Responsible Life Limited 31/12/2021 iXBRL

RESPONSIBLE LIFE LIMITED - Company Information

0 31/12/2021 2021-12-31 false false false false true false false false false false false false false true false false true false false false false false false false No description of principal activities is disclosed 2021-01-01 Sage Accounts Production 21.0 - FRS102_2019 xbrli:pure xbrli:shares iso4217:GBP 07162252 2021-01-01 2021-12-31 07162252 2021-12-31 07162252 2020-12-31 07162252 2020-01-01 2020-12-31 07162252 2020-12-31 07162252 2019-12-31 07162252 core:PatentsTrademarksLicencesConcessionsSimilar 2021-01-01 2021-12-31 07162252 core:PlantMachinery 2021-01-01 2021-12-31 07162252 core:FurnitureFittingsToolsEquipment 2021-01-01 2021-12-31 07162252 core:MotorVehicles 2021-01-01 2021-12-31 07162252 core:OnerousContractsExcludingVacantProperties 2021-01-01 2021-12-31 07162252 bus:Director1 2021-01-01 2021-12-31 07162252 bus:Director2 2021-01-01 2021-12-31 07162252 bus:Director3 2021-01-01 2021-12-31 07162252 bus:Director4 2021-01-01 2021-12-31 07162252 bus:Director5 2021-01-01 2021-12-31 07162252 bus:Director6 2021-01-01 2021-12-31 07162252 bus:Director7 2021-01-01 2021-12-31 07162252 bus:Director8 2021-01-01 2021-12-31 07162252 core:WithinOneYear 2021-12-31 07162252 core:WithinOneYear 2020-12-31 07162252 core:PatentsTrademarksLicencesConcessionsSimilar 2020-12-31 07162252 core:PatentsTrademarksLicencesConcessionsSimilar 2021-12-31 07162252 core:PlantMachinery 2020-12-31 07162252 core:FurnitureFittingsToolsEquipment 2020-12-31 07162252 core:MotorVehicles 2020-12-31 07162252 core:PlantMachinery 2021-12-31 07162252 core:FurnitureFittingsToolsEquipment 2021-12-31 07162252 core:MotorVehicles 2021-12-31 07162252 core:DeferredTaxation 2021-01-01 2021-12-31 07162252 core:AfterOneYear 2021-12-31 07162252 core:AfterOneYear 2020-12-31 07162252 core:RetainedEarningsAccumulatedLosses 2020-01-01 2020-12-31 07162252 core:ShareCapital 2021-01-01 2021-12-31 07162252 core:SharePremium 2021-01-01 2021-12-31 07162252 core:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 07162252 core:UKTax 2021-01-01 2021-12-31 07162252 core:UKTax 2020-01-01 2020-12-31 07162252 core:ShareCapital 2021-12-31 07162252 core:ShareCapital 2020-12-31 07162252 core:SharePremium 2021-12-31 07162252 core:RetainedEarningsAccumulatedLosses 2021-12-31 07162252 core:RetainedEarningsAccumulatedLosses 2020-12-31 07162252 core:ShareCapital 2019-12-31 07162252 core:RetainedEarningsAccumulatedLosses 2019-12-31 07162252 core:FinancialAssetsAmortisedCost 2021-12-31 07162252 core:FinancialAssetsAmortisedCost 2020-12-31 07162252 core:FinancialLiabilitiesAmortisedCost 2021-12-31 07162252 core:FinancialLiabilitiesAmortisedCost 2020-12-31 07162252 1 core:WithinOneYear 2021-12-31 07162252 1 core:WithinOneYear 2020-12-31 07162252 core:BetweenOneFiveYears 2021-12-31 07162252 core:BetweenOneFiveYears 2020-12-31 07162252 core:PatentsTrademarksLicencesConcessionsSimilar 2020-12-31 07162252 core:AcceleratedTaxDepreciationDeferredTax 2021-12-31 07162252 core:AcceleratedTaxDepreciationDeferredTax 2020-12-31 07162252 core:PlantMachinery 2020-12-31 07162252 core:FurnitureFittingsToolsEquipment 2020-12-31 07162252 core:MotorVehicles 2020-12-31 07162252 core:DeferredTaxation 2020-12-31 07162252 core:DeferredTaxation 2021-12-31 07162252 bus:Director1 2020-12-31 07162252 bus:Director1 2021-12-31 07162252 bus:Director1 2019-12-31 07162252 bus:Director1 2020-12-31 07162252 bus:Director1 2020-01-01 2020-12-31 07162252 bus:FRS102 2021-01-01 2021-12-31 07162252 bus:Audited 2021-01-01 2021-12-31 07162252 bus:FullAccounts 2021-01-01 2021-12-31 07162252 bus:LargeMedium-sizedCompaniesRegimeForAccounts 2021-01-01 2021-12-31 07162252 bus:PrivateLimitedCompanyLtd 2021-01-01 2021-12-31 07162252 core:ComputerEquipment 2021-01-01 2021-12-31 07162252 core:ComputerEquipment 2020-12-31 07162252 core:ComputerEquipment 2021-12-31 07162252 core:AllAssociates 2021-12-31 07162252 core:AllAssociates 2020-12-31

