The Claims Compensation Group Ltd Accounts






The Claims Compensation Group Ltd

	Company No. 13540764
		Directors' Report and Unaudited Accounts
		30 June 2025




							Pages

Company Information							1
Directors' Report							2
Profit and Loss Account							3
Statement of Comprehensive Income							4
Statement of Changes in Equity							5
Balance Sheet							6
Notes to the Accounts							7 to 18
Detailed Profit and Loss Account							19 to 20

Directors




A. Thornhill
E. Trew








































Registered Office

Unit E2
The Point Office Park
Weaver Road
Lincoln
LN1 2LS

Accountants

Go Accountancy & Outsourcing Ltd.
Unit E2 The Point
Weaver Road

Lincoln
LN6 3QN

for the year ended 30 June 2025

	2025	2024
	£	£
Turnover	1,100,491	10,833

Cost of Sales	(4,771,631)	(25,827)

Gross loss	(3,671,140)	(14,994)



Administrative expenses	(1,185,908)	(394,126)



Operating loss	(4,857,048)	(409,120)



Other interest receivable	2,389	27



Interest payable and similar charges	(658,349)	(7,536)



Loss on ordinary activities before taxation	(5,513,008)	(416,629)

Taxation	-	-

Loss for the financial year after taxation	(5,513,008)	(416,629)

STATEMENT OF COMPREHENSIVE INCOME

for the year ended 30 June 2025

	2025	2024

	£	£
Loss for the financial year after taxation	(5,513,008)	(416,629)







Total comprehensive income for the period	(5,513,008)	(416,629)

for the year ended 30 June 2025

		Share Capital	Share Premium	Retained earnings	Total equity
		£	£	£	£
	At 1 July 2023	100,000	50,159	(2,279,703)	(2,129,544)
	Shares issued during the period	-	36,000		36,000



	Loss for the period			(416,629)	(416,629)







	At 30 June 2024 and 1 July 2024	100,000	86,159	(2,696,332)	(2,510,173)
	Shares issued during the period	-	4,000		4,000



	Loss for the period			(5,513,008)	(5,513,008)


	At 30 June 2025	100,000	90,159	(8,209,340)	(8,019,181)

at	30 June 2025

Company No.		13540764	Notes	2025	2024
				£	£
Fixed assets
	Intangible assets		5	636,755	836,791
	Tangible assets		6	84,038	29,266


				720,793	866,057
Current assets
	Stocks		7	75,019,684	74,722,920
	Debtors		8	4,205,554	4,033,292

	Cash at bank and in hand			35,113	80
				79,260,351	78,756,292
Creditors: Amount falling due within one year			9	(14,080,641)	(2,036,077)
Net current assets				65,179,710	76,720,215
Total assets less current liabilities				65,900,503	77,586,272
Creditors: Amounts falling due after more than one year			10	(73,919,684)	(80,096,445)



Net liabilities				(8,019,181)	(2,510,173)

Capital and reserves
	Called up share capital			100,000	100,000
	Share premium account		12	90,159	86,159


	Profit and loss account		12	(8,209,340)	(2,696,332)

Total equity				(8,019,181)	(2,510,173)



These accounts have been prepared in accordance with the special provisions applicable to companies subject to the small companies regime of the Companies Act 2006.

For the year ended 30 June 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of accounts.



Approved by the board on 03 December 2025 and signed on its behalf by:
E. Trew
Director
03 December 2025

for the year ended 30 June 2025

General information

The Claims Compensation Group Ltd is a private company limited by shares and incorporated in England and Wales.

Its registered number is: 13540764

Its registered office is:

Unit E2

The Point Office Park

Weaver Road

Lincoln

LN1 2LS

The accounts have been prepared in accordance with FRS 102 Section 1A - The Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006.

Going concern

The directors have considered forecast cash flows, litigation pipeline, funding arrangements and stress testing and consider the company able to meet liabilities as they fall due.

Accounting policies

Prior Period Error and Restatement

During the preparation of the financial statements, the directors identified a number of errors in the application of FRS102 affecting the financial statements for the years ending December 21, December 22, December 23 and June 24. These errors relate to the incorrect application of accounting policies in relation to revenue recognition and associated costs. During the year, management identified a prior period error relating to the incorrect application of FRS 102 in previous years. The error concerned:

1) Revenue recognition for contingent matters
2) WIP valuation
3) Classification of financial instruments
4) Omission of liabilities

In accordance with FRS 102 Section 10, comparative amounts have been retrospectively restated. Details of the restatement are presented in Prior Period Adjustments.

Revenue Recognition

Revenue arises from the provision of legal services and is recognised when:

• The firm has performed the contracted work
• The amount can be measured reliably
• It is probable that economic benefits will flow to the firm

Time-cost matters: Recognised based on recoverable chargeable time and expected recoverability.

Fixed-fee matters: Recognised using the stage-of-completion method.

