+-------------------------------------------------------+----------+-+----------+-+----------+-+----------+-+----------+
| Issue of share capital | | | 30&31 | | | | - | | 4,589 |
+-------------------------------------------------------+----------+-+----------+-+----------+-+----------+-+----------+
| Redemption of share capital | | | 30 | | | | - | | (50) |
+-------------------------------------------------------+----------+-+----------+-+----------+-+----------+-+----------+
| Equity settled share incentive reserve | | | 45 | | | | (8) | | 8 |
+-------------------------------------------------------+----------+-+----------+-+----------+-+----------+-+----------+
| Net cash (used in)/from financing activities | | | | | | | (1,508) | | 4,547 |
+-------------------------------------------------------+----------+-+----------+-+----------+-+----------+-+----------+
| | | | | | | | | | | |
+----+--------------------------------------------------+----------+-+----------+-+----------+-+----------+-+----------+
| Net (decrease)/increase in cash and cash equivalents | | | | | | | (2,269) | | 3,328 |
+-------------------------------------------------------+----------+-+----------+-+----------+-+----------+-+----------+
| Cash and cash equivalents at beginning of the period | | | | | | | 3,328 | | - |
+-------------------------------------------------------+----------+-+----------+-+----------+-+----------+-+----------+
| Cash and cash equivalents at the end of the period | | | | | | | 1,059 | | 3,328 |
+----+--------------------------------------------------+----------+-+----------+-+----------+-+----------+-+----------+
40 Significant accounting policies
Basis of preparation
The separate financial statements for the Parent Company have been prepared in
accordance with UK Generally Accepted Accounting Principles. In accordance with
the extension permitted under S230 of the Companies Act 1985, the income
statement of the Parent Company is not presented as part of these accounts.
Advantage has been taken of the merger relief provisions within S131 of the
Companies Act 1985 in respect of the acquisition of Abbey Protection Group
Limited. Accordingly, the initial investment in Abbey Protection Group Limited
has been recorded at the nominal value of the shares issued to acquire the
subsidiary. The profit after taxation for the year of the Parent Company was
GBP4,618,000 (2007: GBP550,000).
The financial statements have been prepared under the historical cost basis.
The accounting policies that are used in preparation of these financial
statements are consistent with the accounting policies used in the preparation
of the consolidated financial statements of the Group as set out in those
financial statements. The additional accounting policies which are specific to
the separate financial statements of the Company are set out below:
Investment in subsidiaries
Investments in subsidiary undertakings are stated at cost and in respect of
Abbey Protection Group Limited, the nominal value of the shares issued to
acquire the subsidiary plus the cost of additional shares subscribed for during
the year. Investments in subsidiary undertakings are reviewed for impairment
when events, or changes in circumstances, indicate the carrying value may be
impaired.
Dividend income
Dividend income from investments in subsidiaries is recognised when the right to
receive payment is established.
41 Investment in subsidiaries
The principal undertakings of Abbey Protection plc at 31 December 2008 which are
100% consolidated in these financial statements are:
+------------------------------+---------------+--+-------+--+--------+--+-----------+--+---+---------+---+
| Company | Country of | | Activity | | Portion | | Basis of |
| |incorporation | | | | of | | consolidation |
| | | | | |ownership | | |
| | | | | |interests | | |
+------------------------------+---------------+--+-------------------+--+-----------+--+-----------------+
| | | | | | | | | | | | |
+------------------------------+---------------+--+-------+--+--------+--+-----------+--+---+---------+---+
| Abbey Protection Group Ltd | Great | | Insurance | | 100% | | 100% |
| | Britain | | intermediary | | | | Consolidation |
+------------------------------+---------------+--+-------------------+--+-----------+--+-----------------+
| Ibex Reinsurance Company | Guernsey | | Reinsurance | | 100% | | 100% |
| Limited | | | company | | | | Consolidation |
+------------------------------+---------------+--+-------------------+--+-----------+--+-----------------+
|Abbey Legal Holdings Limited | Great | | Dormant | | 100% | | 100% |
| | Britain | | | | | | Consolidation |
+------------------------------+---------------+--+-------------------+--+-----------+--+-----------------+
| Abbey Legal Protection | Great | | Dormant | | 100% | | 100% |
| Limited | Britain | | | | | | Consolidation |
+------------------------------+---------------+--+-------------------+--+-----------+--+-----------------+
|Abbey Tax Protection Limited | Great | | Dormant | | 100% | | 100% |
| | Britain | | | | | | Consolidation |
+------------------------------+---------------+--+-------------------+--+-----------+--+-----------------+
|Accountax Consulting Limited | Great | | Tax consultancy | | 100% | | 100% |
| | Britain | | | | | | Consolidation |
+------------------------------+---------------+--+-------------------+--+-----------+--+-----------------+
| Accountax UK Limited | Great | | Tele-marketing | | 100% | | 100% |
| | Britain | | | | | | Consolidation |
+------------------------------+---------------+--+-------------------+--+-----------+--+-----------------+
| Accountax Law Limited | Great | | Dormant | | 100% | | 100% |
| | Britain | | | | | | Consolidation |
+------------------------------+---------------+--+-------+--+--------+--+-----------+--+---+---------+---+
On 21 October 2008, AP plc subscribed for 300,000,000 ordinary 1 pence shares in
Abbey Protection Group Limited at par.
The AP Group has not suffered any impairment in the value of its investments in
its subsidiaries. Following a group restructuring in 2004, Abbey Legal Holdings
Limited, Abbey Legal Protection Limited and Abbey Tax Protection Limited have
remained dormant. Accountax Law Limited and Accountax Consulting Limited
together with its subsidiary, Accountax UK Limited were acquired by Abbey
Protection Group limited on 21 October 2008. The business and assets of
Accountax Consulting Limited and Accountax UK Limited were hived up to Abbey
Protection Group Limited on acquisition.
42 Trade and other receivables
+----------------------------------------------------+--+----------+--+----------+
| | | 2008 | | 2007 |
+----------------------------------------------------+--+----------+--+----------+
| | | GBP000 | | GBP000 |
+----------------------------------------------------+--+----------+--+----------+
| | | | | |
+----------------------------------------------------+--+----------+--+----------+
| Other debtors | | 1 | | - |
+----------------------------------------------------+--+----------+--+----------+
| Prepayments and accrued income | | 21 | | 8 |
+----------------------------------------------------+--+----------+--+----------+
| Amounts due from related parties | | 3,289 | | 863 |
+----------------------------------------------------+--+----------+--+----------+
| | | 3,311 | | 871 |
+----------------------------------------------------+--+----------+--+----------+
43 Cash and cash equivalents
+--------------------------------------------------+--+---------+--+----------+
| | | 2008 | | 2007 |
+--------------------------------------------------+--+---------+--+----------+
| | | GBP000 | | GBP000 |
+--------------------------------------------------+--+---------+--+----------+
| | | | | |
+--------------------------------------------------+--+---------+--+----------+ |