12 false false false false true false false false false false false true false false false false false false No description of principal activity 2023-04-01 Sage Accounts Production Advanced 2023 - FRS102_2023 560,304 819,460 89,387 89,387 89,387 11,789 1,653 13,442 xbrli:pure xbrli:shares iso4217:GBP 04423304 2023-04-01 2024-03-31 04423304 2024-03-31 04423304 2023-03-31 04423304 2022-04-01 2023-03-31 04423304 2023-03-31 04423304 2022-03-31 04423304 bus:RegisteredOffice 2023-04-01 2024-03-31 04423304 bus:OrdinaryShareClass1 2023-04-01 2024-03-31 04423304 bus:LeadAgentIfApplicable 2023-04-01 2024-03-31 04423304 bus:Director1 2023-04-01 2024-03-31 04423304 bus:Director2 2023-04-01 2024-03-31 04423304 bus:Director3 2023-04-01 2024-03-31 04423304 bus:CompanySecretary1 2023-04-01 2024-03-31 04423304 core:WithinOneYear 2024-03-31 04423304 core:WithinOneYear 2023-03-31 04423304 core:LandBuildings 2023-03-31 04423304 core:PlantMachinery 2023-03-31 04423304 core:FurnitureFittings 2023-03-31 04423304 core:MotorVehicles 2023-03-31 04423304 core:LandBuildings 2024-03-31 04423304 core:PlantMachinery 2024-03-31 04423304 core:FurnitureFittings 2024-03-31 04423304 core:MotorVehicles 2024-03-31 04423304 core:DeferredTaxation 2023-04-01 2024-03-31 04423304 core:PlantMachinery 2023-04-01 2024-03-31 04423304 core:FurnitureFittings 2023-04-01 2024-03-31 04423304 core:MotorVehicles 2023-04-01 2024-03-31 04423304 core:UKTax 2023-04-01 2024-03-31 04423304 core:UKTax 2022-04-01 2023-03-31 04423304 core:RetainedEarningsAccumulatedLosses 2023-03-31 04423304 core:RetainedEarningsAccumulatedLosses 2022-03-31 04423304 core:RetainedEarningsAccumulatedLosses 2024-03-31 04423304 core:RetainedEarningsAccumulatedLosses 2023-03-31 04423304 core:ShareCapital 2024-03-31 04423304 core:ShareCapital 2023-03-31 04423304 core:CostValuation core:Non-currentFinancialInstruments 2023-03-31 04423304 core:DisposalsRepaymentsInvestments core:Non-currentFinancialInstruments 2024-03-31 04423304 core:Non-currentFinancialInstruments 2023-03-31 04423304 core:AcceleratedTaxDepreciationDeferredTax 2024-03-31 04423304 core:AcceleratedTaxDepreciationDeferredTax 2023-03-31 04423304 core:LandBuildings 2023-03-31 04423304 core:PlantMachinery 2023-03-31 04423304 core:FurnitureFittings 2023-03-31 04423304 core:MotorVehicles 2023-03-31 04423304 core:DeferredTaxation 2023-03-31 04423304 core:DeferredTaxation 2024-03-31 04423304 countries:UnitedKingdom 2023-04-01 2024-03-31 04423304 countries:UnitedKingdom 2022-04-01 2023-03-31 04423304 countries:RestWorldOutsideUK 2023-04-01 2024-03-31 04423304 countries:RestWorldOutsideUK 2022-04-01 2023-03-31 04423304 bus:LeadAgentIfApplicable 2022-04-01 2023-03-31 04423304 bus:HighestPaidDirector 2023-04-01 2024-03-31 04423304 bus:HighestPaidDirector 2022-04-01 2023-03-31 04423304 bus:MediumEntities 2023-04-01 2024-03-31 04423304 bus:Audited 2023-04-01 2024-03-31 04423304 bus:Medium-sizedCompaniesRegimeForAccounts 2023-04-01 2024-03-31 04423304 bus:PrivateLimitedCompanyLtd 2023-04-01 2024-03-31 04423304 bus:FullAccounts 2023-04-01 2024-03-31 04423304 bus:OrdinaryShareClass1 2024-03-31 04423304 bus:OrdinaryShareClass1 2023-03-31 04423304 bus:CompanySecretary1 1 2023-04-01 2024-03-31 04423304 core:AllAssociates 2023-04-01 2024-03-31 04423304 1 2023-04-01 2024-03-31
COMPANY REGISTRATION NUMBER: 04423304
Inspired Technology Services Limited
Financial Statements
31 March 2024
Inspired Technology Services Limited
Financial Statements
Year ended 31 March 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the members
6
Statement of income and retained earnings
10
Statement of financial position
11
Statement of cash flows
