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Registration number: 05074424

IDM Investment Holdings Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 31 March 2023

 

IDM Investment Holdings Limited

Contents

Company Information

1

Strategic Report

2 to 3

Director's Report

4

Statement of Director's Responsibilities

5

Independent Auditor's Report

6 to 9

Consolidated Profit and Loss Account

10

Consolidated Balance Sheet

11

Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Financial Statements

16 to 33

 

IDM Investment Holdings Limited

Company Information

Director

A C Curtis

Company secretary

Bagshot Business Consultants Limited

Registered office

Office B
West Gainsborough Studios
1 Poole Street
LONDON
N1 5EA

Auditors

McBrides Accountants LLP
Nexus House
Cray Road
Sidcup
Kent
DA14 5DA

 

IDM Investment Holdings Limited

Strategic Report for the Year Ended 31 March 2023

The director presents his strategic report for the year ended 31 March 2023.

Principal activity

The principal activity of the group is property development.

Fair review of the business

The director assesses the performance of the company using the following Key Performance Indicators:-

 

Unit

2023

2022

Turnover

£

7,282,799

3,325,789

Turnover Growth / (Reduction)

%

119

(13)

Gross Profit

%

6

25

Profit before tax (after exceptional items)

%

(2)

21

ROE

%

(6)

27

Investment Property

£

196,000

196,000

Stock & WIP

£

4,743,176

6,299,566

Stock & WIP change

%

(25)

71

The financial year ending 31 March 2023 was a difficult year for the group. Turnover increased from last year to £7.3 million, but Gross Profit percentage reduced from 25% to 6% in the year ending 31 March 2023 which was a result of the increase in cost. The Group had an operating loss of circa £248k compared to an operating profit of circa £0.7 million compared to previous year.

The Work in Progress (WIP) in the year ending 31 March 2023 reduced by 25% compared to 31 March 2022, from £6.3 million down to £4.7 million. Net assets of the group reduced by £0.17 million to £2.6 million in 2023 which was approximately a 6% fall.

While it has been a challenging year with rising costs, higher interest rates and high inflation, the long-term fundamentals for the UK housing sector are strong, and there remains a shortage of high quality, affordable new homes across the country.

The group’s key focus over the next two years is increasing revenue levels and improving operating profit.

The health and safety of our staff, subcontractors, customers, and the general public remain central to the way the business operates. IDM Investment Holdings invests in employees through ongoing training and personal development.

 

IDM Investment Holdings Limited

Strategic Report for the Year Ended 31 March 2023

The operating environment, key business risks and future challenges

Liquidity and Cash flow risk
Trading and cash forecasting are a key part of the reporting within the company. The amount of working capital required to service the business operations is closely monitored and controlled and forms a key part of the management information reviewed on a daily, weekly and monthly basis. Cash balances are monitored on a weekly basis.

Economic conditions, mortgage supply and rates
Sales prices are monitored on a weekly basis informing decision making on a timely basis. IDM Investment Holdings ensure investment in land and work in progress is appropriate to the level of sales and expected market conditions.

Availability of land
Due diligence is followed to appraise and monitor all new investment opportunities relating to land purchases. The availability of consented and unconsented land for development is paramount to the success of the business. The director visits all sites prior to acquisition to ensure a consistent approach to land acquisition is taken across the business and each site fits within the group’s overall land strategy.

Labour and materials
In order to optimise build cost efficiency, whilst retaining the flexibility to initiate work on new sites, the vast majority of work carried out is performed by subcontractors overseen by the management of IDM Construction London Ltd.

The group continues to work hard to develop relationships with its subcontractors and materials suppliers to mitigate the effects of price increases and materials and labour shortages. As part of the subcontractor selection process key competencies are considered, particularly in relation to health and safety, quality, previous site performance and financial stability. Many of our subcontractor relationships are well established and long standing which mitigates the impact of labour and skill shortages as output increases. We have a broad sub-contractor base with no dependence on any single sub-contractor.

Approved by the Board on 16 February 2024 and signed on its behalf by:

A C Curtis
Director

 

IDM Investment Holdings Limited

Director's Report for the Year Ended 31 March 2023

The director presents his report and the for the year ended 31 March 2023.

