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Registration number: 03686185

Interactive Management Solutions Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2023

 

Interactive Management Solutions Limited

Contents

Strategic Report

1 to 2

Director's Report

3

Statement of Director's Responsibilities

4

Independent Auditor's Report

5 to 9

Profit and Loss Account

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 22

 

Interactive Management Solutions 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 company is management consultancy activities other than financial management.

Fair review of the business

2023 was a challenging year in the sector. Turnover in the year ended 31 March 2023 has reduced to £13.6 million from £14.3m. However, gross profit margins have been maintained achieving 10% in 2023.

Gross profit therefore remained strong for the year at £1.3 million.

Net assets at the balance sheet date have increased to £1.6 million from £865,000.

During the course of the year the company undertook a restructuring to introduce a holding company. This is part of the company’s longer term strategy to add other services. Interactive Management Group Limited was therefore established and the shares were transferred into this company.

The director remains pleased with the results in a challenging economic environment and believes the company has a good package of services to offer customers moving forward.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£000

13,630

14,347

Gross profit

£000

1,327

1,361

Gross profit margin

%

10

10

 

Interactive Management Solutions Limited

Strategic Report for the Year Ended 31 March 2023

Principal risks and uncertainties

As with any business, the company faces risks and uncertainties in the course of its day to day operations. The successful management of risk is essential to enable the company to deliver its strategic objectives.

Noted below is a summary of the company’s principal risks and uncertainties. Control of each of these is critical to the ongoing success of the company. As such, their management is primarily the responsibility of the director who is supported by management.

Financial risk:

The company’s operations expose it to a variety of financial risks, principally liquidity risk. Liquidity risk is managed by monitoring the cash flow position and minimising working capital exposure where possible through prompt billing to ensure that sufficient funds are available to meet amounts due for current and future operations.

Workforce risk:

If the availability of skilled workers is insufficient to meet demand, this could lead to poor customer outcomes and reduced repeat business, thereby reducing profitability and return on capital employed. Continued investment is made in the company workforce in their training and development.

Market risk:

In order to minimise exposure to market risk we undertake contracts with a variety of clients. We recognise the risk of not focusing on completing our contractual obligations and therefore strive to fulfil these to a good quality, time scale and budget. Our success in this area generates repeat custom and protects the position in the market place.

Health and safety risk:

The company has procedures and policies in place to minimise health and safety risks. The director takes this responsibility seriously and in order to manage this risk procedures and policies are constantly being reviewed.

Approved and authorised by the director on 11 April 2024
 


Mr S D Foster
Director

 

Interactive Management Solutions Limited

Director's Report for the Year Ended 31 March 2023

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

Director of the company

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

Mr S D Foster

Financial instruments

Objectives and policies

The directors take the management of risk very seriously and as such have policies and procedures in place which have been authorised by the board. Managing risk is seen as a key attribute of the company and the company's debt position is closely scrutinised on a regular basis to ensure that it remains serviceable in conjunction with the long term goals of growth and profitability.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations. In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Disclosure of information to the auditors

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 auditors are aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditors are unaware.

Approved by the Board on 11 April 2024 and signed on its behalf by:


Mr S D Foster
Director

 

Interactive Management Solutions 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 company and of the profit or loss of the company 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;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 company's transactions and disclose with reasonable accuracy at any time the financial position of 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Interactive Management Solutions Limited

Independent Auditor's Report to the Members of Interactive Management Solutions Limited

Qualified opinion

We have audited the financial statements of Interactive Management Solutions Limited (the 'company') for the year ended 31 March 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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).

In the previous accounting period, the directors of the company took advantage of audit exemption under S477 of the Companies Act. Therefore the prior period financial statements were not subject to audit.

In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its profit 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 qualified opinion on financial statements

We were not appointed as auditor of the company until after 31 March 2022 and thus did not record adequate testing on the work in progress balance at the end of that year. We were unable to satisfy ourselves by alternative means concerning the provision for days worked but not invoiced at 31 March 2022, which is included in the balance sheet for that year at £1,417,377, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.

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 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 qualified opinion.

Key audit matters

Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.

 

Interactive Management Solutions Limited

Independent Auditor's Report to the Members of Interactive Management Solutions Limited

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.

Other information

The director is 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.

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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy
ourselves concerning the work in progress provision at 31 March 2022. We have concluded that where the other information refers to the work in progress balance or related balances such as sales, it may be materially misstated for the same reason.

Opinion on other matter prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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

Except for the matter described in the basis for qualified opinion section of our report, 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.

Arising solely from the limitation on the scope of our work relating to work in progress, referred to above:
• we have not obtained all the information and explanations that we considered necessary for the
purpose of our audit.

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:

 

Interactive Management Solutions Limited

Independent Auditor's Report to the Members of Interactive Management Solutions Limited

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the 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 4], 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

 

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

the nature of the industry and sector, control environment and business performance including the design of remuneration policies;

the company’s own assessment of the risks that irregularities may occur either as a result of fraud or error;

results of our enquiries of management about their own identification and assessment of the risks of irregularities;

the key laws and regulations under which the business operates and whether management were aware of any instances of noncompliance;

whether the management have knowledge of any actual, suspected or alleged fraud;

the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

the matters discussed among the audit engagement team, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

 

Interactive Management Solutions Limited

Independent Auditor's Report to the Members of Interactive Management Solutions Limited

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: Laws and regulations applicable to the company specifically relating to employment law, valuation of work in progress and revenue recognition.

