Company registration number 02839315 (England and Wales)
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
COMPANY INFORMATION
Directors
P Berg
M Donnelly
C J Edwards
C Evans
R M H Griffiths (non-executive)
D J Haram
S J Keenan
C Roberts
(Appointed 1 April 2024)
P M Sapiro
J R M Simcox (non-executive)
K J Swainson
D J Whalley
T M Winstanley
(Appointed 1 December 2022)
J Wolstencroft
(Appointed 1 April 2024)
Secretary
D J Whalley
Company number
02839315
Registered office
12 Princes Parade
Princes Dock
Liverpool
L3 1BG
Auditor
Lonsdale & Marsh
509 - 510 Cotton Exchange
Bixteth Street
Liverpool
L3 9LQ
Business address
12 Princes Parade
Princes Dock
Liverpool
L3 1BG
Bankers
HSBC
60 Queen Victoria Street
London
EC4N 4TR
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Group profit and loss account
7
Group statement of comprehensive income
8
Group and company balance sheets
9
Group statement of changes in equity
10
Company statement of changes in equity
11
Group statement of cash flows
12
Company statement of cash flows
13
Notes to the financial statements
14 - 34
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the period ended 31 March 2024.

Business review

The group ran an extended 16 month accounting period through to 31 March in order to align accounting reference dates. 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 £8.45m (2022: £7.71m).

Principal risks and uncertainties

The macro principal risks and uncertainties facing the business continue to be those presented by the wider economy, client merger and acquisition activity, the fluctuations of the insurance market cycle and foreign exchange risk.

The ability to attract and retain the best quality staff in a highly competitive sector and geographic location is key to the group’s success. The group provides a dynamic, flexible and rewarding environment that has proven effective in achieving this aim.

Development and performance

The directors are of the opinion that the financial position of the group, and company, are strong as at the balance sheet date and remain confident of further growth.

Key performance indicators

The group 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.

Financial position at the reporting date

The group’s net assets at the reporting date were £25.6m (2022 £26.7m). Cash at bank was £7.7m (2022 £8.7m).

The company’s net assets at the reporting date were £6.4m (2022 £9.4m). Cash at bank was £3.5m (2022 £6.4m).

Revenue

As shown in the group Profit & Loss Account on page 7 revenue for the period was £9.55m (2022 £7.94m). As stated above, 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.

On behalf of the board

D J Whalley
Director
25 July 2024
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
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 group continued to be that of insurance broker.

 

The subsidiaries and associated undertakings principally affecting the profits and net assets of the group in the period are listed in note 15 to the financial statements.

Results and dividends

The results for the period are set out on page 7.

Interim ordinary dividends have been paid amounting to £8,758,728 (2022 £4,684,968).

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

P Berg
M Donnelly
C J Edwards
C Evans
R M H Griffiths (non-executive)
D J Haram
S J Keenan
C Roberts
(Appointed 1 April 2024)
P M Sapiro
J R M Simcox (non-executive)
K J Swainson
D J Whalley
T M Winstanley
(Appointed 1 December 2022)
J Wolstencroft
(Appointed 1 April 2024)
Future developments

The directors expect continued growth in the long term.

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 group 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.

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 3 -
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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
D J Whalley
Director
25 July 2024
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
- 4 -
Opinion

We have audited the financial statements of Griffiths & Armour (Holdings) Limited (Consolidated) (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 March 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group and company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 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:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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.

Other information

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:

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

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 parent 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 group or the parent 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 group and determined that the most significant are those 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:

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including override of controls) and addressed the risk through:

 

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
- 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:

 

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.

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.

