REGISTERED NUMBER: 12435904 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
Ivymax Ltd |
REGISTERED NUMBER: 12435904 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
for |
Ivymax Ltd |
Ivymax Ltd (Registered number: 12435904) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Income Statement | 7 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Financial Statements | 15 |
Ivymax Ltd |
Company Information |
for the Year Ended 31 December 2023 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
Ivymax Ltd (Registered number: 12435904) |
Group Strategic Report |
for the Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
REVIEW OF BUSINESS |
The performance of the group during the financial year and the results of those operations can be found on page 8 of the financial statements. The directors believe that the results for the year are satisfactory. |
The group's results include the first full year's trading from the acquisition of the Avisford Park Hotel on 1 December 2022. In addition, on 1 January 2023, the group sold its subsidiary Lowman Hotels Ltd and its subsidiary Ivymax 1 Ltd. |
The group's overall aim is to increase shareholder value and the directors intend to continue with the strategy of achieving sustainable growth in the future. |
Key performance Indicators |
The group made a profit before tax of £693,231 (2022: loss £45,412). |
2023 | 2022 |
Gross Profit (%) | 32.65% | 42.0% | Gross profit / Turnover |
The directors are of the opinion that, given the straightforward nature of the business, further analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the group. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the group are in relation to the group as a whole and include the following: |
1) The impact of current economic conditions on consumer spending levels: the Group operates in an industry which is impacted by consumer spending levels. Ivymax Hotels Group operates in a variety of markets including corporate, leisure, conference and functions. This usually provides the Group with adequate sheltering from the impact of any drop in consumer spending levels. |
2) Debtors: the company maintains strong relationships with its key customers and has established credit control parameters. Appropriate credit terms are agreed with key customers and these are closely monitored. The group's exposure to bad debts as a result was minimal. |
3) Competitive risk: the company operates in competitive markets. Product development by competitors could adversely affect the company. The company's focus on quality and standards together with the continual investment in its product reduces the possible effect of any action by any single competitor. |
4) Political risk: The situation in Ukraine with rising prices in the period since March 2022 for oil and gas has affected the UK and Europe particularly not to mention globally and the directors have taken steps during 2023 to mitigate its costs accordingly. |
The financial statements have been prepared on a going concern basis, as explained in note 3 to the financial statements. |
FUTURE DEVELOPMENTS |
The group is continuing to support the development of the facilities offered by the group in the coming year to achieve continued growth. |
ON BEHALF OF THE BOARD: |
Ivymax Ltd (Registered number: 12435904) |
Report of the Directors |
for the Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of a hotelier. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Ivymax Ltd |
Opinion |
We have audited the financial statements of Ivymax Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement 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 our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's 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 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 Auditors' 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 group's and the parent 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 directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
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 directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditors to the Members of |
Ivymax Ltd |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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. |
Capability of the audit in detecting irregularities, including fraud |
