Company Registration No. 01115635 (England and Wales)
BERKELEY INSURANCE GROUP UK LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
30 JUNE 2018
BERKELEY INSURANCE GROUP UK LIMITED
COMPANY INFORMATION
Directors
A S Bedford
T P Maxted
D J Moss
J Yeeles
S Hull
Secretary
J Yeeles
Company number
01115635
Registered office
2 Colton Square
Leicester
LE1 1QH
Auditor
Newby Castleman LLP
West Walk Building
110 Regent Road
Leicester
LE1 7LT
Business address
2 Colton Square
Leicester
LE1 1QH
BERKELEY INSURANCE GROUP UK LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Independent auditor's report
5 - 6
Statement of income and retained earnings
7
Balance sheet
8
Statement of cash flows
9
Notes to the financial statements
10 - 20
BERKELEY INSURANCE GROUP UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2018
- 1 -
The directors present the strategic report and financial statements for the year ended 30 June 2018. The principal activity of the company continued to be that of general insurance brokers.
Review of the business
Company turnover was up for the year at £5,948,148 (2017: £5,703,503), with operating profit increasing to £1,840,007 for the year (2017: £211,376).
The insurance sector remains incredibly competitive and the company has been particularly affected during the year by the strategic development plans of insurers, with direct customer engagement tending to be their own long term strategic goal. This in turn is driving a reduction to margins within the insurance broker market, with commissions and other payments payable by insurers being placed under constant scrutiny within those organisations.
In order to maintain its position in the broker market the company continues to increase its investment in marketing, staffing and IT infrastructure in order to respond to these market pressures. The expectation is that there will be a need to increase this investment in the future.
The company’s business model has always been centred on delivering excellent client service, which is something that it prides itself on, and the company’s strategic plan builds upon this in to the future. This focus on quality does however come at a cost, albeit one that is considered to provide a satisfactory level of return at the current time.
Corporate responsibility
The company takes its responsibility for supporting the community extremely seriously.
The company actively support various charities within our community, both on a corporate basis and on a more individual level by many employees.
Whilst several charities are supported on an ad hoc basis the company also have a staff elected charitable partner each year.
Environmental (including paperless working) and recycling policies are in place to reduce the use of resources and recycle materials where practicable.
Principal risks and uncertainties
1. Competitive Pressures
Competitive pressure in the UK insurance market is a continuing risk for the company. This could result in the loss of clients and therefore revenue to competitors. It is accepted that the company has particular exposure to a small number of clients who contribute substantial income. The directors manage this risk by ensuring that the company continues to deliver value to clients and by ensuring that market leading and exclusive products are made available wherever possible. The directors also place significant focus upon managing key client relationships.
The company regularly reviews the product range that it offers in order to ensure that clients and prospects demands and needs are sufficiently met.
Competitive pressures within the market are also having an impact upon the revenues paid to the company by insurers. The directors place significant emphasis upon managing insurer relationships in order to mitigate this risk to the company.
BERKELEY INSURANCE GROUP UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 2 -
2. Regulatory
The company is directly regulated by the Financial Conduct Authority (FCA).
The FCA has prescribed methods by which the company are to conduct business. The failure to satisfy the FCA that we are in compliance with their requirements can result in disciplinary actions, fines, reputational damage and financial harms.
In order to mitigate this risk the company has an established compliance framework to ensure all regulatory requirements are met. Reviews and file audits of compliance with FCA requirements are conducted on a regular basis by both internal staff and a retained external compliance consultant.
Advice is also sought from external compliance consultants to ensure that operational procedures satisfy FCA requirements.
3. Risk Management
The company is at risk to lawsuits and other proceedings relating principally to alleged errors and omissions in connection with the placement of insurance on behalf of clients.
This risk is mitigated by the ongoing training of staff, both in technical insurance matters and client management. Specific training is also provided in the avoidance of errors and omissions.
In addition, the company purchases significant professional indemnity insurance in order to protect itself against the financial consequences of such claims.
4. The company is at risk of cyber-attack and fraud
As with any business in this era the company is at the risk of cyber security breaches or failures.
