IMEXPART LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
Company registration number 01974788 (England and Wales)
IMEXPART LIMITED
COMPANY INFORMATION
Directors
Mr M Lockwood
Mrs N Chappell
Mr M Butterworth
(Appointed 30 June 2023)
Mr J Black
(Appointed 26 June 2023)
Mr L De Bruin
(Appointed 26 June 2023)
Secretary
Mrs F Pinkney
Company number
01974788
Registered office
Unit E1
Link 31 Willowbride Way
Whitwood
Castleford
WF10 5NP
Auditor
Azets Audit Services
Carlton House
Grammar School Street
Bradford
BD1 4NS
Bankers
Barclays Bank Plc
1 Park Row
Leeds
LS1 5WU
IMEXPART LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Income statement
9
Statement of financial position
10 - 11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 32
IMEXPART LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 1 -
The directors present the strategic report for the period ended 31 March 2024.
Review of the business
The primary business of the company is the sale of vehicle parts through its three hubs, Castleford, Birmingham and latterly Swindon.
The business benefits from a buoyant automotive aftermarket, with the performance meeting the shareholders expectations.
The company is constantly seeking ways to grow sales and reduce costs wherever possible.
Going Concern
The business performed strongly in the 15 month period up to 31st March 2024 on sales, operating profit and PBIT. This performance was in line with the previous financial year and the expectations of the senior management team, though costs were higher than the previous period due to inflation, general price increases and additional costs incurred as part of the acquisition resulting in a lower net profit compared to the prior period. The senior management team expects this to recover in the next financial year.
The business was acquired by Euro Driveshaft Limited a UK based investment holding company which is part of Invicta Holdings Limited, a publicly listed South African Company on the Johannesburg Stock Exchange, looking to expand in Europe. Through investment and supplier optimisation, the business is expected to grow over the next five years.
The core business has always been sales of replacement parts for commercial vehicles, to fleets and to motor factors, however the future direction is to concentrate on the motor factor. The other core area of the business is the sale of engine parts to engine rebuilders, these are for both passenger car and commercial vehicles. In December 2024 the business also added a range of passenger car parts, originally focussing on driveline product but expanding from there. Later in 2024 a range of agricultural product will also be launched. This will expand and maximise the products range distributed by the Group.
Based on forecasts prepared by the management and signed off by the Group, the business has a reasonable expectation that Impexpart Ltd has adequate resources to trade for the foreseeable future. Accordingly the Company continues to adopt the going concern basis when preparing its annual accounts and financial statement.
Competition
The risk of competition is managed by the continuous development of ranges, and product groups within those ranges. The business is constantly exploring ways to both strengthen and grow the business.
IMEXPART LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties
The activities of the business are always subject to risk, with the primary risk being that of competitors
Economic Climate
A major impact of Brexit has been a reduced pool of labour, creating a shortage of workers, both skilled and unskilled. In turn this has created wage inflation within the industry. The business will work to alleviate this by retraining and redeploying staff already employed by Imexpart.
The business is constantly monitoring market and modifying the pricing, marketing, and purchasing strategy where required.
Liquidity Risk
The company fully expects to meet all of its financial commitments as and when these fall due. These obligation are forecast to be met by operating cash flow and working capital management.
Customer Credit Risk
The business offers varying payment terms from “payment with order” to deferred payment options if circumstance warrant it. This comes with risk, however this risk is mitigated by the positive customer relationships and ongoing credit control.
Key performance indicators
The directors consider the main financial performance indicators are those that communicate the financial performance and strength of the company as a whole, those being turnover, operating profit margin and return of capital employed.
Turnover achieved in the period was £13,491,552 (Year to 31 December 2022 - £9,997,938) and overall operating profit was £111,087 (0.01%) (year ended 31 December 2022 - £437,343 (0.04%)). Profit before tax was £84,256 (year ended 31 December 2022 - £421,385).
Return on capital employed has decreased to 8.73% from 33.16%, calculated as operating profit divided by capital employed.
The directors are satisfied with these ratios and the company's performance during the year on ordinary activities.
Mr M Butterworth
Director
29 October 2024
IMEXPART LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 3 -
The directors present their annual report and financial statements for the period ended 31 March 2024.
Principal activities
The principal activity of the company continued to be that of traders in commercial vehicle parts.
Results and dividends
The results for the period are set out on page 9.
