Company registration number 09951899 (England and Wales)
I QUOTE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 JANUARY 2024
I QUOTE LIMITED
COMPANY INFORMATION
Director
Mr C A Cornick
Company number
09951899
Registered office
Cardinal House
St Mary's Parsonage
Manchester
M3 2LY
Auditor
AMS Accountants Corporate Ltd
Floor 2
9 Portland Street
Manchester
M1 3BE
I QUOTE LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
I QUOTE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 JANUARY 2024
- 1 -

The director presents the strategic report for the year ended 29 January 2024.

Review of the business

The principal activity of I Quote Limited continues to focus on delivering comprehensive legal support services.

I Quote Limited continues to focus on delivering comprehensive legal support services, with a strong emphasis on innovation, operational efficiency, and client-centric solutions. During the current financial year, the company successfully navigated an expanding legal services sector, ensuring successful growth and a strong financial performance. Management remains committed to advancing technological innovation to support business growth and enhance client outcomes.

 

Core Services and Achievements

I Quote Limited has established itself as a key partner for law firms, providing them with cutting-edge technology and robust support services. Through our continued efforts, we have facilitated the deployment of £198 million in disbursement funding to law firms via third-party litigation funders. This has allowed these firms to secure an exceptionally high win rate across a diverse portfolio of consumer and commercial claims within the UK market.

 

In addition to supporting law firms, I Quote has diversified its service offerings and is now also assisting various businesses with a wide range of operational services. Our shared service proposition includes support in technological systems and process advancement, marketing across traditional and digital channels for various case types, operations management, financial modelling, auditing, compliance, and regulatory guidance. Furthermore, our customer journey and management solutions, which include offshore contact centres, have expanded the breadth of services available to our clients.

 

 

I Quote Limited stands out from other shared service providers through its heavy investment in technology and artificial intelligence. Our commitment to innovation is evident in our advanced AI-driven solutions that enhance operational efficiency and client outcomes. Over the past year, we have developed major improvements around AI, including the use of open banking, RPO, and OCR technology to generate reports and quantify losses. These advancements allow us to deliver reports well before the current SLA, enabling our clients to identify potential further losses and upsell clients to better or additional services. With further advancement I Quote have now secured exclusive services allowing them to conduct affordability reporting working with industry leading credit agency to deliver further value to its clients. The advancement of this report will allow its clients to generate further cases leading to further growth within their sectors.

 

Technology continues to be a major factor in the growth of I Quote, with additional developers contracted to improve our current offerings and generate further revenue through additional products and services. We have developed a one-of-a-kind reporting system, and the use of open banking has made I Quote one of the leaders in legal disbursements and client/case management.

 

Our unique AI-driven litigation funding platform is another key differentiator. This platform finances portfolios of consumer litigation claims and invests in small-to-medium commercial litigation cases, providing a comprehensive 360-degree service model for law firms and businesses alike. Additionally, our one-of-a-kind reporting system and the use of open banking have positioned I Quote as the industry leader in legal disbursements and client/case management.

 

By leveraging cutting-edge technology and AI, I Quote Limited not only meets but exceeds the expectations of our clients, ensuring a high win rate across a diverse portfolio of consumer and commercial claims within the UK market.

 

Our diversified service offerings, solid financial performance, and strategic focus on expanding our capabilities position us well for continued growth and market leadership in the years to come

 

 

I QUOTE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
- 2 -

 

Work in Progress (WIP) and Growth Outlook

A key aspect of I Quote’s success has been our focus on helping legal firms market and manage new cases. Our support with operational expense funding and case marketing has proven highly effective. As of December 2024, the company’s work in progress (WIP) for cases generated for legal firms stands at £686 million, reflecting the trust and demand for our services. We are confident that this figure will grow, with forecasts predicting WIP on cases delivered by our customers to reach £720 million by 2025 and £800 million by 2026 in contingent fees. In line with financial reporting standards, no revenue is to be recognized on contingent cases until the case has been settled, but the levels of WIP demonstrate that the future income pipeline for the company is strong.

