GRIFFITHS_&_ARMOUR_GLOBAL - Accounts


Company Registration No. 05073971 (England and Wales)
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2017
PAGES FOR FILING WITH REGISTRAR
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
COMPANY INFORMATION
Directors
S H Bamforth
D J Whalley
C Evans
M Donnelly
D J Haram
A J Dudgeon
M J Stubbs
N A Brace
Secretary
D J Whalley
Company number
05073971
Registered office
12 Princes Parade
Princes Dock
Liverpool
L3 1BG
Auditor
Lonsdale & Marsh
7th Floor
Cotton House
Old Hall Street
Liverpool
L3 9TX
Business address
145 Leadenhall Street
City of London
EC3V 4QT
Bankers
HSBC
60 Queen Victoria Street
London
EC4N 4TR
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 12
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2017
30 November 2017
- 1 -
2017
2016
Notes
£
£
£
£
Fixed assets
Tangible assets
3
14,255
37,326
Current assets
Debtors
4
159,432
150,868
Non-Statutory Trust client bank
5
57,700,850
3,485,087
Cash at bank and in hand
1,976,927
1,682,107
59,837,209
5,318,062
Creditors: amounts falling due within one year
6
(57,953,213)
(3,750,073)
Net current assets
1,883,996
1,567,989
Total assets less current liabilities
1,898,251
1,605,315
Provisions for liabilities
(81,708)
(68,858)
Net assets
1,816,543
1,536,457
Capital and reserves
Called up share capital
8
500,000
500,000
Profit and loss reserves
1,316,543
1,036,457
Total equity
1,816,543
1,536,457

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.

The financial statements were approved by the board of directors and authorised for issue on 20 March 2018 and are signed on its behalf by:
S H Bamforth
Director
Company Registration No. 05073971
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2017
- 2 -
1
Accounting policies
Company information

Griffiths & Armour Global Risks Limited is a private company limited by shares incorporated in England and Wales. The registered office is 12 Princes Parade, Princes Dock, Liverpool, L3 1BG.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Turnover
Turnover represents commission and fee income.  Commission income is recognised on inception of the risk.  Fee income is recognised on the basis of services provided.  Where there is an expectation of future servicing requirements an element of income relating to the policy is deferred to cover the associated contractual obligation.
1.3
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Leasehold
20% straight line
Plant and machinery
20% - 33 1/3% straight line
Fixtures, fittings & equipment
20% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.4
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
1
Accounting policies
(Continued)
- 3 -

The recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.5

Insurance broking receivables and payables

Insurance brokers act as agents in placing the insurable risks of their clients with insurers and, as such, are not liable as principals for amounts arising from such transactions. In recognition of this relationship, debtors from insurance broking transactions are not included as an asset of the Company. Other than the amount receivable for fees and commissions earned on a transaction, no recognition of the insurance broking transaction occurs until the Company receives cash in respect of premiums or claims, at which time a corresponding liability is established in favour of the insurer or the client.

 

In certain circumstances the Company advances premiums, refunds or claims to insurance underwriters or clients prior to collection. These advances are reflected in the balance sheet as part of trade receivables.

1.6
Cash at bank and in hand

Cash at bank and in hand are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
1
Accounting policies
(Continued)
- 4 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 a 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.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
1
Accounting policies
(Continued)
- 5 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

If material, the cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

If relevant, termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The cost of providing benefits under defined benefit plans is determined separately for each plan using the projected unit credit method, and is based on actuarial advice.

 

The change in the net defined benefit liability arising from employee service during the year is recognised as an employee cost. The cost of plan introductions, benefit changes, settlements and curtailments are recognised as an expense in measuring profit or loss in the period in which they arise.

The net interest element is determined by multiplying the net defined benefit liability by the discount rate, taking into account any changes in the net defined benefit liability during the period as a result of contribution and benefit payments. The net interest is recognised in profit or loss as other finance revenue or cost.

 

Remeasurement changes comprise actuarial gains and losses, the effect of the asset ceiling and the return on the net defined benefit liability excluding amounts included in net interest. These are recognised immediately in other comprehensive income in the period in which they occur and are not reclassified to profit and loss in subsequent periods.

The net defined benefit pension asset or liability in the balance sheet comprises the total for each plan of the present value of the defined benefit obligation (using a discount rate based on high quality corporate bonds), less the fair value of plan assets out of which the obligations are to be settled directly. Fair value is based on market price information, and in the case of quoted securities is the published bid price. The value of a net pension benefit asset is limited to the amount that may be recovered either through reduced contributions or agreed refunds from the scheme.

GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
1
Accounting policies
(Continued)
- 6 -
1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

1.13
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation are included in the profit and loss account for the period.

2
Employees

The average monthly number of persons (including directors) employed by the company during the year was 12 (2016 - 12).

3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 December 2016
27,610
93,277
120,887
Additions
-
2,982
2,982
Disposals
-
(67,323)
(67,323)
At 30 November 2017
27,610
28,936
56,546
Depreciation and impairment
At 1 December 2016
27,610
55,951
83,561
Depreciation charged in the year
-
10,651
10,651
Eliminated in respect of disposals
-
(51,921)
(51,921)
At 30 November 2017
27,610
14,681
42,291
Carrying amount
At 30 November 2017
-
14,255
14,255
At 30 November 2016
-
37,326
37,326
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
- 7 -
4
Debtors
2017
2016
Amounts falling due within one year:
£
£
Trade debtors
22,184
21,079
Amounts owed by group undertakings
46,898
47,348
Other debtors
75,340
69,441
144,422
137,868
Deferred tax asset
15,010
13,000
159,432
150,868
5
Client Money
The Financial Conduct Authority (FCA) have established a set of rules for UK insurance intermediaries to follow when handling Client Money called the Client Assets Sourcebook (CASS 5). CASS 5 requires that Client Money be held in either a statutory or non-statutory trust for the benefit of the related clients and insurers, and as such these monies are not the property of the broker. The monies so held and the related debtors and creditors would not therefore form part of the broker's net assets in the event of a winding-up and would not be available to its general creditors. The company is licensed by the FCA (No. 312048) to act as an insurance intermediary and has elected to hold Client Money in a non-statutory trust.
6
Creditors: amounts falling due within one year
2017
2016
£
£
Trade creditors
57,626,080
3,474,981
Amounts due to group undertakings and undertakings in which the company has a participating interest
161,914
67,734
Other taxation and social security
52,279
61,410
Other creditors
112,940
145,948
57,953,213
3,750,073
7
Retirement benefit schemes
2017
2016
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
34,478
35,467

