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REGISTERED NUMBER: 03444420 (England and Wales)













Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 31 March 2024

for

Intelect (UK) Limited

Intelect (UK) Limited (Registered number: 03444420)






Contents of the Financial Statements
for the Year Ended 31 March 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Statement of Comprehensive Income 7

Balance Sheet 8

Statement of Changes in Equity 9

Cash Flow Statement 10

Notes to the Cash Flow Statement 11

Notes to the Financial Statements 12


Intelect (UK) Limited

Company Information
for the Year Ended 31 March 2024







DIRECTORS: F P Cormican
A G Shaw



SECRETARY: B G Robinson



REGISTERED OFFICE: Stephenson House
Intelect Court
Riverside Park
Middlesbrough
TS2 1QT



REGISTERED NUMBER: 03444420 (England and Wales)



SENIOR STATUTORY AUDITOR: Helen Wilson FCA



AUDITORS: Anderson Barrowcliff Limited
Statutory Auditors
Chartered Accountants
3 Kingfisher Court
Bowesfield Park
Stockton on Tees
TS18 3EX

Intelect (UK) Limited (Registered number: 03444420)

Strategic Report
for the Year Ended 31 March 2024

The directors present their strategic report for the year ended 31 March 2024.

REVIEW OF BUSINESS
The company is a specialist in electrical installations, instrumentation services, control panel design and build, pipework, plant installation and the relocation and the fabrication of mechanical systems.

The company works in the food and drink industry, water treatment, metal processing, petrochemical, manufacturing and general process.

The financial position of the company at the period end is considered to be satisfactory. The company has made pre tax profit in the year of £1,528,080 (2023: £1,532,146) and has net assets of £4,693,906 (2023: £3,697,695).

PRINCIPAL RISKS AND UNCERTAINTIES
Although the company is dependant on the food and allied industries and would be affected by the loss of a major customer or supplier, the directors believe they have taken adequate steps to mitigate these risks.

The principal risks and uncertainties facing the company and how they may affect its performance, position or future prospects are set out below:

HEALTH, SAFETY & ENVIRONMENTAL
The Company is subject to health & safety and environmental risks, implicit in the work undertaken. The board and business unit leads promote a strong health and safety culture underpinned by procedures that are continually assessed to ensure best practice. Ongoing health & safety training is provided to employees and maintained.

FINANCIAL RISK MANAGEMENT
In common with other businesses, the company aims to minimize financial risk wherever possible. The measures used includes regular monitoring of actual performance against management account estimates and ensuring adequate sources of finance are in place to meet the requirement of the business.

The company's principal financial instruments comprise bank balances, trade and subcontract creditors and trade debtors to raise funds for, and finance, the company's operations.

CREDIT RISK
Amounts receivable relate largely to applications on contracts across our stable customer base. The company has policies concerning credit offered to customers and regularly monitor amounts outstanding for both time and credit limit.

LIQUIDITY RISK
Through negotiation with clients and suppliers we aim to manage our working capital and cash availability within certain limits.

KEY PERFORMANCE INDICATORS
Key performance indicators are used to support customer service and measure trends in incoming orders and delivery performance.

ON BEHALF OF THE BOARD:





A G Shaw - Director


4 October 2024

Intelect (UK) Limited (Registered number: 03444420)

Report of the Directors
for the Year Ended 31 March 2024

The directors present their report with the financial statements of the company for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of electrical contractors.

DIVIDENDS
Interim dividends of £309,318 were paid on the Ordinary 'B' £1 shares during the year and £37,596 were paid on the Ordinary 'A' shares.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

F P Cormican
A G Shaw

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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). 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.

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 company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:





A G Shaw - Director


4 October 2024

Report of the Independent Auditors to the Members of
Intelect (UK) Limited

Opinion
We have audited the financial statements of Intelect (UK) Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 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; 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 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 directors are responsible for the other information. The other information comprises the information in the 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 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 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
Intelect (UK) Limited


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 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, 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 Statement of Directors' Responsibilities set out on page three, 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 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.

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.

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.

Based on our understanding of the industry, we have considered applicable laws and regulations which may be fundamental to the company's ability to operate or to avoid a material penalty, and we considered the extent to which non-compliance might have a material effect on the financial statements. We considered 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 the posting of inappropriate manual journal entries to manipulate financial performance, management bias in significant accounting estimates and any significant one-off or unusual transactions.

We discussed among the audit engagement team the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.


Report of the Independent Auditors to the Members of
Intelect (UK) Limited


Auditors' responsibilities for the audit of the financial statements (continued)
Audit procedures performed by the engagement team included:

- Enquiry of management, those charged with governance and the entity's solicitors around actual and potential
litigation and claims.
- Enquiry of entity staff to identify any instances of non-compliance with laws and regulations.
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with
applicable laws and regulations.
- Auditing the risk of management override of controls, including through testing journal entries and other
adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the
normal course of business.
- Challenging estimates and judgements made by management in their significant accounting estimates.
- Revenue recognition; agreeing a sample of revenue transactions to gain assurance over the occurrence and
accuracy of revenue and also to ensure revenue has been recognised in the correct period.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. The risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.