 

Strategic Expansion Plans

Looking ahead, I Quote plans to expand its service offerings by exploring opportunities to raise debt capital in order to develop a bespoke litigation funding solution tailored to the needs of UK-based law firms. Central to this expansion is the development of an AI-driven litigation funding platform that will finance portfolios of consumer litigation claims and invest in small-to-medium commercial litigation cases.

 

The disbursement funding model has proven to be a vital tool for many law firms, enabling them to manage disbursement payments effectively. By adding this service to our portfolio, I Quote aims to provide a comprehensive 360-degree service model, positioning us as a one-stop shop for law firms and businesses alike, meeting all their litigation, operational, and financial needs.

 

Conclusion

I Quote Limited remains firmly committed to its role as a market leader in legal support services, with a strong track record of innovation and client success. Our diversified service offerings, solid financial performance, and strategic focus on expanding our capabilities position us well for continued growth and market leadership in the years to come

 

Management uses a number of financial performance measures to assess the performance of the company.

2024     2023

 

Revenue

£20.34m

£20.19m

Profit before tax

£2.8m

£0.97m

Net Margin

10.5%

3.64%

 

 

The company’s current areas of focus are to grow I Quote Limited via organic means and utilise the technology that has been developed to assist with automation and artificial intelligence products within the legal sector.

I QUOTE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
- 3 -
Principal risks and uncertainties

The company faces a number of business risks and uncertainties due to the fast pace of technology change and new competitors entering the industry. The directors are looking carefully at both existing and new markets. In particular, the following sets out the key risks that have been identified with the company’s approach to mitigating those risks.

Potential risks

Operational and IT Risk

The company places significant reliance on its IT systems, any loss of these facilities or provisions would have a serious impact on the Company's operations. Due to the nature of this risk, no assurances can be given that all such risks will be adequately covered by its existing systems.

To mitigate the risk, the company monitors the resilience of its information systems and other facilities on an ongoing basis, working with external partners to support the delivery of its internal and customer facing IT provision. The company has in place a business continuity plan and an IT disaster recovery plan that are reviewed as appropriate. All IT systems are backed up to cloud-based servers.

Customer service & risk

The company provides professional services, in the main to the legal sector. Like all service providers, it is susceptible to potential liability from breach of contract, and other claims by customers and suppliers. The Directors and Officers insurance held by the company may not be adequate to indemnify the company for all liability that may be incurred (or loss which may be suffered). Any liability of legal defence expenses that are not covered by insurance or are in excess of the insurance coverage could have a materially adverse effect on the company's business and financial condition.

To mitigate the risk, the company is advised by market leading insurance brokers and the Directors believe that it holds comprehensive professional liability insurance. The company works diligently to ensure employees provide excellent service to all of its customers, underpinned by quality control processes and bespoke training programmes.

Organic growth risk

The company's strategy is for organic growth. Organic growth may not always realise the benefits expected at the time of initiation. A failure to grow as timely as expected may impact company's profitability. The availability of viable opportunities for growth may decrease.

To mitigate the risk, the company will consider complimentary and earnings enhancing opportunities as part of its overall growth strategy. Organic growth may not always realise the benefits at the time of initiation. Roll out plans are formulated as part of the organic growth process and executed in anticipation of and following roll out as appropriate. The Directors considers the recent growth within the legal service sector will continue and that as a result there will be continuing availability of opportunities to grow the company.

On behalf of the board

Mr C A Cornick
Director
15 May 2025
I QUOTE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 29 JANUARY 2024
- 4 -

The director presents his annual report and financial statements for the year ended 29 January 2024.

Principal activities

The principal activity of the company continued to be that of business support services.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £150,000. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr C A Cornick
Auditor

The auditor, AMS Accountants Corporate Ltd, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of director's responsibilities

The director is responsible for preparing the annual report 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 he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the director is required to:

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Matters addreessed within the strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the disclosure of principal risks and uncertainties.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

I QUOTE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
- 5 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr C A Cornick
Director
15 May 2025
I QUOTE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF I QUOTE LIMITED
- 6 -
Opinion

We have audited the financial statements of I Quote Limited (the 'company') for the year ended 29 January 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company 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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:

I QUOTE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF I QUOTE LIMITED (CONTINUED)
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of director

As explained more fully in the director's responsibilities statement, 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 is 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 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 company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 an auditor's report 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

I QUOTE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF I QUOTE LIMITED (CONTINUED)
- 8 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report 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 member, for our audit work, for this report, or for the opinions we have formed.