Elaine Frances McElroy (Senior Statutory Auditor)
For and on behalf of Lonsdale & Marsh
25 July 2024
Chartered Accountants
Statutory Auditor
509 - 510 Cotton Exchange
Bixteth Street
Liverpool
L3 9LQ
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 MARCH 2024
- 7 -
Period
Year
ended
ended
31 March
30 November
2024
2022
Notes
£
£
Turnover
3
9,545,216
7,938,564
Administrative expenses
(2,009,113)
(1,575,120)
Operating profit
4
7,536,103
6,363,444
Share of profits of joint ventures
721,790
1,363,667
Interest receivable and similar income
8
203,991
6,384
Interest payable and similar expenses
9
(7,366)
(26,713)
Amounts written off investments
10
(1,822)
3,802
Profit before taxation
8,452,696
7,710,584
Tax on profit
11
(1,489,894)
(1,083,583)
Profit for the financial period
27
6,962,802
6,627,001
Profit for the financial period is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2024
- 8 -
Period
Year
ended
ended
31 March
30 November
2024
2022
£
£
Profit for the period
6,962,802
6,627,001
Other comprehensive income net of taxation
Actuarial gain on defined benefit pension schemes
496,000
4,951,000
Currency translation (loss)/gain taken to retained earnings
(32,669)
13,619
Tax relating to other comprehensive income
(1,750)
(11,000)
Other comprehensive income for the period
461,581
4,953,619
Total comprehensive income for the period
7,424,383
11,580,620
Total comprehensive income for the period is all attributable to the owners of the parent company.
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
GROUP AND COMPANY BALANCE SHEETS
AS AT
31 MARCH 2024
31 March 2024
31 March 2024
- 9 -
Group
Company
31 March
30 November
31 March
30 November
2024
2022
2024
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
-
0
1,427
-
0
-
0
Investments
14
2,399,961
3,169,735
3,317,790
3,319,611
2,399,961
3,171,162
3,317,790
3,319,611
Current assets
Debtors
18
16,564,444
16,008,415
19,507
19,507
Non-statutory Trust client bank
2,691,040
15,072,530
-
-
Statutory Trust client bank
1,249,945
2,957,795
-
-
Cash at bank and in hand
7,687,721
8,737,966
3,477,485
6,403,651
28,193,150
42,776,706
3,496,992
6,423,158
Creditors: amounts falling due within one year
19
(5,005,838)
(19,216,247)
(420,466)
(377,400)
Net current assets
23,187,312
23,560,459
3,076,526
6,045,758
Total assets less current liabilities
25,587,273
26,731,621
6,394,316
9,365,369
Provisions for liabilities
Deferred tax liability
21
-
0
(271)
-
0
-
0
Net assets excluding pension liability
25,587,273
26,731,350
6,394,316
9,365,369
Defined benefit pension liability
23
-
(7,000)
-
0
-
0
Net assets
25,587,273
26,724,350
6,394,316
9,365,369
Capital and reserves
Called up share capital
24
4,118,351
4,098,851
4,118,351
4,098,851
Share premium account
25
-
0
2,470,626
-
0
2,470,626
Capital redemption reserve
26
51,550
51,550
51,550
51,550
Profit and loss reserves
27
21,417,372
20,103,323
2,224,415
2,744,342
Total equity
25,587,273
26,724,350
6,394,316
9,365,369

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £5,397,675 (2022 - £3,916,309 profit).

