Ten Insurance Services Limited - Limited company accounts 23.2
Ten Insurance Services Limited - Limited company accounts 23.2
| REGISTERED NUMBER: |
| STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
| FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022 |
| FOR |
| TEN INSURANCE SERVICES LIMITED |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| CONTENTS OF THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| Page |
| Company Information | 1 |
| Strategic Report | 2 |
| Report of the Directors | 5 |
| Report of the Independent Auditors | 7 |
| Statement of Comprehensive Income | 10 |
| Balance Sheet | 11 |
| Statement of Changes in Equity | 12 |
| Notes to the Financial Statements | 13 |
| TEN INSURANCE SERVICES LIMITED |
| COMPANY INFORMATION |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Statutory Auditors |
| 605 Albert House |
| 256-260 Old Street |
| London |
| EC1V 9DD |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| Introduction |
| The Directors present their Strategic report for the year ended 31 December 2022. |
| BUSINESS REVIEW |
| During the 2022 financial period, the economy saw an increase in recovery from the effects of the pandemic, and the market hardening with premium increases. |
| During the first quarter, the company saw a gradual return to normal working conditions with all employees moving back to our office locations by March 2022. In August 2022, and with the benefit of the experience of mandated home working a Hybrid working policy was implemented. The policy focused on customer outcomes, network security, and employee work-life balance. A review of our location footprint resulted in the move from Princes Risborough to Aylesbury, with closure of the Glasglow office in the final quarter of 2022. |
| The Company saw a decline in trading revenues to £14,411m (2021: £15.073m) and a slight decrease in gross profit to £3.664m (2021: £3.73m).However, our overall trading net profit saw an increase to £288,693 ((£110,607) in 2021). Our network strategy continues to focus on acquiring and retaining appointed representatives who write good quality commercial business sharing a likeminded ethos, with customer centricity at the heart of their businesses. To do this, we have continued focusing on creating good customer outcomes within a strong regulatory framework. The net result has been stable with member numbers, further consolidating our position as the market leading Network for Appointed Representatives. |
| Strategic Review |
| During 2022 the company began to recognise and reap the benefits from the strategic review previously undertaken, returning a strong profit and a strengthened cashflow. |
| Technology- During the period our focus turned to in house software developments delivering process automation and standardisation, enhancing quality controls, exception reporting and real time visibility across the organisation. High quality, trusted data is driving better business decisions, enhanced customer service and operational efficiencies. |
| Our relationship with our finance provider Close Brothers has continued to prosper which in turn has delivered significant ongoing benefits in loan arrangements for our customers. By the end of the reporting period, we financed over £18m. |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The directors consider that the main business risks and uncertainties of the Company are: |
| - The recruitment & appointment of key staff affecting the Company; |
| - Adapting to market changing conditions quickly; |
| - The ever-increasing pressure from cyber crime; |
| - The retention of quality Appointed Representatives; |
| - Regulation and compliance from the Financial Conduct Authority; |
| - Adapting to increasing network competition |
| The Company continues to reward and encourage its staff by investing in training and development. As the main trading Company, the Company has maintained its Chartered Status awarded by the professional body, the Chartered Insurance Institute (CII). |
| Investment will continue to be made in technology and people to manage and develop our range of services, while producing profitable results. Our Appointed Representatives receive strong support in many areas to assist in running their businesses and, as a result, our retention rates remain high. |
| The Company continues to invest heavily in compliance support and training in association with professional external consultants who support us in our role of keeping the business and Appointed Representatives informed and in-line with compliance and regulatory requirements. |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| STRATEGIC REPORT |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| FINANCIAL REVIEW |
| The Company uses a range of performance measures to monitor and manage the business effectively. These are both financial and non-financial and the most significant of these are the key performance indicators below (KPI's). |
| The key financial performance indicators are turnover, gross profit, operating profit and the number of effective and regulatory compliant Appointed Representatives. These KPI's indicate the volume of work the Company has undertaken as well as the efficiency and profitability with which this work has been delivered. |
| The key performance indicators for the period ended 31 December 2022 are set out below: |
| 2022 | 2021 |
| £ | £ |
| Turnover (£ ) | 14,411 | 15,073 |
| Gross profit (£ ) | 3,665 | 3,727 |
| Gross profit margin (%) | 25 | 25 |
| Staff costs (£ ) | 1,672 | 1,839 |
