Company registration number 03989997 (England and Wales)
IDPP HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
IDPP HOLDINGS LIMITED
COMPANY INFORMATION
Directors
J W Holmes
J Rimmer
Secretary
J Rimmer
Company number
03989997
Registered office
65 Petty France
London
SW1H 9EU
Auditor
Clarkson Hyde LLP
3rd Floor
Chancery House
St Nicholas Way
Sutton
Surrey
SM1 1JB
Business address
65 Petty France
London
SW1H 9EU
IDPP HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Profit and loss account
7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Notes to the financial statements
14 - 25
IDPP HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

During the financial year 2023, the Company invested in both our Sales and Marketing teams and opened two new Sales offices in Horsham and Manchester. Whilst these costs have increased our Administrative expenses, our improved average margin percentage has resulted in a higher Operating Profit over 2022.

 

The Directors are confident that the increased focus on Sales will result in higher Revenue and Gross profit in 2024.

Principal risks and uncertainties

The Group operates in a competitive market and considers one of the principal risks to be loss of income from key customers. The Group manages this risk by maintaining excellent customer service and relationships with their key customers.

 

The Group's credit risk is primarily attributable to its trade debtors, which is its principal financial asset. The amounts presented in the balance sheet are net of allowances for doubtful debts and the Group manages this risk through its credit control procedures and review processes.

Key performance indicators

The Group monitors performance throughout the year and they key performance indicators include turnover and operating profit.

 

As mentioned above, turnover increased during the year by £798K (3.3%) and operating profit was improved by £55.9K (8.81%).

 

The directors are satisfied with the performance of the Group during the year.

On behalf of the board

J W Holmes
Director
28 August 2024
IDPP HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities
The principal activity of the group during the year continued to be that of information technology recruitment agents.
Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £513,011. The directors do not recommend payment of a further dividend.

Directors

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

J W Holmes
J Rimmer
Financial instruments
Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Foreign currency risk

The group’s principal foreign currency exposures arise from trading with overseas companies and borrowings denominated in Euro. The group does not operate a policy of hedging these exposures in order to fix the cost in Sterling. Instead, the group manages these exposures by adjusting levels of Euro denominated cash and borrowings in line with expectations of future operating needs and likely short term movements in the exchange rate with Sterling.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Auditor

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

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
J W Holmes
Director
28 August 2024
IDPP HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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.

IDPP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IDPP HOLDINGS LIMITED
- 4 -
Opinion

We have audited the financial statements of IDPP Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, 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.

Opinions on other matters prescribed by the Companies Act 2006

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

IDPP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IDPP HOLDINGS LIMITED
- 5 -
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 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 parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We gained understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to risk, recognised that 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.

We focussed on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. 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. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

IDPP HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IDPP HOLDINGS LIMITED
- 6 -

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.

Andrew Seton (Senior Statutory Auditor)
For and on behalf of Clarkson Hyde LLP
3 September 2024
Chartered Accountants
Statutory Auditor
3rd Floor
Chancery House
St Nicholas Way
Sutton
Surrey
SM1 1JB
IDPP HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
24,913,693
24,115,523
Cost of sales
(21,449,969)
(21,652,192)
Gross profit
3,463,724
2,463,331
Administrative expenses
(2,773,866)
(1,829,357)
Operating profit
4
689,858
633,974
Interest payable and similar expenses
6
(13,448)
(16,472)
Profit before taxation
676,410
617,502
Tax on profit
7
(164,682)
(119,955)
Profit for the financial year
21
511,728
497,547
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

IDPP HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
£
£
Profit for the year
511,728
497,547
Other comprehensive income
Currency translation gain/(loss) taken to retained earnings
-
0
(997)
Total comprehensive income for the year
511,728
496,550
Total comprehensive income for the year is all attributable to the owners of the parent company.
IDPP HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
27,329
35,780
Current assets
Debtors
13
6,880,429
4,922,785
Cash at bank and in hand
172,071
514,703
7,052,500
5,437,488
Creditors: amounts falling due within one year
14
(6,350,158)
(4,742,314)
Net current assets
702,342
695,174
Total assets less current liabilities
729,671
730,954
Creditors: amounts falling due after more than one year
15
(152,143)
(152,143)
Net assets
577,528
578,811
Capital and reserves
Called up share capital
19
121,291
121,291
Share premium account
20
758,425
758,425
Profit and loss reserves
21
(302,188)
(300,905)
Total equity
577,528
578,811

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 28 August 2024 and are signed on its behalf by:
28 August 2024
J W Holmes
Director
Company registration number 03989997 (England and Wales)
IDPP HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
11
1,683,374
1,683,374
Current assets
Debtors
13
31,260
31,260
Creditors: amounts falling due within one year
14
(834,918)
(834,918)
Net current liabilities
(803,658)
(803,658)
Net assets
879,716
879,716
Capital and reserves
Called up share capital
19
121,291
121,291
Share premium account
20
758,425
758,425
Total equity
879,716
879,716

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 £513,011 (2022 - £742,049 profit).