Contingent fee matters: Revenue is recognised only when success is probable and the amount can be measured reliably. Until then:

• No revenue is recognised
• No WIP asset is recognised
• Costs are expensed to the Profit and Loss Account

Work in Progress (WIP)

WIP is valued at the lower of cost and net realisable value (NRV).

Non-contingent matters: Recognised based on recoverable time and attributable costs.

Contingent matters: Recognised only when success is probable and value can be reliably measured. Otherwise no WIP asset is recognised.

WIP provisions: Provisions are made for:
• Expected assessment reductions
• Adverse case developments
• Client disputes
• Proportionality issues
• Anticipated write-offs

Deferred Income

Deferred income represents amounts billed in advance of work performed, including retainer fees, uncompleted fixed-fee matters and interim bills covering future services.

Disbursements

Acting as agent: Court fees, medical reports and other disbursements incurred as agent are excluded from revenue and costs and recognised within trade debtors.

Acting as principal: Where the firm bears the risk of non-recovery, the costs are treated as expenses unless recovery is probable.

Irrecoverable disbursements are written off.

Litigation Funding and ATE Insurance

Third-party litigation funding is recognised as a liability when drawn. ATE insurance premiums are recognised when payable under policy terms. ATE recoveries are recognised only when receipt is probable.

Contingent ATE recoveries are disclosed but not recognised as assets.

Intangible fixed assets

Intangible fixed assets are carried at cost less accumulated amortisation and impairment losses.

Litigation Funding and ATE Insurance

Financial Instruments

Basic financial assets include trade debtors, accrued income and recoverable disbursements, recognised initially at transaction price and subsequently at amortised cost, less impairment.

Basic financial liabilities include trade creditors, accruals, litigation funding liabilities and redeemable preference shares (where classified as liabilities).

Provisions and Contingent Liabilities

A provision is recognised when:

• A present obligation exists
• Settlement is probable
• The amount can be reliably estimated

Contingent liabilities and contingent assets are disclosed but not recognised unless the inflow/outflow is probable.

Redeemable Preference Shares

Redeemable preference shares are classified in accordance with their contractual substance:

Classified as liabilities: Where redemption is mandatory, the shares are presented as financial liabilities and measured at amortised cost. Dividends are recognised as finance charges.

Classified as equity: Where redemption is at the company's discretion, shares are included in equity and dividends are recognised as appropriations.

A description of the issued redeemable preference shares is given in Note 18.

Prior Period Adjustments

During the preparation of the financial statements, the directors identified a number of errors in the application of FRS102 affecting the financial statements for the years ended December 21, December 22, December 23 and June 24. These errors relate to the incorrect application of accounting policies in respect of revenue recognition and associated costs.

In accordance with FRS102 section 10, the comparative figures for the year ended December 24 have been restated to reflect the corrected accounts.

The cumulative effect of correcting these errors has been recognised by adjusting the opening balance of retained earnings at 1 July 24 by £4,341,380.

The comparative figures for 2024 included in these financial statements already reflect the restatement, no further prior period adjustment is required in the current year financial statements.

The adjustments have no impact on the profit for the year ended 30 June 25, or company cashflows.

Opening balance as at 1 Jan 24 previously stated

(6,621,083)

Prior period adjustment

4,341,380

Opening balance restated

(2,279,703)

The accounting year was shortened from December 24 to Jun 24. The statement of changes to equity shows opening balances at Jul 23 – this is not correct. It should be 1 Jan 24.

Tangible fixed assets and depreciation

Tangible fixed assets held for the company's own use are stated at cost less accumulated depreciation and accumulated impairment losses.

At each balance sheet date, the company reviews the carrying amount of its tangible fixed assets to determine whether there is any indication that any items have suffered an impairment loss. If any such indication exists, the recoverable amount of an asset is estimated in order to determine the extent of the impairment loss.

Depreciation is provided at the following annual rates in order to write off the cost or valuation less the estimated residual value of each asset over its estimated useful life:

Leasehold land and buildings

20% Straight Line

Furniture, fittings and equipment

25% Straight Line

Research and development costs

Expenditure on research and development is written off in the year it is incurred unless it meets the criteria to allow it to be capitalised. Costs of research are always written off in the year in which they are incurred. Where development costs are recognised as an asset, they are amortised over the period expected to benefit from them. Amortisation of the capitalised costs begins once the developed product comes into use, typically at rate of 33.33% straight line.

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the profit and loss account because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period.

Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible timing differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.
Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.

Freehold investment property

Investment properties are revalued annually and any surplus or deficit is dealt with through the profit and loss account.

No depreciation is provided in respect of investment properties.

Investments

Unlisted investments (except those held as subsidiaries, associates or joint ventures) are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, any changes in fair value are recognised in profit and loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs, which comprise direct production costs, are based on the method most appropriate to the type of inventory class, but usually on a first-in-first-out basis. Overheads are charged to profit or loss as incurred. Net realisable value is based on the estimated selling price less any estimated completion or selling costs.

When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs.

Work in progress is reflected in the accounts on a contract by contract basis by recording revenue and related costs as contract activity progresses.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts.

