Company registration number 02413313 (England and Wales)
INTERNATIONAL VALUE INVESTMENTS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
INTERNATIONAL VALUE INVESTMENTS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 7
INTERNATIONAL VALUE INVESTMENTS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
4
11,507,921
10,886,285
Current assets
Debtors
5
195
5,580,195
Cash at bank and in hand
5,788,009
14,986,353
5,788,204
20,566,548
Creditors: amounts falling due within one year
6
(3,794,347)
(18,809,236)
Net current assets
1,993,857
1,757,312
Total assets less current liabilities
13,501,778
12,643,597
Deferred tax provision
(1,354,782)
(1,179,362)
Net assets
12,146,996
11,464,235
Capital and reserves
Called up share capital
7
131,602
131,602
Profit and loss reserves
12,015,394
11,332,633
Total equity
12,146,996
11,464,235
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 23 September 2024 and are signed on its behalf by:
Mr T C Smith
Director
Company Registration No. 02413313
INTERNATIONAL VALUE INVESTMENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
131,602
12,239,628
12,371,230
Year ended 31 December 2022:
Loss and total comprehensive expense for the year
-
(906,995)
(906,995)
Balance at 31 December 2022
131,602
11,332,633
11,464,235
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
682,761
682,761
Balance at 31 December 2023
131,602
12,015,394
12,146,996
INTERNATIONAL VALUE INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information
International Value Investments Limited is a private company limited by shares incorporated in England and Wales. The registered office is 2nd Floor, 201 Great Portland Street, London, W1W 5AB.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 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, modified to include listed investments, which are part of fixed asset investments, at fair value. The principal accounting policies adopted are set out below.
The director is of the opinion the current holding in Fundsmith LLP (shown as members capital account in note 4) does not constitute control over the entity due to the current management of the business. As a result the director has not consolidated the figures of Fundsmith LLP into these accounts.
1.2
Fixed asset investments
Member's capital accounts in partnerships are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
Listed investments are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. The closing market price at the balance sheet date is considered to be a true reflection of the fair value. Changes in fair value are recognised in the profit or loss.
1.3
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.
1.4
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.
INTERNATIONAL VALUE INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR 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.
1.5
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.
1.6
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.
INTERNATIONAL VALUE INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are 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.
Key sources of estimation uncertainty
Impairment of members capital account
The members capital account is initially measured at cost and subsequently at historic cost less any accumulated impairments. The director uses his professional judgement by taking into consideration the performance of the investment when considering whether or not an impairment is necessary.
3
Employees
The average monthly number of persons (excluding directors) employed by the company during the year was:
2023
2022
Number
Number
Total
-
4
Fixed asset investments
2023
2022
£
£
Members capital account
5,180,875
5,180,875
Listed investments
6,327,046
5,705,410
11,507,921
10,886,285
INTERNATIONAL VALUE INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
4
Fixed asset investments
(Continued)
- 6 -
Movements in fixed asset investments
Members Capital Account
Listed investments
Total
£
£
£
Cost or valuation
At 1 January 2023
5,180,875
5,705,410
10,886,285
Additions
-
20,047,473
20,047,473
Valuation changes
-
756,636
756,636
Distribution received on liquidation of investment
-
(135,000)
(135,000)
Disposals
-
(20,047,473)
(20,047,473)
At 31 December 2023
5,180,875
6,327,046
11,507,921
Carrying amount
At 31 December 2023
5,180,875
6,327,046
11,507,921
At 31 December 2022
5,180,875
5,705,410
10,886,285
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
195
195
Other debtors
5,580,000
195
5,580,195
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
7,170
6,810
Amounts owed to group undertakings
40,557
40,557
Corporation tax
21,690
107,423
Other creditors
3,724,930
18,654,446
3,794,347
18,809,236
INTERNATIONAL VALUE INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
131,602
131,602
131,602
131,602
8
Related party transactions
In accordance with FRS 102 paragraph 33.1A, the exemption has been taken from disclosing transactions and balances with other group companies on the basis that they, directly or indirectly, are all 100% subsidiaries of The Eighth Wonder Foundation, the ultimate parent entity.
The company is a corporate member in Fundsmith LLP where the director, Mr T C Smith, is also a member.
At the year end, the value of the members capital account in Fundsmith LLP was £5,180,875 (2022: £5,180,875).
At the year end the company owed a director £3,717,760 (2022: £18,647,637). This loan is interest free and repayable on demand.
9
Parent company
The parent company is Value Investments Limited and its registered office is Floor 2, 201 Great Portland Street, London, England, W1W 5AB.
The ultimate parent entity is The Eighth Wonder Foundation with a registered office at c/o Victoria Corporate Agents (Proprietary) Limited, Suite 108, Premier Building, Victoria, Mahe, Seychelles.
.
10
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.
Senior Statutory Auditor:
Malik Nayyer Salim
Statutory Auditor:
Shaw Gibbs (Audit) Limited
Date of audit report:
23 September 2024