REGISTERED NUMBER: 10791647 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements For The Year Ended 31 December 2023 |
for |
I-MEX (M&E) Holdings Limited |
REGISTERED NUMBER: 10791647 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements For The Year Ended 31 December 2023 |
for |
I-MEX (M&E) Holdings Limited |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Contents of the Consolidated Financial Statements |
For The Year Ended 31 December 2023 |
Page |
Company information | 1 |
Group strategic report | 2 |
Report of the directors | 4 |
Report of the independent auditor | 6 |
Consolidated income statement | 9 |
Consolidated balance sheet | 10 |
Company balance sheet | 11 |
Consolidated statement of changes in equity | 12 |
Company statement of changes in equity | 13 |
Consolidated cash flow statement | 14 |
Notes to the consolidated financial statements | 15 |
I-MEX (M&E) Holdings Limited |
Company Information |
For The Year Ended 31 December 2023 |
Directors: |
Registered office: |
Registered number: |
Auditor: |
Market House |
10 Market Walk |
Saffron Walden |
Essex |
CB10 1JZ |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Group Strategic Report |
For The Year Ended 31 December 2023 |
The directors present their strategic report of the company and the group for the year ended 31 December 2023. |
Review of business |
The group's turnover in 2023 was approximately £20.9m (2022 - £19.4m). |
The group made a pre-tax profit of approximately £0.9m (2022 - £1.8m). The reduction in profit is attributable to a reduction in gross margin and increased costs in 2023 as the group continues to invest in new staff members and in 2023 there was a full year's costs for the pre-construction team employed at the back end of 2022. |
The group made a profit after taxation of £0.7m (2022 - £1.5m). The majority of the construction work undertaken by the group consists of residential contracts with project sizes typically in excess of £5m. The group achieved a gross margin on these contracts of 12.0% in 2023 (2022 - 14.8%). In a difficult trading year with a high level of construction cost inflation the group is satisfied with the gross margin achieved in the year. |
It is important to the group to achieve its growth plans is its ability to attract and retain the services of the highest quality employees. In the year 90% of employees services were retained (2022 - 87.5%). |
Principal risks and uncertainties |
The principal risks from the group's activities arise from: |
Commercial relationship risk |
The group has developed close commercial relationships with several main contractors and suppliers to enable it to maintain the highest of standards and service delivery on its construction contracts.The loss of any of these key main contractors or suppliers could have a detrimental effect on the group's financial performance and results. The group mitigates this risk through developing close working relationships with its key working contractors and suppliers with open and transparent communications at all times and through the development of the workforce through training and development. |
Competitor risk |
The group operates in a very competitive area of the construction industry. The group works on having the highest level of service delivery at all times and aims to be considered as best in class by its customers to minifies the potential loss of customers to competitors. |
Liquidation and regulation risk |
The group has to consider a number of laws, regulations and standards that impact on its day to day operations - if the group does not comply with any of these then it risks damage to its reputation and future ability to trade The group has put in place high levels of quality control procedures and checks to mitigate this risk. |
Credit risk |
The group provides its services primarily to main contractors in the construction industry. The failure of one or more of these main contractors to pay the amounts it owes to the group for services rendered would potentially cause the group cashflow and working capital problems. The group manages this risk by way of a range of measures including credit control procedures, credit insurance (when available), regular communication with the main contractors. |
Going concern risk |
The group is potentially at risk if a main contractor does not pay its debts or contract cost price increases make its contracts unprofitable. All of the group's construction contracts are set up on monthly invoicing and unpaid amounts will result in the contracts being put on stop until payments have caught up. The group has extensive costs control procedures in place to constantly monitor contract costs and to ensure best prices are achieved at all times. |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Group Strategic Report |
For The Year Ended 31 December 2023 |
Financial key performance indicators |
The directors monitor the performance of the group by reference to the following key performance indicators: |
Contract value |
