Company registration number 05073971 (England and Wales)
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
COMPANY INFORMATION
Directors
D J Whalley
C Evans
M Donnelly
D J Haram
Secretary
D J Whalley
Company number
05073971
Registered office
12 Princes Parade
Princes Dock
Liverpool
L3 1BG
Auditor
Lonsdale & Marsh
509 - 510 Cotton Exchange
Bixteth Street
Liverpool
L3 9LQ
Business address
4th Floor
6 Gracechurch Street
City of London
EC3V 0AT
Bankers
HSBC
60 Queen Victoria Street
London
EC4N 4TR
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Notes to the financial statements
10 - 23
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the period ended 31 March 2024.
Review of the business
The company ran an extended 16 month accounting period through to 31 March in order to align with its group accounting reference date. The business has performed well in the period in line with budgeted expectations. The apparent decrease in pro-rata income over the 16 month period is not indicative of a trading decrease, but simply arises from the seasonality of income. Pre-tax profit came in as budgeted at £363k (2022: £282k).
Principal risks and uncertainties
The principal risks and uncertainties facing the business continue to be those presented by the effects of the wider economic environment upon its client base, client merger and acquisition activity, and the different phases of the insurance market cycle.
Development and performance
The directors are of the opinion that the financial position of the Company is strong as at the balance sheet date, and remain confident of further growth.
Key performance indicators
The company uses a range of financial and non-financial key performance indicators in pursuit of excellence in client service and best business practice. Revenue and expenditure are monitored monthly and compared with both agreed budgets and prior year amounts, and variances are analysed.
Revenue
As shown in the Statement of Comprehensive Income revenue for the period was £1.52m. Taking the seasonality of income into account to regularise this period to one of 12-month trading, the 2024 turnover is materially unchanged from 2022.
Financial position at the reporting date
The company’s net assets at the reporting date were £1.52m (2022 £1.24m). Cash at bank increased slightly to £1.6m (2022: £1.4m).
D J Whalley
Director
11 July 2024
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 2 -
The directors present their annual report and financial statements for the period ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of a Lloyd's insurance broker.
Results and dividends
The results for the period are set out on page 7.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
D J Whalley
C Evans
M Donnelly
D J Haram
Future developments
The results for the period and the financial position at the period end were considered satisfactory by the directors who expect continued growth in the foreseeable future.
Auditor
The auditor, Lonsdale & Marsh, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of directors' responsibilities
The directors are responsible 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 period. 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then 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;
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 company’s transactions and disclose with reasonable accuracy at any time the financial position of 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 3 -
Statement of disclosure to auditor
(a) so far as the directors are aware, there is no relevant audit information of which the company's auditor is unaware, and
(b) they have taken all the steps that they ought to have taken as directors in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
On behalf of the board
D J Whalley
Director
11 July 2024
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
- 4 -
Opinion
We have audited the financial statements of Griffiths & Armour Global Risks Limited (the 'company') for the period ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 FRS 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 company's affairs as at 31 March 2024 and of its profit for the period 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.
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's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 directors' 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception
In the light of the 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 or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 directors' responsibilities statement, 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 intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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.
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those which relate to Financial Conduct Authority regulations and those laws and regulations which have a direct impact on the financial statements such as the Companies Act 2006.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, included the following:
the engagement partner ensured the audit team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
discussions with senior management;
identified laws and regulations were communicated within the audit team who remained alert to instances of non-compliance throughout the audit.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including override of controls) and addressed the risk through:
making enquires of those charged with governance as to their knowledge of actual, suspected and alleged instances of fraud;
considering the internal controls in place to mitigate the risks of fraud.