No ordinary dividends were paid (2022 - £150,000). The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr A C Pinkney
(Resigned 3 July 2023)
Ms F Pinkney
(Resigned 3 July 2023)
Mr M Lockwood
Mrs N Chappell
Mr M Butterworth
(Appointed 30 June 2023)
Mr J Black
(Appointed 26 June 2023)
Mr L De Bruin
(Appointed 26 June 2023)
Auditor
In accordance with the company's articles, a resolution proposing that Azets Audit Services be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as the directors are aware, there is no relevant audit information of which the company's auditor are unaware. Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company's auditors are aware of that information.
On behalf of the board
Mr M Butterworth
Director
29 October 2024
IMEXPART LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
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.
IMEXPART LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IMEXPART LIMITED
- 5 -
Opinion
We have audited the financial statements of Imexpart Limited (the 'company') for the period ended 31 March 2024 which comprise the income statement, the statement of financial position, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting standards.
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 period then ended;
have been properly prepared in accordance with UK adopted international accounting standards; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
IMEXPART LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IMEXPART LIMITED
- 6 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
IMEXPART LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IMEXPART LIMITED
- 7 -
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.
Capability of the audit in detecting irregularities, including fraud
Based on our understanding of the Company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK law and we considered the extent to which non-compliance might have a material effect on the financial statements of the Company. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to increase revenue or reduce expenditure or increase the capital position of the Company, and management bias in accounting estimates and judgmental areas of the financial statements. Audit procedures performed by the engagement team included: ·
Discussions with directors including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
Reviewing relevant meeting minutes;
Reviewing of correspondence in so far as they related to non-compliance with laws and regulations and fraud;
Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations, posted on unusual days, posted by infrequent users, posted by senior management or posted with descriptions indicating a higher level of risk; .
Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing over immaterial liabilities and assets balances. ·
There are inherent limitations in the audit procedures described above and the further removed non-·compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
A further description of our responsibilities is available on the Financial Reporting Council's website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
IMEXPART LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IMEXPART 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:
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
Reviewing minutes of meetings of those charged with governance;
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
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.
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.
Victoria Wainwright (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
29 October 2024
Chartered Accountants
Statutory Auditor
Carlton House
Grammar School Street
Bradford
BD1 4NS
IMEXPART LIMITED
INCOME STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2024
- 9 -
15 months to period
12 months to year
ended
ended
31 March
31 December
2024
2022
Notes
£
£
Revenue
4
13,491,552
9,997,938
Cost of sales
(7,965,902)
(5,746,726)
Gross profit
5,525,650
4,251,212
Other operating income
3,411
2,728
Distribution costs
(3,940,655)
(2,882,980)
Administrative expenses
(1,477,319)
(933,617)
Operating profit
5
111,087
437,343
Finance costs
9
(26,831)
(15,958)
Profit before taxation
84,256
421,385
Income tax expense
10
(37,577)
(79,301)
Profit and total comprehensive income for the period
46,679
342,084
The income statement has been prepared on the basis that all operations are continuing operations.
IMEXPART LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2024
31 March 2024
- 10 -
As at
As at
31 March
31 December
2024
2022
Notes
£
£
Non-current assets
Property, plant and equipment
12
2,987,946
2,919,820
Right-of-use assets
12
231,423
49,249
3,219,369
2,969,069
Current assets
Inventories
13
2,739,745
2,134,613
Trade and other receivables
14
1,938,121
1,421,476
Cash and cash equivalents
270,378
132,775
4,948,244
3,688,864
Current liabilities
Trade and other payables
17
2,466,403
1,581,490
Current tax liabilities
33,072
81,818
Borrowings
16
930,626
570,939
Lease liabilities
18
243,028
133,044
Deferred revenue
20
2,728
2,728
3,675,857
2,370,019
Net current assets
1,272,387
1,318,845
Non-current liabilities
Lease liabilities
18
234,875
84,270
Deferred tax liabilities
19
110,012
100,043
Deferred revenue
20
79,106
82,517
423,993
266,830
Net assets
4,067,763
4,021,084
Equity
Called up share capital
22
5,000
5,000
Revaluation reserve
23
460,897
464,203
Retained earnings
3,601,866
3,551,881
Total equity
4,067,763
4,021,084