The group only takes on contracts that it has assessed as potentially profitable, including a reasonable margin for cost variations. Contract costs are closely monitored to ensure that contracts are delivered in a cost effective manner. |
Gross margin |
Contract reconciliations are performed on a monthly basis and gross margins are assessed on a month by month basis for each contract and remedial action taken, if possible, to ensure predicted margins are maintained. |
Health & safety |
The directors monitor health and safety on a monthly basis and the company audits this each month by use of an external specialist on a site by site basis. |
Future contract pipeline |
It is important that the group has a pipeline of potential and secured new work and that it is regularly tendering for new work. The group has invested heavily in its pre-construction team over the past 18 months or so to ensure that all opportunities are adequately assessed and those selected for tender are presented to main contractors in a manner and style that gives the group its best chance of having a successful tender. |
On behalf of the board: |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Report of the Directors |
For The Year Ended 31 December 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023. |
Principal activity |
The principal activity of the group in the year under review was that of a holding company with property investments |
Dividends |
Interim dividends per share were paid as follows: |
£ |
A ordinary shares | 404.32 |
B ordinary shares | 455.17 |
C ordinary shares | 604.32 |
The directors recommend that no final dividends are paid. |
The total distribution of dividends for the year ended 31 December 2023 will be £456,4245. |
Future developments |
There have been no significant post balance sheet events to note. |
Directors |
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report. |
Strategic report |
In accordance with section 414c (ii) of the Companies Act 2006 and included in the Strategic Report is the review of the business, principal risks and uncertainties and key performance indicators. This information would have been required by schedule 7 of the "Large and Medium sized Companies and Group (accounts and Reports) Regulations 2008" to be contained in the Directors’ report. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group strategic report, the Report of the directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditor is unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditor is aware of that information. |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Report of the Directors |
For The Year Ended 31 December 2023 |
Auditor |
The auditors, MRT Accountants Limited - Chartered Accountants, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditor to the Members of |
I-MEX (M&E) Holdings Limited |
Opinion |
We have audited the financial statements of I-MEX (M&E) Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the consolidated income statement, the consolidated balance sheet, the company balance sheet, the consolidated statement of changes in equity, the company statement of changes in equity, the consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- give a true and fair view of the state of the group's and the parent company's affairs as at 31 December 2023 and of the group's profit for the year then ended; |
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of our audit: |
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. |
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: |
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- the parent company financial statements are not in agreement with the accounting records and returns; or |
- certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. |
Report of the Independent Auditor to the Members of |
I-MEX (M&E) Holdings Limited |
Responsibilities of directors |
As explained more fully in the directors' responsibilities statement, 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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or has 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. |
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. |
The extent to which the audit was considered capable of detecting irregularities, including fraud |
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit. |
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit. |
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with applicable laws and regulations and for the prevention and detection of fraud. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team: |
- obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework; |
- inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected, or alleged instances of fraud; and |
- discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud. |
As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements to be: |
- FRS102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice); and |
- The Companies Act 2006. |