This risk is mitigated by regularly updating security procedures and safeguards, including the regular training of staff, and the purchase of sufficient cyber protection insurance.
5. Reliance upon insurance broking IT platform
The company is at risk due to its reliance upon its insurance broking IT platform (Acturis). This platform stores all client and prospecting data at both a client and policy level.
The fail safes for this system are reviewed by the business regularly, including a full review of the internal robustness and data recovery elements of the system’s supplier. The supplier regularly undertakes data recovery tests within a sandbox environment in order to review their own systems and procedures. All tests of this nature have been successful.
6. Disaster at the company’s premises
The directors recognise that the company is at risk in the event of an occurrence such as a fire or flood at its premises.
The company’s disaster recovery plan is under constant review and is updated as necessary. The directors are confident that adherence to this plan will mitigate the potential impact of such an event.
In addition, the management team is required by the directors to review risk continually and, whilst it is impossible to eliminate risk entirely, the directors are confident that controls are in place to protect the company from the impact of the same.
Appropriate insurance protection is also purchased to protect the company from the financial consequences of such an event.
BERKELEY INSURANCE GROUP UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 3 -
T P Maxted
Director
22 March 2019
BERKELEY INSURANCE GROUP UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2018
- 4 -
The directors present their report and financial statements for the year ended 30 June 2018.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
A S Bedford
T P Maxted
D J Moss
J Yeeles
S Hull
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £1,000,000 (2017 - £300,000). The directors do not recommend payment of a final dividend.
Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
-
select suitable accounting policies and then apply them consistently;
-
make judgements and accounting estimates that are reasonable and prudent;
-
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
T P Maxted
Director
22 March 2019
BERKELEY INSURANCE GROUP UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BERKELEY INSURANCE GROUP UK LIMITED
- 5 -
Opinion
We have audited the financial statements of Berkeley Insurance Group UK Limited (the 'company') for the year ended 30 June 2018 which comprise the Statement of Income and Retained Earnings, the Balance Sheet, the Statement of Cash Flows 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 FRS 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 30 June 2018 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.
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 Auditor's 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
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
-
the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
-
the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue
.
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 auditor’s 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit
:
-
the information given in the Strategic Report and the Directors' R
eport 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.
BERKELEY INSURANCE GROUP UK LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BERKELEY INSURANCE GROUP UK LIMITED
- 6 -
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 identifie
d
material misstatements in the Strategic Report and the Directors'
R
eport
.
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 Directors' Responsibilities Statement set out on page 4, 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.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities
.
This description forms part of our auditor’s report.
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 auditor's 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.
Michael Castleman FCA (Senior Statutory Auditor)
for and on behalf of Newby Castleman LLP
22 March 2019
Chartered Accountants
Statutory Auditor
West Walk Building
110 Regent Road
Leicester
LE1 7LT
BERKELEY INSURANCE GROUP UK LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2018
- 7 -
2018
2017
Notes
£
£
Turnover
3
5,948,148
5,703,503
Administrative expenses
(4,108,141)
(5,492,127)
Operating profit
4
1,840,007
211,376
Interest receivable and similar income
7
2,947
7,294
Profit before taxation
1,842,954
218,670
Taxation
8
(314,059)
(43,871)
Profit for the financial year
1,528,895
174,799
Retained earnings at 1 July 2017
2,758,713
2,883,914
Dividends
9
(1,000,000)
(300,000)
Retained earnings at 30 June 2018
3,287,608
2,758,713
The profit and loss account has been prepared on the basis that all operations are continuing operations.
