Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-31falsetrue2023-01-0174falseNo description of principal activity71false 03852801 2023-01-01 2023-12-31 03852801 2022-01-01 2022-12-31 03852801 2023-12-31 03852801 2022-12-31 03852801 2022-01-01 03852801 1 2023-01-01 2023-12-31 03852801 d:Director1 2023-01-01 2023-12-31 03852801 d:Director2 2023-01-01 2023-12-31 03852801 d:Director4 2023-01-01 2023-12-31 03852801 d:RegisteredOffice 2023-01-01 2023-12-31 03852801 c:Buildings c:ShortLeaseholdAssets 2023-01-01 2023-12-31 03852801 c:Buildings c:ShortLeaseholdAssets 2023-12-31 03852801 c:Buildings c:ShortLeaseholdAssets 2022-12-31 03852801 c:FurnitureFittings 2023-01-01 2023-12-31 03852801 c:FurnitureFittings 2023-12-31 03852801 c:FurnitureFittings 2022-12-31 03852801 c:FurnitureFittings c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03852801 c:OfficeEquipment 2023-01-01 2023-12-31 03852801 c:OfficeEquipment 2023-12-31 03852801 c:OfficeEquipment 2022-12-31 03852801 c:OfficeEquipment c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03852801 c:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 03852801 c:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-12-31 03852801 c:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-12-31 03852801 c:Goodwill 2023-12-31 03852801 c:Goodwill 2022-12-31 03852801 c:CurrentFinancialInstruments 2023-12-31 03852801 c:CurrentFinancialInstruments 2022-12-31 03852801 c:CurrentFinancialInstruments c:WithinOneYear 2023-12-31 03852801 c:CurrentFinancialInstruments c:WithinOneYear 2022-12-31 03852801 c:UKTax 2023-01-01 2023-12-31 03852801 c:UKTax 2022-01-01 2022-12-31 03852801 c:ShareCapital 2023-01-01 2023-12-31 03852801 c:ShareCapital 2023-12-31 03852801 c:ShareCapital 2022-01-01 2022-12-31 03852801 c:ShareCapital 2022-12-31 03852801 c:ShareCapital 2022-01-01 03852801 c:SharePremium 2023-01-01 2023-12-31 03852801 c:SharePremium 2023-12-31 03852801 c:SharePremium 2022-01-01 2022-12-31 03852801 c:SharePremium 2022-12-31 03852801 c:SharePremium 2022-01-01 03852801 c:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 03852801 c:RetainedEarningsAccumulatedLosses 2023-12-31 03852801 c:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 03852801 c:RetainedEarningsAccumulatedLosses 2022-12-31 03852801 c:RetainedEarningsAccumulatedLosses 2022-01-01 03852801 c:FinancialAssetsAmortisedCost 2023-12-31 03852801 c:FinancialAssetsAmortisedCost 2022-12-31 03852801 c:FinancialLiabilitiesAmortisedCost 2023-12-31 03852801 c:FinancialLiabilitiesAmortisedCost 2022-12-31 03852801 d:OrdinaryShareClass1 2023-01-01 2023-12-31 03852801 d:OrdinaryShareClass1 2023-12-31 03852801 d:FRS102 2023-01-01 2023-12-31 03852801 d:Audited 2023-01-01 2023-12-31 03852801 d:FullAccounts 2023-01-01 2023-12-31 03852801 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 03852801 c:Subsidiary1 2023-01-01 2023-12-31 03852801 c:Subsidiary1 1 2023-01-01 2023-12-31 03852801 c:WithinOneYear 2023-12-31 03852801 c:WithinOneYear 2022-12-31 03852801 c:BetweenOneFiveYears 2023-12-31 03852801 c:BetweenOneFiveYears 2022-12-31 03852801 c:PlantEquipmentOtherAssetsUnderOperatingLeases 2023-12-31 03852801 c:PlantEquipmentOtherAssetsUnderOperatingLeases 2022-12-31 03852801 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:WithinOneYear 2023-12-31 03852801 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:WithinOneYear 2022-12-31 03852801 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:BetweenOneFiveYears 2023-12-31 03852801 c:PlantEquipmentOtherAssetsUnderOperatingLeases c:BetweenOneFiveYears 2022-12-31 03852801 c:EntityControlledByKeyManagementPersonnel1 2023-01-01 2023-12-31 03852801 c:EntityControlledByKeyManagementPersonnel1 2023-12-31 03852801 c:EntityControlledByKeyManagementPersonnel2 2023-01-01 2023-12-31 03852801 c:EntityControlledByKeyManagementPersonnel2 2023-12-31 03852801 c:EntityControlledByKeyManagementPersonnel3 2023-01-01 2023-12-31 03852801 c:EntityControlledByKeyManagementPersonnel3 2023-12-31 03852801 c:DevelopmentCostsCapitalisedDevelopmentExpenditure c:ExternallyAcquiredIntangibleAssets 2023-01-01 2023-12-31 03852801 c:Goodwill c:ExternallyAcquiredIntangibleAssets 2023-01-01 2023-12-31 03852801 2 2023-01-01 2023-12-31 03852801 6 2023-01-01 2023-12-31 03852801 c:ExternallyAcquiredIntangibleAssets 2023-01-01 2023-12-31 03852801 c:Goodwill c:OwnedIntangibleAssets 2023-01-01 2023-12-31 03852801 c:DevelopmentCostsCapitalisedDevelopmentExpenditure c:OwnedIntangibleAssets 2023-01-01 2023-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 03852801