In addition, the group is subject to other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to its ability to operate or to avoid a material penalty. These are primarily related to health and safety legislation, most notably the Health and Safety at Work etc. Act 1974. |
The audit engagement team identified the risk of management override or controls, revenue recognition and the valuation of long-term contract balances as the areas where the financial statements were most susceptible to material misstatement due to fraud. |
Report of the Independent Auditor to the Members of |
I-MEX (M&E) Holdings Limited |
Based on the results of our risk assessment, we designed audit procedures to identify fraud or non-compliance with such laws and regulations identified above. The relevant audit procedures performed included but were not limited to: |
- undertaking detailed review of the completeness and accuracy of disclosures; |
- auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business; |
- review of estimates and the appropriateness of their basis as well as consideration of any indicated irregularities or management bias; |
- testing the recognition of a sample of revenue items with reference to the relevant supporting documentation; |
- undertaking a detailed review of contract balances, including testing to contract documentation and testing the allocation of costs to contracts, to ensure that balances reflect an appropriate stage of contract completion and associated profit recognition; and |
- review of reports and correspondence with relevant authorities and discussion with the company's management regarding policies and procedures for compliance with laws and regulations with specific consideration of matters associated with relevant health and safety legislation. |
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. |
Other matter - prior year financial statements unaudited |
The group was not required to have a statutory audit for the year ended 31 December 2022 as it was entitled to exemption by the provision of the Companies Act 2006 relating to the audit of financial statements by virtue of Section 477 and no member or members requested an audit pursuant to Section 476 of the Act. Accordingly, the corresponding figures for the year ended 31 December 2022 are unaudited. |
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. |
James |
for and on behalf of MRT Accountants Limited - Chartered Accountants |
Market House |
10 Market Walk |
Saffron Walden |
Essex |
CB10 1JZ |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Consolidated |
Income Statement |
For The Year Ended 31 December 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
Turnover | 3 | 20,908,927 | 19,376,470 |
Cost of sales | 18,408,544 | 16,509,528 |
Gross profit | 2,500,383 | 2,866,942 |
Administrative expenses | 1,668,434 | 1,148,407 |
831,949 | 1,718,535 |
Other operating income | 115,391 | 62,784 |
Operating profit | 5 | 947,340 | 1,781,319 |
Interest receivable and similar income | 26,412 | 1,095 |
973,752 | 1,782,414 |
Gain/loss on revaluation of investments | (55,000 | ) | 52,440 |
918,752 | 1,834,854 |
Interest payable and similar expenses | 6 | 683 | 3,970 |
Profit before taxation | 918,069 | 1,830,884 |
Tax on profit | 7 | 248,243 | 329,867 |
Profit for the financial year |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Consolidated Balance Sheet |
31 December 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 11 | 498,609 | 585,487 |
Investments | 12 | - | - |
Investment property | 13 | 770,000 | 825,000 |
1,268,609 | 1,410,487 |
Current assets |
Debtors | 14 | 4,558,591 | 4,903,179 |
Cash at bank | 2,709,092 | 2,946,640 |
7,267,683 | 7,849,819 |
Creditors |
Amounts falling due within one year | 15 | 4,817,065 | 5,861,773 |
Net current assets | 2,450,618 | 1,988,046 |
Total assets less current liabilities | 3,719,227 | 3,398,533 |
Creditors |
Amounts falling due after more than one year | 16 | (538,000 | ) | (432,972 | ) |
Provisions for liabilities | 18 | (28,119 | ) | (25,854 | ) |
Net assets | 3,153,108 | 2,939,707 |
Capital and reserves |
Called up share capital | 19 | 1,000 | 1,000 |
Merger reserve | 39,824 | 39,824 |
Capital redemption reserve | 176 | 176 |
Retained earnings | 3,112,108 | 2,898,707 |
Shareholders' funds | 3,153,108 | 2,939,707 |
The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by: |
P J Smailes - Director |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Company Balance Sheet |
31 December 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 11 |
Investments | 12 |
Investment property | 13 |
Current assets |
Debtors | 14 |
Cash at bank |
Creditors |
Amounts falling due within one year | 15 |
Net current liabilities | ( | ) | ( | ) |
Total assets less current liabilities |
Provisions for liabilities | 18 |
Net assets |
Capital and reserves |
Called up share capital | 19 |
Capital redemption reserve |
Retained earnings |
Shareholders' funds |
Company's profit for the financial year | 398,848 | 493,287 |
