REGISTERED NUMBER: 05532481 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
IMPOWER HOLDINGS LIMITED |
REGISTERED NUMBER: 05532481 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
IMPOWER HOLDINGS LIMITED |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 5 |
Report of the Independent Auditors | 7 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
IMPOWER HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
BUSINESS ADDRESS: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
4th Floor Tuition House |
27-37 St George's Road |
Wimbledon |
London |
SW19 4EU |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their strategic report of the company and the group for the year ended 31 March 2024. |
WHO WE ARE |
IMPOWER is the UK's leading public sector consultancy firm, deeply invested in the transformation of the public sector. Our mission is to enhance outcomes and drive savings for public services. With a keen focus on innovation and collaboration, we strive to make a lasting difference in the communities we serve. |
IMPOWER holds a profound belief in the innate value of public services. We exist because public services can be - and should be - improved. For us, improving public services is fundamentally about improving the lives of citizens. |
Everyone who works for us is deeply committed to enhancing the pivotal role that public services play in our communities and society. |
WHAT WE DO |
We help public service leaders produce lasting, positive change in complex systems. |
Our approach enables organisations to make the required mindset shift - towards a focus on outcomes and working across organisational and system boundaries - and provides the tools that make this easier. |
We start with the recognition that the problems we want to tackle are complex problems. By this we mean that the challenges are not easily contained and necessitate working with diverse populations with conflicting agendas. |
We firmly believe that our approach to positive change has applicability across the breadth of public services, whether provided to individual services such as health or social care, or across a whole system or place. |
HOW WE WORK |
At the heart of our work is respect for the users of public services and the staff who work in them, and a belief in the importance of unlocking their contributions to positive change. |
Collaboration is at the heart of our operations. Our approach is hands-on, empathetic, and always in tune with the people we're aiming to support. |
Our dedicated teams have decades of delivery experience that equips us to tackle high stakes, complex challenges for public sector organisations through a mix of applied analytics, behavioural science, and primed performance. Borne from this understanding, and over two decades serving the public sector, we developed EDGEWORK®, our unique transformational approach, enabling organisations to deliver results at scale. |
OUR IMPACT |
The impact of our work is tangible and transformative. Our case studies showcase these successes, highlighting the strategic decision-making and dedicated support that go into our programmes. Examples of our case studies may be found at https://www.impower.co.uk/case-studies/ |
Across all sectors, the significance of co-production, evidence-based decision-making, and the integration of lived experiences in designing and implementing change is clear. This has led to improved outcomes and cost savings. Our work also emphasises the importance of considering children and young people's culture and life stories when assessing their needs, leading to better communication and understanding. |
OUR STRATEGIC GOALS FOR 2023/24 |
In 2023/24, we set out to: |
- Grow the organisation in terms of projects and turnover by a factor of 15-20% |
- Increase our average contract value significantly |
- Increase our average contract duration significantly |
- Encourage recognition that our approach to change and transformation has applicability across whole systems and places |
- Decrease our reliance on framework opportunities and increase our success rates with competitive tenders |
- Develop a coherent and sustained approach to the design and implementation of applied analytics and our supporting toolsets |
- Develop company and employer value propositions that build on our high rates of engagement and retention |
- Contribute significantly to social value in the communities that we work in, reinforcing our commitment to diversity, equity and inclusion |
- Contribute significantly to our clients' environment and sustainability goals, including a commitment to companywide carbon literacy |
