SBS Insurance Services Limited 03986368 false 2023-05-01 2024-04-30 2024-04-30 2024-04-30 The principal activity of the company is providing a nationwide claims handling service to Insurance Companies on Household Insurance Contents claims. This principally involves claims on Flooring, Electrical, Jewellery and Leisure Goods in the home. Most of the business is UK based, but the company is now deriving some business out of the European Market. This is a growing area of opportunity for the business. 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Registration number: 03986368

SBS Insurance Services Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 30 April 2024

 

SBS Insurance Services Limited

Contents

Company Information

1

Strategic Report

2 to 4

Directors' Report

5 to 6

Statement of Directors' Responsibilities

7

Independent Auditor's Report

8 to 11

Consolidated Profit and Loss Account

12

Consolidated Statement of Comprehensive Income

13

Consolidated Balance Sheet

14

Balance Sheet

15

Consolidated Statement of Changes in Equity

16

Statement of Changes in Equity

17

Consolidated Statement of Cash Flows

18

Notes to the Financial Statements

19 to 37

 

SBS Insurance Services Limited

Company Information

Directors

T Rees

P Fairbrass

S Crowley

R Rushall

O Davies

Company secretary

Clever Management Solutions Limited

Registered office

Chase House
Park Plaza
Heath Hayes
Cannock
WS12 2DD

Solicitors

Knights LLP
Midland House
West Way
Botley
Oxford
OX2 0PH

Bankers

Barclays Bank Plc
1st Floor
Queen Square
Wolverhampton
WV1 1DS

Auditors

Johnson Smith & Co Ltd
Centurion House
London Road
Staines-Upon-Thames
Surrey
TW18 4AX

 

SBS Insurance Services Limited

Strategic Report for the Year Ended 30 April 2024

The directors present their strategic report for the year ended 30 April 2024.

Fair review of the business

SBS Insurance Services Limited (“SBS”) and its subsidiaries React Insurance Services Ltd (“React”) and Direct Lawn and Garden Ltd (“DLG”) - together, “the Group”, provides services including claims handling, outsourcing, consulting and digital solutions to Insurance Organisations.

During the year, the Group continued to offer a full suite of services across all property claims and has expanded its offerings to the Insurance Industry through the addition of Motor and Travel Solutions for its clients.

In 2024, the Group has continued to invest and widen the scope of the services it offers. The Group continued to excel at Customer Service with exceptionally high ratings maintained on Customer Review Sites.

Investment in technology
SBS Group continue to invest heavily in Technology and push forward with the opportunities from AI. In 2024 the Group began to incorporate Large Language Models into its self-serve solutions.

In the year to April 2024, this innovation was recognised at various award ceremonies, including:
• Insurace Times Technology Award
• Insurance Post Partner of Year

Results and performance

The Group’s financial results continued showing significant improvement and the rise in EBITDA was driven principally by the growth in technology and digital solutions during the year.
 

y/e 30/4/22

y/e 30/4/23

y/e 30/4/24

Turnover

£28,264,487

£48,688,844

£47,623,638

Gross Profit

£4,889,814

£7,945,281

£7,941,158

EBITDA

£912,157

£1,351,065

£2,065,260

Net assets

£1,437,247

£1,520,696

£1,969,865

 

SBS Insurance Services Limited

Strategic Report for the Year Ended 30 April 2024

Operational highlights

During the year the Group launched a number of new services principally operating as SAAS solutions for the Insurance Industry, including self serve solutions in Motor, Travel and Building Claims.

Software and SAAS services are an increasing part of the business model and now represent a significant part of revenue stream.

Corporate governance

The Group is dedicated to upholding high standards of corporate governance, ensuring transparency, accountability, and ethical conduct across all operations. The Board of Directors acknowledges the critical role effective governance plays in protecting stakeholder interests and fostering long-term value creation for the Group.

Our Board comprises experienced and diverse directors who contribute a wide range of skills and expertise. They are responsible for setting the Group's strategic direction and overseeing its performance. Additionally, the Board supervises the Group's risk management framework and internal control systems to identify, assess, and mitigate risks that could affect the Group's operations and financial performance.

