Company registration number 13274162 (England and Wales)
INFINITY CONSTRUCTION ENTERPRISE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
INFINITY CONSTRUCTION ENTERPRISE LIMITED
COMPANY INFORMATION
Director
Mr O Al-Najafi
Company number
13274162
Registered office
6 Blenheim Terrace
Leeds
West Yorkshire
United Kingdom
LS2 9HZ
Auditor
BDO LLP
Eden Building
Irwell Street
Salford
Manchester
M3 5EN
Business address
6 Blenheim Terrace
Leeds
West Yorkshire
United Kingdom
LS2 9HZ
INFINITY CONSTRUCTION ENTERPRISE LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Director's responsibilities statement
4
Independent auditor's 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 - 21
INFINITY CONSTRUCTION ENTERPRISE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The director presents the strategic report for the year ended 31 December 2023.

Fair review of the business

Infinity Construction Enterprise Ltd has successfully completed almost all outstanding projects during the year. We have achieved significant milestones and are currently focused on the opportunities that lie ahead. The management team remains committed and enthusiastic, ensuring that we maintain our financial strength. As we review the business, we are confident in our ability to secure further success in the coming years.

 

As many of our suppliers are long-term partners, we place a strong emphasis on maintaining effective communication. This commitment is essential to ensure the sustained growth of our business. Despite the current upward trend in supplier expenses and the costs associated with materials in the construction industry, we are diligently addressing these challenges.

 

Currently, our latest schemes involve the revitalization of town centres by creating luxury apartment accommodations. We are also focusing on converting redundant offices into residential buildings, contributing to urban development, and addressing the demand for housing.

 

Despite the challenges we face, Infinity Construction Enterprise Limited remains resilient and well-positioned for success. Our dedication to robust financial and risk management strategies ensures that we continue to thrive in the ever-evolving construction industry. As we move forward, we remain optimistic about the future and look forward to seizing new opportunities for growth and innovation.

Principal risks and uncertainties

The directors consider the rising costs, inflation, and the increase in gas prices, which could impact the company's cash flow. The ongoing materials shortage is another risk being addressed by actively maintaining and diversifying the supply chain to prevent any construction project delays.

 

Amidst uncertainties in the market, including global economic conditions and geopolitical dynamics, the company remains vigilant and adaptable. By regularly reviewing strategies and prioritising financial prudence, the company aims to navigate challenges and seize growth opportunities.

Key performance indicators

The review of turnover and profit margins are the company's key performance indicators. The turnover for the year ended 31st December 2023 was £43,333,915 (2022: £24,805,344). The operating profit margin for the year ended 31st December 2023 was 4.8% (2022: 10.9%). This decline in operating margin is primarily due to increased refurbishment expenses and a significant rise in overhead costs, particularly wages and salaries, as the business expanded considerably in 2023.

On behalf of the board

Mr O Al-Najafi
Director
19 September 2024
INFINITY CONSTRUCTION ENTERPRISE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company is the construction of domestic buildings.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £135,000 (2022: £1,700,000). The director does not recommend payment of a further dividend.

Director

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

Mr O Al-Najafi
Mr Z Al-Najafi
(Resigned 16 June 2023)
Mr A Al-Najafi
(Resigned 16 June 2023)
Financial instruments
Liquidity risk

The company manages its cash ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Credit risk

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

 

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

Financial risk management

The company's current policy concerning the payment of trade creditors is to:

General risks

The events after the year end have encompassed the effects of escalating inflation followed by interest rate hikes by the Bank of England. This scenario has given rise to a tightening of the cost of living and an elevated risk of recession. The surge in inflation has exerted pressure on customers and suppliers, who are already grappling with budget constraints due to cost inflation. Additionally, the construction industry has directly encountered disruptions in the availability and pricing of raw materials and finished goods, potentially causing disturbances throughout 2024. The heightened inflation has also translated into financial strains for tenants, compounding their challenges amidst increased costs. Moreover, the student housing sector has directly felt the impact on the availability and pricing of housing supplies and related services leading to possible disruptions in 2024.

 

Management maintains a vigilant stance in monitoring these challenges and their repercussions on the business and the Directors have extensively examined these impacts on the business considering the financial market's instability and have concluded that the associated risks are likely to have minimal influence on the company's operations.