BERKELEY INSURANCE GROUP UK LIMITED
BALANCE SHEET
AS AT
30 JUNE 2018
30 June 2018
- 8 -
2018
2017
Notes
£
£
£
£
Fixed assets
Intangible assets
10
7,736
30,944
Tangible assets
11
83,402
65,758
91,138
96,702
Current assets
Debtors
13
7,085,915
5,521,390
Cash at bank and in hand
2,845,756
3,050,274
9,931,671
8,571,664
Creditors: amounts falling due within one year
14
(6,694,864)
(5,841,660)
Net current assets
3,236,807
2,730,004
Total assets less current liabilities
3,327,945
2,826,706
Creditors: amounts falling due after more than one year
15
-
(19,000)
Provisions for liabilities
17
(39,337)
(47,993)
Net assets
3,288,608
2,759,713
Capital and reserves
Called up share capital
20
1,000
1,000
Profit and loss reserves
21
3,287,608
2,758,713
Total equity
3,288,608
2,759,713
The financial statements were approved by the board of directors and authorised for issue on 22 March 2019 and are signed on its behalf by:
A S Bedford
T P Maxted
Director
Director
Company Registration No. 01115635
BERKELEY INSURANCE GROUP UK LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2018
- 9 -
2018
2017
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
914,961
537,256
Income taxes paid
(57,843)
(162,351)
Net cash inflow from operating activities
857,118
374,905
Investing activities
Purchase of tangible fixed assets
(43,142)
(25,950)
Proceeds on disposal of tangible fixed assets
-
50
Proceeds from / (payments) for other investments and loans
(11,738)
(27,452)
Interest received
2,947
7,294
Net cash used in investing activities
(51,933)
(46,058)
Financing activities
Dividends paid
(1,000,000)
(300,000)
Net cash used in financing activities
(1,000,000)
(300,000)
Net (decrease)/increase in cash and cash equivalents
(194,815)
28,847
Cash and cash equivalents at beginning of year
3,039,694
3,010,847
Cash and cash equivalents at end of year
2,844,879
3,039,694
Relating to:
Cash at bank and in hand
265,662
362,679
Insurance trust accounts
2,580,094
2,687,595
Bank overdrafts included in creditors payable within one year
(877)
(10,580)
BERKELEY INSURANCE GROUP UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2018
- 10 -
1
Accounting policies
Company information
Berkeley Insurance Group UK Limited is a
private company limited by shares
incorporated in England and Wales.
The address of the registered office and place of business is given in the company information page of these financial statements.
1.1
Basis of preparation
These financial statements have been prepared in accordance with applicable accounting standards including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below. These policies have been consistently applied to all years presented unless otherwise stated.
1.2
Turnover
Turnover represents
the fair value of consideration of services received for
brokerage and fees receivable.
Turnover
relating to insurance broking is recognised at the later of the policy inception date or when the policy placement has been completed and confirmed.
Turnover
from brokerage and fees on adjustment premiums, binding authorities and treaties are recognised on a periodic basis when consideration due is confirmed by third parties.
Other fees receivable are recognised in the period to which they relate or when they can be measured with reasonable certainty.
1.3
Intangible fixed assets
Intangible fixed assets consist of the cost of acquisition of a business over the fair value of net assets acquired and the cost of a customer list. Intangible fixed assets are initially recognised as an asset at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible fixed assets are considered to have a finite useful life and are amortised on a systematic basis over their expected life, which is 5 years.
1.4
Tangible fixed assets
Tangible fixed assets
are measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Computer equipment
20% of cost per annum
Fixtures, fittings & equipment
20% of cost per annum
Motor vehicles
20% of cost per annum
1.5
Financial instruments
Financial instruments are recognised in the company's
balance sheet
when the company becomes party to the contractual provisions of the instrument.
Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses arising from impairment are recognised in the profit and loss account.
BERKELEY INSURANCE GROUP UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
1
Accounting policies
(Continued)
- 11 -
1.6
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity.
1.7
Provisions
Provisions are recognised when the
company
has a legal or constructive present obligation as a result of a past event, it is probable that the
company
will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
1.8
Employee benefits
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
the profit and loss account
on a straight line basis over the term of the relevant lease
.
BERKELEY INSURANCE GROUP UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
1
Accounting policies
(Continued)
- 12 -
1.11
Insurance debtors and creditors
The company acts as agent in broking the insurable risks of clients and normally is not liable as principal
for premiums due to underwriters or for claims payable to clients. Notwithstanding the legal relationship
with clients and underwriters, the company has followed generally accepted accounting practice for
insurance brokers by showing debtors, creditors and cash balances relating to insurance business as
assets and liabilities of the company itself. This recognises that the company is entitled to retain the
investment income on any cashflows arising from these transactions.
