ACCOUNTS - Final Accounts

An analysis of turnover by class of business is as follows:

GRIMME BUTCHER JONES LIMITED - Company Information

Caseware UK (AP4) 2020.0.247 2020.0.247 2019-12-312021-05-092021-05-092019-12-31falsefalseLloyd's insurance brokerfalse2019-01-011517 01912941 2019-01-01 2019-12-31 01912941 2018-01-01 2018-12-31 01912941 2019-12-31 01912941 2018-12-31 01912941 2018-01-01 01912941 5 2019-01-01 2019-12-31 01912941 5 2018-01-01 2018-12-31 01912941 1 2019-01-01 2019-12-31 01912941 e:CompanySecretary1 2019-01-01 2019-12-31 01912941 e:Director1 2019-01-01 2019-12-31 01912941 e:Director2 2019-01-01 2019-12-31 01912941 e:Director3 2019-01-01 2019-12-31 01912941 e:Director3 2019-12-31 01912941 e:RegisteredOffice 2019-01-01 2019-12-31 01912941 d:Buildings d:LongLeaseholdAssets 2019-01-01 2019-12-31 01912941 d:Buildings d:LongLeaseholdAssets 2019-12-31 01912941 d:Buildings d:LongLeaseholdAssets 2018-12-31 01912941 d:FurnitureFittings 2019-01-01 2019-12-31 01912941 d:FurnitureFittings 2019-12-31 01912941 d:FurnitureFittings 2018-12-31 01912941 d:FurnitureFittings d:OwnedOrFreeholdAssets 2019-01-01 2019-12-31 01912941 d:OfficeEquipment 2019-01-01 2019-12-31 01912941 d:OfficeEquipment 2019-12-31 01912941 d:OfficeEquipment 2018-12-31 01912941 d:OfficeEquipment d:OwnedOrFreeholdAssets 2019-01-01 2019-12-31 01912941 d:OwnedOrFreeholdAssets 2019-01-01 2019-12-31 01912941 d:CurrentFinancialInstruments 2019-12-31 01912941 d:CurrentFinancialInstruments 2018-12-31 01912941 d:Non-currentFinancialInstruments 2019-12-31 01912941 d:Non-currentFinancialInstruments 2018-12-31 01912941 d:CurrentFinancialInstruments d:WithinOneYear 2019-12-31 01912941 d:CurrentFinancialInstruments d:WithinOneYear 2018-12-31 01912941 d:Non-currentFinancialInstruments d:AfterOneYear 2019-12-31 01912941 d:Non-currentFinancialInstruments d:AfterOneYear 2018-12-31 01912941 d:ReportableOperatingSegment1 2019-01-01 2019-12-31 01912941 d:ReportableOperatingSegment1 2018-01-01 2018-12-31 01912941 f:UnitedKingdom 2019-01-01 2019-12-31 01912941 f:UnitedKingdom 2018-01-01 2018-12-31 01912941 f:RestWorldOutsideUK 2019-01-01 2019-12-31 01912941 f:RestWorldOutsideUK 2018-01-01 2018-12-31 01912941 d:UKTax 2019-01-01 2019-12-31 01912941 d:UKTax 2018-01-01 2018-12-31 01912941 d:ShareCapital 2019-12-31 01912941 d:ShareCapital 2018-12-31 01912941 d:RetainedEarningsAccumulatedLosses 2019-01-01 2019-12-31 01912941 d:RetainedEarningsAccumulatedLosses 2019-12-31 01912941 d:RetainedEarningsAccumulatedLosses 2018-01-01 2018-12-31 01912941 d:RetainedEarningsAccumulatedLosses 2018-12-31 01912941 d:RetainedEarningsAccumulatedLosses 2018-01-01 01912941 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2019-12-31 01912941 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2018-12-31 01912941 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:UnlistedNon-exchangeTraded 2019-12-31 01912941 d:FinancialLiabilitiesFairValueThroughProfitOrLoss d:UnlistedNon-exchangeTraded 2018-12-31 01912941 d:AcceleratedTaxDepreciationDeferredTax 2019-12-31 01912941 d:AcceleratedTaxDepreciationDeferredTax 2018-12-31 01912941 e:OrdinaryShareClass1 2019-01-01 2019-12-31 01912941 e:OrdinaryShareClass1 2019-12-31 01912941 e:OrdinaryShareClass1 2018-12-31 01912941 e:FRS102 2019-01-01 2019-12-31 01912941 e:Audited 2019-01-01 2019-12-31 01912941 e:FullAccounts 2019-01-01 2019-12-31 01912941 e:PrivateLimitedCompanyLtd 2019-01-01 2019-12-31 01912941 d:WithinOneYear 2019-12-31 01912941 d:WithinOneYear 2018-12-31 01912941 d:BetweenOneFiveYears 2019-12-31 01912941 d:BetweenOneFiveYears 2018-12-31 01912941 d:HirePurchaseContracts d:WithinOneYear 2019-12-31 01912941 d:HirePurchaseContracts d:WithinOneYear 2018-12-31 01912941 d:HirePurchaseContracts d:BetweenOneFiveYears 2019-12-31 01912941 d:HirePurchaseContracts d:BetweenOneFiveYears 2018-12-31 01912941 2 2019-01-01 2019-12-31 01912941 d:FurnitureFittings d:LeasedAssetsHeldAsLessee 2019-12-31 01912941 d:FurnitureFittings d:LeasedAssetsHeldAsLessee 2018-12-31 01912941 d:LeasedAssetsHeldAsLessee 2019-12-31 01912941 d:LeasedAssetsHeldAsLessee 2018-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 01912941