The financial statements were approved by the board of directors and authorised for issue on 25 July 2024 and are signed on its behalf by:
C Evans
D J Whalley
Director
Director
Company registration number 02839315 (England and Wales)
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2024
- 10 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 December 2021
3,496,155
-
0
51,550
13,758,457
17,306,162
Year ended 30 November 2022:
Profit for the year
-
-
-
6,627,001
6,627,001
Other comprehensive income net of taxation:
Actuarial gains on defined benefit plans
-
-
-
4,951,000
4,951,000
Currency translation differences
-
-
-
13,619
13,619
Tax relating to other comprehensive income
-
-
-
(11,000)
(11,000)
Total comprehensive income
-
-
-
11,580,620
11,580,620
Issue of share capital
24,25
602,700
2,470,626
-
-
3,073,326
Dividends
12
-
-
-
(4,684,968)
(4,684,968)
Reduction of shares
24
(4)
-
-
4
-
0
Other movements
-
-
-
(550,790)
(550,790)
Balance at 30 November 2022
4,098,851
2,470,626
51,550
20,103,323
26,724,350
Period ended 31 March 2024:
Profit for the period
-
-
-
6,962,802
6,962,802
Other comprehensive income net of taxation:
Actuarial gains on defined benefit plans
-
-
-
496,000
496,000
Currency translation differences
-
-
-
(32,669)
(32,669)
Tax relating to other comprehensive income
-
-
-
(1,750)
(1,750)
Total comprehensive income
-
-
-
7,424,383
7,424,383
Issue of share capital
24,25
19,500
370,500
-
-
390,000
Dividends
12
-
-
-
(8,758,728)
(8,758,728)
Reduction of shares
25
-
(2,841,126)
-
-
(2,841,126)
Other movements
-
-
-
2,648,394
2,648,394
Balance at 31 March 2024
4,118,351
-
0
51,550
21,417,372
25,587,273

The notes on pages 14 to 34 form part of these financial statements.

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2024
- 11 -
Share capital
Share premium account
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 December 2021
3,496,155
-
0
51,550
3,945,309
7,493,014
Year ended 30 November 2022:
Profit and total comprehensive income for the year
-
-
-
3,916,309
3,916,309
Issue of share capital
24,25
602,700
2,470,626
-
-
3,073,326
Dividends
12
-
-
-
(4,684,968)
(4,684,968)
Reduction of shares
24
(4)
-
-
4
-
0
Other movements
-
-
-
(432,312)
(432,312)
Balance at 30 November 2022
4,098,851
2,470,626
51,550
2,744,342
9,365,369
Period ended 31 March 2024:
Profit and total comprehensive income
-
-
-
5,397,675
5,397,675
Issue of share capital
24,25
19,500
370,500
-
-
390,000
Dividends
12
-
-
-
(8,758,728)
(8,758,728)
Reduction of shares
25
-
(2,841,126)
-
-
(2,841,126)
Other movements
-
-
-
2,841,126
2,841,126
Balance at 31 March 2024
4,118,351
-
0
51,550
2,224,415
6,394,316

The notes on pages 14 to 34 form part of these financial statements.

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2024
- 12 -
2024
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
31
(6,496,303)
3,940,500
Interest paid
(7,366)
(25,713)
Income taxes paid
(1,735,520)
(1,435,133)
Net cash (outflow)/inflow from operating activities
(8,239,189)
2,479,654
Investing activities
Dividends from joint ventures
1,297,298
449,444
Interest received
203,991
6,384
Net cash generated from investing activities
1,501,289
455,828
Financing activities
Proceeds from issue of shares
390,000
2,641,014
Dividends paid to equity shareholders
(8,758,728)
(4,684,968)
Net cash used in financing activities
(8,368,728)
(2,043,954)
Net (decrease)/increase in cash and cash equivalents
(15,106,628)
891,528
Cash and cash equivalents at beginning of period
26,768,291
25,863,144
Effect of foreign exchange rates
(32,957)
13,619
Cash and cash equivalents at end of period
11,628,706
26,768,291
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2024
- 13 -
2024
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
32
(84,630)
(63,570)
Investing activities
Interest received
135,675
633
Dividends received
5,391,517
4,041,292
Net cash generated from investing activities
5,527,192
4,041,925
Financing activities
Proceeds from issue of shares
390,000
2,641,014
Dividends paid to equity shareholders
(8,758,728)
(4,684,968)
Net cash used in financing activities
(8,368,728)
(2,043,954)
Net (decrease)/increase in cash and cash equivalents
(2,926,166)
1,934,401
Cash and cash equivalents at beginning of period
6,403,651
4,469,250
Cash and cash equivalents at end of period
3,477,485
6,403,651
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information

Griffiths & Armour (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 12 Princes Parade, Princes Dock, Liverpool, L3 1BG.

