Company registration number 04135080 (England and Wales)
ITAB HOLDINGS UK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ITAB HOLDINGS UK LTD
COMPANY INFORMATION
Directors
R T French
U E Bergmo Sköld
U A Elgaard
N Hughes
Secretary
A J Tweddle
Company number
04135080
Registered office
Itab House Swallowdale Lane
Hemel Hempstead Industrial Estate
Hemel Hempstead
Hertfordshire
HP2 7EA
Auditor
Grant Thornton UK LLP
Victoria House
199 Avebury Boulevard
Milton Keynes
MK9 1AU
Bankers
Nordea Bank AB
6th Floor
5 Aldermanbury Square
London
EC2V 7AZ
ITAB HOLDINGS UK LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 19
ITAB HOLDINGS UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

 

The principal activity of ITAB Holdings UK Ltd is that of a holding company.

 

It owns 100% of the shares of the following group companies:-

 

- ITAB UK Ltd

- ITAB Interiors Ltd

 

 

ITAB Prolight UK Limited and Maxted Holdings Limited were dissolved in the year.

 

Furthermore it provides management services and advice to the company’s Swedish parent company and its other subsidiaries, including ITAB Shop Products UK Ltd.

Review of the business

The trading company within the above is ITAB UK Ltd, the remaining companies are dormant or non-trading and remaining assets are still in the process of being realised. ITAB UK Ltd provide a complete shopfitting solution for major retailers. This offer includes standard and bespoke retail display equipment, innovative solutions for the checkout arena, professional lighting systems and interior fit-outs. This wide product and service offering enable the company, in conjunction with its sister companies, to provide innovative solutions to customer needs. These companies are part of a much larger group which offer shopfitting solutions worldwide.

 

The profit after taxation, is £519,108 (2022: £17,295). A dividend of £1,000,000 (2022: £nil) was paid during the year.

 

As a holding company the company's key financial indicator during the year is the performance of its trading subsidiary. The results were as follows:

 

 

Profit before tax             2023              2022 Movement

£'000              £'000 £'000

ITAB UK Ltd         1,263             2,656 (1,393)

Principal risks and uncertainties

The trading company, ITAB UK Ltd, works primarily in the retail sector. Its sales are typically subject to annual tenders by its customers and the loss of a major contract would impact sales. Furthermore, sales are affected by its customer's capital expenditure programmes and changes in these would impact sales. The trading company, ITAB UK Ltd, looks to minimise these risks by continually reviewing and updating its product and service offer, and seeking to reach a wider customer base.

 

Exposure to credit, liquidity and price risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Company policies are aimed at minimising such losses, and require that deferred terms are only granted to customers who have reliable payment history and satisfy credit checks. The trading company, ITAB UK Ltd, supplies mainly blue chip retailers and accordingly this risk is minimised as much as possible. Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations as they fall due. The company mitigates liquidity risk by managing cash generation by its operations and has considerable financial resources available through its larger group. Price risk arises on material and labour prices but this is managed by close price monitoring, tendering and contractual terms.

 

Exposure to currency risks

The trading company, ITAB UK Ltd, purchase products from overseas and as such are subject to some currency risk primarily around the Euro and US dollar. This is reviewed each year and if cash flows are considered sufficiently certain then hedging will be considered.

ITAB HOLDINGS UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Going concern

In preparing these financial statements, the directors have assessed the ability of the company to continue to operate for the period of at least twelve months from the date of signing the financial statements.

 

The directors undertook a risk assessment and forecasting exercise to assess the company's liquidity position. The assessments include performing cashflow sensitivity analysis focusing on income and cost levels. In addition, reverse stress testing is performed to assess the levels of performance where cash availability would breach. The results of this analysis continues to demonstrate that there is sufficient cash availability.

 

Based on current trading performance, and the sensitivity and reverse stress testing performed, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least twelve months from the date of signing these financial statements and accordingly they continue to adopt the going concern basis in preparing these financial statements.

On behalf of the board

R T French
Director
14 May 2024
ITAB HOLDINGS UK LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

 

Dividends

The total distribution of dividends for the year ended 31 December 2023 was £1,000,000 (2022: £nil).

Principal activities

The principal activity of ITAB Holdings UK Limited is that of a holding company.

