Circle 1991 Limited - Limited company accounts 20.1

REGISTERED NUMBER: 12508077 (England and Wales)

FOR

Page

Company Information  

1

Report of the Directors  

2

Consolidated Income Statement  

3

Consolidated Statement of Financial Position  

4

Company Statement of Financial Position  

6

Notes to the Consolidated Financial Statements

7

DIRECTORS:

A J Norcott

Ms K A Egan

J Shields

P D Jones

Ms L Claro

SECRETARY:

Ms E L Ainscough

REGISTERED OFFICE:

118 Holyhead Road

Coventry

CV1 3LY

REGISTERED NUMBER:

12508077 (England and Wales)

ACCOUNTANTS:

Clive Shedd & Co

Chartered Accountants

232 Sladepool Farm Road

Birmingham

B14 5EE

The directors present their report with the financial statements of the company and the group for the period 10 March 2020 to 30 April 2021.

COMMENCEMENT OF TRADING

The company was incorporated on 10 March 2020 as Circle 1999 Limited and changed its name to Circle 1991 Limited on 11 March 2020.

Following a share exchange agreement with the shareholders of Circle Insurance Services Limited, effective from 1 May 2020, Circle 1991 Limited became the holding company of the Circle Insurance Services Limited group of companies. These financial statements accordingly reflect the trading results of the group for the year ended 30 April 2021.

Consolidated financial statements for the year ended 30 April 2020 and earlier financial years have been published by Circle Insurance Services Limited.

PRINCIPAL ACTIVITY

DIRECTORS

The directors who have held office during the period from 10 March 2020 to the date of this report are as follows:

A J Norcott - appointed 10 March 2020

Ms K A Egan - appointed 25 June 2020

J Shields - appointed 25 June 2020

P D Jones - appointed 25 June 2020

Ms L Claro - appointed 25 June 2020

The group maintains directors' and officers' liability insurance which gives appropriate cover for any legal action brought against its directors.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

A J Norcott - Director

11 November 2021

TURNOVER

7,873,903

Cost of sales

166,202

GROSS PROFIT

7,707,701

Administrative expenses

7,621,440

86,261

Other operating income

278,128

OPERATING PROFIT

5

364,389

Interest receivable and similar income

26,275

Interest payable and similar expenses

6

(5,038

)

PROFIT BEFORE TAXATION

385,626

Tax on profit

7

104,703

PROFIT FOR THE FINANCIAL PERIOD

280,923

Profit attributable to:

Owners of the parent

280,923

FIXED ASSETS

Intangible assets

9

747,372

Tangible assets

10

273,901

Investments

11

389

1,021,662

CURRENT ASSETS

Debtors

12

869,878

Cash at bank

1,311,191

2,181,069

CREDITORS

Amounts falling due within one year

13

1,068,725

NET CURRENT ASSETS

1,112,344

TOTAL ASSETS LESS CURRENT

LIABILITIES

2,134,006

CREDITORS

Amounts falling due after more than one

year

14

416,033

NET ASSETS

1,717,973

CAPITAL AND RESERVES

Called up share capital

16

50,000

Retained earnings

1,667,973

SHAREHOLDERS' FUNDS

1,717,973

The company and the group are entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 30 April 2021.

The members have not required the company and the group to obtain an audit of its financial statements for the period ended 30 April 2021 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)

ensuring that the group keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company and the group as at the end of each financial year and of the group's profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company and the group.

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

The financial statements were approved by the Board of Directors and authorised for issue on 11 November 2021 and were signed on its behalf by:

A J Norcott - Director

FIXED ASSETS

Intangible assets

9

-

Tangible assets

10

-

Investments

11

865,219

865,219

CREDITORS

Amounts falling due within one year

13

618,919

NET CURRENT LIABILITIES

(618,919

)

TOTAL ASSETS LESS CURRENT

LIABILITIES

246,300

CAPITAL AND RESERVES

Called up share capital

16

50,000

Retained earnings

196,300

SHAREHOLDERS' FUNDS

246,300

Company's profit for the financial year

196,300

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 30 April 2021.  