INTELLECTUAL CAPITAL RESOURCES LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
COMPANY INFORMATION


Directors
N K Dickins 
J A Galloway 
D J Nash 




Registered number
03852801



Registered office
Hive 2
1530 Arlington Business Park

Theale

Reading

RG7 4SA




Independent auditors
Barnes Roffe LLP
Chartered Accountants & Statutory Auditors

3 Brook Business Centre

Cowley Mill Road

Uxbridge

Middlesex

UB8 2FX





 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 8
Statement of comprehensive income
 
9
Statement of financial position
 
10
Statement of changes in equity
 
11
Notes to the financial statements
 
12 - 30


 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Business review and future developments
 
The principal activity of the company continued to be that of recruitment within the technology sector. The company identifies skills-shortages for leading high tech companies across the UK, Europe and China, covering technical and commercial disciplines. Permanent and contract roles are addressed.
We aim to present a balanced and comprehensive review of the performance and development of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our business and is written in the context of the risks and uncertainties we face.
The results of the company are set out in the Statement of comprehensive income on page 9.
Turnover for the year ended 31 December 2023 was £24,893,587 compared with £26,369,232 for year ended 2022, a decrease of 5.59%.
Gross profit for the year ended 31 December 2023 was £10,827,342 compared with £11,842,372 for year ended 2022, a decrease of 8.57%.
Operating expenses for the year ended 31 December 2023 were £7,825,377 compared with £7,961,371 for the  year ended 2022, a decrease of 0.17%.
Net profit before tax for the year ended 31 December 2023 was £2,958,110 compared with a net profit of £3,866,082 for the year ended 2022, a decrease of 23.48%.
Net assets at 31 December 2023 were £3,123,280 
(2022 - £3,213,748).
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company which are turnover, gross margin and the control of operating expenses. These indicators are reviewed monthly.
During 2023 we consolidated a number of key accounts and solidified the management team (business directors) and their team structures.
We finished the year in a strong position and see 2023 as a potential record year in terms of turnover. We have plans to grow each division with motivated juniors who will join in a junior capacity and learn the trade from their experienced colleagues and divisional managers.

Page 1

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties
 
1. Demand is in large part driven by the overall performance of the technology industry.
2. In house recruitment teams are often a source of ‘competition’.
3. There is a general perception that recruiters are an unnecessary cost for companies.
Apart from the risk covered above, the main risks arising from the financial instruments are detailed below. The board reviews and agrees policies for managing the risks detailed below to minimise the company's exposure.
Liquidity risk
The company manages its cash and borrowing requirements in order to ensure the group has sufficient liquid resources to meet the operational needs of the business.
Credit risk
The company only trades with reputable parties and extends credit only to those who demonstrate an acceptable credit risk.
Cash flow risk
The monitoring and review of cash requirements by the board ensures that there are adequate facilities readily available from the company's finance providers to support the company's cash flow requirements.
Foreign currency risk
The company undertakes certain transactions denominated in foreign currencies resulting in exposure to exchange rate fluctuation. The management does not consider this to be a significant risk, as the short timescale involved in foreign currency transactions means that any foreign exchange fluctuations are unlikely to be significant.