The financial statements were approved by the board of directors and authorised for issue on 28 August 2024 and are signed on its behalf by:
28 August 2024
J W Holmes
Director
Company registration number 03989997 (England and Wales)
IDPP HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
121,291
758,425
(539,948)
339,768
Year ended 31 December 2022:
Profit for the year
-
-
497,547
497,547
Other comprehensive income:
Currency translation differences
-
-
(997)
(997)
Total comprehensive income
-
-
496,550
496,550
Dividends
8
-
-
(257,507)
(257,507)
Balance at 31 December 2022
121,291
758,425
(300,905)
578,811
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
511,728
511,728
Dividends
8
-
-
(513,011)
(513,011)
Balance at 31 December 2023
121,291
758,425
(302,188)
577,528
IDPP HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
121,291
758,425
(484,542)
395,174
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
742,049
742,049
Dividends
8
-
-
(257,507)
(257,507)
Balance at 31 December 2022
121,291
758,425
-
0
879,716
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
513,011
513,011
Dividends
8
-
-
(513,011)
(513,011)
Balance at 31 December 2023
121,291
758,425
-
0
879,716
IDPP HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
123,869
420,998
Interest paid
(13,448)
(16,472)
Income taxes paid
(217,424)
(52,946)
Net cash (outflow)/inflow from operating activities
(107,003)
351,580
Investing activities
Purchase of tangible fixed assets
(12,609)
(13,360)
Repayment of loans
300,000
-
Net cash generated from/(used in) investing activities
287,391
(13,360)
Financing activities
Repayment of borrowings
(277)
(1,992)
Payment of finance leases obligations
(10,111)
(16,856)
Dividends paid to equity shareholders
(513,011)
(257,507)
Net cash used in financing activities
(523,399)
(276,355)
Net (decrease)/increase in cash and cash equivalents
(343,011)
61,865
Cash and cash equivalents at beginning of year
514,703
453,835
Effect of foreign exchange rates
-
0
(997)
Cash and cash equivalents at end of year
171,692
514,703
Relating to:
Cash at bank and in hand
172,071
514,703
Bank overdrafts included in creditors payable within one year
(379)
-
IDPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

IDPP Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 65 Petty France, London, SW1H 9EU.

 

The group consists of IDPP Holdings 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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company IDPP Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

The financial statements have been prepared on the going concern basis as a result of the continued financial support from the directors.

1.4
Turnover

Turnover represents amounts receivable for services net of VAT and discounts.

1.5
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 15 years.

IDPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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, fittings and equipment
33.33% straight line
Computer equipment
33.33% straight line

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
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.9
Cash and cash equivalents

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

1.10
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

IDPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.11
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.

1.12
Taxation

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

IDPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

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

1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.16
Foreign exchange
In respect of UK based operations, transactions in foreign currencies are translated into sterling at the rate ruling at the end of the month in which the transaction is undertaken. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. All exchange differences are taken to profit and loss account.

In respect of European based operations, profits and losses are initially recorded in Euro and are translated into sterling at an average rate for the year. Monetary assets and liabilities recorded in Euro are translated into sterling at the rates of exchange ruling at the balance sheet date. Differences arising between the average rate and the balance sheet rate of exchange are taken directly to reserves.
IDPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
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.

3
Turnover

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

2023
2022
£
£
Turnover analysed by class of business
Principal activity
24,913,693
24,115,523
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
24,913,693
24,115,523
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
51,348
(57,392)
Fees payable to the group's auditor for the audit of the group's financial statements
-
-
Depreciation of owned tangible fixed assets
21,060
20,527
Operating lease charges
181,015
170,065
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Selling and administration
26
26
-
0
-
0
IDPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,476,599
1,208,400
-
0
-
0
Social security costs
171,720
142,429
-
-
Pension costs
24,572
27,585
-
0
-
0
1,672,891
1,378,414
-
0
-
0
6
Interest payable and similar expenses
2023
2022
£
£
Other interest on financial liabilities
12,670
12,238
Interest on finance leases and hire purchase contracts
-
1,589
Other interest
778
2,645
Total finance costs
13,448
16,472
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
164,682
119,955

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:

2023
2022
£
£
Profit before taxation
676,410
617,502
Expected tax charge based on the standard rate of corporation tax in the UK of 23.66% (2022: 19.00%)
160,039
117,325
Tax effect of expenses that are not deductible in determining taxable profit
7,893
19,023
Tax effect of income not taxable in determining taxable profit
-
0
(17,998)
Unutilised tax losses carried forward
-
0
1,215
Permanent capital allowances in excess of depreciation
(3,389)
905
Other non-reversing timing differences
(5)
-
0
Other timing differences
144
(515)
Taxation charge
164,682
119,955
IDPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
8
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
513,011
257,507
9
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
901,695
Amortisation and impairment
At 1 January 2023 and 31 December 2023
901,695
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
10
Tangible fixed assets
Group
Fixtures, fittings and equipment
Computer equipment
Total
£
£
£
Cost
At 1 January 2023
113,351
65,482
178,833
Additions
4,689
7,920
12,609
At 31 December 2023
118,040
73,402
191,442
Depreciation and impairment
At 1 January 2023
104,095
38,958
143,053
Depreciation charged in the year
6,288
14,772
21,060
At 31 December 2023
110,383
53,730
164,113
Carrying amount
At 31 December 2023
7,657
19,672
27,329
At 31 December 2022
9,256
26,524
35,780
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
IDPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
1,683,374
1,683,374

In the opinion of the directors, the aggregate value of the company's investment in subsidiary undertakings is not less than the amount included in the balance sheet.

