Company Registration No. 03697314 (England and Wales)
REICH INSURANCE BROKERS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
PAGES FOR FILING WITH REGISTRAR
REICH INSURANCE BROKERS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 10
REICH INSURANCE BROKERS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2019
31 March 2019
- 1 -
2019
2018
Notes
£
£
£
£
Fixed assets
Intangible assets
4
1,454,778
27,948
Tangible assets
5
300,172
340,035
Investments
6
579,043
459,779
2,333,993
827,762
Current assets
Debtors
7
18,257,451
17,585,656
Cash at bank and in hand
5,129,249
6,556,801
23,386,700
24,142,457
Creditors: amounts falling due within one year
8
(8,522,318)
(11,154,981)
Net current assets
14,864,382
12,987,476
Total assets less current liabilities
17,198,375
13,815,238
Creditors: amounts falling due after more than one year
9
(299,006)
-
Provisions for liabilities
(18,230)
(34,990)
Net assets
16,881,139
13,780,248
Capital and reserves
Called up share capital
10
286,000
286,000
Revaluation reserve
-
81,993
Profit and loss reserves
16,595,139
13,412,255
Total equity
16,881,139
13,780,248
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered 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 17 December 2019 and are signed on its behalf by:
D Lopian
S Taylor
Director
Director
Company Registration No. 03697314
REICH INSURANCE BROKERS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2019
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2017
286,000
75,594
10,238,443
10,600,037
Year ended 31 March 2018:
Profit for the year
-
-
3,173,812
3,173,812
Other comprehensive income:
Adjustments to fair value of financial assets
-
6,399
-
6,399
Total comprehensive income for the year
-
6,399
3,173,812
3,180,211
Balance at 31 March 2018
286,000
81,993
13,412,255
13,780,248
Year ended 31 March 2019:
Profit for the year
-
-
3,182,884
3,182,884
Other comprehensive income:
Adjustments to fair value of financial assets
-
(81,993)
-
(81,993)
Total comprehensive income for the year
-
(81,993)
3,182,884
3,100,891
Balance at 31 March 2019
286,000
-
16,595,139
16,881,139
REICH INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2019
- 3 -
1
Accounting policies
Company information
Reich Insurance Brokers Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
197 Chapel Street, Manchester, M3 5EQ.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The Financial Statements have been drawn up on the Going Concern basis.
1.3
Turnover
Turnover comprises commissions and fees receivable from insurance brokerage based on amounts due on policies with effective dates up to the balance sheet date. Turnover also includes further income streams from insurance companies accounted for on a receipts basis in view of the uncertainty as to amount and eventual date of receipt.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated
.
1.5
Intangible fixed assets - goodwill
Acquired goodwill is written off over the estimated useful economic life of five years.
1.6
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date
where
it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the
fair
value of the asset can be measured reliably.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development Costs
Evenly over 5 years
REICH INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 4 -
1.7
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
Evenly over lease term of 15 years
Fixtures, fittings & equipment
20% reducing balance
Computer equipment
33% reducing balance
Motor vehicles
25% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.8
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company
. Control is
the power to govern the financial and operating policies of
the
entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities
.
1.9
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.10
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.11
Financial instruments
1.12
Equity instruments
Equity instruments issued by the company 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 company.
REICH INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 5 -
1.13
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. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. 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. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.17
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.
REICH INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
1
Accounting policies
(Continued)
- 6 -
1.18
Employee Benefit Trust
The value of any assets held by the Trust which have not been unconditionally transferred to the beneficiaries is included within current assets, subject to any provision required for a permanent diminution in their value.
Contributions made to the Trust are charged to the profit and loss account to the extent that the assets held by the Trust as a result of the contribution have been unconditionally gifted to the beneficiaries.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 35 (2018 - 27).
3
Directors' remuneration
2019
2018
£
£
Remuneration paid to directors
325,827
249,667
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2018 - 2).
4
Intangible fixed assets
Goodwill
Other
Total
£
£
£
Cost
At 1 April 2018
1,116,690
28,912
1,145,602
Additions
1,546,097
23,198
1,569,295
At 31 March 2019
2,662,787
52,110
2,714,897
Amortisation and impairment
At 1 April 2018
1,116,690
964
1,117,654
Amortisation charged for the year
133,007
9,458
142,465
At 31 March 2019
1,249,697
10,422
1,260,119
Carrying amount
At 31 March 2019
1,413,090
41,688
1,454,778
At 31 March 2018
-
27,948
27,948
REICH INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
4
Intangible fixed assets
(Continued)
- 7 -
Other Intangible fixed assets above relate to development and set up costs in relation to a Customer Relationship Management (CRM) project. The company has undertaken this project which is ongoing with the view of enhancing its ability to provide a more complete service to its client base.