GRIMME BUTCHER JONES LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019


GRIMME BUTCHER JONES LIMITED

COMPANY INFORMATION

Directors	J M Crisp
	B Grimme
	A Sommerville (resigned 9 May 2021)


Company secretary	J M Crisp


Registered number	01912941


Registered office	Boundary House
	7-17 Jewry Street
	London
	EC3N 2EX


Independent auditors	Venthams
	Chartered Accountants & Statutory Auditor
	51 Lincoln's Inn Fields
	London
	WC2A 3NA


GRIMME BUTCHER JONES LIMITED

CONTENTS

	Page
Strategic report	1 - 2
Directors' report	3 - 4
Independent auditors' report	5 - 7
Statement of income and retained earnings	8
Balance sheet	9
Statement of cash flows	10
Analysis of net debt	11
Notes to the financial statements	12 - 26


GRIMME BUTCHER JONES LIMITED

STRATEGIC REPORT

FOR THE YEAR ENDED 31 DECEMBER 2019

Introduction

The directors present their strategic report for Grimme Butcher Jones Limited for the year ended 31 December 2019.

Business review

The level of business and the year-end financial position were disappointing. The Directors had expected that the level of activity of Aviation business would increase markedly in the following year but Covid 19 has slowed recovery.
The company’s income in the year was substantially lower than that of the previous year, primarily due to the loss of the company’s larger clients due to insolvency and competition from former employees. This was partially offset by a reduction in expenses. The US Dollar exchange rate against Sterling weakened during the year whereas the Euro strengthened against Sterling. The great majority of the company’s income is in US Dollars.
The Company has budgeted for an average US Dollar and Euro rate at similar rates against Sterling to the end of 2020. Income is expected to grow organically and the company is expected to return to profitable trading in 2021.

Principal risks and uncertainties

As an independent insurance broker operating in international markets the principal risk and uncertainty faced by the company lies in the effect of market forces that are beyond its control. Worldwide events determine whether insurance rates and currency exchange rates will soften or harden and this directly affects the company’s income.
As far as possible the company seeks to mitigate its risks through the application of strict controls, a monitoring process at operational level and the use of insurance policies where appropriate.
The company’s activities expose it to a variety of financial risks. The majority of the company’s income is earned in foreign currency, principally US Dollars, and hence the business is exposed to currency risk arising from fluctuations in exchange rates. The risk is monitored and where appropriate the company enters into forward exchange contracts and options to mitigate such risks.
Little use is made of financial instruments other than operational bank accounts. Hence the exposure to price risk, credit risk and liquidity risk is not material for the assessment of assets, liabilities, financial position and profits of the company.
The regulated environment, in which the company operates, imposes extensive reporting requirements and continuing self-assessment and appraisal. The company continually monitors its operations to maintain quality and ensure compliance in all areas