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to health and safety, employment law and company legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the Company. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and taxation legislation. We evaluated 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 inappropriate journal entries to increase revenue or reduce expenditure, and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included: |
- | Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud; |
- | Understanding of management's internal controls designed to prevent and detect irregularities, and fraud; |
- | Reviewing the Company's legal costs to check for non-compliance with laws and regulations and fraud; |
- | Review of tax compliance with the involvement of our tax specialists in the audit; |
- | Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing of expenses; |
- | Testing transactions entered into outside of the normal course of the Company's business; and |
- | Identifying and testing journal entries, in particular any journal entries with fraud characteristics such as journals with round numbers. |
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. |
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 Report of the Auditors. |
Other matters |
The corresponding figures for the prior period are unaudited. |
Report of the Independent Auditors to the Members of |
Ivymax Ltd |
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 a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditor |
Chartered Accountants |
Suite B, Blackdown House |
Blackbrook Park Avenue |
Taunton |
Somerset |
TA1 2PX |
Ivymax Ltd (Registered number: 12435904) |
Consolidated |
Income Statement |
for the Year Ended 31 December 2023 |
2023 | 2023 | 2023 |
Continuing | Discontinued | Total |
Notes | £ | £ | £ |
TURNOVER | 4,303,503 | - | 4,303,503 |
Cost of sales | (2,898,252 | ) | - | (2,898,252 | ) |
GROSS PROFIT | 1,405,251 | - | 1,405,251 |
Administrative expenses | (1,473,622 | ) | - | (1,473,622 | ) |
OPERATING LOSS | 5 | (68,371 | ) | - | (68,371 | ) |
Profit/loss on sale of |
investments | 6 | 762,041 | - | 762,041 |
693,670 | - | 693,670 |
Interest payable and similar expenses | 7 | (439 | ) | - | (439 | ) |
PROFIT BEFORE TAXATION | 693,231 | - | 693,231 |
Tax on profit | 8 | (11,138 | ) | - | (11,138 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 682,093 |
Ivymax Ltd (Registered number: 12435904) |
Consolidated |
Income Statement |
for the Year Ended 31 December 2023 |
2022 | 2022 | 2022 |
Continuing | Discontinued | Total |
Unaudited |
Notes | £ | £ | £ |
TURNOVER | 273,264 | 1,459,020 | 1,732,284 |
Cost of sales | (220,399 | ) | (783,673 | ) | (1,004,072 | ) |
GROSS PROFIT | 52,865 | 675,347 | 728,212 |
Administrative expenses | (79,392 | ) | (700,232 | ) | (779,624 | ) |
(26,527 | ) | (24,885 | ) | (51,412 | ) |
Other operating income | - | 6,000 | 6,000 |
OPERATING LOSS and |
LOSS BEFORE TAXATION | (26,527 | ) | (18,885 | ) | (45,412 | ) |
Tax on loss | 8 | 3,485 | (10,162 | ) | (6,677 | ) |
LOSS FOR THE FINANCIAL YEAR | ( | ) | ( | ) | ( | ) |
Loss attributable to: |
Owners of the parent | (52,089 | ) |
Ivymax Ltd (Registered number: 12435904) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Unaudited |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE YEAR | 682,093 | (52,089 | ) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR | 682,093 | (52,089 | ) |
Total comprehensive income attributable to: |
Owners of the parent | 682,093 | (52,089 | ) |
Ivymax Ltd (Registered number: 12435904) |
Consolidated Balance Sheet |
31 December 2023 |
2023 | 2022 |
Unaudited |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | - | 558,279 |
Tangible assets | 11 | 8,223,005 | 10,495,563 |
Investments | 12 | - | - |
8,223,005 | 11,053,842 |
CURRENT ASSETS |
Stocks | 13 | 34,785 | 42,961 |
Debtors | 14 | 245,542 | 332,726 |
Cash at bank and in hand | 373,126 | 617,519 |
653,453 | 993,206 |
CREDITORS |
Amounts falling due within one year | 15 | 8,119,676 | 12,031,493 |
NET CURRENT LIABILITIES | (7,466,223 | ) | (11,038,287 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES | 756,782 | 15,555 |
CREDITORS |
Amounts falling due after more than one year | 16 | (51,481 | ) | - |
PROVISIONS FOR LIABILITIES | 19 | (7,653 | ) | - |
NET ASSETS | 697,648 | 15,555 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 100 | 100 |
Retained earnings | 21 | 697,548 | 15,455 |
SHAREHOLDERS' FUNDS | 697,648 | 15,555 |
The financial statements were approved by the Board of Directors and authorised for issue on 13 August 2024 and were signed on its behalf by: |
D Singh - Director |