Our results for the year demonstrate significant progress and success in meeting these strategic goals. |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
REVIEW OF PERFORMANCE |
The company continued to see growth in the year to 31st March 2024, with double digit top-line growth, for the sixth consecutive year. |
Turnover increased to £15.3m (2023: £13.1m) and profit before taxation increased to £2.5m (2023: £1.4m). |
- Turnover grew by 17% |
- Profit before taxation increased by 81% |
- Our average contract length was 8 months |
- Our digital tools and products were deployed in 23% of our commissions across the year |
- Our staff engagement rate at the end of the year was 74% |
- 49% of our staff completed Carbon Literacy Training |
LOOKING AHEAD |
We want to continue the good progress that we have made in recent years, and expect to grow by a minimum of 15%, in terms of turnover, profit, projects and employee numbers. |
In 2025 we will introduce a new range of capabilities, including investments in applied analytics and our digital toolsets. |
We will continue to diversify our offer, to cover a broader range of services, and to invest in new (for IMPOWER) capabilities. |
By the end of 2024, we aim to be accredited by the Carbon Literacy Project. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risk facing the business is the impact the macro environment will have on our clients, their end users and our staff. The risks of cost-of-living pressures, public spending restrictions (including caps on spending with public sector consultancies), the impact of the new government and the continued wars in Ukraine and Gaza, makes the future uncertain for all. |
Turnover at IMPOWER could be impacted positively or negatively by these risks, as our clients grapple to manage their limited budgets in challenging times. The business must ensure we are best placed to help our current and future clients to maximise their scarce resources and engage IMPOWER to help them to achieve that goal. |
Attracting and retaining the right talent in the business remains a risk. The employment market remains buoyant, and the Directors are committed to ensuring our staff are challenged and able to progress within IMPOWER. |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2024 |
SECTION 172(1) STATEMENT |
Our outlook |
The Directors understand the business and the evolving environment in which we operate. The strategy set by the Board is based on these key priorities - expand reach in key markets, achieve better outcomes for our clients, and nurture and grow our people. |
Our clients |
Our clients and the work we do for them are the bedrock of our business and the reason we can attract and retain our people. The relationships and trust our teams build with our clients enable us to change thinking and behaviours to facilitate improvements to their organisations and thereby improve people's lives. |
Our people |
Our people and their development are intrinsically linked to the success of our client projects and achieving our strategic goals. IMPOWER has strived to ensure that our people can work flexibly, allowing a balance of locations between office, client, and home, wherever that may be. |
We engage with our people regularly throughout the year and through a variety of means. We believe that it is important to bring our people together in person, as well as virtually and have frequent in-person events. |
It is important to the business that our people are listened to, and their views are responded to. We undertake various employee surveys during the year such as: Engagement, DEI, L&D skills and needs. We share the outputs with our employees and strive to make business decisions that show we have heard what has been said and we have responded to them. |
ON BEHALF OF THE BOARD: |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of providing management consultancy. |
DIVIDENDS |
An interim dividend of £13.076792 per A Ordinary and Employee share was paid on 28 September 2023. An interim dividend of £0.00085 per C Ordinary share was paid on 28 September 2023. The directors recommend that no final dividend be paid. |
The total distribution of dividends for the year ended 31 March 2024 was £850,000 (2023 £850,000). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2024 |
AUDITORS |
The auditors, Hartley Fowler LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
IMPOWER HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Impower Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