Financial key performance indicators

The directors consider the financial key performance indicators to be regarding profitability:
2019 2018
Increase / (Decrease) in turnover (26.43%) (16.17%)
Increase / (Decrease) in pre-tax operating profit (1,454.05%) (83.12%)
Operating profit as a percentage of turnover (18.93%) 1.03%
These criteria are reviewed regularly. During the year one of the company’s major producers of business underwent reorganisation which resulted in the loss of clients. The impact of this can be seen in the reduced profit for the year. The directors remain confident that alternative sources of income are available

Page 1


GRIMME BUTCHER JONES LIMITED

STRATEGIC REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2019

Other key performance indicators

The directors consider the other key performance indicators to be:
• Client retention rates
• New business generation

This report was approved by the board and signed on its behalf.

................................................

J M Crisp

Director

Date: 6 August 2021

Page 2


GRIMME BUTCHER JONES LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2019

The directors present their report and the financial statements for the year ended 31 December 2019.

Directors' responsibilities statement

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

∙make judgments and accounting estimates that are reasonable and prudent;

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

∙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 to 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.

Results and dividends

The loss for the year, after taxation, amounted to £328,335 (2018 -profit £7,454).

The directors do not recommend payment of a final dividend.

Directors

The directors who served during the year were:

J M Crisp

B Grimme

A Sommerville (resigned 9 May 2021)

Future developments

The Directors and shareholder remain committed to the business, and as set out in note 2.2 consider the Company to be a going concern. The Company continues to face challenges due to the effects of the pandemic and market conditions generally, and the Directors have put in place various steps to mitigate this, including the recruitment of further key personnel.
During the subsequent accounting period the Company has acquired a controlling interest in a broker based in the European Union in order to enable the Company to continue to trade in Europe following the departure of the United Kingdom from the European Union.

Page 3


GRIMME BUTCHER JONES LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2019

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

The outbreak of the COVID-19 pandemic in December 2019 began to have an economic impact in the UK in March 2020. The effect on the company so far has been limited due to its ability to carry out work remotely.

Auditors

The auditors, Venthams, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.

................................................

J M Crisp

Director

Date: 6 August 2021

Page 4


GRIMME BUTCHER JONES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRIMME BUTCHER JONES LIMITED

Opinion

We have audited the financial statements of Grimme Butcher Jones Limited (the 'Company') for the year ended 31 December 2019, which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows and the related notes, 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 2019 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 United Kingdom, including the Financial Reporting Council'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.

Material uncertainty related to going concern

We draw attention to the strategic report and note 2.2 in the financial statements, which indicates that the reduction in net assets this year is as a result of loss of business and the future impact of net assets reduction becuase of the COVID-19 pandemic and continued loss of business to former employee competition. As stated in note 2.2, these events or conditions, along with the other matters as set forth in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the Company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

Other information

The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Page 5


GRIMME BUTCHER JONES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRIMME BUTCHER JONES LIMITED (CONTINUED)

Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of 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 Directors' Report.

We have nothing to report in respect of the following matters in relation to which 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 Directors' Responsibilities Statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

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 Auditors' 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.

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 Auditors' Report.

Page 6


GRIMME BUTCHER JONES LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GRIMME BUTCHER JONES LIMITED (CONTINUED)

Use of our report

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

Mark Taylor (Senior statutory auditor)

for and on behalf of

Venthams

Chartered Accountants

Statutory Auditor

51 Lincoln's Inn Fields

London

WC2A 3NA

6 August 2021

Page 7


GRIMME BUTCHER JONES LIMITED

STATEMENT OF INCOME AND RETAINED EARNINGS

FOR THE YEAR ENDED 31 DECEMBER 2019

	2019	2018
Note	£	£


Turnover	4	1,527,990	2,137,622
Administrative expenses		(1,870,217)	(2,115,639)
Operating (loss)/profit	5	(342,227)	21,983
Interest receivable and similar income	9	8,730	3,517
Interest payable and expenses	10	(6,288)	(9,012)
(Loss)/profit before tax		(339,785)	16,488
Tax on (loss)/profit	11	11,450	(9,034)
(Loss)/profit after tax		(328,335)	7,454



