J R W Group Services Limited - Period Ending 2016-12-31

Registration number: 04507332

J R W Group Services Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 31 December 2016

Moffatt & Co
Chartered Accountants
Progress House
396 Wilmslow Road
Withington
Manchester
M20 3BN

J R W Group Services Limited

Contents

Company Information	1
Directors' Report	2
Statement of Directors' Responsibilities	3
Accountants' Report	4
Profit and Loss Account	5
Statement of Comprehensive Income	6
Balance Sheet	7 to 8
Statement of Changes in Equity	9
Notes to the Financial Statements	10 to 19

J R W Group Services Limited

Company Information

Directors

Mr. Colin Whitehead Mr. John Robert Woosey

Company secretary

Mrs Louise Whitehead

Registered office

The Royals Altrincham Road Manchester M22 4BJ

Accountants

Moffatt & Co Chartered Accountants Progress House 396 Wilmslow Road Withington Manchester M20 3BN

Page 1

J R W Group Services Limited

Directors' Report for the Year Ended 31 December 2016

The directors present their report and the financial statements for the year ended 31 December 2016.

Directors of the company

The directors who held office during the year were as follows:

Mr. Colin Whitehead

Mr. John Robert Woosey

Principal activity

The principal activity of the company is insurance services

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved by the Board on 12 April 2017 and signed on its behalf by:

.........................................
Mr. Colin Whitehead
Director

.........................................
Mr. John Robert Woosey
Director

Page 2

J R W Group Services Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 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.

Page 3

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
J R W Group Services Limited
for the Year Ended 31 December 2016

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of J R W Group Services Limited for the year ended 31 December 2016 as set out on pages 5 to 19 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/en/members/regulations-standards-and-guidance/.

This report is made solely to the Board of Directors of J R W Group Services Limited, as a body, in accordance with the terms of our engagement letter. Our work has been undertaken solely to prepare for your approval the accounts of J R W Group Services Limited and state those matters that we have agreed to state to the Board of Directors of J R W Group Services Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than J R W Group Services Limited and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that J R W Group Services Limited has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and profit of J R W Group Services Limited. You consider that J R W Group Services Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of J R W Group Services Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Moffatt & Co
Chartered Accountants
Progress House
396 Wilmslow Road
Withington
Manchester
M20 3BN

12 April 2017

Page 4

J R W Group Services Limited

Profit and Loss Account for the Year Ended 31 December 2016

	Note	Total 31 December 2016 £	(As restated) Total 31 December 2015 £
Turnover		8,357,224	6,433,503
Cost of sales		(4,864,364)	(3,194,333)
Gross profit		3,492,860	3,239,170
Administrative expenses		(1,670,813)	(1,317,478)
Operating profit		1,822,047	1,921,692
Other interest receivable and similar income		2,509	7,748
Interest payable and similar expenses		-	(45)
		2,509	7,703
Profit before tax	4	1,824,556	1,929,395
Taxation		(307,083)	(384,622)
Profit for the financial year		1,517,473	1,544,773

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

The notes on pages 10 to 19 form an integral part of these financial statements.

Page 5

J R W Group Services Limited

Statement of Comprehensive Income for the Year Ended 31 December 2016

	Note	2016 £	(As restated) 2015 £
Profit for the year		1,517,473	1,544,773
Total comprehensive income for the year		1,517,473	1,544,773

The notes on pages 10 to 19 form an integral part of these financial statements.

Page 6

J R W Group Services Limited

(Registration number: 04507332)
Balance Sheet as at 31 December 2016

	Note	2016 £	(As restated) 2015 £
Fixed assets
Intangible assets	5	369,550	159,684
Current assets
Debtors	6	1,268,975	337,357
Cash at bank and in hand		478,385	1,366,383
		1,747,360	1,703,740
Creditors: Amounts falling due within one year	7	(923,814)	(679,947)
Net current assets		823,546	1,023,793
Total assets less current liabilities		1,193,096	1,183,477
Provisions for liabilities		(23,953)	(31,937)
Net assets		1,169,143	1,151,540
Capital and reserves
Called up share capital		2	2
Profit and loss account		1,169,141	1,151,538
Total equity		1,169,143	1,151,540

For the financial year ending 31 December 2016 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

The notes on pages 10 to 19 form an integral part of these financial statements.

Page 7

J R W Group Services Limited

(Registration number: 04507332)
Balance Sheet as at 31 December 2016

Approved and authorised by the Board on 12 April 2017 and signed on its behalf by:
 

.........................................

Mr. Colin Whitehead

Director

.........................................

