Company registration number: 03089775
COMPANY INFORMATION
CONTENTS
STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
The directors present their strategic report and the financial statements of the Company for the year ended 31 August 2025.
Principal Activity
LifeSearch helps individuals, families and businesses protect themselves against the financial effects of death, disability, illness and ill health. Our principal activity therefore remains the arrangement of regulated pure protection insurance and private health insurance, delivered through advised and non advised (online) customer journeys.
There has been no change in the principal activity during the year.
Principal Activity
LifeSearch helps individuals, families and businesses protect themselves against the financial effects of death, disability, illness and ill health. Our principal activity therefore remains the arrangement of regulated pure protection insurance and private health insurance, delivered through advised and non advised (online) customer journeys.
There has been no change in the principal activity during the year.
The company monitors and benchmarks performance against the following KPIs:
• Enquiries from families needing protection
• The quality of advice and service they receive and the number of families we protect
• Conversion rates from enquiry to sale for new families.
• The average revenue we earn per protected family
• The proportion of those protected families who stay protected for the long-term.
• Enquiries from families needing protection
• The quality of advice and service they receive and the number of families we protect
• Conversion rates from enquiry to sale for new families.
• The average revenue we earn per protected family
• The proportion of those protected families who stay protected for the long-term.
The business continues to operate in line with its long established ethos: our customers first, our people second and our profits third. This principle underpins LifeSearch’s purpose of Protecting People Properly and informs decision making across the organisation.
We invest heavily in ensuring that individuals and families who protect themselves with our help are delighted with the service they receive, as evidenced by our 5-star rating at https://uk.trustpilot .com/review/lifesearch .co.uk and market leading, low clawback rates.
Our partnerships with key UK financial services partners, consumer champions, and lifestyle brands grew strongly in breadth and volume. We report the substantial investment we made through 2025 in our online trading journeys and our customer facing systems and processes. This, combined with our data led approach to optimising journeys, has delivered strong growth and is proving a clear qualitative differentiator from our competition, enabling new levels of market leadership in online trading and hybrid advice and customer service. We believe LifeSearch offers UK brand partners one of the market’s strongest protection fulfilment propositions, characterised by quality, care and reliable delivery at scale.
Notwithstanding our data and technology led progress, our people and culture remain our greatest assets and we invest heavily in the wellbeing, skills and careers of our people. Our Private Health Insurance broking business is currently growing very quickly.
We invest heavily in ensuring that individuals and families who protect themselves with our help are delighted with the service they receive, as evidenced by our 5-star rating at https://uk.trustpilot .com/review/lifesearch .co.uk and market leading, low clawback rates.
Our partnerships with key UK financial services partners, consumer champions, and lifestyle brands grew strongly in breadth and volume. We report the substantial investment we made through 2025 in our online trading journeys and our customer facing systems and processes. This, combined with our data led approach to optimising journeys, has delivered strong growth and is proving a clear qualitative differentiator from our competition, enabling new levels of market leadership in online trading and hybrid advice and customer service. We believe LifeSearch offers UK brand partners one of the market’s strongest protection fulfilment propositions, characterised by quality, care and reliable delivery at scale.
Notwithstanding our data and technology led progress, our people and culture remain our greatest assets and we invest heavily in the wellbeing, skills and careers of our people. Our Private Health Insurance broking business is currently growing very quickly.
We report an increase in revenues from £48.6m in FY24 to £62.2m in FY25 due primarily to improved performance in advised revenue and new online revenue streams.
EBITDA (earnings before interest, tax, depreciation, amortisation and exceptional items) has increased from £3.9m in FY24 to £4.8m in FY25. This is reconciled to the Consolidated operating profit in the profit and loss account as follows:
EBITDA (earnings before interest, tax, depreciation, amortisation and exceptional items) has increased from £3.9m in FY24 to £4.8m in FY25. This is reconciled to the Consolidated operating profit in the profit and loss account as follows:
Page 1
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
[1] These costs are considered exceptional by management and as a result are adjusted in Management EBITDA.
