Company registration number 01431977 (England and Wales)
ADVANCED INTERIOR SOLUTIONS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
ADVANCED INTERIOR SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
G A Graville
D J Smith
Secretary
P Ng
Company number
01431977
Registered office
Ground Floor
St Paul's House
10 Warwick Lane
London
EC4M 7BP
Auditor
UHY Hacker Young (East) Limited
Suite 501
The Nexus Building
Broadway
Letchworth Garden City
Herts
SG6 9BL
Business address
Ground Floor
St Paul's House
10 Warwick Lane
London
EC4M 7BP
ADVANCED INTERIOR SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 24
ADVANCED INTERIOR SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 1 -
The directors present the strategic report for the Period ended 31 December 2023.
Fair review of the business
The company's principal activity continued to be the workplace design, fit out and refurbishment of commercial premises including retailing office furniture.
The company's results for the financial year were as follows:
This period's sales increased to £33.1m (March 2023: £15.2m) and profit before tax was £2.69m (March 2023: £0.28m).
Successful introduction of measures including working capital preservation, KPI monitoring as well as operating cash generation have improved our efficiency and strength of available cash position of the group.
Our continuing success and excellent reputation gained in the market has allowed us to retain and attract the best personnel in the market. Whilst our staff numbers have fallen in this company, the number of staff in the group has grown and we are grateful for the continuing support of our staff.
Principal risks and uncertainties
The company operates in a sector that is directly impacted by wider economy activity. The success depends predominantly on commercial property development in the UK. Any slowdown in the economy will have an impact. The company looks to mitigate this risk by increasing its customer base and widening the categories it offers so that any exposure to specific clients or sector difficulties is reduced.
The discontinuation of the membership of the EU continues to effect large areas of the UK economy. However, the risk is mitigated on a group basis by the incorporation of our Dutch entity and our ability to serve our European clients continues.
Health and Safety
The company is exposed to health and safety risks. As such, a comprehensive approach to mitigating those risks is carried out on a continuous basis, in-house, as well as obtaining expert external consultancy advice.
ADVANCED INTERIOR SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators
Financial KPIs Dec 2023 March 2023
Turnover £33.1m £15.2m
GP Margin 23% 28%
Operating profit £2.69m £0.28m
Equity Shareholders fund £12.98m £10.2m
Non-Financial KPIs
The company operates a wide range of non-financial KPl's across its business units in line with its ISO 9001 (2015) quality assurance accreditation. Every project undertaken by the company is monitored and measured by a series of KPl's at various key stages throughout the lifecycle of the project. The company is particularly conscious of its corporate and social responsibilities in terms of health and safety and environmental compliance. In addition, the company conducts its affairs in accordance with its ISO 14001 and BS OHSAS 18001 accreditations.
G A Graville
Director
20 September 2024
ADVANCED INTERIOR SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 3 -
The directors present their annual report and financial statements for the Period ended 31 December 2023.
Principal activities
The company's principal activity continued to be the workplace design, fit out and refurbishment of commercial premises including retailing office furniture.
Results and dividends
The results for the Period are set out on page 9.
No ordinary dividends were paid to AIS Group Companies Limited during the period (March 2023: £nil). The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the Period and up to the date of signature of the financial statements were as follows:
G A Graville
D J Smith
Financial instruments
Liquidity risk
The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.
Credit risk
Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Future developments
Our outlook for the next year is for continued and stable growth in the UK and in the EU.
We will continue to build on our reputation in the industry. We also look forward to strengthening our expertise from sales to workplace consultancy both here in the UK and in the EU.
Auditor
The auditor, UHY Hacker Young (East) Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
ADVANCED INTERIOR SOLUTIONS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 4 -
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.
On behalf of the board
G A Graville
Director
20 September 2024
ADVANCED INTERIOR SOLUTIONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 5 -
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:
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 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.
ADVANCED INTERIOR SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF ADVANCED INTERIOR SOLUTIONS LIMITED
- 6 -
Opinion
We have audited the financial statements of Advanced Interior Solutions Limited (the 'company') for the Period ended 31 December 2023 which comprise the profit and loss account, 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:
give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its profit for the Period 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.
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.
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 Period 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.
ADVANCED INTERIOR SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ADVANCED INTERIOR SOLUTIONS LIMITED
- 7 -
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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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.
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.
Based on our understanding of the company and the industry in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the acts by the company, which were contrary to applicable laws and regulations including fraud, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.
We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to construction contracts, and significant one-off or unusual transactions.
Our audit procedures were designed to respond to those identified risks, including non-compliance with laws and regulations (irregularities) and fraud that are material to the financial statements. Our audit procedures included but were not limited to:
Communicating identified laws and regulations throughout our engagement team and remaining alert to any indications of non-compliance throughout our audit;
Considering the risk of acts by the company which were contrary to the applicable laws and regulations, including fraud; and
Enquiring of management as to actual and potential litigation and claims.