 

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Tax legislation, and Regulations established by regulators in the key markets in which the company operates specifically employment law.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty. These included the operating and environmental regulations relevant to the company.

 

In addition to the above, our procedures to respond to risks identified included the following:

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having a direct effect on the financial statements;

in addressing the risk of material misstatement through the work in progress provision, we have reviewed post year end sales invoices for any work related to the year ended 31 March 2023 but invoiced in the following years accounts;

enquiring of management, concerning any actual and potential litigation and claims;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

in addressing the risk of fraud in revenue recognition, in addition to our testing described above we have performed focussed testing on work completed close to the year-end combined with analytical review procedures to assess accuracy and completeness of revenue recognised;

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with
regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become
aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

 

Interactive Management Solutions Limited

Independent Auditor's Report to the Members of Interactive Management Solutions 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.





John Heeney BA FCA (Senior Statutory Auditor)
For and on behalf of RNS Chartered Accountants, Statutory Auditor

50-54 Oswald Road
Scunthorpe
North Lincolnshire
DN15 7PQ

11 April 2024

 

Interactive Management Solutions Limited

Profit and Loss Account for the Year Ended 31 March 2023

Note

2023
£

2022
£

Turnover

3

13,630,201

14,347,176

Cost of sales

 

(12,303,068)

(12,985,876)

Gross profit

 

1,327,133

1,361,300

Administrative expenses

 

(201,634)

(141,911)

Operating profit

4

1,125,499

1,219,389

Other interest receivable and similar income

5

21

53

Amounts written off investments

11

(168,379)

-

Interest payable and similar expenses

6

(30,293)

(65,140)

   

(198,651)

(65,087)

Profit before tax

 

926,848

1,154,302

Tax on profit

9

(209,854)

(201,783)

Profit for the financial year

 

716,994

952,519

The above results were derived from continuing operations.

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

 

Interactive Management Solutions Limited

(Registration number: 03686185)
Balance Sheet as at 31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

10

1,165

1,914

Current assets

 

Stocks

12

1,120,353

1,417,377

Debtors

13

2,324,259

1,348,590

Cash at bank and in hand

14

944,141

1,462,614

 

4,388,753

4,228,581

Creditors: Amounts falling due within one year

15

(2,806,777)

(3,364,206)

Net current assets

 

1,581,976

864,375

Total assets less current liabilities

 

1,583,141

866,289

Provisions for liabilities

16

(222)

(364)

Net assets

 

1,582,919

865,925

Capital and reserves

 

Called up share capital

17

100

100

Retained earnings

1,582,819

865,825

Shareholders' funds

 

1,582,919

865,925

Approved and authorised by the director on 11 April 2024
 


Mr S D Foster
Director

   
 

Interactive Management Solutions Limited

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

Share capital
£

Retained earnings
£

Total
£

At 1 April 2022

100

865,825

865,925

Profit for the year

-

716,994

716,994

At 31 March 2023

100

1,582,819

1,582,919

Share capital
£

Retained earnings
£

Total
£

At 1 April 2021

100

(84,694)

(84,594)

Profit for the year

-

952,519

952,519

Dividends

-

(2,000)

(2,000)

At 31 March 2022

100

865,825

865,925

 

Interactive Management Solutions Limited

Statement of Cash Flows for the Year Ended 31 March 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

716,994

952,519

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

852

826

Finance income

5

(21)

(53)

Finance costs

6

8,179

-

Corporation tax expense

9

209,854

201,783

Amounts written off investments

168,379

-

 

1,104,237

1,155,075

Working capital adjustments

 

Decrease/(increase) in stocks

12

297,024

(293,201)

Increase in trade and other debtors

13

(975,669)

(736,199)

(Decrease)/increase in trade and other creditors

15

(767,425)

232,563

Net cash flow from operating activities

 

(341,833)

358,238

Cash flows from investing activities

 

Interest received

5

21

53

Acquisitions of tangible assets

10

(103)

(1,055)

Acquisition of other financial assets

11

(168,379)

-

Net cash flows from investing activities

 

(168,461)

(1,002)

Cash flows from financing activities

 

Interest paid

6

(8,179)

-

Dividends paid

18

-

(2,000)

Net cash flows from financing activities

 

(8,179)

(2,000)

Net (decrease)/increase in cash and cash equivalents

 

(518,473)

355,236

Cash and cash equivalents at 1 April

 

1,462,614

1,107,378

Cash and cash equivalents at 31 March

14

944,141

1,462,614

 

Interactive Management Solutions 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 address of its registered office is:
Unit 4B, Warren Hill
Hulfords Lane
Hartley Wintney
Hook
RG27 8AG

The company registered number is: 03686185

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The
Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the
Companies Act 2006'.