Company registration number: 07162252

Responsible Life Limited

Financial statements

31 December 2021

RESPONSIBLE LIFE LIMITED

Contents

Strategic report

Directors report

Independent auditor's report to the members

Statement of comprehensive income

Statement of financial position

Statement of changes in equity

Statement of cash flows

Notes to the financial statements

RESPONSIBLE LIFE LIMITED

STRATEGIC REPORT

YEAR ENDED 31 DECEMBER 2021

Business Review

The company specialises in the provision of independent financial advice in the UK, for individuals of age 55 or over, focusing on retirement and later life lending solutions. The company principally advises in relation to equity release or lifetime mortgages. The company is authorised and regulated by the Financial Conduct Authority (FCA).

Results and Performance

The results of the year are set out in page 9 with a loss before tax of £0.1m (2020: £1.1m loss). This was derived from the company providing customers in 2021 with solutions to gain access to £0.3bn of equity from their properties. This equates to c.7% market share of new business loans.

Net assets for the company increased to £2.3m (2020: £(0.3)m).

On 1st July 2021, The Royal London Mutual Insurance Society Limited acquired a 30% stake in both Responsible Life and its correspondent lender, Responsible Lending Limited.

Both companies believe the later life lending market has significant growth potential as it offers customers with equity in their homes additional choices at retirement, be it to supplement their income, gift capital to family, or invest in improving their homes or achieving lifetime goals.

The Directors believe that this commitment from Royal London to the later life lending market is an important endorsement of the growing role that equity release and retirement mortgages play in responsible financial planning.

Trading in 2021 continued to be impacted by the COVID-19 global pandemic. The Company adopted initiatives to safeguard the health of its people and took actions to maintain operational activity whilst adhering to prevailing government guidance and regulation.

Restrictions, though, were less impactful than in 2020 and revenue grew compared to 2020, with profitability at the operating level established.

Following the acquisition of a 30% stake by Royal London in July 2021, the company accelerated investment in its own infrastructure throughout the year, through its people, marketing and other operating expenses. This was intended to support future growth, evidenced by the 2021 results.

No interim dividends were paid (2020: £nil).

2020: £nil).

Key Performance Indicators

2021 (£) 2020 (£)

EBITDA 0.2m (0.8m)

Applications 0.5bn 0.4bn

Total Lending 0.3bn 0.3bn

2021 EBITDA profit increased as a result of improved trading conditions compared to 2020, improvements to our customer journeys and growth in the overall Equity Release market.

Future developments

Following the year end and the subsequent gradual lifting of restrictions, we saw trading recover to pre-pandemic levels. We continued to invest in our people, marketing and other operating expenses, always focussed on providing the best outcomes for our customers.

In August 2022, the Company was contacted by the Financial Conduct Authority as part of a routine review which requested detailed information with respect to historic advice given to customers amongst other matters.

While the engagement with the FCA incurred significant cost in terms of legal, regulatory and training support, and focus from the Board and management team over a period of several months, the Company is pleased to note that the results of its own audit in response to those enquiries demonstrated overwhelmingly suitable outcomes from advice delivered to Responsible customers. As a result of the review the company has been able to significantly improve the quality of information it gathers and records from customers to support individual recommendations. Based on the information provided to the FCA, the company hopes to conclude the review in the near future.

In September 2022, the UK mini budget created market disruption which led to a sharp increase in equity release interest rates. This, in turn, led to reduced product availability and a fall in consumer confidence. Interest rates rises continued through the first half of 2023.

