Company registration number 14076249 (England and Wales)
INSPIRIT CARREY TOPCO LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 JUNE 2024
INSPIRIT CARREY TOPCO LIMITED
COMPANY INFORMATION
Directors
A Farrant
W Stamp
Company number
14076249
Registered office
2 Babmaes Street
London
SW1Y 6HD
Auditor
Azets Audit Services Limited
Triune Court
Monks Cross Drive
York
YO32 9GZ
INSPIRIT CARREY TOPCO LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
INSPIRIT CARREY TOPCO LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 29 JUNE 2024
- 1 -

The directors present the strategic report for the period ended 29 June 2024.

Principal activities

The principal activity of the group is that of the design, manufacture and sale of specialist cabling and electromechanical products and components.

 

The group has no branches outside of the United Kingdom.

Review of the business

The period under review resulted in an increase in turnover of 13% as a result of a full year trade in the period ended 29th June 2024 compared to a shortened period of post-acquisition trade (10.5 months) in the period ended 1st July 2023. Actual year on year trade as reported in the subsidiaries declined by 8%. Gross margin significantly improved from 17% in 2023 to 32% in 2024. This was achieved by reducing the cost base at both the Scunthorpe and Stoke sites and improving efficiencies. The business also improved the systems in managing stock, enabling a stock reduction of over £1.1m in the year.

 

The group continues to invest in its people and capabilities to further increase efficiency, flexibility, and cost competitiveness to strengthen its electro-mechanical and cable harness design and manufacturing capabilities.

 

In the electromechanical products and components market, the group's key objective is to continue in moving away from high volume low margin customers to lower volume but higher margin specialist niche markets. This includes moving into new sectors and offering value added services such as design and engineering support to differentiate its offering from its competitors.

 

In the specialist cabling market, the group's key objective is to continue to remain focussed upon further developing its presence in aerospace, defence, medical, industrial and space markets.

 

This focus has resulted in further strengthening its relationships with key customers in these sectors and a reduction in business conducted with customers that do not meet the strategic objectives of the business. The change in customer mix along with improvements in efficiency is leading to an increase in the gross margin profile of the business.

 

Principal risks and uncertainties

Set out below are the Groups' seven major business risks, together with the systems and initiatives in place to address them:

 

Market risk

The electro-mechanical products market is subject to fluctuations in demand by customers. These fluctuations are linked to the economic cycle. The Group actively seeks to manage its exposure to these fluctuations by monitoring stock levels, restricting its dependence on large customers and maintaining close relationships with suppliers.

 

Credit risk

The Group assesses the creditworthiness of new customers before commencing trade with them. Based on this and the customer's capital base, authorised limits of credit are set. A proactive approach to the identification and control of bad and doubtful debts is maintained and significant credit risks are highlighted to the board.

 

Interest Rate Risk

The Group have taken out interest bearing loans with a mixture of fixed and floating interest rates. The proportion of the combined Group's debt subject to fixed rates is 53%.

 

INSPIRIT CARREY TOPCO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
- 2 -
Principal Risks and Uncertainties (continued)

 

Operational risk

This relates to the risk of financial loss and damage to reputation resulting from inadequate or failed internal processes and systems and from the actions of people or external events. The Group manages this risk through appropriate controls and loss mitigation actions. Examples include:

 

 

In addition, specialist support functions provide expertise in ensuring the Group adheres to local regulatory and legal requirements.

 

Liquidity risk

This relates to the risk that the Group is unable to fund its requirements due to insufficient banking facilities. During the period under review the Group funded its day-to-day operations through a mixture of retained profits and inter-company current account facilities, and its long term assets through inter-company financing.

 

The Group's policy on liquidity is to ensure that there are sufficient medium and long term committed borrowing facilities to meet funding requirements. It is Group policy not to enter into speculative transactions.

 

Exchange Rate Risk

The Group sells its products and purchases its material primarily in sterling. In addition, there are some transactions undertaken in US dollars and Euros. The Group manages its exchange exposure through natural hedging and keeps under review further risk mitigation through forward contracts.