INFINITY CONSTRUCTION ENTERPRISE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Review of going concern

The company made a profit after tax for the year of £1,575,234 (2022: £2,031,284) and has net assets of £2,141,420 (2022: £701,186). The group made a profit after tax for the year of £3,950,885 (2022: £2,425,366) and has net assets of of £6,850,817 (2022: £3,853,125). The directors therefore have no doubt over the company's ability to continue as a going concern for the foreseeable future. In coming to their conclusion, the Directors have considered the group's profit for the year and cash flow plans for the coming period.

 

The company has undertaken a going concern assessment considering the principal risks and current and projected financial position over the going concern period of 12 months from the date of sign-off. The Directors are therefore able to conclude that they have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the next 12 months and have accordingly prepared the financial statements on the going concern basis.

Future developments

We are currently working on a range of exciting projects located across the UK. Having recently handed over several successful projects, we additionally have a healthy pipeline of upcoming projects in the near future which amount to an additional 691 apartments to be built in 2023 to 2024.

Auditor

BDO LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Statement of disclosure to auditor

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

On behalf of the board
Mr O Al-Najafi
Director
19 September 2024
INFINITY CONSTRUCTION ENTERPRISE LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards) and applicable law. Under company law the director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

INFINITY CONSTRUCTION ENTERPRISE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INFINITY CONSTRUCTION ENTERPRISE LIMITED
- 5 -
Opinion

In our opinion the financial statements:

 

We have audited the financial statements of Infinity Construction Enterprise Limited (“the Company”) for the year ended 31 December 2023 which comprise Statement of comprehensive income, Statement of financial position, Statement of changes in equity and notes to the financial statements, including material accounting policy information. 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).

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

 

Independence

 

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.

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 Director with respect to going concern are described in the relevant sections of this report.

Other information

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

 

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.

INFINITY CONSTRUCTION ENTERPRISE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INFINITY CONSTRUCTION ENTERPRISE LIMITED
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

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 director's report.

 

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

Responsibilities of director

As explained more fully in the Responsibilities of the Director, the Director is 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 Director determines 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 Director is 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 Director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

 

Extent to which the audit was capable of detecting irregularities, including fraud

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

Non-compliance with laws and regulations

 

Based on:

 

We considered the significant laws and regulations to be the applicable accounting framework and UK tax legislation.

INFINITY CONSTRUCTION ENTERPRISE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INFINITY CONSTRUCTION ENTERPRISE LIMITED
- 7 -

Auditor’s responsibilities for the audit of the financial statements (continued)

 

The Company is also subject to laws and regulations where the consequence of non-compliance could have a material effect on the amount or disclosures in the financial statements, for example through the imposition of fines or litigations. We identified such laws and regulations to be the health and safety legislation and the data protection act.

 

Our procedures in respect of the above included:

 

Fraud

 

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

 

Based on our risk assessment, we considered the areas most susceptible to fraud to be journals and revenue.

 

Our procedures in respect of the above included:

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

INFINITY CONSTRUCTION ENTERPRISE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INFINITY CONSTRUCTION ENTERPRISE LIMITED
- 8 -

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.

Hamid Ghafoor (Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
Manchester, UK
19 September 2024
BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127)
INFINITY CONSTRUCTION ENTERPRISE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
43,333,915
24,805,344
Cost of sales
(41,259,391)
(22,111,774)
Gross profit
2,074,524
2,693,570
Administrative expenses
(266,412)
(234,775)
Operating profit
4
1,808,112
2,458,795
Interest receivable and similar income
8
175,910
44,190
Profit before taxation
1,984,022
2,502,985
Tax on profit
9
(408,788)
(471,701)
Profit for the financial year
1,575,234
2,031,284

The income statement has been prepared on the basis that all operations are continuing operations.

The notes on pages 12 to 21 form part of these financial statements.

INFINITY CONSTRUCTION ENTERPRISE LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
327
-
0
Current assets
Debtors falling due after more than one year
12
828,000
-
0
Debtors falling due within one year
12
5,335,924
7,435,391
Investments
13
-
0
3,000,000
Cash at banks
2,991,424
10,569,697
9,155,348
21,005,088
Creditors: amounts falling due within one year
14
(7,014,255)
(20,303,902)
Net current assets
2,141,093
701,186
Net assets
2,141,420
701,186
Capital and reserves
Called up share capital
15
1,000
1,000
Profit and loss reserves
2,140,420
700,186
Total equity
2,141,420
701,186

The notes on pages 12 to 21 form part of these financial statements.

