Registration number:
Lifestyle Policy Limited
for the Year Ended 30 September 2024
Lifestyle Policy Limited
Contents
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account and Statement of Retained Earnings |
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Balance Sheet |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Lifestyle Policy Limited
Strategic Report for the Year Ended 30 September 2024
The directors present their strategic report for the year ended 30 September 2024.
Principal activity
The principal activity of the company is that of an insurance intermediary. There have not been any significant changes in the company’s principal activities in the year under review. The directors are not aware, at the date of this report, of any likely major changes in the company’s activities in the next year. The company is authorised and regulated by Financial Conduct Authority.
Fair review of the business
Lifestyle Policy Limited’s vision over the next five years is to increase the value of the business by growing its insurance distribution activities and making efficiencies within its business. Lifestyle Policy Limited’s key strategic objective focuses on delivering the best policyholder outcomes, expanding commission income by growing the business in existing lines, providing a positive working environment and culture for its staff and ensuring long-term sustainable profitability.
Results and performance
The main financial key performance indicators (“KPI’s”) for the company are operating profit and turnover.
Turnover for the year increased to £10.2m compared to £9.0m in 2023. Operating Profit (before amortisation and interest for the year ended 30 September 2024 decreased to £1.1m compared to £3.4m in 2023 as the company invested in marketing and distribution activities to drive long-term business growth.
As at 30 September 2024, the net assets of the company were £3.9m.
The company also uses a number of non-financial KPI’s to understand, monitor and develop the performance of the business. These include new customer acquisition, retention of existing customers, customer feedback, and employee wellbeing and development.
Going Concern
As set out in the Directors’ Responsibilities statement, the directors are required to prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The current economic conditions present increased risks for all businesses. In response to such uncertain conditions, the directors have carefully considered these risks and the extent to which they might affect the preparation of the financial statements on a going concern basis. In particular, the directors of the company have considered in detail the company’s forecast performance, including its profitability and liquidity. On this basis, the directors have a reasonable expectation that the company will maintain adequate solvency to continue in operational existence for the foreseeable future. Accordingly, the directors of the company have adopted the going concern basis in preparing these financial statements.
Principal risks and uncertainties
The risk factors set out below reflect material risks associated with the business and industry in which we operate generally and that could adversely affect the company’s business, financial condition and results of operations.
Market and Business Risks
As with all insurance businesses, the company is exposed to the insurance market cycle and general competitive pressures in the sector.
The company manages this risk by focusing on customer needs and adapting the product offering to maintain leading coverage and pricing. Procedures are constantly updated to make application, renewal and payment processing as quick and streamlined as possible. Achieving the best customer outcomes remains a key aspect of the business strategy.
Lifestyle Policy Limited
Strategic Report for the Year Ended 30 September 2024
Legal and Regulatory Risks
The company’s core business activities are subject to extensive legal and regulatory oversight, including, but not limited to, the Companies Act and the rules and regulations set out by the Financial Conduct Authority. Failure to comply with applicable legal and regulatory requirements could adversely impact the financial position and reputation of the company. This risk is managed through continuous monitoring of regulatory requirements that impact the company to ensure on-going compliance.
Liquidity and Credit Risk
Liquidity requirements are consistently monitored to ensure that the company can meet all obligations as they fall due. The company is not exposed to material credit risk but this is monitored through management information such as the credit ratings of its banking counterparty.
Operational Risk
The company is exposed to operational risk resulting from inadequate or failed internal processes, people and systems, and from external events. It has a system of internal controls to manage these operational risks, and to reduce the potential exposure, but accepts that a residual risk of loss remains.
Operational risk events are tracked and reviewed, and day-to day-processes are closely managed by the directors which will identify shortcomings in operational risks.
Future Developments
In the coming year we aim to achieve strategic growth targets for commission income, whilst managing costs through operational efficiencies. We will continue to invest in the development of our staff and IT infrastructure to ensure we continue to offer high-quality, innovative and consumer-centric general insurance products.
In addition, the company will focus on several key risks identified below:
Macro-economic Environment
Considerable focus is currently being given to the macro-economic environment, including factors such as the impact of inflation, interest rate uncertainty and geo-political instability and its effect on commodity prices and the potential for recession in the UK. These factors continue to be monitored very closely across the business, especially in terms of the impact on premium pricing and the upward pressure on staff and other operational expenditure.
Operational and Cyber Resilience
Business disruption, both internally or with a key outsourced partner, cyber security, management of technical debt and business continuity management remain areas of key focus for the company.
