Loop Interiors International Limited
Annual Report and Financial Statements
For the year ended 31 March 2024
Company Registration No. 10966814 (England and Wales)
Loop Interiors International Limited
Company Information
Directors
Mr K Ambrose
Mrs R Bertrand
Mr J Gold
Mr A Locke
Mr P Weaver
Company number
10966814
Registered office
10 Stephen Mews
London
United Kingdom
W1T 1AG
Auditor
Moore Kingston Smith LLP
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Loop Interiors International Limited
Contents
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 30
Loop Interiors International Limited
Strategic Report
For the year ended 31 March 2024
Page 1

The directors present the strategic report for the year ended 31 March 2024.

Fair review of the business

As the headline figures show, 2024 was another year of steady progress with group turnover up by 33.7% to £46,564,023. The gross profit percentage reduced slightly due to increased market competition, and overheads inevitably increased as staff numbers rose to deliver the higher volume.

The management and administrative structure is however now in place to cope with further increases in turnover which we anticipate in the forthcoming year, so we do not expect that scenario to be repeated.

Our subsidiary companies continued to contribute to the group profit, with the Loop 360 facilities management and aftercare business growing steadily. Loop Local turnover was lower than anticipated, due to significant delays to contracted works commencing on site. Overseas turnover however was much higher, with our market reach in Europe growing steadily through our established networks.

Overall the directors are happy to report a 48.5% increase in net profit to £919,229 post tax and now the goodwill amortisation is a thing of the past, there is a substantial increase in the balance sheet net current and total assets.

Principal risks and uncertainties

General inflation of material costs has continued, and whilst some supply chain delays have eased, certain items still necessitate long lead time procurement, which we advise clients of at a very early stage.

Despite global and national political upheaval, and the reported drop in staff attendance in central London due to post covid working from home, there appears to be an unending demand for high end office accommodation in London and the south east, often with the proposition that a prestige working environment is crucial to the client attracting and retaining quality staff who they require to be office based.

The CBIL Loan taken as a precaution in the covid pandemic has continued to be repaid over the agreed 5 year term which is the only source of external finance, and the directors loans are now fully repaid, so the solid financial base and agile management alert to any change in market conditions leaves us well placed for steady generic growth.

Future development and performance

Our long established network of relationships with major landlords and real estate agencies continues to generate a healthy flow of new contract opportunities and our track record of quality and delivery has established Loop as one of the major players in the fit out market.

 

We have been, and expect to be, increasingly active in Europe with a number of contracts in the pipeline for 24/25, which together with plans for a significant push for our global roll out of smart building IT based facilities maintenance service offering, should build further growth and resilience in future years.

 

The contract delays that impacted Loop Local in the March 2024 accounts deferred income into the current year, and that, coupled with significant new contracts awarded, mean they are currently forecast to deliver a significantly higher turnover in March 25 accounts. Loop Interiors International is also forecasting steady growth on March 24 figures, so overall we expect another successful year.

Loop Interiors International Limited
Strategic Report (Continued)
For the year ended 31 March 2024
Page 2
Key performance indicators
The key performance indicators for the group are:

     Year Ended Year Ended

31 March 2024     31 March 2023

 

Turnover £47,672,526 £34,805,091    

Gross Margin     20.7%          23.3%

EBITDA         £1,288,348     £2,174,645    

 

On behalf of the board

Mr K Ambrose
Director
23 August 2024
Loop Interiors International Limited
Directors' Report
For the year ended 31 March 2024
Page 3

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company and group continued to be that of interior design and build services for both landlord and tenant clients.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr K Ambrose
Mrs R Bertrand
Mr J Gold
Mr A Locke
Mr P Weaver
Results and dividends

Ordinary dividends were paid by the group amounting to £360,000. The directors do not recommend payment of a further dividend.

Auditor

The auditor, Moore Kingston Smith LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Loop Interiors International Limited
Directors' Report (Continued)
For the year ended 31 March 2024
Page 4
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr K Ambrose
Director
23 August 2024
2024-08-27
Loop Interiors International Limited
Independent Auditor's Report
To the Members of Loop Interiors International Limited
Page 5
Opinion

We have audited the financial statements of Loop Interiors International Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Group Statement of Comprehensive Income, the Group Balance Sheet, the Company Balance Sheet, the Group Statement of Changes in Equity, the Company Statement of Changes in Equity, the Group Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 group and parent 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 group's and 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 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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Loop Interiors International Limited
Independent Auditor's Report (Continued)
To the Members of Loop Interiors International Limited
Page 6

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 their 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:

 

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 group's and 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 parent company or to cease operations, or have no realistic alternative but to do so.