The Group values its relationships with all stakeholders, including employees, customers, suppliers, and the community. The Board ensures that stakeholder interests are integral to the decision-making processes. The Group adheres to high ethical standards and complies with all relevant laws, regulations, and industry codes of practice, promoting a culture of integrity, honesty, and accountability at all levels.

The Group is committed to providing stakeholders with timely and accurate information through transparent reporting and disclosure practices. The Board ensures that these practices are consistently upheld.

Employee relations

Details of the number of employees and the related costs can be found in note 7 to the financial statements.

The Group has continued its commitment to fostering good communication and consultation at all levels with a view to informing and involving staff in the progress of the Group and its future. Elected employee representatives meet with the executive management of the Group to consult on important workplace issues, including but not limited to market conditions, performance of the business, employee issues and any changes in business direction. Communication with all employees is through the intra net, email and staff meetings.

To encourage their involvement in the future performance of the Group, executive management and directors are included in the management share scheme and employees participate in performance related bonus schemes.
 

Employment of disabled persons

It is the Group's policy to give, wherever possible, equal opportunity of employment and career development to both disabled and able persons according to their suitability to perform the work required. The Group also makes every effort to provide employment for employees who become disabled. All employees are given opportunities for training, career development and promotion consistent with their capabilities whether disabled or able.

Future outlook

Whilst claims volumes have fallen, the outlook for 2025 remains positive and further diversification into other geographical markets and horizontals for Customer Service delivery in regulated markets is offering opportunities for further growth.

 

SBS Insurance Services Limited

Strategic Report for the Year Ended 30 April 2024

Principal risks and uncertainties

The Group faces competitive pressure and carefully manages risks by maintaining a highly competent workforce and maintaining a leading position in its industry sector through the use of state-of-the-art technologies that provide quality services and benefits to its clients.

The Group operates in a competitive environment and mitigates risks by maintaining a highly skilled workforce and leveraging cutting-edge technologies to offer superior services and benefits to its clients. The Group adeptly handles complex claim processes that require seamless coordination among internal departments, the external supply chain, and other partners. The board of directors regularly reviews identified threats and risks, ensuring continuous process improvements to meet both technical and business objectives, with a particular emphasis on risk mitigation.

Outlined below are significant risks associated with our business. Readers should consider these in conjunction with other information in this report, as the occurrence of any of these risks could negatively impact our business, financial condition, or operational results. The Group navigates a competitive market by providing high-quality, tailored services to its clients, many of whom have long-standing relationships with the Group. Additionally, the business development team holds regular meetings and update sessions with clients to ensure ongoing engagement and satisfaction.

The Group's underlying business is subject to extensive legal and regulatory oversight, including the UK Companies Act and certain companies within the group to the regulations promulgated by the Financial Conduct Authority.
 

Approved and authorised by the Board on 13 November 2024 and signed on its behalf by:
 

.........................................
T Rees
Director

 

SBS Insurance Services Limited

Directors' Report for the Year Ended 30 April 2024

The directors present their report and the consolidated financial statements for the year ended 30 April 2023.

Principal activity

The Group has performed well during the year ended 30 April 2024 and confidently looks forward to continued growth in the coming year. The principal activity of the Group in the year under review was the provision of claims handling, outsourcing, consulting and digital solutions to Insurance Organisations.

Dividends

The total distribution of dividends for the year ended 30 April 2024 were £880,000 (2023: £760,000).

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

Directors of the group

The directors who held office during the year were as follows:

T Rees

P Fairbrass

S Crowley

R Rushall

O Davies

Financial instruments

The Group has no financial instruments apart from cash, investments, trade debtors and trade creditors, all arising in the normal course of business. The main financial risk the Group is exposed include liquidity risk, cash flow risk and credit risk. These risks are managed by ensuring sufficient liquidity is available to meet foreseeable needs.

Donations and expenditure

During the year the Group made a charitable donation of £1,553 (2023: £940).

Research and development

Expenditure on research is written off in the profit and loss account of the year and development is capitalised and then amortised in the years ahead.

Going concern

The directors acknowledge the Financial Reporting Council's Going Concern Guidelines and believe that the Group is well placed to manage its business risks successfully. Having reviewed the initial financial scenario planning for the year 2024/25 and beyond that has been carried out, the directors are satisfied that, at the time of approving the financial statements, there is not a material uncertainty that may cast significant doubt upon the Group's ability to continue as a going concern, and so it is appropriate to adopt the going concern basis in preparing the financial statements.