Director of the group

The director who held office during the year was as follows:

A C Curtis

Financial instruments

The group's principal financial instruments include bank loans and overdrafts, other loans and inter group loans, the main purpose of which is to raise finance for its operations. In addition, the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from operations.

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring it has sufficient liquid resources to meet the operating needs of the business.

The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on bank overdrafts and loans.

All customers who wish to trade on credit terms are subject to credit verification procedures and trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.

Future developments

As at 31 March 2023, the business had a work in progress balance valued at £4.7 million. The IDM group is still in a good position to take advantage of any improvement in market conditions.

Over the past 19 years we have successfully delivered new homes in some of the country’s most challenging housing markets, demonstrating our commitment to delivery even in the most demanding market conditions.

Disclosure of information to the auditor

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.

Approved by the Board on 16 February 2024 and signed on its behalf by:


A C Curtis
Director

 

IDM Investment Holdings Limited

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

IDM Investment Holdings Limited

Independent Auditor's Report to the Members of IDM Investment Holdings Limited

Opinion

We have audited the financial statements of IDM Investment Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

Opinion on the financial statements

In our opinion the financial statements:

give a true and fair view of the state of the group's and the company's affairs as at 31 March 2023 and of the group's 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 group 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 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 entitys 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 director are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

 

IDM Investment Holdings Limited

Independent Auditor's Report to the Members of IDM Investment Holdings Limited

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.

Opinion on other matter 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Director's 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of director's remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the Statement of Director's Responsibilities (set out on page 5), the director is 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 director determines 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 director is responsible for assessing the group’s and the parent 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 director either intends to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

 

IDM Investment Holdings Limited

Independent Auditor's Report to the Members of IDM Investment Holdings Limited

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:

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

The following laws and regulations were identified as being of significance to the entity:

those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include health and safety legislation, employment legislation, and standards related to estate agents.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

IDM Investment Holdings Limited

Independent Auditor's Report to the Members of IDM Investment Holdings Limited

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 auditor’s 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.




Andrew Warren (Senior Statutory Auditor)
For and on behalf of McBrides Accountants LLP, Statutory Auditor

Nexus House
Cray Road
Sidcup
Kent
DA14 5DA

20 February 2024

 

IDM Investment Holdings Limited

Consolidated Profit and Loss Account for the Year Ended 31 March 2023

Note

2023
£

2022
£

Turnover

3

7,282,799

3,325,789

Cost of sales

 

(6,830,208)

(2,484,062)

Gross profit

 

452,591

841,727

Administrative expenses

 

(785,149)

(553,670)

Other operating income

4

84,734

398,933

Operating (loss)/profit

5

(247,824)

686,990

Exceptional item

 

-

(6,000)

Profit/(loss) on disposal of group shares

 

(617)

-

Interest payable and similar expenses

6

(2,289)

-

   

(2,906)

(6,000)

Share of profit of equity accounted investees

 

9,661

11,038

(Loss)/profit before tax

 

(241,069)

692,028

Tax on (loss)/profit

9

(1,356)

(12,552)

(Loss)/profit for the financial year

 

(242,425)

679,476

Profit/(loss) attributable to:

 

Owners of the company

 

(242,657)

679,476

Minority interests

 

232

-

 

(242,425)

679,476

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

 

IDM Investment Holdings Limited

(Registration number: 05074424)
Consolidated Balance Sheet as at 31 March 2023

Note

2023
£

(As restated)

2022
£

Fixed assets

 

Intangible assets

10

-

2,000

Tangible assets

11

2,120

2,158

Investment property

12

196,000

196,000

Investments

13

418,832

409,171

 

616,952

609,329

Current assets

 

Stocks

14

4,743,176

6,299,566

Debtors

15

825,281

1,112,529

Cash at bank and in hand

 

102,911

113,709

 

5,671,368

7,525,804

Creditors: Amounts falling due within one year

18

(3,724,227)

(1,902,071)

Net current assets

 

1,947,141

5,623,733

Total assets less current liabilities

 

2,564,093

6,233,062

Creditors: Amounts falling due after more than one year

18

-

(3,426,544)

Net assets

 

2,564,093

2,806,518

Capital and reserves

 

Called up share capital

21

2

2

Other reserves

(41,850)

(41,850)

Retained earnings

2,605,709

2,848,366

Minority interests

 

232

-

Shareholders' funds

 