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED (CONTINUED)
- 6 -
In response to the risk of irregularities and non-compliance with laws and regulations, we designed our audit procedures which included, but were not limited to:
agreeing financial statement disclosures to underlying supporting documentation;
reviewing the minutes of meetings of those charged with governance;
reviewing the minutes for any issues regarding FCA compliance;
reviewing for any transactions undertaken with related parties such as directors;
discussions with management about any known or suspected instances of non-compliance with laws and regulations;
testing of journals;
analytical review to identify unusual transactions;
checking expenses are bona fide transactions of the company.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulations. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Elaine Frances McElroy
Senior Statutory Auditor
For and on behalf of Lonsdale & Marsh
11 July 2024
Chartered Accountants
Statutory Auditor
509 - 510 Cotton Exchange
Bixteth Street
Liverpool
L3 9LQ
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2024
- 7 -
Period
Year
ended
ended
31 March
30 November
2024
2022
Notes
£
£
Turnover
3
1,523,107
1,258,042
Administrative expenses
(1,225,856)
(971,587)
Operating profit
4
297,251
286,455
Interest receivable and similar income
8
67,642
5,679
Interest payable and similar expenses
9
(1,096)
(10,468)
Profit before taxation
363,797
281,666
Tax on profit
10
(80,832)
(56,266)
Profit for the financial period
282,965
225,400
Other comprehensive income
Actuarial gain on defined benefit pension schemes
5,000
41,000
Tax relating to other comprehensive income
(1,750)
(11,000)
Total comprehensive income for the period
286,215
255,400
The profit and loss account has been prepared on the basis that all operations are continuing operations.
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 8 -
31 March 2024
30 November 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,427
Current assets
Debtors
13
36,955
59,072
Cash at bank and in hand
4,328,495
16,489,526
4,365,450
16,548,598
Creditors: amounts falling due within one year
15
(2,841,258)
(15,304,777)
Net current assets
1,524,192
1,243,821
Total assets less current liabilities
1,524,192
1,245,248
Provisions for liabilities
Deferred tax liability
17
271
Defined benefit pension liability
18
7,000
-
(7,271)
Net assets
1,524,192
1,237,977
Capital and reserves
Called up share capital
19
500,000
500,000
Profit and loss reserves
1,024,192
737,977
Total equity
1,524,192
1,237,977
The financial statements were approved by the board of directors and authorised for issue on 11 July 2024 and are signed on its behalf by:
D J Whalley
C Evans
Director
Director
Company registration number 05073971 (England and Wales)
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 December 2021
500,000
682,577
1,182,577
Year ended 30 November 2022:
Profit for the year
-
225,400
225,400
Other comprehensive income:
Actuarial gains/(losses) on defined benefit plans
-
41,000
41,000
Tax relating to other comprehensive income
-
(11,000)
(11,000)
Total comprehensive income for the year
255,400
255,400
Dividends
11
-
(200,000)
(200,000)
Balance at 30 November 2022
500,000
737,977
1,237,977
Period ended 31 March 2024:
Profit for the period
-
282,965
282,965
Other comprehensive income:
Actuarial gains/(losses) on defined benefit plans
-
5,000
5,000
Tax relating to other comprehensive income
-
(1,750)
(1,750)
Total comprehensive income for the period
286,215
286,215
Balance at 31 March 2024
500,000
1,024,192
1,524,192
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
- 10 -
1
Accounting policies
Company information
Griffiths & Armour Global Risks Limited is a private company limited by shares incorporated in England and Wales. The registered office is 12 Princes Parade, Princes Dock, Liverpool, L3 1BG.
1.1
Reporting period
These financial statements are for the period ended 31 March 2024. The previous financial statements were for the year ended 30 November 2022. The change was made in order to align the company's accounting reference date with that of its parent company and fellow subsidiary undertakings. As such, the comparative amounts presented in the financial statements (including the related notes) are not entirely comparable.
1.2
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.
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.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Griffiths & Armour Holdings Limited. These consolidated financial statements are available from Companies House.
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Turnover
Turnover represents commission and fee income. Commission income is recognised on inception of the risk. Fee income is recognised on the basis of services provided. Where there is an expectation of future servicing requirements an element of income relating to the policy is deferred to cover the associated contractual obligation.
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 11 -
1.5
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.
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:
Plant and machinery
20% - 33 1/3% straight line
Fixtures, fittings & equipment
20% 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.
1.6
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.
The 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.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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.
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other periods and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.11
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.
If relevant, 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.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.
The change in the net defined benefit liability arising from employee service during the period is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.
The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.
Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.