Mr David Clegg BFP FCA (Senior Statutory Auditor)
For and on behalf of AMS Accountants Corporate Ltd, Statutory Auditor
Chartered Accountants
Floor 2
9 Portland Street
Manchester
M1 3BE
15 May 2025
I QUOTE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 JANUARY 2024
- 9 -
Year
Period
ended
ended
29 January
29 January
2024
2023
Notes
£
£
Turnover
3
20,340,688
20,197,110
Cost of sales
(11,797,690)
(12,915,121)
Gross profit
8,542,998
7,281,989
Administrative expenses
(3,823,569)
(6,706,933)
Other operating income
104,807
425,629
Operating profit
4
4,824,236
1,000,685
Interest payable and similar expenses
6
(22,531)
(4,605)
Amounts written off investments
7
(1,904,437)
(25,000)
Profit before taxation
2,897,268
971,080
Tax on profit
8
(760,300)
(235,689)
Profit for the financial year
2,136,968
735,391

The profit and loss account has been prepared on the basis that all operations are continuing operations.

I QUOTE LIMITED
BALANCE SHEET
AS AT
29 JANUARY 2024
29 January 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
1,976,365
2,102,796
Tangible assets
11
69,049
34,554
2,045,414
2,137,350
Current assets
Debtors
13
29,357,475
17,412,578
Cash at bank and in hand
538,160
3,384,478
29,895,635
20,797,056
Creditors: amounts falling due within one year
14
(29,131,227)
(22,115,638)
Net current assets/(liabilities)
764,408
(1,318,582)
Total assets less current liabilities
2,809,822
818,768
Creditors: amounts falling due after more than one year
15
(13,335)
(23,333)
Provisions for liabilities
Deferred tax liability
17
17,262
3,178
(17,262)
(3,178)
Net assets
2,779,225
792,257
Capital and reserves
Called up share capital
19
2
2
Profit and loss reserves
2,779,223
792,255
Total equity
2,779,225
792,257

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 15 May 2025
Mr C A Cornick
Director
Company registration number 09951899 (England and Wales)
I QUOTE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 JANUARY 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2022
2
56,864
56,866
Period ended 29 January 2023:
Profit and total comprehensive income
-
735,391
735,391
Balance at 29 January 2023
2
792,255
792,257
Period ended 29 January 2024:
Profit and total comprehensive income
-
2,136,968
2,136,968
Dividends
9
-
(150,000)
(150,000)
Balance at 29 January 2024
2
2,779,223
2,779,225
I QUOTE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 JANUARY 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
23
(751,837)
3,636,462
Interest paid
(22,531)
(4,605)
Income taxes (paid)/refunded
(82,722)
3,636
Net cash (outflow)/inflow from operating activities
(857,090)
3,635,493
Investing activities
Purchase of intangible assets
(129,556)
(557,000)
Purchase of tangible fixed assets
(286,651)
(33,013)
Proceeds from disposal of tangible fixed assets
275,844
-
0
Repayment of loans
(1,688,867)
(240,570)
Interest received
-
0
2,400
Net cash used in investing activities
(1,829,230)
(828,183)
Financing activities
Repayment of borrowings
(9,998)
(10,000)
Dividends paid
(150,000)
-
0
Net cash used in financing activities
(159,998)
(10,000)
Net (decrease)/increase in cash and cash equivalents
(2,846,318)
2,797,310
Cash and cash equivalents at beginning of year
3,384,478
587,168
Cash and cash equivalents at end of year
538,160
3,384,478
I QUOTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 JANUARY 2024
- 13 -
1
Accounting policies
Company information

I Quote Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cardinal House, St Mary's Parsonage, Manchester, M3 2LY.

1.1
Reporting period

The accounting reference date for the current year is 29 January 2024, however, the accounts were prepared for the period 1 February 2023 to 31 January 2024 as such the financial information disclosed represents a 365 day period.

 

As such, despite the accounting reference date change the financial information is comparable.

1.2
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.

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.