Mr. John Robert Woosey

Director

The notes on pages 10 to 19 form an integral part of these financial statements.

Page 8

J R W Group Services Limited

Statement of Changes in Equity for the Year Ended 31 December 2016

	Share capital £	Profit and loss account £	Total £
At 1 January 2016	2	1,151,538	1,151,540
Profit for the year	-	1,517,473	1,517,473
Total comprehensive income	-	1,517,473	1,517,473
Dividends	-	(1,499,870)	(1,499,870)
At 31 December 2016	2	1,169,141	1,169,143

	Share capital £	Profit and loss account £	Total £
At 1 January 2015	2	2,172,872	2,172,874
Profit for the year	-	1,544,773	1,544,773
Total comprehensive income	-	1,544,773	1,544,773
Dividends	-	(2,566,107)	(2,566,107)
At 31 December 2015	2	1,151,538	1,151,540

The notes on pages 10 to 19 form an integral part of these financial statements.

Page 9

J R W Group Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

1	General information

The company is a private company limited by share capital incorporated in England and Wales.

The address of its registered office is:
The Royals
Altrincham Road
Manchester
M22 4BJ

These financial statements were authorised for issue by the Board on 12 April 2017.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Key sources of estimation uncertainty

Development costs are capitalised in accordance with the accounting policy. Initial capitalisation of costs is based on management's judgement that technological and economic feasibility is confirmed, usually when a product development project has reached a defined milestone according to an establsihed project management model. In determining the amounts to be capitalised, management makes assumptions regarding the expected future cash generation of the project. The carrying amount is £369,550 (2015 -£159,684).

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Page 10

J R W Group Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Development costs

Research costs are expensed as incurred.

Development expenditures, on a individual project, are recognised as an intangible asset when the company can demonstrate:

i) the techincal feasibility of completing the intangible asset so that it will be available for use or sale
ii) its intention to complete and its ability to use or sell the asset
iii) how the asset will generate future economic benefits
iv) the availability of resources to complete the asset
v) the ability to measure reliably the expenditure during development

Following intial recognition of the development expenditure as an asset, the cost model is applied, requiring the asset to be carried at cost less any accumulated amortisation and accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. During the period of development, the asset is tested for impairment annually.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class	Amortisation method and rate
Website and software development costs	20% Straightline Basis

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Page 11

J R W Group Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.
 Recognition and measurement
Basic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method.
 Impairment
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 36 (2015 - 31).

Page 12

J R W Group Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

4	Profit before tax

Arrived at after charging/(crediting)

	2016 £	(As restated) 2015 £
Amortisation expense	102,368	39,921

5	Intangible assets

	Internally generated software development costs  £	Total £
Cost or valuation
At 1 January 2016	199,605	199,605
Additions	312,234	312,234
At 31 December 2016	511,839	511,839
Amortisation
At 1 January 2016	39,921	39,921
Amortisation charge	102,368	102,368
At 31 December 2016	142,289	142,289
Carrying amount
At 31 December 2016	369,550	369,550
At 31 December 2015	159,684	159,684

The aggregate amount of research and development expenditure recognised as an expense during the period is £156,964 (2015 - £Nil).
 

Research and Development Cost which are not eligble for capitalisation have been expensed and are recognised in cost of sales, £30,240 (2015: £Nil) and employment costs, £126,724 (2015: £Nil).

Page 13

J R W Group Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

6

Debtors

	Note	2016 £	(As restated) 2015 £
Trade debtors		14,913	9,440
Amounts owed by group undertakings and undertakings in which the company has a participating interest	9	1,001,312	96,923
Other debtors		252,750	230,994
Total current trade and other debtors		1,268,975	337,357

7

Creditors

	Note	2016 £	2015 £
Due within one year
Trade creditors		484,507	72,958
Taxation and social security		43,627	31,912
Other creditors		395,680	575,077
		923,814	679,947

8

Dividends

	2016	2015
	£	£
Interim dividend of £749,935.00 (2015 - £1,283,053.25) per ordinary share	1,499,870	2,566,107

The directors are proposing a final dividend of £Nil (2015 - £Nil) per share totalling £Nil (2015 - £Nil). This dividend has not been accrued in the Balance Sheet.

Page 14

J R W Group Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

9	Related party transactions

Summary of transactions with parent

The JRW Group No. 1 Limited (Company No. 06527960), the immediate parent and The JRW Group Limited (Company 09651089), the ultimate parent
 During the year, there were inter company loan transactions with the parent companies.
 

Summary of transactions with associates

100% Subsidiaries of The JRW Group (No1) Limited
 During the year there were inter company loan transactions with other 100% Subsidiaries of The JRW Group (No1) Limited.
 

