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REGISTERED NUMBER: 06166871 (England and Wales)






















Ideal Building Systems Holdings Limited

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements for the Year Ended 31st December 2023






Ideal Building Systems Holdings Limited (Registered number: 06166871)






Contents of the Consolidated Financial Statements
for the year ended 31st December 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Statement of Comprehensive Income 8

Consolidated Balance Sheet 9

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


Ideal Building Systems Holdings Limited

Company Information
for the year ended 31st December 2023







DIRECTORS: P R Coates
M R Laverack
Mrs P E Benmasaud





SECRETARY: Mrs P E Benmasaud





REGISTERED OFFICE: Lancaster Road
Carnaby Industrial Estate
Bridlington
East Yorkshire
YO15 3QY





REGISTERED NUMBER: 06166871 (England and Wales)





AUDITORS: Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire HU2 8BA

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Group Strategic Report
for the year ended 31st December 2023

The directors present their strategic report of the company and the group for the year ended 31st December 2023.

REVIEW OF BUSINESS
The results for the year and financial position of the Group are as shown in the accompanying financial statements.

The Directors are pleased with the excellent performance of the Group which continues to build on foundations laid in previous years. Revenue and, in turn, profits have increased in recent years as a result of investment in the Production facility and efficiencies in the manufacturing process.

The Group is now debt free and has robust cash reserves.

The Group currently has secured revenue (orders and intents) for 90% of its manufacturing capacity for the next financial year (ending December 2024), with some significant projects also being currently negotiated for year ending December 2025.

Carbon Reduction Consultants been engaged by the Company and we are dedicated to integrating innovative, eco-friendly practices into our operations and building processes, ensuring that we contribute positively to the environment and help drive the global transition to a low-carbon economy.
Ideal Building Systems Limited is committed to achieving Net Zero emissions by 2050.To continue our progress to achieving Net Zero, we have adopted the carbon reduction targets for our direct emissions which align with those of the NHS.

PRINCIPAL RISKS AND UNCERTAINTIES
Material Supplies
The industry has previously seen pricing volatility and supply issues, during 2023, these have begun to stabilise, assisted by our continued ability (due to cash reserves) to buy in bulk and stock significant amounts of materials. Our cash reserves have also enabled us to benefit from discounts due to improving supplier payment terms.

Staff
Due to a national shortage, attracting and retaining quality staff remains a priority to the Group and we have therefore invested heavily in staff training, development and welfare. We have strengthened our HR and improved our employee benefits and facilities to further mitigate the risk.

Competition
Risks affecting the Group are considered to relate to competition for contracts from both National and independent businesses. The Group continues to mitigate this by providing a high quality, financially competitive and professional service to its clients.

KPI'S
The company's key performance indicators are:

2023 2022
Revenue 33,243,183 27,494,287
Revenue growth 20.91% 5.10%
Operating profit 4,214,392 4,327,211

ON BEHALF OF THE BOARD:





Mrs P E Benmasaud - Secretary


3rd September 2024

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Report of the Directors
for the year ended 31st December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31st December 2023.

PRINCIPAL ACTIVITY
The principal activity of the group in the year under review was that of the manufacture of prefabricated buildings and the construction of steel buildings.

DIVIDENDS
The total distribution of dividends for the year ended 31st December 2023 will be £1,000,000 (2022: £1,000,000).

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report.

P R Coates
M R Laverack
Mrs P E Benmasaud

GOING CONCERN
The company have considered the forecasts for the period to December 2024 along with the companies cash position and have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of 12 months from the date of approval of these financial statements and have therefore prepared the financial statements on a going concern basis.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Report of the Directors
for the year ended 31st December 2023


AUDITORS
The auditors, Smailes Goldie, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



Mrs P E Benmasaud - Secretary


3rd September 2024

Report of the Independent Auditors to the Members of
Ideal Building Systems Holdings Limited

Opinion
We have audited the financial statements of Ideal Building Systems Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31st December 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
Ideal Building Systems Holdings Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, tax legislation, data protection, anti-bribery, employment, environmental and health and safety legislation. An understanding of these laws and regulations and the extent of compliance was obtained through discussion with management and inspecting legal and regulatory correspondence.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;

-
assessed whether judgements and assumptions made in determining the accounting estimates were
indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

Report of the Independent Auditors to the Members of
Ideal Building Systems Holdings Limited


In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with relevant regulators and the company's legal advisors.

