Company registration number 08884038 (England and Wales)
NUMBERMILL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
NUMBERMILL LIMITED
COMPANY INFORMATION
Director
Mr Imran Qadeer
(Appointed 17 January 2024)
Company number
08884038
Registered office
Focus 31 - East Wing Mark Road
Hemel Hempstead Industrial Estate
Hemel Hempstead
England
HP2 7BW
Auditor
Morgan Berkeley Limited
Westgate Chambers
8a Elm Park Road
Pinner
Middlesex
HA5 3LA
Business address
Focus 31 - East Wing Mark Road
Hemel Hempstead Industrial Estate
Hemel Hempstead
England
HP2 7BW
NUMBERMILL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 20
NUMBERMILL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -
The director presents the strategic report and financial statements for the year 1 April 2023 to 31 March 2024.
Review of the business
The company has consolidated on its results from the previous year.
Turnover has decreased by 13% from last year to £61,066,582 (2023: £70,493,572) but the company has had a good year building on the continued growth in the previous year, meaning that Gross Profit has increased by 1% year on year.
The reason for this continued growth is the company's ability to navigate market trends and maximise opportunity with regard to IR35, Outsourcing and Consultancy. The company continues to work across multiple sectors so is not materially affected by changes in any one sector and the continued cost of living hardship being felt in the UK economy as a result of the war in Ukraine and the resulting energy and food price increases. The company continually seeks more efficient ways of operating and as a consequence the financial outlook for the next financial year continues to be promising.
The director does not consider that the provision of any other KPI's are necessary for the understanding of the performance or position of the company. Despite the competitive market the director expects the turnover to at least stay the same in the future.
Principal risks and uncertainties
The company has identified the following risks that could impact the business and regularly reviews and monitors these risks.
Operating risk
As with all businesses, operating risks include fraud, employee error, staff shortages, internal control failures, equipment failures and external party failures. Due to the nature of the company's business, they also include compliance risks. The company has implemented and continually improves controls and procedures to mitigate operating risk. This includes engaging specialists to undertake industry audits to confirm compliance. However, there is no guarantee that these procedures and controls will be effective in mitigating all operating risk. The company acknowledges that competition exists in the market place but does not consider that it poses a major risk to the business.
Liquidity risk
The company has sufficient liquidity to manage any short-term issues. The company reviews its ongoing cash commitments to ensure it is not exposed to liquidity risk.
Financial and Credit risk
The company's main assets are bank and trade debtors and its credit risk mainly relates to trade debtors. Trade debtors are included in the balance sheet net of any provision for doubtful debts that have been identified. As income from customers is not generally paid over to contractors and HMRC until received from the customer these risks are low.
Fraud risk
The company reviews fraud risk and maintains internal controls to mitigate fraud. However, there is no certainty that the controls will be effective in preventing all fraud.
Legislation risk
The company's business activity is to provide employment solutions to its customers. Any major changes in employment or tax legislation are a potential risk to the business as the company has to tailor its operations to meet UK tax requirements.
NUMBERMILL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
SECTION 172(1) STATEMENT
The director acknowledges their duties under Section 172 of the Companies Act 2006 in their deliberations and decisions on all matters affecting the company.
Long term approach
The director is focused on the success of the company over the long term. The director believes that the long-term success of the company is linked directly to its key stakeholders.
Employees (including disabled employees)
The director is committed to ensuring there is a climate in which all employees can develop and deliver their best. As the majority of employees are contractors who have variable working conditions depending on the assignment they are working on, any issues or complaints are dealt with on an ad-hoc basis. The company will whenever possible, continue to employee staff who may become disabled and will offer and provide additional training as necessary.
Engagement with suppliers, customers and other stakeholders
The director has regular contact and engagement with the directors and senior management of customers and key suppliers to foster and nurture ongoing business relationships.
High standards of business conduct
The company aims to be a responsible and committed employer and business partner. The company is committed in its day-to-day operations to uphold high standards of business conduct and integrity. The directors ensure that compliance procedures are followed including UK legislation under the Bribery Act and Modern Slavery Act.
Acting fairly between members of the Company
The director acknowledges their duty to ensure that all members of the company are treated fairly.
Mr Imran Qadeer
Director
19 July 2024
NUMBERMILL LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
The director presents his annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of business consultancy, umbrella company services and back office outsourcing services to the recruitment industry.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mrs L Rayner
(Resigned 17 January 2024)
Mr G Campbell-Collins
(Resigned 17 January 2024)
Mr A L Thompson
(Resigned 17 January 2024)
Mr Imran Qadeer
(Appointed 17 January 2024)
Auditor
Morgan Berkeley Limited was appointed as auditor to the company during the year in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Energy and carbon report
As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.