Retained earnings at the beginning of the year	412,107	404,653
	412,107	404,653
(Loss)/profit for the year	(328,335)	7,454
Retained earnings at the end of the year	83,772	412,107

Page 8


GRIMME BUTCHER JONES LIMITED REGISTERED NUMBER:01912941

BALANCE SHEET

AS AT 31 DECEMBER 2019

		2019		2018
Note		£		£

Fixed assets
Tangible assets	12		49,948		31,002
			49,948		31,002
Current assets
Debtors: amounts falling due after more than one year	13	52,650		52,650
Debtors: amounts falling due within one year	13	850,615		1,011,232
Cash at bank and in hand	14	4,191,477		3,336,685
		5,094,742		4,400,567
Creditors: amounts falling due within one year	15	(4,382,467)		(3,355,323)
Net current assets			712,275		1,045,244
Total assets less current liabilities			762,223		1,076,246
Creditors: amounts falling due after more than one year	16		(28,451)		(13,657)
Provisions for liabilities
Deferred tax	19	-		(482)
			-		(482)
Net assets			733,772		1,062,107

Capital and reserves
Called up share capital	20	650,000	650,000
Profit and loss account	21	83,772	412,107
		733,772	1,062,107

The financial statements were approved and authorised for issue by the board and were signed on its behalf by:

................................................

J M Crisp

Director

Date: 6 August 2021

Page 9


GRIMME BUTCHER JONES LIMITED

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 DECEMBER 2019

			2019	2018
			£	£

Cash flows from operating activities
(Loss)/profit for the financial year	(328,335)	7,454
Adjustments for:
Depreciation of tangible assets	15,560	16,197
Interest paid	6,288	9,012
Interest received	(8,730)	(3,517)
Taxation charge	(11,450)	9,034
Decrease in debtors	160,617	117,229
Increase/(decrease) in creditors	960,777	(1,103,164)
Corporation tax received/(paid)	-	(34,629)
Net cash generated from operating activities	794,727	(982,384)

Cash flows from investing activities
Purchase of tangible fixed assets	(34,506)	(14,537)
Sale of tangible fixed assets	-	545
Interest received	8,730	3,517
HP interest paid	(4,278)	(4,277)
Net cash from investing activities	(30,054)	(14,752)
Cash flows from financing activities
Repayment of/new finance leases	27,012	(9,640)
Interest paid	(2,010)	(4,735)
Net cash used in financing activities	25,002	(14,375)
Net increase/(decrease) in cash and cash equivalents	789,675	(1,011,511)
Cash and cash equivalents at beginning of year	3,231,448	4,242,959
Cash and cash equivalents at the end of year	4,021,123	3,231,448

Cash and cash equivalents at the end of year comprise:
Cash at bank and in hand	4,191,477	3,336,685
Bank overdrafts	(170,354)	(105,237)
	4,021,123	3,231,448

Page 10


GRIMME BUTCHER JONES LIMITED

ANALYSIS OF NET DEBT

FOR THE YEAR ENDED 31 DECEMBER 2019


At 1 January 2019	Cash flows	At 31 December 2019
£	£	£

Cash at bank and in hand	3,336,685	854,792	4,191,477
Bank overdrafts	(105,237)	(65,117)	(170,354)
Finance leases	(23,297)	(27,012)	(50,309)
	3,208,151	762,663	3,970,814

Page 11


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

1.	General information

Grimme Butcher Jones Limited is a private company limited by shares, incorporated in England and Wales. Its registered office is Boundary House, 7-17 Jewry Street, London, England, EC3N 2EX.
The principal activity of the company continued to be that of a Lloyd's insurance broker, specialising in Aviation business, regulated by the Financial Conduct Authority.

