Company registration number 02106087 (England and Wales)
GENERAL INSURANCE BROKERS (UK) PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
GENERAL INSURANCE BROKERS (UK) PLC
COMPANY INFORMATION
Directors
S Mirza
M J Zaidi
Secretary
M J Zaidi
Company number
02106087
Registered office
90 Bishops Bridge Road
Bayswater
London
W2 5AA
Auditors
Charterhouse (Audit) Limited
166 College Road
Harrow
Middlesex
HA1 1RA
Business address
90 Bishops Bridge Road
Bayswater
London
W2 5AA
GENERAL INSURANCE BROKERS (UK) PLC
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 22
GENERAL INSURANCE BROKERS (UK) PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present the strategic report for the year ended 31 December 2024.
Fair review of the business
The directors consider the profit achieved on ordinary activities before taxation to be satisfactory. The company is adequately placed to take advantage of business opportunities, and the directors consider the state of affairs to be satisfactory.
The key financial highlights are as follows:
The company’s EBITDA margin declined from 91% in 2023 to 70% in the current year. This decline was primarily driven by reduced investment dividend income from the stock market, following a strategic decision to scale back stock market investments amid increased market volatility.
Principal risks and uncertainties
The company continues to be exposed to the competitive pressures that are common across most areas of the insurance market including intensified competition within the market from other broking houses. However, the company is fortunate in that it operates in a very niche market.
The company maintains supportive relationships with its insurers to ensure competitiveness in its broking activities. The company further manages these risks by providing added value services to its customers and maintains strong relationships with customers and insurers.
The company has effective credit control and cancellation procedures in place to minimise credit risks.
The company's risk to currency is limited as the majority of the transactions are in GBP.
Financial risk management
The company's principal financial instruments comprise bank balances and trade creditors. The main purpose of these instruments is to finance the company's trading activities.
Due to the nature of the financial instruments used there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is described below.
In respect of bank balances, the liquidity risk is managed by maintaining sufficient balances in liquid form for the immediate and future needs of the company.
Trade creditors liquidity risk is managed by ensuring that sufficient funds are available to meet amounts due.
Non-financial key performance indicators
The directors believe that the use of non-financial KPI's is not necessary for an understanding of the results and operations of the business.
Future developments
The directors expect to maintain their position in the market and continue to strive for new business growth.
Promoting the success of the company
Section 172 (1) of the Companies Act 2006 requires that each director of a company must act in a way that they consider, in good faith, would most likely promote the success of the company for the benefit of its members as a whole.
GENERAL INSURANCE BROKERS (UK) PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Clients
The company has clients from all around the world who own buildings and vehicles in the UK. The company provides business critical services to its clients, often in highly regulated environments. The company has a strategy to prioritise organic growth by cross-selling and up-selling services to existing clients and bringing new clients by recommendations. To do this, the company develops and maintains strong client relationship by ensuring there is always someone available to its clients 7 days a week therefore offering that extra value added services.
Employees
The company is committed to being a responsible business. This behaviour is aligned with the expectations of our employees, clients, suppliers, communities and society as a whole. Employees are at the heart of the company and its extra value added services. For the business to succeed the company needs to manage its employees performance and development and bring through talent while ensuring it operates as efficiently as possible. The company must ensure it shares common values that inform and guide its behaviour so it achieves its goals in the right way.
Suppliers
The company's suppliers are various insurance companies. As the company grows it is vital they value their suppliers and have good relationship including paying the suppliers on time.
S Mirza
Director
24 June 2025
GENERAL INSURANCE BROKERS (UK) PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company in the year under review continued to be that of insurance brokers.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £8,900,000. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
S Mirza
M J Zaidi
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of directors' responsibilities
The directors are responsible 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:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK standards, including FRS102 have been followed, subject to any material departures disclosed and explained in the financial statements : and
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.
Statement of disclosure to auditors
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 auditors are 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 auditors are aware of that information.
GENERAL INSURANCE BROKERS (UK) PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
On behalf of the board
S Mirza
Director
24 June 2025
GENERAL INSURANCE BROKERS (UK) PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF GENERAL INSURANCE BROKERS (UK) PLC
- 5 -
Opinion
We have audited the financial statements of General Insurance Brokers (UK) Plc (the 'company') for the year ended 31 December 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:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit 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.