The financial statements were approved by the Board of Directors and authorised for issue on |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Consolidated Statement of Changes in Equity |
For The Year Ended 31 December 2023 |
Called up | Capital |
share | Retained | Merger | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 January 2022 | 1,000 | 1,825,850 | 39,824 | 176 | 1,866,850 |
Changes in equity |
Dividends | - | (428,160 | ) | - | - | (428,160 | ) |
Total comprehensive income | - | 1,501,017 | - | - | 1,501,017 |
Balance at 31 December 2022 | 1,000 | 2,898,707 | 39,824 | 176 | 2,939,707 |
Changes in equity |
Dividends | - | (456,425 | ) | - | - | (456,425 | ) |
Total comprehensive income | - | 669,826 | - | - | 669,826 |
Balance at 31 December 2023 | 1,000 | 3,112,108 | 39,824 | 176 | 3,153,108 |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Company Statement of Changes in Equity |
For The Year Ended 31 December 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 January 2022 |
Changes in equity |
Dividends | - | ( | ) | - | ( | ) |
Total comprehensive income | - |
Balance at 31 December 2022 |
Changes in equity |
Dividends | - | ( | ) | - | ( | ) |
Total comprehensive income | - |
Balance at 31 December 2023 |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Consolidated Cash Flow Statement |
For The Year Ended 31 December 2023 |
2023 | 2022 |
as restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 21 | 570,916 | 1,179,391 |
Interest paid | (683 | ) | (3,970 | ) |
Tax paid | (276,442 | ) | (219,716 | ) |
Net cash from operating activities | 293,791 | 955,705 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (41,295 | ) | (474,969 | ) |
Sale of tangible fixed assets | 9,750 | 250 |
Interest received | 26,412 | 1,095 |
Net cash from investing activities | (5,133 | ) | (473,624 | ) |
Cash flows from financing activities |
Capital repayments in year | (3,771 | ) | (4,452 | ) |
Amount introduced by directors | - | 103,978 |
Amount withdrawn by directors | (66,010 | ) | - |
Equity dividends paid | (456,425 | ) | (428,160 | ) |
Net cash from financing activities | (526,206 | ) | (328,634 | ) |
(Decrease)/increase in cash and cash equivalents | (237,548 | ) | 153,447 |
Cash and cash equivalents at beginning of year | 22 | 2,946,640 | 2,793,193 |
Cash and cash equivalents at end of year | 22 | 2,709,092 | 2,946,640 |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Notes to the Consolidated Financial Statements |
For The Year Ended 31 December 2023 |
1. | Statutory information |
I-MEX (M&E) Holdings Limited is a |
2. | Accounting policies |
Basis of preparation of financial statements |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies. |
The financial statements are presented in pounds sterling, which is the functional currency, rounded to the nearest £. |
Basis of consolidation |
The consolidated financial statements present the results of the Company and its subsidiary ("the Group") as if they form a single entity. Intercompany transactions, balances and unrealised gains on transactions between group companies are therefore eliminated in full on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferrer. |
The consolidated financial statements incorporate the results of business combinations using the merger method. The results of subsidiaries in the financial statements from the earlier of the date that economic benefit is obtained or control commences until the date it ceases. All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group. |
The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. |
Significant judgements and estimates |
In applying the Group's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to inherent uncertainty involved in making such judgements, estimates and assumptions, the actual amounts and outcomes may differ. |
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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods. |
The key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are set out below. |
The Group uses a percentage of completion method to recognise revenue and profit on long term contracts. The method requires the directors to estimate the level of services performed at each reporting date as a proportion of the total services to be performed to complete the contract. Variations to estimates could result in the over or under recognition of revenue and profit. |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 December 2023 |
2. | Accounting policies - continued |
Turnover |
Turnover comprises revenue recognised in respect of goods and services supplied during the year, exclusive of VAT and trade discounts. |
Turnover includes the value of short and long term construction contracts carried out during the year. Invoices for short term contracts are raised as the work commences, typically on a monthly basis, and turnover is recognised accordingly. Turnover for long term contracts is measured as costs incurred to their stage of completion plus attributable profit. The amount of profit attributable to the stage of completion of each long term contract is calculated and recognised when the outcome can be foreseen with reasonable certainty. Provision is made for any losses which are forseen. |
