Company registration number 06833207 (England and Wales)
ALAIB LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
PAGES FOR FILING WITH REGISTRAR
ALAIB LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 9
ALAIB LIMITED
BALANCE SHEET
- 1 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
3
2,403,000
2,883,600
Tangible assets
4
13,374
18,259
2,416,374
2,901,859
Current assets
Debtors
5
1,398,932
925,600
Cash at bank and in hand
136,361
73,601
1,535,293
999,201
Creditors: amounts falling due within one year
6
(1,627,281)
(1,428,739)
Net current liabilities
(91,988)
(429,538)
Total assets less current liabilities
2,324,386
2,472,321
Creditors: amounts falling due after more than one year
7
(179,286)
(515,255)
Provisions for liabilities
(3,344)
(4,565)
Net assets
2,141,756
1,952,501
Capital and reserves
Called up share capital
8
2
2
Profit and loss reserves
2,141,754
1,952,499
Total equity
2,141,756
1,952,501
ALAIB LIMITED
BALANCE SHEET (CONTINUED)
- 2 -
For the financial year ended 31 May 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
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.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 28 May 2025 and are signed on its behalf by:
Mr S J England
Director
Company registration number 06833207 (England and Wales)
ALAIB LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
- 3 -
1
Accounting policies
Company information
ALAIB Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 3, Park Farm Courtyard, Easthorpe, Malton, North Yorkshire, YO17 6QX.
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
The company acts as an agent in arranging insurance policies for clients. Commission income is recognised as revenue when the insurance policy is placed and confirmed by the insurer. The company does not recognise the gross premium received from customers as revenue, as it is acting as an agent and not as the principal in these transactions.
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:
Intellectual Property
10% 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:
Fixtures and fittings
20% Straight line
Computers
33% 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.
ALAIB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 4 -
1.5
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.
1.6
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.
1.7
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.
ALAIB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 5 -
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, 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.
1.8
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.
1.9
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.
1.10
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.
ALAIB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
1
Accounting policies
(Continued)
- 6 -
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
12
11
3
Intangible fixed assets
Intellectual Property
as restated
£
Cost
At 1 June 2023 and 31 May 2024
4,806,000
Amortisation and impairment
At 1 June 2023
1,922,400
Amortisation charged for the year
480,600
At 31 May 2024
2,403,000
Carrying amount
At 31 May 2024
2,403,000
At 31 May 2023
2,883,600
The intangible assets relate to intellectual property which was acquired by the company on 31 May 2019 at market value. The directors consider that the intellectual property will have a useful life of 10 years, therefore is being amortised over 10 years.
ALAIB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 7 -
4
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 June 2023
21,022
53,406
74,428
Additions
4,082
4,082
At 31 May 2024
21,022
57,488
78,510
Depreciation and impairment
At 1 June 2023
8,185
47,984
56,169
Depreciation charged in the year
4,205
4,762
8,967
At 31 May 2024
12,390
52,746
65,136
Carrying amount
At 31 May 2024
8,632
4,742
13,374
At 31 May 2023
12,837
5,422
18,259
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
270,442
160,155
Other debtors
1,128,490
765,445
1,398,932
925,600
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
79,793
68,449
Trade creditors
708,897
491,203
Taxation and social security
611,529
391,202
Other creditors
227,062
477,885
1,627,281
1,428,739
The bank loan £62,500 (2023: £62,500) and overdraft £17,293 (2023: £5,949) are secured by a fixed and floating charge over all the assets of the company.
There is an ongoing HMRC investigation into earlier period returns and s.455 liabilities, which may affect the balances owed as part of the taxation and social security balance.
ALAIB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 8 -
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
62,500
Other creditors
179,286
452,755
179,286
515,255
The bank loan £NIL (2023: £62,500) is secured by a fixed and floating charge over all the assets of the company.
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
9
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
288,203
2,935
10
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Loan
2.25
(163,678)
915,233
2,479
(392,038)
361,996
(163,678)
915,233
2,479
(392,038)
361,996
ALAIB LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024
- 9 -
11
Prior period adjustment
Revenue recognition
The comparative profit and loss account has been restated to update the turnover to be treated on an agency relationship basis, and reallocate costs between turnover and cost of sales. The impact of the restatement has been to decrease sales by £4,956,320 and to decrease cost of sales by £4,956,320, there is no net impact to the result for the year.
Balance sheet reallocation
The comparative balance sheet has been restated to correct the allocation of the bank overdraft of £5,949. This is now sitting in the bank and overdraft section, rather than trade creditors.
Intangible Asset
To the period ended 31 May 2023, no amortisation had been accounted for as the accounting policy had been based on fair value. This accounting policy has been reclassified to be based on historical cost, and therefore amortisation has been applied to better reflect the useful life of the intangible asset. The restatement reduces reserves by £1,922,400 in the prior period.
Reconciliation of changes in equity
1 June
31 May
2022
2023
£
£
Adjustments to prior year
Amortisation of Domain name
-
(1,922,400)
Equity as previously reported
3,608,600
3,874,901
Equity as adjusted
3,608,600
1,952,501
Analysis of the effect upon equity
Profit and loss reserves
-
(1,922,400)
Reconciliation of changes in profit/(loss) for the previous financial period
2023
£
Adjustments to prior year
Amortisation of Domain name
(480,600)
Profit as previously reported
446,301
Loss as adjusted
(34,299)