On 30th March 2023, The Royal London Mutual Insurance Society Limited acquired a further 10% of Responsible Life and its sister company Responsible Lending. Responsible Lending also launched a Royal London branded equity release product.

While customer interest has remained strong through the recent market disruption, higher equity release interest rates and reduction in the availability of higher loan to value products has impacted the ability to meet customer needs. This is coupled with customers acting with an increased amount of caution. Completion levels and average case sizes have fallen since Q2 2022.

However, the Company continues to see a positive long-term outlook. The need to access housing wealth, via the release of tax-free funds, remains and the market continues to develop innovative products designed to meet customer need.

Given the current uncertainty relating to the economic environment, the directors have carefully considered the potential effects on the Company's future financial performance. The impact of mitigation measures and the continuation of higher interest rates mean that stress testing of forecasts is essential to be able to understand potential impacts to the business including to its regulatory capital.

The directors of the Company note the continuing support of its shareholders.

This report was approved by the board of directors on 29 June 2023 and signed on behalf of the board by:

Mr C Hood

Director

RESPONSIBLE LIFE LIMITED

DIRECTORS REPORT

YEAR ENDED 31 DECEMBER 2021

The directors present their report and the financial statements of the company for the year ended 31 December 2021.

Directors

The directors who served the company during the year were as follows:


Mr P E Starkey
Mr S T Wilkie
Mr N Abbott
Mr T Waterlow
Mr C Hood
Ms S Logan				(Appointed 14 September 2021)
Ms J Ungless				(Appointed 14 December 2021)
Ms J Scott				(Appointed 14 September 2021) (Resigned 14 December 2021)

Dividends

The directors do not recommend the payment of a dividend.

Events after the end of the reporting period

Particulars of events after the reporting period are detailed in note 25 to the financial statements.

Disclosure of information in the strategic report.

The Board considers its duties in respect of s.172 to be at the heart of its strategic decision making and direction. The board considers its plans on a 5-year basis, considering its impact on all stakeholders, including its employees and partners in the marketplace, as well as its shareholders. The contracts its customers enter into through its services are lifetime contracts that often endure for more than 20 years, and the Board and management are mindful of this long term responsibility in the decisions they make on behalf of the business. The Board's ethical standards are enshrined in a purpose-led approach, aiming to improve the lives of our retired customers through appropriate and efficient access to later life lending solutions. This requires the implementation of excellent business conduct through all aspects of the value chain, from the company's employees and independent financial advisers, to the suppliers it uses, and the way it promotes and executes its services. This company utilises its 100% review of financial advice files as a pillar of its high standards of business conduct, and the company's Audit, Risk and Compliance Committee provide oversight directly into the Board. The spirit of the company is held within its employees and the Board prides itself in ensuring that all parts of the business understand its strategic direction. The Board regularly explain relevant information about the company's performance and on-going strategic developments through company-wide meetings. The company is constantly looking to support its employees through internal training and wellbeing programmes, to ensure that support is available both in and out of the workplace. Through this care the company has established a solid foundation for delivery of consistently high financial advice, which provides excellent outcomes for its customer, as well as all stakeholders in the business.

Directors responsibilities statement

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 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 judgments and accounting estimates that are reasonable and prudent; and

- 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 29 June 2023 and signed on behalf of the board by:

Mr C Hood

Director

RESPONSIBLE LIFE LIMITED

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF

RESPONSIBLE LIFE LIMITED

YEAR ENDED 31 DECEMBER 2021

Opinion

We have audited the financial statements of Responsible Life Limited (the 'company') for the year ended 31 December 2021 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, 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 31 December 2021 and of its loss 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 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 the provisions available for small entities, in the circumstances set out below, 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 the audit:

- the information given in the strategic report and the directors' report 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 has been prepared in accordance with applicable legal requirements.

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 directors' report. 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 the 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, 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. 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: - We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management, and inspection of the company's regulatory correspondence. We communicated identified laws and regulations throughout our team, and remained alert to any indications of non-compliance throughout the audit. - The company is subject to laws and regulations that govern the preparation of the financial statements, including financial reporting legislation, and other companies legislation. The company is also subject to other laws and regulations where the consequences of non-compliance could have a material impact on the amounts or disclosures within the financial statements, including employment, anti-bribery, anti-money laundering and certain aspects of companies legislation. We identified the regulations imposed by the FCA as those most likely to have a significant impact on the company. - Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. In any audit, there remains a higher risk of non- detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 an auditors 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.