 

Inflation Risk

The Group manages inflation risks through passing on material price increases where possible and by monitoring input costs closely.

 

Going concern

The directors have, at the time of approving the financial statements, a reasonable expectation that Inspirit Carey Topco Limited and its subsidiary undertakings, (the “Group”), has adequate resources to continue in operational existence for the foreseeable future.

 

The Group has prepared operating entity forecasts and projections up to 30 November 2025 which cover at least 12 months from the date of approval of the financial statements. The assumptions used in these forecasts are believed to be reasonable and prudent, include cost savings from fully completed restructuring programmes within the Group and show that the Group is now cashflow positive.

 

The Group has debt facilities from a third-party lender. Subsequent to the period end the third party covenants have been re-set providing additional liquidity and headroom for the Group. In addition, Inspirit Capital, the ultimate owner of the Group has provided a letter indicating that it remains supportive of the business and that its current intention is to support the Group should additional funding be required (subject to Inspirit Capital Investment committee approval).

 

The directors have therefore concluded that they have an expectation that the company has adequate resources to continue in the near future. As such, they therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.

INSPIRIT CARREY TOPCO LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
- 3 -

Key performance indicators

The directors focus on two key indicators of financial performance, sales and gross profit margin. These are monitored regularly with explanations sought for variances against budgets, forecasts, and prior year.

 

 

2024

2023

 

Sales

£16,591k

£14,693k

 

Sales change

13%

N/A

 

Gross profit

£5,276k

£2,418k

 

Gross profit margin

32%

17%

 

 

In addition, detailed financial statements are reviewed each month by the leadership team and the board of directors. These provide analysis of bookings, sales, cost of sales, gross profit and operating expenses, each measured against budget, forecast and prior year. Working capital is also closely monitored.

Future developments

The directors anticipate that the business environment will remain competitive. However, the focus on developing its presence in aerospace, defence, medical, industrial and space markets is beginning to deliver margin benefits. This focus, combined with improving operation performance, underpins the board’s confidence in improved business performance in the medium term.

On behalf of the board

A Farrant
Director
18 October 2024
INSPIRIT CARREY TOPCO LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 29 JUNE 2024
- 4 -

The directors present their annual report and financial statements for the period ended 29 June 2024.

Results and dividends

The results for the period are set out on page 9.

Directors

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

A Farrant
W Stamp
Auditor

The auditor, Azets Audit Services Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

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

On behalf of the board
A Farrant
Director
18 October 2024
INSPIRIT CARREY TOPCO LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 29 JUNE 2024
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

INSPIRIT CARREY TOPCO LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INSPIRIT CARREY TOPCO LIMITED
- 6 -
Opinion

We have audited the financial statements of Inspirit Carrey Topco Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 29 June 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

INSPIRIT CARREY TOPCO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INSPIRIT CARREY TOPCO LIMITED
- 7 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

INSPIRIT CARREY TOPCO LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INSPIRIT CARREY TOPCO LIMITED
- 8 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we 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.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

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.  This 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 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.

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 for the opinions we have formed.

Martin Davey (Senior Statutory Auditor)
For and on behalf of Azets Audit Services Limited
21 October 2024
Chartered Accountants
Statutory Auditor
Triune Court
Monks Cross Drive
York
YO32 9GZ
INSPIRIT CARREY TOPCO LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 29 JUNE 2024
- 9 -
Period
Period
ended
ended
29 June
1 July
2024
2023
Notes
£000
£000
Turnover
3
16,591
14,693
Cost of sales
(11,315)
(12,275)
Gross profit
5,276
2,418
Administrative expenses
(6,117)
(4,877)
Exceptional items
4
247
(105)
Operating loss
5
(594)
(2,564)
Interest payable and similar expenses
9
(343)
(285)
Amounts written off current borrowings
10
-
92
Loss before taxation
(937)
(2,757)
Tax on loss
11
(15)
(442)
Loss for the financial period
(952)
(3,199)
Loss and total comprehensive income for the period is attributable to:
- Owners of the parent company
(823)
(2,796)
- Non-controlling interests
(129)
(403)
(952)
(3,199)

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

The notes on pages 15 to 30 form part of these financial statements.

