SBS Insurance Services Limited 03986368 false 2025-05-01 2026-04-30 2026-04-30 2026-04-30 The principal activity of the company is providing a nationwide claims handling service to Insurance Companies on Household Insurance Contents claims. This principally involves claims on Flooring, Electrical, Jewellery and Leisure Goods in the home. Most of the business is UK based, but the company is now deriving some business out of the European Market. This is a growing area of opportunity for the business. 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Registration number: 03986368

SBS Insurance Services Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 30 April 2026

 

SBS Insurance Services Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Statement of Directors' Responsibilities

6

Independent Auditor's Report

7 to 10

Consolidated Profit and Loss Account

11

Consolidated Statement of Comprehensive Income

12

Consolidated Balance Sheet

13

Balance Sheet

14

Consolidated Statement of Changes in Equity

15

Statement of Changes in Equity

16

Consolidated Statement of Cash Flows

17

Notes to the Financial Statements

18 to 35

 

SBS Insurance Services Limited

Company Information

Directors

T Rees

P Fairbrass

S Crowley

O Davies

R Rushall

Company secretary

Clever Management Solutions Limited

Registered office

Chase House
Park Plaza
Heath Hayes
Cannock
WS12 2DD

Solicitors

Knights LLP
Midland House
West Way
Botley
Oxford
OX2 0PH

Auditors

Johnson Smith & Co Ltd
Centurion House
London Road
Staines-Upon-Thames
Surrey
TW18 4AX

 

SBS Insurance Services Limited

Strategic Report for the Year Ended 30 April 2026

The directors present their strategic report for the year ended 30 April 2026.

Fair review of the business

SBS Insurance Services Limited (“SBS”) and its subsidiaries React Insurance Services Ltd (“React”) and Direct Lawn and Garden Ltd (“DLG”) - together, “the Group”, provides services including claims handling, outsourcing, software development, consulting and digital solutions to Insurance Organisations.

Key Financial and Non-Financial Performance Indicators

2026

2025

Turnover

£51,647,185

£42,532,787

Gross Profit

£7,391,956

£7,018,503

EBITDA

£1,232,914

£848,677

Financial Review

Trading Performance

Turnover for the year grew to £51.6m (2025: £42.5m), a strong increase reflecting the strength of the SBS service proposition and the Group's ability to win new contract awards in a competitive market.

Gross profit rose in line with revenue to £7.4m (2025: £7.0m), with the Group maintaining a consistent gross margin through disciplined pricing and rigorous cost control.

Profitability and Investment

EBITDA increased to £1.2m (2025: £0.8m), a clear improvement in underlying trading performance. This was achieved alongside a deliberate, strategic decision to increase investment in the Group's operational infrastructure including systems enhancements and continued development of the Group's proprietary AI capabilities. The Board views this investment as essential to strengthening operational resilience, sharpening service delivery, and building the platform for sustained growth. The Group is confident that this investment phase will continue to deliver improving returns as new systems and services scale.

Non-Recurring Items

During the financial year, the Company recognised an impairment charge of £30,000 in respect of its investment in DLG. DLG was subsequently dissolved following the year end, and the Directors considered that the investment was no longer recoverable. Accordingly, the full carrying value of the investment was impaired. The Directors consider this to be a non-recurring item and not reflective of the Company's underlying ongoing operating performance.

 

SBS Insurance Services Limited

Strategic Report for the Year Ended 30 April 2026

Operational Highlights

The Group is executing a clear strategic pivot towards technology-led, AI-enabled services, and the proportion of the business delivered through Software as a Service (SaaS) is steadily increasing. During the year, SBS launched several new proprietary SaaS platforms for the Insurance Industry, including advanced self-serve solutions for Motor, Claims, designed to enhance the customer journey and improve efficiency for clients.
Alongside this, the Group has continued to invest in and expand its suite of AI-driven claims tools, including AI-based claim evaluation and natural language processing for claim interpretation, reducing manual handling time and improving consistency of outcomes for policyholders. The Directors see this as a multi-year investment programme: as adoption of these AI and SaaS tools grows, the Group expects the associated efficiency gains and scalability to become an increasing driver of margin and growth. The Board remains committed to embracing AI and automation as core to the Group's competitive positioning within the insurance outsourcing sector.

