Company registration number 06366153 (England and Wales)
ILAND EUROPE LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ILAND EUROPE LTD
COMPANY INFORMATION
Directors
Mr A J Baum
Mr B E Diamond
Mr J A Emmert
Company number
06366153
Registered office
The Courtyard
High Street
Ascot
Berkshire
SL5 7HP
Auditor
Kirk Rice LLP
The Courtyard
High Street
Ascot
Berkshire
SL5 7HP
ILAND EUROPE LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 19
ILAND EUROPE LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

iland Europe Limited is a wholly owned subsidiary of 11:11 Systems, Inc. based in Fairfield, New Jersey, USA. 11:11 Systems is a managed infrastructure solutions provider that addresses the most pressing cloud, connectivity and security challenges faced by enterprises.11:11 Systems provides cloud-based technology solutions and other IT services including secure and compliant cloud services hosting for Infrastructure as a Service, Disaster Recovery, Back Up as a Service, and Object Storage. The Group operates data centers and delivers cloud services to customers from its cloud regions throughout North America, Europe, Australia, and Asia.

 

 

Customers are signed up for terms of between one to three years and charged on a monthly or quarterly basis, depending on agreed terms.

 

The UK company has had another good year with turnover increasing by 4% due to new customers who have signed up in the year and existing customers increasing their storage needs. The gross profit margin has decreased slightly from 79% in the prior year to 75% in the current year, remaining relatively consistent overall. Some driving factors squeezing gross margin include higher power and utility costs in the UK and an update to product mix. The operating profit has fallen substantially due to the expansion of datacentre space and infrastructure. There has been

an increase in head count to support this expanded capacity and also due to the Parent acquisition of the Sungard business. This expansion is in line with the company’s policy to ensure all equipment is kept up to date and regularly updated.

 

 

Principal risks and uncertainties

The key business risks and uncertainties affecting the company at the macroeconomic level are geopolitical unrest, inflation and power cost headwinds.

 

 

Financial Key Performance Indicators

 

2023

2022

 

£

£

Turnover

16,820,956

16,133,973

Cost of Sales

(4,194,247)

(3,276,871)

Gross profit

12,626,709

12,857,102

Gross profit %

75.07

79.69%

Future Outlook

The directors are very pleased with the performance of the company during the year and particularly with the level of organic growth being generated by their existing customer base in UK. Following the expansion of capacity during the year, the directors believe this growth will continue.

On behalf of the board

Mr B E Diamond
Director
20 September 2024
ILAND EUROPE LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of data processing, hosting and related activities.

Results and dividends

The results for the year are set out on Page 7-10.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

Mr A J Baum
Mr B E Diamond
Mr J A Emmert
Auditor

The auditor, Kirk Rice LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

ILAND EUROPE LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
On behalf of the board
Mr B E Diamond
Director
20 September 2024
ILAND EUROPE LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ILAND EUROPE LTD
- 4 -
Opinion

We have audited the financial statements of iland Europe Ltd (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:

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 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 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:

ILAND EUROPE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ILAND EUROPE LTD
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:

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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Our audit approach was developed by obtaining an understanding of the company’s activities, the key functions undertaken on behalf of the Board by management and by service organisations, and the overall control environment. Based on this understanding we assessed those aspects of the company’s transactions and balances which were most likely to give rise to a material misstatement and were most susceptible to irregularities including fraud or error. Specifically, we identified what we considered to be key audit risks and planned our audit approach accordingly.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. These included but were not limited to compliance with Companies Act 2006, FRS102, and data protection legislation.