Statement of director's responsibilities
The director is responsible 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 then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
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 them 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.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
NUMBERMILL LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
On behalf of the board
Mr Imran Qadeer
Director
19 July 2024
NUMBERMILL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NUMBERMILL LIMITED
- 5 -
Opinion
We have audited the financial statements of NumberMill Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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 our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 March 2024 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.
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 company 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 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 financial statements are 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the 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 the director's report have been prepared in accordance with applicable legal requirements.
NUMBERMILL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NUMBERMILL LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception
In the light of the 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the director was not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the director's report.
Responsibilities of director
As explained more fully in the director's responsibilities statement, 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 has no realistic alternative but to do so.
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. We also considered laws and regulations that have a direct impact on the preparation of the financial statements, such as the Companies Act 2006.
We evaluated the directors’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
Discussing with the directors and management their policies and procedures regarding compliance with laws and regulations;
Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit; and
Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud.
NUMBERMILL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NUMBERMILL LIMITED (CONTINUED)
- 7 -
Our audit procedures in relation to fraud included but were not limited to:
Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Discussing amongst the engagement team the risks of fraud; and
Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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.
Pierre Yat Keung Leong
Senior Statutory Auditor
For and on behalf of Morgan Berkeley Limited
21 July 2024
Chartered Certified Accountants
Statutory Auditor
Westgate Chambers
8a Elm Park Road
Pinner
Middlesex
HA5 3LA
NUMBERMILL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
61,066,582
70,493,572
Cost of sales
(58,633,749)
(68,116,370)
Gross profit
2,432,833
2,377,202
Administrative expenses
(1,707,734)
(1,433,442)
Other operating income
4,500
1,000
Operating profit
729,599
944,760
Interest receivable and similar income
133
64
Interest payable and similar expenses
(1,700)
Profit before taxation
728,032
944,824
Tax on profit
5
(197,726)
(178,791)
Profit for the financial year
530,306
766,033
The profit and loss account has been prepared on the basis that all operations are continuing operations.
NUMBERMILL LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
6
1,667
Tangible assets
7
32,436
37,441
32,436
39,108
Current assets
Debtors
8
2,905,545
3,075,342
Cash at bank and in hand
3,174,755
5,083,582
6,080,300
8,158,924
Creditors: amounts falling due within one year
9
(4,510,517)
(7,127,090)
Net current assets
1,569,783
1,031,834
Total assets less current liabilities
1,602,219
1,070,942
Provisions for liabilities
(7,770)
(6,799)
Net assets
1,594,449
1,064,143
Capital and reserves
Called up share capital
11
1,853
1,853
Profit and loss reserves
1,592,596
1,062,290
Total equity
1,594,449
1,064,143
The financial statements were approved by the board of directors and authorised for issue on 19 July 2024 and are signed on its behalf by:
Mr Imran Qadeer
Director
Company registration number 08884038 (England and Wales)
NUMBERMILL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
1,853
696,257
698,110
Year ended 31 March 2023:
Profit and total comprehensive income
-
766,033
766,033
Dividends
-
(400,000)
(400,000)
Balance at 31 March 2023
1,853
1,062,290
1,064,143
Year ended 31 March 2024:
Profit and total comprehensive income
-
530,306
530,306
Balance at 31 March 2024
1,853
1,592,596
1,594,449
NUMBERMILL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
15
(1,195,413)
564,244
Interest received/(paid)
(1,700)
Income taxes paid
(176,930)
(174,393)
Net cash (outflow)/inflow from operating activities
(1,374,043)
389,851
Investing activities
Purchase of tangible fixed assets
(11,609)
(39,287)
Proceeds from other investments and loans
(523,308)
Interest received
133
64
Net cash used in investing activities
(534,784)
(39,223)
Financing activities
Dividends paid
(400,000)
Net cash used in financing activities
(400,000)
Net decrease in cash and cash equivalents
(1,908,827)
(49,372)
Cash and cash equivalents at beginning of year
5,083,582
5,132,954
Cash and cash equivalents at end of year
3,174,755
5,083,582
NUMBERMILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information
NumberMill Limited is a private company limited by shares incorporated in England and Wales. The registered office is Focus 31 - East Wing Mark Road, Hemel Hempstead Industrial Estate, Hemel Hempstead, England, HP2 7BW.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Turnover
Turnover is recognised to the extent that the company obtains the right to consideration for its performance. Turnover is measured at the fair value of the consideration received, excluding discounts and value added tax.
