MD Warranty Inspection Services Limited - Limited company accounts 20.1

REGISTERED NUMBER: 05288783 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2020

for

MD Warranty Inspection Services Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Notes to the Financial Statements

13

DIRECTORS:

G J Devaney

L G Devaney

SECRETARY:

Ms J A Goodman

REGISTERED OFFICE:

2 Shore Lines Building

Shore Road

Birkenhead

Merseyside

CH41 1AU

REGISTERED NUMBER:

05288783 (England and Wales)

AUDITORS:

Haines Watts

Statutory Auditor

3rd Floor Pacific Chambers

11-13 Victoria Street

Liverpool

Merseyside

L2 5QQ

The Directors present their strategic report of the company for the year ended 31 December 2020.

MD Warranty Inspection Services Limited is part of the MDIS Group which provides latent defect insurance products to the UK construction sector working with a number of national developers to meet our strategic aims and growth aspirations.

MD Warranty Inspection Services Limited has over 150 surveyors nationally and provides high quality risk management associated with the latent defect insurance product to ensure best quality build.

REVIEW OF BUSINESS

We have seen a decrease in activity this year, due mainly to the significant challenges faced by the industry as result of the COVID-19. The construction industry was forced to shut-down in line with the initial lockdown imposed by the government in March 2020. Despite the gradual relaxation of lockdown restrictions throughout the year, the financial challenges due to the COVID-19 pandemic impacted the financial result for 2020.

The long term housing demand within the UK remains strong and the wider housing market experienced a surge in the latter part of 2020 driven by government intervention. Our market share has remained constant compared with 2019 and the company has no borrowings despite the economic pressures faced throughout the year.

During the year, there has been a change in the accounting estimate for revenue following a detailed review of the revenues received and the associated costs incurred by the business. This change in estimate has resulted in a reduction in turnover in the year of £937,158.

The results for the year and key performance indicators for the group were as follows:

2020

2019

Operating (loss)/profit

(239,107)

37,980

Gross margin

11%

18%

(Loss)/profit before tax

(266,838)

38,059

PRINCIPAL RISKS AND UNCERTAINTIES

The recent business interruption caused by the COVID-19 Pandemic has provided the business with present and future risks to consider. The company has taken all steps possible to ensure the safety of our employees whilst working hard to develop controls that ensure the business has the financial stability to continue to achieve strategic objectives through this difficult economic period. At present we continue to follow government guidelines and operate cautiously in the wake of an ever evolving economic landscape. Despite the challenges the company has faced throughout the COVID-19 Pandemic, we feel we are in a good position to maximise the opportunity that will inevitably materialise through the growth of the economy.

Other risks identified by the board include availability of qualified staff, new market entrants, credit risks for trade debtors and continual development of IT systems to meet internal and external customer expectations. In order to mitigate the risks identified, we maintain a risk register detailing the potential impact and the mitigating actions we undertake to manage their impact to acceptable levels.

DEVELOPMENT AND PERFORMANCE

The construction market is expected to continue to grow as unit numbers are still well below the documented Government targets. The directors are confident that the outlook is positive despite COVID-19 and we will continue to invest in our IT systems, develop key staff, diversify our product range, increase our route to market via new distribution channels with the aim to enhance the customer experience, scalability and maintain competitive edge, whilst seeking new initiatives both in existing and emerging markets.

ON BEHALF OF THE BOARD:

G J Devaney - Director

29 September 2021

The directors present their report with the financial statements of the company for the year ended 31 December 2020.

PRINCIPAL ACTIVITY

The principal activity of the company was the provision of surveying services.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2020.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report.

G J Devaney

L G Devaney

MATTERS COVERED IN THE STRATEGIC REPORT

Business review and future developments, principal risks and key performance indicators are included in the Strategic Report.

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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

G J Devaney - Director

29 September 2021

Opinion

We have audited the financial statements of MD Warranty Inspection Services Limited (the 'company') for the year ended 31 December 2020 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity 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 company's affairs as at 31 December 2020 and of its loss 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.

However, not all future events or conditions can be predicted. The COVID-19 viral pandemic is one of the most significant economic events for the UK with unprecedented levels of uncertainty of outcomes. It is therefore difficult to evaluate all of the potential implications on the company's trade, customers, suppliers and wider economy. The Directors' view on the impact of COVID-19 is disclosed on page 2 of the Strategic 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 four, 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 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.

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

We obtained an understanding of the legal and regulatory frameworks applicable to the company financial statements or that had a fundamental effect on the operations of the company. We determined that the most significant laws and regulations included, but were not limited to, United Kingdom Generally Accepted Accounting Practice, Companies Act 2006, distributable profits legislation and tax legislation. We assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statements items. Our tests including agreeing the financial statement disclosures to underlying supporting documentation, review of board meeting minutes, enquiries with management and review of correspondence with external legal advisors.

We assessed the susceptibility of the company's financial statements to material misstatement including how fraud might occur. Audit procedures performed by the engagement team included:

- Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud;

- Inquiring of management and those charged with governance about any known actual, suspected or alleged fraud;

- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

- Challenging assumptions and judgements made by management in its significant accounting estimates; and

- Identifying and testing journal entries, in particular any journal entries with unusual characteristics or posted by senior management.