The members have not required the company to obtain an audit of its financial statements for the period ended 30 April 2021 in accordance with Section 476 of the Companies Act 2006.  

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

The financial statements were approved by the Board of Directors and authorised for issue on 11 November 2021 and were signed on its behalf by:

A J Norcott - Director

1.

STATUTORY INFORMATION

Circle 1991 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.

STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006.

3.

ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the measurement of listed investments at fair value.

The group's functional and presentation currency is the pound sterling, rounded to the nearest £.

Basis of consolidation

The consolidated financial statements incorporate the results of the company and all of it's subsidiary undertakings using the merger method of accounting, following a share exchange agreement with the shareholders of Circle Insurance Services Limited of 118 Holyhead Road, Coventry CV1 3LY, effective from 1 May 2020. The merger method of accounting includes the assets and liabilities of the acquired business at their existing carrying values. The ultimate controlling party of the group, both before and after the share exchange agreement, is A J Norcott.

These financial statements reflect the trading results of the group for the year ended 30 April 2021.

Significant judgements and estimates

In preparing these financial statements the group's management make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the statement of financial position date and the amounts reported in the income statement for the period under review.

The nature of estimates means that the actual outcome could differ and the group's management consider there are no estimates or assumptions that have a significant risk of causing a material adjustment to the amounts reported for assets and liabilities within the next financial year.

The group's management also consider the future cash requirements of the group and its available resources in order to ensure that the going concern basis used in the preparation of these financial statements is appropriate for the foreseeable future.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Fee, commission and brokerage income includes initial income receivable on the commencement of a new policy or investment product which are recognised when the policy or product goes on risk.  Fee and commission income also includes on-going fees which are recognised as the services are provided and renewal commissions which are recognised on receipt when earned.

Goodwill

The difference between the fair value of consideration given and the fair value of the net assets of entities acquired is accounted for as goodwill. Amortisation is provided so as to write off goodwill evenly over its estimated useful life of ten years.

Tangible fixed assets

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

Land and buildings

-

not provided

Plant and machinery etc

-

10% to 50% on cost and 15% to 25% on reducing balance

The group's practice is to maintain its land and buildings in a continual state of repair and refurbishment such that the residual value is at least equal to its book value. Consequently a depreciation charge is considered to be immaterial.

Tangible fixed assets are initially recorded at cost.

Fixed asset investments

Listed investments are measured at fair value with changes in fair value recognised in profit or loss.  All other investments are measured at cost less impairment.

Financial instruments

Basic financial assets and liabilities are initially recognised at transaction price and are subsequently measured at amortised cost.

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods.  It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

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

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position date.  Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position and are depreciated over their estimated useful lives. The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. 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 group contributes to defined contribution pension schemes for its employees.  Contributions payable are charged to profit or loss in the period to which they relate.

Employee benefits

When employees have rendered service to the group, short-term employee benefits to which the employees are entitled are recognised at the amount expected to be paid in exchange for that service.

4.

EMPLOYEES AND DIRECTORS

The average number of employees during the period was 113 .

5.

OPERATING PROFIT

The operating profit is stated after charging/(crediting):

£   

Other operating leases

153,712

Depreciation - owned assets

23,804

Depreciation - assets on hire purchase contracts

21,748

Profit on disposal of fixed assets

(4,152

)

Goodwill amortisation

146,119

Foreign exchange differences

3,783

Pension costs

530,006

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

£   

Bank interest

574

Other interest

821

Hire purchase interest

3,643

5,038

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the period was as follows:

£   

Current tax:

UK corporation tax

107,778

Deferred tax

(3,075

)

Tax on profit

104,703

8.

INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

9.

