Year Ended
Registration number:
Accident Claims Handlers Limited
Contents
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Company Information |
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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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Statement of Income and Retained Earnings |
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Balance Sheet |
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Statement of Changes in Equity |
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Statement of Cash Flows |
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Notes to the Financial Statements |
Accident Claims Handlers Limited
Company Information
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Directors |
Mr M D Savory Mr M N Savory |
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Registered office |
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Bankers |
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Auditors |
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Accident Claims Handlers Limited
Strategic Report for the Year Ended 31 December 2024
The directors present their strategic report for the year ended 31 December 2024.
Principal activity
The principal activity of the company is the sale of used motor vehicles, the handling of insurance claims for motor accidents and the hire of motor vehicles.
Fair review of the business
The company performed well in the year to 31 December 2024, with operating profit up 20% on the prior year at £1.15m (2023 - £1.12). The claims management division has had a particularly good year with growing volumes, strong staff performance and implementation of a new IT system playing key roles. The Imola car sales division continued to suffer from a less buoyant used car market, further exasperated by a downward correction in used car prices.
Trading has been strong in 2023 to date across both divisions with strong volumes in claims management and recovery from the correction in used car prices helping Imola. The directors expect this to continue for the foreseeable future and believe the company is well placed to continue to succeed.
The business remains financially resilient with significant cash reserves and a material reduction in loans and borrowings vs 2022. This gives flexibility to invest at the right time in the claims handling hire fleet and to take advantage of stock buying opportunities that arise in the used car market.
Considering the above,the directors have assessed that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they adopt the going concern basis in preparing the financial statements.
The company's key financial and other performance indicators during the year were as follows:
|
Financial KPIs |
Unit |
2024 |
2023 |
|
ACH turnover |
£'000 |
3,352 |
2,829 |
|
Imola turnover |
£'000 |
9,642 |
9,947 |
|
Gross profit |
£'000 |
2,780 |
2,006 |
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Gross profit margin |
% |
21 |
16 |
|
Net profit after tax |
£'000 |
838 |
782 |
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Net profit margin |
% |
6 |
6 |
|
Net assets |
£'000 |
6,544 |
5,855 |
Accident Claims Handlers Limited
Strategic Report for the Year Ended 31 December 2024
Principal risks and uncertainties
The principal risks faced by the Imola division are:
• The availability of used cars at prices which enable a reasonable margin.
• Continued high interest rates limiting the availability of affordable finance for customers.
• Inflationary pressures on parts and repairs.
The principal risks faced by the Claims Handling division are:
• Failure of insurers to pay in reasonable timeframes.
• Legal or Regulatory change.
The company mitigates these risks by keeping cash reserves high (to enable them to absorb later payments by insurers and take advantage of any appropriate availability of used cars when it arises) and by monitoring economic and regulatory trends. The directors will continue to ensure that the range of vehicles and quality of service provided by the company remains relevant to both insurers and consumers.
Approved and authorised by the
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Accident Claims Handlers Limited
Directors' Report for the Year Ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
Directors of the company
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The company's activities expose it to a number of financial risks, including credit risk, cash flow risk and liquidity risk. The use and nature of financial instruments are determined by the director in the context of trading terms made available to the company and wider group by customers and suppliers, with the objective of securing the liquidity and profitability of the company.
Price risk, credit risk, liquidity risk and cash flow risk
The business' principal financial instruments comprise of bank balances, trade debtors and trade creditors, of which the main purpose is to finance the business operations.
Trade debtors are managed in respect of credit and cash flow risk by regular monitoring of amounts outstanding for both time and credit limits. The amounts in the balance sheet allow for doubtful debt.
Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.
Future developments
The future plans of the business are discussed in the Strategic Report.
Important non adjusting events after the financial period
Directors' liabilities
The directors have assessed that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they adopt the going concern basis in preparing the financial statements.
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.
Approved and authorised by the
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Accident Claims Handlers 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.
Accident Claims Handlers Limited
Independent Auditor's Report to the Members of Accident Claims Handlers Limited
Opinion
We have audited the financial statements of Accident Claims Handlers Limited (the 'company') for the year ended 31 December 2024, which comprise the Statement of Income and Retained Earnings, Balance Sheet, Statement of Changes in Equity, 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 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. |
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.
Accident Claims Handlers Limited
Independent Auditor's Report to the Members of Accident Claims Handlers Limited
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. |
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.
Accident Claims Handlers Limited
Independent Auditor's Report to the Members of Accident Claims Handlers Limited
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:
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the entity and the sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process we discussed with management the laws and regulations applicable to the company, reviewed certification identified on the company website and other communications and considered findings from previous audits.