Our audit did not identify any key audit matters relating to the detection of irregularities including fraud. However, despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularity likely involve collusion, forgery, intentional misrepresentations, or the override of internal controls.

A further description of our responsibilities for the audit of the financial statements is located on the

Financial Reporting Council's website at: http://www.frc.org.uk/auditorsresponsibilities This description forms part of our auditor's report.

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.

Mr Michael Forshaw (Senior Statutory Auditor)

for and on behalf of Haines Watts

Statutory Auditor

3rd Floor Pacific Chambers

11-13 Victoria Street

Liverpool

Merseyside

L2 5QQ

29 September 2021

TURNOVER

12,317,898

16,643,607

Cost of sales

10,994,760

13,703,912

GROSS PROFIT

1,323,138

2,939,695

Administrative expenses

2,666,287

2,901,715

(1,343,149

)

37,980

Other operating income

1,104,042

-

OPERATING (LOSS)/PROFIT

4

(239,107

)

37,980

Interest receivable and similar income

16

53

(239,091

)

38,033

Interest payable and similar expenses

5

27,747

(26

)

(LOSS)/PROFIT BEFORE TAXATION

(266,838

)

38,059

Tax on (loss)/profit

6

(44,174

)

-

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(222,664

)

38,059

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(222,664

)

38,059

FIXED ASSETS

Tangible assets

7

39,370

86,402

CURRENT ASSETS

Debtors

8

14,324,333

16,078,230

Cash at bank

11,001

11,325

14,335,334

16,089,555

CREDITORS

Amounts falling due within one year

9

12,929,923

15,786,165

NET CURRENT ASSETS

1,405,411

303,390

TOTAL ASSETS LESS CURRENT LIABILITIES

1,444,781

389,792

CREDITORS

Amounts falling due after more than one year

10

1,277,653

-

NET ASSETS

167,128

389,792

CAPITAL AND RESERVES

Called up share capital

13

100

100

Retained earnings

14

167,028

389,692

SHAREHOLDERS' FUNDS

167,128

389,792

The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2021 and were signed on its behalf by:

G J Devaney - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2019

100

351,633

351,733

Changes in equity

Total comprehensive income

-

38,059

38,059

Balance at 31 December 2019

100

389,692

389,792

Changes in equity

Total comprehensive income

-

(222,664

)

(222,664

)

Balance at 31 December 2020

100

167,028

167,128

1.	STATUTORY INFORMATION

MD Warranty Inspection Services 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.

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" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Significant judgements and estimates

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future event that are believed to be reasonable under the circumstances.

There is a significant judgement regarding the provision in relation to surveyor visits on developments.

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The only estimate and assumption which has a significant risk of causing a material adjustment to carrying amount of assets or liabilities within the next financial year is the Technical audit fee cost of sale provision. This is based on management's best estimate of site visits.

Turnover

Under the criteria set out in FRS102, given the level of its involvement in the sale of insurance policies, MD Warranty Inspection Services Limited considers itself to be a Principal in respect of all policies sales transactions. As such, all revenue and expenses are recognised as gross amounts in the financial statements.

Technical Audit fees (TA fees) income:

This revenue represents TA fees receivable during the year in respect of insurance policies provided by the parent company as part of an insurance package. TA fee revenue on the provision of a policy is recognised in the profit and loss account over the various stages over which an order/ policy progresses. In the year ended 31 December 2020 however, there has been a change in accounting estimate following a detailed review of timing of the revenues received and the associated costs incurred by the business. In previous periods, the deferral of revenue was based on the costs anticipated to complete outstanding jobs, the margin on these jobs was considered to be immaterial at the time. Since the introduction of enhanced management information a more robust revenue deferral estimate has been provided in the accounts. Revenue is therefore recognised in the profit and loss account in line with the revised stages of completion of a policy.

The impact of the change in accounting estimate has resulted in a reduction in turnover and increase in deferred income of £937,158 in MD Warranty Inspection Services Limited. This has resulted in an increase in the loss and a reduction in shareholders' funds for the year of £937,158. It is not practicable for the entity to estimate the effect of the change in estimate on future periods.

Other operating income

Income from government grants is presented within other operating income. Grants relating to revenue are recognised as income over the periods when the related costs are incurred. During the year the company claimed £1,104,042 in relation to furlough payments within the governments Coronavirus Job Retention Scheme.

Tangible fixed assets

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

Computer equipment

-

25% on cost

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, 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 balance sheet date.

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.

Debtors

Short term debtors are measured at transaction price, less any impairment.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty or notice of not more than 24 hours.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and loans to related parties.

Debt instruments (other than those wholly repayable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement and retained earnings.

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Going concern

The financial statements have been prepared on a going concern basis. The Directors have reviewed and considered relevant information, including the annual budget and future cash flows for the group in making their assessment. In particular, in response to the COVID-19 pandemic, the Directors have tested their group cash flow analysis to take into account the impact on their business of possible scenarios brought on by the impact of COVID-19, alongside the measures that they can take to mitigate the impact. Based on these assessments, given the measures that could be undertaken to mitigate the current adverse conditions, and the current resources available, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts.

