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Company registration number: 06813694
The Solid Wall Insulation Guarantee Agency
Company limited by guarantee
Filleted financial statements
30 April 2024
The Solid Wall Insulation Guarantee Agency
Company limited by guarantee
Contents
Directors and other information
Directors responsibilities statement
Statement of financial position
Notes to the financial statements
The Solid Wall Insulation Guarantee Agency
Company limited by guarantee
Directors and other information
Directors Mr R H Deane
Mr D A Lawrence
Mr A W Pargeter (Resigned 2 November 2023)
Mr N Ralph
Mr D F Robson
Mr L W Lambley
Mr R T Storton
Mr M A Gee
Secretary Mr A P Champ
Company number 06813694
Registered office Endeavour House
53 Wrest Park
Silsoe
Bedfordshire
MK45 4HS
Business address Endeavour House
53 Wrest Park
Silsoe
Bedfordshire
MK45 4HS
Auditor Johnsons Chartered Accountants
Ground Floor
1 - 2 Craven Road
Ealing
London
W5 2UA
The Solid Wall Insulation Guarantee Agency
Company limited by guarantee
Directors responsibilities statement
Year ended 30 April 2024
The directors are responsible for preparing the directors report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 1A The Financial Reporting Standards applicable in the UK and Ireland for smaller entities 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 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 judgments and accounting estimates that are reasonable and prudent; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.
The Solid Wall Insulation Guarantee Agency
Company limited by guarantee
Statement of financial position
30 April 2024
2024 2023
Note £ £ £ £
Fixed assets
Tangible assets 6 787 1,050
_______ _______
787 1,050
Current assets
Debtors 7 492,267 476,669
Investments 8 4,087,906 2,890,128
Cash at bank and in hand 297,135 325,288
_______ _______
4,877,308 3,692,085
Creditors: amounts falling due
within one year 9 ( 318,739) ( 391,569)
_______ _______
Net current assets 4,558,569 3,300,516
_______ _______
Total assets less current liabilities 4,559,356 3,301,566
Provisions for liabilities 10 ( 4,745,976) ( 3,882,119)
_______ _______
Net liabilities ( 186,620) ( 580,553)
_______ _______
Capital and reserves
Profit and loss account ( 186,620) ( 580,553)
_______ _______
Members deficit ( 186,620) ( 580,553)
_______ _______
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 24 January 2025 , and are signed on behalf of the board by:
Mr D A Lawrence
Director
Company registration number: 06813694
The Solid Wall Insulation Guarantee Agency
Company limited by guarantee
Notes to the financial statements
Year ended 30 April 2024
1. General information
The company is a private company limited by guarantee, registered in United Kingdom. The address of the registered office is Endeavour House, 53 Wrest Park, Silsoe, Bedfordshire, MK45 4HS.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The year to 30th April 2024 saw SWIGA recovering to previous levels, accessing new sites and work flows, albeit there continues to be delays completing projects in the timescales envisgaed. SWIGA did not lose any major contracting customers and has commenced new work streams, the significant set up costs have now ceased. The surplus for the year of £393,934 includes fair value realised and unrealised gains of £218,627 and investment returns of £84,579. The company has built its cash and investment balances by £1,169,625 to £4,385,041. There were no new major claims paid to guarantee owners, or notified to SWIGA in this accounting period. As a result SWIGA considers there are no going concern issues to report at 30th April 2024.
Judgements and key sources of estimation uncertainty
The estimation of the provision required in respect of claims in respect of guarantees is inevitably subject to inherent uncertainties due to the range of factors which could give rise to potential claims over the 25 year guarantee period. Projected claim rates, anticipated expenditure as adjusted for inflation, the time expected to elapse between the inception of the guarantee and the manifestation of events giving rise to claims, and the notification to and settlement by the company of such claims accentuate these uncertainties
The company takes all reasonable steps to ensure it has appropriate information regarding the assessment of claims however given the inherent uncertainty in estimating the cost of future claims it is likely that any final outcome will differ from the estimate reported at the balance sheet date. Any consequential adjustments to amounts previously reported are reflected in the results for the year in which they are identified.
Turnover
Turnover is measured at the fair value of the consideration received or receivable net of Value Added Tax.