Ivymax Ltd (Registered number: 12435904) |
Company Balance Sheet |
31 December 2023 |
2023 | 2022 |
Unaudited |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS/(LIABILITIES) | ( | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES | ( | ) |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Retained earnings | ( | ) |
SHAREHOLDERS' FUNDS | ( | ) |
Company's profit/(loss) for the financial year | 3,698,045 | (2,910,693 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
Ivymax Ltd (Registered number: 12435904) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | 100 | 67,544 | 67,644 |
Changes in equity |
Total comprehensive income | - | (52,089 | ) | (52,089 | ) |
Balance at 31 December 2022 | 100 | 15,455 | 15,555 |
Changes in equity |
Total comprehensive income | - | 682,093 | 682,093 |
Balance at 31 December 2023 | 100 | 697,548 | 697,648 |
Ivymax Ltd (Registered number: 12435904) |
Company Statement of Changes in Equity |
for the Year Ended 31 December 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2022 | ( | ) | ( | ) |
Changes in equity |
Total comprehensive income | - | ( | ) | ( | ) |
Balance at 31 December 2022 | ( | ) | ( | ) |
Changes in equity |
Total comprehensive income | - |
Balance at 31 December 2023 |
Ivymax Ltd (Registered number: 12435904) |
Consolidated Cash Flow Statement |
for the Year Ended 31 December 2023 |
2023 | 2022 |
Unaudited |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 25 | 635,727 | 3,497,575 |
Interest element of hire purchase payments paid | (439 | ) | - |
Net cash from operating activities | 635,288 | 3,497,575 |
Cash flows from investing activities |
Purchase of intangible fixed assets | - | (7 | ) |
Purchase of tangible fixed assets | (147,615 | ) | (8,331,401 | ) |
Sale of tangible fixed assets | 46,752 | - |
Sale of business | (78,767 | ) | - |
Net cash from investing activities | (179,630 | ) | (8,331,408 | ) |
Cash flows from financing activities |
Capital repayments in year | (80,051 | ) | - |
Amount introduced by directors | - | 5,037,871 |
Amount withdrawn by directors | (620,000 | ) | - |
Net cash from financing activities | (700,051 | ) | 5,037,871 |
(Decrease)/increase in cash and cash equivalents | (244,393 | ) | 204,038 |
Cash and cash equivalents at beginning of year | 26 | 617,519 | 413,481 |
Cash and cash equivalents at end of year | 26 | 373,126 | 617,519 |
Ivymax Ltd (Registered number: 12435904) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 December 2023 |
1. | STATUTORY INFORMATION |
Ivymax Ltd is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The company's principal place of business is Avisford Park Hotel, Yapton Lane, Walberton, Arundel, West Sussex BN18 0LS. |
2. | STATEMENT OF COMPLIANCE |
The financial statements of the Group have been prepared in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland ("FRS 102") and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going Concern |
Banking facilities across the group have been renewed since the year end in 2024 and the directors have confirmed they will not seek repayment of the loan provided to the business beyond the amount in shown in note 23. As a result, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future and have prepared the accounts on a going concern basis. |
Basis of consolidation |
The consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to 31 December 2023. Unless the merger accounting method is permitted by FRS 102, the purchase method has been adopted. Under this method, the results of the subsidiary undertakings acquired or disposed of in the year are included in the consolidated income statement from the date of acquisition or up to the date of disposal. |
The cost of the business combination is measured at the aggregate of the fair values (at the date of exchange) of assets given, liabilities incurred or assumed, and equity instruments issued by the Group in exchange for control of the acquiree, plus costs directly attributable to the business combination. Any excess of the cost of the business combination over the Group’s interest in the net fair value of the identifiable assets and liabilities is recognised as goodwill. For the purpose of impairment testing, the goodwill acquired in a business combination is allocated, on acquisition date, to the cash generating units that are expected to benefit from the synergies of the combination. |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Ivymax Ltd (Registered number: 12435904) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is recognised when the significant risks and rewards of the goods and services provided are transferred to the buyer, the amount of turnover can be measured reliably and it is probable that the economic benefits associated with the rendering transaction will flow to the group. |