The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.14
Insurance broking receivables and payables
Insurance brokers act as agents in placing the insurable risks of their clients with insurers and, as such, are not liable as principals for amounts arising from such transactions. In recognition of this relationship, debtors from insurance broking transactions are not included as an asset of the company. Other than the amount receivable for fees and commissions earned on a transaction, no recognition of the insurance broking transaction occurs until the company receives cash in respect of premiums or claims, at which time a corresponding liability is established in favour of the insurer of the client.
In certain circumstances the company advances premiums, refunds or claims to insurance underwriters or clients prior to collection. These advances are reflected in the balance sheet as part of trade receivables.
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 15 -
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.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2022
£
£
Turnover analysed by class of business
Commissions receivable
1,523,107
1,258,042
2024
2022
£
£
Other revenue
Interest income
67,642
5,679
4
Operating profit
2024
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange losses/(gains)
1,295
(5,766)
Depreciation of owned tangible fixed assets
1,427
10,900
5
Auditor's remuneration
2024
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
10,200
9,000
For other services
Other assurance services
9,600
5,400
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 16 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
2024
2022
Number
Number
Professional and technical
9
9
Administration
2
2
Total
11
11
Their aggregate remuneration comprised:
2024
2022
£
£
Wages and salaries
687,235
553,214
Social security costs
82,134
71,993
Pension costs
80,071
70,271
849,440
695,478
7
Directors' remuneration
No remuneration was paid to the directors.
8
Interest receivable and similar income
2024
2022
£
£
Interest income
Interest on bank deposits
67,642
5,679
9
Interest payable and similar expenses
2024
2022
£
£
Interest on bank overdrafts and loans
1,096
9,468
Net interest on the defined benefit liability
1,000
1,096
10,468
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 17 -
10
Taxation
2024
2022
£
£
Current tax
UK corporation tax on profits for the current period
81,103
58,337
Deferred tax
Origination and reversal of timing differences
(271)
(2,071)
Total tax charge
80,832
56,266
The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2024
2022
£
£
Profit before taxation
363,797
281,666
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
90,949
53,517
Tax effect of expenses that are not deductible in determining taxable profit
(4,974)
2,749
Effect of change in corporation tax rate
(5,143)
Taxation charge for the period
80,832
56,266
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2022
£
£
Deferred tax arising on:
Actuarial differences recognised as other comprehensive income
1,750
11,000
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 18 -
11
Dividends
2024
2022
£
£
Interim paid
200,000
12
Tangible fixed assets
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 December 2022 and 31 March 2024
29,113
28,442
57,555
Depreciation and impairment
At 1 December 2022
29,089
27,039
56,128
Depreciation charged in the period
24
1,403
1,427
At 31 March 2024
29,113
28,442
57,555
Carrying amount
At 31 March 2024
At 30 November 2022
24
1,403
1,427
13
Debtors
2024
2022
Amounts falling due within one year:
£
£
Trade debtors
12,080
9,517
Amounts owed by group undertakings
19,158
19,158
Prepayments and accrued income
5,717
28,647
36,955
57,322
Deferred tax asset (note 17)
1,750
36,955
59,072
14
Client Money
The Financial Conduct Authority (FCA) have established a set of rules for UK insurance intermediaries to follow when handling Client Money called the Client Assets Sourcebook (CASS 5). CASS 5 requires that Client Money be held in either a statutory or non-statutory trust for the benefit of the related clients and insurers, and as such these monies are not the property of the broker. The monies so held and the related debtors and creditors would not therefore form part of the broker's net assets in the event of a winding-up and would not be available to its general creditors. The company is licensed by the FCA (No. 312048) to act as an insurance intermediary and has elected to hold Client Money in a non-statutory trust.