Helen Wilson FCA (Senior Statutory Auditor)
for and on behalf of Anderson Barrowcliff Limited
Statutory Auditors
Chartered Accountants
3 Kingfisher Court
Bowesfield Park
Stockton on Tees
TS18 3EX

4 October 2024

Intelect (UK) Limited (Registered number: 03444420)

Statement of Comprehensive
Income
for the Year Ended 31 March 2024

2024 2023
Notes £    £   

TURNOVER 18,848,686 16,587,071

Cost of sales 15,161,515 13,159,262
GROSS PROFIT 3,687,171 3,427,809

Administrative expenses 2,139,324 1,883,491
1,547,847 1,544,318

Other operating income 13,043 1,662
OPERATING PROFIT 3 1,560,890 1,545,980

Interest receivable and similar income 9,236 1,749
1,570,126 1,547,729

Interest payable and similar expenses 4 42,046 15,583
PROFIT BEFORE TAXATION 1,528,080 1,532,146

Tax on profit 5 184,955 195,545
PROFIT FOR THE FINANCIAL YEAR 1,343,125 1,336,601

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,343,125

1,336,601

Intelect (UK) Limited (Registered number: 03444420)

Balance Sheet
31 March 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 7 1,805,293 1,787,779

CURRENT ASSETS
Stocks 8 6,735 6,735
Debtors 9 5,325,823 6,476,054
Cash at bank and in hand 2,042,506 1,116,226
7,375,064 7,599,015
CREDITORS
Amounts falling due within one year 10 3,925,112 4,603,145
NET CURRENT ASSETS 3,449,952 2,995,870
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,255,245

4,783,649

CREDITORS
Amounts falling due after more than one
year

11

(341,173

)

(874,326

)

PROVISIONS FOR LIABILITIES 16 (140,400 ) (130,200 )

ACCRUALS AND DEFERRED INCOME 17 (79,766 ) (81,428 )
NET ASSETS 4,693,906 3,697,695

CAPITAL AND RESERVES
Called up share capital 18 577 577
Capital redemption reserve 19 523 523
Retained earnings 19 4,692,806 3,696,595
SHAREHOLDERS' FUNDS 4,693,906 3,697,695

The financial statements were approved by the Board of Directors and authorised for issue on 4 October 2024 and were signed on its behalf by:





A G Shaw - Director


Intelect (UK) Limited (Registered number: 03444420)

Statement of Changes in Equity
for the Year Ended 31 March 2024

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 April 2022 873 3,391,064 227 3,392,164

Changes in equity
Purchase of own shares - (701,949 ) 296 (701,653 )
Dividends - (329,121 ) - (329,121 )
Total comprehensive income - 1,336,601 - 1,336,601
Balance at 31 March 2023 873 3,696,595 523 3,697,991

Changes in equity
Dividends - (346,914 ) - (346,914 )
Total comprehensive income - 1,343,125 - 1,343,125
Balance at 31 March 2024 873 4,692,806 523 4,694,202

Intelect (UK) Limited (Registered number: 03444420)

Cash Flow Statement
for the Year Ended 31 March 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 2,113,937 1,017,150
Interest paid (42,046 ) (15,583 )
Tax paid (90,208 ) 308,814
Net cash from operating activities 1,981,683 1,310,381

Cash flows from investing activities
Purchase of tangible fixed assets (235,867 ) (220,300 )
Sale of tangible fixed assets 24,517 58,999
Interest received 9,236 1,749
Net cash from investing activities (202,114 ) (159,552 )

Cash flows from financing activities
New loans in year - 500,000
Loan repayments in year (531,272 ) (215,585 )
Amount introduced by directors 377,814 27,163
Amount withdrawn by directors (352,917 ) (9,380 )
Share buyback - (701,949 )
Equity dividends paid (346,914 ) (329,121 )
Net cash from financing activities (853,289 ) (728,872 )

Increase in cash and cash equivalents 926,280 421,957
Cash and cash equivalents at beginning of
year

2

1,116,226

694,269

Cash and cash equivalents at end of year 2 2,042,506 1,116,226

Intelect (UK) Limited (Registered number: 03444420)

Notes to the 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 1,528,080 1,532,146
Depreciation charges 199,302 188,474
(Profit)/loss on disposal of fixed assets (5,466 ) 40,120
Government grants (1,662 ) (1,662 )
Finance costs 42,046 15,583
Finance income (9,236 ) (1,749 )
1,753,064 1,772,912
Decrease/(increase) in trade and other debtors 1,118,466 (2,143,441 )
(Decrease)/increase in trade and other creditors (757,593 ) 1,387,679
Cash generated from operations 2,113,937 1,017,150