Peter Lomax (Senior Statutory Auditor)

For and on behalf of

Westcotts (SW) LLP

Chartered Accountants and Statutory Auditors

Tallford House

38 Walliscote Road

Weston-Super-Mare

Somerset

BS23 1LP

30 June 2023

RESPONSIBLE LIFE LIMITED

STATEMENT OF COMPREHENSIVE INCOME

YEAR ENDED 31 DECEMBER 2021

			2021	2020
	Note		£	£


Turnover	4	15,864,374	12,257,354
Cost of sales		( 11,903,416)	( 9,455,257)
		_______	_______
Gross profit		3,960,958	2,802,097

Administrative expenses		( 5,370,624)	( 3,751,037)
Other operating income	5	1,500,000	-
		_______	_______
Operating profit/(loss)	6	90,334	( 948,940)

Other interest receivable and similar income	9	16,298	20
Interest payable and similar expenses	10	( 138,633)	( 134,580)
		_______	_______
Loss before taxation		( 32,001)	( 1,083,500)

Tax on loss	11	( 5,435)	195,945
		_______	_______
Loss for the financial year and total comprehensive income		( 37,436)	( 887,555)
		_______	_______

All the activities of the company are from continuing operations.

RESPONSIBLE LIFE LIMITED

STATEMENT OF FINANCIAL POSITION

31 DECEMBER 2021

		2021		2020
	Note	£	£	£	£

Fixed assets
Intangible assets	12	910,690		1,028,120
Tangible assets	13	83,623		68,809
		_______		_______
			994,313		1,096,929

Current assets
Debtors	14	2,961,057		2,755,484
Cash at bank and in hand		3,553,073		889,459
		_______		_______
		6,514,130		3,644,943
Creditors: amounts falling due
within one year	15	( 4,170,433)		( 3,517,095)
		_______		_______
Net current assets			2,343,697		127,848
			_______		_______
Total assets less current liabilities			3,338,010		1,224,777

Creditors: amounts falling due
after more than one year	16		( 999,838)		( 1,569,696)

Provisions for liabilities	17		( 3,893)		( 8,366)

			_______		_______
Net assets/(liabilities)			2,334,279		( 353,285)
			_______		_______

Capital and reserves
Called up share capital	21		1,750,002		2
Share premium account	22		975,000		-
Profit and loss account	22		( 390,723)		( 353,287)
			_______		_______
Shareholders funds/(deficit)			2,334,279		( 353,285)
			_______		_______

These financial statements were approved by the board of directors and authorised for issue on 29 June 2023 , and are signed on behalf of the board by:

Mr C Hood

Director

Company registration number: 07162252

RESPONSIBLE LIFE LIMITED

STATEMENT OF CHANGES IN EQUITY

YEAR ENDED 31 DECEMBER 2021

	Called up share capital	Share premium account	Profit and loss account	Total
	£	£	£	£


At 1 January 2020	2	-	534,268	534,270

Loss for the year			( 887,555)	( 887,555)
	_______	_______	_______	_______
Total comprehensive income for the year	-	-	( 887,555)	( 887,555)

	_______	_______	_______	_______
At 31 December 2020 and 1 January 2021	2	-	( 353,287)	( 353,285)

Loss for the year			( 37,436)	( 37,436)
	_______	_______	_______	_______
Total comprehensive income for the year	-	-	( 37,436)	( 37,436)

Issue of shares	1,750,000	975,000		2,725,000
	_______	_______	_______	_______
Total investments by and distributions to owners	1,750,000	975,000	-	2,725,000

	_______	_______	_______	_______
At 31 December 2021	1,750,002	975,000	( 390,723)	2,334,279
	_______	_______	_______	_______

RESPONSIBLE LIFE LIMITED

STATEMENT OF CASH FLOWS

YEAR ENDED 31 DECEMBER 2021

	2021	2020
	£	£

Cash flows from operating activities
Loss for the financial year	( 37,436)	( 887,555)

Adjustments for:
Depreciation of tangible assets	30,468	30,468
Amortisation of intangible assets	117,430	117,430
Other interest receivable and similar income	( 16,298)	( 20)
Interest payable and similar expenses	138,633	134,580
Tax on loss	3,143	-
Deferred Tax	(8,366)	1,320