Basis of preparation

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

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax.

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

Government grants

Grant income relating to revenue is recognised on an accruals basis. Income is recognised on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. A grant that becomes receivable as compensation for expenses or losses already incurred, or for the purpose of giving immediate financial support with no future related costs, is recognised as income in the period in which it becomes receivable.

 

Interactive Management Solutions Limited

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

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

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

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

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

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

Furniture, fittings and equipment

25% on cost

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.

 

Interactive Management Solutions Limited

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

Trade debtors

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

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

Stocks

The cost of work in progress comprises direct labour costs that have been incurred in bringing the work in progress to their present location and condition. At each reporting date, work in progress is assessed for impairment.

Trade creditors

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

Share capital

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

Dividends

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

Defined contribution pension obligation

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

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

 

Interactive Management Solutions Limited

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

Defined benefit pension obligation

Typically defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the reporting date minus the fair value of plan assets. The defined benefit obligation is measured using the projected unit credit method. The present value of the defined benefit obligation is determined by discounting the estimated future payments by reference to market yields at the reporting date on high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.

Actuarial gains and losses are charged or credited to other comprehensive income in the period in which they arise.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Provision of services

13,630,201

14,296,912

Grants received

-

50,264

13,630,201

14,347,176

4

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

852

826

5

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

21

53

6

Interest payable and similar expenses

2023
£

2022
£

Interest expense on other finance liabilities

8,179

-

Foreign exchange gains

22,114

65,140

30,293

65,140

 

Interactive Management Solutions Limited

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

7

Staff costs

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

2023
£

2022
£

Wages and salaries

3,960,135

4,337,681

Social security costs

419,912

402,153

Pension costs, defined contribution scheme

97,592

88,594

4,477,639

4,828,428

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

2023
No.

2022
No.

Production

158

176

158

176

8

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

5,500

-


 

 

Interactive Management Solutions Limited

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

9

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

209,996

201,419

Deferred taxation

Arising from origination and reversal of timing differences

(142)

364

Tax expense in the profit and loss account

209,854

201,783

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

The differences are reconciled below:

2023
£

2022
£

Profit before tax

926,848

1,154,302

Corporation tax at standard rate

176,101

219,317

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

33,753

-

Deferred tax (credit)/expense from unrecognised temporary difference from a prior period

(142)

277

Tax increase from effect of capital allowances and depreciation

142

44

Tax decrease from effect of unrelieved tax losses carried forward

-

(17,855)

Total tax charge

209,854

201,783

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

222

222

2022

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

364

364

 

Interactive Management Solutions Limited

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

10

Tangible assets

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 April 2022

52,289

52,289

Additions

103

103

At 31 March 2023

52,392

52,392

Depreciation

At 1 April 2022

50,375

50,375

Charge for the year

852

852

At 31 March 2023

51,227

51,227

Carrying amount

At 31 March 2023

1,165

1,165

At 31 March 2022

1,914

1,914

11

Other financial assets (current and non-current)

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

Additions

168,379

168,379

At 31 March 2023

168,379

168,379

Impairment

Losses made in the period

168,379

168,379

At 31 March 2023

168,379

168,379

Carrying amount

At 31 March 2023

-

-

12

Stocks

2023
£

2022
£

Work in progress

1,120,353

1,417,377

 

Interactive Management Solutions Limited

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

13

Debtors

Current

2023
£

2022
£

Trade debtors

201,259

475,590

Amounts owed by related parties

2,085,000

-

Director's loan account

38,000

873,000

 

2,324,259

1,348,590

14

Cash and cash equivalents

2023
£

2022
£

Cash at bank

944,141

1,462,614

15

Creditors

2023
£

2022
£

Due within one year

Trade creditors

1,836,133

2,154,574

Social security and other taxes

544,901

1,005,513

Outstanding defined contribution pension costs

299

-

Accrued expenses

14,029

2,700

Corporation tax liability

411,415

201,419

2,806,777

3,364,206

16

Provisions for liabilities

Deferred tax
£

Total
£

At 1 April 2022

364

364

Decrease in existing provisions

(142)

(142)

At 31 March 2023

222

222

17

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

         
 

Interactive Management Solutions Limited

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

18

Dividends

Final dividends paid

 

2023
£

2022
£

Final dividend of £0 (2022 - £20) per each ordinary share share

-

2,000

     

19

Related party transactions

Transactions with the director

2023

At 1 April 2022
£

Advances to director
£

Repayments by director
£

At 31 March 2023
£

Mr S D Foster

873,000

578,000

1,413,000

38,000

         

2022

At 1 April 2021
£

Advances to director
£

At 31 March 2022
£

Mr S D Foster

-

873,000

873,000

       
     

 

20

Parent and ultimate parent undertaking

The company's immediate parent is Interactive Management Group Limited, incorporated in UK.

 The parent of the largest group in which these financial statements are to be consolidated is Interactive Management Group Limited, incorporated in the UK.

The address of Interactive Management Group Limited is:
Unit 4B Warren Hill
Hullfords Lane
Hartly Wintney
Hook
Hampshire
RG27 8AG