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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:

D Singh


Mrs N K Brar







REGISTERED OFFICE:

Suite B


Blackdown House


Blackbrook Park Avenue


Taunton


Somerset


TA1 2PX







REGISTERED NUMBER:

12435904 (England and Wales)



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:






D Singh - Director



13 August 2024



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.


D Singh

Mrs N K Brar


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:






D Singh - Director



13 August 2024


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.





David Black (Senior Statutory Auditor)

for and on behalf of Sumer Auditco Limited

Statutory Auditor

Chartered Accountants

Suite B, Blackdown House

Blackbrook Park Avenue

Taunton

Somerset

TA1 2PX


14 August 2024



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

682,093


-


682,093



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

(23,042

)

(29,047

)

(52,089

)


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

200


400



200


400




CURRENT ASSETS

Debtors

14

8,259,186


8,278,357



Cash at bank

9,248


230,575



8,268,434


8,508,932



CREDITORS

Amounts falling due within one year

15

7,481,399


11,420,142



NET CURRENT ASSETS/(LIABILITIES)

787,035


(2,911,210

)


TOTAL ASSETS LESS CURRENT

LIABILITIES

787,235


(2,910,810

)



CAPITAL AND RESERVES

Called up share capital

20

100


100



Retained earnings

787,135


(2,910,910

)


SHAREHOLDERS' FUNDS

787,235


(2,910,810

)



Company's profit/(loss) for the financial year

3,698,045


(2,910,693

)



The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.  


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)



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

100


(217

)

(117

)



Changes in equity

Total comprehensive income

-


(2,910,693

)

(2,910,693

)


Balance at 31 December 2022

100


(2,910,910

)

(2,910,810

)



Changes in equity

Total comprehensive income

-


3,698,045


3,698,045



Balance at 31 December 2023

100


787,135


787,235





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 private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.


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


The financial statements have been prepared under the historical cost convention.



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


Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.  


Freehold property

-

2% on straight line basis


Fixtures and fittings

-

25% on reducing balance


Motor vehicles

-

25% on reducing balance


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



93


131





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

-


-


8,255,105


8,275,105




Other debtors

38,097


228,745


59


-




VAT

-


-


4,022


3,252




Deferred tax asset

-


40,364


-


-




Prepayments and accrued income

25,267


20,602


-


-



245,542


332,726


8,259,186


8,278,357





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

-


-


158,387


100




Social security and other taxes

63,840


37,355


-


-




VAT

161,695


56,692


-


-




Other creditors

312,376


3,439,656


-


3,200,000




Directors' current accounts

7,315,012


8,218,842


7,315,012


8,218,842




Accrued expenses

196,391


199,729


8,000


1,200



8,119,676


12,031,493


7,481,399


11,420,142




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:

£   

£   



100

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