IMEXPART LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MARCH 2024
31 March 2024
- 11 -
The financial statements were approved by the board of directors and authorised for issue on 29 October 2024 and are signed on its behalf by:
Mr M Butterworth
Director
Company registration number 01974788
IMEXPART LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2024
- 12 -
Share capital
Revaluation reserve
Retained earnings
Total
Notes
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
5,000
467,509
3,371,910
3,844,419
Transition adjustments
-
-
(15,419)
(15,419)
As restated
5,000
467,509
3,356,491
3,829,000
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
-
342,084
342,084
Transactions with owners in their capacity as owners:
Dividends
11
-
-
(150,000)
(150,000)
Transfer to revaluation reserve
-
(3,306)
3,306
-
Balance at 31 December 2022
5,000
464,203
3,551,881
4,021,084
Period ended 31 March 2024:
Profit and total comprehensive income for the period
-
-
46,679
46,679
Transactions with owners in their capacity as owners:
Transfer to revaluation reserve
-
(3,306)
3,306
-
Balance at 31 March 2024
5,000
460,897
3,601,866
4,067,763
IMEXPART LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2024
- 13 -
15 months to period
12 months to year
ended
ended
31 March
31 December
2024
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
28
(76,796)
583,646
Interest paid
(26,831)
(15,958)
Income taxes paid
(76,354)
(135,194)
Net cash (outflow)/inflow from operating activities
(179,981)
432,494
Investing activities
Purchase of property, plant and equipment
(731,678)
(329,300)
Proceeds from disposal of property, plant and equipment
167,069
42,149
Net cash used in investing activities
(564,609)
(287,151)
Financing activities
Repayment of bank loans
478,361
(71,348)
Payment of lease liabilities
260,589
119,488
Dividends paid
(150,000)
Net cash generated from/(used in) financing activities
738,950
(101,860)
Net (decrease)/increase in cash and cash equivalents
(5,640)
43,483
Cash and cash equivalents at beginning of year
132,775
89,292
Cash and cash equivalents at end of year
127,135
132,775
Relating to:
Bank balances and short term deposits
270,378
132,775
Bank overdrafts
(143,243)
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information
Imexpart Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit E1, Link 31 Willowbride Way, Whitwood, Castleford, WF10 5NP. The company's principal activities and nature of its operations are disclosed in the directors' report.
1.1
Reporting period
On 1 July 2023 the entire issued share capital of the company was acquired by Driveshaft Parts Limited, a company which is part of the Invicta Holdings Limited group of companies. As part of the acquisition process the directors of the group have aligned the financial reporting date of the company with the financial reporting date of the ultimate parent of the group by extending the reporting date by three months to 31 March.
Due to the directors extending the reporting date the comparative information included in these financial statments is not wholly comparable with the 15 months reported in the current period.
1.2
Accounting convention
The financial statements have been prepared in accordance with Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101) and in accordance with applicable accounting standards.
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.
The financial statements have been prepared under the historical cost convention, except for the revaluation of leasehold properties. The principal accounting policies adopted are set out below.
The company meets the definition of a qualifying entity under FRS 101 Reduced Disclosure Framework. These financial statements for the period ended 31 March 2024 are the first financial statements of Imexpart Limited prepared in accordance with FRS 101. The company transitioned from [ EU-adopted IFRS / pre-2015 UK GAAP ] to FRS 101 for all periods presented and the date of transition to FRS 101 was 1 January 2022.
An explanation of how transition to FRS 101 has affected the reported financial position and financial performance is given in note 26.
As permitted by FRS 101, the company has taken advantage of the following disclosure exemptions from the requirements of IFRS:
the requirements of IAS 7 'Statement of Cashflows' to present a statement of cash flows;
disclosure of key management personnel compensation;
comparative period reconciliations for the number of shares outstanding and the carrying amounts of property, plant and equipment;
a reconciliation of the number and weighted average exercise prices of share options, how the fair value of share-based payments was determined and their effect on profit or loss and the financial position;
the requirements of IAS 24 'Related Party disclosures' to disclose relate3d party transactions and balances between two or ore members of a group.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Imexpart Limited is a wholly owned subsidiary of Euro Driveshafts Limited and the results of Imexpart Limited are included in the consolidated financial statements of Euro Driveshafts Limited which are available from Companies House, Crown Way, Cardiff CF14 3UZ.
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
During the year the directors have elected to change the reporting standard from FRS102 1A to FRS101. Change in accounting framework was required due to the acquisition of the company by the Invicta Holdings Limited group which reports under the International Financial Reporting Standards.