Revenue from the supply of services is recognised when the significant risks and rewards of the services have passed to the client (usually on provision of the service), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Development costs
Straight line over 5 years
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
Straight line over 3 years
Computer equipments
Straight line over 2-5 years
NUMBERMILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.5
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.6
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
NUMBERMILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.7
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
1.8
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
NUMBERMILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Retirement benefits
The company operates a defined contribution scheme for the benefit of its employees. Contributions payable to the company's pension scheme are charged to the profit and loss account in the year they are payable.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.12
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
NUMBERMILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
3
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
14,635
6,975
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
27
27
5
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
196,755
176,744
Deferred tax
Origination and reversal of timing differences
971
2,047
Total tax charge
197,726
178,791
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
728,032
944,824
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
182,008
179,517
Tax effect of expenses that are not deductible in determining taxable profit
13,568
1,684
Adjustments in respect of prior years
(126)
Capital allowances in excess of depreciation
(4,331)
Deferred tax
971
2,047
Depreciation in excess of capital allowances
1,177
Rounding
2
Taxation charge for the year
197,726
178,791
NUMBERMILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
6
Intangible fixed assets
Other
£
Cost
At 1 April 2023 and 31 March 2024
21,530
Amortisation and impairment
At 1 April 2023
19,863
Amortisation charged for the year
1,667
At 31 March 2024
21,530
Carrying amount
At 31 March 2024
At 31 March 2023
1,667
Intangible assets represent the website and brand development costs.
7
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 April 2023
223,806
Additions
11,609
At 31 March 2024
235,415
Depreciation and impairment
At 1 April 2023
186,365
Depreciation charged in the year
16,614
At 31 March 2024
202,979
Carrying amount
At 31 March 2024
32,436
At 31 March 2023
37,441
8
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
857,182
1,082,924
Other debtors
2,048,363
1,992,418
2,905,545
3,075,342
NUMBERMILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
9
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
44,431
117,054
Corporation tax
196,753
176,929
Other taxation and social security
2,606,710
4,207,081
Other creditors
1,662,623
2,626,026
4,510,517
7,127,090
10
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2024
2023
Balances:
£
£
ACAs
7,770
6,799
2024
Movements in the year:
£
Liability at 1 April 2023
6,799
Charge to profit or loss
971
Liability at 31 March 2024
7,770
11
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary Shares of 10p each
6,300
6,300
630
630
B Ordinary Share of 10p each
6,300
6,300
630
630
C Ordinary Share of 10p each
5,559
5,559
556
556
D Ordinary Share of 10p each
368
368
37
37
18,527
18,527
1,853
1,853
NUMBERMILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
12
Related party transactions
Transactions with related parties
NumberMill Accounting Limited
NumberMill Accounting Limited is a related party due to Mr Qadeer being a director.
During the year, NumberMill Limited made payments on behalf of NumberMill Accounting Limited.
The amounts recharged during the year for costs incurred and loan payments made amounted to £643,277 (2023: £443,734).
The amounts owed by NumberMill Accounting Limited at the year end was £85,045 (2023: £138,114) and is reflected under the other debtors.
NMPCFS Limited
NMPCFS Limited is a related party due to Mr Qadeer being a director.
During the period to 17 January 2024, NumberMill Limited charged NMPCFS Limited management charges amounting to £71,245 (2023: £215,535).
Amounts due from NMPCFS Limited at the year end was £217,729 (2023: Amounts owed £224,663) and is reflected under other debtors (2023: other creditors).
13
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
£
£
Within one year
22,752
32,371
Between two and five years
52,361
88,770
75,113
121,141
NUMBERMILL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
14
Parent company
The immediate parent company of NumberMill Limited is Quitron Holding Ltd, a company registered in England and Wales. The ultimate parent company is Oltfum Fund RAIF V.C.I.C Ltd, a company registered in Cyprus, with its registered office address at Bybloserve Business Centre, Floor 2, Spyrou Kyprianoy 57, 6051 Larnaca, Cyprus.
The results of NumberMill Limited is consolidated in its ultimate parent company, Oltfum Fund RAIF V.C.I.C Ltd which prepares consolidated financial statements. Copies of the consolidated financial statement can be obtained at the ultimate parent company's registered office.
15
Cash generated from operations
2024
2023
£
£
Profit/(loss) for the year after tax
530,306
766,033
Adjustments for:
Taxation charged
197,726
178,791
Finance costs
1,700
Investment income
(133)
(64)
Amortisation and impairment of intangible assets
1,667
2,600
Depreciation and impairment of tangible fixed assets
16,613
24,613
Movements in working capital:
Decrease/(increase) in debtors
693,105
(1,260,701)
(Decrease)/increase in creditors
(2,636,397)
852,972
Cash (absorbed by)/generated from operations
(1,195,413)
564,244
16
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
5,083,582
(1,908,827)
3,174,755
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