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
1,683,374
Carrying amount
At 31 December 2023
1,683,374
At 31 December 2022
1,683,374
12
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
IDPP Consulting Limited
England & Wales
Ordinary
100.00
IDPP Europe Limited
England & Wales
Ordinary
100.00
IDPP Recruitment S.L.
Spain
Ordinary
100.00
IDPP Resources Limited
England & Wales
Ordinary
100.00
13
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,532,588
4,681,681
-
0
-
0
Amounts owed by group undertakings
-
-
31,260
31,260
Other debtors
104,216
37,756
-
0
-
0
Prepayments and accrued income
243,625
203,348
-
0
-
0
6,880,429
4,922,785
31,260
31,260

Included within trade debtors are £6,465,017 (2022: £4,667,860) of debts factored to ABN AMRO Commercial Finance plc.

IDPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
14
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
16
379
-
0
-
0
-
0
Obligations under finance leases
17
-
0
10,111
-
0
-
0
Other borrowings
16
-
0
277
-
0
-
0
Amounts owed to factoring company
3,791,751
2,207,145
-
0
-
0
Trade creditors
1,592,928
1,868,272
-
0
-
0
Amounts due to group undertakings
-
0
-
0
834,918
834,918
Corporation tax payable
165,129
217,871
-
0
-
0
Other taxation and social security
59,669
226,642
-
-
Other creditors
220,751
34,129
-
0
-
0
Accruals and deferred income
519,551
177,867
-
0
-
0
6,350,158
4,742,314
834,918
834,918
15
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Other borrowings
16
152,143
152,143
-
0
-
0

Other borrowings represent £152,143 (2022: £152,143) due to S Moore-Williams

 

This loan does not have any fixed repayment schedule and interest is payable at the rate of 8% p.a.

16
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank overdrafts
379
-
0
-
0
-
0
Other loans
152,143
152,420
-
0
-
0
152,522
152,420
-
-
Payable within one year
379
277
-
0
-
0
Payable after one year
152,143
152,143
-
0
-
0

Bank loans and overdrafts are secured by fixed and floating charges over the assets of the group.

IDPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
17
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
10,111
-
0
-
0

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
24,572
27,585

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.

19
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary 'A' shares of £1 each
59,142
59,142
59,142
59,142
Ordinary 'B' shares of £1 each
44,998
44,998
44,998
44,998
Ordinary 'C' shares of £1 each
17,151
17,151
17,151
17,151
121,291
121,291
121,291
121,291
20
Share premium account
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning and end of the year
758,425
758,425
758,425
758,425
IDPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
21
Profit and loss reserves
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
(300,905)
(539,948)
-
(484,542)
Profit for the year
511,728
497,547
513,011
742,049
Dividends
(513,011)
(257,507)
(513,011)
(257,507)
Currency translation differences
-
0
(997)
-
0
-
0
At the end of the year
(302,188)
(300,905)
-
0
-
22
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
2023
2022
2023
2022
£
£
£
£
Within one year
108,321
59,517
-
-
Between two and five years
237,525
16,667
-
-
345,846
76,184
-
-
23
Related party transactions

Included in other creditors is an amount of £200,000 (2022: £nil), which is loan payable to J W Holmes, a director.

 

During the year, consulting fees of £44,379 (2022: £35,091) were paid to Niyama Consulting SL, a company under common control of the director, J W Holmes.

24
Directors' transactions

Dividends totalling £500,000 (2022 - £250,000) were paid in the year in respect of shares held by the company's directors.

25
Controlling party

The group is controlled by J W Holmes by virtue of his majority shareholding.

IDPP HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
26
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
511,728
497,547
Adjustments for:
Taxation charged
164,682
119,955
Finance costs
13,448
16,472
Depreciation and impairment of tangible fixed assets
21,060
20,527
Movements in working capital:
(Increase)/decrease in debtors
(2,257,644)
1,611,715
Increase/(decrease) in creditors
1,670,595
(1,895,218)
Cash generated from operations
123,869
370,998
27
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
514,703
(342,632)
172,071
Bank overdrafts
-
0
(379)
(379)
514,703
(343,011)
171,692
Borrowings excluding overdrafts
(152,420)
277
(152,143)
Obligations under finance leases
(10,111)
10,111
-
352,172
(332,623)
19,549
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