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COMPANY REGISTRATION NUMBER: 02006023
Intermarex Corporation Plc
Financial Statements
31 March 2024
Intermarex Corporation Plc
Financial Statements
Year ended 31 March 2024
Contents
Page
Strategic report
1
Directors' report
6
Independent auditor's report to the members
8
Statement of comprehensive income
12
Statement of financial position
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16
Intermarex Corporation Plc
Strategic Report
Year ended 31 March 2024
Introduction
The principal activities of the company in the year under review continued to be the sale of medical equipment and the provision of technical support services relating thereto.
Business review
As can be seen from the financial key performance indicators below the company has continued to grow and is now fully able to meet with its customers face-to-face which is a key factor in rendering services and exploring new business opportunities and is reflected in the continuing improvement in turnover, gross and net profit The directors are continually evaluating business opportunities and are confident in respect of the company's future albeit that they recognise that the next six to twelve months will continue to be difficult. As previously the company continues to actively seek new customers and new income streams based around its area of operation and the directors are confident that the company can continue to improve its place in the market.
Principal risks and uncertainties
Management perceive the principal risks and uncertainties of the company to be the exposure of the company to credit risk, liquidity risk & market risk. Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Management of credit control is a priority of the company and credit control is an ongoing focus especially in respect of any restrictions to currency movements in the geographical locations of the customer base. Liquidity risk Liquidity risk is the risk that the company will encounter difficulty in meeting its obligations associated with its financial liabilities. The company regularly reviews its working capital requirements and responds quickly and appropriately where any potential shortfall is identified. Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: currency risk, interest rate risk and other price risk. Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market Currency risk The Company is exposed to currency risk as the majority of its transactions are in Euros. Risk is managed by holding other bank accounts in sterling and foreign currencies to provide alternatives to crystallising any short-term exchange rate losses. Interest rate risk Interest rate risk exists where interest rates on liabilities are either set according to different basis or reset at-different times. The company's loan is set at a fixed rate so there is deemed to be little in the way of risk to the company in this respect.
Financial key performance indicators
The directors consider that the key financial performance indicators are the turnover, gross margin and pre-tax results. Turnover has increased again by 5.3% to £920,565 and is highlighted by the growth of contracted services (excluding medical equipment only) by 2.4% and commissions receivable before provisions by 98%. The directors are pleased to note that the company has maintained last year's improvement in the gross profit percentage at 96% and as a consequence gross profit recovered in both monetary, £52,865 and percentage terms, 6.4%. The pre-tax result shows a profit of £216,468 which is a further improvement from last year. The result for the year was significantly boosted by the recovery of a aged debt previously considered doubtful but which was negotiated to a successful outcome during the year. This credit to profit was £127,392 but even with this taken into account, the adjusted profit still shows a significant improvement on last year's figure of £63,225. Non-financial key performance indicators are considered to be Customer satisfaction On-time delivery Customer retention New customer development Product and service quality Company and brand reputation New product and process development
Section 172 statement
The directors of the company, as those of all UK companies, must act in accordance with a set of general duties. These duties are detailed in section 172 of the UK Companies Act 2006 which is summarised below: A director of a company must act in the way he/she considers, in good faith. would be most likely to promote the success of the company for the benefit its members as a whole, and in doing so have regard (amongst other matters) to: 1. The likely consequences of any decision in the long term 2. The interests of the company's employees 3. The need to foster the company's business relationships with suppliers, customers and others 4. The impact of the company's operations on the community and the environment 5. The desirability of the company maintaining a reputation for high standards of business conduct, and 6. The need to act fairly as between members of the company. Each director of the company is aware of their obligations on the above and can seek professional advice from an independent advisor as necessary. As a company with a highly skilled work-force the company's directors do invariably delegate day to day decision making to employees of the company. We make strategic decisions based on both long and short term objectives, having regard to our customers' requirements. At all times the board consider how the decisions they make support the company's visions and values and how they promote the success of the company. In the directors' opinion the employees, suppliers, the customer base and bankers represent the key stakeholders and the means of engagement have been detailed below: Customers - Our employees are constantly interacting with our customers to fulfill our customers' requirements. We focus on customer service and this enables us to act as an extension of our customers' operations. All our staff uphold our key values in our dealing with customers. Employees - We rely on our employees to ensure the best relationships with our suppliers and customers. This in turn means that we can offer the best possible services and are renowned for our customer service which requires us to be able to adapt to our customers' requirements. This is only possible through the hard work of our employees and in this regard we provide a support network that they can rely upon, a remuneration package that rewards high performing individuals. Suppliers - We appreciate the key role our suppliers play in the delivery of our goods on time, as such we aim to pay all suppliers on time and to ensure we have an open and honest dialogue with our suppliers on our ongoing requirements. Bankers - We appreciate the key role our bankers play in our commercial operations and operate at all times within the limits that they have set providing them with any information they require on a timely basis. The company is committed to acting ethically and with integrity in all of our business relations. We work closely with our business partners, suppliers and supply chains to ensure these principals are maintained throughout our operations. The directors recognise the requirement to keep members informed with regards to the company and all necessary documentation is provided as required. The company has a policy of considering the needs of members in its decision making process and aims to act fairly with regards to their needs.