However, they are not presented as exceptional in the consolidated profit and loss account. The majority of the cost incurred resulted from new contractual arrangements related to our new online journeys, together with legal costs from a court case against a former Appointed Representative.
Revenue is reported net of clawback. Underlying clawback trends have remained stable year on year based on our annual portfolio analysis, with a headline rate of claw of 20.6%. LifeSearch is able to recover a significant proportion of this clawback provision from its partners which reduces the net clawback provision to £8.3m at 31 August 2025. Refer to note [17] of the financial statements for further details.
However, they are not presented as exceptional in the consolidated profit and loss account. The majority of the cost incurred resulted from new contractual arrangements related to our new online journeys, together with legal costs from a court case against a former Appointed Representative.
Revenue is reported net of clawback. Underlying clawback trends have remained stable year on year based on our annual portfolio analysis, with a headline rate of claw of 20.6%. LifeSearch is able to recover a significant proportion of this clawback provision from its partners which reduces the net clawback provision to £8.3m at 31 August 2025. Refer to note [17] of the financial statements for further details.
The investment that drove higher exceptional costs in financial year 2024/2025 has now been completed. In particular, the major technology and product transformation programmes undertaken during that period have been implemented, stabilised and embedded into business as usual operations. This has materially reduced operational risk and provided a more scalable and resilient platform for future growth.
The new online journeys delivered for key partners, which required significant upfront investment in 2024 and 2025, are now fully operational and performing strongly. These enhancements have improved customer experience, strengthened partner propositions and contributed to a marked improvement in trading performance.
LifeSearch was also successful in its court case against a former Appointed Representative, brought by it in a false bid to claim commission due. The outcome allowed the business to recover a significant proportion of the legal costs previously incurred.
Trading in the first six months of the 2025/26 financial year has been above budget and significantly improved compared to the first six months of 2024/25. Revenue for the period to 28 February 2026 increased by 19% compared with the same period last year, driven by strong performance of both Advised and Online revenue. Clawback rates of 20.6% (covering a four year period) have remained stable reflecting LifeSearch’s ability to provide quality advised and non-advised (online) journeys at scale.
EBITDA before exceptionals in the first six months of 2025/2026 has been significantly above budget and, is already at the level achieved in the full 12 months of financial year 2024/25. The exceptional costs in this period are significantly reduced compared to 24/25 as are the risks that drove these. This strong performance has continued during the second half of the financial year. This has also had a very positive impact on our cash and balance sheet compared to 2024/2025. We continue to invest in our IT architecture and digital capabilities to support our partners and insurers.
Overall, the successful completion of major technology changes, resolution of historic risks and strong underlying trading performance mean the business goes forward in a significantly stronger position, with improved resilience, scalability and financial momentum.
The new online journeys delivered for key partners, which required significant upfront investment in 2024 and 2025, are now fully operational and performing strongly. These enhancements have improved customer experience, strengthened partner propositions and contributed to a marked improvement in trading performance.
LifeSearch was also successful in its court case against a former Appointed Representative, brought by it in a false bid to claim commission due. The outcome allowed the business to recover a significant proportion of the legal costs previously incurred.
Trading in the first six months of the 2025/26 financial year has been above budget and significantly improved compared to the first six months of 2024/25. Revenue for the period to 28 February 2026 increased by 19% compared with the same period last year, driven by strong performance of both Advised and Online revenue. Clawback rates of 20.6% (covering a four year period) have remained stable reflecting LifeSearch’s ability to provide quality advised and non-advised (online) journeys at scale.
EBITDA before exceptionals in the first six months of 2025/2026 has been significantly above budget and, is already at the level achieved in the full 12 months of financial year 2024/25. The exceptional costs in this period are significantly reduced compared to 24/25 as are the risks that drove these. This strong performance has continued during the second half of the financial year. This has also had a very positive impact on our cash and balance sheet compared to 2024/2025. We continue to invest in our IT architecture and digital capabilities to support our partners and insurers.