2.Accounting policies

2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

2.2

Going concern

These financial statements have been prepared on a going concern basis.
The current economic conditions present increased risks for all businesses. In response to such conditions, the directors have carefully considered these risks, including an assessment of uncertainty on future trading projections for a period of at least twelve months from the date of signing the financial statements, and the extent to which they might affect the preparation of the financial statements on a going concern basis.
Based on this assessment, the company is dependent on the continued financial support of its shareholders in order that the company maintain an appropriate level of liquidity, sufficient to meet the demands of the business including any capital and servicing obligations of external debt liabilities.
In addition, the company’s assets are assessed for recoverability on a regular basis, and the directors consider that the company is not exposed to losses on these assets which would affect their decision to adopt the going concern basis.
As noted in the principal risks and uncertainties section of the Strategic Report, the Company has been impacted by the effects of the coronavirus (COVID-19) pandemic. The effects of the pandemic are wide ranging and cannot be determined with accuracy as the pandemic is ongoing at the date of approval of the financial statements, and not knowing how long this situation will go on represents a material uncertainty.
The Directors have considered in detail the possible effects of the impacts on the Company of the coronavirus (COVID-19) outbreak and taking in to account a period exceeding 12 months from the date of approval of these financial statements, the Directors have a reasonable expectation that it has adequate resources to continue in operational existence for the foreseeable future.

Page 12


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

2.Accounting policies (continued)

2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Income and Retained Earnings within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

2.4

Revenue

Revenue arises from the brokerage associated with placing insurance and reinsurance contracts. Revenue is measured at the fair value of the consideration received or receivable and represents amounts in the normal course of business, net of discounts and other sales-related taxes. Where there is uncertainty regarding the value of brokerage to be earned by the company, income is deferred until it can be measured reliably.
Revenue from the brokerage is recognised at the inception date of the coverage. Where there is an expectation of future servicing requirements, an element of income relating to the policy is deferred to cover the associated contractual obligation.

2.5

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

Page 13


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

2.Accounting policies (continued)

2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

2.9

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Balance Sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 14


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

2.Accounting policies (continued)

2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property	-	5 years straight line
Fixtures and fittings	-	4 years straight line
Office equipment	-	4 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

2.12

Debtors

Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.13

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

2.14

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.

Page 15


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

2.Accounting policies (continued)

2.15

Insurance broking debtors and creditors

Insurance brokers usually act as agents in placing the insurable risks of their clients with insurers and, as such, generally are not liable as principals for amounts arising from such transactions. Notwithstanding these legal relationships, debtors and creditors arising from insurance broking transactions are shown as assets and liabilities. This recognises that the insurance broker is entitled to retain the investment income on any cash flows arising from these transactions.
It is normal practice for insurance brokers to settle accounts with other intermediaries, clients, insurers and market settlement bureaux on a net basis. The legal status of this practice of net settlement is uncertain and in the event of an insolvency it is generally abandoned. FRS 102 section 11 requires that offset of assets and liabilities should be recognised in the financial statements where, and only where, the offset would survive the insolvency of the other party. Accordingly, only such offsets have been recognised in calculating insurance broking debtors and creditors.

2.16

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

Page 16


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

2.Accounting policies (continued)

2.17

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Debt instruments (other than those wholly repayable or receivable 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. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.

Financial assets that are measured at cost and amortised cost 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 Statement of Income and Retained Earnings.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

No significant judgements have had to be made by management in preparing these financial statements.
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
Measuring deferred brokerage:
The company defers brokerage in respect of future servicing requirements associated with business placed. As future servicing requirements are unknown, at the reporting date the directors have established an estimate of the brokerage to be deferred based on historic patterns in post-placement activities and experience of similar business placed. Variations to estimates would result in the over or under recognition of revenue.
The company also defers brokerage where the value cannot be reliably estimated. In such cases revenue is only recognised once the account has been fully reconciled and settlements agreed with the respective third party.