These financial statements for the period ended 31 March 2024 are the first financial statements of Imexpart Limited prepared in accordance with FRS 101. The company transitioned from FRS 102 to FRS 101 for all periods presented and the date of transition to FRS 101 was 1 January 2022.
1.3
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4
Revenue
Revenue 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.
Revenue 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 revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.5
Property, plant and equipment
Property, plant and equipment 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:
Freehold land and buildings
Buildings straightline over 50 years and no depreciation on land
Leasehold improvements
Straightline over the length of the lease
Fixtures, fittings & equipment
Straightline over 2 to 10 years
Plant and machinery
Straightline over 5 years
Computer equipment
Straightline over 3 years
Motor vehicles
Straightline over 4 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 income statement.
1.6
Impairment of tangible and intangible assets
At each reporting end date, the company reviews the carrying amounts of its tangible 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.
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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.
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.
1.7
Inventories
Inventories 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 inventories to their present location and condition.
Inventories 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.
Net realisable value is the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.
1.8
Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial assets
Financial assets are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets are classified into specified categories, depending on the nature and purpose of the financial assets.
At initial recognition, financial assets classified as fair value through profit and loss are measured at fair value and any transaction costs are recognised in profit or loss. Financial assets not classified as fair value through profit and loss are initially measured at fair value plus transaction costs.
Financial assets held at amortised cost
Financial instruments are classified as financial assets measured at amortised cost where the objective is to hold these assets in order to collect contractual cash flows, and the contractual cash flows are solely payments of principal and interest. They arise principally from the provision of goods and services to customers (eg trade receivables). They are initially recognised at fair value plus transaction costs directly attributable to their acquisition or issue, and are subsequently carried at amortised cost using the effective interest rate method, less provision for impairment where necessary.
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Impairment of financial assets
Financial assets carried at amortised cost and FVOCI are assessed for indicators of impairment at each reporting end date.
The expected credit losses associated with these assets are estimated on a forward-looking basis. A broad range of information is considered when assessing credit risk and measuring expected credit losses, including past events, current conditions, and reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.
For trade receivables, the simplified approach permitted by IFRS 9 is applied, which requires expected lifetime losses to be recognised from initial recognition of the receivables]
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership to another entity.
1.10
Financial liabilities
The company recognises financial debt when the company becomes a party to the contractual provisions of the instruments. Financial liabilities are classified as either 'financial liabilities at fair value through profit or loss' or 'other financial liabilities'.
Other financial liabilities
Other financial liabilities, including borrowings, trade payables and other short-term monetary liabilities, are initially measured at fair value net of transaction costs directly attributable to the issuance of the financial liability. They are subsequently measured at amortised cost using the effective interest method. For the purposes of each financial liability, interest expense includes initial transaction costs and any premium payable on redemption, as well as any interest or coupon payable while the liability is outstanding.
Derecognition of financial liabilities
Financial liabilities are derecognised when, and only when, the company’s obligations are discharged, cancelled, or they expire.
1.11
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.12
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
Deferred tax
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary 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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.13
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 inventories or non-current 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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.15
Leases
At inception, the company assesses whether a contract is, or contains, a lease within the scope of IFRS 16. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Where a tangible asset is acquired through a lease, the company recognises a right-of-use asset and a lease liability at the lease commencement date. Right-of-use assets are included within property, plant and equipment, apart from those that meet the definition of investment property.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs and an estimate of the cost of obligations to dismantle, remove, refurbish or restore the underlying asset and the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of other property, plant and equipment. The right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
The lease liability is initially measured at the present value of the lease payments that are unpaid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company's incremental borrowing rate. Lease payments included in the measurement of the lease liability comprise fixed payments, variable lease payments that depend on an index or a rate, amounts expected to be payable under a residual value guarantee, and the cost of any options that the company is reasonably certain to exercise, such as the exercise price under a purchase option, lease payments in an optional renewal period, or penalties for early termination of a lease.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in: future lease payments arising from a change in an index or rate; the company's estimate of the amount expected to be payable under a residual value guarantee; or the company's assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The company has elected not to recognise right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less, or for leases of low-value assets including IT equipment. The payments associated with these leases are recognised in profit or loss on a straight-line basis over the lease term.
1.16
Grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
Grants relating to an asset are recognised in income systematically over the asset's expected useful life. If part of such a grant is deferred it is recognised as deferred income rather than being deducted from the asset's carrying amount.