The financial statements were approved by the board of directors and authorised for issue on 19 September 2024 and are signed on its behalf by:
Mr O Al-Najafi
Director
Company Registration No. 13274162
INFINITY CONSTRUCTION ENTERPRISE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
1,000
368,902
369,902
Year ended 31 December 2022:
Profit and total comprehensive income
-
2,031,284
2,031,284
Dividends
10
-
(1,700,000)
(1,700,000)
Balance at 31 December 2022
1,000
700,186
701,186
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,575,234
1,575,234
Dividends
10
-
(135,000)
(135,000)
Balance at 31 December 2023
1,000
2,140,420
2,141,420

The notes on pages 12 to 21 form part of these financial statements.

INFINITY CONSTRUCTION ENTERPRISE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
1
Accounting policies
Company information

Infinity Construction Enterprise Limited is a private company limited by shares incorporated in England and Wales. The registered office is 6 Blenheim Terrace, Leeds, West Yorkshire, United Kingdom, LS2 9HZ.

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”), including Section 1A Small Entities, 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:

 

 

This information is included in the consolidated financial statements of YPP Holdings Limited as at 31st December 2023 and these financial statements may be obtained from 6 Blenheim Terrace, Leeds, England, LS2 9HZ.

1.2
Business combinations

The financial statements of the company are consolidated in the financial statements of YPP Holdings Limited. These consolidated financial statements are available from its registered office, 6 Blenheim Terrace, Leeds, United Kingdom, LS2 9HZ.

1.3
Going concern

The company made a profit after tax for the year of £1,575,234 (2022: £2,031,284) and has net assets of £2,141,420 (2022: £701,186). The group made a profit after tax for the year of £3,950,885 (2022: £2,425,366) and has net assets of of £6,850,817 (2022: £3,853,125). The directors therefore have no doubt over the company's ability to continue as a going concern for the foreseeable future. In coming to their conclusion, the Directors have considered the group's profit for the year and cash flow plans for the coming period.true

 

The company has undertaken a going concern assessment considering the principal risks and current and projected financial position over the going concern period of 12 months from the date of sign-off. The Directors are therefore able to conclude that they have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the next 12 months and have accordingly prepared the financial statements on the going concern basis.

INFINITY CONSTRUCTION ENTERPRISE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.4
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

 

Revenue from construction and refurbishment projects is recognised by reference to the stage of completion when the stage of completion, costs incurred and cost to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.

 

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When it is probable that the total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

1.5
Tangible fixed assets

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

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

Computers
33% reducing balance

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

1.6
Impairment of fixed assets

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

 

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

INFINITY CONSTRUCTION ENTERPRISE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less. Interest income on short-term liquid investments is recognised in the profit or loss in the period in which the income is received.

1.8
Financial instruments

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

 

Financial instruments are recognised in the 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

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

Impairment of financial assets

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

 

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

 

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

INFINITY CONSTRUCTION ENTERPRISE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

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

1.10
Taxation

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

Current tax

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

1.11
Employee benefits

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

 

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

 

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

INFINITY CONSTRUCTION ENTERPRISE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.12
Retirement benefits

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

1.13
Leases

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

1.14
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

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

 

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

 

In preparing these financial statements, the directors have had to make the following judgement:

 

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Refurbishment income
43,333,915
24,805,344
2023
2022
£
£
Turnover analysed by geographical market
UK
43,333,915
24,805,344
2023
2022
£
£
Other revenue
Interest income
175,910
44,190
INFINITY CONSTRUCTION ENTERPRISE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements as borne by the group
18,750
42,000
Depreciation of tangible fixed assets
142
-
Operating lease charges
7,685
554
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor as borne by the group:
£
£
For audit services
Audit of the financial statements of the company
18,750
42,000
6
Employees

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

2023
2022
Number
Number
2
4

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
134,322
81,235
Social security costs
11,201
8,823
Pension costs
1,004
563
146,527
90,621

Included in the amounts above are recharge costs from YPP Lettings & Management Company Limited of £53,136 (2022: £32,697) for 9 employees (2022: 9). The recharges relate to the finance team who work across the group.