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 directors' 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 directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
GENERAL INSURANCE BROKERS (UK) PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF GENERAL INSURANCE BROKERS (UK) PLC
- 6 -
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 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 directors' responsibilities statement, 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'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.
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.
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
the client partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify and recognise non-compliance with applicable laws and regulations;
we identified the laws and regulations applicable to the company through discussions with directors, key management personnel and from our commercial knowledge and experience.
we focused on specific laws and regulations which we considered may have a direct effect on the financial statements or the operations of the company including the Companies Act 2006, current taxation legislation, data protection, anti-bribery and money laundering, employment and health and safety legislation;
we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management;
identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur by;
making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual suspected and alleged fraud; and
considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
GENERAL INSURANCE BROKERS (UK) PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF GENERAL INSURANCE BROKERS (UK) PLC
- 7 -
To address the risk of fraud through management bias and override of controls we have;
performed analytical procedures to identify any unusual or unexpected relationships;
tested journal entries to identify unusual transactions;
assessed whether judgements and assumptions made in determining the any accounting estimates were indicative of potential bias.
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.
...............................................................
25 June 2025
Nirav Sheth (Senior Statutory Auditor)
For and on behalf of Charterhouse (Audit) Limited
Statutory Auditor
Charterhouse (Audit) Limited
166 College Road
Harrow
Middlesex
HA1 1RA
GENERAL INSURANCE BROKERS (UK) PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
2,385,338
2,502,998
Cost of sales
(113,841)
(114,617)
Gross profit
2,271,497
2,388,381
Administrative expenses
(803,937)
(802,325)
Operating profit
4
1,467,560
1,586,056
Interest receivable and similar income
8
220,934
701,085
Interest payable and similar expenses
9
73,403
(65,538)
Other gains and losses
10
71,975
128,389
Profit before taxation
1,833,872
2,349,992
Tax on profit
11
(458,532)
(438,782)
Profit for the financial year
1,375,340
1,911,210
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There are no recognised gains and losses other than those passing through the profit and loss account.
GENERAL INSURANCE BROKERS (UK) PLC
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
176,348
163,750
Current assets
Debtors
14
646,831
71,239
Investments
15
5,209,085
Cash at bank and in hand
6,609,043
26,128,000
12,464,959
26,199,239
Creditors: amounts falling due within one year
16
(8,699,191)
(14,277,714)
Net current assets
3,765,768
11,921,525
Total assets less current liabilities
3,942,116
12,085,275
Provisions for liabilities
Provisions
17
616,741
Deferred tax liability
18
6,404
8,162
(6,404)
(624,903)
Net assets
3,935,712
11,460,372
Capital and reserves
Called up share capital
20
50,000
50,000
Profit and loss reserves
3,885,712
11,410,372
Total equity
3,935,712
11,460,372
The financial statements were approved by the board of directors and authorised for issue on 24 June 2025 and are signed on its behalf by:
S Mirza
Director
Company registration number 02106087 (England and Wales)
GENERAL INSURANCE BROKERS (UK) PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
50,000
9,499,162
9,549,162
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,911,210
1,911,210
Balance at 31 December 2023
50,000
11,410,372
11,460,372
Year ended 31 December 2024:
Profit and total comprehensive income
-
1,375,340
1,375,340
Dividends
12
-
(8,900,000)
(8,900,000)
Balance at 31 December 2024
50,000
3,885,712
3,935,712
GENERAL INSURANCE BROKERS (UK) PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
24
(5,157,640)
1,717,201
Interest paid
73,403
(65,538)
Taxes paid
(590,034)
(903,074)
Net cash (outflow)/inflow from operating activities
(5,674,271)
748,589
Investing activities
Purchase of tangible fixed assets
(28,511)
(3,369)
Purchase of investments
(5,137,109)
(9,070,263)
Proceeds on disposal of investments
-
9,198,652
Interest received
100,934
152,233
Dividends received
120,000
548,852
Net cash (used in)/generated from investing activities
(4,944,686)
826,105
Financing activities
Dividends paid
(8,900,000)
Net cash used in financing activities
(8,900,000)
-
Net (decrease)/increase in cash and cash equivalents
(19,518,957)
1,574,694
Cash and cash equivalents at beginning of year
26,128,000
24,553,306
Cash and cash equivalents at end of year
6,609,043
26,128,000
GENERAL INSURANCE BROKERS (UK) PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information
General Insurance Brokers (UK) Plc is a private company limited by shares incorporated in England and Wales. The registered office and the business office address is 90 Bishops Bridge Road, Bayswater, London, W2 5AA.