IMPOWER HOLDINGS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We identify and assess risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance; |
- results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures; |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
IMPOWER HOLDINGS LIMITED |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory framework that the company operates in. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation. |
In addition we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. |
As a result of performing the above, we did not identify any key matters related to the potential risk of fraud or non-compliance with laws and regulations. |
Our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- reviewing minutes of meetings of those charged with governance, reviewing internal reports and reviewing correspondence with HMRC; and |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale for any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indication of fraud or non-compliance with laws and regulations throughout the audit. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
4th Floor Tuition House |
27-37 St George's Road |
Wimbledon |
London |
SW19 4EU |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 15,323,103 | 13,070,773 |
Administrative expenses | 12,881,650 | 11,709,255 |
OPERATING PROFIT | 4 | 2,441,453 | 1,361,518 |
Interest receivable and similar income | 69,272 | 11,770 |
PROFIT BEFORE TAXATION | 2,510,725 | 1,373,288 |
Tax on profit | 5 | 612,314 | 262,742 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Share option reserve | (33,428 | ) | (19,491 | ) |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(33,428 |
) |
(19,491 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,864,983 |
1,091,055 |
Profit attributable to: |
Owners of the parent | 1,898,411 | 1,110,546 |
Total comprehensive income attributable to: |
Owners of the parent | 1,864,983 | 1,091,055 |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
CONSOLIDATED BALANCE SHEET |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 | 159,537 | 224,398 |
Tangible assets | 9 | 60,738 | 47,396 |
Investments | 10 | - | - |
220,275 | 271,794 |
CURRENT ASSETS |
Debtors | 11 | 3,395,104 | 2,668,367 |
Cash at bank | 4,309,815 | 2,597,455 |
7,704,919 | 5,265,822 |
CREDITORS |
Amounts falling due within one year | 12 | 3,601,071 | 2,215,969 |
NET CURRENT ASSETS | 4,103,848 | 3,049,853 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 4,324,123 | 3,321,647 |
PROVISIONS FOR LIABILITIES | 15 | 53,656 | 66,225 |
NET ASSETS | 4,270,467 | 3,255,422 |
CAPITAL AND RESERVES |
Called up share capital | 16 | 862 | 800 |
Share option reserve | 17 | 89,508 | 122,936 |
Retained earnings | 17 | 4,180,097 | 3,131,686 |
4,270,467 | 3,255,422 |
The financial statements were approved by the Board of Directors and authorised for issue on 30 September 2024 and were signed on its behalf by: |
S P Hanson - Director |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
COMPANY BALANCE SHEET |
31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 8 |
Tangible assets | 9 |
Investments | 10 |
CURRENT ASSETS |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings |
Company's profit for the financial year | 867,247 | 850,000 |
The financial statements were approved by the Board of Directors and authorised for issue on |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up | Share |
share | Retained | option | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 April 2022 | 800 | 2,871,140 | 142,427 | 3,014,367 |
Changes in equity |
Total comprehensive income | - | 1,110,546 | (19,491 | ) | 1,091,055 |
Dividends | - | (850,000 | ) | - | (850,000 | ) |
Balance at 31 March 2023 | 800 | 3,131,686 | 122,936 | 3,255,422 |
Changes in equity |
Issue of share capital | 62 | - | - | 62 |
Total comprehensive income | - | 1,898,411 | (33,428 | ) | 1,864,983 |
Dividends | - | (850,000 | ) | - | (850,000 | ) |
Balance at 31 March 2024 | 862 | 4,180,097 | 89,508 | 4,270,467 |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Total comprehensive income | - |
Dividends | - | ( |
) | ( |
) |
Balance at 31 March 2023 |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - |
Dividends | - | ( |
) | ( |
) |
Balance at 31 March 2024 |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,818,123 | 1,166,016 |
Tax paid | (256,121 | ) | (230,564 | ) |
Net cash from operating activities | 2,562,002 | 935,452 |
Cash flows from investing activities |
Purchase of intangible fixed assets | (28,100 | ) | (114,821 | ) |
Purchase of tangible fixed assets | (41,641 | ) | (19,559 | ) |
Sale of tangible fixed assets | 765 | - |
