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REGISTERED NUMBER: 03044131 (England and Wales)















FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2024

FOR

THE CAVITY INSULATION GUARANTEE AGENCY

THE CAVITY INSULATION GUARANTEE AGENCY (REGISTERED NUMBER: 03044131)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


THE CAVITY INSULATION GUARANTEE AGENCY

COMPANY INFORMATION
FOR THE YEAR ENDED 30 APRIL 2024







DIRECTORS: D L Belton
E Coates
P J Dickin
I R F Gager
M I Morrall
J Pulman
N Ralph
D F Robson
M J Webb





SECRETARY: N Donohue





REGISTERED OFFICE: Unit 3 Union Park
Ouzel Industrial Estate
Grovebury Road
Leighton Buzzard
Bedfordshire
LU7 4ER





REGISTERED NUMBER: 03044131 (England and Wales)





AUDITORS: Ad Valorem Audit Services Limited
Chartered Certified Accountants
& Statutory Auditors
2 Manor Farm Court
Old Wolverton Road
Old Wolverton
Milton Keynes
Buckinghamshire
MK12 5NN

THE CAVITY INSULATION GUARANTEE AGENCY (REGISTERED NUMBER: 03044131)

BALANCE SHEET
30 APRIL 2024

2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible assets 5 762,317 793,868
Investments 6 5,699,889 5,691,828
Investment property 7 791,000 791,000
7,253,206 7,276,696

CURRENT ASSETS
Stocks 3,000 3,000
Debtors 8 1,220,553 1,583,858
Cash at bank and in hand 484,764 414,662
1,708,317 2,001,520
CREDITORS
Amounts falling due within one year 9 658,747 291,050
NET CURRENT ASSETS 1,049,570 1,710,470
TOTAL ASSETS LESS CURRENT
LIABILITIES

8,302,776

8,987,166

CREDITORS
Amounts falling due after more than one
year

10

(375,700

)

(117,629

)

PROVISIONS FOR LIABILITIES 12 (16,110,711 ) (17,436,697 )
NET LIABILITIES (8,183,635 ) (8,567,160 )

RESERVES
Income and expenditure account 13 (8,183,635 ) (8,567,160 )
(8,183,635 ) (8,567,160 )

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 30 January 2025 and were signed on its behalf by:





I R F Gager - Director


THE CAVITY INSULATION GUARANTEE AGENCY (REGISTERED NUMBER: 03044131)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024


1. STATUTORY INFORMATION

The Cavity Insulation Guarantee Agency is a private company, limited by guarantee , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3. ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS
The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

PREPARATION OF CONSOLIDATED FINANCIAL STATEMENTS
The financial statements contain information about The Cavity Insulation Guarantee Agency as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

ADEQUACY OF GUARANTEE FUNDS
The principal activity of the company is to provide a uniform and dependable independent guarantee for the cavity insulation industry. The Council of Management's primary objective is to review on an annual basis that the company will have sufficient resources to ensure that guarantee claims, both notified to it at the year end and those that may arise in the future, can be met as they fall due.

In doing so the Council considers the sum of the deferred income reserve, the provision for notified claims and the provision for unexpired risk to assess whether this overall 'guarantee reserve' is sufficient to meet the claims that are likely to arise based on current projections of claim rates over the unexpired guarantee period and the anticipated expenditure on settling claims as adjusted for anticipated inflation.

TURNOVER
Turnover is stated after allocating part of the guarantee fee received from the installer on the completion of each cavity wall insulation to deferred income. This deferred income is allocated to turnover in equal annual instalments over the 25 year period of the CIGA guarantee.

TANGIBLE FIXED ASSETS
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on cost

Tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses.

Freehold property is not depreciated in the year as the directors consider the market value to be consistent with the original cost stated.

INVESTMENTS IN SUBSIDIARIES

THE CAVITY INSULATION GUARANTEE AGENCY (REGISTERED NUMBER: 03044131)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024


3. ACCOUNTING POLICIES - continued
Investments in subsidiary undertakings are recognised at cost.

INVESTMENT PROPERTY
Investment property is measured initially at cost, which includes purchase price and any directly attributable expenditure. Investment property is revalued to its fair value at each reporting date and any changes in fair value are recognised in profit or loss.

FIXED ASSET INVESTMENTS
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses. Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

STOCKS
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

TAXATION
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

DEFERRED INCOME
In order to accumulate guarantee funds the company allocates part of the guarantee fee received from the installer on the completion of each cavity wall insulation to deferred income. An annual judgement is made as to what percentage of the guarantee fee is allocated straight to turnover and the balance to deferred income, based on market conditions and claims history.

This deferred income is allocated to the profit and loss account in equal instalments over the 25 year period of the CIGA guarantee commensurate with the expected incidence of claims. In reaching its assessment of the pattern of claims the company makes reference to past experience. The deferred income represents the proportion of the guarantee fee issued in the year and in previous years that relate to the unexpired risk period of the guarantees in issue.

GUARANTEE CLAIMS PAID
Guarantee claims incurred comprise claims and related expenses paid in the year, together with the movement on the provision for outstanding claims notified but not settled at the year end date and the provision for unexpired risk on guarantee claims in issue.