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.
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
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover represents brokerage fee, commission and other fees receivable.
Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business as follows:
Turnover relating to insurance broking is recognised at the earlier of the policy inception date or when the policy placement has been completed and confirmed.
Fees and other income are recognised on a receivable basis for the period to which they relate.
Turnover relating to commission is recognised when it is received.
1.4
Tangible fixed assets
Tangible fixed assets are measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Land and buildings leasehold
2.5% reducing balance
Fixtures, fittings and equipment
15% 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.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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).
GENERAL INSURANCE BROKERS (UK) PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
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 measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
Trade debtors, loans and other receivables that have fixed or determinable payments that are not quoted in an active market are classified as 'loans and receivables'.
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.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, are recognised at transaction price unless the arrangement constitutes a financing transaction. Financial liabilities classified as payable within one year are not amortised.
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.
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.
GENERAL INSURANCE BROKERS (UK) PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Deferred tax
Deferred tax is provided in full in respect of taxation deferred by timing differences between the treatment of certain items for taxation and accounting purposes. The deferred tax balance has not been discounted.
1.10
Provisions
Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
1.12
Retirement benefits
The company operates money purchase (defined contribution) pension schemes. Contributions made to these schemes are charged to the profit and loss account in the period to which they relate. These contributions are invested separately from the company's assets.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
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 directors are 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.
GENERAL INSURANCE BROKERS (UK) PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 15 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows;
Estimating accrued income
The company makes an estimate of the recognition of accrued income. The company applies an average percentage based on client's knowledge of the industry to the outstanding amount of premiums received from customers as at the balance sheet date. Any significant change in the level of average percentage would have an impact on the operating results. The level of percentage applied is reviewed on an on-going basis.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2024
2023
£
£
Turnover analysed by class of business
Brokerage fees
2,023,070
2,265,046
Commissions received
362,268
237,952
2,385,338
2,502,998
2024
2023
£
£
Other revenue
Interest income
100,934
152,233
Dividends received
120,000
548,852
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Exchange losses
3,566
2,313
Depreciation of owned tangible fixed assets
15,242
9,712
Loss on disposal of tangible fixed assets
670
-
Operating lease charges
32,000
31,000
GENERAL INSURANCE BROKERS (UK) PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditors and associates:
£
£
For audit services
Audit of the financial statements of the company
11,000
10,000
For other services
Other assurance services
2,220
2,000
Taxation compliance services
7,000
3,900
9,220
5,900
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Administration
14
13
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
418,817
382,586
Social security costs
36,412
32,822
Pension costs
10,197
9,085
465,426
424,493
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
72,000
72,000
Company pension contributions to defined contribution schemes
173
2,573
72,173
74,573
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
Key management personnel of the company consists of its directors only.