7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
12,570
-
0
INFINITY CONSTRUCTION ENTERPRISE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
175,910
44,190
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
10,593
2
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
408,788
471,701

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
1,984,022
2,502,985
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
466,642
475,567
Tax effect of expenses that are not deductible in determining taxable profit
161
-
0
Group relief
(57,940)
(3,866)
Permanent capital allowances in excess of depreciation
(75)
-
0
Taxation charge for the year
408,788
471,701
10
Dividends
2023
2022
£
£
Final paid
135,000
1,700,000
INFINITY CONSTRUCTION ENTERPRISE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
11
Tangible fixed assets
Computers
£
Cost
At 1 January 2023
-
0
Additions
469
At 31 December 2023
469
Depreciation
At 1 January 2023
-
0
Depreciation charged in the year
142
At 31 December 2023
142
Carrying amount
At 31 December 2023
327
At 31 December 2022
-
0
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,597,254
7,207,091
Corporation tax recoverable
-
0
76,361
Amounts owed by group undertakings
36,528
41,000
Other debtors
1,278,713
-
0
Prepayments and accrued income
2,423,429
110,939
5,335,924
7,435,391
2023
2022
Amounts falling due after more than one year:
£
£
Other debtors
828,000
-
0
Total debtors
6,163,924
7,435,391

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

 

Included within 'Other debtors' is a balance owed to a related party. This balance has been referred to in note 16.

 

INFINITY CONSTRUCTION ENTERPRISE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 20 -
13
Current asset investments
2023
2022
£
£
Short term deposits
-
0
3,000,000
14
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
926,065
273,297
Amounts owed to group undertakings
435,407
477,532
Corporation tax
408,788
471,701
Other taxation and social security
93,480
455,103
Other creditors
6,138
-
0
Accruals
361,250
54,000
Deferred income
4,783,127
18,572,269
7,014,255
20,303,902

Amounts owed to Group undertakings are unsecured, repayable on demand and interest free.

15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
1,000 Ordinary shares of £1 each
1,000
1,000
1,000
1,000
16
Related party transactions

As 100% of the voting rights of the Company are controlled within the group headed by YPP Holdings Limited the Company has taken advantage of the exemption contained in section 1AC.35 of FRS 102 and has therefore not disclosed transactions or balances with entities which form part of the Group.

 

Infinity Construction Enterprise Limited, MAAN Investments Limited, and MAAN Enterprises Limited are all controlled by the Al-Najafi family.

As at 31 December 2023, £2,078,000 (2022: £nil) was due from MAAN Investments Limited. The balance is included in 'Other debtors' in note 12.

 

During the year the company paid £4,206,969 (2022: £3,600,644) to MAAN Enterprises Limited in introducer fees as per the agreement.

 

Other transactions between the Company and its related parties are disclosed below. Related parties are those entities which are controlled or jointly controlled by MAAN including those entities where the Al- Najafi family have significant influence.

INFINITY CONSTRUCTION ENTERPRISE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
16
Related party transactions
(Continued)
- 21 -
Turnover and costs
The company entered into the following transactions with related parties who are not members of the Group:
2023
2022
Turnover
Cost
Turnover
Cost
£
£
£
£
Alphabet Enterprises Limited (Jersey No. 125831)
2,143,826
-
0
-
0
-
0
Black Caviar Property Limited (Jersey No. 118885)
6,480,410
38,789
9,018,863
-
0
Crescent Enterprises Limited (Jersey No. 126057)
-
0
-
0
2,724,964
-
0
Goodwood Estates Limited (Jersey No. 125297)
679,350
34,088
6,719,521
-
0
Rose Gold Estates Limited (Jersey No. 117299)
9,310
-
0
518,967
-
0
Signature Black Holdings Limited (Jersey No. 127077)
12,558
-
0
-
0
-
0
St Albans Estates Limited (Jersey No. 127223)
21,223
-
0
-
0
-
0
Amounts due from/to related parties
The company had the following balances, outstanding at year end with related parties who are not members of the Group:
Amounts owed by
related parties
2023
2022
£
£
Black Caviar Property Limited (Jersey No. 118885)
-
0
693,750
Goodwood Estates Limited (Jersey No. 125297)
772,718
5,706,540
Rose Gold Estates Limited (Jersey No. 117299)
-
0
806,801

All sales and other transactions were conducted on normal trading terms to the related parties.

 

Key management personnel are considered to be the directors.

17
Parent and ultimate controlling party

The immediate parent undertaking is YPP Holdings Limited, a company registered in England and Wales. The registered office of YPP Holdings Limited is 6 Blenheim Terrace, Leeds, West Yorkshire, LS2 9HZ. The group in which the results are consolidated is that headed by YPP Holdings Limited. Copies of the YPP Holdings Limited consolidated financial statements can be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

 

The ultimate controlling party of YPP Holdings Limited is the Al Najafi family.

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