Loop Interiors International Limited
Independent Auditor's Report (Continued)
To the Members of Loop Interiors International Limited
Page 7
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.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

 

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.

 

Loop Interiors International Limited
Independent Auditor's Report (Continued)
To the Members of Loop Interiors International Limited
Page 8

Explanation as to what extent the audit was considered capable of detecting irregularities, including

fraud

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.

 

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

 

Our approach was as follows:

Ÿ

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. 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.

Loop Interiors International Limited
Independent Auditor's Report (Continued)
To the Members of Loop Interiors International Limited
Page 9

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 for no purpose other than to draw to the attention of the company’s members those matters we are required to include in an auditor's report addressed to them. To the fullest extent permitted by law, we do not accept or assume responsibility to any party 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.

Karen Wardell (Senior Statutory Auditor)
for and on behalf of Moore Kingston Smith LLP
23 August 2024
Chartered Accountants
Statutory Auditor
Orbital House
20 Eastern Road
Romford
Essex
RM1 3PJ
Loop Interiors International Limited
Group Statement of Comprehensive Income
For the year ended 31 March 2024
Page 10
2024
2023
Notes
£
£
Turnover
3
47,672,526
34,805,091
Cost of sales
(37,825,376)
(26,685,763)
Gross profit
9,847,150
8,119,328
Administrative expenses
(8,842,571)
(7,238,029)
Other operating income
230,249
180,000
Operating profit
4
1,234,828
1,061,299
Interest receivable and similar income
17,182
2,454
Interest payable and similar expenses
8
(44,669)
(38,296)
Profit before taxation
1,207,341
1,025,457
Tax on profit
9
(393,112)
(406,578)
Profit for the financial year
814,229
618,879
Profit for the financial year is attributable to:
- Owners of the parent company
997,711
230,699
- Non-controlling interests
(183,482)
388,180
814,229
618,879
Total comprehensive income for the year is attributable to:
- Owners of the parent company
997,711
230,699
- Non-controlling interests
(183,482)
388,180
814,229
618,879
Loop Interiors International Limited
Group Balance Sheet
As at 31 March 2024
31 March 2024
Page 11
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
110,000
150,000
Tangible assets
11
40,558
54,078
150,558
204,078
Current assets
Debtors
14
8,874,940
10,683,060
Cash at bank and in hand
3,588,854
5,644,605
12,463,794
16,327,665
Creditors: amounts falling due within one year
15
(11,692,427)
(15,898,527)
Net current assets
771,367
429,138
Total assets less current liabilities
921,925
633,216
Creditors: amounts falling due after more than one year
16
(300,151)
(450,000)
Provisions for liabilities
Deferred tax liability
17
(9,640)
(12,911)
(9,640)
(12,911)
Net assets
612,134
170,305
Capital and reserves
Called up share capital
19
5
5
Profit and loss reserves
407,431
(217,880)
Equity attributable to owners of the parent company
407,436
(217,875)
Non-controlling interests
204,698
388,180
612,134
170,305
The financial statements were approved by the board of directors and authorised for issue on 23 August 2024 and are signed on its behalf by:
23 August 2024
Mr K  Ambrose
Director
Loop Interiors International Limited
Company Balance Sheet
As at 31 March 2024
31 March 2024
Page 12
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
110,000
150,000
Tangible assets
11
40,558
54,078
Investments
12
140
140
150,698
204,218
Current assets
Debtors
14
6,600,444
4,647,436
Cash at bank and in hand
2,114,883
2,753,584
8,715,327
7,401,020
Creditors: amounts falling due within one year
15
(8,475,369)
(7,930,217)
Net current assets/(liabilities)
239,958
(529,197)
Total assets less current liabilities
390,656
(324,979)
Creditors: amounts falling due after more than one year
16
(300,151)
(450,000)
Provisions for liabilities
Deferred tax liability
17
(9,640)
(12,911)
(9,640)
(12,911)
Net assets/(liabilities)
80,865
(787,890)
Capital and reserves
Called up share capital
19
5
5
Profit and loss reserves
80,860
(787,895)
Total equity
80,865
(787,890)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £868,755 (2023 - £449,316 loss).