| Staff costs as a percentage of turnover (%) | 12 | 12 |
| Operating profit before exceptional items (£ ) | 363 | 126 |
| Operating profit margin before exceptional items (%) | 10 | 1 |
| Operating (loss) after exceptional items (£ ) | 357 | -71 |
| Net assets (£ ) | 1,182 | 821 |
| Average number of employees | 46 | 54 |
| Number of appointed representatives | 96 | 96 |
| ON BEHALF OF THE BOARD: |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| PRINCIPAL ACTIVITY |
| The principal activity of the company in the year under review was that of |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 December 2022. |
| FUTURE DEVELOPMENTS |
| The Board is committed to continue building an effective, compliant, and profitable business supporting a network of Appointed Representatives across the UK, each of whom bring complimentary benefits to the business. The focus for the future will be to continue to strengthen our regulatory framework, working closer with our Appointed Representatives to continue to deliver good customer outcomes. |
| EVENTS SINCE THE END OF THE YEAR |
| On 6 June 2023, the Company reached agreement in principle with Acrisure UK Broking Limited for the terms of a recommended cash offer for the entire issued ordinary share capital of the Company. |
| DIRECTORS |
| The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
| Other changes in directors holding office are as follows: |
| GOING CONCERN |
| Whilst competition has grown in our field of operation, the business continues to provide a wide range of insurance products and offers strong support to our members, resulting in an offset of downturns in some lines of business with upturns in others. We believe that strong relationships across the network will bring significant benefits for Appointed Representatives, their customers, and the Company. During the year, the business continued to implement and amend its robust business continuity plan successfully with no interruptions to the business arising. We have implemented additional frameworks to further support our regulatory responsibilities both to the FCA and our customers. |
| The Directors have prepared forecasts until 31 December 2025 and are satisfied that the company will be able to pay its debts as they fall due. These accounts have therefore been prepared on a going concern basis, and the Directors consider it appropriate to presume that the Company will continue in business. |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| REPORT OF THE DIRECTORS |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 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), 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 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
| AUDITORS |
| The auditors, Sedulo Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
| ON BEHALF OF THE BOARD: |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| TEN INSURANCE SERVICES LIMITED |
| Opinion |
| We have audited the financial statements of Ten Insurance Services Limited (the 'company') for the year ended 31 December 2022 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 2022 and of its profit 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. |
| 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| TEN INSURANCE SERVICES LIMITED |
| 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 six, 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 a Report of the Auditors 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. |
| Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Extent to which the audit was capable of detecting irregularities, including fraud |
| The primary responsibility for the prevention and detection of fraud rests with directors and management, and we cannot be expected to detect non-compliance with all laws and regulations. |
| We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our knowledge of the business and sector, enquiries of directors and management, and review of regulatory information and correspondence. We communicated identified laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit. |
| We discussed with directors and management the policies and procedures in place to ensure compliance with laws and regulations and otherwise prevent, deter and detect fraud. |
| Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations identified as potentially having a material effect on the financial statements. Our procedures included review of financial statement information and testing of that information, enquiry of management and examination of relevant documentation, analytical procedures to identify unusual or unexpected relationships that may indicate fraud, and procedures to address the risk of fraud through director or management override of controls. |
| 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. |
| REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
| TEN INSURANCE SERVICES LIMITED |
| 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. |
| for and on behalf of |
| Statutory Auditors |
| 605 Albert House |
| 256-260 Old Street |
| London |
| EC1V 9DD |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| STATEMENT OF COMPREHENSIVE INCOME |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 31.12.22 | 31.12.21 |
| Notes | £ | £ | £ | £ |
| TURNOVER |
| Cost of sales |
| GROSS PROFIT |
| Exceptional items |
| Administrative expenses |
| 3,307,924 | 3,805,368 |
| 356,962 | (78,017 | ) |
| Other operating income |
| OPERATING PROFIT/(LOSS) | 5 | ( |
) |
| Interest receivable and similar income |