ADVANCED INTERIOR SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF ADVANCED INTERIOR SOLUTIONS LIMITED
- 8 -
Our audit procedures in relation to fraud included but were not limited to:
Discussing amongst the engagement team the risks of fraud;
Making enquiries of management on whether they had knowledge of any actual, suspected or alleged fraud;
Gaining an understanding of the internal controls established to mitigate risks related to fraud;
Corroborating the basis for material accounting estimates;
Addressing the risks of fraud through management override of controls by performing substantive and analytical journal testing; and
Obtaining support and reasonable explanations for any manual journal postings.
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. Also, 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 or intentional misrepresentations, or through collusion.
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.
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.
James Price FCA
Senior Statutory Auditor
For and on behalf of UHY Hacker Young (East) Limited
23 September 2024
Chartered Accountants
Statutory Auditor
Suite 501
The Nexus Building
Broadway
Letchworth Garden City
Herts
SG6 9BL
ADVANCED INTERIOR SOLUTIONS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 9 -
Period
Period
ended
ended
31 December
31 March
2023
2023
Notes
£
£
Turnover
3
33,393,172
15,209,439
Cost of sales
(25,392,161)
(10,897,172)
Gross profit
8,001,011
4,312,267
Administrative expenses
(5,314,341)
(4,030,573)
Operating profit
4
2,686,670
281,694
Interest receivable and similar income
7
2,438
Profit before taxation
2,686,670
284,132
Tax on profit
8
61,960
(51,596)
Profit for the financial Period
2,748,630
232,536
The profit and loss account has been prepared on the basis that all operations are continuing operations.
ADVANCED INTERIOR SOLUTIONS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 10 -
Period
Period
ended
ended
31 December
31 March
2023
2023
£
£
Profit for the Period
2,748,630
232,536
Other comprehensive income net of taxation
-
-
Total comprehensive income for the Period
2,748,630
232,536
ADVANCED INTERIOR SOLUTIONS LIMITED
BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
31 December 2023
31 March 2023
Notes
£
£
£
£
Fixed assets
Goodwill
9
12,071
23,967
Tangible assets
10
280,100
337,281
292,171
361,248
Current assets
Debtors
11
16,479,070
14,030,670
Cash at bank and in hand
3,204,013
2,548,288
19,683,083
16,578,958
Creditors: amounts falling due within one year
12
(6,931,831)
(6,631,698)
Net current assets
12,751,252
9,947,260
Total assets less current liabilities
13,043,423
10,308,508
Provisions for liabilities
Deferred tax liability
13
53,116
66,831
(53,116)
(66,831)
Net assets
12,990,307
10,241,677
Capital and reserves
Called up share capital
15
12,500
12,500
Profit and loss reserves
12,977,807
10,229,177
Total equity
12,990,307
10,241,677
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:
G A Graville
Director
Company registration number 01431977 (England and Wales)
ADVANCED INTERIOR SOLUTIONS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 August 2022
12,500
9,996,641
10,009,141
Period ended 31 March 2023:
Profit and total comprehensive income
-
232,536
232,536
Balance at 31 March 2023
12,500
10,229,177
10,241,677
Period ended 31 December 2023:
Profit and total comprehensive income
-
2,748,630
2,748,630
Balance at 31 December 2023
12,500
12,977,807
12,990,307
ADVANCED INTERIOR SOLUTIONS LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 13 -
2023
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
19
974,694
(2,635,128)
Income taxes (paid)/refunded
(318,969)
218,709
Net cash inflow/(outflow) from operating activities
655,725
(2,416,419)
Investing activities
Purchase of tangible fixed assets
(295,711)
Interest received
2,438
Net cash used in investing activities
-
(293,273)
Net increase/(decrease) in cash and cash equivalents
655,725
(2,709,692)
Cash and cash equivalents at beginning of Period
2,548,288
5,257,980
Cash and cash equivalents at end of Period
3,204,013
2,548,288
ADVANCED INTERIOR SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information
Advanced Interior Solutions Limited is a private company limited by shares incorporated in England and Wales. The registered office is Ground Floor, St Paul's House, 10 Warwick Lane, London, EC4M 7BP.
1.1
Reporting period
These financial statements are presented for a period of 9 months from the previous period end. The reason for the short accounting period is to create a better fit with the company's internal operations which address calendar years. The financial statements are therefore not entirely comparable with the financial statements for the prior period which covered a period of 8 months.
1.2
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
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.
The parent company is AIS Group Companies Limited.