GENERAL INSURANCE BROKERS (UK) PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
94,940
152,233
Other interest income
5,994
Total interest revenue
100,934
152,233
Other income from investments
Dividends received
120,000
548,852
Total income
220,934
701,085
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
94,940
152,233
9
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Reversal of interest accrued in prior year
(73,403)
65,538
10
Other gains and losses
2024
2023
£
£
Fair value gains/(losses) on financial instruments
Gain on current asset investments held at fair value through profit or loss
71,975
Other gains/(losses)
Gain on disposal of current asset investments
-
128,389
71,975
128,389
11
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
399,002
439,371
Adjustments in respect of prior periods
61,288
Total current tax
460,290
439,371
GENERAL INSURANCE BROKERS (UK) PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
11
Taxation
2024
2023
£
£
(Continued)
- 18 -
Deferred tax
Origination and reversal of timing differences
(1,758)
(589)
Total tax charge
458,532
438,782
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
1,833,872
2,349,992
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
458,468
587,498
Tax effect of expenses that are not deductible in determining taxable profit
4,490
15,854
Group relief
(540)
Permanent capital allowances in excess of depreciation
2,389
1,409
Effect of revaluations of investments
(17,994)
Under provision of tax in respect of prior years
61,288
Dividend income
(30,000)
(137,213)
Deferred tax movement
(1,758)
(589)
Change in corporation tax rate
(27,637)
Interest not taxable
(18,351)
Taxation charge for the year
458,532
438,782
12
Dividends
2024
2023
£
£
Interim paid
8,900,000
GENERAL INSURANCE BROKERS (UK) PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
13
Tangible fixed assets
Land and buildings leasehold
Fixtures, fittings and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
201,409
213,895
15,846
431,150
Additions
3,611
24,900
28,511
Disposals
(15,846)
(15,846)
At 31 December 2024
201,409
217,506
24,900
443,815
Depreciation and impairment
At 1 January 2024
73,518
178,707
15,175
267,400
Depreciation charged in the year
3,197
5,820
6,225
15,242
Eliminated in respect of disposals
(15,175)
(15,175)
At 31 December 2024
76,715
184,527
6,225
267,467
Carrying amount
At 31 December 2024
124,694
32,979
18,675
176,348
At 31 December 2023
127,891
35,188
671
163,750
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Corporation tax recoverable
17,607
Other debtors
500,358
621
Prepayments and accrued income
128,866
70,618
646,831
71,239
15
Current asset investments
2024
2023
£
£
Listed investments
5,209,085
The current asset investments are measured at fair value. During the year there was a fair value movement of £71,975 through profit and loss account.
GENERAL INSURANCE BROKERS (UK) PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
16
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,212,447
1,145,637
Amounts owed to group undertakings
7,450,000
11,366,820
Corporation tax
112,137
Other taxation and social security
10,817
10,464
Other creditors
5,707
1,605,857
Accruals and deferred income
20,220
36,799
8,699,191
14,277,714
17
Provisions for liabilities
2024
2023
£
£
General provisions
-
616,741
Movements on provisions:
General provisions
£
At 1 January 2024
616,741
Settlement of provisions in the year
(616,741)
At 31 December 2024
-
The company has taken advantage of the exemption under para 21.17 of FRS102 not to disclose the nature of the provisions.
18
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
6,404
8,162
GENERAL INSURANCE BROKERS (UK) PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
18
Deferred taxation
(Continued)
- 21 -
2024
Movements in the year:
£
Liability at 1 January 2024
8,162
Credit to profit or loss
(1,758)
Liability at 31 December 2024
6,404
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
10,197
9,085
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.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,000
50,000
50,000
50,000
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
30,000
30,000
22
Related party transactions
A director holds the freehold title in respect of the company's property which is held on a long leasehold agreement. During the year ground rent of £2,000 (2023: £1,000) was paid to a director.
The company occupies a building owned by the directors and their immediate families. During the year rent of £30,000 (2023: £30,000) was paid to the directors and their immediate families.
Included in other debtors is an amount of £404 (2023: £1,603,653 creditor) due from director of the company. Maximum amount due during the period was £404. No interest has been charged during the year.
During the year the company paid consultancy fees of £Nil (2023: £7,605) to a family member of the directors.
GENERAL INSURANCE BROKERS (UK) PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
23
Ultimate controlling party
The immediate parent company is General Insurance Brokers Holdings Limited which owns 100% of the shares and the ultimate parent company is SM UK Holdings Limited, which owns 65% of the issued share capital of the immediate parent company and both are registered in England and Wales. The registered office of the ultimate parent company is 90 Bishops Bridge Road, London, W2 5AA.
The company is ultimately controlled by the director, S Mirza.
24
Cash (absorbed by)/generated from operations
2024
2023
£
£
Profit for the year after tax
1,375,340
1,911,210
Adjustments for:
Taxation charged
458,532
438,782
Finance costs
(73,403)
65,538
Investment income
(220,934)
(701,085)
Loss on disposal of tangible fixed assets
670
-
Depreciation and impairment of tangible fixed assets
15,242
9,712
Gain on sale of investments
-
(128,389)
Other gains and losses
(71,975)
-
(Decrease)/increase in provisions
(616,741)
61,817
Movements in working capital:
Increase in debtors
(557,985)
(12,620)
(Decrease)/increase in creditors
(5,466,386)
72,236
Cash (absorbed by)/generated from operations
(5,157,640)
1,717,201
25
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
26,128,000
(19,518,957)
6,609,043
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