Verisk Analytics Limited - Limited company accounts 11.7

REGISTERED NUMBER: 01924205 (England and Wales)

VERISK ANALYTICS LIMITED

REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2014

Page

Company Information

1

Report of the Directors

2

Report of the Independent Auditors

3

Profit and Loss Account

5

Balance Sheet

6

Notes to the Financial Statements

7

DIRECTORS:

R Della Rocca

J Pendle

N Hays

SECRETARY:

K Thompson

REGISTERED OFFICE:

4th Floor

40 Gracechurch Street

London

London

EC3V 0ET

REGISTERED NUMBER:

01924205 (England and Wales)

AUDITORS:

Clark Brownscombe Limited

Chartered Accountants

and Statutory Auditors

8 The Drive

Hove

East Sussex

BN3 3JT

The directors present their report with the financial statements of the company for the year ended 31st December 2014.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2014 to the date of this

report.

R Della Rocca

J Pendle

N Hays

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing 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). 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, Clark Brownscombe Limited, have indicated their willingness to be appointed as auditors for another term

and appropriate arrangements have been put in place to reappoint them as auditors in the absence of an Annual General

Meeting.

This report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating

to small companies.

ON BEHALF OF THE BOARD:

J Pendle - Director

30th September 2015

We have audited the financial statements of Verisk Analytics Limited for the year ended 31st December 2014 on pages

five to eleven. The financial reporting framework that has been applied in their preparation is applicable law and the

Financial Reporting Standard for Smaller Entities (effective April 2008) (United Kingdom Generally Accepted

Accounting Practice applicable to Smaller Entities).

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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors' Responsibilities set out on page two, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give

reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error.

This includes an assessment of: whether the accounting policies are appropriate to the company's circumstances and

have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by

the directors; and the overall presentation of the financial statements. In addition, we read all the financial and

non-financial information in the Report of the Directors to identify material inconsistencies with the audited financial

statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent

with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material

misstatements or inconsistencies we consider the implications for our report.

Opinion on financial statements

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31st December 2014 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matter prescribed by the Companies Act 2006

In our opinion the information given in the Report of the Directors for the financial year for which the financial

statements are prepared is consistent with the financial statements.

Matters on which we are required to report by exception

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; or

-	the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors.

N W H Ericsson F C A (Senior Statutory Auditor)

for and on behalf of Clark Brownscombe Limited

Chartered Accountants

and Statutory Auditors

8 The Drive

Hove

East Sussex

BN3 3JT

30th September 2015

TURNOVER

6,287,291

5,695,343

Cost of sales

2,956,033

2,865,642

GROSS PROFIT

3,331,258

2,829,701

Administrative expenses

1,941,232

1,663,868

1,390,026

1,165,833

Other operating income

520,299

298,597

OPERATING PROFIT

2

1,910,325

1,464,430

Interest receivable and similar income

2,698

2,272

1,913,023

1,466,702

Interest payable and similar charges

1,972

53,749

PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION

1,911,051

1,412,953

Tax on profit on ordinary activities

3

440,520

337,906

PROFIT FOR THE FINANCIAL YEAR

1,470,531

1,075,047

FIXED ASSETS

Tangible assets

4

1,234,804

746,541

Investments

5

19,375,916

-

20,610,720

746,541

CURRENT ASSETS

Debtors

6

2,976,340

3,374,284

Cash at bank

1,822,881

1,824,792

4,799,221

5,199,076

CREDITORS

Amounts falling due within one year

7

4,424,343

5,572,598

NET CURRENT ASSETS/(LIABILITIES)

374,878

(373,522

)

TOTAL ASSETS LESS CURRENT LIABILITIES

20,985,598

373,019

PROVISIONS FOR LIABILITIES

9

31,272

21,150

NET ASSETS

20,954,326

351,869

CAPITAL AND RESERVES

Called up share capital

10

200

100

Share premium

11

19,131,826

-

Profit and loss account

11

1,822,300

351,769

SHAREHOLDERS' FUNDS

20,954,326

351,869

The financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies and with the Financial Reporting Standard for Smaller Entities (effective April 2008).

The financial statements were approved by the Board of Directors on 30th September 2015 and were signed on its behalf by:

J Pendle - Director

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention and in accordance with the

Financial Reporting Standard for Smaller Entities (effective April 2008).