Future Outlook

The Group observed a distinct upturn in claims volumes during the first quarter of 2026/27, and the outlook for 2027 is positive. Growth will be driven by continued investment in AI and SaaS capability, and by broadening the Group's client base across the insurance outsourcing sector, building on the momentum established during the year.

Approved and authorised by the Board on 25 August 2026 and signed on its behalf by:
 

.........................................
T Rees
Director

 

SBS Insurance Services Limited

Directors' Report for the Year Ended 30 April 2026

The directors present their report and the consolidated financial statements for the year ended 30 April 2025.

Principal activity

The Group has performed well during the year ended 30 April 2026 and confidently looks forward to continued growth in the coming year. The principal activity of the Group in the year under review was the provision of claims handling, outsourcing, consulting and digital solutions to Insurance Organisations.

Dividends

The total distribution of dividends for the year ended 30 April 2026 were £650,000 (2025: £520,000).

Events since the end of the year

Information relating to events since the end of the year is given in the notes to the financial statements.

Directors of the group

The directors who held office during the year were as follows:

T Rees

P Fairbrass

S Crowley

O Davies

R Rushall

Financial instruments

The Group has no financial instruments apart from cash, investments, trade debtors and trade creditors, all arising in the normal course of business. The main financial risk the Group is exposed include liquidity risk, cash flow risk and credit risk. These risks are managed by ensuring sufficient liquidity is available to meet foreseeable needs.

Donations and expenditure

During the year the Group made a charitable donation of £1,015 (2025: £2,756).

Research and development

Expenditure on research is written off in the profit and loss account of the year and development is capitalised and then amortised in the years ahead.

Going concern

The directors acknowledge the Financial Reporting Council's Going Concern Guidelines and believe that the Group is well placed to manage its business risks successfully. Having reviewed the initial financial scenario planning for the year 2026/27 and beyond that has been carried out, the directors are satisfied that, at the time of approving the financial statements, there is not a material uncertainty that may cast significant doubt upon the Group's ability to continue as a going concern, and so it is appropriate to adopt the going concern basis in preparing the financial statements.

 

SBS Insurance Services Limited

Directors' Report for the Year Ended 30 April 2026

Disclosure of information to the auditor

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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved by the Board on 25 August 2026 and signed on its behalf by:

.........................................
T Rees
Director

   
     
 

SBS Insurance Services 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 group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

SBS Insurance Services Limited

Independent Auditor's Report to the Members of SBS Insurance Services Limited

Opinion

We have audited the financial statements of SBS Insurance Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2026, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 group's and the parent company's affairs as at 30 April 2026 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's 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.

 

SBS Insurance Services Limited

Independent Auditor's Report to the Members of SBS Insurance Services 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:

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

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

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

certain disclosures of 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' Responsibilitiesset out on page 6, 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.

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

 

SBS Insurance Services Limited

Independent Auditor's Report to the Members of SBS Insurance Services Limited

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism through the audit and we also;

- Identify and assess the risks of material misstatements of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk pf not detecting a material misstatement resulting from fraud is higher than for one resulting from error. As fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of the internal control.

- Obtain an understanding of the internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- Conclude on the appropriateness of director's use of going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern and report appropriate disclosures in the accounts or in our audit report.

- Evaluate the appropriate presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieve fair presentation.

- Evaluated the conduct of operations in relation to laws and other regulations including but not limited to, intellectual property, commercial trading, data protection, money laundering, and employment. Our evaluation took account of whether any non-compliance would have a material effect on the financial statements.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

 

SBS Insurance Services Limited

Independent Auditor's Report to the Members of SBS Insurance Services Limited

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.