Overall, the successful completion of major technology changes, resolution of historic risks and strong underlying trading performance mean the business goes forward in a significantly stronger position, with improved resilience, scalability and financial momentum.
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STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
LifeSearch is regulated by the Financial Conduct Authority, with whom we have worked closely in the preparation of their recently completed Pure Protection Market Study. As a founder and board member of the Protection Distributors Group, our chair has been closely involved with the FCA team. We are pleased that their interim report paints a positive picture of our market overall, and recommends that the regulator’s primary focus be the increasing of the proportion of UK consumers who have proper protection policies in place. LifeSearch will play a key role in this effort. We thus, for the first time, feel that regulation is less a principal risk, but rather a positive opportunity.
A considerable proportion of our business comes from a small number of partners. The risk of losing one of these to competition has been a concern. The investment described below and in our financial reporting has developed our offering to a point where its results and quality are clearly superior, and we expect our use of AI to further reduce this risk by widening this gap between us and our competitors.
AI is more an opportunity than a risk. Our 28 years of data and recorded calls, along with our long history of ethical market leadership in the giving of good protection advice and the achieving of excellent customer outcomes allows us to do far more than use AI to reduce our processing costs. We have long known that the better informed a consumer is the more likely they are to become a LifeSearch customer. AI will serve us well therefore. We also expect it to speed up insurer underwriting and claims processing, which will enable us to do more business with them more easily.
A considerable proportion of our business comes from a small number of partners. The risk of losing one of these to competition has been a concern. The investment described below and in our financial reporting has developed our offering to a point where its results and quality are clearly superior, and we expect our use of AI to further reduce this risk by widening this gap between us and our competitors.
AI is more an opportunity than a risk. Our 28 years of data and recorded calls, along with our long history of ethical market leadership in the giving of good protection advice and the achieving of excellent customer outcomes allows us to do far more than use AI to reduce our processing costs. We have long known that the better informed a consumer is the more likely they are to become a LifeSearch customer. AI will serve us well therefore. We also expect it to speed up insurer underwriting and claims processing, which will enable us to do more business with them more easily.
The management team will continue to consider how best to refine and hone the current strategic plans, and, in so doing, assess other value adding business opportunities. All of which are and will always be focused on protecting more people, families and businesses properly.
This section serves as our section 172 statement and should be read in conjunction with the Directors' report.
Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders in their decision making. The Board of Lifesearch continue to have regard to the interests of the Group’s employees and other stakeholders, including the impact of its activities on the community, the environment and the Group’s reputation, when making decisions.
The Board will regularly review our principal stakeholders and how we engage with them through information provided by management and also by direct engagement with stakeholders themselves.
Section 172 of the Companies Act 2006 requires Directors to take into consideration the interests of stakeholders in their decision making. The Board of Lifesearch continue to have regard to the interests of the Group’s employees and other stakeholders, including the impact of its activities on the community, the environment and the Group’s reputation, when making decisions.
The Board will regularly review our principal stakeholders and how we engage with them through information provided by management and also by direct engagement with stakeholders themselves.
This report was approved by the board and signed on its behalf.
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DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2025
The directors present their report and the financial statements for the year ended 31 August 2025.
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments 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 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 to 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.
The loss for the year, after taxation, amounted to £3,569,868 (2024 - profit £1,700,623).
Details of dividends can be found in note 11.
The directors who served during the year were:
The Company will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Company has complied with all applicable legislation and regulations.
Please refer to the strategic report.
The company continues to invest in the development of its brand, its digital platforms, its technology, and its CRM systems.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
During the year, the policy of providing employees with information about the company has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the company's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas. Employees participate directly in the success of the business through the company's profit sharing schemes.
Methodologies used within the calculation
The company has used the actual KwH data from the invoices it receives and then applied the "Government conversion factors for company reporting" to calculate the CO2e content. For transport, total mileage driven by employees has been compiled from expense claims then "Government conversion factors for company reporting" have been applied.