Changes in:
Trade and other debtors	( 205,573)	( 376,816)
Trade and other creditors	447,266	339,496
	_______	_______
Cash generated from operations	469,267	( 641,097)

Interest paid	( 138,633)	( 134,580)
Interest received	16,298	20
	_______	_______
Net cash from/(used in) operating activities	346,932	( 775,657)
	_______	_______

Cash flows from investing activities
Purchase of tangible assets	( 45,282)	( 35,420)
Purchase of intangible assets	-	( 24,300)
	_______	_______
Net cash used in investing activities	( 45,282)	( 59,720)
	_______	_______

Cash flows from financing activities
Proceeds from issue of ordinary shares	2,725,000	-
Proceeds from borrowings	-	1,600,000
Repayment of loans	( 363,786)	( 461,430)
	_______	_______
Net cash from financing activities	2,361,214	1,138,570
	_______	_______

Net increase/(decrease) in cash and cash equivalents	2,662,864	303,193
Cash and cash equivalents at beginning of year	889,459	586,266
	_______	_______
Cash and cash equivalents at end of year	3,552,323	889,459
	_______	_______

RESPONSIBLE LIFE LIMITED

NOTES TO THE FINANCIAL STATEMENTS

YEAR ENDED 31 DECEMBER 2021

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Mills Bakery, Royal William Yard, Plymouth, Devon, PL1 3GE.

Principal activity

The principal activity of the company continued to be that of activities auxiliary to financial intermediation.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities.The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The directors have prepared these financial statements on a going concern basis. In August 2022, the Company was contacted by the Financial Conduct Authority as part of a routine review which requested detailed information with respect to historic advice given to customers amongst other matters.While the engagement with the FCA incurred significant cost in terms of legal, regulatory and training support, and focus from the Board and management team over a period of several months, the Company is pleased to note that the results of its own audit in response to those enquiries demonstrated overwhelmingly suitable outcomes from advice delivered to Responsible customers. As a result of the review the company has been able to significantly improve the quality of its processes and the information that it gathers and records from customers to support individual recommendations. Based on the information provided to the FCA, the company hopes to conclude the review in the near future.Responsible Life has received a letter of support from two individual shareholders indicating their intent to support the business for a period of not less than 12 months from the signing of these financial statements to ensure the business can meet their liabilities as they fall due, but the directors acknowledge there is no certainty on this. We also draw attention to the disclosure set out within note 25 which highlights the capital injection made by Royal London since the balance sheet date.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for services rendered, net of discounts and Value Added Tax.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:


Patents, trademarks and licences	-	10 %	straight line

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

Tangible assets

tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Plant and machinery	-	20 %	straight line
Fittings fixtures and equipment	-	20 %	straight line
Motor vehicles	-	25 %	reducing balance
Computer Equipment	-	33 %	straight line

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. In the statement of financial position, bank overdrafts are shown within borrowing or current liabilities.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.Debt instruments are subsequently measured at amortised cost.Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at theend of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2021	2020
	£	£
Rendering of services	15,864,374	12,257,354
	_______	_______

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Other operating income

	2021	2020
	£	£
Other operating income	1,500,000	-
	_______	_______

6. Operating loss

Operating loss is stated after charging/(crediting):

	2021	2020
	£	£
Amortisation of intangible assets	117,430	117,430
Depreciation of tangible assets	30,468	30,468
Fees payable for the audit of the financial statements	9,975	9,975
	_______	_______

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2021	2020
Administrative staff	95	70
	_______	_______

The aggregate payroll costs incurred during the year were:

	2021	2020
	£	£
Wages and salaries	2,584,714	1,743,151
Social security costs	318,711	201,103
Other pension costs	73,508	48,646
	_______	_______
	2,976,933	1,992,900
	_______	_______

8. Directors remuneration

The directors aggregate remuneration in respect of qualifying services was:

	2021	2020
	£	£
Remuneration	545,827	287,267
	_______	_______

The aggregate remuneration of the highest paid director in respect of qualifying services in the year was £248,780 (2020: £142,500).