We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

We focused on laws and regulations that could give rise to a material misstatement in the company financial statements. Our tests included, but were not limited to:

 

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all of our audits we also addressed the risk of revenue recognition and management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

ILAND EUROPE LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ILAND EUROPE LTD
- 6 -

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.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

David Forinton
Senior Statutory Auditor
For and on behalf of Kirk Rice LLP
24 September 2024
Statutory Auditor
The Courtyard
High Street
Ascot
Berkshire
SL5 7HP
ILAND EUROPE LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
16,820,956
16,133,973
Cost of sales
(4,194,247)
(3,276,871)
Gross profit
12,626,709
12,857,102
Administrative expenses
(12,564,788)
(8,824,075)
Operating profit
4
61,921
4,033,027
Interest receivable and similar income
6
39,419
51,133
Profit before taxation
101,340
4,084,160
Tax on profit
7
-
0
(744,224)
Profit for the financial year
101,340
3,339,936

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ILAND EUROPE LTD
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Intangible assets
8
57,217
57,217
Tangible assets
9
8,850,826
9,518,069
8,908,043
9,575,286
Current assets
Debtors falling due after more than one year
10
1,622,530
1,788,351
Debtors falling due within one year
10
5,901,130
4,827,579
Cash at bank and in hand
1,314,187
2,989,002
8,837,847
9,604,932
Creditors: amounts falling due within one year
11
(6,223,120)
(7,758,788)
Net current assets
2,614,727
1,846,144
Total assets less current liabilities
11,522,770
11,421,430
Creditors: amounts falling due after more than one year
12
(43,451)
(43,451)
Provisions for liabilities
Deferred tax liability
13
1,877,266
1,877,266
(1,877,266)
(1,877,266)
Net assets
9,602,053
9,500,713
Capital and reserves
Called up share capital
15
1
1
Profit and loss reserves
9,602,052
9,500,712
Total equity
9,602,053
9,500,713

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

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 B E Diamond
Director
Company registration number 06366153 (England and Wales)
ILAND EUROPE LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
1
6,160,776
6,160,777
Year ended 31 December 2022:
Profit and total comprehensive income
-
3,339,936
3,339,936
Balance at 31 December 2022
1
9,500,712
9,500,713
Year ended 31 December 2023:
Profit and total comprehensive income
-
101,340
101,340
Balance at 31 December 2023
1
9,602,052
9,602,053
ILAND EUROPE LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
17
(539,941)
7,226,463
Income taxes refunded/(paid)
236,200
(429,331)
Net cash (outflow)/inflow from operating activities
(303,741)
6,797,132
Investing activities
Purchase of intangible assets
-
0
(57,217)
Purchase of tangible fixed assets
(1,410,493)
(4,809,590)
Interest received
39,419
51,133
Net cash used in investing activities
(1,371,074)
(4,815,674)
Net (decrease)/increase in cash and cash equivalents
(1,674,815)
1,981,458
Cash and cash equivalents at beginning of year
2,989,002
1,007,544
Cash and cash equivalents at end of year
1,314,187
2,989,002
ILAND EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
1
Accounting policies
Company information

iland Europe Ltd is a private company limited by shares incorporated in England and Wales. The registered office is The Courtyard, High Street, Ascot, Berkshire, SL5 7HP.

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.

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.

1.2
Going concern

The financial statements have been prepared on the going concern basis as the company is generating positive cash flows and has made a profit this year. The directors are confident that the company will continue to generate cash in the 12 month period following the date these accounts were agreed as the contracts that underpin the revenue will continue during this period and beyond. In addition, the parent company also remains supportive and has confirmed its intention not to call due any of the outstanding intercompany balance within 12 months of the date of these accounts such that it would negatively impact on the ability of the company to continue trading.true

1.3
Turnover

Contract services income and commissions are invoiced in advance and represents the total amount receivable by the company for services provided and is recognised in line with the performance of these services.

 

Usage income is invoiced in arrears and represent the total amount receivable by the company and is recognised in line with the period in which those services were used.

 

All amounts recognised are exclusive of VAT.

1.4
Intangible fixed assets other than goodwill

Amortisation 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:

Patents & licences
10 years straight line
1.5
Tangible fixed assets

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

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

Fixtures and fittings
20% on cost
Computers
20% on cost

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.

ILAND EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

1.7
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.

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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

ILAND EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
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.

Derecognition of financial liabilities

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

1.8
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.

1.9
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.

1.10
Retirement benefits

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

1.11
Foreign exchange

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

ILAND EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
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.