Turnover represents the total invoice value, excluding value added tax, of sales made during the year. |
Turnover for the group comprises of the following streams: |
1) Sale of goods - Turnover from the sale of food and beverages is recognised at the point of sale. |
2) Rendering of services - Turnover from room sales and other guest services is recognised when rooms are occupied and as services are provided. |
Goodwill |
Goodwill, being the amount paid in connection with the acquisition of a business in 2022, has been amortised over its estimated useful life of one year. |
Intangible assets |
Patents and licences, in connection with the acquisition of a business in 2022, have been amortised over their estimated useful life of one year. |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Freehold Land is not depreciated. |
All fixed assets are initially recorded at cost. Expenditures incurred after the fixed assets have been put into operation, such as repairs and maintenance and overhaul costs, are normally charged to the profit and loss account in the period in which the costs are incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in an increase in the future economic benefits expected to be obtained from the use of the item of property and equipment beyond its originally assessed standard of performance, the expenditures are capitalised as an additional cost of property and equipment. |
Subsequent additions and major components |
Subsequent costs are included in the asset's carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the company and the cost can be measured reliably. |
The carrying amount of any replaced component is derecognised. Major components are treated as a separate asset when they have significantly different patterns of consumption of economic benefits and are depreciated separately over their useful lives. |
Derecognition |
Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in profit or loss. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Ivymax Ltd (Registered number: 12435904) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
Financial assets |
Basic financial assets, including trade and other debtors, cash and bank balances, are initially recognised at transaction price, 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. |
Such assets are subsequently carried at amortised cost using the effective interest method. |
Financial assets are derecognised when: |
a) the contractual rights to the cash flows from the asset expire or are settled, or |
b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or |
c) the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
Financial liabilities |
Basic financial liabilities, including trade and other creditors and bank loans and overdrafts, 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 receipts discounted at a market rate of interest. |
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. Trade creditors 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. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
The group provides a range of benefits to employees, including paid holiday arrangements and defined contribution pension plans. |
Short term benefits |
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received. |
Ivymax Ltd (Registered number: 12435904) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Impairment of assets |
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below: |
Non-financial assets |
At each balance sheet date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset (or asset's cash generating unit) may be impaired. If there is such an indication the recoverable amount of the asset (or asset's cash generating unit) is compared to the carrying amount of the asset (or asset's cash generating unit). |
The recoverable amount of the asset (or asset's cash generating unit) is the higher of the fair value less costs to sell and value in use. Value is use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the asset's (or asset's cash generating unit) continued use. These cash flows are discounted using a pre-tax discount rate that represents the current market risk-free rate and risks inherent in the asset. |
