REGISTERED NUMBER: 12483858 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2026

FOR

THE INSTALLATION ASSURANCE AUTHORITY

LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

T W Cheetham

H F Davies

P J Dickin

I R F Gager

J B Oakes

D F Robson

S D Stevenson

D Ward

SECRETARY:

T W Cheetham

REGISTERED OFFICE:

Unit 3 Union Park

Ouzel Industrial Estate

Grovebury Road

Leighton Buzzard

Bedfordshire

LU7 4ER

REGISTERED NUMBER:

12483858 (England and Wales)

AUDITORS:

Ad Valorem Audit Services Limited

Chartered Certified Accountants

& Statutory Auditors

2 Manor Farm Court

Old Wolverton Road

Old Wolverton

Milton Keynes

Buckinghamshire

MK12 5NN

FIXED ASSETS

Tangible assets

4

452,122

607,745

Investments

5

250,000

-

702,122

607,745

CURRENT ASSETS

Debtors

6

3,481,129

2,781,335

Cash at bank

3,963,864

1,895,890

7,444,993

4,677,225

CREDITORS

Amounts falling due within one year

7

1,632,504

874,491

NET CURRENT ASSETS

5,812,489

3,802,734

TOTAL ASSETS LESS CURRENT LIABILITIES

6,514,611

4,410,479

CREDITORS

Amounts falling due after more than one year

8

-

(447,611

)

PROVISIONS FOR LIABILITIES

9

(2,544,454

)

(1,567,253

)

NET ASSETS

3,970,157

2,395,615

CAPITAL AND RESERVES

Called up share capital

10

1,000

1,000

Retained earnings

3,969,157

2,394,615

SHAREHOLDERS' FUNDS

3,970,157

2,395,615

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2026 and were signed on its behalf by:

T W Cheetham - Director

1.	STATUTORY INFORMATION

The Installation Assurance Authority 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.	ACCOUNTING POLICIES

BASIS OF PREPARING THE FINANCIAL STATEMENTS

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

ADEQUACY OF GUARANTEE FUNDS

The principal activity of the company is to provide a uniform and dependable independent guarantee for the insulation industry. The Council of Management's primary objective is to review on an annual basis that the company will have sufficient resources to ensure that guarantee claims, both notified to it at the year end and those that may arise in the future, can be met as they fall due.

In doing so the Council considers the sum of the deferred income reserve, the provision for notified claims and the provision for unexpired risk to assess whether this overall 'guarantee reserve' is sufficient to meet the claims that are likely to arise based on current projections of claim rates over the unexpired guarantee period and the anticipated expenditure on settling claims as adjusted for anticipated inflation.

TURNOVER

Turnover is stated after allocating part of the guarantee fee received from the installer on the completion of each insulation to deferred income. This deferred income is allocated to turnover in equal annual instalments over the lifetime off the IAA guarantee.

TANGIBLE FIXED ASSETS

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

Improvements to property

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on cost

Computer equipment

-

25% on reducing balance

INVESTMENTS IN SUBSIDIARIES

Investments in subsidiary undertakings are recognised at cost.

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 tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

DEFERRED TAX

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

DEFERRED INCOME

In order to accumulate guarantee funds the company allocates part of the guarantee fee received from the installer on the completion of each insulation to deferred income. An annual judgement is made as to what percentage of the guarantee fee is allocated straight to turnover and the balance to deferred income, based on market conditions and claims history.

This deferred income is allocated to the profit and loss account in equal instalments over the lifetime of the IAA guarantee commensurate with the expected incidence of claims. In reaching its assessment of the pattern of claims the company makes reference to past experience. The deferred income represents the proportion of the guarantee fee issued in the year and in previous years that relate to the unexpired risk period of the guarantees in issue.

GUARANTEE CLAIMS PAID

Guarantee claims incurred comprise claims and related expenses paid in the year, together with the movement on the provision for outstanding claims notified but not settled at the year end date and the provision for unexpired risk on guarantee claims in issue.

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.

GENERAL PROVISIONS

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.

Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and are subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are disclosed in the profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

PROVISION FOR NOTIFIED CLAIMS

A provision is made in respect of all claims notified to the company by guarantee holders as at the year end date. In estimating the cost of notified but not settled claims, the Council of Management has regard to the claim circumstances as reported and the cost of settling claims with similar characteristics in previous periods.

PROVISION FOR UNEXPIRED RISK

An unexpired risk provision is made where the estimated cost of claims and related expenses exceed the unearned fee, after taking account of future investment income and cost inflation. An assessment is made at the year-end for the estimated cost of claims which may arise during the unexpired period of each guarantee in force at the balance sheet date.

The provisions are inevitably subject to inherent uncertainties because of the range of factors which could give rise to potential claims over the 25 year guarantee period. The time expected to elapse between the inception of the guarantee, the manifestation of events giving rise to claims and the notification to and settlement by the company of such claims accentuate these uncertainties.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 42 (2025 - 34 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Improvements

and

Motor

Computer

to property

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 May 2025

675,305

80,492

219,719

24,857

1,000,373

Additions

-

19,396

-

-

19,396

Disposals

-

-

(25,999

)

-

(25,999

)

At 30 April 2026

675,305

99,888

193,720

24,857

993,770

DEPRECIATION

At 1 May 2025

241,550

48,542

88,581

13,955

392,628

Charge for year

108,439

13,813

40,929

1,748

164,929

Eliminated on disposal

-

-

(15,909

)

-

(15,909

)

At 30 April 2026

349,989

62,355

113,601

15,703

541,648

NET BOOK VALUE

At 30 April 2026

325,316

37,533

80,119

9,154

452,122

At 30 April 2025

433,755

31,950

131,138

10,902

607,745

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

Additions

250,000

At 30 April 2026

250,000

NET BOOK VALUE

At 30 April 2026

250,000

6.

DEBTORS

2026

2025

£

£

Amounts falling due within one year:

Trade debtors

1,121,066

812,565

Amounts owed by group undertakings

1,447,145

1,764,376

Other debtors

212,918

204,394

2,781,129

2,781,335

Amounts falling due after more than one year:

Amounts owed by group undertakings

700,000

-

Aggregate amounts

3,481,129

2,781,335

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2026

2025

£

£

Trade creditors

115,911

57,857

Amounts owed to group undertakings

328,857

-

Taxation and social security

466,833

238,673

Other creditors

720,903

577,961

1,632,504

874,491

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2026

2025

£

£

Amounts owed to group undertakings

-

447,611

9.	PROVISIONS FOR LIABILITIES

2026

2025

£

£

Deferred tax

Accelerated capital allowances

74,179

74,179

Deferred tax

38,852

-

113,031

74,179

Other provisions

2,431,423

1,493,074

Aggregate amounts

2,544,454

1,567,253

Deferred

Deferred

guarantee

tax

income

£

£

Balance at 1 May 2025

74,179

1,493,074

Provided during year

38,852

938,349

Balance at 30 April 2026

113,031

2,431,423

The deferred tax provision all relates to accelerated capital allowances.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2026

2025

value:

£

£

1,000

Ordinary

£1

1,000

1,000

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Darren Kerins FCCA (Senior Statutory Auditor)

for and on behalf of Ad Valorem Audit Services Limited

12.	OTHER FINANCIAL COMMITMENTS

At the year end the company has operating lease commitments of £1,513,226 (2025 £1,708,481) which relates to an operating lease ending in 2034.

13.	RELATED PARTY DISCLOSURES

The company has taken advantage of 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.