1.3
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

 

The director has prepared detailed business plans forecasts up to the period ended 31st January 2028.

 

These forecasts show that the company continues to generate cash and profits and as such the company would have sufficient headroom to continue to trade for the foreseeable future (12 months from the date of signing of the balance sheet).

 

In the event that trading conditions deteriorate, the company retains the support of its shareholder and the ability to source external financing to support the company as appropriate.

 

On this basis the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates. Services are recognised at the point they are delivered.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

1.5
Research and development expenditure

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

I QUOTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
1
Accounting policies
(Continued)
- 14 -
1.6
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:

Software
10% straight line basis
1.7
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:

Fixtures and fittings
10% Reducing balance
Motor vehicles
25% Reducing balance

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.

1.8
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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

I QUOTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
1
Accounting policies
(Continued)
- 15 -
1.9
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.

1.10
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.

Other financial assets

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.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

I QUOTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
1
Accounting policies
(Continued)
- 16 -
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
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.

1.12
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.

I QUOTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
1
Accounting policies
(Continued)
- 17 -
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.

1.13
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.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The director does not consider that there are any critical judgements or sources of estimation uncertainty requiring disclosure.

I QUOTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
- 18 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Legal support services
20,340,688
20,197,110
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
20,340,688
20,197,110
2024
2023
£
£
Other revenue
Management fees receivable
104,807
425,629
4
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Research and development costs
705,343
612,729
Fees payable to the company's auditor for the audit of the company's financial statements
20,750
24,750
Depreciation of owned tangible fixed assets
39,054
6,753
Profit on disposal of tangible fixed assets
(62,742)
-
Amortisation of intangible assets
255,987
255,887
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Employees
12
11
Director
1
1
Total
13
12
I QUOTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
391,624
449,016
Social security costs
41,168
39,125
Pension costs
2,596
8,021
435,388
496,162
6
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
720
969
Other interest on financial liabilities
21,811
300
22,531
1,269
Other finance costs:
Other interest
-
0
3,336
22,531
4,605
7
Amounts written off investments
2024
2023
£
£
Amounts written off current loans
(1,904,437)
(25,000)

The business provides loans to other entities, during the year some of these loans were deemed to be irrecoverable and had been written down to their recoverable amount.

8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
746,216
233,958
Deferred tax
Origination and reversal of timing differences
14,084
1,731
Total tax charge
760,300
235,689
I QUOTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
8
Taxation
(Continued)
- 20 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
2,897,268
971,080
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
724,317
184,505
Tax effect of expenses that are not deductible in determining taxable profit
7,175
5,979
Tax effect of utilisation of tax losses not previously recognised
-
0
(2,280)
Effect of change in corporation tax rate
(30,117)
-
0
Permanent capital allowances in excess of depreciation
(5,071)
(1,134)
Amortisation on assets not qualifying for tax allowances
63,996
48,619
Taxation charge for the period
760,300
235,689

The Finance Bill 2021 included provisions to increase the main rate of corporation tax up to 25% from 1 April 2023. The tax rate used for corporation tax and deferred tax for the year ended 31 January 2024 is therefore 25% (2023 - 19%).

9
Dividends
2024
2023
£
£
Final paid
150,000
-
0
I QUOTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
- 21 -
10
Intangible fixed assets
Software
£
Cost
At 30 January 2023
2,558,870
Additions
129,556
At 29 January 2024
2,688,426
Amortisation and impairment
At 30 January 2023
456,074
Amortisation charged for the year
255,987
At 29 January 2024
712,061
Carrying amount
At 29 January 2024
1,976,365
At 29 January 2023
2,102,796
11
Tangible fixed assets
Fixtures and fittings
Motor vehicles
Total
£
£
£
Cost
At 30 January 2023
16,346
27,500
43,846
Additions
54,766
231,885
286,651
Disposals
-
0
(259,385)
(259,385)
At 29 January 2024
71,112
-
0
71,112
Depreciation and impairment
At 30 January 2023
1,162
8,130
9,292
Depreciation charged in the year
901
38,153
39,054
Eliminated in respect of disposals
-
0
(46,283)
(46,283)
At 29 January 2024
2,063
-
0
2,063
Carrying amount
At 29 January 2024
69,049
-
0
69,049
At 29 January 2023
15,184
19,370
34,554
I QUOTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
- 22 -
12
Financial instruments
2024
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
14,431,321
8,052,590
Carrying amount of financial liabilities
Measured at amortised cost
26,387,325
20,529,153
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
28,109,475
16,242,092
Prepayments and accrued income
1,248,000
1,170,486
29,357,475
17,412,578

Included within other debtors are loans totalling £27,859,475 (2023 - £16,025,228)

 

These loans are repayable on demand, unsecured and are provided on an interest free basis.