Loans to related parties

2016	Parent £	Associates £
At start of period	95,771	1,152
Repaid	904,716	(327)
At end of period	1,000,487	825

2015	Parent £	Associates £
At start of period	41,815	48,395
Repaid	53,956	(47,243)
At end of period	95,771	1,152

Page 15

J R W Group Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

10	Parent and ultimate parent undertaking

The company's immediate parent is The JRW Group (No1) Limited (Company No.06527960), incorporated in England and Wales.

 The ultimate parent is The JRW Group Limited (Company No. 09651089), incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements is The JRW Group Limited (Company No. 09651089). These financial statements are available upon request from Companies House

 The ultimate controlling party is The JRW Group Limited (Company No. 09651089).

Relationship between entity and parents

The parent of the largest group in which these financial statements are consolidated is The JRW Group Limited (Company No. 09651089), incorporated in England and Wales.

The address of The JRW Group Limited (Company No. 09651089) is:
The Royals
Altrincham Road
Manchester
M22 4BJ

This is the registered office and the principal place of business.

The parent of the smallest group in which these financial statements are consolidated is The JRW Group (No1) Limited (Company No.06527960), incorporated in England and Wales.

The address of The JRW Group (No1) Limited (Company No.06527960) is:
The Royals
Altrincham Road
Manchester
M22 4BJ

This is the registered office and the principal place of business.

Page 16

J R W Group Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

11	Transition to FRS 102

These financial statements for the year ended 31st December 2016 are the first financial statements that comply with FRS 102 Section 1A small entities. The date of transition is 1st January 2015.

The impact of FRS 102 has been the reclassification of the software and website development costs being no longer classified as tangible assets under property, plant and equipment and are now recorded as intangible assets. All intangible assets are considered to have a finite life, the assets were previously recorded as having a 5 year life span, the transition has not resulted in any change to this policy.

There has also be a restatement in the prior period in relation to dividends declared but omitted from the accounts in error.

Balance Sheet at 1 January 2015
 

	Note	As originally reported £	Reclassification £	Remeasurement £	As restated £
Current assets
Debtors		452,902	-	-	452,902
Cash at bank and in hand		2,319,586	-	-	2,319,586
		2,772,488	-	-	2,772,488
Creditors: Amounts falling due within one year		(599,614)	-	-	(599,614)
Net assets		2,172,874	-	-	2,172,874
Capital and reserves
Called up share capital		(2)	-	-	(2)
Profit and loss account		(2,172,872)	-	-	(2,172,872)
Total equity		(2,172,874)	-	-	(2,172,874)

Page 17

J R W Group Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

Balance Sheet at 31 December 2015
 

	Note	As originally reported £	Reclassification £	Remeasurement £	As restated £
Fixed assets
Intangible assets		-	159,684	-	159,684
Tangible assets		159,684	(159,684)	-	-
		159,684	-	-	159,684
Current assets
Debtors		412,521	(75,164)	-	337,357
Cash at bank and in hand		1,366,383	-	-	1,366,383
		1,778,904	(75,164)	-	1,703,740
Creditors: Amounts falling due within one year		(679,947)	-	-	(679,947)
Net current assets/(liabilities)		1,098,957	(75,164)	-	1,023,793
Total assets less current liabilities		1,258,641	(75,164)	-	1,183,477
Provisions for liabilities		(31,937)	-	-	(31,937)
Net assets/(liabilities)		1,226,704	(75,164)	-	1,151,540
Capital and reserves
Called up share capital		(2)	-	-	(2)
Profit and loss account		(1,226,702)	75,164	-	(1,151,538)
Total equity		(1,226,704)	75,164	-	(1,151,540)

Page 18

J R W Group Services Limited

Notes to the Financial Statements for the Year Ended 31 December 2016

Profit and Loss Account for the year ended 31 December 2015
 

	Note	As originally reported £	Reclassification £	Remeasurement £	As restated £
Turnover		6,433,503	-	-	6,433,503
Cost of sales		(3,151,622)	-	-	(3,151,622)
Gross profit		3,281,881	-	-	3,281,881
Administrative expenses		(1,360,190)	-	-	(1,360,190)
Operating profit		1,921,691	-	-	1,921,691
Other interest receivable and similar income		7,749	-	-	7,749
Interest payable and similar expenses		(45)	-	-	(45)
		7,704	-	-	7,704
Profit before tax		1,929,395	-	-	1,929,395
Taxation		(384,622)	-	-	(384,622)
Profit for the financial year		1,544,773	-	-	1,544,773

Page 19