In the ordinary course of insurance broking business, settlement is required to be made with certain
market settlement bureaux, insurance intermediaries or insurance companies on the basis of the net
balance due to or from them rather than the amount due to or from the individual third parties which it
represents.
However, under generally accepted accounting standards, assets and liabilities may not be offset unless
net settlement is legally enforceable, and therefore insurance broking debtors and creditors are shown
gross within these financial statements.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The directors do not consider there to be any key sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2018
2017
£
£
Turnover
Sale of services
5,948,148
5,703,503
Other revenue
Interest income
2,947
7,294
Turnover analysed by geographical market
2018
2017
£
£
United Kingdom
5,948,148
5,703,503
BERKELEY INSURANCE GROUP UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 13 -
4
Operating profit
2018
2017
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
448
124
Fees payable to the company's auditors for the audit of the company's financial statements
12,757
12,406
Depreciation of owned tangible fixed assets
25,498
22,396
Loss on disposal of tangible fixed assets
-
2,754
Amortisation of intangible assets
23,208
23,208
Operating lease charges
19,825
18,615
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2018
2017
Number
Number
Management
8
8
Administration
1
1
Broking
53
55
62
64
Their aggregate remuneration comprised:
2018
2017
£
£
Wages and salaries
1,684,229
1,621,702
Social security costs
160,306
154,385
Pension costs
134,884
150,284
1,979,419
1,926,371
6
Directors' remuneration
The aggregate remuneration paid by the ultimate parent company to this company's directors (including pension contributions) was £186,683 (2017 - £1,582,917
). This has been recharged by the ultimate parent company through the management charge.
BERKELEY INSURANCE GROUP UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 14 -
7
Interest receivable and similar income
2018
2017
£
£
Interest income
Interest on bank deposits
2,947
7,294
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
2,947
7,294
8
Taxation
2018
2017
£
£
Current tax
UK corporation tax on profits for the current period
307,715
47,849
Deferred tax
Origination and reversal of timing differences
6,344
(3,978)
Total tax charge
314,059
43,871
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2018
2017
£
£
Profit before taxation
1,842,954
218,670
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2017: 19.75%)
350,161
43,187
Tax effect of expenses that are not deductible in determining taxable profit
2,938
888
Group relief
(39,040)
-
Deferred tax adjustments in respect of prior years
-
(204)
Tax expense for the year
314,059
43,871
9
Dividends
2018
2017
£
£
Ordinary interim paid
1,000,000
300,000
1,000,000
300,000
BERKELEY INSURANCE GROUP UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 15 -
10
Intangible fixed assets
Intangibles
£
Cost
At 1 July 2017 and 30 June 2018
291,054
Amortisation and impairment
At 1 July 2017
260,110
Amortisation charged for the year
23,208
At 30 June 2018
283,318
Carrying amount
At 30 June 2018
7,736
At 30 June 2017
30,944
11
Tangible fixed assets
Computer equipment
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2017
141,381
61,867
-
203,248
Additions
13,755
18,887
10,500
43,142
At 30 June 2018
155,136
80,754
10,500
246,390
Depreciation and impairment
At 1 July 2017
91,875
45,615
-
137,490
Depreciation charged in the year
17,699
7,624
175
25,498
At 30 June 2018
109,574
53,239
175
162,988
Carrying amount
At 30 June 2018
45,562
27,515
10,325
83,402
At 30 June 2017
49,506
16,252
-
65,758
BERKELEY INSURANCE GROUP UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 16 -
12
Financial instruments
2018
2017
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
7,053,709
5,492,492
Carrying amount of financial liabilities
Measured at amortised cost
6,358,853
5,776,716
Financial assets comprise trade debtors, amount due from parent undertaking and other debtors.
Financial liabilities comprise trade creditors, other creditors, accruals and deferred income and other borrowings.