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 19 -
15
Creditors: amounts falling due within one year
2024
2022
£
£
Client Money creditors
2,673,329
15,037,329
Amounts due to group undertakings
8,879
3,841
Amounts due to undertakings in which the company has a participating interest
21,825
23,059
Corporation tax
10,546
44,443
Other taxation and social security
25,787
16,378
Accruals and deferred income
100,892
179,727
2,841,258
15,304,777
16
Provisions for liabilities
2024
2022
£
£
Deferred tax liabilities
17
271
Retirement benefit obligations
18
7,000
7,271
17
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
Assets
Assets
2024
2022
2024
2022
Balances:
£
£
£
£
Accelerated capital allowances
-
271
-
-
Retirement benefit obligations
-
-
-
1,750
-
271
-
1,750
2024
Movements in the period:
£
Asset at 1 December 2022
(1,479)
Credit to profit or loss
(271)
Charge to other comprehensive income
1,750
Liability at 31 March 2024
-
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 20 -
18
Retirement benefit schemes
2024
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
80,071
70,271
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
Defined benefit schemes
The company provides retirement benefits for qualifying employees, in which Griffiths & Armour partnership is the lead employer.
The scheme became paid up on 31 May 2005.
The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation was carried out as at 31 March 2024 by Gerard Walsh of Broadstone Corporate Benefits Limited, who is a Fellow of the Institute of Actuaries, in accordance with the requirements of FRS 102. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.
The figures in the remainder of this note represent the portion of the scheme attributed to Griffiths & Armour Global Risks Limited only.
2024
2022
Key assumptions
%
%
Discount rate
4.80
4.00
Expected rate of increase of pensions in payment
2.85
2.70
Expected rate of salary increases
n/a
n/a
Mortality assumptions
2024
2022
Assumed life expectations on retirement at age 65:
Years
Years
Retiring today
- Males
87
87
- Females
89
90
Retiring in 20 years
- Males
88
89
- Females
91
91
2024
2022
Amounts recognised in the profit and loss account
£
£
Net interest on net defined benefit liability
-
1,000
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
18
Retirement benefit schemes
(Continued)
- 21 -
2024
2022
Amounts taken to other comprehensive income
£
£
Actual return on scheme assets
(4,000)
(9,000)
Add: calculated interest element
10,000
2,000
Return on scheme assets excluding interest income
6,000
(7,000)
Actuarial changes related to obligations
(29,000)
(34,000)
Effect of changes in the amount of surplus that is not recoverable
18,000
-
Total income
(5,000)
(41,000)
The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:
2024
2022
£
£
Present value of defined benefit obligations
166,000
185,000
Fair value of plan assets
(184,000)
(178,000)
(Surplus)/deficit in scheme
(18,000)
7,000
Restriction on scheme assets
18,000
-
Total liability recognised
-
7,000
In accordance with Financial Reporting Standard 102 the defined benefit pension asset is not recognised in the financial statements as it is unlikely that the company will be able to recover the surplus through reduced contributions in the future or through refunds from the pension scheme.
2024
Movements in the present value of defined benefit obligations
£
Liabilities at 1 December 2022
185,000
Actuarial gains and losses
(29,000)
Interest cost
10,000
At 31 March 2024
166,000
2024
The defined benefit obligations arise from plans funded as follows:
£
Wholly unfunded obligations
-
Wholly or partly funded obligations
166,000
166,000
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
18
Retirement benefit schemes
(Continued)
- 22 -
2024
Movements in the fair value of plan assets
£
Fair value of assets at 1 December 2022
178,000
Interest income
10,000
Return on plan assets (excluding amounts included in net interest)
(6,000)
Contributions by the employer
2,000
At 31 March 2024
184,000
The actual return on plan assets was £4,000 (2022 - £9,000).
2024
2022
Fair value of plan assets at the reporting period end
£
£
Group Pension Contract
184,000
178,000
19
Share capital
2024
2022
2024
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500,000
500,000
500,000
500,000
20
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2022
£
£
Within one year
1,313
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 23 -
21
Related party transactions
Transactions with related parties
During the period the company entered into the following transactions with related parties:
Commission and fees
Purchase of goods
2024
2022
2024
2022
£
£
£
£
Evolin Broking Limited
99,996
100,068
158,227
116,580
Griffiths & Armour
895,938
749,998
205,934
143,306
The following amounts were outstanding at the reporting end date:
2024
2022
Amounts due to related parties
£
£
Evolin Broking Limited
8,879
3,841
Griffiths & Armour
21,825
23,059
Griffiths & Armour is a partnership in which D J Whalley (director), C Evans (director), M Donnelly (director) and D J Haram (director) are partners.