| 377,581 | (60,643 | ) |
| Interest payable and similar expenses | 8 |
| PROFIT/(LOSS) BEFORE TAXATION | ( |
) |
| Tax on profit/(loss) | 9 |
| PROFIT/(LOSS) FOR THE FINANCIAL YEAR | ( |
) |
| OTHER COMPREHENSIVE INCOME |
| TENT Contribution | ( |
) | ( |
) |
| Income tax relating to other comprehensive income |
| OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
( |
) |
( |
) |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| BALANCE SHEET |
| 31 DECEMBER 2022 |
| 31.12.22 | 31.12.21 |
| Notes | £ | £ | £ | £ |
| FIXED ASSETS |
| Tangible assets | 10 |
| CURRENT ASSETS |
| Debtors | 11 |
| Cash in hand |
| CREDITORS |
| Amounts falling due within one year | 12 |
| NET CURRENT ASSETS |
| TOTAL ASSETS LESS CURRENT LIABILITIES |
| CREDITORS |
| Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
| PROVISIONS FOR LIABILITIES | 16 | ( |
) |
| NET ASSETS |
| CAPITAL AND RESERVES |
| Called up share capital | 17 |
| Share premium | 18 |
| Capital redemption reserve | 18 |
| Retained earnings | 18 |
| SHAREHOLDERS' FUNDS |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| STATEMENT OF CHANGES IN EQUITY |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| Called up | Capital |
| share | Retained | Share | redemption | Total |
| capital | earnings | premium | reserve | equity |
| £ | £ | £ | £ | £ |
| Balance at 1 January 2021 |
| Changes in equity |
| Deficit for the year | - | (101,425 | ) | - | - | (101,425 | ) |
| Other comprehensive income | - | (9,182 | ) | - | (9,182 | ) |
| Total comprehensive income | - | ( |
) | - | ( |
) |
| Balance at 31 December 2021 |
| Changes in equity |
| Profit for the year | - | 305,789 | - | - | 305,789 |
| Other comprehensive income | - | (17,096 | ) | - | (17,096 | ) |
| Total comprehensive income | - | - |
| Balance at 31 December 2022 |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 1. | GENERAL INFORMATION |
| TEn Insurance Services Limited is a company limited by share capital incorporated in England and Wales. The company number is 05225049. The company's registered office is Lancashire Gate, 21 Tiviot Dale, Stockport, SK1 1TD, and its principal place of business is Suite 57, Midshires Summer House, Smeaton Close, Aylesbury, HP19 8HL. |
| The principal activity of the company for the year under review was that of insurance broking. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparing the financial statements |
| The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £. |
| Financial Reporting Standard 102 - reduced disclosure exemptions |
| The company has taken advantage of the following disclosure exemptions 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; |
| • | the requirement of paragraph 3.17(d); |
| • | the requirement of paragraph 33.7. |
| This information is included in the consolidated financial statements of Ten Operations, Services and Holdings Limited at 31 December 2022 and these financial statements may be obtained from the Registrar. |
| Going concern |
| The business continues to provide a wide range of insurance products and offers strong support to its members, resulting in an offset of downturns in some lines of business with upturns in others. The directors believe that strong relationships across the network will bring significant benefits for Appointed Representatives, their customers, and the Company. During the year, the business continued to implement and amend its robust business continuity plan successfully with no interruptions to the business arising. Additional frameworks have been implemented to further support the regulatory responsibilities both to the FCA and the Company's customers. |
| The Directors have prepared forecasts until 31 December 2025 and are satisfied that the Company will be able to pay its debts as they fall due. These accounts have therefore been prepared on a going concern basis, and the Directors consider it appropriate to presume that the Company will continue in business. |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Turnover |
| Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
| Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as at fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
| Rendering of services |
| Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
| - the amount of revenue can be measured reliably; |
| - it is probable that the Company will receive the consideration due under the contract; |
| -the stage of completion of the contract at the end of the reporting period can be measured reliably; and |
| -the costs incurred and the costs to complete the contract can be measured reliably. |
| Revenue receivable on insurance contracts that the company assists in executing is recognised when the associated insurance policy activities. |
| Other revenue is recognised in the period to which it relates. |
| Interest income |
| Interest income is recognised in profit or loss using the effective interest method. |
| 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. |
| Borrowing costs |
| All borrowing costs are recognised in profit or loss in the year in which they are incurred |
| 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. |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| 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 | 10% straight line |
| Motor vehicles | 20% straight line |
| Fixtures and fittings | 25% straight line |
| Computer equipment | 25% 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. |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The group has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