......................................
Maurice Brooks (Senior Statutory Auditor)
For and on behalf of Johnson Smith & Co Ltd
Chartered Accountants and Statutory Auditors
Centurion House
London Road
Staines-Upon-Thames
Surrey
TW18 4AX

25 August 2026

 

SBS Insurance Services Limited

Consolidated Profit and Loss Account for the Year Ended 30 April 2026

Note

2026
£

2025
£

Turnover

3

51,647,185

42,532,787

Cost of sales

 

(44,255,229)

(35,514,284)

Gross profit

 

7,391,956

7,018,503

Administrative expenses

 

(6,580,604)

(6,598,976)

Operating profit

4

811,352

419,527

Other interest receivable and similar income

5

370

6,098

Interest payable and similar expenses

6

-

(29,466)

   

370

(23,368)

Profit before tax

 

811,722

396,159

Tax on profit

10

(222,637)

(140,778)

Profit for the financial year

 

589,085

255,381

Profit/(loss) attributable to:

 

Owners of the company

 

589,085

255,381

The group has no recognised gains or losses for the year other than the results above.

 

SBS Insurance Services Limited

Consolidated Statement of Comprehensive Income for the Year Ended 30 April 2026

2026
£

2025
£

Profit for the year

589,085

255,381

Total comprehensive income for the year

589,085

255,381

Total comprehensive income attributable to:

Owners of the company

589,085

255,381

 

SBS Insurance Services Limited

(Registration number: 03986368)
Consolidated Balance Sheet as at 30 April 2026

Note

2026
£

2025
£

Fixed assets

 

Intangible assets

11

990,097

1,315,073

Tangible assets

12

101,574

178,141

 

1,091,671

1,493,214

Current assets

 

Stocks

14

936,359

888,495

Debtors

15

3,445,882

2,480,255

Cash at bank and in hand

 

455,581

498,233

 

4,837,822

3,866,983

Creditors: Amounts falling due within one year

17

(4,267,175)

(3,625,269)

Net current assets

 

570,647

241,714

Total assets less current liabilities

 

1,662,318

1,734,928

Provisions for liabilities

18

(17,987)

(29,682)

Net assets

 

1,644,331

1,705,246

Capital and reserves

 

Called up share capital

20

25,000

25,000

Capital redemption reserve

625

625

Retained earnings

1,618,706

1,679,621

Equity attributable to owners of the company

 

1,644,331

1,705,246

Shareholders' funds

 

1,644,331

1,705,246

Approved and authorised by the Board on 25 August 2026 and signed on its behalf by:
 

.........................................
T Rees
Director

   
     
 

SBS Insurance Services Limited

(Registration number: 03986368)
Balance Sheet as at 30 April 2026

Note

2026
£

2025
£

Fixed assets

 

Intangible assets

11

994,148

1,319,124

Tangible assets

12

101,575

178,142

Investments

13

100

30,100

 

1,095,823

1,527,366

Current assets

 

Stocks

14

920,229

870,013

Debtors

15

3,774,568

2,836,566

Cash at bank and in hand

 

446,604

484,431

 

5,141,401

4,191,010

Creditors: Amounts falling due within one year

17

(4,241,928)

(3,604,935)

Net current assets

 

899,473

586,075

Total assets less current liabilities

 

1,995,296

2,113,441

Provisions for liabilities

18

(17,987)

(29,682)

Net assets

 

1,977,309

2,083,759

Capital and reserves

 

Called up share capital

20

25,000

25,000

Capital redemption reserve

625

625

Retained earnings

1,951,684

2,058,134

Shareholders' funds

 

1,977,309

2,083,759

The company made a profit after tax for the financial year of £543,550 (2025 - profit of £249,767).

Approved and authorised by the Board on 25 August 2026 and signed on its behalf by:
 

.........................................
T Rees
Director

   
     
 

SBS Insurance Services Limited

Consolidated Statement of Changes in Equity for the Year Ended 30 April 2026
Equity attributable to the parent company

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 May 2025

25,000

625

1,679,621

1,705,246

Profit for the year

-

-

589,085

589,085

Dividends

-

-

(650,000)

(650,000)

At 30 April 2026

25,000

625

1,618,706

1,644,331

Total equity
£

At 1 May 2025

1,705,246

Profit for the year

589,085

Dividends

(650,000)

At 30 April 2026

1,644,331

 

SBS Insurance Services Limited

Statement of Changes in Equity for the Year Ended 30 April 2026

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 May 2025

25,000

625

2,058,134

2,083,759

Profit for the year

-

-

543,550

543,550

Dividends

-

-

(650,000)

(650,000)

At 30 April 2026

25,000

625

1,951,684

1,977,309

Share capital
£

Capital redemption reserve
£

Retained earnings
£

Total
£

At 1 May 2024

25,000

625

2,328,367

2,353,992

Profit for the year

-

-

249,767

249,767

Dividends

-

-

(520,000)

(520,000)

At 30 April 2025

25,000

625

2,058,134

2,083,759

 

SBS Insurance Services Limited

Consolidated Statement of Cash Flows for the Year Ended 30 April 2026

Note

2026
£

2025
£

Cash flows from operating activities

Profit for the year

 

589,085

255,381

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

421,562

429,150

Finance income

5

(370)

(6,098)

Finance costs

6

-

29,466

Income tax expense

10

222,637

140,778

 

1,232,914

848,677

Working capital adjustments

 

(Increase)/decrease in stocks

14

(47,864)

202,175

(Increase)/decrease in trade debtors

15

(965,627)

290,761

Increase/(decrease) in trade creditors

17

642,843

(786,627)

Cash generated from operations

 

862,266

554,986

Income taxes paid

10

(235,269)

(380,608)

Net cash flow from operating activities

 

626,997

174,378

Cash flows from investing activities

 

Interest received

370

6,098

Acquisitions of tangible assets

(6,919)

(20,449)

Proceeds from sale of tangible assets

 

-

295

Acquisition of intangible assets

11

(13,100)

(360,484)

Net cash flows from investing activities

 

(19,649)

(374,540)

Cash flows from financing activities

 

Interest paid

6

-

(29,466)

Dividends paid

(650,000)

(520,000)

Net cash flows from financing activities

 

(650,000)

(549,466)

Net decrease in cash and cash equivalents

 

(42,652)

(749,628)

Cash and cash equivalents at 1 May

 

498,233

1,247,861

Cash and cash equivalents at 30 April

 

455,581

498,233

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
Chase House
Park Plaza
Heath Hayes
Cannock
WS12 2DD

These financial statements were authorised for issue by the Board on 25 August 2026.

Principal activity
The principal activity of the company in the year under review was that of providing a nationwide claims handling service to Insurance Companies on Household Insurance Contents claims. This principally involves claims on Flooring, Electrical, Jewellery and Leisure Goods in the home.

Statement of compliance
The Company and Group's financial statements have been prepared in compliance with FRS 102 as it applies to the financial statements of the Company and the Group for the year ended 30 April 2026.

2

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.

The financial statements are presented in Sterling (£) which is the functional currency of the company. The amounts in financial statements are rounded up to the nearest pound.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

Basis of consolidation

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.
No Profit and Loss Account is presented for the company as permitted by section 408 of the Companies Act 2006. The company made a profit after tax for the financial year of £543,550 (2025 - profit of £249,767).

The consolidated financial statements incorporate the financial statements of the Company and its subsidiary undertakings (React Insurance Services Limited and, up to the date of dissolution, Direct Lawn and Garden Limited) made up to 30 April 2026. Subsidiaries are consolidated from the date on which control is transferred to the Group and are no longer consolidated from the date control ceases. All subsidiaries have a reporting date of 30 April, coterminous with that of the Company.

Control is achieved where the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The consolidated financial statements are prepared by combining the financial statements of the Company and its subsidiary undertakings on a line-by-line basis, adding together like items of assets, liabilities, equity, income and expenses. Intra-group balances, and any unrealised income and expenses (except foreign currency transaction gains or losses arising from intra-group transactions, are eliminated in full in preparing the consolidated financial statements. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group.

As both subsidiary undertakings are wholly owned, no non-controlling interests arise in the consolidated financial statements.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.

Subsidiary exempt from audit
Direct Lawn and Garden Limited and React Insurance Services Limited, 100% subsidiaries of SBS Insurance Services Limited are claiming the exemption from audit by the virtue of section 479A of the Companies Act 2006 relating to subsidiary companies for the year ended 30 April 2026. SBS Insurance Services Limited has given guarantees under section 479C of the Companies Act 2006 in respect of the year ended 30 April 2026 for its subsidiary companies, Direct Lawn and Garden Limited and React Insurance Services Limited.