Regulatory Changes
Volume and complexity of regulatory change continues to be monitored through the enhanced horizon-scanning process, with the introduction of a formal and structured gap analysis, where required, to assess the impact of change on the company. The key focus areas presently are to ensure on-going compliance with Consumer Duty requirements and the implementation of changes in the Appointed Representatives regime.
Emerging Technology and Artificial Intelligence
The risk that the company does not recognise or take advantage of emerging technologies, including the use of artificial intelligence, is a key focus area for the business. The company has established a working group to coordinate the company's response to emerging technology and AI to understand how it may be used to enhance processes and drive positive customer outcomes as well as mitigating any potential risks in terms of managing customer data.
Operational Risk
The challenge of recruiting and retaining staff remains a key risk to the business. the Company continues to develop its staff benefits, training and development programmes as well as monitor it succession planning. In addition, meeting evolving customer needs and improving the customer journey is a key focus for the Company. This is supported by the automation, digitalisation and simplification strategic plan.
Lifestyle Policy Limited
Strategic Report for the Year Ended 30 September 2024
Approved by the
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Lifestyle Policy Limited
Directors' Report for the Year Ended 30 September 2024
The directors present their report and the financial statements for the year ended 30 September 2024.
Directors of the company
The directors who held office during the year were as follows:
Dividends
The directors do not recommend payment of a dividend.
Financial instruments
Objectives and policies
Financial risks are managed through strict internal management controls and accurate and timely management information.
Price risk, credit risk, liquidity risk and cash flow risk
The business' principle financial instruments comprise bank balances, trade debtors, and trade creditors. The main purpose of these instruments is to finance the business' operations.
Its exposure to price risk, credit risk, liquidity risk and cash flow risk is minimised by retaining sufficient liquid funds to enable it to meet its day to day requirements. Liquidity requirements are consistently monitored to ensure that the company can meet all obligations as they fall due. The company is not exposed to material credit risk, but this is monitored through management information such as the credit ratings of its banking counterparty.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Information included in the Strategic Report
All items required under Sch. 7 of Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 to be disclosed in the directors' report are set out in the strategic report in accordance with s.414C(11) CA 2006.
Approved by the
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Lifestyle Policy Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are 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 directors are required to:
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select suitable accounting policies and apply them consistently; |
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make judgements and accounting estimates that are reasonable and prudent; |
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state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
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prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are 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. They are 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.
Lifestyle Policy Limited
Independent Auditor's Report to the Members of Lifestyle Policy Limited
Opinion
We have audited the financial statements of Lifestyle Policy Limited (the 'company') for the year ended 30 September 2024, which comprise the Profit and Loss Account and Statement of Retained Earnings, Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of 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:
• | give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 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 original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
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the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Lifestyle Policy Limited
Independent Auditor's Report to the Members of Lifestyle Policy Limited
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 5], the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
In planning and designing our audit tests, we identify and assess the risks of material misstatement within the financial statements, whether due to fraud or error. Our assessment of these risks includes consideration of the nature of the industry and sector, the control environment and the business performance along with the results of our enquiries of management, about their own identification and assessment of the risks of irregularities. We are also required to perform specific procedures to respond to the risk of management override.
Following this assessment we considered the opportunities and incentives that may exist within the company for fraud and identified the greatest potential for fraud in evaluating the sales completeness and cut off.
We also obtained an understanding of the legal and regulatory frameworks that the company operates in, through discussions with directors and other management, and from our commercial knowledge and experience of the sector in which the company operates, to enable us to identify the key laws and regulations applicable to the company. We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including FCA, Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.