Directors

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

R T French
U E Bergmo Sköld
U A Elgaard
N Hughes
Financial instruments

The company and its subsidiaries (the group) finance their activities with a combination of cash, bank loans, intercompany loans and operating leases. Overdrafts are used to satisfy short term cash flow requirements. Other financial assets and liabilities, such as trade debtors and trade creditors, arise directly from the company's operating activities.

 

Financial instruments give rise to foreign currency, credit price and liquidity risk. In accordance with S414C (11) of the Companies Act 2006, the directors have presented information on financial risk management objectives and policies in the strategic report.

 

Future developments

The company's subsidiary ITAB UK Ltd continues to market ITAB's wide product and service offer to the retail community. The directors expect it to make satisfactory profits in 2024.

 

Indemnity provision for directors

The group to which the company belongs has provided qualifying indemnity provisions in respect of the directors which were in force during the year.

Statement as to disclosure of information to auditors

The directors confirm that:

 

 

Auditors

The auditors, Grant Thornton LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board
R T French
Director
14 May 2024
ITAB HOLDINGS UK LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The directors are responsible for preparing the Strategic Report, Directors' Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law, including FRS 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 group for that period. In preparing these financial statements, the directors are required to:

 

 

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

ITAB HOLDINGS UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ITAB HOLDINGS UK LTD
- 5 -
Opinion

We have audited the financial statements of ITAB Holdings UK Ltd (the 'company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and 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:

 

 

 

Basis for opinion

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

Conclusions relating to going concern

We are responsible for concluding on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify the auditor’s opinion. Our conclusions are based on the audit evidence obtained up to the date of our report. However, future events or conditions may cause the company to cease to continue as a going concern.

 

In our evaluation of the directors’ conclusions, we considered the inherent risks associated with the company's business model including effects arising from macro-economic uncertainties such as the cost of living crisis and the impact of the war in Ukraine, we assessed and challenged the reasonableness of estimates made by the directors and the related disclosures and analysed how those risks might affect the company's financial resources or ability to continue operations over the going concern period.

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.

ITAB HOLDINGS UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ITAB HOLDINGS UK LTD
- 6 -

Other information

The other information comprises the information included in the strategic report, directors’ report and financial statements, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the strategic report, directors’ report and financial statements. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements 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:

 

 

Matters on which we are required to report under the Companies Act 2006

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.

Matters on which we are required to report by exception

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

 

 

 

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement set out on page 4, 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.

ITAB HOLDINGS UK LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ITAB HOLDINGS UK LTD
- 7 -

 

 

 

 

 

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 auditor’s 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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Hannah Cox
Senior Statutory Auditor
For and on behalf of Grant Thornton UK LLP
Statutory Auditor, Chartered Accountants
Milton Keynes
14 May 2024
ITAB HOLDINGS UK LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
-
-
Administrative expenses
(10,906)
11,968
Operating (loss)/profit
2
(10,906)
11,968
Interest receivable and similar income
4
845,850
5,327
Amounts written off investments
(312,612)
-
Profit before taxation
522,332
17,295
Tax on profit
5
(3,224)
-
0
Profit for the financial year
519,108
17,295
Other comprehensive income
-
-
Total comprehensive income for the year
519,108
17,295
ITAB HOLDINGS UK LTD
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
Notes
£
£
Fixed assets
Investments
8
4,995,238
5,307,850
Current assets
Debtors
10
371,421
833,450
Cash at bank
172,920
592,225
544,341
1,425,675
Creditors: amounts falling due within one year
11
(95,110)
(808,164)
Net current assets
449,231
617,511
Net assets
5,444,469
5,925,361
Capital and reserves
Called up share capital
13
463,874
463,874
Share premium account
204,811
204,811
Capital redemption reserve
12,525
12,525
Capital contribution
3,000,000
3,000,000
Retained earnings
1,763,259
2,244,151
Total equity
5,444,469
5,925,361
The financial statements were approved by the Board of Directors and authorised for issue on 14 May 2024 and are signed on its behalf by:
R T French
Director
Company registration number 04135080 (England and Wales)
ITAB HOLDINGS UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
Share capital
Share premium account
Capital redemption reserve
Capital contribution
Retained earnings
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
463,874
204,811
12,525
3,000,000
2,226,856
5,908,066
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
-
17,295
17,295
Balance at 31 December 2022
463,874
204,811
12,525
3,000,000
2,244,151
5,925,361
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
-
-
519,108
519,108
Dividends
6
-
-
-
-
(1,000,000)
(1,000,000)
Balance at 31 December 2023
463,874
204,811
12,525
3,000,000
1,763,259
5,444,469
ITAB HOLDINGS UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

The financial statements of ITAB Holdings UK Ltd (the "company") for the year ended 31 December 2023 were authorised for issue by the board of directors on 14 May 2024 and the balance sheet was signed on the board's behalf by R T French. ITAB UK Ltd is registered and domiciled in England and Wales.