This report was approved by the board on 11 September 2024 and signed on its behalf.





J A Galloway
Director

Page 2

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Results and dividends

The profit for the year, after taxation, amounted to £2,201,095 (2022 - £3,098,282).

During the year, the directors declared total dividends of £2,291,563 (2022 - £6,236,035) to be paid. 

Directors

The directors who served during the year were:

N K Dickins 
J A Galloway 
D J Nash 

Matters covered in the strategic report

The company has chosen, in accordance with section 414C of the Companies Act 2006, to set out the following information which would otherwise be required to be contained in the director's report within strategic report:
Likely financial risk management objective and policies; and business review and future developments in the business of the company.

Page 3

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 

Post balance sheet events

There are no subsequent events that require disclosure or adjustments to the financial statements.

Auditors

The auditorsBarnes Roffe LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 11 September 2024 and signed on its behalf.
 





J A Galloway
Director

Page 4

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTELLECTUAL CAPITAL RESOURCES LIMITED
 

Opinion


We have audited the financial statements of Intellectual Capital Resources Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 31 December 2023 and of its 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 5

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTELLECTUAL CAPITAL RESOURCES LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 6

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTELLECTUAL CAPITAL RESOURCES LIMITED (CONTINUED)


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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with law and regulations, was as follows:

The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the company through discussion with directors and other management, and from our commercial knowledge and experience of the relevant sector;
The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows;
 
      o Companies Act 2006.
      o FRS102.
      o Employment legislation.
      o Tax legislation.
      o IR25 legislation.

We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and reviewing supporting evidence where applicable; and
Laws and regulations were communicated within the audit team at the planning meeting, and during the audit as any further laws and regulation were identified. The audit team remained alert to instances of     non-compliance throughout the audit.
 
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 as to where they consider there was susceptibility to fraud and their knowledge of actual suspected and alleged fraud;
Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations;
Reviewing the financial statements and testing the disclosures against supporting documentation;
Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
Inspecting and testing journal entries to identify unusual or unexpected transactions;
Assessing whether judgement and assumptions made in determining significant accounting estimates were indicative of management bias; and
Investigating the rationale behind significant transactions, or transactions that are unusual or outside the company’s usual course of business.

Page 7

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INTELLECTUAL CAPITAL RESOURCES LIMITED (CONTINUED)


The areas that we identified as being susceptible to misstatement through fraud were:

 Management bias in the estimates and judgements made;
Management override of controls; and
Posting of unusual journals or transactions.
 
Because of 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. 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 Auditors' report.


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 2006Our 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 Auditors' 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.





Mark Hancock (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants & Statutory Auditors
3 Brook Business Centre
Cowley Mill Road
Uxbridge
Middlesex
UB8 2FX

12 September 2024
Page 8

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
     4
24,893,587
26,369,232

Cost of sales
  
(14,066,245)
(14,526,860)

Gross profit
  
10,827,342
11,842,372

Administrative expenses
  
(7,825,377)
(7,961,371)

Operating profit
 5 
3,001,965
3,881,001

Interest receivable and similar income
 9 
161
734

Interest payable and similar expenses
 10 
(44,016)
(15,653)

Profit before tax
  
2,958,110
3,866,082

Tax on profit
 11 
(757,015)
(767,800)

Profit for the financial year
  
2,201,095
3,098,282

Total comprehensive income for the year
  
2,201,095
3,098,282

The notes on pages 12 to 30 form part of these financial statements.

Page 9

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
REGISTERED NUMBER: 03852801

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023


2023

2022
Note
£
£
£
£

Fixed assets
  

Intangible assets
 13 
1,232,938
1,437,387

Tangible assets
 14 
131,935
164,901

Investments
 15 
186,590
150,721

  
1,551,463
1,753,009

Current assets
  

Debtors: amounts falling due within one year
 16 
4,505,582
4,666,803

Cash at bank and in hand
 17 
965,340
971,678

  
5,470,922
5,638,481

Creditors: amounts falling due within one year
 18 
(3,899,105)
(4,177,742)

Net current assets
  
 
 
1,571,817
 
 
1,460,739

Total assets less current liabilities
  
3,123,280
3,213,748

  

Net assets
  
3,123,280
3,213,748


Capital and reserves
  

Called up share capital 
 20 
11,316
11,316

Share premium account
 21 
292,905
292,905

Profit and loss account
 21 
2,819,059
2,909,527

  
3,123,280
3,213,748


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 11 September 2024.




