REGISTERED NUMBER: 08873624 (England and Wales) |
Group Strategic Report, |
Report of the Director and |
Consolidated Financial Statements |
for the Year Ended 31 July 2024 |
for |
ITUS Group Limited |
REGISTERED NUMBER: 08873624 (England and Wales) |
Group Strategic Report, |
Report of the Director and |
Consolidated Financial Statements |
for the Year Ended 31 July 2024 |
for |
ITUS Group Limited |
ITUS Group Limited (Registered number: 08873624) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 July 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Director | 3 |
Report of the Independent Auditors | 5 |
Consolidated Statement of Income and Retained Earnings | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
ITUS Group Limited |
Company Information |
for the Year Ended 31 July 2024 |
DIRECTOR: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Certified Accountants and |
Statutory Auditor |
Leofric House |
Binley Road |
Coventry |
CV3 1JN |
ITUS Group Limited (Registered number: 08873624) |
Group Strategic Report |
for the Year Ended 31 July 2024 |
The director presents her strategic report of the company and the group for the year ended 31 July 2024. |
REVIEW OF BUSINESS |
The key performance indicators during the period were are follows: |
31 July 2024 | 31 July 2023 |
£ | £ |
Turnover | 5,938,774 | 6,930,744 |
Gross profit | 5,073,792 | 5,944,477 |
Administrative expenses | 4,697,780 | 4,431,721 |
Operating profit | 614,719 | 1,774,621 |
Analysis of results |
Turnover for the year amounted to £5,938,774 (2023: £6,930,744). This is decreased on the previous year. While demand remained strong, trading subsidiaries (notably Ark Insurance Group Limited) had supply constraints which limited the volume of certain types of insurance activity that could be undertaken. |
The management of Ark Insurance Group Limited are working with a portfolio of insurers to boost capacity. As building such relationships can take time, the group continues to closely monitor costs while the revenue streams are built back up. |
The main trading businesses of the group are Ark Insurance Group Limited and Peacock Insurance Services Limited. Other than the particular issues for certain types of insurance policies, both renewals and demand from new customers remains strong. |
Administrative expenses have increased, with staff costs remaining the largest component. The headcount has decreased slightly to 75 employees (2023: 77). The group continues to pay increased salaries to retain key staff in an increasingly competitive market, while matching headcount to the level of activity. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group is subject to risks and uncertainties associated with economic and political conditions around the United Kingdom. |
The group's operations may continue to be affected by Brexit, with the group withdrawing from activity with insurance customers based in the EU due to current regulations and uncertainties. |
There is significant uncertainty in the current economic climate, with the medium to long term effects of tariffs (and potential trade wars) yet to be fully evaluated. |
The group will continue to offer a mix of insurance policy types, to a diverse range of customers. The group will continue to investigate new revenue streams, and new technological developments. |
Through a diverse range of customers and insurance policy types, the group aims to mitigate the risks of being overly dependent on a particular range of policies or insurers. |
FUTURE DEVELOPMENTS |
The group will continue to develop its existing product offerings, while looking to generate new revenue streams where appropriate. |
ON BEHALF OF THE BOARD: |
ITUS Group Limited (Registered number: 08873624) |
Report of the Director |
for the Year Ended 31 July 2024 |
The director presents her report with the financial statements of the company and the group for the year ended 31 July 2024. |
PRINCIPAL ACTIVITIES |
The principal activities of the group in the year under review were those of an insurance underwriting agency, and insurance broking, as regulated by the Financial Conduct Authority (FCA). |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
Ordinary A. 0.01p | - | £9.35 | - 31 March 2024 |
Ordinary D 0.01p | - £9.47066 | - 31 March 2024 |