The key laws and regulations we identified were Financial Conduct Authority regulation, Health & Safety at Work, General Data Protection Regulations (GDPR) and Employment Law.
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily Companies Act 2006, Corporation Taxes Acts 2009 & 2010, and the Capital Allowances Act 2001.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place.
We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deal with reporting any issues if they arise.
As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue trading and the risk of material misstatement to the financial statements.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;
• Reviewed the company policies in place to ensure compliance with the laws and regulations that could affect the financial statements;
• Reviewed legal and professional costs to identify any possible non compliance or legal costs in respect of non compliance;
• Enquiries of the third party service providers with whom the company engages in respect of FCA compliance;
• Examined any regulatory certification and correspondence in relation to the key laws and regulations during the period and after the period;
• Made enquiries of the company Data Protection Officer as to whether there had been any known GDPR breaches or reports in the year and confirmed that Data Protection Policies and ICO certification was in place during the year.
As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which management confirmed there had been none during or after the period.
We also evaluated the risk of fraud through management override. The key risks we identified were incentives relating to the reporting of results to present a favourable position in terms of taxation, and we determined that the principal risks were related to completness in respect of revenue recognition, management override of controls and stock and debtor valuation.
In response to the identified risks, as part of our audit work we:
Accident Claims Handlers Limited
Independent Auditor's Report to the Members of Accident Claims Handlers Limited
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:
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the entity and the sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process we discussed with management the laws and regulations applicable to the company, reviewed certification identified on the company website and other communications and considered findings from previous audits.
The key laws and regulations we identified were Financial Conduct Authority regulation, Health & Safety at Work, General Data Protection Regulations (GDPR) and Employment Law.
We also considered those laws and regulations that have a direct impact on the preparation of the financial statements, primarily Companies Act 2006, Corporation Taxes Acts 2009 & 2010, and the Capital Allowances Act 2001.
We discussed with management how the compliance with these laws and regulations is monitored and discussed policies and procedures in place.
We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deal with reporting any issues if they arise.
As part of our planning procedures, we assessed the risk of any non-compliance with laws and regulations on the entity’s ability to continue trading and the risk of material misstatement to the financial statements.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiries of management regarding their knowledge of any non-compliance with laws and regulations that could affect the financial statements;
• Reviewed the company policies in place to ensure compliance with the laws and regulations that could affect the financial statements;
• Reviewed legal and professional costs to identify any possible non compliance or legal costs in respect of non compliance;
• Enquiries of the third party service providers with whom the company engages in respect of FCA compliance;
• Examined any regulatory certification and correspondence in relation to the key laws and regulations during the period and after the period;
• Made enquiries of the company Data Protection Officer as to whether there had been any known GDPR breaches or reports in the year and confirmed that Data Protection Policies and ICO certification was in place during the year.
As part of our enquiries we discussed with management whether there have been any known instances, allegations or suspicions of fraud, of which management confirmed there had been none during or after the period.
We also evaluated the risk of fraud through management override. The key risks we identified were incentives relating to the reporting of results to present a favourable position in terms of taxation, and we determined that the principal risks were related to completness in respect of revenue recognition, management override of controls and stock and debtor valuation.
In response to the identified risks, as part of our audit work we:
• Used data analytics to test journal entries throughout the year, for appropriateness;
• Reviewed estimates and judgements made in the accounts for any indication of bias and challenged assumptions used by management in making the estimates.