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission, or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.




Matthew Fox FCCA (Senior Statutory Auditor)
for and on behalf of Smailes Goldie
Chartered Accountants
Statutory Auditor
Regent's Court
Princess Street
Hull
East Yorkshire HU2 8BA

3rd September 2024

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Consolidated Statement of Comprehensive Income
for the year ended 31st December 2023

2023 2022
Notes £    £   

TURNOVER 33,243,183 27,494,287

Cost of sales 23,629,380 19,417,030
GROSS PROFIT 9,613,803 8,077,257

Administrative expenses 5,418,637 3,767,879
4,195,166 4,309,378

Other operating income 19,226 17,833
OPERATING PROFIT 4 4,214,392 4,327,211

Interest receivable and similar income 5 254,119 20,008
4,468,511 4,347,219
Gain/loss on revaluation of investments 16,778 (122,340 )
4,485,289 4,224,879

Interest payable and similar expenses 6 (768 ) 1,287
PROFIT BEFORE TAXATION 4,486,057 4,223,592

Tax on profit 7 1,111,915 842,954
PROFIT FOR THE FINANCIAL YEAR 3,374,142 3,380,638

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

3,374,142

3,380,638

Profit attributable to:
Owners of the parent 3,328,224 3,184,473
Non-controlling interests 45,918 196,165
3,374,142 3,380,638

Total comprehensive income attributable to:
Owners of the parent 3,328,224 3,184,473
Non-controlling interests 45,918 196,165
3,374,142 3,380,638

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Consolidated Balance Sheet
31st December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 1,134,185 1,400,814
Tangible assets 11 1,982,491 1,747,070
Investments 12 900,485 869,033
4,017,161 4,016,917

CURRENT ASSETS
Stocks 13 1,461,391 1,572,558
Debtors 14 7,480,278 7,452,794
Cash at bank and in hand 7,589,200 6,809,986
16,530,869 15,835,338
CREDITORS
Amounts falling due within one year 15 5,018,389 6,677,947
NET CURRENT ASSETS 11,512,480 9,157,391
TOTAL ASSETS LESS CURRENT
LIABILITIES

15,529,641

13,174,308

CREDITORS
Amounts falling due after more than one
year

16

(23,995

)

(63,579

)

PROVISIONS FOR LIABILITIES 18 (240,333 ) (199,558 )
NET ASSETS 15,265,313 12,911,171

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Consolidated Balance Sheet - continued
31st December 2023

2023 2022
Notes £    £    £    £   
CAPITAL AND RESERVES
Called up share capital 19 96,953 96,953
Share premium 20 50,000 50,000
Capital redemption reserve 20 3,047 3,047
Retained earnings 20 14,449,262 12,141,038
SHAREHOLDERS' FUNDS 14,599,262 12,291,038

NON-CONTROLLING INTERESTS 21 666,051 620,133
TOTAL EQUITY 15,265,313 12,911,171


The financial statements were approved by the Board of Directors and authorised for issue on 3rd September 2024 and were signed on its behalf by:




P R Coates - Director M R Laverack - Director




Mrs P E Benmasaud - Director


Ideal Building Systems Holdings Limited (Registered number: 06166871)

Company Balance Sheet
31st December 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 856,546 875,111
Investments 12 9,474,121 9,474,121
10,330,667 10,349,232

CURRENT ASSETS
Debtors 14 3,975 1,245
Cash at bank 3,874 10,800
7,849 12,045
CREDITORS
Amounts falling due within one year 15 2,828,386 3,621,036
NET CURRENT LIABILITIES (2,820,537 ) (3,608,991 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

7,510,130

6,740,241

CAPITAL AND RESERVES
Called up share capital 19 96,953 96,953
Share premium 20 50,000 50,000
Capital redemption reserve 20 3,047 3,047
Retained earnings 20 7,360,130 6,590,241
SHAREHOLDERS' FUNDS 7,510,130 6,740,241