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 2,042,506 1,116,226
Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 1,116,226 694,269


3. ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS

At 1.4.23 Cash flow At 31.3.24
£    £    £   
Net cash
Cash at bank and in hand 1,116,226 926,280 2,042,506
1,116,226 926,280 2,042,506
Debt
Debts falling due within 1 year (288,115 ) (1,881 ) (289,996 )
Debts falling due after 1 year (874,326 ) 533,153 (341,173 )
(1,162,441 ) 531,272 (631,169 )
Total (46,215 ) 1,457,552 1,411,337

Intelect (UK) Limited (Registered number: 03444420)

Notes to the Financial Statements
for the Year Ended 31 March 2024

1. ACCOUNTING POLICIES

Basis of preparing the financial statements
Intelect (UK) Limited is a private limited company limited by shares incorporated in England, United Kingdom. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operations and principal activities are set out in the Strategic report on page 2.

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and the Republic of Ireland" (FRS102) and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention. The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Significant judgements and estimates
In the application of the Company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 of the revision, if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

Turnover
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Rendering of services
When the outcome of a transaction can be estimated reliably, turnover from services is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to actual costs compared to expected total costs.

Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% on cost and not provided
Plant and machinery - 25% on reducing balance
Motor vehicles - 25% on reducing balance

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Stocks
Stocks are valued at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items


Intelect (UK) Limited (Registered number: 03444420)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

1. ACCOUNTING POLICIES - continued
Taxation
Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Employee benefits
When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Grants
Capital based grants are included in the balance sheet as a deferred credit and released to the profit and loss in equal instalments over the estimated useful lives of the related assets. Amounts not yet released to the profit and loss are included in the balance sheet as deferred income. Revenue based grants are credited to the profit and loss when receivable.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attached to them. The grants were received using the accrual model.

Amounts recoverable on contracts
Amounts recoverable on contracts are stated at cost plus attributable profit to the extent that such profit is reasonably certain and after making provision for any foreseeable losses in completing the contracts, less payments on account received.

Intelect (UK) Limited (Registered number: 03444420)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

1. ACCOUNTING POLICIES - continued

Debtors and creditors receivable / payable within one year
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
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.

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.

2. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 4,891,873 4,447,961
Social security costs 452,490 443,647
Other pension costs 158,413 118,858
5,502,776 5,010,466

The average number of employees during the year was as follows:
2024 2023

Directors 2 3
Operational 104 96
Administrative 11 11
117 110

In addition to the disclosure above there is a further £179,957 wages costs (2023 - £150,998) included within administrative expenses in the profit and loss account.

2024 2023
£    £   
Directors' remuneration 44,297 54,283
Directors' pension contributions to money purchase schemes 31,992 16,992

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

Intelect (UK) Limited (Registered number: 03444420)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

3. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024 2023
£    £   
Depreciation - owned assets 199,345 188,474
(Profit)/loss on disposal of fixed assets (5,466 ) 40,120
Auditors remuneration 14,750 10,000

4. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 42,046 15,583

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 381,000 306,000
Overprovision in previous year (206,245 ) (207,155 )
Total current tax 174,755 98,845

Deferred tax 10,200 96,700
Tax on profit 184,955 195,545

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 1,528,080 1,532,146
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

382,020

291,108

Effects of:
Expenses not deductible for tax purposes 602 11,849
Depreciation in excess of capital allowances 6,200 99,572
Adjustments to tax charge in respect of previous periods (206,245 ) (207,155 )
Other reconciling items 2,378 171
Total tax charge 184,955 195,545

The rate of Corporation Tax shown this year is the effective rate upon the increase from 19% to 25% during the year.

Intelect (UK) Limited (Registered number: 03444420)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

6. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 37,596 289,121
Ordinary B shares of £1 each
Interim 309,318 40,000
346,914 329,121

Up to the date of signature post year end dividends authorised amounted to £37,596 for Ordinary A shares and £99,660 for Ordinary B shares.

7. TANGIBLE FIXED ASSETS
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 April 2023 1,229,750 332,970 53,921 979,087 2,595,728
Additions 4,656 37,260 8,400 185,551 235,867
Disposals - - - (64,547 ) (64,547 )
At 31 March 2024 1,234,406 370,230 62,321 1,100,091 2,767,048
DEPRECIATION
At 1 April 2023 15,491 229,803 48,336 514,319 807,949
Charge for year 16,079 29,516 6,285 147,465 199,345
Eliminated on disposal - - - (45,539 ) (45,539 )
At 31 March 2024 31,570 259,319 54,621 616,245 961,755
NET BOOK VALUE
At 31 March 2024 1,202,836 110,911 7,700 483,846 1,805,293
At 31 March 2023 1,214,259 103,167 5,585 464,768 1,787,779

Included in cost of land and buildings is freehold land of £ 426,176 (2023 - £ 0 ) which is not depreciated.