The company has used the actual KwH data from the invoices it receives and then applied the "Government conversion factors for company reporting" to calculate the CO2e content. For transport, total mileage driven by employees has been compiled from expense claims then "Government conversion factors for company reporting" have been applied.
Intensity Ratio
Calculated as electricity and transport consumption per employee
Average 0.15 (2024: 0.20) Tonnes CO2e per employee
Calculated as electricity and transport consumption per employee
Average 0.15 (2024: 0.20) Tonnes CO2e per employee
Energy efficient action taken this year
We regularly review various methods to reduce emissions.
We regularly review various methods to reduce emissions.
The company has chosen in accordance with Section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out within the company's Strategic Report the Company's Strategic Report Information Required by Schedule 7 of the Large and Medium Sized Companies and Groups (Accounts and Reports) Regulation 2008. This includes information that would have been included in the business review and details of the principal risks and uncertainties.
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DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2025
Under section 487(2) of the Companies Act 2006, Menzies LLP will be deemed to have been reappointed as auditor 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
Page 6
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIFESEARCH LIMITED
We have audited the financial statements of Lifesearch Limited (the 'Company') for the year ended 31 August 2025, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, 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).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIFESEARCH LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIFESEARCH LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
∙The Company is subject to laws and regulations that directly affect the financial statements including financial
reporting legislation, and general regulations such as health and safety. There are no industry specific laws and regulations which would be deemed to have a significant impact on the financial statements. We assessed the extent of compliance with the appropriate laws and regulations as part of our procedures on the related financial statement items.
reporting legislation, and general regulations such as health and safety. There are no industry specific laws and regulations which would be deemed to have a significant impact on the financial statements. We assessed the extent of compliance with the appropriate laws and regulations as part of our procedures on the related financial statement items.
∙We understood how the Company is complying with the legal and regulatory frameworks by, making inquiries to
management and those responsible for legal and compliance procedures. We corroborated our inquiries through our
review of board minutes.
management and those responsible for legal and compliance procedures. We corroborated our inquiries through our
review of board minutes.
∙The engagement partner assessed whether the engagement team collectively had the appropriate competence and
capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any
issues in this area.
capabilities to identify or recognize non-compliance with laws and regulations. The assessment did not identify any
issues in this area.
∙We assessed the susceptibility of the Company financial statements to material misstatement, including how fraud
might occur. Audit procedures performed by the engagement team included:
might occur. Audit procedures performed by the engagement team included:
°Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;
°Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;
°Challenging assumptions and judgments made by management in its significant accounting estimates; and
°Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
∙As a result of the above procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud and identified the greatest potential for fraud in the following areas:
organisation for fraud and identified the greatest potential for fraud in the following areas:
°Posting of unusual journals and complex transactions.
°Misappropriation of funds through fraudulent purchase ledger and payroll activity.
°Manipulation of amounts subject to significant judgment or estimate.
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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditor's Report.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LIFESEARCH LIMITED (CONTINUED)
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.
for and on behalf of
Chartered Accountants
Statutory Auditor
3000a Parkway
Hampshire
PO15 7FX
28 May 2026
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STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 11
STATEMENT OF FINANCIAL POSITION
AS AT 31 AUGUST 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 13 to 28 form part of these financial statements.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Lifesearch Limited is a private company, limited by shares and incorporated and domiciled in England & Wales within the United Kingdom.
The company's principal trading address is:
11-21 Paul Street
London
EC2A 4JU
The registered office is disclosed on the company information page.
The company's principal trading address is:
11-21 Paul Street
London
EC2A 4JU
The registered office is disclosed on the company information page.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Lifesearch Holdings Limited as at 31 August 2025 and these financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Trading performance has declined in the year however management have assessed that the Company remains a going concern.
This assessment is based on the preparation of approved budgets and forecasts, and the Company's expected future trading performance. Management have considered the sensitivity of the forecasts to reasonable possible changes in assumptions and remain satisfied.