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 8 Related

Party Disclosures, not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover represents net invoiced sales of goods and services supplied, excluding value added tax, on the basis

set out below.

The Company recognises software license revenue on delivery, provided all significant obligations have been

met, persuasive evidence of an agreement exists, fees are fixed or determinable, collections are probable,

objective evidence of fair value for all undelivered elements has been established, and the Company is not

involved in significant production, customisation, or modification of the software or services that are essential to

the functionality of the software. The Company recognises software license revenue pro-rata over the duration of

the license where objective evidence of fair value for all undelivered elements cannot be established.

Revenues from multiple element arrangements are allocated to each element based on the relative fair values of

the elements. The determination of fair value is based on objective evidence that is specific to our business.

Tangible fixed assets

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

Improvements to property

-

over lease term

Fixtures and fittings

-

20% on a straight line basis

Computer equipment

-

20% to 33% on a straight line basis

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance

sheet date.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the

balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at

the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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 the profit and loss account in the period to which they relate.

2.	OPERATING PROFIT

The operating profit is stated after charging:

2014

2013

£

£

Depreciation - owned assets

511,114

336,796

Auditors' remuneration

9,000

10,146

Foreign exchange differences

805

387

Pension costs

107,424

103,263

Operating leases - land & buildings

445,445

247,144

Directors' remuneration and other benefits etc

174,297

169,994

3.

TAXATION

Analysis of the tax charge

The tax charge on the profit on ordinary activities for the year was as follows:

2014

2013

£

£

Current tax:

UK corporation tax

430,239

331,322

Underprovision in earlier year

159

-

Total current tax

430,398

331,322

Deferred tax

10,122

6,584

Tax on profit on ordinary activities

440,520

337,906

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

and

Computer

property

fittings

equipment

Totals

£

£

£

£

COST

At 1st January 2014

161,086

75,426

1,186,614

1,423,126

Additions

784,591

164,485

50,301

999,377

Disposals

(122,647

)

-

-

(122,647

)

At 31st December 2014

823,030

239,911

1,236,915

2,299,856

DEPRECIATION

At 1st January 2014

110,469

11,689

554,427

676,585

Charge for year

142,415

42,055

326,644

511,114

Eliminated on disposal

(122,647

)

-

-

(122,647

)

At 31st December 2014

130,237

53,744

881,071

1,065,052

NET BOOK VALUE

At 31st December 2014

692,793

186,167

355,844

1,234,804

At 31st December 2013

50,617

63,737

632,187

746,541

5.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

Additions

19,375,916

At 31st December 2014

19,375,916

NET BOOK VALUE

At 31st December 2014

19,375,916

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Maplecroft.Net Limited

Nature of business: Global risk analytics

%

Class of shares:

holding

Ordinary £0.01 A shares

100.00

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2014

2013

£

£

Trade debtors

880,623

1,540,041

Amounts owed by group undertakings

1,987,050

1,730,064

Other debtors

108,667

104,179

2,976,340

3,374,284

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2014

2013

£

£

Bank loans and overdrafts

137

-

Trade creditors

123,420

24,606

Amounts owed to group undertakings

2,118,066

3,032,777

Taxation and social security

754,727

671,257

Other creditors

1,427,993

1,843,958

4,424,343

5,572,598

8.	OPERATING LEASE COMMITMENTS

The following operating lease payments are committed to be paid within one year:

2014

2013

£

£

Expiring:

Between one and five years

696,677

45,291

In more than five years

-

250,533

696,677

295,824

9.	PROVISIONS FOR LIABILITIES

2014

2013

£

£

Deferred tax

Accelerated capital allowances

31,272

21,150

Deferred

tax

£

Balance at 1st January 2014

21,150

Provided during year

10,122

Balance at 31st December 2014

31,272

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2014

2013

value:

£

£

200

Ordinary

£1

200

100

(2013 - 100 )

100 Ordinary shares of £1 were issued during the year for cash of £ 1,931,926 .

11.

RESERVES

Profit

and loss

Share

account

premium

Totals

£

£

£

At 1st January 2014

351,769

-

351,769

Profit for the year

1,470,531

1,470,531

Cash share issue

-

19,131,826

19,131,826

At 31st December 2014

1,822,300

19,131,826

20,954,126

12.	ULTIMATE PARENT COMPANY