2,564,093

2,806,518

Approved and authorised by the director on 16 February 2024



 

A C Curtis

Director

 

IDM Investment Holdings Limited

(Registration number: 05074424)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Investments

13

535,817

536,817

Current assets

 

Debtors

15

4,929,285

3,164,423

Cash at bank and in hand

 

6,291

13,197

 

4,935,576

3,177,620

Creditors: Amounts falling due within one year

18

(3,721,236)

(1,383,384)

Net current assets

 

1,214,340

1,794,236

Net assets

 

1,750,157

2,331,053

Capital and reserves

 

Called up share capital

21

2

2

Retained earnings

1,750,155

2,331,051

Shareholders' funds

 

1,750,157

2,331,053

The company made a loss after tax for the financial year of £580,896 (2022 - loss of £21,942).
 

Approved and authorised by the director on 16 February 2024




 

A C Curtis

Director

 

IDM Investment Holdings Limited

Consolidated Statement of Changes in Equity for the Year Ended 31 March 2023
 

Share capital
£

Other reserves
£

Profit and loss account
£

Total
£

Non- controlling interests
£

Total equity
£

At 1 April 2022

2

(41,850)

2,848,366

2,806,518

-

2,806,518

(Loss)/profit for the year

-

-

(242,657)

(242,657)

232

(242,425)

Total comprehensive income

-

-

(242,657)

(242,657)

232

(242,425)

At 31 March 2023

2

(41,850)

2,605,709

2,563,861

232

2,564,093

Share capital
£

Other reserves
£

Profit and loss account
£

Total
£

At 1 April 2021

2

(41,850)

2,237,487

2,195,639

Prior period adjustment

-

-

(68,597)

(68,597)

At 1 April 2021 (As restated)

2

(41,850)

2,168,890

2,127,042

Profit for the year

-

-

679,476

679,476

Total comprehensive income

-

-

679,476

679,476

At 31 March 2022

2

(41,850)

2,848,366

2,806,518

 

IDM Investment Holdings Limited

Statement of Changes in Equity for the Year Ended 31 March 2023

Share capital
£

Profit and loss account
£

Total
£

At 1 April 2022

2

2,331,051

2,331,053

Loss for the year

-

(580,896)

(580,896)

Total comprehensive income

-

(580,896)

(580,896)

At 31 March 2023

2

1,750,155

1,750,157

Share capital
£

Retained earnings
£

Total
£

At 1 April 2021

2

2,352,993

2,352,995

Loss for the year

-

(21,942)

(21,942)

At 31 March 2022

2

2,331,051

2,331,053

 

IDM Investment Holdings Limited

Consolidated Statement of Cash Flows for the Year Ended 31 March 2023

Note

2023
£

(As restated)

2022
£

Cash flows from operating activities

(Loss)/profit for the year

 

(242,425)

679,476

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

3,538

1,952

Finance costs

6

2,289

-

Exceptional write off of loan

 

-

6,000

Share of profit/loss of equity accounted investees

 

(9,661)

(11,038)

Corporation tax

9

1,356

12,552

 

(244,903)

688,942

Working capital adjustments

 

Decrease/(increase) in stocks

14

1,556,390

(2,609,759)

Decrease/(increase) in trade debtors

15

287,248

(278,228)

Increase/(decrease) in trade creditors

18

1,822,156

(1,485,584)

Cash generated from operations

 

3,420,891

(3,684,629)

Corporation taxes (paid)/received

9

(1,356)

12,552

Net cash flow from operating activities

 

3,419,535

(3,672,077)

Cash flows from investing activities

 

Acquisitions of tangible assets

(1,500)

(729)

Net cash flows from investing activities

 

(1,500)

(729)

Cash flows from financing activities

 

Interest paid

6

(2,289)

-

Proceeds from bank borrowing draw downs

 

-

3,440,395

Repayment of bank borrowing

 

(3,426,544)

(1,110,541)

Net cash flows from financing activities

 

(3,428,833)

2,329,854

Net decrease in cash and cash equivalents

 

(10,798)

(1,342,952)

Cash and cash equivalents at 1 April

 

113,709

1,456,661

Cash and cash equivalents at 31 March

 

102,911

113,709

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

1

General information

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

The principal activity of the individual company and group is disclosed in the Strategic Report.