INSPIRIT CARREY TOPCO LIMITED
GROUP BALANCE SHEET
AS AT
29 JUNE 2024
29 June 2024
- 10 -
2024
2023
Notes
£000
£000
£000
£000
Fixed assets
Goodwill
13
2
19
Negative goodwill
13
(1,300)
(1,010)
Net goodwill
(1,298)
(991)
Tangible assets
14
796
871
(502)
(120)
Current assets
Stocks
15
2,282
3,433
Debtors
16
3,811
4,106
Cash at bank and in hand
26
76
6,119
7,615
Creditors: amounts falling due within one year
17
(5,113)
(5,217)
Net current assets
1,006
2,398
Total assets less current liabilities
504
2,278
Creditors: amounts falling due after more than one year
18
(4,326)
(4,864)
Provisions for liabilities
Provisions
20
-
0
134
-
(134)
Net liabilities
(3,822)
(2,720)
Capital and reserves
Called up share capital
22
-
0
-
0
Profit and loss reserves
(3,888)
(2,915)
Equity attributable to owners of the parent company
(3,888)
(2,915)
Non-controlling interests
66
195
(3,822)
(2,720)
The financial statements were approved by the board of directors and authorised for issue on 18 October 2024 and are signed on its behalf by:
18 October 2024
A  Farrant
Director
Company registration number 14076249 (England and Wales)
INSPIRIT CARREY TOPCO LIMITED
COMPANY BALANCE SHEET
AS AT 29 JUNE 2024
29 June 2024
- 11 -
2024
2023
Notes
£000
£000
£000
£000
Current assets
Debtors
16
1,784
1,632
Net current assets
1,784
1,632
Creditors: amounts falling due after more than one year
18
(1,769)
(1,619)
Net assets
15
13
Capital and reserves
Called up share capital
22
-
0
-
0
Profit and loss reserves
15
13
Total equity
15
13

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £152k (2023 - £132k).

The financial statements were approved by the board of directors and authorised for issue on 18 October 2024 and are signed on its behalf by:
18 October 2024
A  Farrant
Director
Company registration number 14076249 (England and Wales)
INSPIRIT CARREY TOPCO LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 29 JUNE 2024
- 12 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£000
£000
£000
£000
£000
Balance at 28 April 2022
-
0
-
0
-
-
-
Period ended 1 July 2023:
Loss and total comprehensive income
-
(2,796)
(2,796)
(403)
(3,199)
Dividends
12
-
(119)
(119)
-
(119)
Acquisition of subsidiary
-
-
-
598
598
Balance at 1 July 2023
-
0
(2,915)
(2,915)
195
(2,720)
Period ended 29 June 2024:
Loss and total comprehensive income
-
(823)
(823)
(129)
(952)
Dividends
12
-
(150)
(150)
-
(150)
Balance at 29 June 2024
-
0
(3,888)
(3,888)
66
(3,822)
INSPIRIT CARREY TOPCO LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 29 JUNE 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£000
£000
£000
Balance at 28 April 2022
-
0
-
0
-
Period ended 1 July 2023:
Profit and total comprehensive income for the period
-
132
132
Dividends
12
-
(119)
(119)
Balance at 1 July 2023
-
0
13
13
Period ended 29 June 2024:
Profit and total comprehensive income
-
152
152
Dividends
12
-
(150)
(150)
Balance at 29 June 2024
-
0
15
15
INSPIRIT CARREY TOPCO LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 29 JUNE 2024
- 14 -
2024
2023
Notes
£000
£000
£000
£000
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
1,085
(1,517)
Interest paid
(343)
(285)
Income taxes paid
(15)
-
0
Net cash inflow/(outflow) from operating activities
727
(1,802)
Investing activities
Purchase of business
-
(3,052)
Purchase of tangible fixed assets
(117)
(182)
Proceeds from disposal of tangible fixed assets
-
5
Net cash used in investing activities
(117)
(3,229)
Financing activities
Issue of preference shares
-
1,500
Net movement on borrowings
(300)
578
Net movement on bank loans
(360)
3,029
Net cash (used in)/generated from financing activities
(660)
5,107
Net (decrease)/increase in cash and cash equivalents
(50)
76
Cash and cash equivalents at beginning of period
76
-
0
Cash and cash equivalents at end of period
26
76
INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 29 JUNE 2024
- 15 -
1
Accounting policies
Company information

Inspirit Carrey Topco Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office 2 Babmaes Street, London, SW1Y 6HD.