The total distribution of dividends for the year ended 31 July 2024 will be £ 107,706 . |
DIRECTOR |
STREAMLINED ENERGY AND CARBON REPORTING |
The group operates principally from modern premises at 1410 Spring Place, Coventry. The building is owned by the group, and has been developed to meet the needs of the business. The management team are mindful of the carbon footprint of the business, and have used energy efficient materials within the fit out of the building, in addition to energy saving measures such as motion detecting lights, LED lighting, and efficient heating. |
STATEMENT OF DIRECTOR'S RESPONSIBILITIES |
The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations. |
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless she is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable her to ensure that the financial statements comply with the Companies Act 2006. She is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and she has taken all the steps that she ought to have taken as a director in order to make herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ITUS Group Limited (Registered number: 08873624) |
Report of the Director |
for the Year Ended 31 July 2024 |
AUDITORS |
The auditors, Leigh Christou Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
ITUS Group Limited |
Opinion |
We have audited the financial statements of ITUS Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2024 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 July 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the 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 director with respect to going concern are described in the relevant sections of this report. |
Key audit matters |
Key audit matters are those matters that, in the auditor's professional judgement, were of most significance in the audit of the financial statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) identified by the auditors, including those which had the greatest effect on: the overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team.These matters, and any comments we make on the results of our procedures thereon, were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. |
This is not a complete list of all risks identified by our audit |
• Valuation of investment property |
• Recoverability of related party loans |
• Presentation and accounting treatment of client money |
• Recoverability of insurance debtors |
• Compliance with Financial Conduct Authority (FCA) regulations in relation to client money |
• Completeness of insurance creditors |
• Completeness of liabilities |
• Revenue recognition |
Report of the Independent Auditors to the Members of |
ITUS Group Limited |
Other information |
The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements. |
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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of director's remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of director |
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the group's and 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
ITUS Group Limited |
Auditors' 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 a Report of the Auditors 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: |
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: |
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. |
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going |
concern. |
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. |
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
ITUS Group Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
Chartered Certified Accountants and |
Statutory Auditor |
Leofric House |
Binley Road |
Coventry |
CV3 1JN |
ITUS Group Limited (Registered number: 08873624) |
Consolidated |
Statement of Income and |
Retained Earnings |
for the Year Ended 31 July 2024 |
31.7.24 | 31.7.23 |
Notes | £ | £ |
TURNOVER | 3 | 5,938,774 | 6,930,744 |
Cost of sales | 864,982 | 986,267 |
GROSS PROFIT | 5,073,792 | 5,944,477 |
Administrative expenses | 4,697,780 | 4,431,721 |
376,012 | 1,512,756 |
Other operating income | 4 | 238,707 | 261,865 |
OPERATING PROFIT | 6 | 614,719 | 1,774,621 |
Exceptional item | 7 | - | 324,372 |
614,719 | 1,450,249 |
Interest receivable and similar income | 8 | 117,024 | 34,962 |