Income derived from the provision of guarantees is initially recognised when all conditions relating to an application for a guarantee have been met. Part of the fee received is allocated to cover the initial costs of providing the guarantee, where applicable part is allocated to cover the cost of obtaining insurance to underwrite the guarantee and is allocated to the period of issue of the insurance policy, and the remainder is allocated over the remaining financial years of the term of the guarantee and is recognised on a straight line basis. The proportion of income relating to the unexpired period of the guarantees is carried forward as an unearned income provision at the balance sheet date.
Underwriting costs
The comany insures against claims arising in respect of certain categories of guarantees issued. The cost of these insurance policies is allocated on a straight line basis over the period of the insurance policy. The proportion of the premium covering the unexpired period of the policy covering more than one year after the balance sheet date is included in debtors in excess of one year
Recoveries due from insurers and premiums due to insurances under contracts in force at the balance sheet date are reconised in debtors and creditors respectively.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the Statement of Income and Retained Earnings except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fittings fixtures and equipment - 25 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates .
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Technical Provision: the estimated value of notified claims resulting from events giving rise to a claim which have occured prior to the year end.
Provision for unearned income: The proportion of income relating to the unexpired period of the guarantee as detailed in the accounting policy for turnover above, which has been deferred to cover the estimated value of claims and expenses attributable to the unexpired periods of the guarantees in force at the balance sheet date.
Unexpired risk provision: the excess of the estimated value of claims and expenses attributable to the unexpired periods of the guarantees in force at the balance sheet date over the provision for unearned income. The assessment is based upon information available at the balance sheet date and does not take into account any new claims events occuring after this date.
Movements in provisions relating to guarantees are recognised in the Statement of Income and Retained Earnings within turnover and cost of sales.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Limited by guarantee
The liability of each member is limited to £100 by guarantee
5. Employee numbers
The average number of persons employed by the company during the year amounted to 3 (2023: 3 ).
6. Tangible assets
Fixtures, fittings and equipment Total
£ £
Cost
At 1 May 2023 and 30 April 2024 1,866 1,866
_______ _______
Depreciation
At 1 May 2023 816 816
Charge for the year 263 263
_______ _______
At 30 April 2024 1,079 1,079
_______ _______
Carrying amount
At 30 April 2024 787 787
_______ _______
At 30 April 2023 1,050 1,050
_______ _______
7. Debtors
2024 2023
£ £
Trade debtors 134,453 55,986
Other debtors 357,814 420,683
_______ _______
492,267 476,669
_______ _______
The debtors above include the following amounts falling due after more than one year:
2024 2023
£ £
Other debtors 129,439 168,059
_______ _______
Other debtors relate to deposits paid in relation to insurance for projects not yet completed. It also includes the balance of insurance sums paid that are prepaid on 10 year policies.
8. Investments
2024 2023
£ £
Charles Stanley investment portfolio 3,530,958 2,463,313
Short term deposit fund 540,861 420,444
Investment fund cash balance 16,087 6,371
_______ _______
4,087,906 2,890,128
_______ _______
9. Creditors: amounts falling due within one year
2024 2023
£ £
Trade creditors 50,193 713
Social security and other taxes 87,396 63,114
Other creditors 181,150 327,742
_______ _______
318,739 391,569
_______ _______
10. Provisions
Notified claims Unearned income Total
£ £ £
At 1 May 2023 75,050 3,807,069 3,882,119
Transfer from guarantee income - 1,053,791 1,053,791
Release back to turnover - ( 196,284) ( 196,284)
Increase in notified claims 7,300 - 7,300
Charged against provision ( 950) - ( 950)
_______ _______ _______
At 30 April 2024 81,400 4,664,576 4,745,976
_______ _______ _______
11. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year - 9,098
Later than 1 year and not later than 5 years - 7,582
_______ _______
- 16,680
_______ _______
12. Summary audit opinion
The auditor's report dated 24 January 2025 was unqualified.
The senior statutory auditor was Edmund Cartwright FCCA FMAAT for and on behalf of Johnsons Chartered Accountants
13. Related party transactions
At the balance sheet date a sum of £26,500 (2023 : £26,500) was owed to 2 founder members. The loans are interest free and repayable on demand. The transactions between the company and its members in relation to guarantee income is not disclosed on the grounds of commercial sensitivity.