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

Going concern

The directors acknowledge the Financial Reporting Council's Going Concern Guidelines and believe that the Group is well placed to manage its business risks successfully. Having reviewed the initial financial scenario planning for the year 2026/27 and beyond that has been carried out, the directors are satisfied that, at the time of approving the financial statements, there is not a material uncertainty that may cast significant doubt upon the Group's ability to continue as a going concern, and so it is appropriate to adopt the going concern basis in preparing the financial statements.

Revenue recognition

Turnover 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 group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.

The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.

Tax

The tax expense for the period comprises current and deferred 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 income 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 group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumlated amortisation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

Depreciation

Depreciation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful economic life of that asset:

Asset class

Depreciation method and rate

Plant & Machinery

25% of cost on a straight-line basis

Fixtures & Fittings

25% of cost on a straight-line basis

Computer equipment

25% of cost on a straight-line basis

Improvements to property

25% of cost on a straight-line basis

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Amortisation of goodwill is calculated so as to write off the cost, less its estimated residual value, over the useful economic life as follows:

Goodwill - Straight-line basis over 7 years

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any 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:

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

Asset class

Amortisation method and rate

Computer software

25% & 20% of cost on a straight-line basis

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Fixed asset investments
Investments in unquoted securities are carried at fair value unless such value cannot be reliably measured, in which case the investments are carried at cost.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the initial terms of the receivables.

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.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. 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.
 

Work in progress
Work in progress is valued on the basis of direct cost plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.

Research and development
Expenditure on research is written off in the profit and loss account of the year and development is capitalised and then amortised in the years ahead.

Revenue recognition
Income is recognised when the significant risks and rewards of ownership of the goods and services are transferred to the customer and receipt of payment can be assured.

Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual agreement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
 

Loan notes
Loan notes which are basic financial instruments are initially recorded at the present value of future payments discounted at a market rate of interest for a similar loan. Subsequently, they are measured at amortised cost using the effective interest method. Loan notes that are receivable within one year are not discounted.

Provisions
A provision is recognised where the company has a legal or constructive obligation as a result of past event and it is possible that an outflow of economic benefit would be required to settle the obligation.

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

Grants
Grants are accounted for under the accrual model and classified either as a grant relating to revenue (revenue-based grant) or a grant relating to assets (capital-based grants). Grants which relate to revenue are recognised in income in the period the related costs are incurred by the entity for which the grant is intended to compensate. For grants which are received by the entity for compensation for expenses or losses which have already been incurred, the grant is recognised in income when it is received or receivable provided that the terms of the grant do not impose future performance-related conditions. Any grants that are received before the revenue recognition criteria are met are recognised in the entity's financial statements as a liability. Government grants in relation to tangible fixed asset are credited to profit and loss account over the useful lives of the related assets, whereas those in relation to expenditure are credited when the expenditure is charged to profit and loss.

3

Turnover

The analysis of the group's turnover for the year from continuing operations is as follows:

2026
£

2025
£

Sale of goods and services

51,647,185

42,532,787

4

Operating profit

Arrived at after charging/(crediting)

2026
£

2025
£

Depreciation expense

83,486

125,281

Amortisation expense

338,076

303,869

Research and development cost

338,666

278,912

5

Other interest receivable and similar income

2026
£

2025
£

Other finance income

370

6,098

6

Interest payable and similar expenses

2026
£

2025
£

Interest expense on other finance liabilities

-

29,466

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2026
£

2025
£

Wages and salaries

3,942,649

4,065,743

Social security costs

536,356

440,182

Pension costs, defined contribution scheme

63,707

66,842

4,542,712

4,572,767

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2026
No.

