REGISTERED NUMBER: 04088720 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

AUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2025

FOR

PREMIA SOLUTIONS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

6

Report of the Independent Auditors

8

Statement of Comprehensive Income

11

Statement of Financial Position

12

Statement of Changes in Equity

13

Statement of Cash Flows

14

Notes to the Statement of Cash Flows

15

Notes to the Financial Statements

16

DIRECTORS:

V R C Gamble

N Turner

R M Gentle

M J Scott

R Kahlbaugh

M Vrban

E Pena

I R Simpson

Bluefriars Training and Consultancy Ltd

SECRETARY:

B J Southmayd

REGISTERED OFFICE:

20 Fenchurch Street

5th Floor

London

EC3M 3BY

BUSINESS ADDRESS:

Unit 3 Corunna Court

Corunna Road

Warwick

Warwickshire

CV34 5HQ

REGISTERED NUMBER:

04088720 (England and Wales)

AUDITORS:

Hartley Fowler LLP

Statutory Auditors

Chartered Accountants

4th Floor Tuition House

27-37 St George's Road

Wimbledon

London

SW19 4EU

The directors present their strategic report for the year ended 31 December 2025.

REVIEW OF BUSINESS

Business

The company is authorised as an insurance intermediary which trades as a managing general agent for consumer insurance products, with a main office in Warwick. In addition, we have a subsidiary Premia Solutions Warranty Limited (PSWL) which previously acted as an administrator in the car warranty sector. Our core business generated circa £16.1m in turnover in the year, whilst PSWL remained dormant. Although we created a new subsidiary in Ireland in response to Brexit, we have not yet started trading.

Our business is the design and administration of motor vehicle related add-on insurance products. We work with motor dealers and manufacturers to identify and provide the most appropriate products for motorists; the products are underwritten by "A" rated insurers. We work with many of the top 20 motor dealer groups and administer circa 1m live policies.

During 2025 PSL was a subsidiary of Fortegra Financial Corporation (FFC), a Tiptree Inc. company based in the US and trading on the NASDAQ under the initials TIPT. Established for over 40 years, FFC specialises in insurance and warranty solutions, with a core business centred around motor ancillary products. It expanded its reach into Europe in 2017 with the formation of FEICL, the opening of its London offices, and founded a partnership with PSL and acquired a majority stake in February 2023. In May 2026 FFC was purchased by DB Insurance, a South Korean based insurer. DB Insurance is an A+ rated insurer with over US$45 billion in assets and gross written premiums exceeding US$16 billion.

In January 2024 the FCA issued a voluntary request to the major suppliers of GAP insurance, including ourselves, to cease trading these products from the middle of February pending further review of the market. As a result, approximately one third of our product portfolio was suspended for a period of 4 months. Following a submission by Fortegra to the FCA, the suspension was removed by the FCA and sales of GAP products resumed in June 2024.

Although sales of our other products increased during this period, overall income was reduced. The lower baseline in 2024 contributed to the year on year growth in 2025 of 17%, driven particularly by the revamped GAP insurance product. With our other products maintaining their growth from 2024 we sold a record 424,000 policies.

PSWL became a dormant company in the middle of 2024 and its future is under review.

Environment

The business is fundamentally driven by the sales of new and used cars through large franchised dealer groups. We have seen our share of the market gradually increase during 2025 and 2026 as new clients come on stream.

Overall sales of new cars returned to pre-Covid levels in 2023, but the increase had been focussed in Fleet purchases. Private purchases, our core market, fell in 2024 but returned to growth in 2025 and growth accelerated in 2026 and is up 10% on prior year. Used cars volumes continue to recover with 2025 up 2% though are flat year-on-year in 2026.

Prior to the acquisition of PSL we had formed a strong relationship with Fortegra as our principal underwriter and, following the withdrawal of Axa in September 2022, they have become our sole underwriter. In the middle of 2025 we migrated the underwriting of new business to Fortegra's UK subsidiary, with Fortegra Europe managing the run-off of our existing policies.