13
Debtors
2018
2017
Amounts falling due within one year:
£
£
Trade debtors
4,223,226
3,591,257
Amounts owed by group undertakings
2,777,887
1,856,969
Other debtors
52,596
44,266
Prepayments and accrued income
32,206
28,898
7,085,915
5,521,390
14
Creditors: amounts falling due within one year
2018
2017
Notes
£
£
Bank overdrafts
16
877
10,580
Trade creditors
5,912,451
5,305,746
Corporation tax
295,234
45,362
Other taxation and social security
40,777
38,582
Other creditors
82,283
59,659
Accruals and deferred income
363,242
381,731
6,694,864
5,841,660
15
Creditors: amounts falling due after more than one year
2018
2017
£
£
Other creditors
-
19,000
BERKELEY INSURANCE GROUP UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 17 -
16
Bank overdrafts
2018
2017
£
£
Bank overdrafts
877
10,580
Payable within one year
877
10,580
The bank overdraft is secured by a mortgage debenture over all the assets of the company.
17
Provisions for liabilities
2018
2017
Notes
£
£
Professional indemnity provision
30,000
45,000
Deferred tax liabilities
18
9,337
2,993
39,337
47,993
Movements on provisions apart from deferred tax liabilities:
Professional indemnity provision
£
At 1 July 2017
45,000
Reversal of provision
(15,000)
At 30 June 2018
30,000
Other provisions relate to possible amounts payable by the company to external parties. The timing of the transfer of economic benefits is dependent on factors external to the company and therefore cannot be determined with certainty.
BERKELEY INSURANCE GROUP UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 18 -
18
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2018
2017
Balances:
£
£
Accelerated capital allowances
13,049
11,077
Other timing differences
(3,712)
(8,084)
9,337
2,993
2018
Movements in the year:
£
Liability at 1 July 2017
2,993
Charge to profit or loss
6,344
Liability at 30 June 2018
9,337
19
Retirement benefit schemes
2018
2017
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
134,884
150,284
The company operates a defined contribution pension scheme for all qualifying employees.
The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2018
2017
£
£
Issued and fully paid
1,000 Ordinary shares of £1 each
1,000
1,000
The company has one class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.
21
Profit and loss reserves
The profit and loss reserve comprises retained profits and losses for the current and prior periods.
BERKELEY INSURANCE GROUP UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 19 -
22
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2018
2017
£
£
Within one year
7,171
18,211
Between two and five years
7,171
14,342
14,342
32,553
23
Related party transactions
The company has taken advantage of the exemption offered by FRS 102 from the requirement to disclose transactions with group companies on the grounds that consolidated financial statements are prepared by the ultimate parent company.
24
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
Description
% Rate
Opening Balance
Amounts Advanced
Interest Charged
Amounts Repaid
Closing Balance
£
£
£
£
£
A S Bedford
-
(1,825)
41,163
-
38,082
1,256
T P Maxted
-
(2,456)
56,989
-
48,082
6,451
D J Moss
2.50
22,200
5,000
555
5,555
22,200
J Yeeles
2.50
18,750
1,917
469
2,636
18,500
36,669
105,069
1,024
94,355
48,407
25
Controlling party
The ultimate parent company is Berkeley Insurance Group Limited, a company registered in England and Wales. T P Maxted and A S Bedford are the ultimate controlling parties through their controlling interest in Berkeley Insurance Group Limited.
Copies of the ultimate parent company's consolidated financial statements can be obtained from Companies House, Cardiff.
BERKELEY INSURANCE GROUP UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2018
- 20 -
26
Cash generated from operations
2018
2017
£
£
Profit for the year after tax
1,528,895
174,799
Adjustments for:
Taxation charged
314,059
43,871
Investment income
(2,947)
(7,294)
Loss on disposal of tangible fixed assets
-
2,754
Amortisation and impairment of intangible assets
23,208
23,208
Depreciation and impairment of tangible fixed assets
25,498
22,396
(Decrease) in provisions
(15,000)
-
Movements in working capital:
(Increase) in debtors
(1,552,787)
(8,573)
Increase in creditors
594,035
286,095
Cash generated from operations
914,961
537,256
2018-06-30
2017-07-01
false
CCH Software
CCH Accounts Production 2018.300
No description of principal activity
A S Bedford
T P Maxted
D J Moss
J Yeeles
S Hull
J Yeeles
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