 

SBS Insurance Services Limited

Directors' Report for the Year Ended 30 April 2024

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved by the Board on 13 November 2024 and signed on its behalf by:

.........................................
T Rees
Director

   
     
 

SBS Insurance Services Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

SBS Insurance Services Limited

Independent Auditor's Report to the Members of SBS Insurance Services Limited

Opinion

We have audited the financial statements of SBS Insurance Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 Financial Reporting Standard 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:

give a true and fair view of the state of the group's and the parent company's affairs as at 30 April 2024 and of the group's profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 director's 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 group's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

SBS Insurance Services Limited

Independent Auditor's Report to the Members of SBS Insurance Services Limited

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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:

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 7], 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 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

SBS Insurance Services Limited

Independent Auditor's Report to the Members of SBS Insurance Services Limited

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism through the audit and we also;

- Identify and assess the risks of material misstatements of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk pf not detecting a material misstatement resulting from fraud is higher than for one resulting from error. As fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of the internal control.

- Obtain an understanding of the internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of director's use of going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern and report appropriate disclosures in the accounts or in our audit report.

- Evaluate the appropriate presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieve fair presentation.

- Evaluated the conduct of operations in relation to laws and other regulations including but not limited to, intellectual property, commercial trading, data protection, money laundering, and employment. Our evaluation took account of whether any non-compliance would have a material effect on the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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

 

SBS Insurance Services Limited

Independent Auditor's Report to the Members of SBS Insurance Services Limited

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.

......................................
Maurice Brooks (Senior Statutory Auditor)
For and on behalf of Johnson Smith & Co Ltd
Chartered Accountants and Statutory Auditors
Centurion House
London Road
Staines-Upon-Thames
Surrey
TW18 4AX

13 November 2024

 

SBS Insurance Services Limited

Consolidated Profit and Loss Account for the Year Ended 30 April 2024

Note

2024
£

2023
£

Turnover

3

47,623,638

48,691,434

Cost of sales

 

(39,682,480)

(40,743,563)

Gross profit

 

7,941,158

7,947,871

Administrative expenses

 

(6,230,671)

(6,926,670)

Other operating income

4

-

20,974

Operating profit

6

1,710,487

1,042,175

Profit before tax

 

1,710,487

1,042,175

Tax on profit

10

(381,318)

(198,726)

Profit for the financial year

 

1,329,169

843,449

Profit/(loss) attributable to:

 

Owners of the company

 

1,329,169

843,449

The group has no recognised gains or losses for the year other than the results above.

 

SBS Insurance Services Limited

Consolidated Statement of Comprehensive Income for the Year Ended 30 April 2024

2024
£

2023
£

Profit for the year

1,329,169

843,449

Total comprehensive income for the year

1,329,169

843,449

Total comprehensive income attributable to:

Owners of the company

1,329,169

843,449

 

SBS Insurance Services Limited

(Registration number: 03986368)
Consolidated Balance Sheet as at 30 April 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

11

1,258,458

1,397,245

Tangible assets

12

283,268

257,086

Investments

13

-

50

 

1,541,726

1,654,381

Current assets

 

Stocks

14

1,090,670

1,431,547

Debtors

15

2,771,016

3,280,726

Cash at bank and in hand

 

1,247,861

1,152,919

 

5,109,547

5,865,192

Creditors: Amounts falling due within one year

17

(4,647,633)

(5,800,114)

Net current assets

 

461,914

65,078

Total assets less current liabilities

 

2,003,640

1,719,459

Creditors: Amounts falling due after more than one year

17

-

(136,778)

Provisions for liabilities

18

(33,775)

(61,985)

Net assets

 

1,969,865

1,520,696

Capital and reserves

 

Called up share capital

20

25,000

25,000

Capital redemption reserve

625

625

Retained earnings

1,944,240

1,495,071

Equity attributable to owners of the company

 

1,969,865

1,520,696

Shareholders' funds

 

1,969,865

1,520,696

Approved and authorised by the Board on 13 November 2024 and signed on its behalf by:
 