9. Other interest receivable and similar income

	2021	2020
	£	£
Loans and receivables	16,298	-
Bank deposits	-	20
	_______	_______
	16,298	20
	_______	_______

10. Interest payable and similar expenses

		2021	2020
		£	£
Bank loans and overdrafts		28,354	-
Other loans made to the company:
	Factoring loans	71,839	68,628
	Other interest on other loans made to the company	36,871	65,652
Other interest payable and similar expenses		1,569	300
		_______	_______
		138,633	134,580
		_______	_______

11. Tax on loss

Major components of tax expense/income

	2021	2020
	£	£
Current tax:
UK current tax expense/income	9,908	( 197,265)
	_______	_______

Deferred tax:
Origination and reversal of timing differences	( 4,473)	1,320
	_______	_______
Tax on loss	5,435	( 195,945)
	_______	_______

Reconciliation of tax expense/income

The tax assessed on the loss for the year is higher than (2020: higher than) the standard rate of corporation tax in the UK of 19.00 % (2020: 19.00%).

	2021	2020
	£	£
Loss before taxation	( 32,001)	( 1,083,500)
	_______	_______

Loss multiplied by rate of tax	( 6,080)	( 205,865)
Effect of expenses not deductible for tax purposes	12,791	2,215
Effect of capital allowances and depreciation	2,333	6,385
Deferred Taxation	(4,473)	1,320
Pension accrual adjustment	864	-
	_______	_______
Tax on loss	5,435	( 195,945)
	_______	_______

12. Intangible assets

	Patents, trademarks & licences	Total
	£	£
Cost
At 1 January 2021 and 31 December 2021	1,174,300	1,174,300
	_______	_______
Amortisation
At 1 January 2021	146,180	146,180
Charge for the year	117,430	117,430
	_______	_______
At 31 December 2021	263,610	263,610
	_______	_______
Carrying amount
At 31 December 2021	910,690	910,690
	_______	_______
At 31 December 2020	1,028,120	1,028,120
	_______	_______

13. Tangible assets

	Plant and machinery	Fixtures, fittings and equipment	Motor vehicles	Computer equipment	Total
	£	£	£	£	£
Cost
At 1 January 2021	38,210	34,877	11,000	76,476	160,563
Additions	-	4,766	-	40,516	45,282
	_______	_______	_______	_______	_______
At 31 December 2021	38,210	39,643	11,000	116,992	205,845
	_______	_______	_______	_______	_______
Depreciation
At 1 January 2021	25,340	19,249	10,454	36,711	91,754
Charge for the year	10,056	8,184	432	11,796	30,468
	_______	_______	_______	_______	_______
At 31 December 2021	35,396	27,433	10,886	48,507	122,222
	_______	_______	_______	_______	_______
Carrying amount
At 31 December 2021	2,814	12,210	114	68,485	83,623
	_______	_______	_______	_______	_______
At 31 December 2020	12,870	15,628	546	39,765	68,809
	_______	_______	_______	_______	_______

14. Debtors

	2021	2020
	£	£
Trade debtors	1,093,339	281,195
Prepayments and accrued income	110,310	93,312
Other debtors	1,757,408	2,380,977
	_______	_______
	2,961,057	2,755,484
	_______	_______

15. Creditors: amounts falling due within one year

	2021	2020
	£	£
Bank loans and overdrafts	569,859	363,787
Trade creditors	1,986,088	1,899,089
Accruals and deferred income	817,024	404,990
Social security and other taxes	354,448	582,945
Shares classed as financial liabilities	998	998
Other creditors	442,016	265,286
	_______	_______
	4,170,433	3,517,095
	_______	_______

The reporting entity has a secured financing facility in place. This facility is secured against future pipeline.

16. Creditors: amounts falling due after more than one year

	2021	2020
	£	£
Bank loans and overdrafts	999,838	1,569,696
	_______	_______

17. Provisions

	Deferred tax (note 18)	Total
	£	£
At 1 January 2021	8,366	8,366
Additions	( 4,473)	( 4,473)
	_______	_______
At 31 December 2021	3,893	3,893
	_______	_______

Deferred tax due to aggregate losses have not been provided for, on the basis that current forecasts for 2023/24 do not show future profits. The accounts have been produced on a going concern basis because the company has letter of supports proving this preparation basis appropriate.

18. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2021	2020
	£	£
Included in provisions (note 17)	3,893	8,366
	_______	_______

The deferred tax account consists of the tax effect of timing differences in respect of:

	2021	2020
	£	£
Accelerated capital allowances	3,893	8,366
	_______	_______

19. Employee benefits

The amount recognised in profit or loss in relation to defined contribution plans was £ 73,508 (2020: £ 48,646 ).