The address of its registered office and principal place of business is:
Office B
West Gainsborough Studios
1 Poole Street
LONDON
N1 5EA

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.

Basis of preparation

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, Financial Reporting Standard 102 - 'The Financial Reporting standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006.

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.

Going concern

After reviewing the group's forecasts and projections, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future due to the ongoing support of related entities. The group therefore continues to adopt the going concern basis in preparing its financial statements.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 March 2023.

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Critical accounting judgements and key sources of estimation uncertainty

In the application of the group's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historic experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Specifically, judgements and estimates are required in determining the valuation of investment property, the valuation of work in progress and the recoverability of trade debtors.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Revenue recognition

Estate Agency
Turnover represents amounts receivable for the year in respect of services to customers, net of value added tax.

Property Development
Turnover comprises the fair value of the consideration received or receivable for the sale of properties (recognised on completion) 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 and after eliminating sales within the group.

Building Supplies
Turnover comprises amounts receivable for the year in respect of the sale of building supplies. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the group.

Construction - contract revenue recognition
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date, measured as the physical proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that they have been agreed with the customer.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately as allowance for foreseeable loss.

When costs incurred on construction contracts plus recognised profits (less recognised losses) exceeds billings to contract customers, the balance is shown as amount due from contract customers. When billings to contract customers exceed costs incurred plus recognised profits (less recognised losses), the balance is shown as amount due to contract customers.

Government grants

Government grants are recognised when there is reasonable assurance that the entity will comply with the conditions attaching to the grant and the grant will be received. The company has adopted the accrual model for accounting for government grants. Grants relating to revenue are recognised in income on a systematic basis over the same period as the related costs for which the grant is intended to compensate. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset.

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Tax

The tax expense for the period comprises current 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 corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.

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

Tangible assets

Tangible assets are stated in the balance sheet 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.

Depreciation

Depreciation is charged so as to write off the cost of assets over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

25% straight line

Office equipment

20% straight line

Motor vehicles

33% straight line

Other property, plant and equipment

25% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Goodwill

Positive and negative goodwill is capitalised, classified as an asset on the balance sheet and amortised on a straight line basis over its useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

If a subsidiary, associate or business is subsequently sold or closed, any goodwill arising on acquisition that was written off directly to reserves or that has not been amortised through the profit and loss account is taken into account in determining the profit or loss on sale or closure.

Intangible assets

Other intangible assets have a finite useful life and are carried at cost less accumulated amortisation and any accumulated impairment losses.

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

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

Goodwill

10% straight line

Website

10% straight line

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial assets are classified as financial assets at fair value through profit or loss, loans and debtors, held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial assets at initial recognition.

Financial liabilities are classified as financial liabilities at fair value through profit and loss, loans and borrowings, trade and other creditors, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial liabilities at initial recognition.

 Recognition and measurement
All financial instruments are recognised initially at fair value plus transaction costs. Thereafter financial instruments are stated at amortised cost using the effective interest rate method (less impairment where appropriate) unless the effect of discounting would be immaterial in which case they are stated at cost (less impairment where appropriate). The exception to this are those financial instruments where it is a requirement to continue recording them at fair value through profit and loss.


 Impairment
Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when 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 of the asset have been affected.

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.

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Trade and other debtors

Trade and other debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment, except where the effect of discounting would be immaterial. In such cases debtors are stated at transaction price less impairment losses. 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 transaction.

Stocks

Work in progress is valued at the lower of cost and net realisable value, after due regard for obsolete and slow moving stocks. Net realisable value is based on selling price less anticipated costs to completion and selling costs. Cost includes all direct costs, capitalised interest and an appropriate proportion of fixed and variable overheads.

Finished goods are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the average cost method.

The costs of finished goods and work in progress comprise direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present condition.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling proce less costs to complete and sell, the impairment loss is recognised immediately in profit and loss.

Trade and other creditors

Trade and other creditors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, except where the effect of discounting would be immaterial. In such cases creditors are stated at transaction price.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

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 distributions to the company’s shareholders are 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 group 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.

