Company registration number 09986610 (England and Wales)
SUTTON SPECIAL RISK UK LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PAGES FOR FILING WITH REGISTRAR
SUTTON SPECIAL RISK UK LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
SUTTON SPECIAL RISK UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 1 -
2024
2023
as restated
Notes
£
£
£
£
Current assets
Debtors
4
1,823,932
23,632,464
Cash at bank and in hand
18,501,547
1,049,877
20,325,479
24,682,341
Creditors: amounts falling due within one year
5
(17,580,962)
(22,165,276)
Net current assets
2,744,517
2,517,065
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
2,744,417
2,516,965
Total equity
2,744,517
2,517,065
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
The financial statements were approved by the board of directors and authorised for issue on 22 April 2025 and are signed on its behalf by:
Mr C Rodrigues
Director
Company registration number 09986610 (England and Wales)
SUTTON SPECIAL RISK UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 December 2023:
Balance at 1 January 2023
100
2,313,365
2,313,465
Year ended 31 December 2023:
Profit
-
597,713
597,713
Other comprehensive income:
Currency translation differences
-
(73,110)
(73,110)
Total comprehensive income
-
524,603
524,603
Dividends
-
(321,003)
(321,003)
Balance at 31 December 2023
100
2,516,965
2,517,065
Year ended 31 December 2024:
Profit
-
404,036
404,036
Other comprehensive income:
Currency translation differences
-
(176,584)
(176,584)
Total comprehensive income
-
227,452
227,452
Balance at 31 December 2024
100
2,744,417
2,744,517
SUTTON SPECIAL RISK UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
1
Accounting policies
Company information
Sutton Special Risk UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1-2 Charterhouse Mews, London, EC1M 6BB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling. The functional currency of the company is Canadian $. 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
Prior period error
The comparative figures for the financial year ended 31 December 2023 have been restated to correct the exchange rate used for translating the company’s results from the functional currency to the presentation currency. This restatement resulted in a net liability of £78,181.
Additionally, the statement of profit and loss for the year ended 31 December 2023 has been adjusted to reclassify exchange gains and losses to other comprehensive income (OCI), in accordance with the company’s accounting policy. Turnover has also been restated to classify sales commissions as a cost of sales. Finally, certain reclassifications have been made within the balance sheet and administrative expenses. Further details are provided in the notes to the financial statements.
1.3
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.
1.4
Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Commission income is recognised at the later of the issuance of debit or fee notes or the inception of the underlying policy, and is recognised progressively as the premium is collected, ensuring alignment with the pattern of earning and collectability.
Renewal commissions are recognised on the renewal date of the insurance policy, provided that the policy is renewed and there is reasonable certainty of collectability.
Alterations in brokerage arising from return and additional premiums and adjustments are recognised as and when these occur.
SUTTON SPECIAL RISK UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 4 -
Adjustments to commission and fees are recognised at the later of when they can be ascertained with reasonable certainty, which is normally when the amounts concerned are advised or confirmed by relevant third parties.
Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
1.5
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.
Included in the cash balance are the client monies held in trust, in accordance with CASS 5 rules and regulations.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
SUTTON SPECIAL RISK UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 5 -
1.7
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.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
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.
1.12
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.
The company translates the profit and loss and financial position from its functional currency, CAD $, into the presentation currency, £. All resulting exchange differences are recognised in other comprehensive income.
SUTTON SPECIAL RISK UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 6 -
1.13
Insurance brokers usually act as agents in place the insurable risk of their clients with insurers and as such, generally are not liable as principles for amounts arising from such transactions. Notwithstanding these legal relationships, debtors and creditors arising from insurance underwriting transactions as agents are shown as assets and liabilities; this recognises that the managing al underwriter is entitled to retain the investment income on any cash flows arising from these transactions.
Debtors and creditors arising from a transaction between client and insurers (e.g. a premium or a claim) are recorded simultaneously; consequently, there is a high level of correlation between totals reports in respect of insurance debtors and insurance creditors. The position of the insurance broker means that generally the credit risk is borne by the principals. There is much legal uncertainty surrounding the circumstances and the extent of such exposures and consequently they cannot be evaluated. However, the total of insurance debtors appearing in the balance sheet is not meaningful indication of credit risk.
It is normal practice for insurance broker to settle accounts with other intermediaries, clients, insurers and market settlement bureaux on a net basis. Thus, large changes in both insurance debtors and creditors can result from comparatively small cash settlements. For this reason, the totals of insurance debtors and creditors give no indication of future cash flows available to the company.
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.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
1
1
4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
483,091
443,111
Corporation tax recoverable
43,219
Amounts owed by group undertakings
1,233,282
1,168,057
Other debtors
64,340
22,021,296
1,823,932
23,632,464
SUTTON SPECIAL RISK UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
4
Debtors
(Continued)
- 7 -
As at 31 December 2023, the comparative amount in other debtors, totalling £22,021,296, included an amount of £22,002,108 held by the Principal Firm on behalf of Sutton Special Risk UK Ltd in accordance with CASS 5 rules. As at 31 December 2024, the company acts as the Principal Firm for the client monies, and these amounts are now included in bank and cash. The corresponding liability is recognised under other creditors.
5
Creditors: amounts falling due within one year
2024
2023
£
£
Corporation tax
129,161
Other creditors
17,535,081
22,000,385
Accruals and deferred income
45,881
35,730
17,580,962
22,165,276
As at 31 December 2024, other creditors included £17,535,081 (2023: £22,000,384) related to client monies.
6
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
24,780
24,000
7
Prior period adjustment
Changes to the balance sheet
Balances as restated:
As previously reported
Adjustment
As restated at 31 Dec 2023
£
£
£
Current assets
Debtors due within one year
1,680,998
21,951,466
23,632,464
Bank and cash
23,767,997
(22,718,120)
1,049,877
Creditors due within one year
Taxation
(133,173)
4,012
(129,161)
Other creditors
(22,720,576)
684,461
(22,036,115)
Net assets
2,595,246
(78,181)
2,517,065
Capital and reserves
Profit and loss reserves
2,595,146
(78,181)
2,516,965
SUTTON SPECIAL RISK UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
7
Prior period adjustment
(Continued)
- 8 -
Reconciliation of changes in equity
1 January
31 December
2023
2023
£
£
Adjustments to prior year
Restatement of the balance sheet to reflect the correct closing exchange rate.
-
(78,181)
Equity as previously reported
2,313,465
2,595,246
Equity as adjusted before transition adjustments
2,313,465
2,517,065
Analysis of the effect upon equity
Profit and loss reserves
-
(78,181)
8
Parent company
The parent company of Sutton Special Risk UK Limited is Sutton Special Risk Inc. and its registered office is 33 Yonge Street, Suite 400, P.O. Box 311, Toronto, ON M5E 1G4. The ultimate controlling company is Amynta Ultimate Holdings LLC.
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.
The auditor's report is unqualified.
Senior Statutory Auditor:
Monika Trzcinska
Statutory Auditors:
PK Audit LLP