Interest received | 69,272 | 11,770 |
Net cash from investing activities | 296 | (122,610 | ) |
Cash flows from financing activities |
Share issue | 62 | - |
Equity dividends paid | (850,000 | ) | (850,000 | ) |
Net cash from financing activities | (849,938 | ) | (850,000 | ) |
Increase/(decrease) in cash and cash equivalents | 1,712,360 | (37,158 | ) |
Cash and cash equivalents at beginning of year |
2 |
2,597,455 |
2,634,613 |
Cash and cash equivalents at end of year | 2 | 4,309,815 | 2,597,455 |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 2,510,725 | 1,373,288 |
Depreciation charges | 119,295 | 109,091 |
Loss on disposal of fixed assets | 1,200 | 320 |
Share option reserve movement | (33,428 | ) | (19,491 | ) |
Finance income | (69,272 | ) | (11,770 | ) |
2,528,520 | 1,451,438 |
(Increase)/decrease in trade and other debtors | (726,737 | ) | 779,568 |
Increase/(decrease) in trade and other creditors | 1,016,340 | (1,064,990 | ) |
Cash generated from operations | 2,818,123 | 1,166,016 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 March 2024 |
31/3/24 | 1/4/23 |
£ | £ |
Cash and cash equivalents | 4,309,815 | 2,597,455 |
Year ended 31 March 2023 |
31/3/23 | 1/4/22 |
£ | £ |
Cash and cash equivalents | 2,597,455 | 2,634,613 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/4/23 | Cash flow | At 31/3/24 |
£ | £ | £ |
Net cash |
Cash at bank | 2,597,455 | 1,712,360 | 4,309,815 |
2,597,455 | 1,712,360 | 4,309,815 |
Total | 2,597,455 | 1,712,360 | 4,309,815 |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
1. | STATUTORY INFORMATION |
Impower Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Going concern |
The directors have, at the time of approving the financial statements, a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus they have continued to adopt the going concern basis of accounting in preparing the financial statements. |
Basis of consolidation |
The group consolidated financial statements include the financial statements of the company and its subsidiary undertakings made up to the balance sheet date. The accounts are adjusted, where appropriate, to conform to group accounting policies. Any intra-group sales and profit are eliminated fully on consolidation. |
In the parent company financial statements investments in subsidiaries are accounted for at cost less impairment. |
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. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Significant judgements and estimates |
The directors have made a number of estimates and assumptions regarding the future, and made some significant judgements in applying the accounting policies. These are shown below: |
(i) Accrued income |
The directors use their judgement in estimating amounts of work done at the balance sheet date but not invoiced. |
(ii) Deferred income |
The directors use their judgement in estimating amounts invoiced at the balance sheet date in respect of work to be undertaken in future accounting periods. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue earned under contracts to provide professional services is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance under these contracts, measured at the fair value of the right to consideration. Revenue is recognised as contract activity progresses so that for incomplete contracts it reflects the partial performance of the contractual obligations as an accrual of the right to consideration by reference to the value of work performed. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amount of revenue are included in creditors. |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Goodwill |
Goodwill was fully amortised in 2014. |
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. |
Tangible fixed assets |
Plant and machinery | - |
Basic financial instruments |
Cash in hand is measured at transaction price. |
Debtors: Trade, other debtors and amounts owed by participating interests are measured at transaction price. Trade debtors are amounts due from customers for goods or services performed in the ordinary course of business less any impairment provision. These are recognised as current assets as collection is due within one year or less. |
Creditors: Amounts falling due within one year are measured at transaction price. Trade Creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business. These are classified as current liabilities as payment is due within one year or less. |
Impairment |
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
2. | ACCOUNTING POLICIES - continued |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Dividends |