 

The group consists of Griffiths & Armour (Holdings) Limited and all of its subsidiaries.

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 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 consolidated 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 consolidated 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 consolidated financial statements have been prepared under the historical cost convention, modified to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Griffiths & Armour (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company and group have 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.

1.6
Turnover

Group turnover comprises brokerage commission and fees, and a subsidiary company's equity participation in Griffiths & Armour, an insurance broking partnership.

 

Brokerage income is recognised at the date of the 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.

1.7
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
33 1/3% straight line
Fixtures, fittings and 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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Impairment of fixed assets

At each reporting period end date, the group 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 group estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.10
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.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

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.

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
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 group 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 group 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
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 group’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 if, and only if, there is 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.

1.14
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 group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
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.

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -

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.

1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.17
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.

1.18

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 group. Other than the amount receivable for fees and commissions earned on a transaction, no recognition of the insurance broking transaction occurs until the group receives cash in respect of premiums or claims, at which time a corresponding liability is established in favour of the insurer or the client.

 

In certain circumstances the group advances premiums, refunds or claims to insurance underwriters or clients prior to collection. These advances are reflected in the consolidated balance sheet as part of trade receivables.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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

An analysis of the group's turnover is as follows:

2024
2022
£
£
Turnover analysed by geographical market
United Kingdom
5,961,030
5,310,005
Ireland
3,584,186
2,628,559
9,545,216
7,938,564
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 20 -
4
Operating profit
2024
2022
£
£
Operating profit for the period is stated after charging/(crediting):
Exchange losses/(gains)
2,951
(4,515)
Depreciation of owned tangible fixed assets
1,427
10,900
Operating lease charges
51,567
24,522
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 group and company
15,000
13,800
Audit of the financial statements of the company's subsidiaries
32,259
26,058
47,259
39,858
For other services
Other assurance services
9,600
5,400
All other non-audit services
5,070
12,260
14,670
17,660
6
Employees

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

Group
Company
2024
2022
2024
2022
Number
Number
Number
Number
Professional and technical
24
18
12
11
Administration
2
2
-
-
Total
26
20
12
11
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
6
Employees
(Continued)
- 21 -

Their aggregate remuneration comprised:

Group
Company
2024
2022
2024
2022
£
£
£
£
Wages and salaries
1,073,879
845,236
83,744
62,808
Social security costs
123,936
104,948
8,628
6,820
Pension costs
165,757
132,355
-
0
-
0
1,363,572
1,082,539
92,372
69,628
7
Directors' remuneration
2024
2022
£
£
Remuneration for qualifying services
83,744
62,808
8
Interest receivable and similar income
2024
2022
£
£
Interest income
Interest on bank deposits
203,983
6,384
Other interest income
8
-
Total income
203,991
6,384
2024
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
203,983
6,384
9
Interest payable and similar expenses
2024
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
4,340
25,310
Other finance costs:
Net interest on the net defined benefit liability
-
0
1,000
Other interest
3,026
403
Total finance costs
7,366
26,713
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 22 -
10
Amounts written off investments
2024
2022
£
£
Exchange (loss)/gain on financial assets held at cost
(1,822)
3,802
11
Taxation
2024
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,490,165
1,085,654
Deferred tax
Origination and reversal of timing differences
(271)
(2,071)
Total tax charge
1,489,894
1,083,583

Prior to 31 March 2023 the corporation tax rate was 19%. From 1 April 2023 the corporation tax rate increased to 25%.