PENSION COSTS AND OTHER POST-RETIREMENT BENEFITS
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

THE CAVITY INSULATION GUARANTEE AGENCY (REGISTERED NUMBER: 03044131)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024


3. ACCOUNTING POLICIES - continued

GENERAL 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.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and are subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are disclosed in the profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

PROVISION FOR NOTIFIED CLAIMS
A provision is made in respect of all claims notified to the company by guarantee holders as at the year end date. In estimating the cost of notified but not settled claims, the Council of Management has regard to the claim circumstances as reported and the cost of settling claims with similar characteristics in previous periods.

PROVISION FOR UNEXPIRED RISK
An unexpired risk provision is made where the estimated cost of claims and related expenses exceed the unearned fee, after taking account of future investment income and cost inflation. An assessment is made at the year-end for the estimated cost of claims which may arise during the unexpired period of each guarantee in force at the balance sheet date.

The provisions are inevitably subject to inherent uncertainties because of the range of factors which could give rise to potential claims over the 25 year guarantee period. The time expected to elapse between the inception of the guarantee, the manifestation of events giving rise to claims and the notification to and settlement by the company of such claims accentuate these uncertainties.

4. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 9 (2023 - 8 ) .

THE CAVITY INSULATION GUARANTEE AGENCY (REGISTERED NUMBER: 03044131)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024


5. TANGIBLE FIXED ASSETS
Fixtures
Freehold and Motor
property fittings vehicles Totals
£ £ £ £
COST
At 1 May 2023 507,241 240,436 370,025 1,117,702
Additions - 71,999 67,519 139,518
Disposals - (84,844 ) (135,113 ) (219,957 )
At 30 April 2024 507,241 227,591 302,431 1,037,263
DEPRECIATION
At 1 May 2023 - 133,650 190,184 323,834
Charge for year - 41,112 51,326 92,438
Eliminated on disposal - (74,616 ) (66,710 ) (141,326 )
At 30 April 2024 - 100,146 174,800 274,946
NET BOOK VALUE
At 30 April 2024 507,241 127,445 127,631 762,317
At 30 April 2023 507,241 106,786 179,841 793,868

6. FIXED ASSET INVESTMENTS
Shares in
group Other
undertakings investments Totals
£ £ £
COST OR VALUATION
At 1 May 2023 2,000 5,689,828 5,691,828
Additions 1,000 999,972 1,000,972
Disposals - (1,546,973 ) (1,546,973 )
Revaluations - 554,062 554,062
At 30 April 2024 3,000 5,696,889 5,699,889
NET BOOK VALUE
At 30 April 2024 3,000 5,696,889 5,699,889
At 30 April 2023 2,000 5,689,828 5,691,828

Cost or valuation at 30 April 2024 is represented by:

Shares in
group Other
undertakings investments Totals
£ £ £
Valuation in 2022 - 2,700 2,700
Valuation in 2023 - (90,970 ) (90,970 )
Valuation in 2024 - 554,062 554,062
Cost 3,000 5,231,097 5,234,097
3,000 5,696,889 5,699,889

THE CAVITY INSULATION GUARANTEE AGENCY (REGISTERED NUMBER: 03044131)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024


7. INVESTMENT PROPERTY
Total
£
FAIR VALUE
At 1 May 2023
and 30 April 2024 791,000
NET BOOK VALUE
At 30 April 2024 791,000
At 30 April 2023 791,000

Fair value at 30 April 2024 is represented by:
£
Valuation in 2024 166,527
Cost 624,473
791,000

If the investment properties had not been revalued they would have been included at the following historical cost:

2024 2023
£ £
Cost 624,473 624,473

The investment properties were valued on an open market basis on 30 April 2024 by the directors .

8. DEBTORS
2024 2023
£ £
Amounts falling due within one year:
Trade debtors 19,191 46,765
Amounts owed by group undertakings 150,731 531,418
Other debtors 103,086 107,040
273,008 685,223

Amounts falling due after more than one year:
Amounts owed by group undertakings 947,545 898,635

Aggregate amounts 1,220,553 1,583,858

THE CAVITY INSULATION GUARANTEE AGENCY (REGISTERED NUMBER: 03044131)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024


9. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Trade creditors 160,256 185,725
Amounts owed to group undertakings 412,889 24,247
Taxation and social security 17,048 13,262
Other creditors 68,554 67,816
658,747 291,050

10. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£ £
Amounts owed to group undertakings 375,700 117,629

11. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£ £
Within one year 1,959 1,958
Between one and five years - 1,959
1,959 3,917

12. PROVISIONS FOR LIABILITIES
2024 2023
£ £
Other provisions
Technical provisions 7,241,309 7,726,097
Deferred guarantee income 8,869,402 9,710,600
16,110,711 17,436,697

13. RESERVES
Income and
expenditure
account
£

At 1 May 2023 (8,567,160 )
Surplus for the year 383,525
At 30 April 2024 (8,183,635 )

14. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Darren Kerins FCCA (Senior Statutory Auditor)
for and on behalf of Ad Valorem Audit Services Limited

THE CAVITY INSULATION GUARANTEE AGENCY (REGISTERED NUMBER: 03044131)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024


15. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

16. ULTIMATE CONTROLLING PARTY

No member of the company or member of the Council of Management has overall control of the company.

17. LIMITED BY GUARANTEE

The liability of each member is limited to a contribution of £1 in the event of the company being wound up while they are a member, or within one year they cease to be a member, towards the payment of debts and liabilities of the company contracted before they cease to be a member. At 30 April 2024 there were 97 members (2023 - 119).