Lifestyle Policy Limited
Independent Auditor's Report to the Members of Lifestyle Policy Limited
We then performed audit procedures after consideration of the above risks which included the following:
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reviewing insurance policies to gain assurance that income is allocated in the correct period; |
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gain assurance of the completeness of turnover by vouching to insurance reports from underwriter; |
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reviewing systems and controls to gain assurance they are working effectively; |
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enquiring of management concerning actual and potential litigation and claims; |
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reviewing correspondence with HMRC, FCA and the company’s legal advisors; |
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performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
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reading minutes of meetings of those charged with governance; and; |
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in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
All engagement team members were informed of the relevant laws and regulations and potential fraud risks at the planning stage and reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify such items.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at 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 members, as a body, 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 members those matters we are required to state to them 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 members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
Statutory Auditors & Chartered Accountants
Lifestyle Policy Limited
Profit and Loss Account and Statement of Retained Earnings for the Year Ended 30 September 2024
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Note |
2024 |
2023 |
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Turnover |
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Cost of sales |
( |
( |
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Gross profit |
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Administrative expenses |
( |
( |
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Other operating income |
|
- |
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Operating profit |
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Other interest receivable and similar income |
|
|
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Interest payable and similar charges |
( |
( |
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|
(Loss)/profit before tax |
( |
|
|
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Taxation |
( |
( |
|
|
(Loss)/profit for the financial year |
( |
|
|
|
Retained earnings brought forward |
6,730,248 |
5,225,583 |
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Dividends paid |
( |
- |
|
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Retained earnings carried forward |
3,865,363 |
6,730,248 |
Lifestyle Policy Limited
(Registration number: 01489652)
Balance Sheet as at 30 September 2024
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Note |
2024 |
2023 |
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Fixed assets |
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Intangible assets |
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Tangible assets |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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Provisions for liabilities |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Retained earnings |
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Shareholders' funds |
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Approved and authorised by the
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Lifestyle Policy Limited
Statement of Cash Flows for the Year Ended 30 September 2024
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Note |
2024 |
2023 |
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Cash flows from operating activities |
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(Loss)/profit for the year |
( |
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Adjustments to cash flows from non-cash items |
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Depreciation and amortisation |
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Finance income |
( |
( |
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Finance costs |
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Corporation tax expense |
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Working capital adjustments |
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(Increase)/decrease in trade debtors |
( |
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Increase/(decrease) in trade creditors |
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( |
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Decrease in provisions |
- |
( |
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Cash generated from operations |
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Corporation taxes paid |
( |
( |
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Net cash flow from operating activities |
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Cash flows from investing activities |
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Interest received |
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Acquisitions of tangible assets |
( |
( |
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Net cash flows from investing activities |
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Cash flows from financing activities |
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Interest paid |
( |
( |
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Repayment of other borrowing |
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( |
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Dividends paid |
( |
- |
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Net cash flows from financing activities |
( |
( |
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Net (decrease)/increase in cash and cash equivalents |
( |
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Cash and cash equivalents at 1 October |
6,314,437 |
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Cash and cash equivalents at 30 September |
5,830,529 |
6,314,437 |
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Lifestyle Policy Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
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General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
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Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The company's functional and presentation currency is pound sterling.
Judgements
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that the actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. |
Shared expenses |
All shared expenses are allocated across related companies via recharges. Recharge split percentages are calculated on an appropriate allocation basis, such as turnover, staff numbers and building usage, according to expense type. |
Key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Useful economic lives of intangible assets
The annual amortisation charge for intangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments and economic utilisation. The carrying amount is £7,333,335 (2023 -£8,066,668).
Useful economic lives of tangible assets
The annual depreciation charge for tangible assets and their carrying amount is determined by the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually and amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The carrying amount is £540,567 (2023 -£604,954).
Lifestyle Policy Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Revenue recognition
Turnover represents commissions received which are recognised when debit notes are issued taking into account the inception date and period of insurance net of insurance premium tax. Amendments to commissions arising from return and additional premiums and adjustments are taken into account as and when they occur.
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
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Asset class |
Depreciation method and rate |
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Long leasehold improvements |
4% straight line basis |
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Plant and machinery |
10%-20% straight line basis |
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Furniture, fittings and equipment |
10% straight line basis |
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
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Asset class |
Amortisation method and rate |
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Goodwill |
6.7% straight line basis |
Lifestyle Policy Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Financial assets
Basic financial assets, including trade and other receivables, are initially recognised at transaction price, 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 for a similar asset. Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 and any subsequent reversal is recognised in profit or loss.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities
Basic financial liabilities, including trade and other payables, 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 receipts discounted at a market rate of interest for a similar debt instrument.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
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Turnover |
The analysis of the company's Turnover for the year from continuing operations is as follows:
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2024 |
2023 |
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Commissions |
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Lifestyle Policy Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
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Other operating income |
The analysis of the company's other operating income for the year is as follows:
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2024 |
2023 |
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Miscellaneous other operating income |
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- |
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Operating profit |
Arrived at after charging/(crediting)
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2024 |
2023 |
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Depreciation expense |
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Amortisation expense |
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Other interest receivable and similar income |
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2024 |
2023 |
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Interest income on bank deposits |
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Other finance income |
- |
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Interest payable and similar expenses |
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2024 |
2023 |
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Interest expense on other finance liabilities |
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Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
|
2024 |
2023 |
|
|
Wages and salaries |
|
|
|
Social security costs |
|
|
|
Pension costs, defined contribution scheme |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Administration and support |
|
|
|
Sales |
|
|
|
|
|
Lifestyle Policy Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Contributions paid to money purchase schemes |
|
|
|
153,663 |
125,320 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
|
2024 |
2023 |
|
|
Accruing benefits under money purchase pension scheme |
|
|
|
Auditors' remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
|
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
UK corporation tax adjustment to prior periods |
|
|
|
137,646 |
645,567 |
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
( |
|
Tax expense in the income statement |
|
|
Lifestyle Policy Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
|
2024 |
2023 |
|
|
(Loss)/profit before tax |
( |
|
|
Corporation tax at standard rate |
( |
|
|
Tax decrease from effect of capital allowances and depreciation |
- |
( |
|
Decrease from effect of different UK tax rates on some earnings |
- |
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Increase in UK and foreign current tax from unrecognised temporary difference from a prior period |
|
- |
|
Total tax charge |
|
|
Deferred tax
Deferred tax assets and liabilities
|
2024 |
Liability |
|
Depreciation in excess of capital allowances |
|
|
Other timing differences |
( |
|
|
|
2023 |
Liability |
|
Depreciation in excess of capital allowances |
|
|
Other timing differences |
( |
|
|
The amount of the net reversal of deferred tax assets and deferred tax liabilities expected to occur during the year beginning after the reporting period is £7,400 (2023 - £7,710).