Griffiths & Armour Global Risks Limited is a wholly owned subsidiary of Griffiths & Armour (Holdings) Limited which has joint control over Evolin Holdings Limited (previously GAWS of London Holdings Limited), which wholly owns subsidiary company Evolin Broking Limited (previously GAWS of London Limited). D J Whalley, C Evans, M Donnelly and D J Haram are directors of Griffiths & Armour Global Risks Limited and Griffiths & Armour (Holdings) Limited. D J Whalley and M Donnelly are directors of Evolin Holdings Limited and Evolin Broking Limited.
In respect of group transactions the company has taken advantage of the exemption available in FRS 102 paragraph 33.1A whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.
22
Ultimate controlling party
The parent company preparing consolidated financial statements is Griffiths & Armour (Holdings) Limited, a company incorporated in England and Wales. The registered office is 12 Princes Parade, Princes Dock, Liverpool, L3 1BG.
Griffiths & Armour (Holdings) Limited is also the ultimate controlling party.
The financial statements of Griffiths & Armour Global Risks Limited are only included in the consolidated financial statements of Griffiths & Armour (Holdings) Limited.
23
Non-audit services provided by auditor
In common with many businesses of our size and nature we use our auditor to prepare and submit returns to the tax authorities, assist with the preparation of the financial statements and to provide tax advice and to represent us, as necessary, at tax tribunals.
2024-03-312022-12-01falsefalsefalseCCH SoftwareCCH Accounts Production 2024.301C EvansM DonnellyD J HaramD J HaramD J Whalley050739712022-12-012024-03-3105073971bus:CompanySecretaryDirector12022-12-012024-03-3105073971bus:Director12022-12-012024-03-3105073971bus:Director22022-12-012024-03-3105073971bus:Director32022-12-012024-03-3105073971bus:CompanySecretary12022-12-012024-03-3105073971bus:Director42022-12-012024-03-3105073971bus:RegisteredOffice2022-12-012024-03-3105073971bus:Agent12022-12-012024-03-31050739712024-03-31050739712021-12-012022-11-3005073971core:RetainedEarningsAccumulatedLosses2021-12-012022-11-3005073971core:RetainedEarningsAccumulatedLosses2022-12-012024-03-3105073971core:RevenueReservesInvestmentFundsOnly2021-12-012022-11-3005073971core:ShareCapital2021-12-012022-11-3005073971core:ShareCapital2022-12-012024-03-31050739712022-11-3005073971core:PlantMachinery2024-03-3105073971core:FurnitureFittings2024-03-3105073971core:PlantMachinery2022-11-3005073971core:FurnitureFittings2022-11-3005073971core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3105073971core:CurrentFinancialInstrumentscore:WithinOneYear2022-11-3005073971core:CurrentFinancialInstruments2024-03-3105073971core:CurrentFinancialInstruments2022-11-3005073971core:ShareCapital2024-03-3105073971core:ShareCapital2022-11-3005073971core:RetainedEarningsAccumulatedLosses2024-03-3105073971core:RetainedEarningsAccumulatedLosses2022-11-3005073971core:ShareCapital2021-11-3005073971core:RetainedEarningsAccumulatedLosses2021-11-30050739712021-11-3005073971core:PlantMachinery2022-12-012024-03-3105073971core:FurnitureFittings2022-12-012024-03-3105073971core:UKTax2022-12-012024-03-3105073971core:UKTax2021-12-012022-11-3005073971core:PlantMachinery2022-11-3005073971core:FurnitureFittings2022-11-30050739712022-11-3005073971core:WithinOneYear2024-03-3105073971core:WithinOneYear2022-11-3005073971bus:PrivateLimitedCompanyLtd2022-12-012024-03-3105073971bus:FRS1022022-12-012024-03-3105073971bus:Audited2022-12-012024-03-3105073971bus:FullAccounts2022-12-012024-03-31xbrli:purexbrli:sharesiso4217:GBP