Regulatory pressure continues to rise as the FCA places the insurance market under increasing scrutiny. The new Consumer Duty regulations have led to a review of our products, processes and documentation to ensure we continue to provide outstanding products and services to our policy holders.

The disruption caused by the FCA intervention in early 2024 has left the market in an uncertain state and we are monitoring trends closely so that we can adapt and adjust our portfolio and offering so that we continue to lead the market.

Strategy

Our objective is to enable motorists to insure the risks to their vehicle at a sensible price and to ensure policies and claims are administered in a fair manner, and cost effectively. We look to develop innovative products and bring them to market. One of our strengths is our ability to help our clients sell more products.

We look to ensure that all parties within the chain, from policyholder through dealer to underwriter are getting value, while ensuring that regulation and individual rights are fully adhered to. By using our own bespoke systems, we enhance the customer experience in respect of simplicity of policy administration and claims, we have an outstanding Trust Pilot score which is a reflection of how our policyholders view the way we handle their claims.

In conjunction with our clients, we are developing an e-commerce strategy, combined with telesales, to further improve our ability to present products. It should be noted that post the VREQ imposed by the FCA, most of the largest dealer groups have decided not to bring GAP back into the showroom, rather focus on other more profitable products, hence this e-commerce approach.

For the coming year we are looking to maintain and develop the relationships with our existing clients and to secure more new clients from the top 200 motor dealer groups, as well as manufacturer finance companies and car supermarkets.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal areas of risk and uncertainty are described below together with mitigation measures adopted.

Motor Dealers

We partner with a number of the larger dealer groups and losing any business would inevitably reduce our income. We continue to develop relationships with a broader client base in order to spread our risk.

Insurers

Following the acquisition by Fortegra we are no longer at risk of our principal insurer withdrawing from the market.

Technology and Data

Technology is the basis of our efficiency and cost effectiveness. Hence a system or network failure would undermine our ability to do business in the short term and lead to significant costs to rectify. We constantly look to get the best in breed support and produce back-up solutions for our key technology. In addition, we are looking to leverage the capabilities of Fortegra to integrate where appropriate and benefit from their scale and expertise.

Similarly, as with most other modern companies, a cyber-attack could have a substantial commercial and reputational impact, and possible regulatory consequences. Working with our system hosts and providers, and continuous monitoring and assessment, will help us in protecting our systems, security and data from this risk.

Regulation

The continued increase in regulation means additional costs and possible risk of a breach of FCA or other regulations. We are constantly updating our procedures to stay on top of current regulation and put ourselves in a very strong position to respond to changes as they occur.

The market intervention by the FCA in early 2024 has demonstrated the value of our procedures and our ability to respond quickly to a changing landscape.

Brexit

Brexit has not had a direct impact on our UK business, nor that of our insurers. There is a potential impact on sales volumes, but we consider this to be a low risk. We have set up a new subsidiary in Ireland which has been authorised by the Central Bank of Ireland. Our business in Ireland is immaterial to the overall business.

Covid or similar pandemic

There would be a direct impact on front end sales during any lockdown period in the UK, although motor dealers have adapted, and any future impact will likely be lower than in 2020. We would be dependent on a repeat of the Job Retention Scheme to avoid either losses or redundancies. A prolonged lockdown causing a prolonged economic slowdown would lead to lower sales, although the current view is that is unlikely.

Vehicle supply

Anything that reduces the ability of car manufacturers, and hence dealers, to meet demand reduces our income. The semi-conductor shortage in 2021 and 2022 caused a reduction in new car sales resulting in a constraint on our growth. This shortage eased during 2023 although the market is still focussed on Fleet sales. Sales of private vehicles declined in 2024 and but have returned to growth in 2025.