The financial statements were approved by the board of directors and authorised for issue on 23 August 2024 and are signed on its behalf by:
23 August 2024
Mr K  Ambrose
Director
Company Registration No. 10966814 (England and Wales)
Loop Interiors International Limited
Group Statement of Changes in Equity
For the year ended 31 March 2024
Page 13
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 April 2022
5
(338,579)
(338,574)
-
(338,574)
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
230,699
230,699
388,180
618,879
Dividends
-
(110,000)
(110,000)
-
(110,000)
Balance at 31 March 2023
5
(217,880)
(217,875)
388,180
170,305
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
997,711
997,711
(183,482)
814,229
Dividends
-
(372,400)
(372,400)
-
(372,400)
Balance at 31 March 2024
5
407,431
407,436
204,698
612,134
Loop Interiors International Limited
Company Statement of Changes in Equity
For the year ended 31 March 2024
Page 14
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
5
(338,579)
(338,574)
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
(449,316)
(449,316)
Balance at 31 March 2023
5
(787,895)
(787,890)
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
868,755
868,755
Balance at 31 March 2024
5
80,860
80,865
Loop Interiors International Limited
Group Statement of Cash Flows
For the year ended 31 March 2024
Page 15
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
24
11,371
3,817,500
Interest paid
(44,669)
(38,296)
Income taxes paid
(399,535)
(369,812)
Net cash (outflow)/inflow from operating activities
(432,833)
3,409,392
Investing activities
Purchase of intangible assets
-
(160,145)
Purchase of tangible fixed assets
-
(30,599)
Interest received
17,182
2,454
Net cash generated from/(used in) investing activities
17,182
(188,290)
Financing activities
Repayment of other loans
(1,130,100)
(1,040,000)
Repayment of bank loans
(150,000)
(150,000)
Dividends paid
(360,000)
(110,000)
Net cash used in financing activities
(1,640,100)
(1,300,000)
Net (decrease)/increase in cash and cash equivalents
(2,055,751)
1,921,102
Cash and cash equivalents at beginning of year
5,644,605
3,723,503
Cash and cash equivalents at end of year
3,588,854
5,644,605
Loop Interiors International Limited
Notes to the Financial Statements
For the year ended 31 March 2024
Page 16
1
Accounting policies
Company information

Loop Interiors International Limited (“the company”) is a private limited company domiciled and incorporated in England & Wales. The registered office and trading address is 10 Stephen Mews, London, United Kingdom, W1T 1AG.

 

The group consists of Loop Interiors International Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated financial statements incorporate those of Loop Interiors International Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). All financial statements are made up to 31 March 2024.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group and company has adequate resources to continue in operational existence for the foreseeable future and at least 12 months from the date of the approval of these financial statements. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover recognition

Turnover is recognised to the extent that it is probable that economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

 

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:

 

Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 17
1.5
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
25% straight line
1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

All of the company's financial assets and liabilities are basic and measured at amortised cost.

1.10
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 18
1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.15

Long term contracts

Contracts in progress are assessed on a contract basis and are reflected in the profit or loss by recording turnover and related costs as contract activity progresses. Where the outcome of the uncompleted contract can be assessed with reasonable certainty the attributable profit is recognised in the profit or loss as an appropriate proportion of the estimated total profit of the contract. Cash received on account of contracts is deducted from amounts recoverable on contracts. Such amounts which have been received and exceed amounts recoverable are included in creditors. Where amounts recoverable exceed amounts received these have been included in debtors. A provision is made for anticipated losses on contracts. Movement in the provision for losses on contracts is included in cost of sales.

Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 19
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Useful life of intangible fixed assets

The annual amortisation charge for intangible assets is sensitive to changes in the estimated lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. Goodwill impairment reviews are also performed annually. These reviews require an estimation of the value in use of the cash generating units to which goodwill has been allocated. The value in use calculation requires the entity to estimate the future cash flows expected to arise for the cash generating unit and a suitable discount rate to calculate present value. See note 10 for the carrying amount of the intangible assets and note 1.5 for the useful economic life for the asset.

Useful life of tangible fixed assets

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the property, plant and equipment and note 1.6 for the useful economic lives for each class of asset.

Work in progress and costs to complete

A key estimate in calculating the work in progress figure is the costs to complete a long term contract. This is calculated based upon a detailed budgeting process which is reviewed and updated where necessary as the contract progresses. The directors' experience and judgement is required when making this estimation.

Turnover recognition

On the whole, turnover is recognised as it is invoiced and where a long term contract is in the earlier stages and there is an agreement in place for the project to continue, the members will calculate how much of the turnover already billed is deemed to be a payment on account for future works.