3
Turnover and other revenue
2023
2022
£
£
Other revenue
Interest income
39,419
51,133
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
85,155
(292,707)
Fees payable to the company's auditor for the audit of the company's financial statements
13,125
12,500
Depreciation of owned tangible fixed assets
2,058,403
757,751
Loss on disposal of tangible fixed assets
19,333
-
5
Employees

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

2023
2022
Number
Number
66
50

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
6,914,821
5,271,437
Social security costs
825,232
713,113
Pension costs
233,295
176,974
7,973,348
6,161,524
ILAND EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest receivable from group companies
39,419
45,633
Other interest income
-
0
5,500
Total income
39,419
51,133
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
39,419
45,633
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(223,501)
Deferred tax
Origination and reversal of timing differences
-
0
967,725
Total tax charge
-
0
744,224

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
101,340
4,084,160
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
25,335
775,990
Tax effect of expenses that are not deductible in determining taxable profit
30,553
10,126
Tax effect of utilisation of tax losses not previously recognised
(114,122)
-
0
Unutilised tax losses carried forward
-
0
118,168
Effect of change in corporation tax rate
1,549
-
0
Permanent capital allowances in excess of depreciation
56,685
(1,127,786)
Deferred tax adjustments in respect of prior years
-
0
967,726
Taxation charge for the year
-
744,224
ILAND EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
8
Intangible fixed assets
Patents & licences
£
Cost
At 1 January 2023 and 31 December 2023
57,217
Amortisation and impairment
At 1 January 2023 and 31 December 2023
-
0
Carrying amount
At 31 December 2023
57,217
At 31 December 2022
57,217
9
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 January 2023
4,236
15,427,419
15,431,655
Additions
-
0
1,410,493
1,410,493
Disposals
-
0
(94,588)
(94,588)
Transfers
(4,236)
4,236
-
0
At 31 December 2023
-
0
16,747,560
16,747,560
Depreciation and impairment
At 1 January 2023
4,236
5,909,350
5,913,586
Depreciation charged in the year
-
0
2,058,403
2,058,403
Eliminated in respect of disposals
-
0
(75,255)
(75,255)
Transfers
(4,236)
4,236
-
0
At 31 December 2023
-
0
7,896,734
7,896,734
Carrying amount
At 31 December 2023
-
0
8,850,826
8,850,826
At 31 December 2022
-
0
9,518,069
9,518,069
ILAND EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,801,032
3,017,574
Corporation tax recoverable
345,231
581,431
Amounts owed by group undertakings
94,395
19,758
Other debtors
67,680
67,680
Prepayments and accrued income
437,307
985,651
5,745,645
4,672,094
Deferred tax asset (note 13)
155,485
155,485
5,901,130
4,827,579
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
1,216,868
1,130,247
Prepayments and accrued income
405,662
658,104
1,622,530
1,788,351
Total debtors
7,523,660
6,615,930
11
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
410,250
3,297,539
Amounts owed to group undertakings
768,979
703,388
Taxation and social security
1,171,265
296,493
Other creditors
42,062
261,952
Accruals and deferred income
3,830,564
3,199,416
6,223,120
7,758,788
12
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
43,451
43,451
ILAND EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
13
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2023
2022
2023
2022
Balances:
£
£
£
£
Accelerated capital allowances
1,877,266
1,877,266
-
-
Tax losses
-
-
155,485
155,485
1,877,266
1,877,266
155,485
155,485
There were no deferred tax movements in the year.
14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
233,295
176,974

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
1
1
1
1
16
Ultimate controlling party

The ultimate controlling party is 11:11 Systems, Inc. and its registered office is:

 

695 Route 46

Suite 301

Fairfield

New Jersey

07004

ILAND EUROPE LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
17
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the year after tax
101,340
3,339,936
Adjustments for:
Taxation charged
-
0
744,224
Investment income
(39,419)
(51,133)
Loss on disposal of tangible fixed assets
19,333
-
Depreciation and impairment of tangible fixed assets
2,058,403
757,751
Movements in working capital:
Increase in debtors
(1,143,930)
(1,800,691)
(Decrease)/increase in creditors
(1,535,668)
4,236,376
Cash (absorbed by)/generated from operations
(539,941)
7,226,463
18
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,989,002
(1,674,815)
1,314,187
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