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
7
Retirement benefit schemes
(Continued)
- 8 -
Defined benefit schemes

The company provides retirement benefits for qualifying employees, in which Griffiths & Armour partnership is the lead employer.

 

The scheme became paid up on 31 May 2005.

 

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation was carried out as at 30 November 2017 by Gerry Walsh of Broadstone Corporate Benefits Limited, previously Mitchell Consulting Actuaries Limited, who is a Fellow of the Institute of Actuaries, in accordance with the requirements of FRS 102. The present value of the defined benefit obligation, the related current service cost and past service cost were measured using the projected unit credit method.

 

The figures in the remainder of this note represent the portion of the scheme attributed to Griffiths & Armour Global Risks Limited only.

2017
2016
Key assumptions
%
%
Discount rate
2.70
2.80
Expected rate of increase of pensions in payment
2.40
2.50
Expected rate of salary increases
n/a
n/a
Mortality assumptions
2017
2016

Assumed life expectations on retirement at age 65:

Years
Years
Retiring today
- Males
87.6
87.5
- Females
89.7
89.6
Retiring in 20 years
- Males
88.8
88.7
- Females
90.9
90.8
2017
2016

Amounts recognised in the profit and loss account

£
£
Net interest on defined benefit liability/(asset)
2,000
2,000
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
7
Retirement benefit schemes
(Continued)
- 9 -
2017
2016

Amounts taken to other comprehensive income

£
£
Actual return on scheme assets
(15,000)
(27,000)
Less: calculated interest element
12,000
14,000
Return on scheme assets excluding interest income
(3,000)
(13,000)
Actuarial changes related to obligations
19,000
20,000
Total costs
16,000
7,000

The amounts included in the balance sheet arising from the company's obligations in respect of defined benefit plans are as follows:

2017
2016
£
£
Present value of defined benefit obligations
535,000
502,000
Fair value of plan assets
(456,000)
(437,000)
Deficit in scheme
79,000
65,000
2017

Movements in the present value of defined benefit obligations

£
Liabilities at 1 December 2016
502,000
Actuarial gains and losses
19,000
Interest cost
14,000
At 30 November 2017
535,000
2017

The defined benefit obligations arise from plans funded as follows:

£
Wholly unfunded obligations
-
Wholly or partly funded obligations
535,000
535,000
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
7
Retirement benefit schemes
(Continued)
- 10 -
2017

Movements in the fair value of plan assets

£
Fair value of assets at 1 December 2016
437,000
Interest income
12,000
Return on plan assets (excluding amounts included in net interest)
3,000
Contributions by the employer
4,000
At 30 November 2017
456,000
2017
2016

Fair value of plan assets at the reporting period end

£
£
Group Pension Contract
456,000
437,000
8
Called up share capital
2017
2016
£
£
Ordinary share capital
Issued and fully paid
500,000ordinary shares of £1 each
500,000
500,000
500,000
500,000
9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

The senior statutory auditor was Elaine Frances McElroy.
The auditor was Lonsdale & Marsh.
10
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2017
2016
£
£
757,939
860,250
GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
- 11 -
11
Related party transactions
Transactions with related parties

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

Commission and fees
Purchase of goods
2017
2016
2017
2016
£
£
£
£
GAWS of London Limited
64,000
61,000
-
-
Griffiths & Armour
749,998
749,998
94,180
56,367
813,998
1,049,793
94,180
56,367

The following amounts were outstanding at the reporting end date:

2017
2016
Amounts owed to related parties
£
£
Griffiths & Armour
161,914
67,734
161,914
67,734
2017
2016
Amounts owed by related parties
£
£
GAWS of London Limited
27,740
28,190
27,740
28,190

Griffiths & Armour is a partnership in which D J Whalley and M Donnelly are partners.

 

Griffiths & Armour Global Risks Limited is a wholly owned subsidiary of Griffiths & Armour (Holdings) Limited which has joint control over GAWS of London Limited. D J Whalley and M Donnelly are directors of Griffiths & Armour Global Risks Limited, Griffiths & Armour (Holdings) Limited and GAWS of London Limited.

In respect of group transactions the company has taken advantage of the exemption available in FRS 102 Section 1AC:35 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

12
Parent company

The parent company preparing consolidated financial statements is Griffiths & Armour (Holdings) Limited, a company incorporated in England and Wales. The registered office is 12 Princes Parade, Princes Dock, Liverpool, L3 1BG.

 

Griffiths & Armour (Holdings) Limited is also the ultimate controlling party.

GRIFFITHS & ARMOUR GLOBAL RISKS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2017
- 12 -
13
Non-audit services provided by auditor

In common with many businesses of our size and nature we use our auditors to prepare and submit returns to the tax authorities, assist with the preparation of the financial statements and to provide tax advice and to represent us, as necessary, at tax tribunals.

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