3

Turnover

The analysis of the group's revenue for the year from continuing operations is as follows:

2023
£

2022
£

Sale of properties

6,771,363

3,266,805

Provision of construction services

10,167

(79,180)

Provision of estate agency services

162,538

138,164

Property Management services

338,731

-

7,282,799

3,325,789

The analysis of the group's turnover for the year by market is as follows:

2023
£

2022
£

UK

7,282,799

3,325,789

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2023
£

2022
£

Rental income

84,734

82,684

Miscellaneous other operating income

-

316,249

84,734

398,933

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

5

Exceptional items

2023
£

2022
£

Exceptional income - debt forgiven

-

6,000

During the year £Nil (2022: £6,000) of debt was written off by the group.

6

Interest payable and similar expenses

2023
£

2022
£

Interest expense on other loans

2,289

-

7

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2023
£

2022
£

Wages and salaries

195,356

268,543

Social security costs

18,259

26,460

Pension costs, defined contribution scheme

4,808

6,507

218,423

301,510

The average number of persons employed by the group (including the director) during the year, analysed by category was as follows:

2023
No.

2022
No.

Management

2

2

Construction

3

5

Sales

1

1

6

8

8

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

5,790

4,635

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023


 

9

Taxation

Tax charged in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

1,356

-

Deferred taxation

Arising from origination and reversal of timing differences

-

12,552

Tax expense

1,356

12,552

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

(Loss)/profit before tax

(241,069)

692,028

Corporation tax at standard rate

(46,377)

131,485

Effect of expense not deductible in determining taxable profit (tax loss)

5,266

80

Effect of tax losses

69,436

(129,700)

Increase from tax losses for which no deferred tax asset was recognised

-

12,552

Tax (decrease)/increase from effect of capital allowances and depreciation

(145)

456

Other tax effects for reconciliation between accounting profit and tax expense (income)

(26,824)

(2,321)

Total tax charge

1,356

12,552

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Deferred tax

Group

There are £2,099,636 of unused tax losses (2022 - £1,740,192) for which no deferred tax asset is recognised in the balance sheet.

10

Intangible assets

Group

Goodwill
 £

Negative goodwill
 £

Website
 £

Total
£

Cost or valuation

At 1 April 2022

51,015

(62,780)

6,655

(5,110)

At 31 March 2023

51,015

(62,780)

6,655

(5,110)

Amortisation

At 1 April 2022

45,910

(59,675)

6,655

(7,110)

Amortisation charge

5,105

(3,105)

-

2,000

At 31 March 2023

51,015

(62,780)

6,655

(5,110)

Carrying amount

At 31 March 2023

-

-

-

-

At 31 March 2022

5,105

(3,105)

-

2,000

Amortisation expense for the year and last year are included in administrative expenses.

The positive goodwill was fully amortised during the year and has no remaining useful life.

The negative goodwill was fully amortised in the year and has no remaining useful life.

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

11

Tangible assets

Group

Furniture, fittings and equipment
 £

Motor vehicles
 £

Other tangible assets
 £

Other property, plant and equipment
 £

Total
£

Cost or valuation

At 1 April 2022

29,813

7,328

24,000

29,358

90,499

Additions

1,500

-

-

-

1,500

At 31 March 2023

31,313

7,328

24,000

29,358

91,999

Depreciation

At 1 April 2022

28,458

7,328

24,000

28,555

88,341

Charge for the year

735

-

-

803

1,538

At 31 March 2023

29,193

7,328

24,000

29,358

89,879

Carrying amount

At 31 March 2023

2,120

-

-

-

2,120

At 31 March 2022

1,355

-

-

803

2,158

12

Investment properties

Group

2023
£

At 1 April 2022

196,000

At 31 March 2023

196,000

There has been no valuation of investment property by an independent valuer. The investment property was revalued by the director based on the current market value. There has been no material movement in the market value since the revaluation.