5
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2018
262,005
229,114
491,119
Additions
-
1,277
1,277
At 31 March 2019
262,005
230,391
492,396
Depreciation and impairment
At 1 April 2018
33,007
118,077
151,084
Depreciation charged in the year
17,467
23,673
41,140
At 31 March 2019
50,474
141,750
192,224
Carrying amount
At 31 March 2019
211,531
88,641
300,172
At 31 March 2018
228,998
111,037
340,035
6
Fixed asset investments
2019
2018
£
£
Investments
579,043
459,779
Fixed asset investments revalued
Included in the value of investments above are listed investments of £536,543 (2018 - £417,279). These investments comprise stock exchange listed equities valued at £13,375 (2018 - £13,252) and a listed Employee Benefit Trust Bond (EBT) valued at £523,168 (2018 - £404,027).
The EBT bond in existence at 31 March 2018 was encashed during the year for £401,081. The current EBT bond was established with an initial investment of £360,000 on 4 January 2019 and was enhanced by a further £150,000 prior to 31 March 2019.
The EBT was established on 1 April 2010. In relation to the assets of the EBT there are the following restrictions:(1) The Trustees shall not cause any part of the income or capital of the Trust to become payable to or applicable for the benefit of an excepted person or the Company, (2) The Trustees shall not apply any part of the Trust Fund directly or indirectly towards the acquisition of any interest in the company, (3) The Trustees shall not infringe the rule against perpetuities.
REICH INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
6
Fixed asset investments
(Continued)
- 8 -
Fixed asset investments not carried at market value
Included in the value of investments above of £579,043 (2018 - £459,779) are unlisted investments at cost of £42,500 which in the director's opinion reflect the fair value at 31 March 2019 and 31 March 2018.
Movements in fixed asset investments
Investments other than loans
£
Cost or valuation
At 1 April 2018
459,779
Additions
513,995
Valuation changes
11,677
Disposals
(406,408)
At 31 March 2019
579,043
Carrying amount
At 31 March 2019
579,043
At 31 March 2018
459,779
7
Debtors
2019
2018
Amounts falling due within one year:
£
£
Trade debtors
2,921,003
1,679,428
Amount due from parent undertaking
1,252,782
1,252,782
Amounts due from fellow group undertakings
2,473,551
3,302,255
Other debtors
547,400
368,710
Prepayments and accrued income
131,228
124,705
7,325,964
6,727,880
Amounts falling due after one year:
Other debtors
10,931,487
10,857,776
Total debtors
18,257,451
17,585,656
REICH INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 9 -
8
Creditors: amounts falling due within one year
2019
2018
£
£
Trade creditors
42,138
15,296
Corporation tax
357,064
404,919
Other taxation and social security
79,250
60,242
Other creditors
8,043,866
10,674,524
8,522,318
11,154,981
9
Creditors: amounts falling due after more than one year
2019
2018
£
£
Other creditors
299,006
-
10
Called up share capital
2019
2018
£
£
Ordinary share capital
Issued and fully paid
285,600 A Ordinary of £1 each
285,600
285,600
400 B Ordinary of £1 each
400
400
286,000
286,000
11
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The auditor was Lopian Gross Barnett & Co.
12
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2019
2018
£
£
1,471,178
1,519,664
REICH INSURANCE BROKERS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2019
- 10 -
13
Related party transactions
On 11 May 2016 the company entered into a subordinated loan agreement to a value of £10,900,000 with Reich Brokers whereby loans originally due by Reich Brokers of £14,181,777 by that company to its directors and their related companies were reassigned as owing to those same parties by Reich Insurance Brokers Limited. The related debtor of £10,900,000 (before discounting to present value) is not recoverable within one year which meets the terms of the above type of loan agreement. The remaining balance is recoverable within one year.
At 31 March 2019 the company was owed £323,029 by S Taylor (2018 - £303,222 due to S Taylor) and owed £645,537 to D Lopian (2018 - £2,190,132).
Reich Insurance Brokers Limited and Reich Brokers are ultimately controlled by S Taylor and D Lopian.
14
Directors' transactions
Interest free loans have been granted by the company to its directors as follows:
Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
S Taylor -
-
(303,222)
626,251
323,029
(303,222)
626,251
323,029
15
Parent company
The ultimate parent company which owns 100% of the issued share capital is Reich Group Limited, a company incorporated in England and Wales. The registered office of Reich Group Limited is 1st Floor, Cloister House, Riverside, New Bailey Street, Manchester, M3 5EQ.
2019-03-31
2018-04-01
false
17 December 2019
CCH Software
CCH Accounts Production 2019.301
No description of principal activity
This audit opinion is unqualified
A Tidey
D Lopian
S Taylor
S Taylor
Jason Selig BA ACA CTA DChA
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