• Undertook specific cut-off procedures in respect of revenue recognition
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to be come aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
A further description of our responsibilities is available 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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90 Victoria Street
BS1 6DP
Accident Claims Handlers Limited
Statement of Income and Retained Earnings
Year Ended 31 December 2024
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Note |
2024 |
2023 |
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|
Turnover |
|
|
|
|
Cost of sales |
( |
( |
|
|
Gross profit |
|
|
|
|
Administrative expenses |
( |
( |
|
|
Other operating income |
|
|
|
|
Operating profit |
|
|
|
|
Other interest receivable and similar income |
|
|
|
|
Interest payable and similar charges |
( |
( |
|
|
(50,773) |
(89,385) |
||
|
Profit before tax |
|
|
|
|
Taxation |
( |
( |
|
|
Profit for the financial year |
|
|
|
|
Retained earnings brought forward |
5,820,878 |
5,188,504 |
|
|
Dividends paid |
( |
( |
|
|
Retained earnings carried forward |
6,509,304 |
5,820,878 |
Accident Claims Handlers Limited
Balance Sheet
31 December 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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Investment property |
|
|
|
|
|
|
||
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Current assets |
|||
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Stocks |
|
|
|
|
Debtors |
|
|
|
|
Cash at bank and in hand |
|
|
|
|
|
|
||
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Creditors: Amounts falling due within one year |
( |
( |
|
|
Net current assets |
|
|
|
|
Total assets less current liabilities |
|
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
|
Provisions for liabilities |
( |
( |
|
|
Net assets |
|
|
|
|
Capital and reserves |
|||
|
Called up share capital |
15,000 |
15,000 |
|
|
Revaluation reserve |
20,000 |
20,000 |
|
|
Profit and loss account |
6,509,304 |
5,820,878 |
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|
Shareholders' funds |
6,544,304 |
5,855,878 |
Approved and authorised by the
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Company Registration Number: 03877804
Accident Claims Handlers Limited
Statement of Changes in Equity
Year Ended 31 December 2024
|
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
|
|
At 1 January 2024 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 31 December 2024 |
|
|
|
|
|
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
|
|
At 1 January 2023 |
|
|
|
|
|
Profit for the year |
- |
- |
|
|
|
Dividends |
- |
- |
( |
( |
|
At 31 December 2023 |
15,000 |
20,000 |
5,820,878 |
5,855,878 |
Included within the Profit and Loss reserve in 2024 is £200,000 in respect of non-distributable profits arising from fair value gains on investment property.
Accident Claims Handlers Limited
Statement of Cash Flows
Year Ended 31 December 2024
|
Note |
2024 |
2023 |
|
|
Cash flows from operating activities |
|||
|
Profit for the year |
|
|
|
|
Adjustments to cash flows from non-cash items |
|||
|
Depreciation and amortisation |
|
|
|
|
Profit on disposal of tangible assets |
( |
( |
|
|
Finance income |
( |
( |
|
|
Finance costs |
|
|
|
|
Corporation tax |
|
|
|
|
|
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||
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Working capital adjustments |
|||
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Increase in stocks |
( |
( |
|
|
Increase in trade debtors |
( |
( |
|
|
Increase/(decrease) in trade creditors |
|
( |
|
|
Cash generated from operations |
|
|
|
|
Income taxes paid |
( |
( |
|
|
Net cash flow from operating activities |
|
|
|
|
Cash flows from investing activities |
|||
|
Interest received |
|
|
|
|
Acquisitions of tangible assets |
( |
( |
|
|
Proceeds from sale of tangible assets |
|
|
|
|
Acquisition of intangible assets |
( |
( |
|
|
Net cash flows from investing activities |
( |
( |
|
|
Cash flows from financing activities |
|||
|
Interest paid |
( |
( |
|
|
Repayment of bank borrowing |
( |
( |
|
|
Dividends paid |
( |
( |
|
|
Net cash flows from financing activities |
( |
( |
|
|
Net decrease in cash and cash equivalents |
( |
( |
|
|
Cash and cash equivalents at 1 January |
|
|
|
|
Cash and cash equivalents at 31 December |
776,971 |
1,274,884 |
|
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
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General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
These financial statements were authorised for issue by the
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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'.
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.
Going concern
The directors have assessed that the Company has adequate resources to continue in operational existence and to meet its financial obligations as they fall due for at least 12 months from the date of signing these financial statements. Accordingly, they adopt the going concern basis in preparing the financial statements.
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Key judgements and sources of estimation uncertainty
In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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. The critical judgements made by management that have a significant effect on the amounts recognised in the financial statements are described below.
Certain of the company’s freehold property is accounted for as investment property and held at market value on the balance sheet in accordance with FRS 102 section 16, with changes in market value being recognised in profit and loss for the year. Such market valuation involves significant estimation and the directors have engaged Avison Young (UK) Limited surveyors to undertake an independent valuation process which supports the directors valuation as at 31 December 2024. The carrying value of investment property as at 31 December 2024 was £320,000 (2023 - £320,000).
Included within the balance sheet are provisions in respect of both bad debts and credit notes anticipated to be raised subsequent to the year end. These provisions arise from the judgement that is required to be made in respect of the claims management process fees billed, the recovery of which can extend over a number of accounting periods as claims are settled between customers and their insurers. The directors have reviewed the status of all unrecovered trade debtors included in the accounts as at 31 December 2023 and have made a judgement in each case on the likelihood of the debt being recovered or a credit note needing to be raised. This assessment is based upon the point in the claims process the debt has reached as well as the underlying information relating to that claim. The aggregate value of provisions against the year end trade debtors was £873,873 (2023 - £399,794).