For customer retentions, where cash inflows are deferred and effectively 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. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Financial instruments |
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares. |
Debt instruments (other than those wholly repayable or receivable within one year), including loans, retentions and other accounts receivable and payable, are initially valued at present value of the future cash flows and subsequently at amortised costs using the effective interest rate. Debt instruments that are payable or receivable within one year, typically debtors and creditors, 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 defrerred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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. |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 December 2023 |
2. | Accounting policies - continued |
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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Going concern |
The directors have reviewed the financial position of the Group and conclude that it is appropriate to prepare these consolidated financial statements on a going concern basis. The directors believe that there are no material uncertainties related to events or conditions that may cast significant doubt about the ability of the Group to continue as a going concern. |
Financial instruments |
Financial instruments are classified and accounted for according to the substance of the contractual arrangement as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. |
Financial assets, which include retentions, amounts recoverable on contracts, trade and other debtors and amounts owed by group undertakings, 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 financial asset is measured at the present value of the future receipts discounted at a market rate of interest. |
Dividends |
Dividends are recognised as liabilities once they are no longer at the discretion of the Group. |
Pension contributions |
The group operates a Defined Contribution pension scheme and this is open to the group's directors and employees to join the scheme. The contributions paid into this scheme are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in other creditors on the balance sheet. |
Contributions are also made on an ad hoc basis into to a Small Self Administered Scheme known as the "Smailes Family SSAS" and these contributions are charged against profits in the accounting period in which they are paid. |
The assets of all pension schemes are held separately from the group in independently administered funds. |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 December 2023 |
3. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
as restated |
£ | £ |
Construction contracting | 20,908,927 | 19,376,470 |
20,908,927 | 19,376,470 |
An analysis of turnover by geographical market is given below: |
2023 | 2022 |
as restated |
£ | £ |
United Kingdom | 20,908,927 | 19,376,470 |
20,908,927 | 19,376,470 |
4. | Employees and directors |
2023 | 2022 |
as restated |
£ | £ |
Wages and salaries | 2,091,495 | 2,028,287 |
Social security costs | 73,916 | 46,705 |
Other pension costs | 213,122 | 30,545 |
2,378,533 | 2,105,537 |
The average number of employees during the year was as follows: |
2023 | 2022 |
as restated |
Administration | 3 | 3 |
Contract management and support | 11 | 9 |
Site and fabrication | 25 | 28 |
2023 | 2022 |
as restated |
£ | £ |
Directors' remuneration | 61,278 | 61,278 |
Directors' pension contributions to money purchase schemes | 200,000 | 15,000 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 December 2023 |
5. | Operating profit |
The operating profit is stated after charging: |
2023 | 2022 |
as restated |
£ | £ |
Other operating leases | 43,698 | 47,537 |
Depreciation - owned assets | 106,954 | 132,798 |
Depreciation - assets on hire purchase contracts | 5,248 | 6,561 |
Loss on disposal of fixed assets | 6,221 | 858 |
Auditors' remuneration | 34,000 | - |
6. | Interest payable and similar expenses |
2023 | 2022 |
as restated |
£ | £ |
Bank loan interest | - | 3,970 |
HP interest | 683 | - |
683 | 3,970 |
7. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
as restated |
£ | £ |
Current tax: |
UK corporation tax | 245,978 | 316,382 |
Deferred tax | 2,265 | 13,485 |
Tax on profit | 248,243 | 329,867 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
as restated |
£ | £ |
Profit before tax | 918,069 | 1,830,884 |
Profit multiplied by the standard rate of corporation tax in the UK of 23.500 % (2022 - 19 %) | 215,746 | 347,868 |
Effects of: |
Expenses not deductible for tax purposes | 604 | 1,056 |
Capital allowances in excess of depreciation | - | (33,547 | ) |
Depreciation in excess of capital allowances | 18,001 | - |
