REGISTERED NUMBER: 07462342 (England and Wales)

Group Strategic Report,

Report of the Director and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

Bright Star Financial Limited

Page

Company Information

1

Group Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

7

Consolidated Balance Sheet

8

Company Balance Sheet

9

Consolidated Statement of Changes in Equity

10

Company Statement of Changes in Equity

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Cash Flow Statement

13

Notes to the Consolidated Financial Statements

14

DIRECTOR:

R P Jupp

REGISTERED OFFICE:

7 Woodbrook Crescent

Billericay

Essex

CM12 0EQ

REGISTERED NUMBER:

07462342 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Lakeview House

4 Woodbrook Crescent

Billericay

Essex

CM12 0EQ

The director presents his strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The Group continues to help clients find solutions in the specialist lending and insurance markets. The loss for the year, before taxation, is £213,542 (2023: profit £24,864).

The Group's key financial and other performance indicators during the year were as follows:

2024

2023

Change

£

£

%

Turnover

9,902,729

12,353,974

-19.84%

Gross Profit

2,639,945

3,184,120

-17.09%

Profit Before Taxation

(213,542

)

24,864

-958.84%

The above year on year decreases in our KPIs are reflective of the difficult year the Group has experienced within the challenging economic climate. Following the significant restructuring within the management team and staff of one of the Group entities in the prior year, this year has seen significant investment and realignment within the business to prepare it for future success.

FUTURE DEVELOPMENTS

The Director believes that the restructuring and changes which the Group experienced in 2023 and completed during 2024 will allow it to emerge stronger, better organised, and more focused. The final quarter of 2024 showed this view to be true with the strong forecast for 2025 and beyond for the business.

PRINCIPAL RISKS AND UNCERTAINTIES

The Director reviews and evaluates risks of the Group on an on-going basis via strategic planning and risk management. The principal risks and uncertainties facing the Group can be broadly grouped as competitive and legislative risks.

•

Competitive risks

The Group has the cultivated the reputation as one of the best Specialist Distributors in the country. This has allowed us to develop strong relationships with our lending partners and finance brokers who utilise our knowledge and high level of customer service. This allows the Group to stand out and mitigate the risk posed by competitors.

•

Legislative Risks

The Group operates in markets which are highly regulated by the Financial Conduct Authority. Our highly experienced Group Compliance and Management teams work diligently to ensure that we are compliant with all relevant legislation and laws.

ON BEHALF OF THE BOARD:

R P Jupp - Director

28 May 2025

The director presents his report with the financial statements of the company and the group for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of financial services.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTOR

R P Jupp held office during the whole of the period from 1 January 2024 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Group Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R P Jupp - Director

28 May 2025

Opinion

We have audited the financial statements of Bright Star Financial Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 31 December 2024 and of the group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors 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 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 the audit:

-	the information given in the Group Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Director.

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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the group's and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or has no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

-

enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims;

-

enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations;

-

reviewing minutes of meetings of those charged with governance;

-

reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

-

performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Jeffrey Stanley FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Lakeview House

4 Woodbrook Crescent

Billericay

Essex

CM12 0EQ

28 May 2025

TURNOVER

9,902,729

12,353,974

Cost of sales

7,262,784

9,169,854

GROSS PROFIT

2,639,945

3,184,120

Administrative expenses

2,845,637

3,149,576

OPERATING (LOSS)/PROFIT

4

(205,692

)

34,544

Interest receivable and similar income

741

2,065

(204,951

)

36,609

Interest payable and similar expenses

5

8,591

11,745

(LOSS)/PROFIT BEFORE TAXATION

(213,542

)

24,864

Tax on (loss)/profit

6

(39,003

)

(30,265

)

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(174,539

)

55,129

FIXED ASSETS

Tangible assets

9

27,614

56,063

Investments

10

-

-

27,614

56,063

CURRENT ASSETS

Debtors

11

740,210

678,389

Cash at bank and in hand

510,131

351,522

1,250,341

1,029,911

CREDITORS

Amounts falling due within one year

12

1,236,650

752,114

NET CURRENT ASSETS

13,691

277,797

TOTAL ASSETS LESS CURRENT LIABILITIES

41,305

333,860

CREDITORS

Amounts falling due after more than one year

13

(25,667

)

(69,667

)

PROVISIONS FOR LIABILITIES

18

-

(14,016

)

NET ASSETS

15,638

250,177

CAPITAL AND RESERVES

Called up share capital

19

4,616

4,965

Capital redemption reserve

20

1,573

1,224

Retained earnings

20

9,449

243,988

SHAREHOLDERS' FUNDS

15,638

250,177

The financial statements were approved by the director and authorised for issue on 28 May 2025 and were signed by:

R P Jupp - Director

FIXED ASSETS

Tangible assets

9

21,361

41,594

Investments

10

401

101

21,762

41,695

CURRENT ASSETS

Debtors

11

484,436

579,358

Cash at bank

449,424

226,106

933,860

805,464

CREDITORS

Amounts falling due within one year

12

919,392

544,476

NET CURRENT ASSETS

14,468

260,988

TOTAL ASSETS LESS CURRENT LIABILITIES

36,230

302,683

CREDITORS

Amounts falling due after more than one year

13

(25,667

)