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
8,452,696
7,710,584
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
2,113,174
1,465,011
Tax effect of expenses that are not deductible in determining taxable profit
(1,219)
11,635
Effect of change in corporation tax rate
(71,597)
-
Effect of revaluations of investments
455
(722)
Other non-reversing timing differences
5,506
6,835
Effect of overseas tax rates
(371,154)
(142,250)
Foreign exchange differences
(4,823)
2,171
Joint venture results accounted for as profit after tax
(180,448)
(259,097)
Taxation charge
1,489,894
1,083,583
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
11
Taxation
(Continued)
- 23 -

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
12
Dividends
2024
2022
Recognised as distributions to equity holders:
£
£
Interim paid
8,758,728
4,684,968
13
Tangible fixed assets
Group
Plant and machinery
Fixtures, fittings and 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
-
0
-
0
-
0
At 30 November 2022
24
1,403
1,427
The company had no tangible fixed assets at 31 March 2024 or 30 November 2022.
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 24 -
14
Fixed asset investments
Group
Company
2024
2022
2024
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
3,077,933
3,078,220
Investments in joint ventures
16
2,360,104
3,128,344
200,000
200,000
Unlisted investments
39,857
41,391
39,857
41,391
2,399,961
3,169,735
3,317,790
3,319,611
Movements in fixed asset investments
Group
Shares in joint ventures
Other investments
Total
£
£
£
Cost or valuation
At 1 December 2022
3,128,344
41,391
3,169,735
Valuation changes
(768,240)
(1,534)
(769,774)
At 31 March 2024
2,360,104
39,857
2,399,961
Carrying amount
At 31 March 2024
2,360,104
39,857
2,399,961
At 30 November 2022
3,128,344
41,391
3,169,735
Movements in fixed asset investments
Company
Shares in subsidiaries and joint ventures
Other investments
Total
£
£
£
Cost or valuation
At 1 December 2022
3,278,220
41,391
3,319,611
Valuation changes
(287)
(1,534)
(1,821)
At 31 March 2024
3,277,933
39,857
3,317,790
Carrying amount
At 31 March 2024
3,277,933
39,857
3,317,790
At 30 November 2022
3,278,220
41,391
3,319,611
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 25 -
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered
Nature of business
Class of
office
shares held
% Held
Griffiths & Armour Global Risks Limited
England & Wales
Insurance broker
Ordinary
100
Griffiths & Armour Insurance Brokers Limited
England & Wales
Insurance broker
Ordinary
100
Griffiths & Armour Limited
England & Wales
Insurance broker
Ordinary
100
Griffiths & Armour Professional Risks Limited
England & Wales
Insurance broker
Ordinary
100
Griffths & Armour Risk Management Limited
England & Wales
Risk management consultancy services
Ordinary
100
Griffiths & Armour Europe DAC
Ireland
Insurance brokers
Ordinary
100

The investments in subsidiaries are all stated at cost. All subsidiaries are included in the consolidated financial statements.

16
Joint ventures

Details of joint ventures at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Evolin Holdings Limited
England & Wales
financial services holding company
Ordinary
43.24

Evolin Holdings Limited (previously GAWS of London Holdings Limited) is accounted for as a joint venture in accordance with the equity method.

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 26 -
17
Financial instruments
Group
Company
2024
2022
2024
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
16,523,905
15,939,258
19,507
19,507
Equity instruments measured at cost less impairment
39,857
41,391
39,857
41,391
Carrying amount of financial liabilities
Measured at amortised cost
4,371,087
18,284,644
411,870
375,291

As required by FRS 102 11.42 the group and parent company have disclosed the carrying amounts of financial assets and liabilities as noted above.

 

Financial assets comprise of:

 

 

Financial liabilities comprise of trade creditors, other creditors, amounts due to participating interests and accruals details of which are disclosed in note 19.