Trade and other creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Foreign currencies

The functional and presentational currency of the company is Sterling. The accounts are rounded to the nearest pound.

Transactions in currencies, other than the functional currency of the Company, are recorded at the rate of exchange on the date the transaction occurred. Monetary items denominated in other currencies are translated at the rate prevailing at the end of the reporting period. All differences are taken to the profit and loss account. Non-monetary items that are measured at historic cost in a foreign currency are not retranslated.

Leased assets

Where the company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease.

Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases.

Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the balance sheet date as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs (see the accounting policy above).

Assets held under finance leases are depreciated in the same way as owned assets.

Operating lease payments are recognised as an expense on a straight-line basis over the lease term.

In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis.

Provisions

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the profit and loss account in the year that the Company becomes aware of the obligation, and are measured at the best estimate at balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the balance sheet.

3	Items of income or expenses of exceptional size or incidence
			2025	2024
			£	£
		Time Cost matters	-	-
		Fixed Fee matters	-	-
		Contingent matters recognised	-	-
		Other legal services	-	-

4	Employees
			2025	2024
			Number	Number
		The average monthly number of employees (including directors) during the year was:	5	10

5	Intangible fixed assets
			Other	Total
			£	£
		Cost
		At 1 July 2024	1,000,182	1,000,182


		At 30 June 2025	1,000,182	1,000,182
		Amortisation and impairment
		At 1 July 2024	163,391	163,391
		Charge for the year	200,036	200,036


		At 30 June 2025	363,427	363,427
		Net book values
		At 30 June 2025	636,755	636,755
		At 30 June 2024	836,791	836,791

6	Tangible fixed assets
			Land and buildings	Fixtures, fittings and equipment	Total
			£	£	£
		Cost or revaluation
		At 1 July 2024	-	40,151	40,151
		Additions	91,301	4,566	95,867



		At 30 June 2025	91,301	44,717	136,018
		Depreciation
		At 1 July 2024	-	10,885	10,885
		Charge for the year	16,739	24,356	41,095



		At 30 June 2025	16,739	35,241	51,980
		Net book values
		At 30 June 2025	74,562	9,476	84,038
		At 30 June 2024	-	29,266	29,266

7	Stocks
			2025	2024
			£	£

		Work in progress	75,019,684	74,722,920

			75,019,684	74,722,920

8	Debtors
			2025	2024
			£	£
		Trade debtors	(254)	420





		Other debtors	27,598	12,858
		Prepayments and accrued income	4,178,210	4,020,014
			4,205,554	4,033,292

		Amounts included within Other debtors that fall due after more than one year	5,000

9	Creditors:
		amounts falling due within one year
			2025	2024
			£	£
		Non-equity preference shares	10,660,000	-
		Bank loans and overdrafts	-	719
		Other loans	863,110	-
		Obligations under finance lease and hire purchase contracts	71,445	-
		Trade creditors	1,802,168	1,339,769

		Taxes and social security	(96,388)	(154,511)
		Loans from directors	-	635,536
		Other creditors	136,300	136,300
		Accruals and deferred income	644,006	78,264
			14,080,641	2,036,077

10	Creditors:
		amounts falling due after more than one year
			2025	2024
			£	£
		Non-equity preference shares	-	5,260,000





		Other creditors	-	113,524
		Accruals and deferred income	73,919,684	74,722,921
			73,919,684	80,096,445

Share Capital

10,000,000 Ordinary Shares @ 0.01p

Share Capital of £100,000

Reserves

Share premium account - includes any premiums received on issue of share capital. Any transaction costs associated with the issuing of shares are deducted from share premium.

Profit and loss account - includes all current and prior period retained profits and losses.

Contingent Assets/Liabilities

• Potential success fees on contingent litigation not yet probable
• Expected ATE recoveries not yet meeting recognition criteria

• Ongoing claims where the firm may bear a financial obligation
• Disbursements or ATE premiums potentially irrecoverable
• Uncertain contingent success fees where inflow is not probable

Post balance sheet events

FUNDING AGREEMENTS ENTERED INTO AFTER YEAR END:

The company has secured ATE Insurance and under the terms of the policy we are able to recoup all our own costs as well in the event of losing our case the other sides costs. Therefore, in view we will recover all our own internal costs we have included as the work was done in the period ending 30th June 2025 the sum of £1.1 million as revenue.

In addition, the company is in the final stages of securing litigation funding which will allow us to turn some of our WIP into revenue

PREFERENCE SHARES:

Although the preference shares are presented as a financial liability due to the fixed redemption date of 31 January 2026, redemption is restricted by the Companies Act 2006 and can only occur out of distributable profits or other permitted other sources i.e. issue of new shares. As at the reporting date the Company does not envisage having sufficient distributable profits, and the shares will remain outstanding.

The failure to redeem on 31 Jan 2026 does NOT create an enforceable debt and the holders cannot wind up the company purely for non-redemption.