 

The group consists of Inspirit Carrey Topco Limited and all of its subsidiaries.

1.1
Reporting period

The parent company was incorporated on 28 April 2022 therefore the prior year financial statements present the 14 months to 1 July 2023 and hence cannot be accurately compared to the current year.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £1,000.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Inspirit Carrey Topco Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 29 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

The directors have, at the time of approving the financial statements, a reasonable expectation that Inspirit Carey Topco Limited and its subsidiary undertakings, (the “Group”), has adequate resources to continue in operational existence for the foreseeable future.

 

The Group has prepared operating entity forecasts and projections up to 30 November 2025 which cover at least 12 months from the date of approval of the financial statements. The assumptions used in these forecasts are believed to be reasonable and prudent, include cost savings from fully completed restructuring programmes within the Group and show that the Group is now cashflow positive.

 

The Group has debt facilities from a third-party lender. Subsequent to the period end the third party covenants have been re-set providing additional liquidity and headroom for the Group. In addition, Inspirit Capital, the ultimate owner of the Group has provided a letter indicating that it remains supportive of the business and that its current intention is to support the Group should additional funding be required (subject to Inspirit Capital Investment committee approval).

 

The directors have therefore concluded that they have an expectation that the company has adequate resources to continue in the near future. As such, they therefore continue to adopt the going concern basis of accounting in preparing the annual financial statements.

INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
1.6
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. Negative goodwill represents the excess of fair value of net assets acquired over the cost of acquisition of a business. Goodwill and negative goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill and negative goodwill considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.8
Tangible fixed assets

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

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

Leasehold land and buildings
Over the lease term
Plant and equipment
Over 3 to 10 years
Fixtures and fittings
Over 5 to 10 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the period. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
1
Accounting policies
(Continued)
- 21 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.17
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.18
Retirement benefits

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

1.19
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.20
Foreign exchange

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

1.21

Interest income

Interest income is recognised in the profit or loss using the effective interest method.

INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
1
Accounting policies
(Continued)
- 22 -
1.22

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

1.23

Borrowing costs

All borrowing costs are recognised in profit or loss in the period in which they are incurred.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Fixed asset investments

Investments are assessed each year for indicators of impairment against the carrying value of the investment. Where indicators are identified the discounted future cash flows of the investments are considered in assessing whether the valuation of the investment is supported or whether impairment is required. Future cash flows and the discount rate used are significant estimates in this situation.

Inventory

Management estimation is required to determine any potential impairment of inventory, as well as estimating the magnitude of the impairment.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Recoverability of stock

The group establishes a provision for stocks that are estimated not to be recoverable. When assessing recoverability the directors have considered factors such as the aging of the stocks, damaged and or obsolete stocks and past experience of recoverability.

Valuation of stock

In order to carry out the group's principal activities, a labour intesive process is required to raw materials to finished goods. Stock values include any cost of such labour and overheards attributable to generating finished goods, as management believe this is the most suitable costing method to take into account the matching concept of accounting.

 

 

 

INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
- 23 -
3
Turnover

Turnover is wholly attributable to the principal activities of the group.

2024
2023
£000
£000
Turnover analysed by geographical market
United Kingdom
11,653
9,468
Rest of Europe
3,415
3,855
Rest of the World
1,523
1,370
16,591
14,693
4
Exceptional item
2024
2023
£000
£000
Expenditure
Redundancy costs - site closures
28
105
Reduction in other borrowings
(300)
-
Associated legal costs
25
-
(247)
105

The group incurred redundancy costs during the period as part of a strategic review of the business' underlying performance and fixed operating costs.