| Financial instruments are recognised in the company's balance sheet when the group becomes party to the contractual provisions of the instrument. |
| Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
| Basic financial assets |
| Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
| Other financial assets |
| Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. |
| Impairment of financial assets |
| Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. |
| Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. |
| If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss. |
| Derecognition of financial assets |
| Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. |
| Classification of financial liabilities |
| Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Basic financial liabilities |
| Basic financial liabilities, including creditors and loans are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
| Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. |
| Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
| Other financial liabilities |
| Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge. |
| Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy. |
| Derecognition of financial liabilities |
| Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled. |
| Equity instruments |
| Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group. |
| 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. |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Deferred tax |
| 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. |
| 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 nonmonetary 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 Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. |
| 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'sbenefit from the use of the leased asset. |
| 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. |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 2. | ACCOUNTING POLICIES - continued |
| Exceptional items |
| Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence. |
| 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. |
| 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. |
| 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. |
| 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. |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
| Preparation of the financial statements requires management to make significant judgements and estimates that affect amounts recognised for assets and liabilities at the reporting date and the amounts of revenue and expenses incurred during the reporting period. Actual outcomes may differ from these judgements, estimates and assumptions. The judgements, estimates and assumptions that have the most significant effect on the carrying value of assets and liabilities of the Company as at 31 December 2022 are discussed below: |
| Estimates- Provisions against insurance debtors |
| Debtor recovery is largely delegated to the company's appointed representatives who won the business. During the year, management reviewed a number of debtor accounts to determine whether any provisions were required. In total, a provision of £65,479 (2021: £41,479) was recognised against insurance debtors. |
| Judgements- Income recognition |
| Management review all income streams, and, where material, make appropriate adjustments in respect of effective dates when compared to invoice dates, and for other income (such as profit share) when it is due in a different period to which it is received. |
| 4. | EMPLOYEES AND DIRECTORS |
| 31.12.22 | 31.12.21 |
| £ | £ |
| Wages and salaries |
| Social security costs |
| Other pension costs |
| The average number of employees during the year was as follows: |
| 31.12.22 | 31.12.21 |
| Administration | 15 | 21 |
| Broking staff | 24 | 28 |
| Management | 7 | 5 |
| 2022 | 2021 |
| £ | £ |
| Directors' emoluments | 350,066 | 239,287 |
| Company contributions to defined contribution pension schemes | 14,274 | 10,476 |
| 364,340 | 249.763 |
| During the year retirement benefits were accruing to 4 directors (2021-4) in respect of defined contribution schemes. |
| The highest paid director received remuneration of £84,150 (2021- £88,335). |
| The value of the company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £4,208 (2021- £4,308). |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 5. | OPERATING PROFIT/(LOSS) |
| The operating profit (2021 - operating loss) is stated after charging/(crediting): |
| 31.12.22 | 31.12.21 |
| £ | £ |
| Other operating leases |
| Depreciation - owned assets |
| Profit on disposal of fixed assets | ( |
) |
| Foreign exchange differences |
| 6. | AUDITORS' REMUNERATION |
| 31.12.22 | 31.12.21 |
| £ | £ |
| Fees payable to the company's auditors for the audit of the company's financial statements |
34,860 |
49,716 |
| The Company has taken advantage of the exemption not to disclose amounts paid for non audit services as these are disclosed in the group accounts of the parent Company. |
| 7. | EXCEPTIONAL ITEMS |
| 31.12.22 | 31.12.21 |
| £ | £ |
| Exceptional items | (6,472 | ) | (196,755 | ) |
| 8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
| 31.12.22 | 31.12.21 |
| £ | £ |
| Bank interest loan payable |
| Other interest- on overdue tax |
| 9. | TAXATION |
| Analysis of the tax charge |
| The tax charge on the profit for the year was as follows: |
| 31.12.22 | 31.12.21 |
| £ | £ |
| Current tax: |
| UK corporation tax |
| Prior period adjustments | - | 256 |
| Total current tax |