2
Adoption of new and revised standards and changes in accounting policies
During the year the directors have elected to change the reporting standard from FRS102 1A to FRS101 and incorporated the Reduced Disclosure Framework. This change in accounting framework was required due to the acquisition of the company by the Invicta Holdings Limited group which reports under the International Financial Reporting Standards This has resulted in a number of changes to the prior period financial statements due to the accounting policies now adopted for the accounting of trade detors and operating leases which are to be reported under IFRS9 and IFRS16 respectively.
3
Critical accounting estimates and judgements
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 20 -
4
Revenue
For the period
For the year
ended
ended
31 March
31 December
2024
2022
£
£
Revenue analysed by class of business
Sales of goods
13,491,552
9,997,938
5
Operating profit
For the period
For the year
ended
ended
31 March
31 December
2024
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Government grants
(3,411)
(2,728)
Depreciation of property, plant and equipment
377,532
270,683
Profit on disposal of property, plant and equipment
(63,223)
(15,043)
Cost of inventories recognised as an expense
7,965,902
5,746,726
6
Auditor's remuneration
For the period
For the year
ended
ended
31 March
31 December
2024
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
43,320
18,780
7
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
For the period
For the year
ended
ended
31 March
31 December
2024
2022
Number
Number
Distribution and administration
76
73
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
7
Employees
(Continued)
- 21 -
Their aggregate remuneration comprised:
2024
2022
£
£
Wages and salaries
3,214,109
2,230,451
Social security costs
255,318
200,101
Pension costs
86,203
59,306
3,555,630
2,489,858
8
Directors' remuneration
For the period
For the year
ended
ended
31 March
31 December
2024
2022
£
£
Remuneration for qualifying services
422,528
233,922
Company pension contributions to defined contribution schemes
13,405
7,589
435,933
241,511
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 2).
Remuneration disclosed above include the following amounts paid to the highest paid director:
For the period
For the year
ended
ended
31 March
31 December
2024
2022
£
£
Remuneration for qualifying services
102,579
146,398
Company pension contributions to defined contribution schemes
6,155
-
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 22 -
9
Finance costs
For the period
For the year
ended
ended
31 March
31 December
2024
2022
£
£
Interest on bank overdrafts and loans
1,680
848
Interest on lease liabilities
25,151
4,675
Other interest payable
10,435
Total interest expense
26,831
15,958
10
Income tax expense
For the period
For the year
ended
ended
31 March
31 December
2024
2022
£
£
Current tax
UK corporation tax on profits for the current period
27,608
76,355
Deferred tax
Origination and reversal of temporary differences
9,969
2,946
Total tax charge
37,577
79,301
The charge for the period can be reconciled to the profit per the income statement as follows:
For the period
For the year
ended
ended
31 March
31 December
2024
2022
£
£
Profit before taxation
84,256
421,385
Expected tax charge based on a corporation tax rate of 23.52% (2022: 19.00%)
19,817
80,063
Effect of expenses not deductible in determining taxable profit
(1,249)
4,301
Permanent capital allowances in excess of depreciation
9,040
(7,097)
Deferred taxation movement
9,969
2,946
Effect of adoption of change in accounting standard
(912)
Taxation charge for the period
37,577
79,301
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 23 -
11
Dividends
2024
2022
2024
2022
Amounts recognised as distributions:
per share
per share
Total
Total
£
£
£
£
Ordinary
Interim dividend paid
-
30.00
150,000
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 24 -
12
Property, plant and equipment
Freehold land and buildings
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2022 (as previously reported)
2,400,000
120,094
108,752
548,167
320,013
563,909
4,060,935
Additions
19,840
56,609
252,851
329,300
Transition adjustment
140,712
140,712
Disposals
(83,570)
(83,570)
At 31 December 2022 (as restated)
2,400,000
260,806
108,752
568,007
376,622
733,190
4,447,377
Additions
253,362
23,558
26,450
416,730
720,100
Business combinations
1
7,575
1,162
2,840
11,578
Disposals
(173,619)
(698)
(392,191)
(566,508)
At 31 March 2024
2,400,000
340,549
108,753
599,140
403,536