731,743 | 1,485,211 |
Interest payable and similar expenses | 9 | 82,325 | 82,631 |
PROFIT BEFORE TAXATION | 649,418 | 1,402,580 |
Tax on profit | 10 | 159,227 | 363,070 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year | 5,431,962 | 4,417,452 |
Dividends | 12 | (107,706 | ) | (25,000 | ) |
RETAINED EARNINGS FOR THE GROUP AT END OF YEAR |
5,814,447 |
5,431,962 |
Profit attributable to: |
Owners of the parent | 490,191 | 1,039,510 |
ITUS Group Limited (Registered number: 08873624) |
Consolidated Balance Sheet |
31 July 2024 |
31.7.24 | 31.7.23 |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 | 126,769 | 134,660 |
Tangible assets | 14 | 205,962 | 241,324 |
Investments | 15 | - | - |
Investment property | 16 | 3,609,963 | 3,598,244 |
3,942,694 | 3,974,228 |
CURRENT ASSETS |
Debtors | 17 | 3,307,400 | 3,416,497 |
Cash at bank | 18 | 4,821,426 | 6,129,273 |
8,128,826 | 9,545,770 |
CREDITORS |
Amounts falling due within one year | 19 | 4,261,771 | 5,879,889 |
NET CURRENT ASSETS | 3,867,055 | 3,665,881 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
7,809,749 |
7,640,109 |
CREDITORS |
Amounts falling due after more than one year |
20 |
(1,834,239 |
) |
(2,019,661 |
) |
PROVISIONS FOR LIABILITIES | 24 | (122,810 | ) | (150,233 | ) |
NET ASSETS | 5,852,700 | 5,470,215 |
CAPITAL AND RESERVES |
Called up share capital | 25 | 3 | 3 |
Share premium | 26 | 38,250 | 38,250 |
Retained earnings | 26 | 5,814,447 | 5,431,962 |
SHAREHOLDERS' FUNDS | 5,852,700 | 5,470,215 |
The financial statements were approved by the director and authorised for issue on 17 April 2025 and were signed by: |
R Gow - Director |
ITUS Group Limited (Registered number: 08873624) |
Company Balance Sheet |
31 July 2024 |
31.7.24 | 31.7.23 |
Notes | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 13 |
Tangible assets | 14 |
Investments | 15 |
Investment property | 16 |
CURRENT ASSETS |
Debtors | 17 |
Cash at bank | 18 |
CREDITORS |
Amounts falling due within one year | 19 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 25 |
Share premium | 26 |
Retained earnings | 26 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 761,820 | 1,329,117 |
The financial statements were approved by the director and authorised for issue on |
ITUS Group Limited (Registered number: 08873624) |
Consolidated Cash Flow Statement |
for the Year Ended 31 July 2024 |
31.7.24 | 31.7.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (668,586 | ) | 2,428,595 |
Interest paid | (80,972 | ) | (81,156 | ) |
Interest element of hire purchase payments paid |
(1,353 |
) |
(1,475 |
) |
Tax paid | (391,514 | ) | (339,357 | ) |
Net cash from operating activities | (1,142,425 | ) | 2,006,607 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (51,033 | ) | (55,821 | ) |
Purchase of tangible fixed assets | (33,130 | ) | (114,709 | ) |
Purchase of investment property | (11,719 | ) | (36,682 | ) |
Sale of tangible fixed assets | - | 23,280 |
Interest received | 117,024 | 34,962 |
Net cash from investing activities | 21,142 | (148,970 | ) |
Cash flows from financing activities |
Loan repayments in year | (171,741 | ) | (174,437 | ) |
Capital repayments in year | (11,054 | ) | (12,048 | ) |
Amount introduced by directors | 616,287 | - |
Amount withdrawn by directors | (512,350 | ) | (624,017 | ) |
Equity dividends paid | (107,706 | ) | (25,000 | ) |
Net cash from financing activities | (186,564 | ) | (835,502 | ) |
(Decrease)/increase in cash and cash equivalents | (1,307,847 | ) | 1,022,135 |
Cash and cash equivalents at beginning of year |
2 |
6,129,273 |
5,107,138 |
Cash and cash equivalents at end of year | 2 | 4,821,426 | 6,129,273 |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 July 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.7.24 | 31.7.23 |
£ | £ |
Profit before taxation | 649,418 | 1,402,580 |
Depreciation charges | 127,417 | 125,212 |
Profit on disposal of fixed assets | - | (13,133 | ) |
Finance costs | 82,325 | 82,631 |
Finance income | (117,024 | ) | (34,962 | ) |
742,136 | 1,562,328 |
Decrease/(increase) in trade and other debtors | 68,316 | (699,495 | ) |
(Decrease)/increase in trade and other creditors | (1,479,038 | ) | 1,565,762 |
Cash generated from operations | (668,586 | ) | 2,428,595 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 July 2024 |