Adjustments to tax charge in respect of previous periods | 1,663 | 14,490 |
Deferred tax included | 12,229 | - |
Total tax charge | 248,243 | 329,867 |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 December 2023 |
7. | Taxation - continued |
The tax reconciliation uses a standard rate of corporation tax in the UK of 23.5%. This rate is derived from the standard rate of 19% for 3 months of Financial Year 2023 and the standard rate of 25% for 9 months of Financial Year 2024. The prior year uses a standard rate of corporation tax in the UK of 19% for the entire year |
8. | Individual income statement |
As permitted by Section 408 of the Companies Act 2006, the Income statement of the parent company is not presented as part of these financial statements. |
9. | Dividends |
2023 | 2022 |
as restated |
£ | £ |
A Ordinary shares of 1 each |
Interim | 227,231 | 212,528 |
C Ordinary shares of 1 each |
Interim | 108,330 | 100,000 |
D Ordinary shares of 1 each |
Interim | 120,864 | 115,632 |
456,425 | 428,160 |
10. | Prior year adjustment |
The group uses accounting estimates and assumptions in accounting for construction contracts and after reviewing prior year figures an error in this respect has been identified and revised amounts accounted for the prior year regarding sales and cost of sales for various contracts and to re-state the comparative figures to reflect the change as follows: |
2022 | 2021 |
£'000 | £'000 |
Increase in current assets | 302 | 1014 |
Increase in current liabilities | (190 | ) | ( 523 | ) |
|
Capital and reserves | 112 | 491 |
|
Sales | 152 | 607 |
Tax | (40 | ) | (116 | ) |
Increase in Profit | 112 | 491 |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 December 2023 |
11. | Tangible fixed assets |
Group |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Cost |
At 1 January 2023 | 507,503 | 91,249 | 65,639 |
Additions | 2,588 | - | 8,311 |
Disposals | - | - | - |
At 31 December 2023 | 510,091 | 91,249 | 73,950 |
Depreciation |
At 1 January 2023 | 50,751 | 47,612 | 16,410 |
Charge for year | 51,009 | 14,546 | 18,487 |
Eliminated on disposal | - | - | - |
At 31 December 2023 | 101,760 | 62,158 | 34,897 |
Net book value |
At 31 December 2023 | 408,331 | 29,091 | 39,053 |
At 31 December 2022 | 456,752 | 43,637 | 49,229 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Cost |
At 1 January 2023 | 111,267 | 31,900 | 807,558 |
Additions | 27,745 | 2,651 | 41,295 |
Disposals | (21,295 | ) | - | (21,295 | ) |
At 31 December 2023 | 117,717 | 34,551 | 827,558 |
Depreciation |
At 1 January 2023 | 87,182 | 20,116 | 222,071 |
Charge for year | 15,049 | 13,111 | 112,202 |
Eliminated on disposal | (5,324 | ) | - | (5,324 | ) |
At 31 December 2023 | 96,907 | 33,227 | 328,949 |
Net book value |
At 31 December 2023 | 20,810 | 1,324 | 498,609 |
At 31 December 2022 | 24,085 | 11,784 | 585,487 |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 December 2023 |
11. | Tangible fixed assets - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
Cost |
At 1 January 2023 |
and 31 December 2023 | 20,995 |
Depreciation |
At 1 January 2023 | 15,747 |
Charge for year | 5,248 |
At 31 December 2023 | 20,995 |
Net book value |
At 31 December 2023 | - |
At 31 December 2022 | 5,248 |
12. | Fixed asset investments |
Company |
Shares in |
group |
undertakings |
£ |
Cost |
At 1 January 2023 |
and 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
The group or the company's investments at the Balance sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Units 18 - 20, Risby Business Park, Newmarket Road, Risby, Suffolk, IP28 6RD |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 December 2023 |
13. | Investment property |
Group |
Total |
£ |
Fair value |
At 1 January 2023 | 825,000 |
Revaluations | (55,000 | ) |
At 31 December 2023 | 770,000 |
Net book value |
At 31 December 2023 | 770,000 |
At 31 December 2022 | 825,000 |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2021 | 772,560 |
Valuation in 2022 | 52,440 |
Valuation in 2023 | (55,000 | ) |
770,000 |
If investment properties had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
as restated |
£ | £ |
Cost | 772,560 | 772,560 |
Investment properties were valued on an open market basis on 31 December 2023 by Watsons EWS Chartered Surveyors . |
Company |
Total |
£ |
Fair value |
At 1 January 2023 |
Revaluations | (55,000 | ) |
At 31 December 2023 |
Net book value |
At 31 December 2023 |
At 31 December 2022 |
Fair value at 31 December 2023 is represented by: |
£ |
Valuation in 2021 | 772,560 |
Valuation in 2022 | 52,440 |
Valuation in 2023 | (55,000 | ) |
770,000 |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 December 2023 |
13. | Investment property - continued |
Company |
If the investment properties had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
as restated |
£ | £ |
Cost | 772,560 | 772,560 |
The investment properties were valued on an open market basis on 31 December 2023 by Watsons EWS Chartered Surveyors . |
