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Registered number: 04826217
IFG PENSIONS LIMITED
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 DECEMBER 2024
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IFG PENSIONS LIMITED
REGISTERED NUMBER: 04826217
BALANCE SHEET
AS AT 31 DECEMBER 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Capital redemption reserve
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IFG PENSIONS LIMITED
REGISTERED NUMBER: 04826217
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 3 April 2025.
The notes on pages 4 to 16 form part of these financial statements.
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IFG PENSIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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Capital redemption reserve
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At 1 January 2024 (as previously stated)
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At 1 January 2024 (as restated)
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The notes on pages 4 to 16 form part of these financial statements.
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STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
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Capital redemption reserve
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At 1 June 2023 (as previously stated)
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Prior year adjustment - correction of error
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At 1 June 2023 (as restated)
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Profit for the period (as restated)
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At 31 December 2023 (as restated)
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The notes on pages 4 to 16 form part of these financial statements.
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IFG PENSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
IFG Pensions Limited is a private company limited by shares incorporated in England and Wales. The registered office is at Third Floor Cotton House, Old Hall Street, Liverpool, L3 9TP.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
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Exemption from preparing consolidated financial statements
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The Company, and the Group headed by it, qualify as small as set out in section 383 of the Companies Act 2006 and the parent and Group are considered eligible for the exemption to prepare consolidated accounts.
IFG Pensions Limited is a wholly owned subsidiary of IFG Financing Limited and the results of the Company are included in the consolidated financial statements of International Financial Group Limited.
The directors have reviewed the Company's financial forecast for a period at least twelve months from the approval date of these financial statements. Furthermore, the Company continues to receive financial support from its ultimate parent company, International Financial Group Limited.
On this basis, the directors consider the adoption of a going concern basis in the preparation of these financial statements being appropriate.
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IFG PENSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Revenue from one off services provided is recognised as soon as the service has been carried out.
Revenue for annual management fees is recognised by reference to the time period of the management period, with the income attributable to a period after the end of the accounting period deferred to the period to which it relates. The initial annual fee income in respect of certain services provided by other members of the Group is recognised in full at the time of processing the application to reflect the time, effort and cost incurred in accepting and setting up the application.
Revenue from one off services provided is recognised as soon as the service has been completed.
Revenue for annual management fees is recognised by reference to the time period of the management period, with the income attributable to a period after the end of the accounting period deferred to the period to which it relates. The initial annual fee income in respect of certain services provided by other members of the Group is recognised in full at the time of processing the application to reflect the time, effort and cost incurred in accepting and setting up the application.
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Operating leases: the Company as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Interest income is recognised in profit or loss using the effective interest method.
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IFG PENSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Software development is amortised over a useful life of 5 years.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
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Long-term leasehold property
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over term of the lease - 6 years
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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IFG PENSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Investments in subsidiaries are measured at cost less accumulated impairment.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.
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Provisions for liabilities
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Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
Increases in provisions are generally charged as an expense to profit or loss.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the
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IFG PENSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
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IFG PENSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
Investments in non-derivative instruments that are equity to the issuer are measured at cost less impairment for all other investments.
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividend payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements in accordance with generally accepted financial accounting principles requires the directors to make critical accounting estimates and judgments that affect the amounts reported in the financial statements and accompanying notes. The key estimate and assumption that have a significant risk of causing material adjustments to the carrying value of assets and liabilities within the next financial year are as follows:
Provision on potential liability in relation to the SIPP business
Management have been assessing the risk of potential claims to be made by the customers against the Company in relation to the SIPP schemes containing Non Standard Investments ("NSI"). An estimation of potential customer claims are calculated based on such assessment which is made based on the following criteria (also see Note 11 and Note 14):
- The time barring period in which a complain to be received from a SIPP member becomes less likely.
- Adequacy of due diligence performed at the time the NSI was taken on.
- The scheme member's financial knowledge level and level of advice received by the member.
- Whether the member signed a disclaimer agreement with the Company.
- Whether the scheme member a connected party to the invesment.
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The average monthly number of employees, including directors, during the year was 48 (2023 - 44).
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IFG PENSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Charge for the year on owned assets
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IFG PENSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Plant and machinery and office equipment
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Charge for the year on owned assets
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Shares in group undertakings
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IFG PENSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Amounts owed by group undertakings
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Prepayments and accrued income
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Creditors: Amounts falling due within one year
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Other taxation and social security
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Accruals and deferred income
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Creditors: Amounts falling due after more than one year
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Redeemable preference shares
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IFG PENSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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Charged to profit or loss
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During the year, a provision was made for the potential liability in relation to the Group's SIPP business being exposed to the industry wide claims over SIPP schemes containing non-standard investments.