14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other borrowings
16
10,000
10,000
Trade creditors
22,346
50,370
Corporation tax
1,011,053
347,559
Other taxation and social security
1,746,184
1,262,259
Other creditors
26,288,430
20,444,250
Accruals and deferred income
53,214
1,200
29,131,227
22,115,638

Included within other creditors are loans totalling £25,779,770 (2023 - £20,444,250)

 

These loans are repayable on demand, unsecured and provided on an interest free basis.

15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Other borrowings
16
13,335
23,333
I QUOTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
- 23 -
16
Loans and overdrafts
2024
2023
£
£
Other loans
23,335
33,333
Payable within one year
10,000
10,000
Payable after one year
13,335
23,333

The other loan represents a CBIL loan with Lloyds Bank PLC which will be repaid in full by May 2026.

17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
17,262
3,178
2024
Movements in the year:
£
Liability at 30 January 2023
3,178
Charge to profit or loss
14,084
Liability at 29 January 2024
17,262

The deferred tax liability set out above is expected to reverse in future periods and relates to accelerated capital allowances claimed.

18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
2,596
8,021

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1
1
2
2
I QUOTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
19
Share capital
(Continued)
- 24 -
20
Related party transactions
Transactions with related parties

At the balance sheet date the company owed the following amounts to companies related by virtue of common directorship with I Quote Limited :

 

Tabley Farm Estates Limited      - £15,716 (2023 - £15,716)

Elizabeth Rose Capital Limited     - £30,589 (2023 - £40,709)

 

The amounts above are included within other creditors and are unsecured, interest free and repayable on demand

At the balance sheet date the company was owed the following amounts by companies related by virtue of common directorship with I Quote Limited :

 

Middlehey Court Limited         - £1,721,725 (2023 - £1,721,725)

Consulate Bramhall Limited      - £369,959 (2023 - £164,184)

Belvedere Property Holdings Limited - £65,000 (2023 - £0)

 

The amounts above are included within other debtors and are unsecured, interest free and repayable on demand.

 

21
Directors' transactions

Dividends totalling £150,000 (2023 - £0) were paid in the year in respect of shares held by the company's director.

Advances or credits have been granted by the company to its directors as follows:

Description
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Mr C A Cornick -
-
215,570
(724,228)
(508,658)
215,570
(724,228)
(508,658)

During the year the director repaid previous advances provided by the company.

 

As at the balance sheet, the entity owed the director an amount of £508,658.

 

No interest is charged on this loan from the director to the company, and there is no fixed date for repayment.

22
Controlling party

By virtue of ownership of entire issued share capital of the company, the director is the controlling party.

I QUOTE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 JANUARY 2024
- 25 -
23
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit after taxation
2,136,968
735,391
Adjustments for:
Taxation charged
760,300
235,689
Finance costs
22,531
4,605
Gain on disposal of tangible fixed assets
(62,742)
-
Amortisation and impairment of intangible assets
255,987
255,887
Depreciation and impairment of tangible fixed assets
39,054
6,753
Other gains and losses
1,904,437
25,000
Movements in working capital:
Increase in debtors
(12,160,467)
(11,842,114)
Increase in creditors
6,352,095
14,215,251
Cash (absorbed by)/generated from operations
(751,837)
3,636,462
24
Analysis of changes in net funds
30 January 2023
Cash flows
29 January 2024
£
£
£
Cash at bank and in hand
3,384,478
(2,846,318)
538,160
Borrowings excluding overdrafts
(33,333)
9,998
(23,335)
3,351,145
(2,836,320)
514,825
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