(69,667

)

PROVISIONS FOR LIABILITIES

18

-

(10,399

)

NET ASSETS

10,563

222,617

CAPITAL AND RESERVES

Called up share capital

19

4,616

4,965

Capital redemption reserve

20

1,573

1,224

Retained earnings

20

4,374

216,428

SHAREHOLDERS' FUNDS

10,563

222,617

Company's (loss)/profit for the financial year

(152,054

)

96,085

The financial statements were approved by the director and authorised for issue on 28 May 2025 and were signed by:

R P Jupp - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

4,955

237,579

1,224

243,758

Changes in equity

Issue of share capital

10

-

-

10

Dividends

-

(48,720

)

-

(48,720

)

Total comprehensive income

-

55,129

-

55,129

Balance at 31 December 2023

4,965

243,988

1,224

250,177

Changes in equity

Purchase of own shares

(349

)

-

-

(349

)

Total comprehensive income

-

(234,539

)

349

(234,190

)

Balance at 31 December 2024

4,616

9,449

1,573

15,638

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

4,955

169,063

1,224

175,242

Changes in equity

Issue of share capital

10

-

-

10

Dividends

-

(48,720

)

-

(48,720

)

Total comprehensive income

-

96,085

-

96,085

Balance at 31 December 2023

4,965

216,428

1,224

222,617

Changes in equity

Purchase of own shares

(349

)

-

-

(349

)

Total comprehensive income

-

(212,054

)

349

(211,705

)

Balance at 31 December 2024

4,616

4,374

1,573

10,563

Cash flows from operating activities

Cash generated from operations

1

258,651

(227,195

)

Interest paid

(8,591

)

(11,745

)

Net cash from operating activities

250,060

(238,940

)

Cash flows from investing activities

Purchase of tangible fixed assets

(3,024

)

(45,267

)

Interest received

741

2,065

Net cash from investing activities

(2,283

)

(43,202

)

Cash flows from financing activities

Loan repayments in year

(44,000

)

(44,000

)

Amount introduced by directors

14,832

-

Amount withdrawn by directors

-

(43,103

)

Share issue

-

70

Share buyback

(60,000

)

(60

)

Equity dividends paid

-

(48,720

)

Net cash from financing activities

(89,168

)

(135,813

)

Increase/(decrease) in cash and cash equivalents

158,609

(417,955

)

Cash and cash equivalents at beginning of year

2

351,522

769,477

Cash and cash equivalents at end of year

2

510,131

351,522

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.12.24

31.12.23

£

£

(Loss)/profit before taxation

(213,542

)

24,864

Depreciation charges

31,473

44,452

Finance costs

8,591

11,745

Finance income

(741

)

(2,065

)

(174,219

)

78,996

(Increase)/decrease in trade and other debtors

(51,666

)

35,540

Increase/(decrease) in trade and other creditors

484,536

(341,731

)

Cash generated from operations

258,651

(227,195

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

510,131

351,522

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

351,522

769,477

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank and in hand

351,522

158,609

510,131

351,522

158,609

510,131

Debt

Debts falling due within 1 year

(44,000

)

-

(44,000

)

Debts falling due after 1 year

(69,667

)

44,000

(25,667

)

(113,667

)

44,000

(69,667

)

Total

237,855

202,609

440,464

1.	STATUTORY INFORMATION

Bright Star Financial Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been 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. The financial statements have been prepared under the historical cost convention.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies. There were no critical judgements applied or key sources of estimation uncertainty.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going Concern

The company forecasts and projections take into consideration reasonably possible changes in trading performance, recognising the inherent uncertainty associated with the quantum and timing of future income. Based on the foregoing, these financial statements have been prepared on a going concern basis.

Turnover

Turnover comprises commissions, client fees and other income. These are accounted for when it is certain that the transaction will complete and be reliably measure. Income is stated net of VAT where applicable.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Office equipment

-

20% on cost

Fixtures and fittings

-

20% on cost

Computer equipment

-

33% on cost

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out right short term loan that is not at market rate, the financial asset or liability is measured, initially at present value of future cash flows discounted at a market rate of interest for similar debt instruments and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and the best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Impairment of assets

At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If the estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised in profit or loss.

Debtors

Debtors do not carry any interest and are stated at the transaction price. Appropriate allowances are made for irrecoverable amounts when there is objective evidence that the asset is impaired.

Creditors

Trade creditors do not carry any interest and are stated at the transaction price.

3.	EMPLOYEES AND DIRECTORS

31.12.24

31.12.23

£

£

Wages and salaries

2,453,927

2,680,450

Social security costs

253,946

279,873

Other pension costs

35,666

41,631

2,743,539

3,001,954

The average number of employees during the year was as follows:

31.12.24

31.12.23

Directors

2

3

Staff

52

54

54

57

The average number of employees by undertakings that were proportionately consolidated during the year was 54 (2023 - 57 ) .

31.12.24

31.12.23

£

£

Director's remuneration

184,669

194,943

4.	OPERATING (LOSS)/PROFIT

The operating loss (2023 - operating profit) is stated after charging:

31.12.24

31.12.23

£

£

Other operating leases

372,354

386,378

Depreciation - owned assets

31,474

44,452

Auditors' remuneration

27,600

22,800