.........................................
T Rees
Director

   
     
 

SBS Insurance Services Limited

(Registration number: 03986368)
Balance Sheet as at 30 April 2024

Note

2024
£

2023
£

Fixed assets

 

Intangible assets

11

1,262,509

1,401,296

Tangible assets

12

279,674

248,819

Investments

13

30,100

30,150

 

1,572,283

1,680,265

Current assets

 

Stocks

14

1,074,303

1,415,798

Debtors

15

3,224,555

3,781,974

Cash at bank and in hand

 

1,152,984

995,101

 

5,451,842

6,192,873

Creditors: Amounts falling due within one year

17

(4,636,358)

(5,746,317)

Net current assets

 

815,484

446,556

Total assets less current liabilities

 

2,387,767

2,126,821

Creditors: Amounts falling due after more than one year

17

-

(136,778)

Provisions for liabilities

18

(33,775)

(61,985)

Net assets

 

2,353,992

1,928,058

Capital and reserves

 

Called up share capital

20

25,000

25,000

Capital redemption reserve

625

625

Retained earnings

2,328,367

1,902,433

Shareholders' funds

 

2,353,992

1,928,058

The company made a profit after tax for the financial year of £1,305,934 (2023 - profit of £879,663).

Approved and authorised by the Board on 13 November 2024 and signed on its behalf by:
 

.........................................
T Rees
Director

   
     
 

SBS Insurance Services Limited

Consolidated Statement of Changes in Equity for the Year Ended 30 April 2024
Equity attributable to the parent company

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

Total equity
£

At 1 May 2023

25,000

625

1,495,071

1,520,696

1,520,696

Profit for the year

-

-

1,329,169

1,329,169

1,329,169

Dividends

-

-

(880,000)

(880,000)

(880,000)

At 30 April 2024

25,000

625

1,944,240

1,969,865

1,969,865

 

SBS Insurance Services Limited

Statement of Changes in Equity for the Year Ended 30 April 2024

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 May 2023

25,000

625

1,902,433

1,928,058

Profit for the year

-

-

1,305,934

1,305,934

Dividends

-

-

(880,000)

(880,000)

At 30 April 2024

25,000

625

2,328,367

2,353,992

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 May 2022

25,000

625

1,782,770

1,808,395

Profit for the year

-

-

879,663

879,663

Dividends

-

-

(760,000)

(760,000)

At 30 April 2023

25,000

625

1,902,433

1,928,058

 

SBS Insurance Services Limited

Consolidated Statement of Cash Flows for the Year Ended 30 April 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

1,329,169

843,449

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

354,773

311,480

Profit on disposal of tangible assets

5

(83)

-

Loss from disposals of investments

5

50

-

Income tax expense

10

381,318

198,726

 

2,065,227

1,353,655

Working capital adjustments

 

Decrease/(increase) in stocks

14

340,877

(557,190)

Decrease/(increase) in trade debtors

15

509,710

(172,623)

Decrease in trade creditors

17

(1,526,095)

(107,168)

Cash generated from operations

 

1,389,719

516,674

Income taxes paid

10

(172,692)

(60,300)

Net cash flow from operating activities

 

1,217,027

456,374

Cash flows from investing activities

 

Acquisitions of tangible assets

(136,492)

(132,935)

Proceeds from sale of tangible assets

 

1,224

-

Acquisition of intangible assets

11

(106,817)

(14,520)

Net cash flows from investing activities

 

(242,085)

(147,455)

Cash flows from financing activities

 

Dividends paid

(880,000)

(760,000)

Net increase/(decrease) in cash and cash equivalents

 

94,942

(451,081)

Cash and cash equivalents at 1 May

 

1,152,919

1,604,000

Cash and cash equivalents at 30 April

 

1,247,861

1,152,919

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

1

General information

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

The address of its registered office is:
Chase House
Park Plaza
Heath Hayes
Cannock
WS12 2DD

These financial statements were authorised for issue by the Board on 13 November 2024.

Principal activity
The principal activity of the company in the year under review was that of providing a nationwide claims handling service to Insurance Companies on Household Insurance Contents claims. This principally involves claims on Flooring, Electrical, Jewellery and Leisure Goods in the home.