Lifestyle Policy Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Intangible assets |
|
Goodwill |
Total |
|
|
Cost or valuation |
||
|
At 1 October 2023 |
|
|
|
At 30 September 2024 |
|
|
|
Amortisation |
||
|
At 1 October 2023 |
|
|
|
Amortisation charge |
|
|
|
At 30 September 2024 |
|
|
|
Carrying amount |
||
|
At 30 September 2024 |
|
|
|
At 30 September 2023 |
|
|
|
Tangible assets |
|
Land and buildings |
Plant and machinery |
Furniture, fittings and equipment |
Total |
|
|
Cost or valuation |
||||
|
At 1 October 2023 |
|
|
|
|
|
Additions |
- |
|
- |
|
|
At 30 September 2024 |
|
|
|
|
|
Depreciation |
||||
|
At 1 October 2023 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
At 30 September 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 30 September 2024 |
|
|
|
|
|
At 30 September 2023 |
|
|
|
|
Included within the net book value of land and buildings above is £370,459 (2023 - £387,391) in respect of long leasehold land and buildings.
Lifestyle Policy Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Debtors |
|
Current |
2024 |
2023 |
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Corporation tax asset |
|
- |
|
|
|
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash at bank |
|
|
|
Short-term deposits |
|
|
|
|
|
|
Creditors |
|
2024 |
2023 |
|
|
Due within one year |
||
|
Trade creditors |
|
|
|
Social security and other taxes |
|
|
|
Other creditors |
|
|
|
Accruals |
|
|
|
Corporation tax liability |
- |
660,521 |
|
|
|
Within trade creditors there is £Nil (2023 - £133,844) that relates to related parties and is included within the related party disclosure note.
|
Provisions for liabilities |
|
Deferred tax |
Total |
|
|
At 1 October 2023 |
|
|
|
Increase (decrease) in existing provisions |
( |
( |
|
At 30 September 2024 |
|
|
|
|
||
Lifestyle Policy Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
|
Reserves |
Share capital
Represents the nominal value of issued shares.
Profit and loss account
Includes all current and prior periods distributable profits and losses unless otherwise stated.
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
100 |
|
100 |
Rights, preferences and restrictions
|
Ordinary shares have the following rights, preferences and restrictions: |
|
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
|
2024 |
2023 |
|
|
Not later than one year |
|
|
|
Later than one year and not later than five years |
|
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Lifestyle Policy Limited
Notes to the Financial Statements for the Year Ended 30 September 2024
|
Analysis of changes in net debt |
|
At 1 October 2023 |
Financing cash flows |
At 30 September 2024 |
|
|
Cash and cash equivalents |
|||
|
Cash |
6,314,437 |
(483,908) |
5,830,529 |
|
Borrowings |
|||
|
Short term borrowings |
(4,703,507) |
(555,993) |
(5,259,500) |
|
|
( |
|
|
|
|
|||
|
Related party transactions |
Income and receivables from related parties
|
2024 |
Key management |
Other related parties |
|
Receipt of services |
- |
|
|
Amounts receivable from related party |
|
|
|
|
||
Amounts due from key management were advanced during the year and are interest free.
|
2023 |
Other related parties |
|
Receipt of services |
|
|
Amounts receivable from related party |
|
|
|
|
Expenditure with and payables to related parties
|
2024 |
Other related parties |
|
Rendering of services |
|
|
Amounts payable to related party |
|
|
|
|
|
2023 |
Other related parties |
|
Rendering of services |
|
|
Amounts payable to related party |
|
|
|
|
|
Parent and ultimate parent undertaking |
The ultimate controlling party is