3.	EMPLOYEES AND DIRECTORS

31.12.20

31.12.19

£

£

Wages and salaries

9,259,575

7,382,073

Social security costs

1,003,457

777,417

Other pension costs

597,074

476,571

10,860,106

8,636,061

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

31.12.20

31.12.19

Administration

42

8

Senior management

8

6

Surveyors

153

134

203

148

31.12.20

31.12.19

£

£

Directors' remuneration

95,292

131,871

Directors' pension contributions to money purchase schemes

3,658

14,944

Key management personnel

The directors are considered to be key management personnel for the current and previous year. Their employee benefits are noted above.

4.	OPERATING (LOSS)/PROFIT

The operating loss (2019 - operating profit) is stated after charging:

31.12.20

31.12.19

£

£

Depreciation - owned assets

53,152

-

Auditors' remuneration

3,848

5,301

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.20

31.12.19

£

£

Bank interest

27,747

(26

)

6.

TAXATION

Analysis of the tax credit

The tax credit on the loss for the year was as follows:

31.12.20

31.12.19

£

£

Current tax:

UK corporation tax

(44,174

)

-

Tax on (loss)/profit

(44,174

)

-

Reconciliation of total tax credit included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.20

31.12.19

£

£

(Loss)/profit before tax

(266,838

)

38,059

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19% (2019 - 19%)

(50,699

)

7,231

Effects of:

Expenses not deductible for tax purposes

39

58,028

Capital allowances in excess of depreciation

-

(2,988

)

Depreciation in excess of capital allowances

6,486

-

Group loss relief

-

(62,271

)

Total tax credit

(44,174

)

-

7.	TANGIBLE FIXED ASSETS

Computer

equipment

£

COST

At 1 January 2020

231,397

Additions

6,120

Disposals

(24,974

)

At 31 December 2020

212,543

DEPRECIATION

At 1 January 2020

144,995

Charge for year

53,152

Eliminated on disposal

(24,974

)

At 31 December 2020

173,173

NET BOOK VALUE

At 31 December 2020

39,370

At 31 December 2019

86,402

8.

DEBTORS

31.12.20

31.12.19

£

£

Amounts falling due within one year:

Trade debtors

7,034,790

7,591,243

Amounts owed by group undertakings

4,906,459

4,932,785

Tax

44,173

-

Prepayments & other debtors

597,729

602,052

12,583,151

13,126,080

31.12.20

31.12.19

£

£

Amounts falling due after more than one year:

Trade debtors

1,741,182

2,952,150

Aggregate amounts

14,324,333

16,078,230

A bad debt provision of £151,760 (2019 - £78,282) was recognised against trade debtors within the company.

Amounts owed by group undertakings are repayable on demand and attract no interest.

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.20

31.12.19

£

£

Trade creditors

1,251,897

2,024,955

Amounts owed to group undertakings

5,733,045

7,777,614

Social security and other taxes

282,913

317,924

VAT

1,230

200

Other creditors

52,706

91,788

Accruals and deferred income

5,608,132

5,573,684

12,929,923

15,786,165

Amounts owed to group undertakings are repayable on demand and attract no interest.

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.12.20

31.12.19

£

£

Accruals and deferred income

1,277,653

-

11.	SECURED DEBTS

Barclays Bank holds a cross guarantee and debenture between MD Affinity Schemes Limited, MD Insurance Services Limited, MD Remedial Contractors Limited, MD Warranty Support Services Limited, MDIS (International) Limited dated 18/08/2020.

12.	FINANCIAL INSTRUMENTS

2020

2019

£

£

Financial assets

Financial assets that are debt instruments measured at amortised cost

14,280,160

16,078,230

Financial liabilities

Financial liabilities measured at amortised cost

13,823,433

10,034,558

Financial assets that are debt instruments measured at amortised cost comprise trade debtors, prepayments, other debtors and amounts owed by group undertakings.

Financial liabilities measure at amortised cost comprise trade creditors, other creditors, amounts owed to group undertakings and accruals.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.20

31.12.19

value:

£

£

100

Ordinary

£1

100

100

14.

RESERVES

Retained

earnings

£

At 1 January 2020

389,692

Deficit for the year

(222,664

)

At 31 December 2020

167,028

Retained earnings - the accumulated profits and losses achieved by the company.

15.	PENSION COMMITMENTS

The company operates a defined contribution scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £597,074 (2019: £476,571).

16.	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.

17.	ULTIMATE CONTROLLING PARTY

MD Insurance Services Limited (MDIS) is deemed to be the immediate and ultimate parent company, by virtue of its 100% shareholding in the company.

MDIS is registered in England and Wales at the same address as the company, as shown on page 1.

MDIS is the smallest and largest group in which the company's results are consolidated in to, copies of the consolidated financial statements are filed on Companies House and copies can be obtained from the company's registered office address, as shown on page 1.