This report was approved by the board of directors on 16 August 2024 and signed on behalf of the board by:
I Habba
Director
Registered office:
41 South Audley Street
London
W1K 2PS
Intermarex Corporation Plc
Directors' Report
Year ended 31 March 2024
The directors present their report and the financial statements of the company for the year ended 31 March 2024 .
Directors
The directors who served the company during the year were as follows:
I Habba
C Habba
Dividends
The directors do not recommend the payment of a dividend.
Disclosure of information in the strategic report
The company has chosen to set out in the strategic report information normally required to be included within the directors report in respect of business review, future developments and financial instruments.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report 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 profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 16 August 2024 and signed on behalf of the board by:
I Habba
Director
Registered office:
41 South Audley Street
London
W1K 2PS
Intermarex Corporation Plc
Independent Auditor's Report to the Members of Intermarex Corporation Plc
Year ended 31 March 2024
Opinion
We have audited the financial statements of Intermarex Corporation Plc (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our: general commercial and sector experience; through verbal and written communications with those charged with governance and other management and via inspection of the company's regulatory and legal correspondence. We discussed with those charged with governance and other management the policies and procedures regarding compliance with laws and regulations. We communicated identified laws and regulations to our team (and remained alert to any indicators of non-compliance throughout the audit, we also specifically considered where and how fraud may occur within the company. The potential effect of these laws and regulations on the financial statements varies considerably. Firstly, the company is subject to laws and regulations that directly affect the financial statements, including: the company's constitution, relevant financial reporting standards; company law; tax legislation and distributable profits legislation and we assess the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items. Secondly the company is subject to many other laws and regulations where the consequences of non-compliance could have a material effect on the amounts or disclosures in the financial statements, for instance through the imposition of fines and penalties, or through losses arising from litigations. We identified the following areas as those most likely to have such an affect: employment legislation; health and safety legislation; trade legislation; data protection legislation; anti-bribery and corruption legislation. International Standards on Auditing (UK) limit the required procedures to identify non-compliance with these laws and regulations to the procedures, and no procedures over and above those already noted are required. These limited procedures did not identify any actual or suspected non-compliance which laws and regulations that could have a material impact on the financial statements. In relation to fraud, we performed the following specific procedures in addition to those already noted: - Challenging assumptions made by management in its significant accounting estimates in particular: depreciation and deferred income; - Identifying and testing journal entries, in particular any entries posted with unusual nominal ledger account combinations, journal entries crediting cash or any revenue account. - Performing analytical procedures to identify unexpected movements in account balances which may be indicative of fraud; As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Spencer Watson FCA
(Senior Statutory Auditor)
For and on behalf of
Buckley Watson Limited
Chartered Accountants & Statutory Auditor
57a Broadway
Leigh-on-Sea
Essex
SS9 1PE
16 August 2024
Intermarex Corporation Plc
Statement of Comprehensive Income
Year ended 31 March 2024
2024
2023
Note
£
£
Turnover
4
920,565
874,026
Cost of sales
37,107
43,433
---------
---------
Gross profit
883,458
830,593
Administrative expenses
663,515
765,510
---------
---------
Operating profit
5
219,943
65,083
Interest payable and similar expenses
9
3,475
1,858
---------
---------
Profit before taxation
216,468
63,225
Tax on profit
10
53,469
12,442
---------
--------
Profit for the financial year and total comprehensive income
162,999
50,783
---------
--------
All the activities of the company are from continuing operations.