J A Galloway
Director


The notes on pages 12 to 30 form part of these financial statements.

Page 10

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023
11,316
292,905
2,909,527
3,213,748


Comprehensive income for the year

Profit for the year
-
-
2,201,095
2,201,095
Total comprehensive income for the year
-
-
2,201,095
2,201,095


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(2,291,563)
(2,291,563)


Total transactions with owners
-
-
(2,291,563)
(2,291,563)


At 31 December 2023
11,316
292,905
2,819,059
3,123,280



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Share premium account
Profit and loss account
Total equity

£
£
£
£

At 1 January 2022
11,316
292,905
6,047,280
6,351,501


Comprehensive income for the year

Profit for the year
-
-
3,098,282
3,098,282
Total comprehensive income for the year
-
-
3,098,282
3,098,282


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(6,236,035)
(6,236,035)


Total transactions with owners
-
-
(6,236,035)
(6,236,035)


At 31 December 2022
11,316
292,905
2,909,527
3,213,748


The notes on pages 12 to 30 form part of these financial statements.

Page 11

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Intellectual Capital Resources Limited is a company limited by shares, incorporated in England and Wales. The address of the registered office is Hive 2, 1530 Arlington Business Park, Theale, Reading, RG7 4SA.
The company specialises in recruitment within the technology sector.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

  
2.2

Financial reporting standard 102 - reduced disclosure exemption

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
- the requirements of Section 7 Statement of Cash Flows;
- the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).
This information is included in the consolidated financial statements of Intellectual Capital Resources Holdings Limited for the year ended 31 December 2023 and these financial statements may be obtained from Companies House, Crown Way, Maindy, Cardiff, CF14 3UZ.

 
2.3

Exemption from preparing consolidated financial statements

The Company is a parent company that is also a subsidiary included in the consolidated financial statements of a larger group by a parent undertaking established under the law of a state other than the United Kingdom and is therefore exempt from the requirement to prepare consolidated financial statements under section 401 of the Companies Act 2006.

Page 12

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

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

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Statement of comprehensive income over its useful economic life of 10 years.
Development expenditure
Development expenditure comprise capitalised development costs. These costs are amortised on a straight line basis once the initial development of the product has been completed.

 
2.6

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 13

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.6
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. 

Depreciation is provided on the following bases:

Leasehold improvements
-
Over the length of the lease
Fixtures and fittings
-
25% on reducing balance
Office equipment
-
33% on reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.

 
2.7

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.
Investments in unlisted Company shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the year. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

 
2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.9

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.10

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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
Page 14

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.10
Financial instruments (continued)


Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is
Page 15

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.10
Financial instruments (continued)

due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to and from related parties.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 16

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.12

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in Statement of comprehesive income except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

 
2.13

Finance costs

Finance costs are charged to the Statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.14

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.15

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to the Statement of comprehensive income on a straight line basis over the lease term.

Page 17

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.16

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.17

Share-based payments

Where share options are awarded to employees, the fair value of the options at the date of grant is charged to the Statement of comprehensive income over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each Statement of financial position date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Company keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to the Statement of comprehensive income over the remaining vesting period.
Where equity instruments are granted to persons other than employees, the Statement of comprehensive income is charged with fair value of goods and services received.

 
2.18

Pensions

Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.

Page 18

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.19

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Statement of comprehensive income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

 
2.20

Interest income

Interest income is recognised in the Statement of comprehensive income using the effective interest method.

 
2.21

Borrowing costs

All borrowing costs are recognised in the Statement of comprehensive income in the year in which they are incurred.

 
2.22

Taxation

Tax is recognised in the Statement of comprehensive income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Page 19

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The principle estimates and judgements that could have a significant effect upon the company's financial results relate to:
Accrued income and accrued costs:
Income and expenditure has been recognised in respect of services delivered in the current accounting period however the relevant sales and purchases were no invoiced until after the year end. Certain judgements have been applied with regard to unbilled client engagements concerning future revenues, exposure to credit risk and the degree of completion of the underlying contractual arrangements.


4.