18
Debtors
Group
Company
2024
2022
2024
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
260,214
356,008
-
0
-
0
Amounts owed by group undertakings
-
-
19,507
19,507
Amounts owed by undertakings in which the company has a participating interest
16,263,691
15,471,182
-
-
Prepayments and accrued income
40,539
179,475
-
0
-
0
16,564,444
16,006,665
19,507
19,507
Deferred tax asset (note 21)
-
0
1,750
-
0
-
0
16,564,444
16,008,415
19,507
19,507
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 27 -
19
Creditors: amounts falling due within one year
Group
Company
2024
2022
2024
2022
Notes
£
£
£
£
Trade creditors
3,728,274
17,573,818
-
0
-
0
Amounts owed to group undertakings
8,879
3,841
24,158
24,158
Amounts owed to undertakings in which the group has a participating interest
399,297
372,257
372,710
337,331
Corporation tax payable
59,930
305,285
6,487
-
0
Other taxation and social security
28,896
18,487
2,109
2,109
Deferred income
22
545,925
607,831
-
0
-
0
Other creditors
2,400
2,400
-
0
-
0
Accruals and deferred income
232,237
332,328
15,002
13,802
5,005,838
19,216,247
420,466
377,400
20
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. One of the group members, Griffiths & Armour Global Risks Limited, 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.     

 

Another group member, based in Ireland and licensed by the Central Bank of Ireland (No. C187793), Griffiths & Armour Europe DAC holds Client Premium under a statutory trust in accordance with the requirements of the Irish Consumer Protection Code 2012. These monies are held for the benefit of the related clients and insurer and are also not the property of the broker. As such the monies so held and the related debtors and creditors would not form part of the broker's net assets in the event of a winding-up and would not be available to its general creditors.     

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2022
2024
2022
Group
£
£
£
£
Accelerated capital allowances
-
271
-
-
Retirement benefit obligations
-
-
-
1,750
-
271
-
1,750
The company has no deferred tax assets or liabilities.
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
21
Deferred taxation
(Continued)
- 28 -
Group
Company
2024
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
-
Asset at 31 March 2024
-
-

The deferred tax asset set out above relates to the surplus on the pension scheme combined with accelerated capital allowances.

22
Deferred income
Group
Company
2024
2022
2024
2022
£
£
£
£
Other deferred income
545,925
607,831
-
-
23
Retirement benefit schemes
2024
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
165,757
132,355

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Defined benefit schemes

The group 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 the group only.

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
23
Retirement benefit schemes
(Continued)
- 29 -
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

The amounts included in the balance sheet arising from obligations in respect of defined benefit plans are as follows:

2024
2022
Group
£
£
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
The company had no post employment benefits at 31 March 2024 or 1 December 2022.

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.

Group
2024
2022

Amounts recognised in the profit and loss account

£
£
Net interest on net defined benefit liability
-
1,000
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
23
Retirement benefit schemes
(Continued)
- 30 -
Group
2024
2022

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(4,000)
(9,000)
Less: 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)
Group
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
Group
2024

The defined benefit obligations arise from plans funded as follows:

£
Wholly unfunded obligations
-
Wholly or partly funded obligations
166,000
166,000
Group
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).

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
23
Retirement benefit schemes
(Continued)
- 31 -

Fair value of plan assets at the reporting period end

Group
Group
2024
2022
£
£
Group Pension Contract
184,000
178,000
24
Share capital
Group and company
2024
2022
2024
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A ordinary shares of £1 each
2,911,816
2,911,816
2,911,816
2,911,816
B ordinary shares of £1 each
1,206,535
1,187,035
1,206,535
1,187,035
4,118,351
4,098,851
4,118,351
4,098,851

On 14 February 2022 400 growth shares of 1p each were converted to 432,312 B ordinary shares of £1 each.

 

On 7 March 2022 450 growth shares were cancelled.

 

On 3 October 2022 170,388 B ordinary shares of £1 each were issued for an aggregate consideration of £15.50 each.

 

On 5 October 2023 19,500 B ordinary shares of £1 each were issued for an aggregate consideration of £20.00 each.