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

13

Investments

Company

2023
£

2022
£

Investments in subsidiaries

535,817

536,817

Subsidiaries

£

Cost or valuation

At 1 April 2022 and 31 March 2023

1,329,665

Disposals

(1,000)

At 31 March 2023

1,328,665

Provision

At 1 April 2022 and 31 March 2023

792,848

Carrying amount

At 31 March 2023

535,817

At 31 March 2022

536,817

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Details of undertakings

Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Holding

Proportion of voting rights and shares held

     

2023

2022

Subsidiary undertakings

Fastmild Limited

Ordinary

100%

100%

       

IDM Building Supplies Limited

Ordinary

100%

100%

         

IDM South London Limited

Ordinary

100%

100%

         

IDM North London Limited

Ordinary

100%

100%

         

IDM East London

Ordinary

0%

100%

         

IDM Land Limited

Ordinary

100%

100%

         

IDM Estates Limited

Ordinary

100%

100%

         

IDM Developments London Limited

Ordinary

100%

100%

         

IDM Construction London Limited

Ordinary

100%

100%

         

IDM Tottenham Limited

Ordinary

100%

100%

         

IDM South East Limited

Ordinary

100%

100%

         

Tiger Granville Road Limited

Ordinary

100%

100%

         

IDM Property Management LLP

Ordinary

99%

99%

         

Joint ventures

IDM Private Finance Limited

 

Ordinary

50%

50%

         

Lenta IDM LLP

 

50%

50%

         

All undertakings above share the same Registered Office as the parent.

IDM East London was disposed of during the year.

14

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Work in progress

4,553,235

6,097,281

-

-

Stocks

189,941

202,285

-

-

4,743,176

6,299,566

-

-

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Group

During the year, finance costs of £Nil (2022: £213,217) were included in work in progress at a nominal interest rate of 9.995% plus a variable lending rate.

These costs consist of interest on loans taken out for the purpose of financing the group's property developments. Note 19 provides details of interest rates on loans and borrowings.

15

Debtors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Trade debtors

 

15,365

314,178

-

-

Amounts owed by group undertakings

22

-

-

4,399,285

3,164,423

Other debtors

 

638,929

65,679

530,000

-

Prepayments

 

92,987

25,160

-

-

Accrued income

 

78,000

707,512

-

-

 

825,281

1,112,529

4,929,285

3,164,423

16

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash at bank

102,911

113,709

6,291

13,197

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

17

Analysis of changes in net debt

Group

At 1 April 2022
£

Financing cash flows
£

At 31 March 2023
£

Cash and cash equivalents

Cash

113,709

(19,650)

94,059

Borrowings

Long term borrowings

(3,426,227)

3,426,227

-

 

(3,312,518)

3,406,577

94,059

18

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Trade creditors

 

147,871

286,816

-

-

Amounts due to group undertakings

 

2,852,050

288,125

3,246,736

1,005,383

Social security and other taxes

 

79,219

70,515

-

-

Other creditors

 

499,643

475,544

465,000

369,001

Accruals and deferred income

 

145,444

781,071

9,500

9,000

 

3,724,227

1,902,071

3,721,236

1,383,384

Due after one year

 

Loans and borrowings

19

-

3,426,544

-

-

19

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

-

3,426,544

-

-

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

Group

Loans and borrowings comprised new funding denominated in Sterling with a nominal interest rate of 9.995%, and was repaid in March 2023. The carrying amount at the year end was therefore £Nil (2022: £3,426,544). It was secured by a debenture over the assets of IDM South East London Limited, a first legal charge over the property of the company, and a personal guarantee from certain related parties.

20

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £4,808 (2022 - £6,507).

21

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

2

2

2

2

         
 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

22

Related party transactions

Company

The company has taken advantage of the exemption in FRS 102 33.1A "Related Party Disclosures" from disclosing transactions with other members of the group.

Group

Income and receivables from related parties

2023

Entities with joint control or significant influence
£

Other related parties
£

Management charges

38,454

7,477

2022

Entities with joint control or significant influence
£

Other related parties
£

Management charges

45,172

27,252

Sale of property or other assets

3,225,000

-

Expenditure with and payables to related parties

2023

Entities with joint control or significant influence
£

Other related parties
£

Rendering of services

13,856

3,306

Amounts payable to related party

29,604

584,000

2022

Entities with joint control or significant influence
£

Other related parties
£

Rendering of services

16,988

3,887

Amounts payable to related party

72,189

243,534

23

Parent and ultimate parent undertaking

The company's immediate parent is Pettmond Investments Limited, incorporated in Gibraltar.

The ultimate controlling party is Finsbury Trust Company Limited.

 

IDM Investment Holdings Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

24

Prior year adjustment

During the year, additional employment tax liabilities were identified in a subsidiary company that related to earlier years. A prior year adjustment of £68,597 has been made in order to recognise the effect of these additional costs on consolidated brought forward reserves.