PERFORMANCE REVIEW

Operational

Premia strengthened our relationship with Fortegra following the acquisition, and by partnering with such a strong

brand we were able to grow our client relationships. We won 9 new clients over the course of the year and saw our market share increase as these came on stream.

We continued to move online our policy administration and claims processes through the expansion of MyPremia, an online policyholder portal. We increased our IT resources by 10% to enable us to continue further improvements. Operational headcount increased to meet the increased volumes, but at a lower rate than would have been necessary without the IT investment.

Financial

Turnover was £16.1m in the period, up by 17% vs prior period, driven by an increase in the volume of sales and the profitability of our products. Although the market has not returned to pre-Covid levels our increased market share has seen our volumes reach record levels. Administrative expenses were £9.1m, an increase of 19% on the prior year.

The increase in underlying costs reflected the increased salary costs as we added staff to handle increased volumes, moving to being a Real Living Wage employer plus the increase in National Insurance rates.

The impact of Covid has caused a review of our ways of working. The IT team moved to working from home in 2020 and we have moved to hybrid working for the majority of our staff. This has helped keep costs under control and enabled us to remain in our existing Warwick offices despite the expansion. This is under constant review, and we took some additional office space in a neighbouring building in autumn 2023. Staff retention has become an issue for all businesses, and we have reviewed and expanded our staff benefits, including hybrid working, in order to retain staff.

PSWL became a dormant company in 2024, and its future is under review.

Operating profit increased to £7.0m vs £6.1m. Net assets increased from £8.0m to £13.2m

The Cash position of the company remains strong, allowing us to look at new markets and more profitable products involving short-term financing. The company has no debt other than some small finance leases.

FUTURE DEVELOPMENTS

We continue to enhance the level of support to motor dealers, around training and development as well as regulatory compliance, and believe we are well positioned to win more new business.

Further technology developments, in particular the development of MyPremia, will enable us to increase our efficiency and improve customer experience. Faster electronic links to repairers and increased focus on their KPIs will further improve the customer claims experience.

ON BEHALF OF THE BOARD:

V R C Gamble - Director

9 September 2026

The directors present their report with the financial statements of the company for the year ended 31 December 2025.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the supply of administrative, consultancy and support services to the motor and insurance industries.

DIVIDENDS

No dividends were paid during the year (2024 £3,600,000). In addition, the directors do not propose any dividends for the year ended 31 December 2025.

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

The directors shown below have held office during the whole of the period from 1 January 2025 to the date of this report.

V R C Gamble

N Turner

R M Gentle

M J Scott

R Kahlbaugh

M Vrban

E Pena

I R Simpson

Bluefriars Training and Consultancy Ltd

CHARITY DONATIONS

During the year the company made charity donations of £164,500 (2024 £71,300).

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

ON BEHALF OF THE BOARD:

V R C Gamble - Director

9 September 2026

Opinion

We have audited the financial statements of Premia Solutions Limited (the 'company') for the year ended 31 December 2025 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page six, 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 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

We identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

-the nature of the industry and sector, control environment and business performance;

-results of our enquiries of management about their own identification and assessment of the risks of irregularities;

-any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:

- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non -compliance;

- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;

-the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

As a result of performing the above, we did not identify any key matters related to the potential risk of fraud or non-compliance with laws and regulations.

Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements;

-enquiring of management concerning actual and potential litigation and claims;

-performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

-reviewing minutes of meetings of those charged with governance, reviewing internal reports and reviewing correspondence with HMRC, and