Page 17


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

Brokerage	1,527,990	2,137,622
	1,527,990	2,137,622

Analysis of turnover by country of destination:

					2019	2018
					£	£

European Community	874,851	1,450,256
Rest of the world	653,139	687,366
	1,527,990	2,137,622

Exchange differences	87,286	(80,866)
Other operating lease rentals	87,750	87,760
Depreciation of tangible assets - owned by the company	6,370	6,623
Depreciation of tangible assets - held under finance leases	9,190	9,574
Auditors remuneration	40,800	48,723
Commission payable to related parties	50,000	60,000

Page 18


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

6.	Auditors' remuneration
		2019	2018
		£	£

Fees payable to the Company's auditor and its associates for the audit of the Company's annual financial statements

20,000

37,500

Fees payable to the Company's auditor and its associates in respect of:
Audit-related assurance services	12,300	7,323
Taxation compliance services	8,500	3,900
	20,800	11,223

Wages and salaries	1,016,842	1,264,302
Social security costs	122,892	155,408
Cost of defined contribution scheme	82,756	95,763
	1,222,490	1,515,473

The average monthly number of employees, including the directors, during the year was as follows:

	2019	2018
	No.	No.

Broking and technical	5	6
Management and administration	10	11

	15	17

Page 19


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

8.	Directors' remuneration
		2019	2018
		£	£

Directors' emoluments	251,744	292,294
Company contributions to defined contribution pension schemes	21,396	12,996
	273,140	305,290

	During the year retirement benefits were accruing to 2 directors (2018 -2) in respect of defined contribution pension schemes.
	The highest paid director received remuneration of £152,014 (2018 -£100,187).
	The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £11,897 (2018 -£9,500).

9.	Interest receivable
		2019	2018
		£	£

	Other interest receivable	8,730	3,517
		8,730	3,517

10.	Interest payable and similar expenses
		2019	2018
		£	£

Bank interest payable	2,010	4,735
Finance leases and hire purchase contracts	4,278	4,277
	6,288	9,012

Page 20


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

Corporation tax
Current tax on profits for the year	-	10,969
Adjustments in respect of previous periods	(10,968)	-
	(10,968)	10,969

Total current tax	(10,968)	10,969

Deferred tax
Origination and reversal of timing differences	(482)	(1,935)
Total deferred tax	(482)	(1,935)


	Taxation on (loss)/profit on ordinary activities	(11,450)	9,034

(Loss)/profit on ordinary activities before tax

(339,784)

16,488

(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2018 -19%)	(64,559)	3,133
Effects of:
Expenses not deductible for tax purposes, other than goodwill amortisation and impairment	1,006	6,465
Capital allowances for year in excess of depreciation	(3,957)	-
Adjustments to tax charge in respect of prior periods	27	(734)
Unrelieved tax losses carried forward	56,515	-
Deferred tax	(482)	170
Total tax charge for the year	(11,450)	9,034

Page 21


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

11.Taxation (continued)

Factors that may affect future tax charges

The taxation rate is expected to remain at 19% until 1 April 2023 when it is expected to not change for companies with profits less than £50,000, rise to 25% for companies with profits over £250,000 or companies with profits between £50,000 and £250,000 will pay tax at the main rate reduced by a marginal relief.

12.	Tangible fixed assets

	Long-term leasehold property	Fixtures and fittings	Office equipment	Total
	£	£	£	£
Cost or valuation
At 1 January 2019	39,547	86,793	207,060	333,400
Additions	-	3,963	30,543	34,506
Disposals	-	(9,781)	(68,138)	(77,919)
At 31 December 2019	39,547	80,975	169,465	289,987
Depreciation
At 1 January 2019	24,972	82,021	195,405	302,398
Charge for the year on owned assets	9,887	4,790	883	15,560
Disposals	-	(9,781)	(68,138)	(77,919)
At 31 December 2019	34,859	77,030	128,150	240,039
Net book value
At 31 December 2019	4,688	3,945	41,315	49,948
At 31 December 2018	14,575	4,772	11,655	31,002