12
Notes to the financial statements
13
Inspired Technology Services Limited
Officers and Professional Advisers
The board of directors
I M H Burns
E P Burns
M D Gilligan
Company secretary
K L Gates
Registered office
Camburgh House
27 New Dover Road
Canterbury
Kent
CT1 3DN
Auditor
Burgess Hodgson LLP
Chartered accountants & statutory auditor
Camburgh House
27 New Dover Road
Canterbury
Kent
CT1 3DN
Bankers
Barclays Bank PLC
Leicester
Leicestershire
United Kingdom
LE87 2BB
Inspired Technology Services Limited
Strategic Report
Year ended 31 March 2024
Overview and Strategy Founded in 2002, Inspired Technology Services specialises in supporting businesses in the planning, acquisition, installation, management, utilisation and decommission of their technology, providing access to a high level of consultancy, engineering, support and procurement. Inspired is a leading 360 degree technology partner for IT in education and business providing IT products and IT services. Our strategy is to use our independence to leverage competitive advantage. We find opportunities to negotiate a great deal, even when procurement policies dictate brands and specifications. We are proud to enjoy a close working relationship with all the vendors whom we work with. They include global brands, and selected niche manufacturers. Review of the year
2024 2023
£ £
Turnover 20,255,620 23,956,703
Gross Profit 2,723,391 2,625,476
Profit before tax 751,676 1,021,654
The company's balance sheet at the year end shows shareholders funds of £3,970,702 (2023: £3,410,398) and demonstrates the directors' intentions to continue to retain significant working capital within the business to support the ongoing advancement of the company. Future Development The management team are committed to continue investing in the growth and evolution of the business and the creation of new revenue streams. By constantly reviewing our business strategies and customer proposition, we aim to ensure that they remain perfectly aligned with both prevailing market demands and industry trends. Risks and uncertainties The directors have considered various relevant market and economic risks that may materially impact the business including supplier and customer credit terms, changes in interest rates, cashflow, pricing, market competition and current business trading trends to understand and model the financial impact. The directors have also considered the impact of increased interest rates, inflation and global affairs, to include the events in Ukraine with particular reference to how these may disrupt their business model, strategy and operations. It is clear that there is a worldwide impact on the cost of particular goods, to include fuel, which in turn has increased the base costs of consumables in the business. The directors have considered the effect and believe that this will not significantly impact the ability to trade or going concern. Taking into account all of the above risks and the options available to mitigate them, the directors are satisfied that the financial statements should continue to be prepared on a going concern basis and that there are no material foreseeable risks to the business that haven't been assessed or disclosed.
This report was approved by the board of directors on 24 September 2024 and signed on behalf of the board by:
E P Burns
M D Gilligan
Director
Director
Registered office:
Camburgh House
27 New Dover Road
Canterbury
Kent
CT1 3DN
Inspired Technology Services Limited
Directors' Report
Year ended 31 March 2024
The directors present their report and the financial statements of the company for the year ended 31 March 2024 .