Taking this into consideration along with the expected performance over the foreseeable future, the directors consider that the Company has sufficient resources to continue operational existence for this time.
For this reason the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
This assessment is based on the preparation of approved budgets and forecasts, and the Company's expected future trading performance. Management have considered the sensitivity of the forecasts to reasonable possible changes in assumptions and remain satisfied.
Taking this into consideration along with the expected performance over the foreseeable future, the directors consider that the Company has sufficient resources to continue operational existence for this time.
For this reason the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Functional and presentation currency
Transactions and balances
Where the company acts as an agent in collecting monies and passing them through to the principal, these transactions are recorded on a net basis as required by FRS102.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following bases:
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
2.Accounting policies (continued)
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Provision is made for potential clawback of commissions paid to the company by life insurance companies under indemnity terms. These clawbacks can take place within the first 48 months of a policy if the policy lapses. The provision is based on historical analysis of clawbacks and the company's own internal arrangements to minimise clawback situations.
Whilst making the estimate of the clawback provision, the company recognises a debtor in relation to elements of the clawback that would be recoverable from third parties for commissions paid to them in relation to the transaction.
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 19
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 20
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Page 21
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
10.Taxation (continued)
There were no factors that may affect future tax charges.
Page 22
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
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Profit and loss account
The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £494,299 (2024 - £445,732).
Page 26
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
Renewal of trail commissions
Included within revenue are amounts received regarding renewal of trail commissions. These are commissions that are receivable by the Company in relation to life policies that are continued by the policy holder following the completion of the primary 48 months from the policy’s on risk date.
The ongoing, continued receipt of these amounts can only be confirmed by the occurrence, or non-occurrence, of one or more uncertain events which lay outside of the control of the company. As such it is not appropriate to recognise an amount as an asset within the accounts, however, an outline of the financial impact of these amounts is as follows;
- The average monthly receipts in the current year relating to trail commissions was £247,539.
- Using historical data, it is estimated that each year 0.50% of the policies on risk will cease.
- Using internal information, it is estimated that these policies will continue to generate revenue for over 20 years.
Legal settlement
In January 2026, a judgement was made in the favour of Lifesearch Limited in respect of a legal dispute and costs were awarded in Lifesearch Limited's favour in April 2026. As a result of this, the Company has received an inflow of economic benefits.
At the reporting date, the result of the case was not yet known and there had been no receipt of benefits. Accordingly, no asset has been recognised in the financial statements. The related income will be recognised when receipt becomes virtually certain.
Included within revenue are amounts received regarding renewal of trail commissions. These are commissions that are receivable by the Company in relation to life policies that are continued by the policy holder following the completion of the primary 48 months from the policy’s on risk date.
The ongoing, continued receipt of these amounts can only be confirmed by the occurrence, or non-occurrence, of one or more uncertain events which lay outside of the control of the company. As such it is not appropriate to recognise an amount as an asset within the accounts, however, an outline of the financial impact of these amounts is as follows;
- The average monthly receipts in the current year relating to trail commissions was £247,539.
- Using historical data, it is estimated that each year 0.50% of the policies on risk will cease.
- Using internal information, it is estimated that these policies will continue to generate revenue for over 20 years.
Legal settlement
In January 2026, a judgement was made in the favour of Lifesearch Limited in respect of a legal dispute and costs were awarded in Lifesearch Limited's favour in April 2026. As a result of this, the Company has received an inflow of economic benefits.
At the reporting date, the result of the case was not yet known and there had been no receipt of benefits. Accordingly, no asset has been recognised in the financial statements. The related income will be recognised when receipt becomes virtually certain.
Page 27
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2025
The Company is a wholly owned subsidiary of Lifesearch Holdings Limited whose registered office is 3000a, Parkway, Whiteley, Hampshire, PO15 7FX.
The smallest and largest company which prepares consolidated accounts in which these figures are included is Lifesearch Holdings Limited.
The smallest and largest company which prepares consolidated accounts in which these figures are included is Lifesearch Holdings Limited.
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