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
	2019	2018
	£	£


Furniture, fittings and equipment	33,142	11,789
	33,142	11,789

Page 22


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

13.	Debtors
		2019	2018
		£	£

Due after more than one year
Other debtors	52,650	52,650
	52,650	52,650

					2019	2018
					£	£

Due within one year
Insurance debtors	677,239	908,944
Other debtors	96,003	6,976
Prepayments and accrued income	77,373	95,312
	850,615	1,011,232

14.	Cash and cash equivalents
		2019	2018
		£	£

Cash at bank and in hand	4,191,477	3,336,685
Less: bank overdrafts	(170,354)	(105,237)
	4,021,123	3,231,448

Included in cash at bank are Fiduciary funds totalling £3,746,632 (2018: £2,778,262) arising from insurance intermediation activities in the UK are held in non-statutory trust accounts in accordance with the regulations of the Financial Conduct Authority. No minimum balances were held for the purposes of maintaining client accounts.

Page 23


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

15.	Creditors: Amounts falling due within one year
		2019	2018
		£	£

Bank overdrafts	170,354	105,237
Insurance creditors	3,746,632	2,778,263
Corporation tax	-	10,967
Other taxation and social security	39,213	38,226
Obligations under finance lease and hire purchase contracts	21,858	9,640
Other creditors	16,447	3,915
Accruals and deferred income	387,963	409,075
	4,382,467	3,355,323

The bank overdraft facility is £200,000 and is secured by a fixed and floating charge over all the company’s assets in favour of National Westminster Bank PLC.

16.	Creditors: Amounts falling due after more than one year
		2019	2018
		£	£

Net obligations under finance leases and hire purchase contracts	28,451	13,657
	28,451	13,657

Within one year	29,660	13,918
Between 1-5 years	31,543	19,718
	61,203	33,636

Page 24


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

18.	Financial instruments
		2019	2018
		£	£

	Financial assets
	Financial assets that are debt instruments measured at amortised cost	1,624,565	968,570

	Financial liabilities
	Financial liabilities measured at amortised cost	5,143,481	3,319,787

	Financial assets that are debt instruments measured at amortised cost comprise of trade debtors and other debtors.
	Financial liabilities measured at amortised cost comprise of trade creditors, other creditors, finance leases and accruals.

19.	Deferred taxation

		2019
		£

	At beginning of year	(482)
	Charged to profit or loss	482
	At end of year	-

The deferred taxation balance is made up as follows:
	2019	2018
	£	£

	Accelerated capital allowances	-	(482)
		-	(482)

20.	Share capital
		2019	2018
		£	£

Allotted, called up and fully paid

650,000 (2018 -650,000) Ordinary shares of £1.00 each	650,000	650,000

The share capital is made up of Ordinary shares; each share carries one voting right per share but no right to fixed income.

Page 25


GRIMME BUTCHER JONES LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2019

21.

Reserves

Profit and loss account

Includes all current and prior year retained profits and losses.

22.	Pension commitments

The company operates a defined contributions pension 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 £82,756 (2018: £63,615).
Contributions totalling £6,920 (2018: £Nil) were payable to the fund at the balance sheet date and are included in creditors.

Not later than 1 year	87,750	87,750
Later than 1 year and not later than 5 years	14,625	102,375
	102,375	190,125

24.

Related party transactions

During the year the company had the following transactions with its directors:
Mr B Grimme has beneficial interests in BGI Bertil Grimme AG Insurance Brokers, incorporated in Switzerland with a branch in Germany, which traded with the company. During the year brokerage earned from this party amounted to £203,893 (2018: £1,003,969). At the balance sheet date, BGI Bertil Grimme AG was indebted to the company in the total of £1,047,337 (2018: £1,334,298).
During the year, commission of £50,000 (2018: £60,000) was payable to those overseas companies. At the reporting date no commission remained outstanding (2018: £Nil).

25.	Post balance sheet events

The outbreak of COVID-19 pandemic is considered to be a non-adjusting post balance sheet event. A reliable estimate of the financial effect cannot be made but the directors have undertaken a threshold condition review of likely financial impacts (best, anticipated and worst) of the outbreak, and are comfortable with the resilience of the company at the current time.

26.	Controlling party

The ultimate controlling party is Mr B Grimme.

Page 26