If the recoverable amount of the asset (or asset's cash generating unit) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the profit and loss account, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter an excess is recognised in profit or loss. |
If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset's cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the profit and loss account. |
Financial assets |
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate. |
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the report date. |
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. |
Ivymax Ltd (Registered number: 12435904) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
3. | ACCOUNTING POLICIES - continued |
Basic financial statements |
Trade Debtors |
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
Cash and cash equivalent |
Cash and cash equivalents includes cash in hand, deposits held at call with banks and other short-term highly liquid investments with original maturities of three months or less. |
Trade and other creditors |
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
Provisions and contingencies |
Provisions |
Provisions are recognised when the company has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will be required to settle the obligation; and the amount of the obligation can be estimated reliably. |
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small. |
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as a finance cost. |
Contingencies |
Contingent liabilities are not recognised. Contingent liabilities arise as a result of past events when (a) it is not probable that there will be an outflow of resources or that the amount cannot be reliably measured at the reporting date or (b) when the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not wholly within the company's control. Contingent liabilities are disclosed in the financial statements unless the probability of an outflow of resources is remote. |
Contingent assets are not recognised. Contingent assets are disclosed in the financial statements when an inflow of economic benefit is probable. |
Distributions to equity holders |
Dividends and other distributions to group's shareholders are recognised as a liability in the financial statements in the period in which the dividends and other distributions are approved by the group's shareholders. These amounts are recognised in the statement of changes in equity. |
Related party transactions |
The group discloses transactions with related parties which are not wholly owned by the same group. It does not disclose transactions with members of the same group that are wholly owned. |
For the purposes of these financial statements, a party is considered to be related to the group if: |
i) the party has the ability, directly or indirectly, through one or more intermediaries, to control the Group or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the company; |
ii) the group and the party are subject to common control; |
iii) the party is an associate of the group or a joint venture in which the company is a venturer; |
iv) the party is a member of key management personnel of the group or the group's parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; |
v) the party is a close family member of a party referred to in (iv) or is an entity under the control, joint control or significant influence of such individuals; or the party is a post-employment benefit plan which is for the benefit of employees of the company or of any entity that is a related party of the group. |
Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. |
Ivymax Ltd (Registered number: 12435904) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
Unaudited |
£ | £ |
Wages and salaries | 1,742,238 | 636,827 |
Social security costs | 124,865 | 41,747 |
Other pension costs | 31,723 | 6,888 |
1,898,826 | 685,462 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Unaudited |
Direct | 90 | 127 |
Management | 3 | 4 |
2023 | 2022 |
Unaudited |
£ | £ |
Directors' remuneration | - | - |
5. | OPERATING LOSS |
The operating loss is stated after charging/(crediting): |
2023 | 2022 |
Unaudited |
£ | £ |
Hire of plant and machinery | (14,878 | ) | - |
Other operating leases | 32,577 | - |
Depreciation - owned assets | 282,601 | 136,707 |
Profit on disposal of fixed assets | (98 | ) | - |
Goodwill amortisation | - | 64,288 |
Auditors' remuneration | 26,000 | - |
Auditors' remuneration for non audit work | 29,942 | - |