Company's profit for the financial year 1,769,889 1,352,490

The financial statements were approved by the Board of Directors and authorised for issue on 3rd September 2024 and were signed on its behalf by:




P R Coates - Director M R Laverack - Director




Mrs P E Benmasaud - Director


Ideal Building Systems Holdings Limited (Registered number: 06166871)

Consolidated Statement of Changes in Equity
for the year ended 31st December 2023

Called up
share Retained Share
capital earnings premium
£    £    £   
Balance at 1st January 2022 96,953 9,966,565 50,000

Changes in equity
Dividends - (1,010,000 ) -
Total comprehensive income - 3,184,473 -
Balance at 31st December 2022 96,953 12,141,038 50,000

Changes in equity
Dividends - (1,020,000 ) -
Total comprehensive income - 3,328,224 -
Balance at 31st December 2023 96,953 14,449,262 50,000
Capital
redemption Non-controlling Total
reserve Total interests equity
£    £    £    £   
Balance at 1st January 2022 3,047 10,116,565 423,968 10,540,533

Changes in equity
Dividends - (1,010,000 ) - (1,010,000 )
Total comprehensive income - 3,184,473 196,165 3,380,638
Balance at 31st December 2022 3,047 12,291,038 620,133 12,911,171

Changes in equity
Dividends - (1,020,000 ) - (1,020,000 )
Total comprehensive income - 3,328,224 45,918 3,374,142
Balance at 31st December 2023 3,047 14,599,262 666,051 15,265,313

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Company Statement of Changes in Equity
for the year ended 31st December 2023

Called up Capital
share Retained Share redemption Total
capital earnings premium reserve equity
£    £    £    £    £   
Balance at 1st January 2022 96,953 6,237,751 50,000 3,047 6,387,751

Changes in equity
Dividends - (1,000,000 ) - - (1,000,000 )
Total comprehensive income - 1,352,490 - - 1,352,490
Balance at 31st December 2022 96,953 6,590,241 50,000 3,047 6,740,241

Changes in equity
Dividends - (1,000,000 ) - - (1,000,000 )
Total comprehensive income - 1,769,889 - - 1,769,889
Balance at 31st December 2023 96,953 7,360,130 50,000 3,047 7,510,130

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Consolidated Cash Flow Statement
for the year ended 31st December 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 3,577,613 6,760,687
Interest paid 4,000 3,113
Interest element of hire purchase
payments paid

(3,232

)

(4,400

)
Tax paid (1,397,564 ) (1,133,277 )
Net cash from operating activities 2,180,817 5,626,123

Cash flows from investing activities
Purchase of tangible fixed assets (593,384 ) (157,116 )
Purchase of fixed asset investments (249,722 ) (207,835 )
Sale of tangible fixed assets 4,000 8,200
Sale of fixed asset investments 235,048 105,536
Interest received 254,119 20,008
Net cash from investing activities (349,939 ) (231,207 )

Cash flows from financing activities
Bank loan repayments in year - (416,667 )
Other loan repayments in the year - (19,179 )
Capital repayments in year (31,664 ) (164,364 )
Equity dividends paid (1,020,000 ) (1,010,000 )
Net cash from financing activities (1,051,664 ) (1,610,210 )

Increase in cash and cash equivalents 779,214 3,784,706
Cash and cash equivalents at
beginning of year

2

6,809,986

3,025,280

Cash and cash equivalents at end of
year

2

7,589,200

6,809,986

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Cash Flow Statement
for the year ended 31st December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 4,486,057 4,223,592
Depreciation charges 623,309 521,101
Profit on disposal of fixed assets (2,717 ) (717 )
(Gain)/loss on revaluation of fixed assets (16,778 ) 122,340
Finance costs (768 ) 1,287
Finance income (254,119 ) (20,008 )
4,834,984 4,847,595
Decrease in stocks 111,167 269,617
Increase in trade and other debtors (27,484 ) (2,140,883 )
(Decrease)/increase in trade and other creditors (1,341,054 ) 3,784,358
Cash generated from operations 3,577,613 6,760,687

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 7,589,200 6,809,986
Year ended 31st December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 6,809,986 3,025,280