14. | Debtors |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Amounts falling due within one year: |
Debtor retentions < 1 year | 516,986 | 769,121 |
Trade debtors | 1,207,178 | 1,061,810 | - | - |
Amounts recoverable - contract | 1,675,561 | 2,298,178 | - | - |
Amounts owed by group undertakings | - | - |
VAT | 178,411 | 101,603 |
Prepayments | 32,482 | 6,408 |
3,610,618 | 4,237,120 |
Amounts falling due after more than one year: |
Debtor retentions > 1 year | 947,973 | 666,059 |
Aggregate amounts | 4,558,591 | 4,903,179 |
15. | Creditors: amounts falling due within one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Hire purchase contracts (see note 17) | 4,082 | 7,853 |
Trade creditors | 2,348,076 | 2,824,041 |
Contract advances | 531,488 | 843,039 | - | - |
Accrued direct costs | 746,129 | 1,005,636 | - | - |
Supplier retentions | 440,696 | 405,174 | - | - |
Amounts owed to group undertakings | - | - |
Tax | 401,432 | 431,896 |
Social security and other taxes | 113,978 | 66,354 |
Other creditors | 3,597 | 3,597 |
Pensions | 8,575 | 8,543 | - | - |
Directors' current accounts | 168,958 | 234,968 | 168,958 | 234,968 |
Accrued expenses | 50,054 | 30,672 |
4,817,065 | 5,861,773 |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 December 2023 |
16. | Creditors: amounts falling due after more than one year |
Group |
2023 | 2022 |
as restated |
£ | £ |
Supplier retentions > 1 year | 538,000 | 432,972 |
17. | Leasing agreements |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
as restated |
£ | £ |
Net obligations repayable: |
Within one year | 4,082 | 7,853 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
as restated |
£ | £ |
Within one year | 44,500 | 31,000 |
Between one and five years | 124,000 | 124,000 |
In more than five years | 98,167 | 124,000 |
266,667 | 279,000 |
18. | Provisions for liabilities |
Group | Company |
2023 | 2022 | 2023 | 2022 |
as restated | as restated |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 28,119 | 15,890 |
Other timing differences | - | 9,964 | - | 9,964 |
28,119 | 25,854 | - | 9,964 |
Group |
Deferred |
tax |
£ |
Balance at 1 January 2023 | 25,854 |
Charge to Income statement during year | 2,265 |
Balance at 31 December 2023 | 28,119 |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 December 2023 |
18. | Provisions for liabilities - continued |
Company |
Deferred |
tax |
£ |
Balance at 1 January 2023 |
Credit to Income statement during year | ( | ) |
Balance at 31 December 2023 |
19. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | as restated |
£ | £ |
A Ordinary | 1 | 562 | 562 |
C Ordinary | 1 | 238 | 238 |
D Ordinary | 1 | 200 | 200 |
1,000 | 1,000 |
20. | Directors' advances, credits and guarantees |
The following loans from directors subsisted during the years ended 31 December 2023 and 31 December 2022: |
2023 | 2022 |
as restated |
£ | £ |
P J Smailes and L Y Smailes |
Balance outstanding at start of year | (185,499 | ) | (87,731 | ) |
Amounts advanced | 59,557 | (97,768 | ) |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | (125,942 | ) | (185,499 | ) |
E D Campbell |
Balance outstanding at start of year | (49,469 | ) | (43,260 | ) |
Amounts advanced | 6,453 | (6,209 | ) |
Amounts repaid | - | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | (43,016 | ) | (49,469 | ) |
The loans from directors are interest free and repayable on demand. |
Dividends totalling £456,425 were paid to the directors in the year (2022: £428,160) . |
I-MEX (M&E) Holdings Limited (Registered number: 10791647) |
Notes to the Consolidated Financial Statements - continued |
For The Year Ended 31 December 2023 |
21. | Reconciliation of profit for the financial year to cash generated from operations |
2023 | 2022 |
as restated |
£ | £ |
Profit for the financial year | 669,826 | 1,501,017 |
Depreciation charges | 112,202 | 139,360 |
Loss on disposal of fixed assets | 6,221 | 858 |
Loss/(gain) on revaluation of fixed assets | 55,000 | (52,440 | ) |
Government grants | - | (1,433 | ) |
Finance costs | 683 | 3,970 |
Finance income | (26,412 | ) | (1,095 | ) |
Taxation | 248,243 | 329,867 |
1,065,763 | 1,920,104 |
Decrease/(increase) in trade and other debtors | 344,588 | (1,776,293 | ) |
(Decrease)/increase in trade and other creditors | (839,435 | ) | 1,035,580 |
Cash generated from operations | 570,916 | 1,179,391 |
22. | Cash and cash equivalents |
The amounts disclosed on the Cash flow statement in respect of cash and cash equivalents are in respect of these Balance sheet amounts: |
Year ended 31 December 2023 |
31.12.23 | 1.1.23 |
£ | £ |
Cash and cash equivalents | 2,709,092 | 2,946,640 |
Year ended 31 December 2022 |
31.12.22 | 1.1.22 |
as restated |
£ | £ |
Cash and cash equivalents | 2,946,640 | 2,793,193 |
23. | Analysis of changes in net funds |
At 1.1.23 | Cash flow | At 31.12.23 |
£ | £ | £ |
Net cash |
Cash at bank | 2,946,640 | (237,548 | ) | 2,709,092 |
2,946,640 | (237,548 | ) | 2,709,092 |
Debt |
Finance leases | (7,853 | ) | 3,771 | (4,082 | ) |
(7,853 | ) | 3,771 | (4,082 | ) |
Total | 2,938,787 | (233,777 | ) | 2,705,010 |