Statement of compliance
The Company and Group's financial statements have been prepared in compliance with FRS 102 as it applies to the financial statements of the Company and the Group for the year ended 30 April 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.

The financial statements are presented in Sterling (£) which is the functional currency of the company. The amounts in financial statements are rounded up to the nearest pound.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of consolidation

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.

Subsidiary exempt from audit
Direct Lawn and Garden Limited and React Insurance Services Limited, 100% subsidiaries of SBS Insurance Services Limited are claiming the exemption from audit by the virtue of section 479A of the Companies Act 2006 relating to subsidiary companies for the year ended 30 April 2024. SBS Insurance Services Limited has given guarantees under section 479C of the Companies Act 2006 in respect of the year ended 30 April 2024 for its subsidiary companies, Direct Lawn and Garden Limited and React Insurance Services Limited.

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Going concern

The directors acknowledge the Financial Reporting Council's Going Concern Guidelines and believe that the Group is well placed to manage its business risks successfully. Having reviewed the initial financial scenario planning for the year 2024/25 and beyond that has been carried out, the directors are satisfied that, at the time of approving the financial statements, there is not a material uncertainty that may cast significant doubt upon the Group's ability to continue as a going concern, and so it is appropriate to adopt the going concern basis in preparing the financial statements.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.

The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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 group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated 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 accumlated amortisation and subsequent accumulated impairment losses.

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

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset:

Asset class

Depreciation method and rate

Plant & Machinery

25% of cost on a straight-line basis

Fixtures & Fittings

25% of cost on a straight-line basis

Computer equipment

25% of cost on a straight-line basis

Improvements to property

25% of cost on a straight-line basis

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.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation of goodwill is calculated so as to write off the cost, less its estimated residual value, over the useful economic life as follows:

Goodwill - Straight-line basis over 7 years

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.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Computer software

25% of cost on a straight-line basis

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.

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Fixed asset investments
Investments in unquoted securities are carried at fair value unless such value cannot be reliably measured, in which case the investments are carried at cost.

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 group will not be able to collect all amounts due according to the initial terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
 

Work in progress
Work in progress is valued on the basis of direct cost plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

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 group 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.

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

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.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.

Research and development
Expenditure on research is written off in the profit and loss account of the year and development is capitalised and then amortised in the years ahead.

Revenue recognition
Income is recognised when the significant risks and rewards of ownership of the goods and services are transferred to the customer and receipt of payment can be assured.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual agreement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
 

Loan notes
Loan notes which are basic financial instruments are initially recorded at the present value of future payments discounted at a market rate of interest for a similar loan. Subsequently, they are measured at amortised cost using the effective interest method. Loan notes that are receivable within one year are not discounted.

Provisions
A provision is recognised where the company has a legal or constructive obligation as a result of past event and it is possible that an outflow of economic benefit would be required to settle the obligation.

Grants
Grants are accounted for under the accrual model and classified either as a grant relating to revenue (revenue-based grant) or a grant relating to assets (capital-based grants). Grants which relate to revenue are recognised in income in the period the related costs are incurred by the entity for which the grant is intended to compensate. For grants which are received by the entity for compensation for expenses or losses which have already been incurred, the grant is recognised in income when it is received or receivable provided that the terms of the grant do not impose future performance-related conditions. Any grants that are received before the revenue recognition criteria are met are recognised in the entity's financial statements as a liability. Government grants in relation to tangible fixed asset are credited to profit and loss account over the useful lives of the related assets, whereas those in relation to expenditure are credited when the expenditure is charged to profit and loss.

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

3

Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods and services

47,623,638

48,688,844

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2024
£

2023
£

Other operating income

-

20,974

5

Other gains and losses

The analysis of the group's other gains and losses for the year is as follows:

2024
£

2023
£

Gain on disposal of tangible assets

83

-

Loss from disposals of investments

(50)

-

33

-

6

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

109,169

79,140

Amortisation expense

245,604

232,340

Research and development cost

217,480

320,093

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

3,845,445

4,068,170

Social security costs

404,610

433,797

Pension costs, defined contribution scheme

66,510

56,365

4,316,565

4,558,332

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Directors

5

3

Administration, HR, finance, and information technology

9

9

Claim handlers

88

105

102

117

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

572,093

302,400

In respect of the highest paid director:

2024
£

2023
£

Remuneration

165,346

91,652

9

Auditors' remuneration

2024
£

2023
£

Other fees to auditors

Audit-related assurance services

9,030

7,900

All other non-audit services

10,273

9,030

19,303

16,930


 

10

Taxation

Tax charged/(credited) in the consolidated profit and loss account

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

2024
£

2023
£

Current taxation

UK corporation tax

409,528

172,692

Deferred taxation

Arising from origination and reversal of timing differences

(28,210)

26,034

Tax expense in the income statement

381,318

198,726

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

1,710,487

1,042,175

Corporation tax at standard rate

427,622

198,013

Tax increase from effect of capital allowances and depreciation

58,298

46,695

Tax (decrease)/increase from other short-term timing differences

(28,210)

26,034

Effect of expense not deductible in determining taxable profit (tax loss)

3,123

8,394

Tax decrease from effect of adjustment in research and development tax credit

(79,515)

(80,410)

Total tax charge

381,318

198,726

11

Intangible assets

Group

Goodwill
 £

Computer software
£

Total
£

Cost or valuation

At 1 May 2023

1,664,811

19,240

1,684,051

Revaluations

(60,023)

-

(60,023)

Additions

-

166,840

166,840

At 30 April 2024

1,604,788

186,080

1,790,868

Amortisation

At 1 May 2023

281,783

5,023

286,806

Amortisation charge

222,028

23,576

245,604

At 30 April 2024

503,811

28,599

532,410

Carrying amount

At 30 April 2024

1,100,977

157,481

1,258,458

At 30 April 2023

1,383,028

14,217

1,397,245

The above adjustment of £60,023 is due to revision of the net asset position and the change in earn-out obligations based on the performance of the business acquired during the year ended 30.04.2022.

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Company

Goodwill
 £

Computer software
£

Total
£

Cost or valuation

At 1 May 2023

1,624,256

14,520

1,638,776

Revaluations

(60,023)

-

(60,023)

Additions

-

166,840

166,840

At 30 April 2024

1,564,233

181,360

1,745,593

Amortisation

At 1 May 2023

237,177

303

237,480

Amortisation charge

222,028

23,576

245,604

At 30 April 2024

459,205

23,879

483,084

Carrying amount

At 30 April 2024

1,105,028

157,481

1,262,509

At 30 April 2023

1,387,079

14,217

1,401,296

The above adjustment of £60,023 is due to revision of the net asset position and the change in earn-out obligations based on the performance of the business acquired during the year ended 30.04.2022.

12

Tangible assets

Group

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Improvements to property
£

Fixtures and fittings
£

Plant and machinery
£

Computer equipment
£

Total
£

Cost or valuation

At 1 May 2023

157,992

100,871

13,646

167,033

439,542

Additions

39,241

33,877

-

63,374

136,492

Disposals

-

-

-

(1,141)

(1,141)

At 30 April 2024

197,233

134,748

13,646

229,266

574,893

Depreciation

At 1 May 2023

44,272

52,796

8,770

76,618

182,456

Charge for the year

45,856

26,864

2,480

33,969

109,169

At 30 April 2024

90,128

79,660

11,250

110,587

291,625

Carrying amount

At 30 April 2024

107,105

55,088

2,396

118,679

283,268

At 30 April 2023

113,720

48,075

4,876

90,415

257,086

Company

Improvements to property
£

Fixtures and fittings
£

Computer equipment
£

Total
£

Cost or valuation

At 1 May 2023

157,992

91,737

167,033

416,762

Additions

39,241

33,877

63,374

136,492

Disposals

-

-

(1,141)

(1,141)

At 30 April 2024

197,233

125,614

229,266

552,113

Depreciation

At 1 May 2023

44,272

47,053

76,618

167,943

Charge for the year

45,856

24,671

33,969

104,496

At 30 April 2024

90,128

71,724

110,587

272,439

Carrying amount

At 30 April 2024

107,105

53,890

118,679

279,674

At 30 April 2023

113,720

44,684

90,415

248,819

13

Investments

Group

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2024

2023

Subsidiary undertakings

Direct Lawn and Garden Limited

Ree Place Dew Pond Lane, Tongue Lane Industrial Estate, Buxton, Derbyshire. SK17 7LF