 

The principal accounting policies adopted by the Company are specified below.

1.1
Accounting convention

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

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

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

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

 

 

The financial statements of the company are consolidated in the financial statements of ITAB Shop Concept AB. These consolidated financial statements are available from its registered office, Box 9054, 550 09 Jönköping.

Judgements and key sources of estimation uncertainty

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of judgements, estimations and assumptions means that actual outcomes could differ.

 

Critical accounting judgements in applying the company's accounting policies

Management do not consider there to be any areas of critical judgement.

 

Sources of estimation uncertainty:

ITAB HOLDINGS UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.2
Going concern

In preparing these financial statements, the directors have assessed the ability of the company to continue to operate for the period of at least twelve months from the date of signing the financial statements.

 

The directors have undertaken a risk assessment and forecasting exercise to assess the company's liquidity position in response to the impact of rising inflation and reduced customer activity. The assessment included performing cash flow sensitivity analysis focusing on sales levels. In addition, reverse stress testing is performed to assess the levels of performance where cash availability would breach. The results of this analysis demonstrated that there is sufficient cash availability.

 

Based on current trading performance of the group companies, and the sensitivity and reverse stress testing performed, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for a period of at least twelve months from the date of signing these financial statements and accordingly they continue to adopt the going concern basis in preparing these financial statements.

1.3
Intangible fixed assets other than goodwill

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

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

Computer software
- over 3 years

Impairment of non-financial assets

At each balance sheet date non-financial assets not carried at fair value are assessed to determine whether there is an indication that the asset may be impaired. If there is such an indication the recoverable amount of the asset is compared to the carrying amount of the asset.

 

The recoverable amount of the asset is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the assets continued use. These cash flows are discounted using a pre-tax discount rate that represents the current market risk free rate and the risks inherent in the asset.

 

If the recoverable amount of the asset is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the statement of comprehensive income, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised within profit or loss.

 

If an impairment loss is subsequently reversed, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the statement of comprehensive income.

1.4
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

ITAB HOLDINGS UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -

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

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.5
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.
1.6
Cash at bank and in hand

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.

1.7
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.
1.8
Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to and from related companies.

 

Debt instruments (other than those wholly receivable or payable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade creditors and debtors, are measured initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in the case of an outright short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

 

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive income.

 

For financial assets recognised at amortised cost, the impairment loss is measured at the difference between the asset's carrying amount and the present value of estimated cashflows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective rate determined under the contract.

 

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

ITAB HOLDINGS UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.9
Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

1.10
Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

 

Current or deferred taxation assets and liabilities are not discounted.

 

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

 

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

 

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.

1.11
Provisions

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

 

Provisions are charged as an expense to profit or loss in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charges to the provision carried in the Balance Sheet.

1.12
Pension costs and other post reirement benefits

The company operates a defined contribution pension scheme and the pension charge represents amounts payable by the company to the fund. The assets of the scheme are held separately from those of the company in an independently administered fund.

1.13
Lease commitments

Rentals payable under operating leases, where substantially all the benefits and risks of ownership remain with lessor, are charged against income on a straight line basis over the period of the lease.

1.14
Foreign currencies

The company's financial statements are presented in sterling, which is also the company's functional currency. Transactions in foreign currencies are initially recorded in the entity's functional currency by applying the spot exchange rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency rate of exchange prevailing at the balance sheet date. All exchange differences are included in the Statement of Comprehensive income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

ITAB HOLDINGS UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.15

Interest payable and similar expenses

Interest payable and similar expenses 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
Operating (loss)/profit
2023
2022
Operating (loss)/profit for the year is stated after charging:
£
£
Auditors' remuneration
4,840
4,532
3
Employees and directors

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

2023
2022
Administrative
4
4
2023
2022
£
£
Wages and salaries
-
-
Social security costs
-
-
Pension costs
-
-
Directors' remuneration
2023
2022
£
£
Directors' remuneration
-
-
Directors' pension contributions
-
-

The directors of the company are also directors of other undertakings within the ITAB group of which ITAB Holdings UK Ltd is a subsidiary. The directors' remuneration for the year was paid by other undertakings and the directors have concluded that none of this remuneration relates to their incidental services to the company in the current year (2022: £Nil).