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 6,809,986 779,214 7,589,200
6,809,986 779,214 7,589,200
Debt
Finance leases (95,243 ) 31,664 (63,579 )
(95,243 ) 31,664 (63,579 )
Total 6,714,743 810,878 7,525,621

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements
for the year ended 31st December 2023

1. STATUTORY INFORMATION

Ideal Building Systems Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Basis of consolidation
The consolidated financial statements include the financial statements of the company and its subsidiary undertakings.The acquisition method of accounting has been adopted. Under this method the results of subsidiary undertakings acquired or disposed of in the year are included in the consolidated profit and loss account from the date of acquisition or up to the date of disposal.

Under Section 408 of the Companies Act 2006 the company is exempt from the requirement to present its own profit and loss account.

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Sale of goods
Turnover from the sale of prefabricated units is recognised when significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. This is usually on dispatch of the goods.

Construction contracts
When the outcome of a construction contact can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to costs incurred to date and estimated costs to complete.

Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable.

When it is probable that contact costs will exceed the total contact turnover, the expected loss is recognised as an expense immediately, with a corresponding provision.

Interest and other income
Interest income is recognised using the effective interest method.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 1993, was amortised evenly over its estimated useful life of twenty years.

Purchased goodwill (representing the excess of the fair value of the consideration given over the fair value of the separable net assets acquired) arising on business combinations is capitalised. Positive goodwill is amortised to nil by equal annual instalments over its estimated useful life of twenty years which the directors consider to be its useful economic life. The carrying value of goodwill is reviewed whenever there is an indicator of impairment. Any impairment is recognised in the period in which it is identified.

Tangible fixed assets
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Freehold property- 2% on cost
Leasehold improvements- 20% on cost
Plant and machinery etc - 25% on cost, 15% on cost and 15% on reducing balance
Motor vehicles - 33% on cost and 25% on reducing balance

Computer equipment
- 25% on reducing balance, 20% on cost and 15% on reducing
balance

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023

2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Long term contracts are stated at cost net of amounts transferred to cost of sales less any foreseeable losses and progress payments receivable, not matched with turnover. Cost consists of direct materials, direct labour and appropriate related overheads.

Profit on long term contracts is recognised when the outcome of contracts can be assessed with reasonable certainty and is that amount which is estimated to fairly reflect the profit arising up to the accounting date. Profit on long term contracts is recognised in the profit and loss account as the difference between the reported turnover and related costs.

Financial instruments
Other financial assets, including fixed asset 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 the Statement of Comprehensive Income.

Taxation
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Hire purchase and leasing commitments
Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors.

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023

2. ACCOUNTING POLICIES - continued

Employee benefits
When employees have rendered service to the company, short term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The group operated a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Debtors and creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and are receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Investments
Other investments are measured at cost less impairment.

Impairment
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 6,083,603 4,554,836
Social security costs 621,002 479,475
Other pension costs 160,320 130,033
6,864,925 5,164,344

The average number of employees during the year was as follows:
2023 2022

Management 3 3
Direct and administration 81 85
84 88

The average number of employees by undertakings that were proportionately consolidated during the year was 81 (2022 - 85 ) .

2023 2022
£    £   
Directors' remuneration 1,696,630 841,714
Directors' pension contributions to money purchase schemes 23,400 54,435

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 3 3

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023

3. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 1,599,625 744,321
Pension contributions to money purchase schemes 16,900 48,250

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Depreciation - owned assets 328,720 219,084
Depreciation - assets on hire purchase contracts 27,960 35,388
Profit on disposal of fixed assets (2,717 ) (717 )
Goodwill amortisation 266,629 266,628
Auditors' remuneration 31,480 22,598
Operating lease payments 124,409 118,358

5. INTEREST RECEIVABLE AND SIMILAR INCOME
2023 2022
£    £   
Deposit account interest 223,016 19,702
Other interest receivable 31,103 306
254,119 20,008

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest - 1,408
Other interest (4,000 ) (4,521 )
Hire purchase 3,232 4,400
(768 ) 1,287

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 1,071,140 872,366
Adjustment in respect of previous periods - (39,494 )
Total current tax 1,071,140 832,872