In common with many entities within the claims handling sector, the company is subject to regulations in respect of both data protection and insurance intermediary advisory services. The directors are not aware of any regulatory breaches in the year ended 31 December 2024 which could give rise to any fines, penalties or restriction of trading activities. There is £Nil (2023 - £Nil) provision included in the financial statements in respect of regulatory matters.
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Revenue recognition
Revenue comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
Vehicle sales revenue is recognised at the point of delivery.
Insurance claims management revenue is recognised at the end of the claims process once the amount of revenue can be reliably measured.
Income relating to vehicle hire is recognised evenly across the period of hire.
Government grants
Government grants receivable comprises monetary assistance received from the government, government agencies and similar bodies whether local or national. Grants receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support to the entity with no future related costs, is recognised in income in the period in which it becomes receivable.
Grants are recognised when there is reasonable assurance that:
- The entity will adhere to the conditions which are attached to the grant, and
- The grant will be received.
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 on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
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.
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
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:
|
Asset class |
Depreciation method and rate |
|
Freehold buildings |
2% straight line |
|
Office equipment |
15% reducing balance |
|
Motor vehicles |
25% reducing balance |
|
Property Improvements |
10% straight line |
Investment property
Intangible assets
Intangible assets are stated in the balance sheet at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.
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:
|
Asset class |
Amortisation method and rate |
|
Goodwill |
25% straight line |
|
Registration marks |
10% reducing balance |
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
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
Classification
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
|
Turnover |
The analysis of the company's Turnover for the year from continuing operations in the UK is as follows:
|
2024 |
2023 |
|
|
Sale of goods |
|
|
|
Rendering of services |
|
|
|
Other revenue |
- |
|
|
|
|
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Other operating income |
The analysis of the company's other operating income for the year is as follows:
|
2024 |
2023 |
|
|
Rental income |
|
|
|
Other operating income |
|
|
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
|
2024 |
2023 |
|
|
Depreciation expense |
|
|
|
Amortisation expense |
|
|
|
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 |
|
|
|
Other employee expense |
|
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
|
2024 |
2023 |
|
|
Sales, administration and support |
|
|
|
|
|
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
|
2024 |
2023 |
|
|
Remuneration |
|
|
In respect of the highest paid director:
|
2024 |
2023 |
|
|
Remuneration |
|
|
|
Auditor's remuneration |
|
2024 |
2023 |
|
|
Audit of the financial statements |
22,140 |
19,360 |
|
Audit of the financial statements |
|
|
|
Other interest receivable and similar income |
|
2024 |
2023 |
|
|
Interest income on bank deposits |
|
|
|
Interest payable and similar expenses |
|
2024 |
2023 |
|
|
Interest on bank overdrafts and borrowings |
|
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
|
|
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Taxation |
Tax charged/(credited) in the profit and loss account
|
2024 |
2023 |
|
|
Current taxation |
||
|
UK corporation tax |
|
|
|
Deferred taxation |
||
|
Arising from origination and reversal of timing differences |
( |
|
|
Tax expense in the income statement |
|
|
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 |
|
|
Profit before tax |
|
|
|
Corporation tax at standard rate |
|
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
- |
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
|
Further item of tax (decrease)/increase |
( |
|
|
Total tax charge |
|
|
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Intangible assets |
|
Goodwill |
Software costs |
Registration marks |
Total |
|
|
Cost or valuation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Additions acquired separately |
- |
|
- |
|
|
At 31 December 2024 |
|
|
|
|
|
Amortisation |
||||
|
At 1 January 2024 |
|
- |
|
|
|
Amortisation charge |
- |
|
|
|
|
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2024 |
- |
|
|
|
|
At 31 December 2023 |
- |
|
|
|
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Tangible assets |
|
Land and buildings |
Office equipment |
Motor vehicles |
Total |
|
|
Cost or valuation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Additions |
- |
|
|
|
|
Disposals |
- |
- |
( |
( |
|
At 31 December 2024 |
|
|
|
|
|
Depreciation |
||||
|
At 1 January 2024 |
|
|
|
|
|
Charge for the year |
|
|
|
|
|
Eliminated on disposal |
- |
- |
( |
( |
|
At 31 December 2024 |
|
|
|
|
|
Carrying amount |
||||
|
At 31 December 2024 |
|
|
|
|
|
At 31 December 2023 |
|
|
|
|
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
|
2024 |
2023 |
|
|
Motor vehicles |
- |
875,844 |
|
Investment properties |
|
2024 |
|
|
At 1 January 2021 |
|
|
At 31 December 2021 |
|
Freehold investment property of £320,000 (2023 - £320,000) is included within investment properties.