INTANGIBLE FIXED ASSETS

Group

Goodwill

£   

COST

Merger accounting existing carrying value

2,300,518

At 30 April 2021

2,300,518

AMORTISATION

Charge for period

146,119

Merger accounting existing carrying value

1,407,027

At 30 April 2021

1,553,146

NET BOOK VALUE

At 30 April 2021

747,372

10.

TANGIBLE FIXED ASSETS

Group

Plant and

Land and

machinery

buildings

etc

Totals

£   

£   

£   

COST

Additions

-

2,411

2,411

Disposals

-

(113,288

)

(113,288

)

Merger accounting existing carrying value

150,214

555,114

705,328

At 30 April 2021

150,214

444,237

594,451

DEPRECIATION

Charge for period

-

45,552

45,552

Eliminated on disposal

-

(85,217

)

(85,217

)

Merger accounting existing carrying value

-

360,215

360,215

At 30 April 2021

-

320,550

320,550

NET BOOK VALUE

At 30 April 2021

150,214

123,687

273,901

11.

FIXED ASSET INVESTMENTS

Group

Listed

investments

£   

COST

Merger accounting existing

carrying value

389

At 30 April 2021

389

NET BOOK VALUE

At 30 April 2021

389

Market value of listed investments at 30 April 2021 - £ 389 .

Company

Shares in

group

undertakings

£   

COST

Additions

865,219

At 30 April 2021

865,219

NET BOOK VALUE

At 30 April 2021

865,219

The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following:

Subsidiaries

Circle Insurance Services Limited

Registered office: 118 Holyhead Road, Coventry CV1 3LY

Nature of business: Insurance broking

%

Class of shares:

holding

Ordinary

100.00

Circle Financial Services Limited

Registered office: 118 Holyhead Road, Coventry CV1 3LY

Nature of business: Independent financial advisers

%

Class of shares:

holding

Ordinary

100.00

Mercia Underwriting Solutions Ltd

Registered office: 6 Lloyd's Avenue, London EC3N 3AX

Nature of business: Insurance underwriters

%

Class of shares:

holding

Ordinary

100.00

Circle Specialist Services Ltd

Registered office: 118 Holyhead Road, Coventry CV1 3LY

Nature of business: Unregulated advice and expert witness services

%

Class of shares:

holding

Ordinary

100.00

The shares in Circle Specialist Services Ltd are all held by Circle Financial Services Limited (who is also a wholly owned subsidiary of Circle 1991 Limited).

Creative Risk Solutions Ltd

Registered office: Pod 1, Capital Shopping Park, Leckwith Road, Cardiff CF11 8EG

Nature of business: Insurance broking

%

Class of shares:

holding

Ordinary

100.00

The shares in Creative Risk Solutions Ltd are all held by Circle Insurance Services Limited (who is also a wholly owned subsidiary of Circle 1991 Limited).

Circle Insurance Services (Nottingham) Ltd

Registered office: 118 Holyhead Road, Coventry CV1 3LY

Nature of business: Non trading

%

Class of shares:

holding

Ordinary

100.00

The shares in Circle Insurance Services (Nottingham) Ltd are all held by Circle Insurance Services Limited (who is also a wholly owned subsidiary of Circle 1991 Limited).

Yihu Properties Ltd

Registered office: 118 Holyhead Road, Coventry CV1 3LY

Nature of business: Non trading

%

Class of shares:

holding

Ordinary

100.00

The shares in Yihu Properties Ltd are all held by Circle Insurance Services Limited (who is also a wholly owned subsidiary of Circle 1991 Limited).

Creative Commercial Insurance Brokers Limited

Registered office: Pod 1, Capital Shopping Park, Leckwith Road, Cardiff CF11 8EG

Nature of business: Non trading

%

Class of shares:

holding

Ordinary

100.00

The shares in Creative Commercial Insurance Brokers Limited are all held by Circle Insurance Services Limited (who is also a wholly owned subsidiary of Circle 1991 Limited).

12.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR