CREATIVE_AUTO-ENROLMENT_L - Accounts

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

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

Creative Auto-enrolment Limited is a private company limited by shares incorporated in England and Wales. The registered office is , Cannon Place, 78 Cannon Street, London, England, EC4N 6AF.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

Following a review, certain costs previously classified as administrative expenses have been reclassified as cost of sales. While not material, the comparative has also been amended.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention.. The principal accounting policies adopted are set out below.

These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. true

The company operated at a profit for the year of £588,275. At the year end net current liabilities amounted to £4,629,667. The company receives ongoing support from its parent company, Creative Benefit Solutions Limited, for a period of at least 12 months from approval of the accounts, in respect of the intercompany balance due of £5,527,613.

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The directors have prepared cash flow and profit forecasts which show that the company can meet its financial obligations as they fall due. Thus the directors continue to adopt the going concern basis of accounting in preparing the annual financial statements.

In the annual review of the Company’s going concern, the Directors have considered the immediate and longer term impact of the Covid-19 pandemic to the group. The directors have taken action to reduce the overhead cost base of the business where appropriate and also safeguard cashflow by utilising government support initiatives such as deferred tax payments and the furlough scheme, and deferring the settlement of liabilities which do not need to be settled in the near term. After a careful review of the business forecasts, making prudent assumptions for new client business, the impact to existing business and the direct costs associated with this, the directors are satisfied that the cashflow forecasts support that there is no material uncertainty in relation to the going concern position of the business. The Directors are committed to carrying out regular reviews of the Company’s cash flows to monitor the ongoing situation and take further steps as required.

Turnover represents amounts receivable for auto-enrolment services net of VAT and trade discounts.

Fees for initial auto enrolment consultancy services are recognised on a percentage completion basis over the period to staging. Ongoing consultancy support charges and other income are recognised when due.

Income from employee and employer scheme administration charges are recognised as the associated contractual obligations are fulfilled.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Cash at bank and in hand includes an amount of £361,000 (2018 - £Nil) deposited in an escrow account. This cash is held in escrow for the trustees in the event of a wind up of the Creative Auto-Enrolment Master Trust.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Pensions

The company operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the period they are payable.

The average monthly number of persons (including directors) employed by the company during the year was 44 (2018 - 44).

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

During the year Creative Benefit Solutions Limited funded expenditure on behalf of Creative Auto-Enrolment Limited totalling £4,043,140 (2018: £3,392,586) and repayments totalling £4,336,584 (2018: £3,025,530) were made. At the balance sheet date, the balance outstanding on the intercompany account was £5,527,613 (2018: £5,821,057). Creative Benefit Solutions Limited is a related party by virtue of its shareholding in the company.

During the year Creative Benefit Wealth Management Limited funded expenditure on behalf of Creative Auto-Enrolment Limited totalling £46,572 (2018: £19,461) and repayments totalling £218 (2018: £126,645) were made. At the balance sheet date, the company was due £4,095 (2018: due £50,449 ) to Creative Wealth Management Limited. Creative Benefit Wealth Management Limited is a related party by virtue of common ownership of Creative Benefit Solutions Limited.

The directors, N.K. Chambers and D.W. Johnstone, are also directors of Chambers Townsend Consultancy Limited (CTC) and shareholders of Chambers Townsend Holdings Limited, its parent company. During the year CTC invoiced Creative Auto-Enrolment Limited £547,623 (2018: £502,827); at the year end, the balance outstanding was £1,200 (2018: £42,891 ).

The immediate parent company is Creative Benefit Solutions Limited, a company registered in England and Wales. There is no single ultimate controlling party.