Ordinary shares

100%

100%

United Kingdom

React Insurance Services Ltd

Chase House Park Plaza, Heath Hayes, Cannock, England, WS12 2DD

Ordinary shares

100%

100%

United Kingdom

Subsidiary undertakings

Direct Lawn and Garden Limited

React Insurance Services Ltd

Company

2024
£

2023
£

Investments in subsidiaries

30,100

30,100

Investments in joint ventures

-

50

30,100

30,150

Subsidiaries

£

Cost or valuation

At 1 May 2023

30,100

Provision

Carrying amount

At 30 April 2024

30,100

At 30 April 2023

30,100

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

Joint ventures

£

Cost

At 1 May 2023

50

Disposals

(50)

At 30 April 2024

-

Provision

Carrying amount

At 30 April 2024

-

At 30 April 2023

50

On 11th September 2023, the company disposed off its investment in the joint venture, Hastings Home Claims Services Limited.

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

14

Stocks

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Work in progress

1,074,303

1,407,093

1,074,303

1,407,093

Finished goods and goods for resale

16,367

24,454

-

8,705

1,090,670

1,431,547

1,074,303

1,415,798

15

Debtors

   

Group

Company

Current

Note

2024
£

2023
£

2024
£

2023
£

Trade debtors

 

2,388,917

2,852,027

2,363,491

2,827,580

Amounts owed by group undertakings

24

-

-

485,328

543,457

Other debtors

 

96,317

99,749

95,531

95,089

Prepayments

 

285,782

328,950

280,205

315,848

   

2,771,016

3,280,726

3,224,555

3,781,974

Amounts owed by group undertakings are interest free and repayable on demand.

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

16

Cash and cash equivalents

 

Group

Company

2024
£

2023
£

2024
£

2023
£

Cash on hand

17

16

9

9

Cash at bank

1,247,844

1,152,903

1,152,975

995,092

1,247,861

1,152,919

1,152,984

995,101

17

Creditors

   

Group

Company

Note

2024
£

2023
£

2024
£

2023
£

Due within one year

 

Trade creditors

 

1,794,213

2,136,664

1,730,261

2,110,684

Social security and other taxes

 

417,720

248,915

407,969

241,542

Other payables

 

386,697

880,218

378,820

873,281

Accruals

 

1,638,929

2,361,079

1,710,722

2,354,048

Corporation tax liability

10

410,074

173,238

408,586

166,762

 

4,647,633

5,800,114

4,636,358

5,746,317

Due after one year

 

Other non-current financial liabilities

 

-

136,778

-

136,778

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

18

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 May 2023

61,985

61,985

Increase (decrease) in existing provisions

(28,210)

(28,210)

At 30 April 2024

33,775

33,775

Company

Deferred tax
£

Total
£

At 1 May 2023

61,985

61,985

Additional provisions

(28,210)

(28,210)

At 30 April 2024

33,775

33,775

19

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £66,510 (2023 - £56,365).

20

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

25,000

25,000

25,000

25,000

       

21

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

2024
£

2023
£

Not later than one year

70,925

51,250

Later than one year and not later than five years

44,083

15,333

115,008

66,583

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

22

Dividends

2024

2023

£

£

Interim dividend of £35.20 (2023 - £30.40) per ordinary share

880,000

760,000

 

 

23

Commitments

Group

Capital commitments

The total amount contracted for but not provided in the financial statements was £Nil (2023 - £Nil).

24

Related party transactions

Group

The group 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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

During the year, the group received management fees of £nil (2023: £19,974) from a connected company under the common directorship of S Crowley. The group was owed £21,113 (2023: £21,113) by the connected company at the year-end. All transactions were at arm's length basis on normal trading terms.

Company

At 30th April 24, directors' loans totalled £92,845 (2023: £92,845). These loans will be/were fully repaid within 9 months of their respective year ends.

25

Ultimate controlling party

Group

During the year, the group was under the control of its board of directors.


 

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2024

26

Post balance sheet events

Group

There are no post balance sheet events which require disclosure in the financial statements for the year under review.