6. | EXCEPTIONAL ITEMS |
2023 | 2022 |
Unaudited |
£ | £ |
Profit/loss on sale of |
investments | 762,041 | - |
The group sold its subsidiary Lowman Hotels Ltd including its own subsidiary Ivymax 1 Ltd on 1 January 2023. The consolidated income statement shown on pages 7 to 8 discloses the continued and discontinued operations. As the sale took place on 1 January 2023, there are no profit and loss transactions for discontinued operations in 2023. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
Unaudited |
£ | £ |
Hire purchase interest | 439 | - |
Ivymax Ltd (Registered number: 12435904) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
Unaudited |
£ | £ |
Deferred tax | 11,138 | 6,677 |
Tax on profit/(loss) | 11,138 | 6,677 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
Unaudited |
£ | £ |
Profit/(loss) before tax | 693,231 | (45,412 | ) |
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of 23.521 % (2022 - 19 %) | 163,055 | (8,628 | ) |
Effects of: |
Expenses not deductible for tax purposes | 603 | - |
Capital allowances in excess of depreciation | - | (13,426 | ) |
Depreciation in excess of capital allowances | 2,898 | - |
Utilisation of tax losses | (22,912 | ) | - |
Gain not taxable as substantial shareholding exemption | (179,240 | ) | - |
Deferred tax movement | 11,138 | 6,677 |
Tax losses carried forward | 35,596 | 22,054 |
Total tax charge | 11,138 | 6,677 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
10. | INTANGIBLE FIXED ASSETS |
Group |
Patents |
and |
Goodwill | licences | Totals |
£ | £ | £ |
COST |
At 1 January 2023 | 642,820 | 1 | 642,821 |
Disposals | (642,813 | ) | (1 | ) | (642,814 | ) |
At 31 December 2023 | 7 | - | 7 |
AMORTISATION |
At 1 January 2023 | 84,541 | 1 | 84,542 |
Eliminated on disposal | (84,534 | ) | (1 | ) | (84,535 | ) |
At 31 December 2023 | 7 | - | 7 |
NET BOOK VALUE |
At 31 December 2023 | - | - | - |
At 31 December 2022 | 558,279 | - | 558,279 |
Ivymax Ltd (Registered number: 12435904) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | and | Motor | Computer |
property | fittings | vehicles | equipment | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 January 2023 | 9,925,516 | 738,434 | - | - | 10,663,950 |
Additions | 16,169 | 128,356 | 145,809 | 3,090 | 293,424 |
Disposals | (2,072,217 | ) | (313,434 | ) | (62,205 | ) | - | (2,447,856 | ) |
At 31 December 2023 | 7,869,468 | 553,356 | 83,604 | 3,090 | 8,509,518 |
DEPRECIATION |
At 1 January 2023 | 63,441 | 104,946 | - | - | 168,387 |
Charge for year | 125,186 | 120,190 | 36,452 | 773 | 282,601 |
Eliminated on disposal | (52,832 | ) | (96,092 | ) | (15,551 | ) | - | (164,475 | ) |
At 31 December 2023 | 135,795 | 129,044 | 20,901 | 773 | 286,513 |
NET BOOK VALUE |
At 31 December 2023 | 7,733,673 | 424,312 | 62,703 | 2,317 | 8,223,005 |
At 31 December 2022 | 9,862,075 | 633,488 | - | - | 10,495,563 |
Included in cost of land and buildings is freehold land of £1,600,000 (2022 - £1,865,000) which is not depreciated. |
12. | FIXED ASSET INVESTMENTS |
Company |
Unlisted investments |
£ |
COST |
At 1 January 2023 | 400 |
Additions | - |
Disposals | (200 | ) |
31 December 2023 | 200 |
NET BOOK VALUE |
At 31 December 2023 | 200 |
At 31 December 2022 | 400 |
The company's subsidiaries at the balance sheet date included in the consolidated accounts are the following: |
Company name | Nature of business | Class of shares held | % Held |
Ivymax 2 Ltd | Property investment | Ordinary | 100% (directly) |
Lowman Hotels (Arundel) Ltd | Hoteliers | Ordinary | 100% (directly) |
Ivymax Ltd (Registered number: 12435904) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
13. | STOCKS |
Group |
2023 | 2022 |
Unaudited |
£ | £ |
Stocks | 34,785 | 42,961 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
Unaudited | Unaudited |
£ | £ | £ | £ |
Trade debtors | 182,178 | 43,015 |
Amounts owed by group undertakings | - | - |
Other debtors | 38,097 | 228,745 |
VAT | - | - |
Deferred tax asset | - | 40,364 | - | - |
Prepayments and accrued income | 25,267 | 20,602 |
245,542 | 332,726 |
Deferred tax asset |
Group | Company |
2023 | 2022 | 2023 | 2022 |
Unaudited | Unaudited |
£ | £ | £ | £ |
Deferred tax | - | 40,364 | - | - |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
Unaudited | Unaudited |
£ | £ | £ | £ |
Hire purchase contracts (see note 17) | 14,277 | - |
Trade creditors | 56,085 | 79,219 |
Amounts owed to group undertakings | - | - |
Social security and other taxes | 63,840 | 37,355 |
VAT | 161,695 | 56,692 | - | - |