Dividends are recognised in the company's financial statements in the year in which they are approved in general meetings by the company's shareholders. Interim dividends are recognised when they are paid. |
Share capital |
Ordinary shares are classified as equity. |
Share options |
The group operates an EMI share option scheme and an unapproved share option scheme for certain employees, engaging in equity settled share based payment transactions in respect of services received. Details of the options within this scheme are set out in the Share Based Payment Transactions note. |
It is the policy of the group to grant share options at an exercise price of 1p. Year end fair market values have been determined using the Black Scholes model, which takes into account the exercise price of the option, the current share price, the risk free interest rate, the expected volatility of the share price over the life of the option and other relevant factors. This in accordance with FRS 102 'Share-based Payment'. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 7,640,286 | 6,802,304 |
Social security costs | 741,661 | 701,443 |
Other pension costs | 709,260 | 610,497 |
9,091,207 | 8,114,244 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Consultants | 63 | 62 |
Support | 18 | 18 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 805,780 | 491,025 |
Directors' pension contributions to money purchase schemes | 53,943 | 13,386 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 347,193 | 114,421 |
Pension contributions to money purchase schemes | 9,870 | 3,133 |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the group. Key management personnel compensation comprises directors' remuneration as disclosed in this note. |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Other operating leases | 287,715 | 257,000 |
Depreciation - owned assets | 26,334 | 35,616 |
Loss on disposal of fixed assets | 1,200 | 320 |
Computer software amortisation | 92,961 | 73,475 |
Auditors' remuneration | 13,000 | 13,000 |
Auditors' remuneration for non audit work | 3,532 | 23,365 |
Foreign exchange differences | 25 | 489 |
5. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 624,883 | 256,122 |
Deferred tax | (12,569 | ) | 6,620 |
Tax on profit | 612,314 | 262,742 |
UK corporation tax has been charged at 25 % (2023 - 19 %). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 2,510,725 | 1,373,288 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
627,681 |
260,925 |
Effects of: |
Expenses not deductible for tax purposes | 8,363 | 7,949 |
Capital allowances in excess of depreciation | (11,161 | ) | (12,752 | ) |
Deferred tax | (12,569 | ) | 6,620 |
Total tax charge | 612,314 | 262,742 |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
5. | TAXATION - continued |
Tax effects relating to effects of other comprehensive income |
2024 |
Gross | Tax | Net |
£ | £ | £ |
Share option reserve | (33,428 | ) | - | (33,428 | ) |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Share option reserve | (19,491 | ) | - | (19,491 | ) |
6. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
7. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Employee shares of £0.01 each | Interim | 464,906 | 464,906 |
A Ordinary shares of £0.01 each | Interim | 385,085 | 385,085 |
C Ordinary shares of £0.01 each | Interim | 9 | 9 |
850,000 | 850,000 |
8. | INTANGIBLE FIXED ASSETS |
Group |
Computer |
Goodwill | software | Totals |
£ | £ | £ |
COST |
At 1 April 2023 | 635,080 | 363,717 | 998,797 |
Additions | - | 28,100 | 28,100 |
At 31 March 2024 | 635,080 | 391,817 | 1,026,897 |
AMORTISATION |
At 1 April 2023 | 635,080 | 139,319 | 774,399 |
Amortisation for year | - | 92,961 | 92,961 |
At 31 March 2024 | 635,080 | 232,280 | 867,360 |
NET BOOK VALUE |
At 31 March 2024 | - | 159,537 | 159,537 |
At 31 March 2023 | - | 224,398 | 224,398 |
Goodwill was fully amortised in 2014. |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
9. | TANGIBLE FIXED ASSETS |
Group |
Plant and |
machinery |
£ |
COST |
At 1 April 2023 | 138,842 |
Additions | 41,641 |
Disposals | (11,912 | ) |
At 31 March 2024 | 168,571 |
DEPRECIATION |
At 1 April 2023 | 91,446 |
Charge for year | 26,334 |
Eliminated on disposal | (9,947 | ) |
At 31 March 2024 | 107,833 |
NET BOOK VALUE |
At 31 March 2024 | 60,738 |
At 31 March 2023 | 47,396 |
10. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: 8-10 Warner Street,London, England, EC1R 5HA |
Nature of business: |
% |
Class of shares: | holding |
Registered office: 4th Floor Tuition House, 27-37 St George's Road, Wimbledon, London SW19 4EU |