31.7.24 | 1.8.23 |
£ | £ |
Cash and cash equivalents | 4,821,426 | 6,129,273 |
Year ended 31 July 2023 |
31.7.23 | 1.8.22 |
£ | £ |
Cash and cash equivalents | 6,129,273 | 5,107,138 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.8.23 | Cash flow | At 31.7.24 |
£ | £ | £ |
Net cash |
Cash at bank | 6,129,273 | (1,307,847 | ) | 4,821,426 |
6,129,273 | (1,307,847 | ) | 4,821,426 |
Debt |
Finance leases | (11,054 | ) | 11,054 | - |
Debts falling due within 1 year | (159,194 | ) | (13,682 | ) | (172,876 | ) |
Debts falling due after 1 year | (2,019,661 | ) | 185,422 | (1,834,239 | ) |
(2,189,909 | ) | 182,794 | (2,007,115 | ) |
Total | 3,939,364 | (1,125,053 | ) | 2,814,311 |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 July 2024 |
1. | STATUTORY INFORMATION |
ITUS Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Income relating to insurance broking is recognised when the policy has been incepted, completed and confirmed. |
Income from brokerage and fees on adjustment premiums, binding authorities and treaties are recognised on a periodic basis when the consideration due is confirmed by the third parties. |
Survey fees are recognised on an accrual basis over the term of the contract. |
Other fees receivable are recognised in the period to which they relate or when they can be measured with reasonable certainty. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
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. |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
2. | ACCOUNTING POLICIES - continued |
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. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Insurance debtors and creditors |
The company acts as agent in broking the insurable risks of clients and normally is not liable as a principal for premiums due to underwriters or for claims payable to clients. Notwithstanding the legal relationship with clients and underwriters, the company has followed generally accepted accounting practices for insurance brokers by showing debtors, creditors and cash balances relating to insurance business as assets and liabilities of the company itself. This recognises that the company is entitled to retain the investment income on any cash flows arising from these transactions. |
In the ordinary course of insurance broking business, settlement is required to be made with certain market settlement bureau, insurance intermediaries or insurance companies on the basis of the net balance due to or from them rather than the amount due to or from the individual third parties which it represents. |
However, assets and liabilities may not be offset unless there is a legally enforceable right to set off the recognised amounts, and therefore insurance broking debtors and creditors are shown gross within these financial statements. |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the group. |
An analysis of turnover by class of business is given below: |
31.7.24 | 31.7.23 |
£ | £ |
Insurance broking | 5,281,765 | 6,132,573 |
Surveying services | 657,009 | 798,171 |
5,938,774 | 6,930,744 |
4. | OTHER OPERATING INCOME |
31.7.24 | 31.7.23 |
£ | £ |
Rents received | 233,544 | 259,865 |
Grants received | 5,163 | 2,000 |
238,707 | 261,865 |
5. | EMPLOYEES AND DIRECTORS |
31.7.24 | 31.7.23 |
£ | £ |
Wages and salaries | 2,355,685 | 2,309,829 |
Social security costs | 225,523 | 226,449 |
Other pension costs | 36,268 | 152,225 |
2,617,476 | 2,688,503 |
The average number of employees during the year was as follows: |
31.7.24 | 31.7.23 |
Management | 8 | 8 |
Administrative | 67 | 69 |
The average number of employees by undertakings that were proportionately consolidated during the year was 75 (2023 - 77 ) . |
31.7.24 | 31.7.23 |
£ | £ |
Director's remuneration | 6,561 | 6,420 |
Director's pension contributions to money purchase schemes | 5 | 59,991 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 1 | 1 |
During the year R Gow was the sole director of ITUS Group Limited. |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.7.24 | 31.7.23 |
£ | £ |
Other operating leases | 32,830 | 39,585 |
Depreciation - owned assets | 62,431 | 63,647 |
Depreciation - assets on hire purchase contracts | 6,061 | 8,082 |
Profit on disposal of fixed assets | - | (13,133 | ) |
Development costs amortisation | 58,924 | 53,484 |