Other creditors | 312,376 | 3,439,656 |
Directors' current accounts | 7,315,012 | 8,218,842 | 7,315,012 | 8,218,842 |
Accrued expenses | 196,391 | 199,729 |
8,119,676 | 12,031,493 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
Unaudited |
£ | £ |
Hire purchase contracts (see note 17) | 51,481 | - |
Ivymax Ltd (Registered number: 12435904) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
Unaudited |
£ | £ |
Net obligations repayable: |
Within one year | 14,277 | - |
Between one and five years | 51,481 | - |
65,758 | - |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
Unaudited |
£ | £ |
Within one year | 32,500 | 32,500 |
Between one and five years | - | 32,500 |
32,500 | 65,000 |
18. | FINANCIAL INSTRUMENTS |
The carrying value of the financial assets and liabilities are summarised by category below: |
Group |
2023 | 2022 |
unaudited |
£ | £ |
Financial assets |
Measured at undiscounted amount receivable |
- Trade and other debtors and accrued income | 245,542 | 292,362 |
- Cash at bank and at hand | 373,126 | 572,385 |
618,668 | 864,747 |
Financial liabilities |
Measured at undiscounted amount payable |
- Trade and other creditors and accruals | (7,879,864 | ) | (11,937,446 | ) |
(7,879,864 | ) | (11,937,446 | ) |
The group has chosen to adopt the Sections 11 and 12 of FRS 102 in respect of financial instruments. |
19. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
Unaudited |
£ | £ |
Deferred tax | 7,653 | - |
Ivymax Ltd (Registered number: 12435904) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
19. | PROVISIONS FOR LIABILITIES - continued |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | (40,364 | ) |
Charge to Income Statement during year | 11,138 |
De-recognition upon sale | 36,879 |
Balance at 31 December 2023 | 7,653 |
Deferred tax is provided at 25% and represents the timing difference between depreciation and capital allowances of £46,128 less other timing differences £641 and tax losses £37,834. |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
21. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 January 2023 | 15,455 |
Profit for the year | 682,093 |
At 31 December 2023 | 697,548 |
22. | PENSION COMMITMENTS |
The group made defined pension contributions in respect of its employees amounting to £31,723 (2022 - £6,888) during the year. Contributions unpaid at the year end were £2,563 (2022 - £593). |
23. | RELATED PARTY DISCLOSURES |
At the year end the company owed £31,234 (2022: £3,200,000) to another company under the control of family of the directors. This is shown in creditors. The loan was repaid on 1 January 2023. |
The company sold two of its subsidiaries on 1 January 2023 to the Crest Hotels Group which is owned by P Singh and G Singh, sons of the directors of this company. |
At the year end the company owed its directors a loan account of £7,315,012 (2022: £8,218,842) which is shown in creditors. The balance is interest free and repayable on demand. Since the year end, the company has taken out a bank loan which provides for the directors loan account to be maintained at £5M for the duration of the loan. |
24. | ULTIMATE CONTROLLING PARTY |
The company is under control of the directors and shareholders Mr D Singh and Mrs N Brar. |
Ivymax Ltd (Registered number: 12435904) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 December 2023 |
25. | RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
Unaudited |
£ | £ |
Profit/(loss) before taxation | 693,231 | (45,412 | ) |
Depreciation charges | 282,602 | 200,996 |
Profit on disposal of fixed assets | (98 | ) | - |
Profit and loss on sale of business | (762,041 | ) | - |
Finance costs | 439 | - |
214,133 | 155,584 |
Decrease/(increase) in stocks | 8,176 | (26,514 | ) |
Decrease/(increase) in trade and other debtors | 10,039 | (219,074 | ) |
Increase in trade and other creditors | 403,379 | 3,587,579 |
Cash generated from operations | 635,727 | 3,497,575 |
26. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 373,126 | 617,519 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
Unaudited |
£ | £ |
Cash and cash equivalents | 617,519 | 413,481 |
27. | ANALYSIS OF CHANGES IN NET FUNDS |
Other |
non-cash |
At 1.1.23 | Cash flow | changes | At 31.12.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 617,519 | (244,393 | ) | 373,126 |
617,519 | (244,393 | ) | 373,126 |
Debt |
Finance leases | - | 80,051 | (145,809 | ) | (65,758 | ) |
- | 80,051 | (145,809 | ) | (65,758 | ) |
Total | 617,519 | (164,342 | ) | (145,809 | ) | 307,368 |