Intermarex Corporation Plc
Statement of Financial Position
31 March 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
11
76,916
85,966
Current assets
Debtors
12
779,258
667,617
Cash at bank and in hand
19,143
23,592
---------
---------
798,401
691,209
Creditors: amounts falling due within one year
14
196,204
249,227
---------
---------
Net current assets
602,197
441,982
---------
---------
Total assets less current liabilities
679,113
527,948
Creditors: amounts falling due after more than one year
15
15,661
25,780
Provisions
Taxation including deferred tax
16
( 3,804)
( 2,089)
---------
---------
Net assets
667,256
504,257
---------
---------
Capital and reserves
Called up share capital
18
50,000
50,000
Revaluation reserve
19
31,541
35,046
Profit and loss account
19
585,715
419,211
---------
---------
Shareholders funds
667,256
504,257
---------
---------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 16 August 2024 , and are signed on behalf of the board by:
I Habba
Director
Company registration number: 02006023
Intermarex Corporation Plc
Statement of Changes in Equity
Year ended 31 March 2024
Called up share capital
Revaluation reserve
Profit and loss account
Total
£
£
£
£
At 1 April 2022
50,000
38,940
364,534
453,474
Profit for the year
50,783
50,783
Other comprehensive income for the year:
Transfer of excess depreciation
( 3,894)
3,894
--------
--------
---------
---------
Total comprehensive income for the year
( 3,894)
54,677
50,783
At 31 March 2023
50,000
35,046
419,211
504,257
Profit for the year
162,999
162,999
Other comprehensive income for the year:
Transfer of excess depreciation
( 3,505)
3,505
--------
--------
---------
---------
Total comprehensive income for the year
( 3,505)
166,504
162,999
--------
--------
---------
---------
At 31 March 2024
50,000
31,541
585,715
667,256
--------
--------
---------
---------
Intermarex Corporation Plc
Statement of Cash Flows
Year ended 31 March 2024
2024
2023
Note
£
£
Cash flows from operating activities
Profit for the financial year
162,999
50,783
Adjustments for:
Depreciation of tangible assets
12,474
14,081
Interest payable and similar expenses
3,475
1,858
Tax on profit
53,469
12,442
Accrued expenses
32,142
276
Changes in:
Trade and other debtors
( 111,641)
( 13,204)
Trade and other creditors
( 160,219)
( 33,313)
---------
--------
Cash generated from operations
( 7,301)
32,923
Interest paid
( 3,475)
( 1,858)
Tax paid
( 3,015)
( 10,382)
--------
--------
Net cash (used in)/from operating activities
( 13,791)
20,683
--------
--------
Cash flows from investing activities
Purchase of tangible assets
( 3,424)
( 2,603)
--------
--------
Net cash used in investing activities
( 3,424)
( 2,603)
--------
--------
Cash flows from financing activities
Proceeds from borrowings
( 8,189)
( 20,082)
--------
--------
Net cash used in financing activities
( 8,189)
( 20,082)
--------
--------
Net decrease in cash and cash equivalents
( 25,404)
( 2,002)
Cash and cash equivalents at beginning of year
1,090
3,092
--------
-------
Cash and cash equivalents at end of year
13
( 24,314)
1,090
--------
-------
Intermarex Corporation Plc
Notes to the Financial Statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 41 South Audley Street, London, W1K 2PS.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following are the company's key sources of estimation uncertainty (a) Recoverability of trade debtors Trade and other debtors are recognised to the extent that they are judged recoverable. Reviews are performed to estimate the level of reserves required for potentially irrecoverable debt. Provisions are made specifically against invoices where recoverability is uncertain. Management makes allowance for doubtful debts based on an assessment of debtors. Allowances are applied to debtors where events or changes in circumstances indicate that the carrying amounts may not be recoverable. Management specifically analyses historical bad debts, customer creditworthiness, current economic trends and changes in customer payment terms when making a judgement to evaluate the adequacy of the provision for doubtful debts. Where the expectation is different from the original estimate, such difference will impact the carrying value of debtors and the charge in the profit and loss account. (b) Stage of contract completion. Management is required to makes estimates in respect of the calculation of the state of completion of all service contracts at the year-end date. Each contract is considered on an individual basis and a proportion of the income is recognised in the year based on the level of work completed at the year-end in relation to the contract as a whole. Management analyses contracts from one year to the next and where expectation is different to the original estimate, such difference will impact the carrying value of debtors and the charge in the profit and loss account. (c) Depreciation and residual values Management reviews the asset lives and associated residual values of all fixed asset classes and concludes that asset lives and residual values are appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing lives, factors such as future market conditions, the nature of the asset and asset maintenance are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and disposal values.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome of a transaction involving the rendering of services cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable. The stage of completion is calculated on the basis of the completion of a proportion of the service contract.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Leasehold Property