The investment property was valued in July 2024 by David James and Partners Limited, who are independent of the company and have experience of valuing similar properties. If accounted for under the historic cost convention, the properties would be measured at £120,000.
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Stocks |
|
2024 |
2023 |
|
|
Motor vehicles |
|
|
|
Debtors |
|
2024 |
2023 |
|
|
Trade debtors |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
|
|
The total impairment charge for the year in respect of doubtful trade debtors was £647,367 (2023 - £475,791).
|
Cash and cash equivalents |
|
2024 |
2023 |
|
|
Cash on hand |
|
|
|
Cash at bank |
|
|
|
|
|
|
Creditors |
|
Note |
2024 |
2023 |
|
|
Due within one year |
|||
|
Loans and borrowings |
|
|
|
|
Trade creditors |
|
|
|
|
Social security and other taxes |
|
|
|
|
Outstanding defined contribution pension costs |
- |
|
|
|
Other creditors |
|
|
|
|
Accruals |
|
|
|
|
Corporation tax |
557,571 |
234,405 |
|
|
|
|
||
|
Due after one year |
|||
|
Loans and borrowings |
|
|
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Loans and borrowings |
Non-current loans and borrowings
|
2024 |
2023 |
|
|
Bank borrowings |
|
|
|
Hire purchase contracts |
- |
|
|
|
|
|
Current loans and borrowings
|
2024 |
2023 |
|
|
Bank borrowings |
|
|
|
Hire purchase contracts |
- |
|
|
|
|
|
Bank borrowings
|
These bank borrowings are guaranteed by government under the Business Interruption Loan Scheme and is secured against the assets of the company under a fixed and floating charge. |
Hire purchase
Hire purchase liabilities included within current and non-current creditors totalling £Nil (2023 - £715,792) were secured on the motor vehicles to which they relate. Interest was payable at a rate of 2.6% over NatWest Base Rate percentage, on the capital amount.
|
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 £
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Deferred tax |
|
Deferred tax |
Total |
|
|
At 1 January 2024 |
|
|
|
Additional provisions |
( |
( |
|
At 31 December 2024 |
|
|
|
|
||
|
Pension 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 £
Contributions totalling £Nil (2023 - £
|
Share capital |
Allotted, called up and fully paid shares
|
2024 |
2023 |
|||
|
No. |
£ |
No. |
£ |
|
|
|
|
12,000 |
|
12,000 |
|
|
|
3,000 |
|
3,000 |
|
|
|
|
|
|
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
|
Net debt |
|
At 1 January 2024 |
Cash flow |
Other non cash changes |
At 31 December 2024 |
|
|
£ |
£ |
£ |
£ |
|
|
Cash at bank and on hand |
1,274,884 |
(497,913) |
- |
776,971 |
|
Cash and cash equivalents |
1,274,884 |
(497,913) |
- |
776,971 |
|
Finance leases due within one year |
(444,329) |
474,333 |
(30,004) |
- |
|
Finance leases due after one year |
(271,462) |
271,462 |
- |
- |
|
Short term borrowings |
(150,000) |
180,003 |
(180,003) |
(150,000) |
|
Long term borrowings |
(337,500) |
150,000 |
(187,500) |
|
|
Net debt |
71,593 |
427,885 |
(60,007) |
439,471 |
|
Related party transactions |
|
Transactions with directors |
|
2024 |
At 1 January 2024 |
Advances to director |
Repayments by director |
At 31 December 2024 |
|
Director 1 |
||||
|
Loan account |
( |
( |
|
( |
|
Director 2 |
||||
|
Loan account |
( |
( |
|
( |
|
2023 |
At 1 January 2023 |
Advances to director |
Repayments by director |
At 31 December 2023 |
|
Director 1 |
||||
|
Loan account |
( |
( |
|
( |
|
Director 2 |
||||
|
Loan account |
|
( |
|
( |
The advances were unsecured, interest free and repayable on demand.
During the year the company paid dividends of £150,000 (2023 - £150,000) to its directors.
Accident Claims Handlers Limited
Notes to the Financial Statements
Year Ended 31 December 2024
Summary of transactions with other related parties
During the year the company made purchases for goods and services of £6,000 (2023 - £21,426) from a company owned and run by a close family member of the directors. The balance due to this company at the year end was £67,264 (2022 - £67,264).