-in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale for any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indication of fraud or non-compliance with laws and regulations throughout the audit.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathan Askew (Senior Statutory Auditor)

for and on behalf of Hartley Fowler LLP

Statutory Auditors

Chartered Accountants

4th Floor Tuition House

27-37 St George's Road

Wimbledon

London

SW19 4EU

15 September 2026

TURNOVER

4

16,056,663

13,705,845

Administrative expenses

9,105,162

7,641,463

OPERATING PROFIT

7

6,951,501

6,064,382

Interest receivable and similar income

172,941

97,714

7,124,442

6,162,096

Interest payable and similar expenses

8

66,921

17,273

PROFIT BEFORE TAXATION

7,057,521

6,144,823

Tax on profit

9

1,770,729

1,495,534

PROFIT FOR THE FINANCIAL YEAR

5,286,792

4,649,289

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

5,286,792

4,649,289

FIXED ASSETS

Tangible assets

11

34,013

27,602

Investments

12

2

2

34,015

27,604

CURRENT ASSETS

Debtors: amounts falling due within one year

13

18,009,770

10,602,279

Cash at bank

6,428,085

7,288,487

24,437,855

17,890,766

CREDITORS

Amounts falling due within one year

14

11,176,948

9,910,240

NET CURRENT ASSETS

13,260,907

7,980,526

TOTAL ASSETS LESS CURRENT LIABILITIES

13,294,922

8,008,130

CAPITAL AND RESERVES

Called up share capital

16

48

48

Share premium

17

80,878

80,878

Capital redemption reserve

17

10

10

Retained earnings

17

13,213,986

7,927,194

SHAREHOLDERS' FUNDS

13,294,922

8,008,130

The financial statements were approved by the Board of Directors and authorised for issue on 9 September 2026 and were signed on its behalf by:

V R C Gamble - Director

Called up

Capital

share

Retained

Share

redemption

Total

capital

earnings

premium

reserve

equity

£

£

£

£

£

Balance at 1 January 2024

48

6,877,905

80,878

10

6,958,841

Changes in equity

Dividends

-

(3,600,000

)

-

-

(3,600,000

)

Total comprehensive income

-

4,649,289

-

-

4,649,289

Balance at 31 December 2024

48

7,927,194

80,878

10

8,008,130

Changes in equity

Total comprehensive income

-

5,286,792

-

-

5,286,792

Balance at 31 December 2025

48

13,213,986

80,878

10

13,294,922

Cash flows from operating activities

Cash generated from operations

1

1,124,205

7,759,312

Interest paid

(66,921

)

(17,273

)

Tax paid

(2,333,080

)

(1,217,925

)

Taxation refund

259,451

-

Net cash from operating activities

(1,016,345

)

6,524,114

Cash flows from investing activities

Purchase of tangible fixed assets

(21,179

)

(2,852

)

Interest received

172,941

97,714

Net cash from investing activities

151,762

94,862

Cash flows from financing activities

Introduced/(withdrawn) by directors

4,634

-

Introduced/(withdrawn) by directors

(453

)

(4,634

)

Equity dividends paid

-

(3,600,000

)

Net cash from financing activities

4,181

(3,604,634

)

(Decrease)/increase in cash and cash equivalents

(860,402

)

3,014,342

Cash and cash equivalents at beginning of year

2

7,288,487

4,274,145

Cash and cash equivalents at end of year

2

6,428,085

7,288,487

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2025

2024

£

£

Profit before taxation

7,057,521

6,144,823

Depreciation charges

14,768

13,171

Finance costs

66,921

17,273

Finance income

(172,941

)

(97,714

)

6,966,269

6,077,553

(Increase)/decrease in trade and other debtors

(7,415,409

)

3,100,095

Increase/(decrease) in trade and other creditors

1,573,345

(1,418,336

)

Cash generated from operations

1,124,205

7,759,312

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2025

31/12/25

1/1/25

£

£

Cash and cash equivalents

6,428,085

7,288,487

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

7,288,487

4,274,145

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/25

Cash flow

At 31/12/25

£

£

£

Net cash

Cash at bank

7,288,487

(860,402

)

6,428,085

7,288,487

(860,402

)

6,428,085

Total

7,288,487

(860,402

)

6,428,085

1.	STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Significant judgements and estimates

The company has made the following significant accounting judgements and estimates in the application of the company's accounting policies:

- Indemnity commission accrual. The company indemnifies the commissions on cancelled policies. Management estimated a provision for this indemnity, included in accruals, based on historic data, using forecasting models.

