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REGISTERED NUMBER: 09950482 (England and Wales)




















FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

IAC ACOUSTIC COMPANY UK LIMITED

IAC ACOUSTIC COMPANY UK LIMITED (REGISTERED NUMBER: 09950482)

CONTENTS OF THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2023










Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


IAC ACOUSTIC COMPANY UK LIMITED

COMPANY INFORMATION
for the Year Ended 31 December 2023







DIRECTORS: F Alexander
P Jiang
B Jiang





REGISTERED OFFICE: IAC House
Unit A1 Electron Way
Chandler's Ford
Eastleigh
Hampshire
SO53 4SE





REGISTERED NUMBER: 09950482 (England and Wales)





AUDITORS: Xeinadin Audit Ltd
12 Conqueror Ct
Sittingbourne
Kent
ME10 5BH

IAC ACOUSTIC COMPANY UK LIMITED (REGISTERED NUMBER: 09950482)

BALANCE SHEET
31 December 2023

31.12.23 31.12.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 4 261,007 314,934
Tangible assets 5 123,207 172,504
Investments 6 - 100
384,214 487,538

CURRENT ASSETS
Stocks 223,412 281,207
Debtors 7 2,194,497 1,709,812
Cash at bank 430,356 766,788
2,848,265 2,757,807
CREDITORS
Amounts falling due within one year 8 2,897,413 2,175,291
NET CURRENT (LIABILITIES)/ASSETS (49,148 ) 582,516
TOTAL ASSETS LESS CURRENT LIABILITIES 335,066 1,070,054

CREDITORS
Amounts falling due after more than one
year

9

(6,880

)

(13,466

)

PROVISIONS FOR LIABILITIES (23,410 ) (32,775 )
NET ASSETS 304,776 1,023,813

CAPITAL AND RESERVES
Called up share capital 6,939 6,939
Share premium 512,523 512,523
Retained earnings (214,686 ) 504,351
SHAREHOLDERS' FUNDS 304,776 1,023,813

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 2 September 2024 and were signed on its behalf by:




F Alexander - Director


IAC ACOUSTIC COMPANY UK LIMITED (REGISTERED NUMBER: 09950482)

NOTES TO THE FINANCIAL STATEMENTS
for the Year Ended 31 December 2023


1. STATUTORY INFORMATION

IAC Acoustic Company UK Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax,returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the
company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

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

Patents and licences are being amortised evenly over their estimated useful life of nil years.

Tangible fixed assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and
subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and
installation.

IAC ACOUSTIC COMPANY UK LIMITED (REGISTERED NUMBER: 09950482)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is
determined using the average cost (AVCO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

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
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the

IAC ACOUSTIC COMPANY UK LIMITED (REGISTERED NUMBER: 09950482)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


2. ACCOUNTING POLICIES - continued

Pension costs and other post-retirement benefits
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Going concern
Following a relatively stabilising 2022 where moderate profits were made on slightly lower than budget order intake, the importance of improved margins was realised. This continued in 2023 with margins reaching over 40% on sales of £8.2m and orders of £9.4m contributing to an increase in backlog. NoP was a record for IAC UK at over £0.54m against a budget of £0.42m.

IAC UK enter 2024 with a good mix of mid to large projects in the forecast in almost all product ranges and expect 2024 to show increase in orders, sales, NoP and pre-tax profits and further increases in backlog for 2025.

IAC UK owned company (HAC Acoustics) entered administration in September 2023 putting significant strain on cash in the IAC UK business. Over 6 months since the administration process IAC UK cash has recovered significantly and provides a stable position to support the expected growth in orders and sales.

Organisational changes in IAC UK saw the introduction of separate business units to allow dedicated resources suited to different parts of the business. This has significantly been demonstrated to improve margins. Additionally a UK based Company Secretary was appointed in November.

The directors have prepared a 12 month cash flow forecast based on budget, 2023 strategies and contracts secured along with contracts expected to be won. IAC are regularly successful in obtaining advance payments, coupled with strong management of cash, giving a sound base for working capital.

The backlog going in to 2024 is £5m which represents 45% of the budgeted revenue for 2024. With continued investment in business improvements and automation IAC UK are expected to grow slightly in turnover without additional costs and create further increases in profitability.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 35 (2022 - 39 ) .

IAC ACOUSTIC COMPANY UK LIMITED (REGISTERED NUMBER: 09950482)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


4. INTANGIBLE FIXED ASSETS
Other
intangible
Goodwill assets Totals
£    £    £   
COST
At 1 January 2023 108,152 703,184 811,336
Additions - 70,364 70,364
At 31 December 2023 108,152 773,548 881,700
AMORTISATION
At 1 January 2023 79,261 417,141 496,402
Charge for year 12,000 112,291 124,291
At 31 December 2023 91,261 529,432 620,693
NET BOOK VALUE
At 31 December 2023 16,891 244,116 261,007
At 31 December 2022 28,891 286,043 314,934

5. TANGIBLE FIXED ASSETS
Plant and
Land and machinery
buildings etc Totals
£    £    £   
COST
At 1 January 2023 95,420 322,814 418,234
Additions - 19,453 19,453
At 31 December 2023 95,420 342,267 437,687
DEPRECIATION
At 1 January 2023 46,631 199,099 245,730
Charge for year 19,084 49,666 68,750
At 31 December 2023 65,715 248,765 314,480
NET BOOK VALUE
At 31 December 2023 29,705 93,502 123,207
At 31 December 2022 48,789 123,715 172,504

IAC ACOUSTIC COMPANY UK LIMITED (REGISTERED NUMBER: 09950482)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


6. FIXED ASSET INVESTMENTS
Other
investments
£   
COST
At 1 January 2023 100
Disposals (100 )
At 31 December 2023 -
NET BOOK VALUE
At 31 December 2023 -
At 31 December 2022 100

During the year, the wholly owned subsidiary, Hodgson Acoustics Company Limited, went into administration. IAC ceased all control on 19.09.23.

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Trade debtors 1,456,552 928,628
Amounts owed by group undertakings - 282,369
Other debtors 737,945 498,815
2,194,497 1,709,812

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.12.23 31.12.22
£    £   
Bank loans and overdrafts - 250,000
Hire purchase contracts 7,607 7,607
Trade creditors 742,020 407,935
Amounts owed to group undertakings 372,462 316,259
Taxation and social security 77,220 200,605
Other creditors 1,698,104 992,885
2,897,413 2,175,291

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
31.12.23 31.12.22
£    £   
Hire purchase contracts 6,880 13,466

10. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Nicholas Hume FCA (Senior Statutory Auditor)
for and on behalf of Xeinadin Audit Ltd

IAC ACOUSTIC COMPANY UK LIMITED (REGISTERED NUMBER: 09950482)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the Year Ended 31 December 2023


11. ULTIMATE CONTROLLING PARTY

The company's immediate parent undertaking is Greentec-IAC Holding Co., Limited, a company incorporated
in Hong Kong. The company's ultimate controlling party is Beijing Greentec Environmental Protection Group
Company Co., Limited which is the ultimate parent company incorporated in China.

The largest group in which the results of the company are consolidated is that headed by Beijing Greentec
Environmental Protection Group Company Co., Limited, incorporated in China. The smallest group in which
they are consolidated is that headed by Greentec-IAC Holding Co., Limited, incorporated in Hong Kong. The
consolidated accounts are available to the public and may be obtained from Suite 601, 6th Floor, Tower 1,
Silvercord, 30 Canton Road, Tsim Sha Tsui, Kowloon, Hong Kong China.