Auditors' remuneration | 37,644 | 35,640 |
Auditors' remuneration for non audit work | 51,453 | 56,850 |
Foreign exchange differences | 1,728 | 329 |
7. | EXCEPTIONAL ITEMS |
31.7.24 | 31.7.23 |
£ | £ |
Exceptional item | - | (324,372 | ) |
During the year a sum of £0 (2023: £324,372) was expensed in relation to a historic profit commission calculation dispute with an insurer. A payment in full and final settlement of the liability was made in the year. |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
31.7.24 | 31.7.23 |
£ | £ |
Deposit account interest | 83,050 | 23,280 |
Other interest received | 16,028 | 7,682 |
Connected company interest | 15,006 | - |
HMRC interest received | 2,940 | 4,000 |
117,024 | 34,962 |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.7.24 | 31.7.23 |
£ | £ |
Bank loan interest | 77,383 | 81,061 |
HMRC interest | 3,589 | 95 |
Hire purchase | 1,353 | 1,475 |
82,325 | 82,631 |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.7.24 | 31.7.23 |
£ | £ |
Current tax: |
UK corporation tax | 186,650 | 307,478 |
Deferred tax | (27,423 | ) | 55,592 |
Tax on profit | 159,227 | 363,070 |
UK corporation tax has been charged at 25 % (2023 - 21 %). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.7.24 | 31.7.23 |
£ | £ |
Profit before tax | 649,418 | 1,402,580 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 21 %) |
162,355 |
294,542 |
Effects of: |
Expenses not deductible for tax purposes | 27,521 | 19,050 |
Capital allowances in excess of depreciation | (12,667 | ) | - |
Depreciation in excess of capital allowances | - | 20,990 |
Adjustments to tax charge in respect of previous periods | (17,982 | ) | - |
Change in tax rates | - | 28,488 |
Total tax charge | 159,227 | 363,070 |
11. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
12. | DIVIDENDS |
31.7.24 | 31.7.23 |
£ | £ |
Ordinary A. shares of 0.01p each |
Interim | 93,500 | - |
Ordinary D shares of 0.01p each |
Interim | 14,206 | 25,000 |
107,706 | 25,000 |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
13. | INTANGIBLE FIXED ASSETS |
Group |
Developmen |
costs |
£ |
COST |
At 1 August 2023 | 304,497 |
Additions | 51,033 |
At 31 July 2024 | 355,530 |
AMORTISATION |
At 1 August 2023 | 169,837 |
Amortisation for year | 58,924 |
At 31 July 2024 | 228,761 |
NET BOOK VALUE |
At 31 July 2024 | 126,769 |
At 31 July 2023 | 134,660 |
Company |
Development |
Goodwill | costs | Totals |
£ | £ | £ |
COST |
At 1 August 2023 |
Additions |
At 31 July 2024 |
AMORTISATION |
At 1 August 2023 |
Amortisation for year |
At 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
14. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor | Computer |
machinery | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 August 2023 | 8,289 | 144,513 | 130,382 | 319,437 | 602,621 |
Additions | - | 5,224 | 3,000 | 24,906 | 33,130 |
At 31 July 2024 | 8,289 | 149,737 | 133,382 | 344,343 | 635,751 |
DEPRECIATION |
At 1 August 2023 | 3,468 | 49,884 | 55,723 | 252,222 | 361,297 |
Charge for year | 723 | 14,800 | 19,039 | 33,930 | 68,492 |
At 31 July 2024 | 4,191 | 64,684 | 74,762 | 286,152 | 429,789 |
NET BOOK VALUE |
At 31 July 2024 | 4,098 | 85,053 | 58,620 | 58,191 | 205,962 |
At 31 July 2023 | 4,821 | 94,629 | 74,659 | 67,215 | 241,324 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 August 2023 | 58,691 |
Reclassification/transfer | (58,691 | ) |
At 31 July 2024 | - |
DEPRECIATION |
At 1 August 2023 | 34,447 |
Charge for year | 6,061 |
Reclassification/transfer | (40,508 | ) |
At 31 July 2024 | - |
NET BOOK VALUE |
At 31 July 2024 | - |
At 31 July 2023 | 24,244 |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
15. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertaking |
£ |
COST |
At 1 August 2023 |
and 31 July 2024 |
NET BOOK VALUE |
At 31 July 2024 |
At 31 July 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Leofric House, 18b Binley Road, Coventry, CV3 1JN |
Nature of business: |
% |
Class of shares: | holding |
31.7.24 | 31.7.23 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Leofric House, 18b Binley Road, Coventry, CV3 1JN |
Nature of business: |
% |
Class of shares: | holding |
31.7.24 | 31.7.23 |
£ | £ |
Aggregate capital and reserves |
(Loss)/profit for the year | ( |
) |
Registered office: Leofric House, 18b Binley Road, Coventry, CV3 1JN |