-
in accordance wih the lease of the property
Fixtures & fittings
-
33% straight line
Motor Vehicles
-
10 % reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
3,494
21,521
Rendering of services
841,294
831,482
Commissions
75,777
21,023
---------
---------
920,565
874,026
---------
---------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the europe that substantially differ from each other is given below:
2024
2023
£
£
Middle East, Africa and Central Asia
920,565
874,026
---------
---------
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
12,474
14,081
Impairment of trade debtors
(149,615)
3,083
Foreign exchange differences
26,217
( 11,102)
---------
--------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
7,025
6,600
-------
-------
Fees payable to the company's auditor and its associates for other services:
Audit-related assurance services
9,985
9,540
-------
-------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Administrative staff
1
1
Sales and marketing staff
5
5
----
----
6
6
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
485,214
482,214
Social security costs
55,683
58,446
---------
---------
540,897
540,660
---------
---------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
185,714
185,714
---------
---------
9. Interest payable and similar expenses
2024
2023
£
£
Interest on banks loans and overdrafts
3,416
1,834
Other interest payable and similar charges
59
24
-------
-------
3,475
1,858
-------
-------
10. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
55,184
13,397
Deferred tax:
Origination and reversal of timing differences
( 784)
( 955)
Impact of change in tax rate
( 931)
-------
----
Total deferred tax
( 1,715)
( 955)
--------
--------
Tax on profit
53,469
12,442
--------
--------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
216,468
63,225
---------
--------
Profit on ordinary activities by rate of tax
54,117
12,013
Effect of expenses not deductible for tax purposes
697
548
Effect of different UK tax rates on some earnings
(414)
Deferred tax adjustment in respect of change in tax rate
( 931)
130% superallowance adjustment
( 119)
---------
--------
Tax on profit
53,469
12,442
---------
--------
11. Tangible assets
Land and buildings
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
64,570
182,830
100,000
347,400
Additions
3,424
3,424
--------
---------
---------
---------
At 31 March 2024
64,570
186,254
100,000
350,824
--------
---------
---------
---------
Depreciation
At 1 April 2023
64,570
177,864
19,000
261,434
Charge for the year
4,374
8,100
12,474
--------
---------
---------
---------
At 31 March 2024
64,570
182,238
27,100
273,908
--------
---------
---------
---------
Carrying amount
At 31 March 2024
4,016
72,900
76,916
--------
---------
---------
---------
At 31 March 2023
4,966
81,000
85,966
--------
---------
---------
---------
On 1 April 2022 the directors revalued the motor vehicle to its anticipated trade value of £100,000 by reference to market prices and industry publications. The net book value of motor vehicles under the historical cost basis is £41,359 (2023: £45,955).
12. Debtors
2024
2023
£
£
Trade debtors
743,917
610,218
Prepayments and accrued income
12,489
8,260
Other debtors
22,852
49,139
---------
---------
779,258
667,617
---------
---------
13. Cash and cash equivalents
Cash and cash equivalents comprise the following:
2024
2023
£
£
Cash at bank and in hand
19,143
23,592
Bank overdrafts
( 43,457)
( 22,502)
--------
--------
( 24,314)
1,090
--------
--------
14. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
53,576
32,372
Trade creditors
438
171,396
Accruals and deferred income
41,659
9,517
Corporation tax
55,184
3,015
Social security and other taxes
18,641
18,684
Director loan accounts
10,668
8,987
Other creditors
16,038
5,256
---------
---------
196,204
249,227
---------
---------
15. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
15,661
25,780
--------
--------
16. Provisions
Deferred tax (note 17)
£
At 1 April 2023
( 2,089)
Additions
( 1,715)
-------
At 31 March 2024
( 3,804)
-------
17. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 16)
( 3,804)
( 2,089)
-------
-------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Revaluation of tangible assets
7,885
6,659
Accelerated depreciation
( 11,689)
( 8,748)
--------
-------
(3,804)
(2,089)
--------
-------
18. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
50,000
50,000
50,000
50,000
--------
--------
--------
--------
19. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses. Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.
20. Analysis of changes in net debt
At 1 Apr 2023
Cash flows
At 31 Mar 2024
£
£
£
Cash at bank and in hand
23,592
(4,449)
19,143
Bank overdrafts
(22,502)
(20,955)
(43,457)
Debt due within one year
(18,857)
(1,930)
(20,787)
Debt due after one year
(25,780)
10,119
(15,661)
--------
--------
--------
( 43,547)
( 17,215)
( 60,762)
--------
--------
--------
21. Related party transactions
The company is under the control of I Habba in the current and previous year by virtue of his role as managing director and majority shareholder.