| Deferred tax | ( |
) | ( |
) |
| Tax on profit/(loss) |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 9. | TAXATION - continued |
| Reconciliation of total tax charge 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: |
| 31.12.22 | 31.12.21 |
| £ | £ |
| Profit/(loss) before tax | ( |
) |
| Profit/(loss) multiplied by the standard rate of corporation tax in the UK of |
( |
) |
| Effects of: |
| Expenses not deductible for tax purposes |
| Adjustments to tax charge in respect of previous periods |
| Effects of tax rate changes | (2,914 | ) | 250 |
| Group relief claimed | (12 | ) | - |
| Super deduction expenditure | (380 | ) | (209 | ) |
| Total tax charge | 71,792 | 25,634 |
| Tax effects relating to effects of other comprehensive income |
| 31.12.22 |
| Gross | Tax | Net |
| £ | £ | £ |
| TENT Contribution | ( |
) | - | (17,096 | ) |
| 31.12.21 |
| Gross | Tax | Net |
| £ | £ | £ |
| TENT Contribution | ( |
) | - | (9,182 | ) |
| Factors that may affect future tax charges |
| The main rate of corporation tax is due to increase to 25% in the tax year commencing 1 April 2023 for companies where profits exceed £250,000. A tapered rate will be introduced for profits above £50,000 up to the £250,000 limit. |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 10. | TANGIBLE FIXED ASSETS |
| Long-term | Fixtures |
| leasehold | and | Computer |
| property | fittings | equipment | Totals |
| £ | £ | £ | £ |
| COST |
| At 1 January 2022 |
| Additions |
| Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
| At 31 December 2022 |
| DEPRECIATION |
| At 1 January 2022 |
| Charge for year |
| Eliminated on disposal | ( |
) | ( |
) | ( |
) | ( |
) |
| At 31 December 2022 |
| NET BOOK VALUE |
| At 31 December 2022 |
| At 31 December 2021 |
| 11. | DEBTORS |
| 31.12.22 | 31.12.21 |
| £ | £ |
| Amounts falling due within one year: |
| Insurance debtors |
| Amounts owed by group undertakings |
| Other debtors |
| Deferred tax asset |
| Prepayments and accrued income |
| Amounts falling due after more than one year: |
| Amounts owed by joint ventures |
| Aggregate amounts |
| Deferred tax asset |
| 31.12.22 |
| £ |
| Accelerated capital allowances |
| Other timing differences | 8,434 |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
| 31.12.22 | 31.12.21 |
| £ | £ |
| Other loans (see note 14) |
| Insurance creditors |
| Tax |
| Social security and other taxes |
| Other creditors |
| Accruals and deferred income |
| 13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
| 31.12.22 | 31.12.21 |
| £ | £ |
| Other loans (see note 14) |
| 14. | LOANS |
| An analysis of the maturity of loans is given below: |
| 31.12.22 | 31.12.21 |
| £ | £ |
| Amounts falling due within one year or on demand: |
| Other loans |
| Amounts falling due between two and five years: |
| Other loans - 2-5 years |
| 15. | LEASING AGREEMENTS |
| Minimum lease payments under non-cancellable operating leases fall due as follows: |
| 31.12.22 | 31.12.21 |
| £ | £ |
| Within one year |
| Between one and five years |
| 16. | PROVISIONS FOR LIABILITIES |
| 31.12.21 |
| £ |
| Deferred tax |
| Accelerated capital allowances |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 16. | PROVISIONS FOR LIABILITIES - continued |
| Deferred |
| tax |
| £ |
| Balance at 1 January 2022 |
| Provisions | (6,000 | ) |
| Tangible assets | (3,708 | ) |
| Pensions | (2,434 | ) |
| Balance at 31 December 2022 | ( |
) |
| 17. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 31.12.22 | 31.12.21 |
| value: | £ | £ |
| Ordinary shares | 1 | 93,500 | 93,500 |
| 18. | RESERVES |
| Share premium account |
| The share premium account represents the premium paid on top of the nominal value of shares. |
| Capital redemption reserve |
| The capital redemption reserve represents the nominal value of share capital that has been redeemed by the company. |
| Profit and loss account |
| The profit and loss account comprises all current and prior year retained profits and losses. |
| 19. | 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 £67,676 (2021: £70,335). |
| TEN INSURANCE SERVICES LIMITED (REGISTERED NUMBER: 05225049) |
| NOTES TO THE FINANCIAL STATEMENTS - continued |
| FOR THE YEAR ENDED 31 DECEMBER 2022 |
| 20. | RELATED PARTY DISCLOSURES |
| The company has taken advantage of the exemption available under the provisions of Section 33 of FRS 102, and has not disclosed transactions between companies that are wholly owned by its ultimate parent. |
| Included in debtors due in more than one year are amounts of £456,000 (2021: £456,000) owed by The Enterprise Network Trust, a Trust which has a controlling shareholding in the group's ultimate parent as described in note 26. Contributions of £41,096 (2021: £9,182) were made to The Enterprise Network Trust as disclosed in the Statement of comprehensive income. |
| During the year, commissions of £nil (2021: £1,092) were paid to an entity where common significant influence existed. £nil was owed to that entity at year end (2021: £nil) |
| 21. | POST BALANCE SHEET EVENTS |
| On 6 June 2023, the Company reached agreement in principle with Acrisure UK Broking Limited for the terms of a recommended cash offer for the entire issued ordinary share capital of the Company. |
| 22. | ULTIMATE CONTROLLING PARTY |
| The ultimate parent company is Ten Operations, Services and Holdings Limited, by virtue of its 100% ownership of the voting share capital. |
| The ultimate controlling party is The Enterprise Network Trust by virtue of its controlling shareholding of the ultimate parent company. |