2025
No.

Directors

5

5

Administration, HR, finance, and information technology

23

23

Claim handlers

66

65

94

93

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2026
£

2025
£

Remuneration

625,458

611,596

In respect of the highest paid director:

2026
£

2025
£

Remuneration

165,567

170,484

9

Auditors' remuneration

2026
£

2025
£

Other fees to auditors

Fees payable to the auditor for the audit of the annual financial statements

10,000

10,000

All other non-audit services

20,000

20,000

30,000

30,000


 

10

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2026
£

2025
£

Current taxation

UK corporation tax

234,332

144,871

Deferred taxation

Arising from origination and reversal of timing differences

(11,695)

(4,093)

Tax expense in the income statement

222,637

140,778

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2025 - the same as the standard rate of corporation tax in the UK) of 25% (2025 - 25%).

The differences are reconciled below:

2026
£

2025
£

Profit before tax

811,722

396,159

Corporation tax at standard rate

202,589

77,156

Tax increase from effect of capital allowances and depreciation

100,386

107,046

Tax (decrease)/increase from other short-term timing differences

(11,695)

56,967

Effect of expense not deductible in determining taxable profit (tax loss)

24,883

584

Tax decrease from effect of adjustment in research and development tax credit

(93,526)

(100,975)

Total tax charge

222,637

140,778

11

Intangible assets

Group

Goodwill
 £

Computer software
£

Total
£

Cost or valuation

At 1 May 2025

1,689,100

462,252

2,151,352

Additions

-

13,100

13,100

At 30 April 2026

1,689,100

475,352

2,164,452

Amortisation

At 1 May 2025

735,843

100,436

836,279

Amortisation charge

232,392

105,684

338,076

At 30 April 2026

968,235

206,120

1,174,355

Carrying amount

At 30 April 2026

720,865

269,232

990,097

At 30 April 2025

953,257

361,816

1,315,073


 

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

Company

Goodwill
 £

Computer software
£

Total
£

Cost or valuation

At 1 May 2025

1,648,545

457,532

2,106,077

Additions

-

13,100

13,100

At 30 April 2026

1,648,545

470,632

2,119,177

Amortisation

At 1 May 2025

691,237

95,716

786,953

Amortisation charge

232,392

105,684

338,076

At 30 April 2026

923,629

201,400

1,125,029

Carrying amount

At 30 April 2026

724,916

269,232

994,148

At 30 April 2025

957,308

361,816

1,319,124


 

12

Tangible assets

Group

Improvements to property
£

Fixtures and fittings
£

Plant and machinery
£

Computer equipment
£

Cost or valuation

At 1 May 2025

200,438

136,173

12,753

245,085

Additions

-

562

-

6,357

At 30 April 2026

200,438

136,735

12,753

251,442

Depreciation

At 1 May 2025

140,171

106,697

12,754

156,686

Charge for the year

30,649

14,035

-

38,802

At 30 April 2026

170,820

120,732

12,754

195,488

Carrying amount

At 30 April 2026

29,618

16,003

(1)

55,954

At 30 April 2025

60,267

29,476

(1)

88,399

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

Total
£

Cost or valuation

At 1 May 2025

594,449

Additions

6,919

At 30 April 2026

601,368

Depreciation

At 1 May 2025

416,308

Charge for the year

83,486

At 30 April 2026

499,794

Carrying amount

At 30 April 2026

101,574

At 30 April 2025

178,141

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

Company

Improvements to property
£

Fixtures and fittings
£

Computer equipment
£

Total
£

Cost or valuation

At 1 May 2025

200,438

127,039

245,085

572,562

Additions

-

562

6,357

6,919

At 30 April 2026

200,438

127,601

251,442

579,481

Depreciation

At 1 May 2025

140,171

97,563

156,686

394,420

Charge for the year

30,649

14,035

38,802

83,486

At 30 April 2026

170,820

111,598

195,488

477,906

Carrying amount

At 30 April 2026

29,618

16,003

55,954

101,575

At 30 April 2025

60,267

29,476

88,399

178,142

13

Investments

Group

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2026

2025

Subsidiary undertakings

Direct Lawn and Garden Limited

Ree Place Dew Pond Lane, Tongue Lane Industrial Estate, Buxton, Derbyshire. SK17 7LF