Income recognition

Income represents invoiced policy commission and fees receivable, net of VAT, IPT and discounts. Income from commissions is received for selling and administering insurance policies and is recognised in the income statement when the company obtains the right to consideration, at policy inception. Provisions are maintained to meet future policy cancellations.

Profit share income is recognised in the income statement when the company obtains the right to the consideration.

Income on car care products is recognised on despatch.

Interest on bank balances is included when receivable and the amount can be measured reliably by the company; this is normally upon notification of the interest paid or payable by the bank.

Tangible fixed assets

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

Fixtures and fittings

-

25% on cost

Investments in subsidiaries

The company owns two wholly owned subsidiaries which are accounted for at cost less impairment.

Both subsidiaries when taken together are not material for the purpose of giving a true and fair view, so consolidated financial statements have not been prepared.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Foreign currencies

Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. All differences are taken to the income statement.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

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

Insurance debtors and creditors

The company is an insurance broker, acting as an agent in placing the insurable risks of its clients with insurers and, as such, is not generally liable as a principal for amounts arising from such transactions.

Notwithstanding the company's legal relationship with clients and underwriters, it has followed generally accepted accounting practice for insurance intermediaries by showing debtors, creditors and cash balances relating to insurance business gross, as assets and liabilities of the company itself. This recognises that the insurance broker is entitled to retain the investment income on any cash flows arising from these transactions.

Insurance broking debtors and creditors arising from a transaction are recorded simultaneously, consequently there is a high level of correlation between the insurance broking debtors and creditors. It is normal practice for insurance brokers to settle accounts with other intermediaries, clients, insurers and market bureaux on a net basis. Large changes in broking balances can arise from a comparatively small cash flow, therefore the insurance broking balances give no indication of future cash flows.

Financial instruments

Financial assets and liabilities are recognised when the company becomes party to contractual provisions of the financial instrument. The company holds only basic financial instruments, which comprise cash and cash equivalents, trade and other debtors, trade and other creditors.

Financial assets - classified as basic financial instruments

(i) Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held with banks and other short term highly liquid investments with original maturities of three months or less.

(ii) Trade and other debtors

Trade and other debtors are measured at transaction price. Trade debtors are amounts due from customers for goods or services performed in the ordinary course of business less any impairment provision. There are recognised as current assets as collection is due within one year or less.

(iii) Trade and other creditors

Trade and other creditors are measured at transaction price. Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business. These are classified as current liabilities as payment is due in one year or less.

Dividends

Dividends are recognised in the company's financial statements in the year in which they are approved in general meetings by the company's shareholders. Interim dividends are recognised when they are paid.

Share Capital

Ordinary shares are classified as equity.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Insurance commissions and fees

11,088,917

8,502,484

Profit share income

4,967,746

5,203,361

16,056,663

13,705,845

5.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

5,156,333

4,471,378

Social security costs

737,291

519,723

Other pension costs

111,512

101,123

6,005,136

5,092,224

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

2025

2024

Management

5

5

Other

109

102

114

107

6.	DIRECTORS' EMOLUMENTS

2025

2024

£

£

Directors' remuneration

1,344,269

1,172,814

Directors' pension contributions to money purchase schemes

20,852

18,300

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

5

4

Information regarding the highest paid director is as follows:

2025

2024

£

£

Emoluments etc

398,128

342,752

Pension contributions to money purchase schemes

608

6,600

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the company. Key management personnel compensation includes all employee benefits. During the year key management personnel compensation was £1,534,107 (2024 £1,341,804).

7.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Other operating leases

388,459

353,091

Depreciation - owned assets

14,768

13,171

Auditors' remuneration

21,000

19,000

Taxation compliance services

3,465

6,000

Other non- audit services

11,235

5,500

Foreign exchange differences

-

380

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Interest on corporation tax

66,921

17,273