Company registration number 07404543 (England and Wales)
INSPECTION VERIFICATION BUREAU LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
INSPECTION VERIFICATION BUREAU LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 8
INSPECTION VERIFICATION BUREAU LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
31 December 2023
31 October 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
15,030
6,436
Current assets
Stocks
11,431
11,803
Debtors
5
261,052
363,532
Cash at bank and in hand
281,573
105,947
554,056
481,282
Creditors: amounts falling due within one year
6
(106,267)
(114,746)
Net current assets
447,789
366,536
Total assets less current liabilities
462,819
372,972
Provisions for liabilities
(1,222)
Net assets
462,819
371,750
Capital and reserves
Called up share capital
2,000
2,000
Capital redemption reserve
1,000
1,000
Profit and loss reserves
459,819
368,750
Total equity
462,819
371,750
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
Mr Gareth Book
Mr Matthew Chapman
Director
Director
Company Registration No. 07404543
INSPECTION VERIFICATION BUREAU LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information
Inspection Verification Bureau Limited is a private company limited by shares incorporated in England and Wales. The registered office is Friars Gate (Third Floor), 1011 Stratford Road, Shirley, Solihull, West Midlands, United Kingdom, B90 4BN.
1.1
Reporting period
The reporting period has been extended from the 31 October 2023 to 31 December 2023 which covers a 14 month reporting period. This was due to a group restructure during the period to align all financial year ends, therefore the figures are not entirely comparable to the prior year.
1.2
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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.
1.3
Going concern
On 1 January 2024, the trade and assets of the company were hived up to the parent company. On this basis management have concluded that the company is not a going concern. true
As a result, these financial statements are prepared on a basis other than going concern. The financial statements reflect the transactions, event and conditions which have arisen up to, and exist as at, the balance sheet date. This basis includes, where applicable, writing down the company's assets to their recoverable amounts. No provision has been made for the future costs of terminating the business unless such costs were committed at the reporting date.
The directors have a reasonable expectation that the company will not continue in operational existence for the foreseeable future, due to the company trade and assets being hived up to TUV Rheinland UK Limited.
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 contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, 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 it is probable will be recovered.
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.
INSPECTION VERIFICATION BUREAU LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -
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% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is 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.
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
Stocks
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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 balance sheet 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.
INSPECTION VERIFICATION BUREAU LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
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.
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, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
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.
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 profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
INSPECTION VERIFICATION BUREAU LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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.
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.
2
Going Concern
On 1 January 2024, the trade and assets of the company were hived up to the parent company. On this basis management have concluded that the company is not a going concern.
As a result, these financial statements are prepared on a basis other than going concern. The financial statements reflect the transactions, event and conditions which have arisen up to, and exist as at, the balance sheet date. This basis includes, where applicable, writing down the company's assets to their recoverable amounts. No provision has been made for the future costs of terminating the business unless such costs were committed at the reporting date.
The directors have a reasonable expectation that the company will not continue in operational existence for the foreseeable future, due to the company trade and assets being hived up to TUV Rheinland UK Limited.
3
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2023
2022
Number
Number
Total
7
7
INSPECTION VERIFICATION BUREAU LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 6 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 November 2022
35,902
Additions
13,693
At 31 December 2023
49,595
Depreciation and impairment
At 1 November 2022
29,466
Depreciation charged in the Period
5,099
At 31 December 2023
34,565
Carrying amount
At 31 December 2023
15,030
At 31 October 2022
6,436
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
225,346
345,588
Other debtors
24,440
17,944
249,786
363,532
2023
2022
Amounts falling due after more than one year:
£
£
Deferred tax asset
11,266
Total debtors
261,052
363,532
INSPECTION VERIFICATION BUREAU LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 7 -
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
5,927
Trade creditors
55,037
72,342
Corporation tax
4,264
1,075
Other taxation and social security
14,337
12,399
Other creditors
32,629
23,003
106,267
114,746
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
We draw attention to notes 1.3, 2 and 7 in the financial statements. These notes refer to the group restructuring that has been instigated since the year end. The trade and assets of this company have been hived up to TUV Rheinland UK Limited. The company then ceased all operations on 1 January 2024 and the financial statements have been prepared on a basis other than going concern basis. This basis includes, where applicable, writing down the company's assets to their recoverable amounts. No provision has been made for the future costs of terminating the buininess unless such costs were committed.
Our opinion is not modified in respect of this matter.
Senior Statutory Auditor:
Lee Meredith BFP ACA
Statutory Auditor:
Azets Audit Services
8
Events after the reporting date
Events that have occurred since the balance sheet date which are relevant to facilitate the understanding of the accounts and the future plans of the business are as follows:
After the year end the parent company undertook a group reorganisation and restructuring. As part of this Inspection Verification Bureau Limited has been hived up and included within TUV Rheinland UK Limited. The impact of this will have operational and financial implications to Inspection Verification Bureau Limited. As a result of this Inspection Verfification Bureau Limited will cease its operations and will not continue.
INSPECTION VERIFICATION BUREAU LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 8 -
9
Parent company
The immediate parent company is TUV Rheinland UK Limited, a company incorporated in the United Kingdom.
The company which heads up the smallest and largest group of undertakings for which group financial statements are drawn up is TUV Rheinland AG, a company incorporated on Germany.
The ultimate parent undertaking and ultimate controlling party is TUV Rheinland Berlin Brandenburg Pfalz e.V, an unincorporated body.
The financial statements of TUV Rheinland AG, the operational holding company, can be obtained from TUV International GmbH, Am Grauen Stein, D-51105, Cologne, Germany.