Nature of business: |
% |
Class of shares: | holding |
31.7.24 | 31.7.23 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
15. | FIXED ASSET INVESTMENTS - continued |
Registered office: Leofric House, 18b Binley Road, Coventry, CV3 1JN |
Nature of business: |
% |
Class of shares: | holding |
31.7.24 | 31.7.23 |
£ | £ |
Aggregate capital and reserves |
Registered office: Leofric House, 18b Binley Road, Coventry, CV3 1JN |
Nature of business: |
% |
Class of shares: | holding |
31.7.24 | 31.7.23 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Leofric House, 18b Binley Road, Coventry, CV3 1JN |
Nature of business: |
% |
Class of shares: | holding |
31.7.24 | 31.7.23 |
£ | £ |
Aggregate capital and reserves | ( |
) |
(Loss)/profit for the year | ( |
) |
Registered office: Leofric House, 18B Binley Road, Coventry, CV3 1JN |
Nature of business: |
% |
Class of shares: | holding |
31.7.24 | 31.7.23 |
£ | £ |
Aggregate capital and reserves |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
16. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 August 2023 | 3,598,244 |
Additions | 11,719 |
At 31 July 2024 | 3,609,963 |
NET BOOK VALUE |
At 31 July 2024 | 3,609,963 |
At 31 July 2023 | 3,598,244 |
Fair value at 31 July 2024 is represented by: |
£ |
Valuation in 2021 | 208,593 |
Cost | 3,401,370 |
3,609,963 |
On 22 September 2021, a formal valuation report on the investment property at 1410 Spring Place, Herald Avenue, Coventry, CV5 6UB, was prepared by Matt Greenaway MRICS of BNP Paribas Real Estate. |
The valuation of the investment property in the financial statements at the year end has been amended to reflect the update in the market value reflected in this valuation report, and subsequent property improvements. |
The director has confirmed with experienced property valuers to confirm no significant change to market value since the most recent formal valuation. |
17. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.7.24 | 31.7.23 | 31.7.24 | 31.7.23 |
£ | £ | £ | £ |
Client debtors | 1,276,507 | 1,627,969 |
Trade debtors | 32,029 | 45,273 | - | - |
Amounts owed by group undertakings | - | - |
Other debtors | 726,282 | 147,978 |
Accrued commission | 498,155 | 774,170 | - | - |
Directors' current accounts | 512,350 | 616,287 | 512,350 | 616,287 |
Tax | 76,000 | 12,844 |
Prepayments | 186,077 | 191,976 |
3,307,400 | 3,416,497 |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
18. | CASH AT BANK |
Client bank account balances are included within Cash at Bank. |
The group holds restricted client account cash balances in respect of its insurance activities. This cash is held in client money bank accounts and cannot be used for the group's working capital purposes. |
2024 | 2023 |
£ | £ |
Client bank account | 1,839,247 | 2,565,466 |
19. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
31.7.24 | 31.7.23 | 31.7.24 | 31.7.23 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 21) | 172,876 | 159,194 |
Hire purchase contracts (see note 22) | - | 11,054 |
Insurance creditors | 2,705,468 | 3,711,429 |
Trade creditors | 237,570 | 117,516 | 4,290 | 7,393 |
Amounts owed to group undertakings | - | - |
Tax | 42,688 | 184,396 |
Social security and other taxes | 51,085 | 53,188 |
Pension creditor | 737 | 1,455 | - | - |
VAT | 16,247 | 33,307 | - | - |
Other creditors | 16,254 | 20,938 |
Unearned commission | 410,286 | 482,006 | - | - |
Accrued expenses | 608,560 | 1,105,406 |
4,261,771 | 5,879,889 |
20. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
31.7.24 | 31.7.23 |
£ | £ |
Bank loans (see note 21) | 1,834,239 | 2,019,661 |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
21. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
31.7.24 | 31.7.23 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 172,876 | 159,194 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 172,875 | 160,033 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 284,081 | 334,201 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 1,377,283 | 1,525,427 |
22. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
31.7.24 | 31.7.23 |
£ | £ |
Net obligations repayable: |
Within one year | - | 11,054 |
23. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
31.7.24 | 31.7.23 |
£ | £ |
Bank loans | 2,007,115 | 2,178,855 |