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Shares classified as equity
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Allotted, called up and fully paid
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1,528,650 (2023 - 1,528,650) Ordinary shares shares of £1.00 each
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20 (2023 - 20) Ordinary A shares of £1.00 each
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20 (2023 - 20) Ordinary B shares of £1.00 each
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20 (2023 - 20) Ordinary C shares of £1.00 each
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20 (2023 - 20) Ordinary D shares of £1.00 each
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10 (2023 - 10) Ordinary E shares of £1.00 each
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10 (2023 - 10) Ordinary F shares of £1.00 each
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Shares classified as debt
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Allotted, called up and fully paid
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3,000,000 (2022 - 1,422,795) Redeemable preference shares shares of £1.00 each
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The redeemable preference shares has been issued to provide additional working capital and are treated as debt and therefore included in Creditors falling due after more than one year (see note 9). The redeemable preference shares carry a fixed cumulative preferential dividend of 5% per annum with non-voting rights and preferential rights on capital repayment upon wind up of the company.
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The Company issued 1,577,205 redeemable preference shares at a nominal value of £1 each in the year to provide additional working capital.
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IFG PENSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Management have identified that the Company has been receiving an interest income deposited in a client money bank account that was opened by the bank in previous years which the Company has been only been made aware of in the current year. This has led to the understatement of the following financial items in the comparative period:
1.Interest receivable: The interest receivable on client money balance for the prior period was understated by £139,597.
2.Retained earnings: The opening retained earnings for the prior accounting period were understated by £398,708.
3.Prepayments and accrued income: Accrued income for the prior accounting period was understated by £538,305.
Impact on Financial Statements:
Corrections have been made retrospectively in accordance with FRS 102, resulting in the following adjustments to the financial statements for the prior period:
1.Balance sheet:
- Reduction of deficit in the opening retained earnings by £398,708.
- Increase in accrued income by £538,305.
2.Statement of Comprehensive Income:
- Increase in interest income by £139,597.
The impact of prior year adjustments on the Company's reserves:
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Retained earnings previously stated
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Recognition of accrued interest for period ended 31 May 2023
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Recognition of accrued interest for period ended 31 December 2023
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In the prior year management identified that the Company's SIPP business may be exposed to the industry wide claims over SIPP schemes containing non-standard investments. This situation has been continuously reviewed by management in assessing the potential financial impact which may result from any successful claims brought against the Company by its clients or their agents. A provision of £1,070,458 has been made to meet the obligations that may rise from potential future claims (see Note 11). Up to the date of the financial statements, no claims have been upheld against the Company in relation to the described situation.
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IFG PENSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund.
The contributions payable by the Company in the year was £133,453 (7 months ended 31 December 2023: £70,878). An overpayment of contributions totalling £1,665 (2023: £9,482 payable) to the fund at the balance sheet date and are included in creditors.
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Commitments under operating leases
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At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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During the year, a fellow group undertaking charged the Company fees of £10,070 (7 months ended 31 December 2023: £44,646). At the balance sheet date, the Company was owed £7,957 by this related company (2023: £20,041).
During the year, a fellow group undertaking charged the Company fees of £55,543 (7 months ended 31 December 2023: £Nil). At the balance sheet date, the Company owed £66,651 to this related company (2023: £Nil).
The Company paid redeemable preference share dividends of £71,334 (7 months ended 31 December 2023: £41,514) to its parent company. The preference share dividends are represented by interest payable by virtue of the preference shares being classified as debt (see Note 12 for details). At the balance sheet date, the Company was owed £1,577,205 by this related company (2023: £Nil).
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The Company's immediate parent undertaking is IFG Financing Limited, a company registered in the Isle of Man. The Company's ultimate parent company is International Financial Group Limited which is the smallest and largest group in which the Company is a member that prepares the group consolidated financial statements. International Financial Group Limited is registered in the Isle of Man and its registered office is at International House, Cooil Road, Douglas, Isle of Man, IM2 2SP.
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IFG PENSIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The auditors' report on the financial statements for the year ended 31 December 2024 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
Material uncertainty related to going concern
In forming our opinion which is not qualified, we have considered the adequacy of the disclosures made in note 2 to the financial statements concerning the Company's trading ability to continue as a going concern. At the balance sheet date the Company's liabilities exceeded its total assets by £363,872 (2023: net assets of £1,019,372). This condition indicates the existence of a material uncertainty which may cast significant doubt about the Company's ability to continue as a going concern. Appropriate adjustment may be required in the financial statements if the company were unable to continue as a going concern.
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The audit report was signed on 3 April 2025 by Chris Cheung FCCA (Senior statutory auditor) on behalf of Sumer Auditco Limited.
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