Nature of business: |
% |
Class of shares: | holding |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
10. | FIXED ASSET INVESTMENTS - continued |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 2,365,993 | 1,780,571 |
Other debtors | 2,535 | 77,971 |
Prepayments and accrued income | 1,026,576 | 809,825 |
3,395,104 | 2,668,367 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts | - | - |
Trade creditors | 342,157 | 429,113 |
Amounts owed to group undertakings | - | - |
Tax | 624,884 | 256,122 |
Social security and other taxes | 227,825 | 213,917 |
VAT | 420,866 | 251,478 | - | - |
Other creditors | 88,747 | 75,471 |
Accruals and deferred income | 1,896,592 | 989,868 |
3,601,071 | 2,215,969 |
13. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 158,477 | 98,600 |
Between one and five years | 1,124,090 | - |
1,282,567 | 98,600 |
14. | SECURED DEBTS |
The following secured debts are included within creditors: |
Company |
2024 | 2023 |
£ | £ |
Bank overdrafts |
Bank overdrafts are secured by a fixed and floating charge on the company's assets. |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
15. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 53,656 | 66,225 |
Group |
Deferred |
tax |
£ |
Balance at 1 April 2023 | 66,225 |
Provided during year | (12,569 | ) |
Balance at 31 March 2024 | 53,656 |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid |
Number: |
Class: |
Nominal |
2024 |
2023 |
value: | £ | £ |
37,752 | Employee shares | £0.01 | 378 | 356 |
29,448 | A Ordinary | £0.01 | 294 | 294 |
25 | B Ordinary | £1.00 | 25 | 25 |
10,000 | C Ordinary | £0.01 | 100 | 100 |
6,500 | D Ordinary | £0.01 | 65 | 25 |
862 | 800 |
During the year 2,200 Employee shares and 4,000 D Ordinary shares were issued at £0.01 each. |
A Ordinary and Employee shares have voting rights with entitlement to the balance of any dividend declared after any prior rights of the C Ordinary shares. |
B Ordinary shares have no voting rights or entitlement to any dividend declared. |
C Ordinary shares have voting rights with entitlement to 0.001% of the total amount of any dividend declared. |
D Ordinary shares have voting rights with entitlement to dividends declared on the class where the exit value would be greater than £7,000,000. |
17. | RESERVES |
Share option reserve - represents the fair value of share options granted to employees that have not yet been exercised. |
Retained earnings - represents all current and prior period retained profits and losses. |
18. | RELATED PARTY DISCLOSURES |
During the year the company entered into a commercial lease agreement in respect of new company offices. The lease is for a five year period with an annual rent of £324,000. The landlord is a Limited Liability Partnership whose members are some of the directors and shareholders of the parent company, Impower Holdings Limited. |
The key management personnel of the company are considered to be the directors of the company. Their total remuneration is disclosed in note 3. |
IMPOWER HOLDINGS LIMITED (REGISTERED NUMBER: 05532481) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2024 |
19. | SHARE-BASED PAYMENT TRANSACTIONS |
The company operates two share option schemes, an EMI scheme and an unapproved option scheme. These are in respect of employee and director services received by the subsidiary company Impower Consulting Limited, the share options being issued by this company. |
The following share options are in issue at the year end: |
Options Granted |
Brought forward |
Non conditional |
Conditional |
Options exercised / lapsed |
Carried forward |
Vesting period (from date of grant) |
Exercise price per ordinary share |
EMI |
Directors | 26,900 | - | 3,000 | (6,200 | ) | 23,700 | 0-3 years | £0.01 |
Employees | 6,800 | - | 10,500 | - | 17,300 | 0 years | £0.01 |
Total | 33,700 | - | 13,500 | (6,200 | ) | 41,000 |
Unapproved |
Directors | 8,200 | - | - | - | 8,200 | 0-3 years | £0.01 |
Total | 41,900 | - | 13,500 | (6,200 | ) | 49,200 |
In arriving at the fair value, each grant of an option is valued separately using Black Scholes Model and the resulting fair value charged to the profit and loss over the vesting period. This applies to all schemes. |
The expected life used in the model has been adjusted, based on management's best estimate for the effects on non-transferability, exercise restrictions and behavioural considerations. The following table lists the assumptions used in the model: |
Expected volatility | 20% |
Risk free interest rate | 4.01% |
Expected life of option (years) | 10 |
Exercise price | £0.01 |
Expected dividends | None |