Deferred tax 40,775 10,082
Tax on profit 1,111,915 842,954

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 4,486,057 4,223,592
Profit multiplied by the standard rate of corporation tax in the UK of
25 % (2022 - 19 %)

1,121,514

802,482

Effects of:
Expenses not deductible for tax purposes 11,206 40,622
Income not taxable for tax purposes (19,058 ) -
Goodwill amortisation 66,657 50,659
Overprovision in previous periods - (39,494 )
Enhanced expenditure (1,031 ) (13,056 )
Adjustment to tax charge in respect of change in rates (67,373 ) 1,741
Total tax charge 1,111,915 842,954

The expected net reversal of deferred tax liabilities in 2024 is £75,030 this is due to the reversal of accelerated capital allowances.

There are unused capital losses at the year end of £125,971 (2022: £108,252).

8. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


9. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 1,020,000 1,010,000

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023

10. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1st January 2023
and 31st December 2023 5,342,569
AMORTISATION
At 1st January 2023 3,941,755
Amortisation for year 266,629
At 31st December 2023 4,208,384
NET BOOK VALUE
At 31st December 2023 1,134,185
At 31st December 2022 1,400,814

11. TANGIBLE FIXED ASSETS

Group
Improvements
Freehold to Plant and
property property machinery
£    £    £   
COST
At 1st January 2023 928,232 470,339 1,059,708
Additions - 75,271 245,310
Disposals - - (22,950 )
At 31st December 2023 928,232 545,610 1,282,068
DEPRECIATION
At 1st January 2023 53,121 238,393 599,852
Charge for year 18,565 82,107 141,477
Eliminated on disposal - - (18,579 )
At 31st December 2023 71,686 320,500 722,750
NET BOOK VALUE
At 31st December 2023 856,546 225,110 559,318
At 31st December 2022 875,111 231,946 459,856

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023

11. TANGIBLE FIXED ASSETS - continued

Group

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1st January 2023 214,016 176,989 2,849,284
Additions 253,451 19,352 593,384
Disposals - - (22,950 )
At 31st December 2023 467,467 196,341 3,419,718
DEPRECIATION
At 1st January 2023 90,116 120,732 1,102,214
Charge for year 93,670 20,861 356,680
Eliminated on disposal (3,088 ) - (21,667 )
At 31st December 2023 180,698 141,593 1,437,227
NET BOOK VALUE
At 31st December 2023 286,769 54,748 1,982,491
At 31st December 2022 123,900 56,257 1,747,070

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1st January 2023 18,000 166,026 184,026
Transfer to ownership - (37,141 ) (37,141 )
At 31st December 2023 18,000 128,885 146,885
DEPRECIATION
At 1st January 2023 4,725 74,668 79,393
Charge for year 2,700 25,260 27,960
Transfer to ownership - (32,807 ) (32,807 )
At 31st December 2023 7,425 67,121 74,546
NET BOOK VALUE
At 31st December 2023 10,575 61,764 72,339
At 31st December 2022 13,275 91,358 104,633

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023

11. TANGIBLE FIXED ASSETS - continued

Company
Freehold
property
£   
COST
At 1st January 2023
and 31st December 2023 928,232
DEPRECIATION
At 1st January 2023 53,121
Charge for year 18,565
At 31st December 2023 71,686
NET BOOK VALUE
At 31st December 2023 856,546
At 31st December 2022 875,111

12. FIXED ASSET INVESTMENTS

Group
Listed
investments
£   
COST OR VALUATION
At 1st January 2023 869,033
Additions 249,722
Disposals (235,048 )
Impairments 16,778
At 31st December 2023 900,485
NET BOOK VALUE
At 31st December 2023 900,485
At 31st December 2022 869,033

Cost or valuation at 31st December 2023 is represented by:

Listed
investments
£   
Valuation in 2022 16,778
Cost 883,707
900,485

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023

12. FIXED ASSET INVESTMENTS - continued

Company
Shares in
group
undertakings
£   
COST
At 1st January 2023
and 31st December 2023 9,474,121
NET BOOK VALUE
At 31st December 2023 9,474,121
At 31st December 2022 9,474,121