Hire purchase contracts | - | 11,054 |
2,007,115 | 2,189,909 |
Bank loans include CBILS loans, where subsidiary companies have provided a fixed and floating charge over their assets in respect of these loans. |
Bank loans include a mortgage secured by a charge over the property at 1410 Spring Place, Herald Avenue, Coventry, CV5 6UB. |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
24. | PROVISIONS FOR LIABILITIES |
Group |
31.7.24 | 31.7.23 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 70,662 | 92,272 |
Other timing differences | 52,148 | 57,961 |
122,810 | 150,233 |
Group |
Deferred |
tax |
£ |
Balance at 1 August 2023 | 150,233 |
Credit to Income Statement during year | (27,423 | ) |
Balance at 31 July 2024 | 122,810 |
25. | CALLED UP SHARE CAPITAL |
Allotted, issued, and fully paid: |
Number | Class | Nominal value | 31.7.21 | 31.7.20 |
£ | £ |
10,000 | Ordinary A. | £0.0001 | 1 | 1 |
10,000 | Ordinary B. | £0.0001 | 1 | 1 |
10,000 | Ordinary C. | £0.0001 | 1 | 1 |
1,500 | Ordinary D. | £0.0001 | - | - |
3 | 3 |
Ordinary D. shares are non-voting. |
All other Ordinary shares have 1 vote per share. |
26. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 August 2023 | 5,431,962 | 38,250 | 5,470,212 |
Profit for the year | 490,191 | 490,191 |
Dividends | (107,706 | ) | (107,706 | ) |
At 31 July 2024 | 5,814,447 | 38,250 | 5,852,697 |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
26. | RESERVES - continued |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 August 2023 | 3,752,057 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 July 2024 | 4,406,171 |
27. | DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 31 July 2024 and 31 July 2023: |
31.7.24 | 31.7.23 |
£ | £ |
R Gow |
Balance outstanding at start of year | 616,287 | (7,730 | ) |
Amounts advanced | 551,001 | 624,017 |
Amounts repaid | (654,938 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 512,350 | 616,287 |
The above loan is charged at HMRC's official rate of interest and is repayable on demand. |
28. | 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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the year, total dividends of £93,500 (2023: £0) were paid to the director. |
The group had a loan with Maxstone Residential Property Limited during the year, a company controlled by the director. At the start of the period the group was owed £74,794, and at the end of the period the group was owed £648,391. The loan is charged at a market rate of interest, and is repayable on demand. |
29. | AUDITOR LIABILITY LIMITATION AGREEMENT |
Auditors liability is limited to a maximum of twenty five times the fee relating to the audit engagement. |
The directors approved the agreement on 17 October 2024. |
30. | ULTIMATE CONTROLLING PARTY |
The controlling party is R Gow. |
ITUS Group Limited (Registered number: 08873624) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 July 2024 |
31. | INSURANCE BALANCES |
Insurance brokers normally act as agents in placing the insurable risks of their clients with insurers and, as such, generally are not liable for amounts arising from such transactions. Notwithstanding the legal relationships with clients and insurers, insurance brokers are entitled to retain investment income on any cashflows arising from insurance broking transactions. |
It is considered that insurance receivables in respect of premiums and claims do not represent an asset of the company and should therefore not be recognised until the cash is received. Accordingly, the balance sheet reflects only insurance trust cash, with the corresponding payable included as a liability. |
In certain circumstances, with approval at a senior level, the company may advance premiums to insurers and refunds or claims to clients prior to collection and these advances are also reflected as part of insurance broking receivables. Net insurance balances set out below therefore represent such advances made, together with fees and commissions earned on insurance transactions and either uncollected or not withdrawn from insurance trust bank accounts at the balance sheet date. |
2024 | 2023 |
£ | £ |
Insurance broking receivables | 1,276,507 | 1,627,968 |
Insurance trust accounts | 1,839,247 | 2,565,466 |
Insurance broking payable | (3,115,754 | ) | (4,193,434 | ) |
NIL | NIL |