1.3
Going concern
The directors have assessed that the company is able to continue to operate as a going concern for at least 12 months from the balance sheet date. There are no material uncertainties that may cast significant doubt on the ability of the company to continue to operate as a going concern.true
The company has always been financially independent and operated within its liquidity position. In addition, the parent company has the ability to provide full financial support should the need arise.
1.4
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
The company’s activities involves contractual arrangements that are significant in size and span the company’s year end. In order to determine the stage of completeness, the directors make an assessment of time spent on contracts as at the year end relative to the overall time expected to be spent on the contracts. This assumes a linear progression in respect of revenue and costs through the course of contracts which the directors consider to be a reasonable policy in the context of the nature of its work. Using the stage of completeness assessments the requisite adjustments are made to revenue, costs, debtors and creditors so that an appropriate measure of profit is recognised in these financial statements.
ADVANCED INTERIOR SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
The excess of apportioned sales revenue (calculated on the stage of completion basis) and amounts already invoiced is recognised as a debtor. The excess of apportioned total costs and amounts already invoiced is recognised separately as a creditor.
Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable.
Interest income is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and the effective interest rate applicable.
Revenue from the sale of furniture is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on delivery of the goods); the amount of revenue can be measured reliably; it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life of 10 years.
Goodwill is tested for impairment at least annually, or more frequently when there is an indication of impairment. If the recoverable amount is less than the carrying amount, an impairment loss is recognised through the profit and loss account.
1.6
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:
Leasehold improvements
6 years straight line
Fixtures, fittings & equipment
25% - 33% reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.7
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).
An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
1.8
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments.
ADVANCED INTERIOR SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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.
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.
ADVANCED INTERIOR SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Basic financial liabilities
Basic financial liabilities, including creditors and loans from fellow group companies, 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.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
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.
1.11
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.
ADVANCED INTERIOR SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employees' services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.15
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.
ADVANCED INTERIOR SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 19 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Amounts recoverable on contracts and payments on account
In order to comply with the accounting standards in relation to contracts for services, the directors must estimate the total contract value, cost and stage of completion for each contract in progress at the reporting date. The stage of completion is based around the number of weeks complete at the reporting date, and this makes the assumption that costs and revenues accrue evenly over the course of the contract.
3
Turnover and other revenue
2023
2023
£
£
Other significant revenue
Interest income
-
2,438
All income is derived in the UK and turnover from the principal activity of design, fit out and refurbishment of commercial premises.
4
Operating profit
2023
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
(14,333)
332
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
14,500
Depreciation of owned tangible fixed assets
57,181
40,566
Amortisation of intangible assets
11,896
10,574
Operating lease charges
23,212
16,223
ADVANCED INTERIOR SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 20 -
5
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2023
2023
Number
Number
Directors and senior management
9
28
Sales staff
6
6
Administrative staff
26
4
Total
41
38
Their aggregate remuneration comprised:
2023
2023
£
£
Wages and salaries
3,068,974
2,367,637
Social security costs
373,647
307,589
Pension costs
64,891
46,901
3,507,512
2,722,127
6
Directors' remuneration
2023
2023
£
£
Remuneration for qualifying services
186,323
7
Interest receivable and similar income
2023
2023
£
£
Interest income
Interest on bank deposits
2,438
2023
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
2,438
8
Taxation
2023
2023
£
£
Current tax
Adjustments in respect of prior periods
(48,245)
ADVANCED INTERIOR SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
8
Taxation
2023
2023
£
£
(Continued)
- 21 -
Deferred tax
Origination and reversal of timing differences
(13,715)
51,596
Total tax (credit)/charge
(61,960)
51,596
The actual (credit)/charge for the Period can be reconciled to the expected charge for the Period based on the profit or loss and the standard rate of tax as follows:
2023
2023
£
£
Profit before taxation
2,686,670
284,132
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
671,668
53,985
Tax effect of expenses that are not deductible in determining taxable profit
26,879
25,641
Group relief
(712,262)
(34,157)
Other non-reversing timing differences
6,127
Overpayment of corporation tax in PY
(48,245)
Taxation (credit)/charge for the period
(61,960)
51,596
9
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 December 2023
158,605
Amortisation and impairment
At 1 April 2023
134,638
Amortisation charged for the Period
11,896
At 31 December 2023
146,534
Carrying amount
At 31 December 2023
12,071
At 31 March 2023
23,967
ADVANCED INTERIOR SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 22 -
10
Tangible fixed assets
Leasehold improvements
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 April 2023 and 31 December 2023
121,812
458,532
580,344
Depreciation and impairment
At 1 April 2023
8,287
234,776
243,063
Depreciation charged in the Period
15,227
41,954
57,181
At 31 December 2023
23,514
276,730
300,244
Carrying amount
At 31 December 2023
98,298
181,802
280,100
At 31 March 2023
113,525
223,756
337,281
11
Debtors
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
2,455,495
1,353,594
Gross amounts owed by contract customers
3,262,532
3,410,078
Corporation tax recoverable
58,802
Amounts owed by group undertakings
10,657,586
9,215,231
Other debtors
14,170
10,496
Prepayments and accrued income
30,485
41,271
16,479,070
14,030,670
12
Creditors: amounts falling due within one year
2023
2023
£
£
Trade creditors
2,439,125
2,532,280
Amounts owed to group undertakings
223,756
419,940
Corporation tax
308,412
Other taxation and social security
1,303,304
762,036
Accruals and deferred income
2,965,646
2,609,030
6,931,831
6,631,698
ADVANCED INTERIOR SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 23 -
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2023
Balances:
£
£
Accelerated capital allowances
53,116
66,831
2023
Movements in the Period:
£
Liability at 1 April 2023
66,831
Credit to profit or loss
(13,715)
Liability at 31 December 2023
53,116
14
Retirement benefit schemes
2023
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
64,891
46,901
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
2023
2023
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary shares of £1 each
12,500
12,500
12,500
12,500
16
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2023
£
£
Within one year
338,170
311,600
Between two and five years
1,224,824
259,667
1,562,994
571,267
ADVANCED INTERIOR SOLUTIONS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 DECEMBER 2023
- 24 -
17
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2023
2023
£
£
Aggregate compensation
186,323
18
Ultimate controlling party
The parent company is AIS Group Companies Limited, a company registered in England and Wales.
The ultimate controlling party is G Graville, a director.
19
Cash generated from/(absorbed by) operations
2023
2023
£
£
Profit for the Period after tax
2,748,630
232,536
Adjustments for:
Taxation (credited)/charged
(61,960)
51,596
Investment income
(2,438)
Amortisation and impairment of intangible assets
11,896
10,574
Depreciation and impairment of tangible fixed assets
57,181
40,566
Movements in working capital:
(Increase)/decrease in debtors
(2,389,598)
860,455
Increase/(decrease) in creditors
608,545
(3,828,417)
Cash generated from/(absorbed by) operations
974,694
(2,635,128)
20
Analysis of changes in net funds
1 April 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,548,288
655,725
3,204,013
2023-12-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.200G A GravilleD J SmithP Ngfalsefalse014319772023-04-012023-12-3101431977bus:Director12023-04-012023-12-3101431977bus:Director22023-04-012023-12-3101431977bus:CompanySecretary12023-04-012023-12-3101431977bus:RegisteredOffice2023-04-012023-12-31014319772023-12-31014319772022-08-012023-03-3101431977core:RetainedEarningsAccumulatedLosses2022-08-012023-03-3101431977core:RetainedEarningsAccumulatedLosses2023-04-012023-12-3101431977core:Goodwill2023-12-3101431977core:Goodwill2023-03-31014319772023-03-3101431977core:LeaseholdImprovements2023-12-3101431977core:FurnitureFittings2023-12-3101431977core:LeaseholdImprovements2023-03-3101431977core:FurnitureFittings2023-03-3101431977core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3101431977core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3101431977core:CurrentFinancialInstruments2023-12-3101431977core:CurrentFinancialInstruments2023-03-3101431977core:ShareCapital2023-12-3101431977core:ShareCapital2023-03-3101431977core:RetainedEarningsAccumulatedLosses2023-12-3101431977core:RetainedEarningsAccumulatedLosses2023-03-3101431977core:ShareCapital2022-07-3101431977core:RetainedEarningsAccumulatedLosses2022-07-31014319772023-03-31014319772022-07-3101431977core:Goodwill2023-04-012023-12-3101431977core:LeaseholdImprovements2023-04-012023-12-3101431977core:FurnitureFittings2023-04-012023-12-3101431977core:UKTax2023-04-012023-12-3101431977core:UKTax2022-08-012023-03-310143197712023-04-012023-12-310143197712022-08-012023-03-3101431977core:Goodwill2023-03-3101431977core:LeaseholdImprovements2023-03-3101431977core:FurnitureFittings2023-03-3101431977core:WithinOneYear2023-12-3101431977core:WithinOneYear2023-03-3101431977core:BetweenTwoFiveYears2023-12-3101431977core:BetweenTwoFiveYears2023-03-3101431977bus:PrivateLimitedCompanyLtd2023-04-012023-12-3101431977bus:FRS1022023-04-012023-12-3101431977bus:Audited2023-04-012023-12-3101431977bus:FullAccounts2023-04-012023-12-31xbrli:purexbrli:sharesiso4217:GBP