 share options per month thereafter for an exercise price of £0.001 per share, exercisable immediately after they are granted, but no more than two occasions in a calendar year. |
14. | Disclosure under Section 444(5B) of the Companies Act 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
Material uncertainty related to going concern |
We draw attention to Note 3, going concern accounting policy in the financial statements, which states that the ability of the Company to continue as a going concern is reliant on the Company securing further funding which is not guaranteed. Failure to obtain this external funding would adversely impact the Company's working capital position and its ability to meet short obligations as they arise. As stated in Note 3, going concern accounting policy, these events or conditions, along with other matters as set forth in Note 3, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
15. | Pension commitments |
The defined contribution expense for the year was £123,819 (2023: £95,017). The pension creditor at year end was £23,824 (2023: £21,280). |
16. | Related party disclosures |
Entities over which the entity has control, joint control or significant influence |
2024 | 2023 |
£ | £ |
Amount due from group undertakings |
BROKER INSIGHTS LIMITED (REGISTERED NUMBER: SC574407) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2024 |
17. | Post balance sheet events |
The company secured convertible loan note funding post year-end of £3.85 million (gross proceeds) in February 2024. |