Provisions

Provisions have been made for work in progress recognised as accrued income. These provisions are estimates and the actual costs and timing of future cash flows are dependent on future events. The difference between expectations and the actual future liability will be accounted for in the period when such determination is made.

Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 20
3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Interior design and build services
46,028,268
34,544,116
Facility management services
1,644,258
260,975
47,672,526
34,805,091
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
46,045,671
34,189,741
Europe
1,626,855
615,350
47,672,526
34,805,091
2024
2023
£
£
Other revenue
Interest income
17,182
2,454
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
28,747
(2,393)
Depreciation of owned tangible fixed assets
13,520
10,373
Amortisation of intangible assets
40,000
1,102,645
Operating lease charges
185,350
179,217

 

5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
25,500
24,500
Audit of the financial statements of the company's subsidiaries
20,100
19,000
45,600
43,500
Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
5
Auditor's remuneration
(Continued)
Page 21
For other services
Taxation compliance services
5,550
4,750
All other non-audit services
6,550
19,710
12,100
24,460
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
12
8
8
6
Operations
38
30
30
26
Design
14
11
11
9
Administration
6
4
4
2
Total
70
53
53
43

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
5,593,427
3,760,584
4,141,028
3,020,099
Social security costs
593,917
421,781
467,897
356,666
Pension costs
95,194
67,701
77,498
58,145
6,282,538
4,250,066
4,686,423
3,434,910
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
918,434
543,922
Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
7
Directors' remuneration
(Continued)
Page 22
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
200,000
175,000

During the year, retirement benefits were accruing to 7 (2023: 7) directors of the group in respect of defined contribution pension schemes.

8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Other interest
44,669
38,296
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
396,383
399,535
Deferred tax
Origination and reversal of timing differences
(3,271)
7,043
Total tax charge
393,112
406,578
Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
9
Taxation
(Continued)
Page 23

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,207,341
1,025,457
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
301,835
194,837
Tax effect of expenses that are not deductible in determining taxable profit
87,318
43,676
Unutilised tax losses carried forward
-
0
4,591
Utilisation of brought forward tax losses
(6,041)
-
0
Permanent capital allowances in excess of depreciation
-
0
(46,029)
Amortisation on assets not qualifying for tax allowances
10,000
209,503
Taxation charge
393,112
406,578
10
Intangible fixed assets
Group
Goodwill
Software
Total
£
£
£
Cost
At 1 April 2023 and 31 March 2024
6,900,000
160,145
7,060,145
Amortisation and impairment
At 1 April 2023
6,900,000
10,145
6,910,145
Amortisation charged for the year
-
0
40,000
40,000
At 31 March 2024
6,900,000
50,145
6,950,145
Carrying amount
At 31 March 2024
-
0
110,000
110,000
At 31 March 2023
-
0
150,000
150,000
Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
10
Intangible fixed assets
(Continued)
Page 24
Company
Goodwill
Software
Total
£
£
£
Cost
At 1 April 2023 and 31 March 2024
6,900,000
160,145
7,060,145
Amortisation and impairment
At 1 April 2023
6,900,000
10,145
6,910,145
Amortisation charged for the year
-
0
40,000
40,000
At 31 March 2024
6,900,000
50,145
6,950,145
Carrying amount
At 31 March 2024
-
0
110,000
110,000
At 31 March 2023
-
0
150,000
150,000
11
Tangible fixed assets
Group
Fixtures and fittings
£
Cost
At 1 April 2023 and 31 March 2024
109,533
Depreciation and impairment
At 1 April 2023
55,455
Depreciation charged in the year
13,520
At 31 March 2024
68,975
Carrying amount
At 31 March 2024
40,558
At 31 March 2023
54,078
Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
11
Tangible fixed assets
(Continued)
Page 25
Company
Fixtures and fittings
£
Cost
At 1 April 2023 and 31 March 2024
109,533
Depreciation and impairment
At 1 April 2023
55,455
Depreciation charged in the year
13,520
At 31 March 2024
68,975
Carrying amount
At 31 March 2024
40,558
At 31 March 2023
54,078
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
140
140
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost or valuation
At 1 April 2023 and 31 March 2024
140
Carrying amount
At 31 March 2024
140
At 31 March 2023
140
Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 26
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Loop Local Limited
1
Interior design and build
Ordinary
60.00
-
Loop 360 Limited
1
Facility management
Ordinary
80.00
-

Registered office addresses (all UK unless otherwise indicated):

1. 10 Stephen Mews, London, England, W1T 1AG

The above subsidiary company, Loop 360 Limited has taken the exemption in section 479A of the Companies Act 2006 (the Act) from the requirements in the Act for their individual accounts to be audited. The guarantee given by the Company under section 479A of the Act is disclosed in Note 21.