20. Financial instruments

The carrying amount for each category of financial instrument is as follows:

	2021	2020
	£	£
Financial assets that are debt instruments measured at amortised cost
Trade debtors	1,093,339	281,195
Other debtors	1,921,151	2,578,920
Cash at bank and in hand	3,553,053	889,459
	_______	_______
	6,567,543	3,749,574
	_______	_______

Financial liabilities measured at amortised cost
Bank and other loans	1,569,696	1,933,483
Trade creditors	1,986,088	1,899,089
Other creditors	426,952	265,286
	_______	_______
	3,982,736	4,097,858
	_______	_______

21. Called up share capital

Ordinary shares of £0.00002 each - - 100,000 2

VV shares of £0.00002 each 1,283 0.02566 1,283 0.02566

VN shares of £0.00002 each 7,602 0.15204 4,998 0.09996

Deferred shares of £0.00002 each 5,939 0.11878 8,543 0.17086

A Ordinary shares of £0.00002 each 69,285 1.38570 - -

B Ordinary shares of £0.00002 each 34,160 0.68320 - -

Redeemable Preference shares of £1 each 1,750,000 1,750,000 - -

_______ | _______ | _______ | _______ |

1,758,885 1,750,002 114,824 2.29648

_______ | _______ | _______ | _______ |

22. Reserves

Profit and loss account:This reserve records retained earnings and accumulated losses.

23. Analysis of changes in net debt

	At 1 January 2021	Cash flows	At 31 December 2021
	£	£	£
Cash and cash equivalents	889,459	2,663,614	3,553,073
Debt due within one year	(363,787)	(206,072)	(569,859)
Debt due after one year	(1,569,696)	569,858	(999,838)
	_______	_______	_______
	( 1,044,024)	3,027,400	1,983,376
	_______	_______	_______

24. Operating leases

The company as lessee

The total future minimum lease payments under non-cancellable operating leases are as follows:


	£	£

Not later than 1 year	108,988	114,325
Later than 1 year and not later than 5 years	85,161	194,149
	_______	_______
	194,149	308,474
	_______	_______

25. Events after the end of the reporting period

As set out within note 3, trading performance following the year-end has been challenging due to a combination of market factors and response to enquiries made by the Financial Conduct Authority which incurred significant cost in terms of legal, regulatory and training support. Based on the information provided to the FCA, the company hopes to conclude the review in the near future.On 21 December 2022, Royal London, Steve Wilkie and Paul Starkey each acquired £500,000 in preference shares in Responsible Life Limited at £1 per preference share.On 30 March 2023,Royal London acquired 11,363 A2 Ordinary shares for £3,000,000 to increase their shareholding in the company from 30% to 40%.

26. Directors advances, credits and guarantees

	During the year the directors entered into the following advances and credits with the company:

2021
		Balance brought forward	Advances /(credits) to the directors	Amounts repaid	Balance o/standing
		£	£	£	£
	Directors	220,732	1,085,245	( 1,259,622)	46,355
		_______	_______	_______	_______

2020
		Balance brought forward	Advances /(credits) to the directors	Amounts repaid	Balance o/standing
		£	£	£	£
	Directors	( 156,680)	394,439	( 17,027)	220,732
		_______	_______	_______	_______

27. Related party transactions

During the year the company entered into the following transactions with related parties:

	Transaction value		Balance owed by/(owed to)
	2021	2020	2021	2020
	£	£	£	£
Neo G Ltd	-	17,457	37,403	37,403
Neo G US I/C	-	-	-	-
Responsible Lending Ltd	(177,790)	(160,859)	1,286,920	1,464,710
Built and Spaces Ltd	( 278,933)	88,148	63	278,996
Affinia Partnerships Ltd	84,779	( 7,780)	-	( 84,779)
N Starkey-Wilkie	(133,946)	153,907	11,443	153,907
S Abbott	1,067	-	-	-
	_______	_______	_______	_______

'Neo G Ltd', 'Neo G US I/C', 'Built and Spaces Ltd', 'Responsible Lending Ltd' and 'Affinia Partnerships Ltd' are connected companies with mutual directors to that of the reporting entity.N Starkey-Wilkie and S Abbott are close family members of a director of the reporting entity.

RESPONSIBLE LIFE LIMITED

The following pages do not form part of the statutory accounts.