Directors
The directors who served the company during the year were as follows:
I M H Burns
E P Burns
M D Gilligan
Dividends
The directors do not recommend the payment of a dividend.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 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 judgments 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 24 September 2024 and signed on behalf of the board by:
E P Burns
M D Gilligan
Director
Director
Registered office:
Camburgh House
27 New Dover Road
Canterbury
Kent
CT1 3DN
Inspired Technology Services Limited
Independent Auditor's Report to the Members of Inspired Technology Services Limited
Year ended 31 March 2024
Opinion
We have audited the financial statements of Inspired Technology Services Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, 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 FRS 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 March 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 strategic report and the directors' report for the financial year 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.
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 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 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We identify and assess the 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 have considered; the nature of the industry, control environment and business performance with particular reference to the Company's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets. We also consider the results of our enquiries of management, relating to their own identification and assessment of the risks of irregularities and possible related fraud. This includes reviewing available documentation on their policies and procedures and performing tests of controls to evidence their effectiveness. Throughout the audit testing we are considering the incentives that may exist within the organisation for fraud. Key areas include timing of recognising income around the year end, posting of unusual journals and manipulating the Company's performance measures to meet remuneration targets and bank covenants. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We ensure we have an understanding of the relevant laws and regulations and remain alert to possible non-compliance throughout the audit. Despite proper planning and audit work in accordance with auditing standards there are inherent limitations and unavoidable risk that we may not detect some irregularities and material misstatements in the financial statements. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 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 members as a body, for our audit work, for this report, or the opinions we have formed.
Andrew Collyer
(Senior Statutory Auditor)
For and on behalf of
Burgess Hodgson LLP
Chartered accountants & statutory auditor
Camburgh House
27 New Dover Road
Canterbury
Kent
CT1 3DN
24 September 2024
Inspired Technology Services Limited
Statement of Income and Retained Earnings
Year ended 31 March 2024
2024
2023
Note
£
£
Turnover
4
20,255,620
23,956,703
Cost of sales
17,532,229
21,331,227
-------------
-------------
Gross profit
2,723,391
2,625,476
Administrative expenses
1,972,215
1,611,125
Other operating income
5
500
------------
------------
Operating profit
6
751,676
1,014,351
Other interest receivable and similar income
10
7,303
------------
------------
Profit before taxation
751,676
1,021,654
Tax on profit
11
191,372
202,194
---------
------------
Profit for the financial year and total comprehensive income
560,304
819,460
---------
------------
Retained earnings at the start of the year
3,410,397
2,590,937
------------
------------
Retained earnings at the end of the year
3,970,701
3,410,397
------------
------------
All the activities of the company are from continuing operations.
Inspired Technology Services Limited
Statement of Financial Position
31 March 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
12
1,763,002
1,758,762
Investments
13
89,387
------------
------------
1,763,002
1,848,149
Current assets
Stocks
14
217,078
341,469
Debtors
15
2,824,783
3,691,658
Cash at bank and in hand
1,308,547
1,805,431
------------
------------
4,350,408
5,838,558
Creditors: amounts falling due within one year
16
2,129,266
4,264,520
------------
------------
Net current assets
2,221,142
1,574,038
------------
------------
Total assets less current liabilities
3,984,144
3,422,187
Provisions
Taxation including deferred tax
17
13,442
11,789
------------
------------
Net assets
3,970,702
3,410,398
------------
------------
Capital and reserves
Called up share capital
21
1
1
Profit and loss account
3,970,701
3,410,397
------------
------------
Shareholders funds
3,970,702
3,410,398
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 24 September 2024 , and are signed on behalf of the board by:
E P Burns
M D Gilligan
Director
Director
Company registration number: 04423304
Inspired Technology Services Limited
Statement of Cash Flows
Year ended 31 March 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
560,304
819,460
Adjustments for:
Depreciation of tangible assets
34,490
19,185
Gain on financial assets at fair value through profit or loss
(7,303)
Tax on profit
191,372
202,194
Accrued (income)/expenses
( 226,033)
263,230
Changes in:
Stocks
124,391
( 172,012)
Trade and other debtors
866,875
( 1,119,607)
Trade and other creditors
( 1,904,159)
1,428,748
------------