Turnover

The turnover and profit before taxation are attributable to the one principle activity of the company.
An analysis of turnover by geographical market is as follows:


2023
2022
£
£



United Kingdom
15,311,770
16,345,058

Rest of Europe
6,331,380
7,556,385

United States of America
1,737,389
2,349,218

Asia
70,007
118,571

23,450,546
26,369,232


5.


Operating profit

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

2023
2022
£
£

Depreciation of tangible fixed assets
49,479
83,317

Amortisation of intabgible assets, including goodwill
207,014
205,871

Exchange differences
(68,226)
(151,788)

Rent - operating lease
112,687
93,466

Other operating lease rentals
144,967
127,327

Page 20

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Auditors' remuneration

2023
2022
£
£



Fees payable to the Company's auditor for the audit of the Company's annual financial statements
14,835
14,700


7.


Employees

Staff costs, including directors' remuneration, were as follows:


2023
2022
£
£

Wages and salaries
4,999,860
5,331,587

Social security costs
580,688
687,884

Cost of defined contribution scheme
442,279
323,837

6,022,827
6,343,308


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
3
3



Sales
56
54



Administrative
15
14

74
71


8.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
10,590
13,437

Company contributions to defined contribution pension schemes
110,000
30,000

120,590
43,437


During the year retirement benefits were accruing to 2 directors (2022 - 1) in respect of defined contribution pension schemes.

Page 21

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest receivable

2023
2022
£
£


Other interest receivable
161
734

161
734


10.


Interest payable and similar charges

2023
2022
£
£


Bank interest payable
23,691
-

Other loan interest payable
19,263
15,653

Other interest payable
1,062
-

44,016
15,653


11.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
757,018
767,800

Adjustments in respect of previous periods
(3)
-


757,015
767,800


Total current tax
757,015
767,800

Taxation on profit on ordinary activities
 
757,015
 
767,800
Page 22

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.5% (2022 - 19%). The higher differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,958,110
3,866,082


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
695,156
734,556

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,019
6,201

Decelerated/(accelerated) capital allowances for year
7,519
(8,024)

Other timing difference
52,713
35,067

Group relief
(1,389)
-

Adjustments to prior year provision
(3)
-

Total tax charge for the year
757,015
767,800


Factors that may affect future tax charges

In the March 2021 Budget it was announced that the UK corporation tax rate would increase to 25% from 1 April 2023 for profits over £250,000. There are no other significant factors that may affect future tax charges.


12.


Dividends

2023
2022
£
£


Dividends paid on equity capital
2,291,563
6,236,035

2,291,563
6,236,035

Page 23

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Intangible assets




Development  expenditure
Goodwill
Total

£
£
£



Cost


At 1 January 2023
16,524
4,861,450
4,877,974


Additions
2,565
-
2,565



At 31 December 2023

19,089
4,861,450
4,880,539



Amortisation


At 1 January 2023
4,652
3,435,935
3,440,587


Charge for the year
3,369
203,645
207,014



At 31 December 2023

8,021
3,639,580
3,647,601



Net book value



At 31 December 2023
11,068
1,221,870
1,232,938



At 31 December 2022
11,872
1,425,515
1,437,387





Page 24

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


Tangible fixed assets





Short-term leasehold property
Fixtures and fittings
Office equipment
Total

£
£
£
£



Cost 


At 1 January 2023
192,877
79,988
308,681
581,546


Additions
4,401
4,022
14,480
22,903


Disposals
-
-
(54,735)
(54,735)



At 31 December 2023

197,278
84,010
268,426
549,714



Depreciation


At 1 January 2023
180,740
52,123
183,782
416,645


Charge for the year
3,749
7,150
38,580
49,479


Disposals
-
-
(48,345)
(48,345)



At 31 December 2023

184,489
59,273
174,017
417,779



Net book value



At 31 December 2023
12,789
24,737
94,409
131,935



At 31 December 2022
12,137
27,865
124,899
164,901

Page 25

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Fixed asset investments





Investments in subsidiary companies
Unlisted investments
Total

£
£
£



Cost 


At 1 January 2023
20,721
130,000
150,721


Additions
-
35,869
35,869



At 31 December 2023
20,721
165,869
186,590





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Principal activity

Class of shares

Holding

Intellectual Capital Group GMBH
Germany
Recruitment within the technology sector
Ordinary share capital
100%

The aggregate of the share capital and reserves as at 31 December 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)

Intellectual Capital Group GmbH

815,080
100,435


16.