ITAB HOLDINGS UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
4
Interest receivable and similar income
2023
2022
£
£
Interest income
Bank interest
24,625
5,327
Income from fixed asset investments
Income from shares in group undertakings
821,225
-
0
845,850
5,327
5
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
3,224
-
0

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

2023
2022
£
£
Profit before taxation
522,332
17,295
Expected tax charge based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
122,748
3,286
Tax effect of expenses that are not deductible in determining taxable profit
73,464
-
0
Tax effect of income not taxable in determining taxable profit
(192,988)
-
0
Group relief
-
0
(3,286)
Taxation charge for the year
3,224
-

 

6
Dividends
2023
2022
£
£
Interim paid
1,000,000
-
0
ITAB HOLDINGS UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
7
Intangible assets
Computer software
£
Cost
At 1 January 2023 and 31 December 2023
14,936
Amortisation and impairment
At 1 January 2023 and 31 December 2023
14,936
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
8
Investments
2023
2022
Notes
£
£
Investments in subsidiaries
9
4,995,238
5,307,850
Investments
Shares in subsidiaries
£
Cost
At 1 January 2023
8,846,962
Write off
(1,864,832)
At 31 December 2023
6,982,130
Impairment
At 1 January 2023
3,539,112
Realised
(1,552,220)
At 31 December 2023
1,986,892
Carrying amount
At 31 December 2023
4,995,238
At 31 December 2022
5,307,850
Subsidiaries

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

ITAB HOLDINGS UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
Subsidiaries
(Continued)
- 18 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
ITAB UK Ltd
Itab House, Swallowdale Lane, Hemel Hempstead Industrial Estate, Hemel Hempstead, Herts, HP2 7EA
Manufacture of retail display systems
Ordinary
100.00
-
ITAB Interiors Ltd
Itab House, Swallowdale Lane, Hemel Hempstead Industrial Estate, Hemel Hempstead, Herts, HP2 7EA
Manufacture of specialist joinery
Ordinary
0
100.00
Maxted Holdings Limited
Itab House, Swallowdale Lane, Hemel Hempstead Industrial Estate, Hemel Hempstead, Herts, HP2 7EA
Dormant company
Ordinary
0
100.00
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Corporation tax debtor
363,755
742,440
Amounts owed by group undertakings
7,531
65,318
Prepayments and accrued income
135
25,692
371,421
833,450

Amounts owed by group undertakings are unsecured, interest free and repayable on demand.

10
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
5,360
2,038
Amounts owed to group undertakings
79,410
806,126
Accruals and deferred income
10,340
-
0
95,110
808,164

Amounts owed to group companies are unsecured, interest free and repayable on demand.

 

A debenture incorporating a fixed and floating charge as security over the assets and undertakings of the company is in existence in favour of the bank.

11
Operating lease commitments

Minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
-
0
55
-
0
55
ITAB HOLDINGS UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
12
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
4,638,743
4,638,743
463,874
463,874

The company has one class of ordinary shares which carry no right to fixed income.

13
Reserves

Share Premium

Where shares were issued at a value higher than their nominal value, the difference is transferred to the share premium account.

 

Capital Redemption Reserve

A non-distributable reserve created upon the buy-back by the company of its own shares.

 

Capital Contribution

This represents amounts forwarded to the company by its owner as part of an ongoing obligation to fund the entity.

14
Ultimate parent company

ITAB Shop Concept AB (incorporated in Sweden) is regarded by the directors as being the company's ultimate parent company.

 

The largest and smallest group in which the results of the company are consolidated is that headed by ITAB Shop Concept AB.

 

Copies of ITAB Shop Concept AB financial statements can be obtained from the company secretary at Box 9054, SE-550. 09 Jönköping, Sweden.

15
Related party transactions

The company has taken advantage of exemptions 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.

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