------------
Cash generated from operations
( 352,760)
1,433,895
Tax paid
( 194,781)
( 135,700)
---------
------------
Net cash (used in)/from operating activities
( 547,541)
1,298,195
---------
------------
Cash flows from investing activities
Purchase of tangible assets
( 38,730)
( 1,738,115)
Proceeds from sale of other investments
89,387
241,958
---------
------------
Net cash from/(used in) investing activities
50,657
( 1,496,157)
---------
------------
Cash flows from financing activities
Proceeds from borrowings
( 100)
---------
------------
Net cash used in financing activities
( 100)
---------
------------
Net decrease in cash and cash equivalents
( 496,884)
( 198,062)
Cash and cash equivalents at beginning of year
1,805,431
2,003,493
------------
------------
Cash and cash equivalents at end of year
1,308,547
1,805,431
------------
------------
Inspired Technology Services Limited
Notes to the Financial Statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Camburgh House, 27 New Dover Road, Canterbury, Kent, CT1 3DN.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
The directors have undertaken specific analysis into the potential business impact of COVID-19 on costs and revenues and how these might also be managed and mitigated. They have also considered the potential business impact of the events in Ukraine with particular reference to how these may disrupt their business model, strategy and operations. The directors are satisfied that these reviews showed no material risks to the business and conclude that the financial statements should continue to be prepared on a going concern basis.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The key assumptions and other sources of estimation uncertainty that have a significant risk are as follows: (i) Purchase recognition - Directors recognise the purchase when significant risk and reward of ownership are passed to them a purchaser. they consider this has taken place on delivery and therefore record all deliveries not yet invoices as accruals at the year end. (ii) Useful economic life of fixed assets - The annual depreciation charges are based upon management's assessment of the useful economic lives and residual values of the company's tangible assets. these are re-assessed annually and amended where necessary.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant & Machinery
-
5 year straight line
Fixtures & Fittings
-
3 to 5 year straight line
Motor Vehicles
-
5 year reducing balance
Investments
Fixed asset investments held by the company are in gold and silver and are measured at fair value with changes in fair value being recognised in profit or loss.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense.
Financial instruments
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2024
2023
£
£
Sale of goods
20,255,620
23,956,703
-------------
-------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
£
£
United Kingdom
18,215,012
22,947,069
Overseas
2,040,608
1,009,634
-------------
-------------
20,255,620
23,956,703
-------------
-------------
5. Other operating income
2024
2023
£
£
Other operating income
500
----
----
6. Operating profit
Operating profit or loss is stated after charging:
2024
2023
£
£
Depreciation of tangible assets
34,490
19,185
Impairment of trade debtors
114,456
14,400
Foreign exchange differences
56,505
11,206
---------
--------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
9,000
8,500
-------
-------
Fees payable to the company's auditor and its associates for other services:
Other non-audit services
6,047
4,234
-------
-------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
5
5
Administrative staff
4
4
Management staff
3
3
----
----
12
12
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
1,039,973
878,897
Social security costs
119,591
103,746
Other pension costs
12,391
15,044
------------
---------
1,171,955
997,687
------------
---------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
495,790
500,470
Company contributions to defined contribution pension plans
3,645
5,402
---------
---------
499,435
505,872
---------
---------
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
347,418
354,535
Company contributions to defined contribution pension plans
880
2,250
---------
---------
348,298
356,785
---------
---------
10. Other interest receivable and similar income
2024
2023
£
£
Gain on fair value adjustment of financial assets at fair value through profit or loss
7,303
----
-------
11. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
189,719
195,106
Adjustments in respect of prior periods
( 411)
---------
---------
Total current tax
189,719
194,695
---------
---------
Deferred tax:
Origination and reversal of timing differences
1,653
7,499
---------
---------
Tax on profit
191,372
202,194
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
751,676
1,021,654
---------
------------
Profit on ordinary activities by rate of tax
187,919
194,114
Effect of expenses not deductible for tax purposes
809
4,957
Effect of capital allowances and depreciation
991
( 3,965)
Effect of deferred tax due to capital allowances
1,653
7,499
Under/over provision in previous year
(411)
---------
------------
Tax on profit
191,372
202,194
---------
------------
Factors that may affect future tax expense
Corporation tax increases to 25% (effective from 1 April 2023) were substantively enacted on 24 May 2021. The deferred tax liability has therefore been calculated based on the enacted rates.
12. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
1,685,035
215
206,601
15,605
1,907,456
Additions
2,938
20,492
15,300
38,730
------------
-------
---------
--------
------------
At 31 March 2024
1,685,035
3,153
227,093
30,905
1,946,186
------------
-------
---------
--------
------------
Depreciation
At 1 April 2023
68
142,588
6,038
148,694
Charge for the year
554
29,269
4,667
34,490
------------
-------
---------
--------
------------
At 31 March 2024
622
171,857
10,705
183,184
------------
-------
---------
--------
------------
Carrying amount
At 31 March 2024
1,685,035
2,531
55,236
20,200
1,763,002
------------
-------
---------
--------
------------
At 31 March 2023
1,685,035
147
64,013
9,567
1,758,762
------------
-------
---------
--------
------------
13. Investments
Other investments other than loans
£
Cost
At 1 April 2023
89,387
Disposals
( 89,387)
--------
At 31 March 2024
--------
Impairment
At 1 April 2023 and 31 March 2024
--------
Carrying amount
At 31 March 2024
--------
At 31 March 2023
89,387
--------
14. Stocks
2024
2023
£
£
Raw materials and consumables
217,078
341,469
---------
---------
15. Debtors
2024
2023
£
£
Trade debtors
2,455,882
3,552,545
Prepayments and accrued income
358,986
13,046
Directors loan account
9,915
9,915
Other debtors
116,152
------------
------------
2,824,783
3,691,658
------------
------------
16. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,278,841
2,603,250
Accruals and deferred income
502,201
728,234
Corporation tax
190,044
195,106
Social security and other taxes
137,837
331,605
Other creditors
20,343
406,325
------------
------------
2,129,266
4,264,520
------------
------------
The company has an overdraft facility with its bank which is not currently being utilised and is secured by a fixed and floating charge over the assets of the company.
17. Provisions
Deferred tax (note 18)
£
At 1 April 2023
11,789
Additions
1,653
--------
At 31 March 2024
13,442
--------
18. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 17)
13,442
11,789
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
13,442
11,789
--------
--------
19. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 12,391 (2023: £ 15,044 ).
20. Financial instruments
The carrying amount for each category of financial instrument is as follows:
2024
2023
£
£
Financial assets measured at fair value through profit or loss
Investments measured at fair value through profit and loss
89,387
----
--------
21. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
1
1
1
1
----
----
----
----
22. Analysis of changes in net debt
At 1 Apr 2023
Cash flows
At 31 Mar 2024
£
£
£
Cash at bank and in hand
1,805,431
(496,884)
1,308,547
------------
---------
------------
23. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
5,359
----
-------
24. Directors' advances, credits and guarantees
During the period a director were advanced £nil (2023: £85,015) and made repayments of £nil (2023: £75,000). At the year end a director owed the company £10,015 (2023: £10,015) with another being owed £100 (2023: £100). There is no interest charged on these loans.
25. Related party transactions
At the year end the company had trade debtors and trade creditors of £40,108 and £244,54 respectively (2023: £698,539 trade debtor and £1,014,122 trade creditor) with companies associated through common control. During the year the company had sales and purchases of £961,151 (2023: £4,499,024) and £4,757,933 (2023: £4,184,427) respectively with companies associated through common control and directorship. During the year the company received management charges of £202,977 (2023: £264,026) from companies associated through common control and directorship. At the year end the company had an accruals balance of £9,467(2023: £190,000) in respect of these charges. At the year end the company had informal loan balances receivable and payable of £nil and £15,287 respectively (2023: £115,285 receivable and £398,914 payable) with companies associated through common control and directorship.
26. Controlling party
During the year the company was under the control of Mr G H Q Burns .