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COMPANY REGISTRATION NUMBER: 03976947
AMS Insurance Services Limited
Filleted Financial Statements
30 September 2024
AMS Insurance Services Limited
Statement of Financial Position
30 September 2024
2024
2023
Note
£
£
Fixed assets
Intangible assets
5
37,050
Tangible assets
6
3,247
23,893
--------
--------
40,297
23,893
Current assets
Debtors
7
673,252
910,106
Cash at bank and in hand
1,796,219
1,346,434
------------
------------
2,469,471
2,256,540
Creditors: amounts falling due within one year
9
1,258,824
989,184
------------
------------
Net current assets
1,210,647
1,267,356
------------
------------
Total assets less current liabilities
1,250,944
1,291,249
Provisions
4,017
------------
------------
Net assets
1,250,944
1,287,232
------------
------------
Capital and reserves
Called up share capital
100
100
Profit and loss account
1,250,844
1,287,132
------------
------------
Shareholders funds
1,250,944
1,287,232
------------
------------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
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 were approved by the board of directors and authorised for issue on 4 June 2025 , and are signed on behalf of the board by:
Mr P McKenna
Director
Company registration number: 03976947
AMS Insurance Services Limited
Notes to the Financial Statements
Year ended 30 September 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Heyford Park House, 52 Heyford Park , Camp Road, Upper Heyford, Bicester, Oxfordshire, OX25 5HD.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The accounts have been prepared on a going concern basis as, in the opinion of the Directors the company will continue in operation for the foreseeable future.
Revenue recognition
Turnover represents the retail premium, gross of commissions payable and includes Insurance Premium Tax in respect of insurance mediation services supplied by the Company in the UK. Value Added Tax has been excluded from turnover where applicable. Turnover is determined on the date the premiums are due. Claims are recognised on the date the claims are received. In the opinion of the Directors, the gross retail premiums prior to commission deduction represents a true reflection of the Company's performance. Provision has been made in the financial statements for commissions which could become repayable in the future in the event that policies on which commission have been made lapse.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery
-
0% - 100% Straight line
Equipment
-
10% - 25% Straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 9 (2023: 9 ).
5. Intangible assets
Development costs
£
Cost
Additions
18,450
Transfers
18,600
--------
At 30 September 2024
37,050
--------
Amortisation
At 1 October 2023 and 30 September 2024
--------
Carrying amount
At 30 September 2024
37,050
--------
At 30 September 2023
--------
The intangible asset relates to the computer software system used by the Company to generate policy sales. The asset was previously categorised as a tangible asset and have been reclassified as an intangible asset as a transfer in the accounts to 30 September 2024. The asset is shown at cost.
6. Tangible assets
Plant and machinery
Equipment
Total
£
£
£
Cost
At 1 October 2023
18,600
31,011
49,611
Additions
329
329
Transfers
( 18,600)
( 18,600)
--------
--------
--------
At 30 September 2024
31,340
31,340
--------
--------
--------
Depreciation
At 1 October 2023
25,718
25,718
Charge for the year
2,375
2,375
--------
--------
--------
At 30 September 2024
28,093
28,093
--------
--------
--------
Carrying amount
At 30 September 2024
3,247
3,247
--------
--------
--------
At 30 September 2023
18,600
5,293
23,893
--------
--------
--------
7. Debtors
2024
2023
£
£
Trade debtors
178,188
595,034
Amounts owed by group undertakings and undertakings in which the company has a participating interest
9,717
9,717
Other debtors
485,347
305,355
---------
---------
673,252
910,106
---------
---------
8. Cash at bank and in hand
Included within the bank balance is £588,521 held in lieu of claims to be paid to policyholders (2023: £488,210). The equivalent amount is held in the trade creditors at the year end.
9. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
658,545
748,910
Corporation tax
104,147
Social security and other taxes
12,303
7,932
Other creditors
587,976
128,195
------------
---------
1,258,824
989,184
------------
---------
Included within the trade creditors balance above is £588,521 held in lieu of claims to be paid to policyholders (2023: £488,210). The equivalent amount is held in the bank balances at the year end.
10. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
33,313
36,341
Later than 1 year and not later than 5 years
33,313
--------
--------
33,313
69,654
--------
--------
11. Summary audit opinion
The auditor's report dated 5 June 2025 was unqualified , however, the auditor drew attention to the following by way of emphasis.
We draw attention to Note 14 in the financial statements, which describes the subsequent event, being the triggering of a contractual agreement that is resulting in significant cash payments being made from the company.
The senior statutory auditor was Jordan Cain , for and on behalf of Xeinadin Audit Limited .
12. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2024
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
Mr P McKenna
7,413
7,413
----
-------
-------
2023
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
Mr P McKenna
----
----
----
13. Related party transactions
The company was under the control of Mr P McKenna throughout the current and previous year. Mr McKenna is the managing director and majority shareholder. Loans with the director are disclosed within note 10 to the accounts. All loans are interest free and repayable on demand. All transactions with related parties have been concluded under normal market conditions.
14. Subsequent events
A contractual event has been triggered due to a surge in both the volume and value of GAP Insurance claims associated with an insurer that was not authorised by regulatory authorities to continue underwriting insurance products in the UK. As a result, the insurer was unable to adjust its rates accordingly. To address this, the company has entered into an agreement with the insurer to facilitate payments totalling £870,000, which will be made in instalments and completed by August 2025. These payments will be covered by the company's reserves.
Additionally, under the terms of the agreement, an extra £225,000 will become payable over a 36-month period from August 2025, with these payments also being funded from reserves.
Following a comprehensive review of GAP insurance products, the Financial Conduct Authority (FCA) has lifted the restrictions that were previously in place. This has reopened the insurer's GAP distribution channels, allowing the company to actively convert its sales pipeline. Several new partners have signed contracts, which is anticipated to generate approximately £8,000,000 in additional annual revenue