Company registration number 08977604 (England and Wales)
ID2 Holdings Limited
Unaudited financial statements
For the year ended 31 March 2023
ID2 Holdings Limited
Contents
Page
Statement of financial position
1 - 2
Notes to the financial statements
3 - 8
ID2 Holdings Limited
Statement of financial position
As at 31 March 2023
31 March 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Investment property
2
356,482
356,482
Investments
3
88
89
356,570
356,571
Current assets
Debtors
4
650
38,247
Cash at bank and in hand
6,918
9,978
7,568
48,225
Creditors: amounts falling due within one year
5
(109,204)
(33,520)
Net current (liabilities)/assets
(101,636)
14,705
Total assets less current liabilities
254,934
371,276
Creditors: amounts falling due after more than one year
6
(146,518)
(155,255)
Provisions for liabilities
(6,200)
(6,200)
Net assets
102,216
209,821
Capital and reserves
Called up share capital
102
102
Profit and loss reserves
102,114
209,719
Total equity
102,216
209,821
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
ID2 Holdings Limited
Statement of financial position (continued)
As at 31 March 2023
31 March 2023
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 13 October 2023 and are signed on its behalf by:
Mr M A Poole
Director
Company Registration No. 08977604
ID2 Holdings Limited
Notes to the financial statements
For the year ended 31 March 2023
- 3 -
1
Accounting policies
Company information
ID2 Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Glades, Festival Way, Festival Park, Stoke on Trent, Staffordshire, ST1 5SQ.
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.
The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.
1.2
Investment property
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.3
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverses a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.4
Cash and cash equivalents
Cash and cash equivalents 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.
ID2 Holdings Limited
Notes to the financial statements (continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
- 4 -
1.5
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 statement of financial position 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, cash and bank balances, and loans from fellow group companies, 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.
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 and bank loans, 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.
1.6
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.7
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 income statement 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.
ID2 Holdings Limited
Notes to the financial statements (continued)
For the year ended 31 March 2023
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.
1.8
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
2
Investment property
2023
£
Fair value
At 1 April 2022 and 31 March 2023
356,482
Investment property comprises residential properties. The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 March 2023 by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
3
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
88
89
ID2 Holdings Limited
Notes to the financial statements (continued)
For the year ended 31 March 2023
3
Fixed asset investments
(Continued)
- 6 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022
89
Additions
2
At 31 March 2023
91
Impairment
At 1 April 2022
-
Disposals
3
At 31 March 2023
3
Carrying amount
At 31 March 2023
88
At 31 March 2022
89
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
38,247
Other debtors
650
650
38,247
5
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
8,736
8,455
Amounts owed to group undertakings
69,886
Taxation and social security
921
1,348
Other creditors
29,661
23,717
109,204
33,520
ID2 Holdings Limited
Notes to the financial statements (continued)
For the year ended 31 March 2023
- 7 -
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
146,518
155,255
Creditors which fall due after five years are as follows:
2023
2022
£
£
Payable by instalments
108,550
118,515
7
Security
The bank loans are secured by way of a legal charge over the investment properties and personal guarantees given by the directors.
8
Reserves
Retained earning comprises of accumulated profits less any losses and distributions which have been retained within the company.
Included within retained earnings at 31 March 2023 is £26,206 of non-distributable reserves.
9
Prior period adjustment
Reconciliation of changes in equity
1 April
31 March
2021
2022
£
£
Adjustments to prior year
Profit/loss on sale of shares
-
13,341
Equity as previously reported
192,875
196,480
Equity as adjusted
192,875
209,821
Analysis of the effect upon equity
Profit and loss reserves
-
13,341
ID2 Holdings Limited
Notes to the financial statements (continued)
For the year ended 31 March 2023
9
Prior period adjustment
(Continued)
- 8 -
Reconciliation of changes in profit for the previous financial period
2022
£
Adjustments to prior year
Profit/loss on sale of shares
13,341
Profit as previously reported
175,955
Profit as adjusted
189,296
Notes to reconciliation
During the year it was discovered that a transaction was misclassified within the prior year statement of financial position and statement of income and retained earnings.
The proceeds from sale of shares in March 2022 of £13,341 was originally recorded within the directors loan account on the statement of financial position in error. This transaction should have been recorded in the statement of income and retained earnings as profit on sale of investment.
The classification error has been corrected by restating each of the financial statement line items for the prior period.
The misclassification resulted to a change in profit previously reported of £13,341.