Company registration number 07428213 (England and Wales)
INTOUCH FINANCIAL ADVICE LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
PAGES FOR FILING WITH REGISTRAR
INTOUCH FINANCIAL ADVICE LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
INTOUCH FINANCIAL ADVICE LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2024
30 November 2024
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
4
32,828
46,515
Investments
5
2,761
2,761
35,589
49,276
Current assets
Debtors
6
251,530
192,774
Cash at bank and in hand
141,472
115,527
393,002
308,301
Creditors: amounts falling due within one year
7
(154,531)
(121,576)
Net current assets
238,471
186,725
Total assets less current liabilities
274,060
236,001
Creditors: amounts falling due after more than one year
8
(95,451)
(52,371)
Provisions for liabilities
(4,903)
(7,570)
Net assets
173,706
176,060
Capital and reserves
Called up share capital
9
113
113
Share premium account
6,605
6,605
Capital redemption reserve
100
100
Profit and loss reserves
166,888
169,242
Total equity
173,706
176,060
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 November 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
INTOUCH FINANCIAL ADVICE LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 NOVEMBER 2024
30 November 2024
- 2 -
The financial statements were approved by the board of directors and authorised for issue on
and are signed on its behalf by:
P J Cooper
Director
Company registration number 07428213 (England and Wales)
INTOUCH FINANCIAL ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 3 -
1
Accounting policies
Company information
Intouch Financial Advice Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6 Blue Sky Way, Monkton Business Park South, Hebburn, Tyne & Wear, NE31 2EQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised at the fair value of commissions received for the services provided in the normal course of business. Revenue is recognised when the entitlement to commissions arises. Clawbacks can occur in respect of cancelled policies and these clawbacks are recognised as an expense at the time they are taken from the company as a deduction from income. The turnover in the accounts is therefore before deduction for clawback and the expense is recognised as a cost of sale.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website development costs
3 years straight line
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Improvements to property
15% straight line
Equipment, fixtures and fittings
15% reducing balance
Computer equipment
25% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
INTOUCH FINANCIAL ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 4 -
1.5
Fixed asset investments
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.
INTOUCH FINANCIAL ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
1
Accounting policies
(Continued)
- 5 -
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
INTOUCH FINANCIAL ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 6 -
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
19
20
3
Intangible fixed assets
Website development costs
£
Cost
At 1 December 2023 and 30 November 2024
13,476
Amortisation and impairment
At 1 December 2023 and 30 November 2024
13,476
Carrying amount
At 30 November 2024
At 30 November 2023
4
Tangible fixed assets
Improvements to property
Equipment, fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 December 2023
50,450
12,600
49,377
112,427
Additions
2,400
2,400
Disposals
(1,036)
(1,036)
Transfers
(24)
24
At 30 November 2024
50,450
12,576
50,765
113,791
Depreciation and impairment
At 1 December 2023
24,653
6,125
35,134
65,912
Depreciation charged in the year
5,528
960
9,310
15,798
Eliminated in respect of disposals
(747)
(747)
At 30 November 2024
30,181
7,085
43,697
80,963
Carrying amount
At 30 November 2024
20,269
5,491
7,068
32,828
At 30 November 2023
25,797
6,475
14,243
46,515
INTOUCH FINANCIAL ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 7 -
5
Fixed asset investments
2024
2023
£
£
Other investments other than loans
2,761
2,761
The fair value of the investment has been arrived at on the basis of an assessment by the directors.
6
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
10,882
4,776
Corporation tax recoverable
58,350
43,163
Other debtors
182,298
144,835
251,530
192,774
7
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
35,015
21,772
Trade creditors
1,165
2,142
Corporation tax
69,643
61,244
Other taxation and social security
15,836
13,491
Other creditors
32,872
22,927
154,531
121,576
Included in bank loans due within one year is an amount of £21,351 secured by a personal guarantee by a director of the company.
8
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans
95,451
48,799
Other creditors
3,572
95,451
52,371
Included in bank loans due after more than one year is an amount of £61,667 secured by a personal guarantee by a director of the company.
INTOUCH FINANCIAL ADVICE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2024
- 8 -
9
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary "A" shares of £1 each
80
80
80
80
Ordinary "B" shares of £1 each
20
20
20
20
Ordinary "C" shares of £1 each
12
12
12
12
Ordinary "Y" shares of £1 each
1
1
1
1
113
113
113
113
10
Contingent liabilities
The company receives commissions from protection providers for policies or plans sold to its customers. Where policies lapse, are cancelled or are replaced during the term of the product, a proportion of the commissions received initially must be repaid to the protection provider as a claw back. The level of the clawback can vary considerably year on year as this is dependent on level and timing of future cancellations to existing policies. As such, there remains some uncertainty about the level of clawback expected in the coming year.
Whilst the directors are not able to provide a reliable estimate, they do constantly monitor the situation along with consideration to current market and trading conditions and at the time of signing these accounts anticipate clawbacks in to be in the region of £60,000 - £80,000 per annum in the coming years.
The directors aim to maintain a minimum bank level as a cash reserve within the business. The level set will be at the discretion of the directors and may change depending on the outlook, however the current intention is to build up to and maintain cash reserves of £150,000.
11
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
77,353
87,390
12
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors loans
-
138,050
48,500
(6,050)
180,500
138,050
48,500
(6,050)
180,500
There are no fixed terms as to repayment and no interest accrued thereon.