Ordinary shares

100%

100%

United Kingdom

React Insurance Services Ltd

Chase House Park Plaza, Heath Hayes, Cannock, England, WS12 2DD

Ordinary shares

100%

100%

United Kingdom

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

Subsidiary undertakings

Direct Lawn and Garden Limited

React Insurance Services Ltd

Company

2026
£

2025
£

Investments in subsidiaries

100

30,100

Subsidiaries

£

Cost or valuation

At 1 May 2025

30,100

Impairment

(30,000)

At 30 April 2026

100

Provision

Carrying amount

At 30 April 2026

100

At 30 April 2025

30,100

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

14

Stocks

 

Group

Company

2026
£

2025
£

2026
£

2025
£

Work in progress

920,229

870,013

920,229

870,013

Finished goods and goods for resale

16,130

18,482

-

-

936,359

888,495

920,229

870,013

15

Debtors

   

Group

Company

Current

Note

2026
£

2025
£

2026
£

2025
£

Trade debtors

 

2,989,583

2,099,805

2,957,842

2,091,487

Amounts owed by group undertakings

24

-

-

362,815

366,636

Other debtors

 

245,514

166,150

245,514

165,294

Prepayments

 

210,785

214,300

208,397

213,149

   

3,445,882

2,480,255

3,774,568

2,836,566

Amounts owed by group undertakings are interest free and repayable on demand.

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

16

Cash and cash equivalents

 

Group

Company

2026
£

2025
£

2026
£

2025
£

Cash at bank

455,581

498,233

446,604

484,431

17

Creditors

 

Group

Company

Note

2026
£

2025
£

2026
£

2025
£

Due within one year

 

Trade creditors

 

2,252,166

1,822,954

2,235,462

1,811,325

Amounts due to related parties

24

-

-

12,097

13,346

Social security and other taxes

 

256,752

387,408

249,950

377,989

Other payables

 

41,574

49,893

34,445

42,032

Accruals

 

1,543,283

1,190,677

1,538,208

1,185,939

Income tax liability

10

173,400

174,337

171,766

174,304

 

4,267,175

3,625,269

4,241,928

3,604,935

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

18

Provisions for liabilities

Group

Deferred tax
£

Total
£

At 1 May 2025

29,682

29,682

Increase (decrease) in existing provisions

(11,695)

(11,695)

At 30 April 2026

17,987

17,987

Company

Deferred tax
£

Total
£

At 1 May 2025

29,682

29,682

Increase (decrease) in existing provisions

(11,695)

(11,695)

At 30 April 2026

17,987

17,987

19

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £63,707 (2025 - £66,842).

20

Share capital

Allotted, called up and fully paid shares

2026

2025

No.

£

No.

£

Ordinary shares of £1 each

25,000

25,000

25,000

25,000

       

21

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2026
£

2025
£

Not later than one year

132,250

123,625

Later than one year and not later than five years

44,083

176,333

176,333

299,958

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

22

Dividends

2026

2025

£

£

Interim dividend of £26.00 (2025 - £20.80) per ordinary share

650,000

520,000

 

 

23

Commitments

Group

Capital commitments

The total amount contracted for but not provided in the financial statements was £Nil (2025 - £Nil).

24

Related party transactions

Group

The group has taken advantage of an exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements

At 30th April 26, directors' loans totalled £226,597 (2025: £162,845). These loans will be/were interest-free and repayable on demand. The amounts outstanding at the year end were fully repaid within nine months of the respective year ends.

Transactions with directors

2026

At 1 May 2025
£

Advances to director
£

Repayments by director
£

At 30 April 2026
£

T Rees

32,500

178,481

(162,500)

48,481

S Crowley

130,345

437,771

(390,000)

178,116

 

SBS Insurance Services Limited

Notes to the Financial Statements for the Year Ended 30 April 2026

25

Ultimate controlling party

Group

During the year, the group was under the control of S Crowley, by virtue of his shareholding of 60% of the ordinary share capital of the group.

 

26

Post balance sheet events

Group

On 5 May 2026, the group's subsidiary, Direct Lawn and Garden Limited, was voluntarily struck off and dissolved. As the investment and associated goodwill were fully impaired to £nil prior to 30 April 2026, there is no material impact on the consolidated financial position or results of the group.