14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
4,183,688
7,825,441
2,860,253
1,862,812
Amounts owed by group undertakings
-
-
125,289
334,145
Other debtors
17,000
18,452
-
0
18,452
Prepayments and accrued income
4,674,252
2,839,167
3,614,902
2,432,027
8,874,940
10,683,060
6,600,444
4,647,436
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
150,000
150,000
150,000
150,000
Trade creditors
4,971,546
7,434,108
4,332,872
4,241,648
Corporation tax payable
396,383
399,535
188,421
93,652
Other taxation and social security
1,137,410
2,071,983
712,149
516,581
Other creditors
66,302
1,164,000
49,600
1,164,000
Accruals and deferred income
4,970,786
4,678,901
3,042,327
1,764,336
11,692,427
15,898,527
8,475,369
7,930,217
Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 27
16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans and overdrafts
300,151
450,000
300,151
450,000

Barclays Security Trustee Limited has a fixed and floating charge covering the assets of the company in relation to the CBILs loan.

17
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
9,640
12,911
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
9,640
12,911
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
12,911
12,911
Credit to profit or loss
(3,271)
(3,271)
Liability at 31 March 2024
9,640
9,640
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
95,194
67,701

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 28
19
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
5
5
5
5
20
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
125,752
184,326
105,417
184,326
Between two and five years
923,389
40,670
920,000
-
In over five years
9,583
-
9,583
-
1,058,724
224,996
1,035,000
163,991
21
Financial commitments, guarantees and contingent liabilities

In order for the subsidiary company, Loop 360 Limited, referred to in Note 13, to take the audit exemption set out in section 479A of the Companies Act 2006, Loop Interiors International Limited has guaranteed all outstanding liabilities of the subsidiary company, Loop 360 Limited, at 31 March 2024 until those liabilities are satisfied in full.

Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 29
22
Related party transactions

Group Transactions:

At the year end, included in other creditors there is a balance of £33,900 (2023: £1,164,000) due to the shareholders, who are also the directors of the company.

 

At the year end, included in trade creditors of the group is a balance of £333,123 (2023: £71,654) due to Cirque Furniture Limited, a company under common control and ownership.

 

During the year the group invoiced management charges of £225,000 (2023: £180,000) and made purchases of £2,261,546 (2023: £499,298) on normal commercial terms from Cirque Furniture Limited.

 

Parent Company Transactions:

At the year end, included within trade debtors of the parent company is £16,422 (2023: £258,456) owed by Loop Local Limited, a subsidiary within the group.

 

At the year end, included within other creditors of the parent company is £358,950 (2023: £nil) owed to Loop Local Limited, a subsidiary within the group.

 

During the year, the parent company invoiced management charges of £156,000 (2023: £345,000) and made purchases of £1,522,350 (2023: £508,237) on normal commercial terms from Loop Local Limited.

 

At the year end, included within other debtors of the parent company is £125,289 (2023: £75,689) owed by Loop 360 Limited, a subsidiary within the group.

 

At the year end, included within trade creditors of the parent company is £13,913 (2023: £nil) owed to Loop 360 Limited, a subsidiary within the group.

 

During the year, the parent made purchases of £233,972 (2023: £9,343) on normal commercial terms from Loop 360 Limited.

 

Key management personnel is considered to be the directors only and their remuneration is disclosed in note 7.

23
Controlling party

In the opinion of the directors there is no ultimate controlling party.

Loop Interiors International Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 30
24
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
814,229
618,879
Adjustments for:
Taxation charged
393,112
406,578
Finance costs
44,669
38,296
Investment income
(17,182)
(2,454)
Amortisation and impairment of intangible assets
40,000
1,102,645
Depreciation and impairment of tangible fixed assets
13,520
10,373
Movements in working capital:
Decrease/(increase) in debtors
1,808,120
(5,533,899)
(Decrease)/increase in creditors
(3,085,097)
7,177,082
Cash generated from operations
11,371
3,817,500
25
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
5,644,605
(2,055,751)
3,588,854
Borrowings excluding overdrafts
(600,000)
149,849
(450,151)
5,044,605
(1,905,902)
3,138,703
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