Debtors

2023
2022
£
£


Trade debtors
1,776,124
2,174,110

Amounts owed by group undertakings
424,362
111,478

Other debtors
688,837
704,401

Prepayments and accrued income
1,616,259
1,676,814

4,505,582
4,666,803


Page 26

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
965,340
971,678

Less: bank overdrafts
(1,322)
-

964,018
971,678



18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
1,322
-

Trade creditors
193,119
300,406

Amounts owed to group undertakings
636,214
1,196,193

Corporation tax
243,976
315,885

Other taxation and social security
510,688
567,431

Other creditors
1,084,880
21,015

Accruals and deferred income
1,228,906
1,776,812

3,899,105
4,177,742


At 31 December 2023 there was a balance of £1,322 (2022 - £nil) due to the bank in respect of invoice discount finance taken up at that date. It is secured by a fixed and floating charge over the assets of the company.
The bank loans are secured by a debenture over the assets of the company. 

Page 27

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets that are debt instruments measured at amortised cost
2,889,323
2,989,989


Financial liabilities


Financial liabilities measured at amortised cost
1,915,535
1,517,614


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, other debtors and amount owed from group undertakings.
Financial liabilities measured at amortised cost comprise bank overdraft, bank loans, trade creditors and other creditors.


20.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,131,564 Ordinary shares of £0.01 each
11,316
11,316



21.


Reserves

Share premium account

Share premium includes excess amount received by a company over the par value of its share.

Profit and loss account

Profit and loss account includes all current and prior period retained profits and losses.

Page 28

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


Share based payments

On 5 August 2014, the parent company granted options to purchase 46,287 Ordinary B shares at a subscription price of 12.73p per share. On 19 October 2017, the parent company granted options to purchase 89,399 Ordinary B shares at a subscription price of £2.20 per share.
The principal terms and conditions of the grant are such whereby all options are to be settled by the physical delivery of shares.
During the previous years, the share option holders exercised their options in relation to 104,849 Ordinary B shares.
As at 31 December 2023, 30,837 of the above share options remain unexercised. The financial statements do not reflect the charge in respect of the above on the basis of materiality.



23.


Pension commitments

The company operated a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £562,279 (2022 - £323,837). Contributions totalling £136,623 were payable (2022 - £1,231 were receivable)  to the fund at the balance sheet date and are included in creditors (2022 - debtors).


24.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£

Land and property


Not later than 1 year
110,803
109,352

Later than 1 year and not later than 5 years
323,174
433,976

433,977
543,328

2023
2022

£
£

Other than land and buildings


Not later than 1 year
40,946
71,380

Later than 1 year and not later than 5 years
6,336
47,282

47,282
118,662

Page 29

 
INTELLECTUAL CAPITAL RESOURCES LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.


Transactions with directors

Included within other debtors is an amount of £288,977 (2022 - £288,977) due from J Galloway, a director of the company. No interest was accruing or payable on this loan.


26.


Related party transactions

The company has taken advantage allowed by Financial Reporting Standard 102 not to disclose  transactions with the wholly owned members of the group.
At 31 December 2023, the company owes an amount of £1,063,994 
(2022 - £Nil) to companies which are controlled by the directors. Interest is being accrued on these loans at 4.5% amounting to £9,432 (2022 - £Nil) and £4,562 (2022 - £Nil).
 
At 31 December 2023, the company is owed an amount of £325,000 (2022 - £325,000) from companies which are controlled by the directors.
 
At 31 December 2023, the company owed an amount of £11,256 (2022 - £11,256) to its directors and close relatives.
 
Total compensation of key management is as disclosed for directors.


27.


Post balance sheet events

There are no other subsequent events that require disclosure or adjustments to the financial statements.


28.


Ultimate parent undertaking and controlling party

The ultimate parent company is Intellectual Capital Resources Holdings Limited, a company incorporated in England and Wales. This is the smallest and largest group in which the results of the company are consolidated.
The ultimate controlling parties are the directors.
Consolidated accounts for Intellectual Capital Resources Holdings Limited, registered office is Hive 2, 1530 Arlington Business Park, Theale, Reading, Berkshire, England, RG7 4SA, are available at Companies House, Crown Way, Cardiff, CF14 3UZ.

 
Page 30