8. STOCKS
2024 2023
£    £   
Stocks - raw materials and
consumables 6,735 6,735

Intelect (UK) Limited (Registered number: 03444420)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 2,750,672 3,962,297
Amounts recoverable on contract 2,154,166 1,716,389
Other debtors 355,169 700,000
Directors' current accounts 44,062 66,280
S455 tax recoverable 21,541 31,088
Prepayments 213 -
5,325,823 6,476,054

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 12) 289,996 288,115
Trade creditors 1,178,016 1,994,383
Taxation 381,000 306,000
Social security and other taxes 170,957 189,987
VAT 904,120 710,415
Other creditors - 204
Directors' current accounts 2,679 -
Accruals and deferred income 998,344 1,114,041
3,925,112 4,603,145

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2024 2023
£    £   
Bank loans (see note 12) 341,173 874,326

12. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans - less than 1 yr 289,996 288,115

Amounts falling due between one and two years:
Bank loans - 1-2 years 135,004 289,996

Amounts falling due between two and five years:
Bank loans - 2-5 years 206,169 584,330

The bank loan balance consists of two loans. The first loan is repayable over 72 months and interest is charged at 2.53% above base rate. Note a large one off repayment has been made during the year to reduce this term. The second loan is repayable over 60 months and interest is charged at 7.06% per annum.

Intelect (UK) Limited (Registered number: 03444420)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

13. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 6,619 5,126
Between one and five years 19,608 428
26,227 5,554

14. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank Loans 631,170 1,162,441

The bank loans are secured by a fixed floating charge over the freehold property and all assets of the company.

Also, Intelect (UK) Limited has an intercompany guarantee in place with Intelect Engineering Limited, a related party.

15. FINANCIAL INSTRUMENTS

The carrying amounts of the company's financial instruments are as follows:

2024 2023
£    £   
Financial liabilities
Measured at amortised cost
- Bank loans (see note 12) 631,170 1,162,441
631,170 1,162,141


The expenses attributable to the company's financial instruments are summarised as follows:

2024 2023
£    £   

Total interest expense for financial liabilities at amortised cost 42,046 15,583

16. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 140,400 130,200

Intelect (UK) Limited (Registered number: 03444420)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

16. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 April 2023 130,200
Provided during year 10,200
Balance at 31 March 2024 140,400

17. ACCRUALS AND DEFERRED INCOME
2024 2023
£    £   
Deferred government grants 79,766 81,428

18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
527 Ordinary £1 527 527
50 Ordinary B £1 50 50
577 577

19. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 April 2023 3,696,595 523 3,697,118
Profit for the year 1,343,125 1,343,125
Dividends (346,914 ) (346,914 )
At 31 March 2024 4,692,806 523 4,693,329

Retained earnings
Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

Capital redemption reserve
A statutory, non-distributable reserve into which amounts are transferred following the redemption or purchase of a company's own shares out of distributable profits.
In 2021 the company purchased 202 Ordinary A shares and 25 Ordinary B shares at £1 each for a consideration of £229,500.
In 2022 the company purchased 271 Ordinary A shares and 25 Ordinary B shares at £1 each for a consideration of £701,949.

20. PENSION COMMITMENTS

The company operates a defined contribution scheme for the benefit of its employees and directors. The assets of the scheme are held separately from those of the company. The contributions are charged to the profit and loss account as they accrue. The charge for the year ended 31 March 2024 was £111,421 (2023 - £101,866). Contributions outstanding at the year end amounted to £Nil (2023 - £Nil).

Intelect (UK) Limited (Registered number: 03444420)

Notes to the Financial Statements - continued
for the Year Ended 31 March 2024

21. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

Included in debtors are the following loans to directors:



At 1 April 2023

Amount advanced

Amount repaid
At 31March
2024
££££

Director 113,835165,115(178,950)-
Director 252,445187,802(196,185)44,062
Total66,280352,917(375,135)44,062

The above loan is unsecured, interest free and repayable on demand.

22. RELATED PARTY DISCLOSURES

A company under common control has the following related party trading:

£   
Trade debtors outstanding as at 31 March 2024 43,410
Trade creditors outstanding as at 31 March 2024 (327,125 )
Sales in the year to 31 March 2024 515,175
Purchases in the year to 31 March 2024 (809,465 )

Key management personnel is considered to be the directors. Details of remuneration can be found in note 3 to the financial statements.

23. ULTIMATE CONTROLLING PARTY

The company is considered to be be under the control of the directors.