25
Share premium account
Group
Company
2024
2022
2024
2022
£
£
£
£
At the beginning of the period
2,470,626
-
0
2,470,626
-
0
Issue of new shares
370,500
2,470,626
370,500
2,470,626
Share capital reduction
(2,841,126)
-
(2,841,126)
-
At the end of the period
-
0
2,470,626
-
0
2,470,626

On 30 October 2023 the parent company passed a special resolution that the share premium account of £2,841,126 be reduced to nil and the amount by which the share capital was reduced be credited to distributable reserves.

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 32 -
26
Capital redemption reserve
Group
Company
2024
2022
2024
2022
£
£
£
£
At the beginning and end of the period
51,550
51,550
51,550
51,550
27
Profit and loss reserves
Group
Company
2024
2022
2024
2022
£
£
£
£
At the beginning of the period
20,103,323
13,758,457
2,744,342
3,945,309
Profit for the period
6,962,802
6,627,001
5,397,675
3,916,309
Dividends
(8,758,728)
(4,684,968)
(8,758,728)
(4,684,968)
Actuarial differences recognised in other comprehensive income
496,000
4,951,000
-
0
-
0
Tax on actuarial differences
(1,750)
(11,000)
-
-
Currency translation differences
(32,669)
13,619
-
0
-
0
Share redemption or reduction
-
4
-
4
Other movements
2,648,394
(550,790)
2,841,126
(432,312)
At the end of the period
21,417,372
20,103,323
2,224,415
2,744,342
28
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2022
2024
2022
£
£
£
£
Within one year
-
1,313
-
-
-
1,313
-
-
GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 33 -
29
Related party transactions
Transactions with related parties

During the period the group entered into the following transactions with related parties:

Commission and fees
Purchase of goods
2024
2022
2024
2022
£
£
£
£
Group
Griffiths & Armour
895,938
749,998
205,934
143,306

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2024
2022
£
£
Group
Griffiths & Armour
395,982
372,257
Company
Griffiths & Armour
372,710
337,331
Entities over which the company has control, joint control or significant influence
24,158
24,158

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2024
2022
Balance
Balance
£
£
Group
Griffiths & Armour
16,263,691
15,471,182
Company
Entities over which the company has control, joint control or significant influence
19,507
19,507
Other information

Griffiths & Armour is a partnership in which P Berg, M Donnelly, C J Edwards, C Evans, D J Haram, S J Keenan, P M Sapiro, K J Swainson and D J Whalley are partners. The partners are also directors of Griffiths & Armour (Holdings) Limited, the parent company of the group.

30
Directors' transactions

Dividends totalling £3,331,032 (2022 - £1,990,310) were paid in the period in respect of shares held by the parent company's directors.

GRIFFITHS & ARMOUR (HOLDINGS) LIMITED (CONSOLIDATED)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 34 -
31
Cash (absorbed by)/generated from group operations
2024
2022
£
£
Profit for the period after tax
6,962,802
6,627,003
Adjustments for:
Share of results of associates and joint ventures
(721,790)
(1,363,667)
Taxation charged
1,489,894
1,083,583
Finance costs
7,366
26,713
Investment income
(203,991)
(6,384)
Depreciation and impairment of tangible fixed assets
1,427
10,900
Other gains and losses
1,822
(3,802)
Pension scheme non-cash movement
489,000
4,906,000
Movements in working capital:
Increase in debtors
(557,779)
(6,982,373)
Decrease in creditors
(13,903,148)
(471,462)
(Decrease)/increase in deferred income
(61,906)
113,989
Cash (absorbed by)/generated from operations
(6,496,303)
3,940,500
32
Cash absorbed by operations - company
2024
2022
£
£
Profit for the period after tax
5,397,675
3,916,310
Adjustments for:
Taxation charged
6,487
-
0
Investment income
(5,527,192)
(4,041,925)
Other gains and losses
1,821
(4,256)
Movements in working capital:
Increase in creditors
36,579
66,301
Cash absorbed by operations
(84,630)
(63,570)
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