5
Operating loss
2024
2023
£000
£000
Operating loss for the period is stated after charging/(crediting):
Exchange losses/(gains)
7
(12)
Depreciation of owned tangible fixed assets
192
170
(Profit)/loss on disposal of tangible fixed assets
-
1
Amortisation of intangible assets
17
122
Release of negative goodwill
(110)
(92)
Operating lease charges
363
341
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the group and company
51
49
For other services
All other non-audit services
21
20
INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
- 24 -
7
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
3
2
2
2
Manufacturing and administration
203
227
-
-
Total
206
229
2
2

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Wages and salaries
5,329
4,771
-
0
-
0
Social security costs
441
402
-
-
Pension costs
248
208
-
0
-
0
6,018
5,381
-
0
-
0
8
Directors' remuneration

No remuneration was paid to the directors.

9
Interest payable and similar expenses
2024
2023
£000
£000
Interest on bank overdrafts and loans
281
266
Other interest
62
19
Total finance costs
343
285
10
Amounts written off current borrowings
2024
2023
£000
£000
Amounts written off loans from related parties
-
92

In addition to the above, £300,000 (2023: £nil) was written off of non-current borrowings during the year.

INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
- 25 -
11
Taxation
2024
2023
£000
£000
Current tax
Adjustments in respect of prior periods
15
-
0
Deferred tax
Write down or reversal of write down of deferred tax asset
-
0
442
Total tax charge
15
442

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

2024
2023
£000
£000
Loss before taxation
(937)
(2,757)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
(234)
(565)
Tax effect of expenses that are not deductible in determining taxable profit
(27)
77
Tax effect of income not taxable in determining taxable profit
(38)
(22)
Tax effect of utilisation of tax losses not previously recognised
(19)
-
0
Change in unrecognised deferred tax assets
296
1,101
Other differences
37
(149)
Taxation charge
15
442

A deferred tax asset for accumulated tax losses has not been recognised due to uncertainty of when this will be utilised, and therefore gives rise to an unrecognised deferred tax asset of £1,464k (2023 - £872k).

12
Dividends
2024
2023
Recognised as distributions to equity holders:
£000
£000
Preference dividend accrued
150
119
INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
- 26 -
13
Intangible fixed assets
Group
Goodwill
Negative goodwill
Total
£000
£000
£000
Cost
At 2 July 2023
1,970
(1,102)
868
Other movements
-
0
(400)
(400)
At 29 June 2024
1,970
(1,502)
468
Amortisation and impairment
At 2 July 2023
1,951
(92)
1,859
Amortisation charged for the period
17
(110)
(93)
At 29 June 2024
1,968
(202)
1,766
Carrying amount
At 29 June 2024
2
(1,300)
(1,298)
At 1 July 2023
19
(1,010)
(991)
The company had no intangible fixed assets at 29 June 2024 or 1 July 2023.

Other movements relate to a repayment from the vendor in respect of the group’s acquisition of its subsidiaries in the previous period.

14
Tangible fixed assets
Group
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£000
£000
£000
£000
Cost
At 2 July 2023
109
862
60
1,031
Additions
9
100
8
117
At 29 June 2024
118
962
68
1,148
Depreciation and impairment
At 2 July 2023
11
143
6
160
Depreciation charged in the period
14
170
8
192
At 29 June 2024
25
313
14
352
Carrying amount
At 29 June 2024
93
649
54
796
At 1 July 2023
98
719
54
871
The company had no tangible fixed assets at 29 June 2024 or 1 July 2023.
INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
- 27 -
15
Stocks
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Raw materials and consumables
1,726
2,593
-
-
Work in progress
257
398
-
-
Finished goods and goods for resale
299
442
-
0
-
0
2,282
3,433
-
-
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£000
£000
£000
£000
Trade debtors
2,878
3,459
-
0
-
0
Amounts owed by group undertakings
-
-
1,784
1,632
Other debtors
450
152
-
0
-
0
Prepayments and accrued income
483
495
-
0
-
0
3,811
4,106
1,784
1,632
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£000
£000
£000
£000
Bank loans
19
1,826
1,798
-
0
-
0
Other borrowings
19
42
42
-
0
-
0
Trade creditors
1,989
2,249
-
0
-
0
Other taxation and social security
538
245
-
-
Other creditors
124
128
-
0
-
0
Accruals and deferred income
594
755
-
0
-
0
5,113
5,217
-
0
-
0

The long-term loans are secured by way of fixed and floating charges over the assets of the group.

INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
- 28 -
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£000
£000
£000
£000
Bank loans and overdrafts
19
843
1,231
-
0
-
0
Other borrowings
19
3,214
3,514
1,500
1,500
Other creditors
269
119
269
119
4,326
4,864
1,769
1,619

The long-term loans are secured by way of fixed and floating charges over the assets of the group.

19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Bank loans
2,669
3,029
-
0
-
0
Preference shares
1,500
1,500
1,500
1,500
Loans from related parties
1,756
2,056
-
0
-
0
5,925
6,585
1,500
1,500
Payable within one year
1,868
1,840
-
0
-
0
Payable after one year
4,057
4,745
1,500
1,500

Bank loans comprise a receivables facility, an inventory facility and terms loans, each bearing interest rates between 2.85% and 5.75% above the Bank of England base rate. Term loans have been subject to capital repayments from April 2023.

Loans from related parties include an interest bearing loan from Avnet Bidco Limited. Interest rates are fixed stepped rates of between 1% and 5%. Interest accrues on a compound basis until 1 July 2024. From this date the loan is interest free. Accrued interest and capital is repayable in 2027.

20
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Severance provision
-
134
-
-
INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
- 29 -
21
Retirement benefit schemes
2024
2023
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
248
208

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of £1 each
1
1
-
-
2024
2023
2024
2023
Preference share capital
Number
Number
£000
£000
Issued and fully paid
Preference shares of £1 each
1,500,000
1,500,000
1,500
1,500
Preference shares classified as liabilities
1,500
1,500

Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights. They do not confer any rights on redemption.

 

Preference shares have attached to them full rights in the company with respect to voting, dividends and distributions. Preferential dividends are recognised at a rate of 10% of the issue price per preference share to the extent that the company has available profits. Preference dividends accrue on a day to day basis and shall compound annually on the anniversary of the date of issue. The preference dividend shall be paid upon the winding up of the company or an exit event.

 

At 29 June 2024 cumulative dividend arrears due for the period were £269,000 (2023 - £119,000).

23
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£000
£000
£000
£000
Within one year
150
333
-
-
Between two and five years
89
145
-
-
239
478
-
-
INSPIRIT CARREY TOPCO LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 29 JUNE 2024
- 30 -
24
Subsidiaries

Details of the company's subsidiaries at 29 June 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Inspirit Carrey Bidco Limited
England & Wales
Holding
Ordinary
88.50
-
Alpha 3 Manufacturing Limited
England & Wales
Specialist cabling
Ordinary
0
88.50
Tekdata Interconnections Limited
England & Wales
Specialist cabling
Ordinary
0
88.50
25
Controlling party

The ultimate controlling party is Inspirit Gp LLP by virtue of majority shareholding in the group.

26
Cash generated from/(absorbed by) group operations
2024
2023
£000
£000
Loss for the period after tax
(952)
(3,199)
Adjustments for:
Taxation charged
15
442
Finance costs
343
285
Loss on disposal of tangible fixed assets
-
1
Other movements on intangibles
400
-
Amortisation and impairment of intangible assets
(93)
30
Depreciation and impairment of tangible fixed assets
192
170
Other gains and losses
-
(92)
(Decrease)/increase in provisions
(134)
134
Movements in working capital:
Decrease in stocks
1,151
1,646
Decrease in debtors
295
82
Decrease in creditors
(132)
(970)
Cash generated from/(absorbed by) operations
1,085
(1,471)
27
Analysis of changes in net debt - group
2 July 2023
Cash flows
29 June 2024
£000
£000
£000
Cash at bank and in hand
76
(50)
26
Borrowings excluding overdrafts
(6,585)
660
(5,925)
(6,509)
610
(5,899)
2024-06-292023-07-02falseCCH SoftwareCCH Accounts Production 2024.210A FarrantW 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