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Ideal Building Systems Limited
Registered office: the same as can be found on page 1 of these financial statements.
Nature of business: Manufacture of prefabricated buildings
%
Class of shares: holding
Ordinary 100.00

Idacom Steel Buildings Limited
Registered office: the same as can be found on page 1 of these financial statements.
Nature of business: Construction of steel buildings
%
Class of shares: holding
Ordinary 80.00


13. STOCKS

Group
2023 2022
£    £   
Stocks 933,143 935,797
Work-in-progress 528,248 636,761
1,461,391 1,572,558

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023

14. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 5,224,334 5,479,117 - -
Amounts owed by group undertakings - - 1,187 967
VAT 387,277 623,108 - -
Prepayments and accrued income 1,868,667 1,350,569 2,788 278
7,480,278 7,452,794 3,975 1,245

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Hire purchase contracts (see note 17) 39,584 31,664 - -
Trade creditors 2,259,236 3,855,032 - 1,656
Amounts owed to group undertakings - - 1,381,931 3,098,216
Tax 183,749 510,173 230,111 94,790
Social security and other taxes 766,409 642,905 499,025 348,240
Other creditors 50,000 52,206 - -
Accruals 1,013,351 902,272 717,319 78,134
Deferred income 706,060 683,695 - -
5,018,389 6,677,947 2,828,386 3,621,036

The amounts disclosed above as owed to group undertakings have been disclosed as falling due within one year as they are technically due on demand. However the directors of Ideal Building Systems Limited have provided assurances that they have no intention of seeking repayment until such a time as cash surpluses are generated and in any event not within one year from the balance sheet date.

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
2023 2022
£    £   
Hire purchase contracts (see note 17) 23,995 63,579

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 39,584 31,664
Between one and five years 23,995 63,579
63,579 95,243

Group
Non-cancellable operating leases
2023 2022
£    £   
Within one year 120,122 120,206
Between one and five years 87,530 160,647
In more than five years 5,223 17,759
212,875 298,612

18. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Deferred tax
Deferred tax 46,995 50,719
Accelerated capital allowances 193,338 148,839
240,333 199,558

Group
Deferred
tax
£   
Balance at 1st January 2023 199,558
Charge to Statement of Comprehensive Income during year 40,775
Balance at 31st December 2023 240,333

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
96,953 Ordinary £1 96,953 96,953

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023

20. RESERVES

Group
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1st January 2023 12,141,038 50,000 3,047 12,194,085
Profit for the year 3,328,224 - - 3,328,224
Dividends (1,020,000 ) - - (1,020,000 )
At 31st December 2023 14,449,262 50,000 3,047 14,502,309

Company
Capital
Retained Share redemption
earnings premium reserve Totals
£    £    £    £   

At 1st January 2023 6,590,241 50,000 3,047 6,643,288
Profit for the year 1,769,889 - - 1,769,889
Dividends (1,000,000 ) - - (1,000,000 )
At 31st December 2023 7,360,130 50,000 3,047 7,413,177

Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

The share premium account represents the premium arising on the issue of shares net of issue costs.

The capital redemption reserve records the nominal value of shares purchased by the company.

21. NON-CONTROLLING INTERESTS

The minority interest represents a 20% shareholding in Idacom Steel Buildings Limited.

22. PENSION COMMITMENTS

The group makes payments to a defined contribution pension scheme. The charge for the year amounted to £160,320 (2022 £130,033). The amount outstanding at 31st December 2023 was £18,933 (2022 £41,062).

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Included within debtors is an amount due from P R Coates, a director, of £28,670 (2022 £27,535) on which interest was charged of £448 (2022 £634).

24. RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Ideal Building Systems Holdings Limited (Registered number: 06166871)

Notes to the Consolidated Financial Statements - continued
for the year ended 31st December 2023

24. RELATED PARTY DISCLOSURES - continued

Entities over which the entity has control, joint control or significant influence
2023 2022
£    £   
Amount due from related party 1,187 967

Key management personnel of the entity or its parent (in the aggregate)
2023 2022
£    £   
Remuneration 2,049,838 1,120,563

25. ULTIMATE CONTROLLING PARTY

The group is controlled by P R Coates who holds 58% of the issued share capital.