760,569
4,612,547
Accumulated depreciation and impairment
At 1 January 2022 (as previously reported)
14,667
93,207
99,365
419,100
294,842
279,588
1,200,769
Charge for the period
44,000
32,064
1,968
28,268
17,078
147,305
270,683
Transition adjustment
63,320
63,320
Eliminated on disposal
(56,464)
(56,464)
At 31 December 2022 (as restated)
58,667
188,591
101,333
447,368
311,920
370,429
1,478,308
Charge for the period
22,000
50,081
5,726
38,579
41,619
219,527
377,532
Eliminated on disposal
(145,825)
(173)
(316,664)
(462,662)
At 31 March 2024
80,667
92,847
107,059
485,947
353,366
273,292
1,393,178
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
12
Property, plant and equipment
Freehold land and buildings
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
£
(Continued)
- 25 -
Carrying amount analysed between owned assets and right-of-use assets
At 31 March 2024
Owned assets
2,319,333
16,279
1,694
113,193
50,170
487,277
2,987,946
Right-of-use assets
-
231,423
-
-
-
-
231,423
2,319,333
247,702
1,694
113,193
50,170
487,277
3,219,369
At 31 December 2022
Owned assets
2,341,333
22,966
7,419
120,639
64,702
362,761
2,919,820
Right-of-use assets
-
49,249
-
-
-
-
49,249
2,341,333
72,215
7,419
120,639
64,702
362,761
2,969,069
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 26 -
Property, plant and equipment includes right-of-use assets, as follows:
Right-of-use assets
2024
2022
£
£
Net values at the period end
Property
231,423
49,249
Total additions in the period
253,362
-
Depreciation charge for the period
Property
45,391
28,142
13
Inventories
As at
As at
2024
2022
£
£
Finished goods
2,739,745
2,134,613
14
Trade and other receivables
As at
As at
2024
2022
£
£
Trade receivables
1,388,143
1,143,100
Provision for bad and doubtful debts
(1,210)
(1,197)
1,386,933
1,141,903
Amounts owed by fellow group undertakings
149,739
Prepayments
401,449
279,573
1,938,121
1,421,476
The trade debtors are the subject of an invoice discounting agreement. The value of trade debtors to which this agreement relates is £1,344,529 (2022 - £1,140,792).
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 27 -
15
Trade receivables - credit risk
Fair value of trade receivables
The directors consider that the carrying amount of trade and other receivables is approximately equal to their fair value.
No significant receivable balances are impaired at the reporting end date.
As at
As at
Movement in the allowances for impairment of trade receivables
2024
2022
£
£
Balance at 1 January 2023
1,197
-
Additional allowance recognised
13
1,197
Balance at 31 March 2024
1,210
1,197
16
Borrowings
As at
As at
2024
2022
£
£
Borrowings held at amortised cost:
Bank overdrafts
143,243
-
Bank loans
787,383
309,022
Directors' loans
-
261,917
930,626
570,939
As at
As at
2024
2022
£
£
Secured borrowings included above:
Bank overdrafts
(143,243)
Bank loans
(787,383)
(309,022)
(930,626)
(309,022)
Included in bank loans are £Nil (2022 - £24,419) in respect of a commercial mortgage loan repayable by monthly instalments. This loan attracts interest being charged at a variable rate of 1.5% above base rate.
The bank loan is secured by a debenture and a charge over the company's freehold land and buildings.
Also included within bank loans is £787,383 (2022 - £284,603) due in relation to invoice finance arrangements.
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 28 -
17
Trade and other payables
2024
2022
£
£
Trade payables
1,437,389
1,237,418
Accruals
68,618
54,903
Social security and other taxation
369,252
342,645
Other payables
591,144
(53,476)
2,466,403
1,581,490
18
Lease liabilities
As at
As at
31 March
31 December
2024
2022
as restated
Maturity analysis
£
£
Within one year
254,123
140,206
In two to five years
253,644
88,228
Total undiscounted liabilities
507,767
228,434
Future finance charges and other adjustments
(29,864)
(11,120)
Lease liabilities in the financial statements
477,903
217,314
Lease liabilities are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
As at
As at
31 March
31 December
2024
2022
as restated
£
£
Current liabilities
243,028
133,044
Non-current liabilities
234,875
84,270
477,903
217,314
As at
As at
31 March
31 December
2024
2022
as restated
Amounts recognised in profit or loss include the following:
£
£
Interest on lease liabilities
25,151
4,675
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
18
Lease liabilities
(Continued)
- 29 -
Other leasing information is included in note 24.
19
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon during the current and prior reporting period.
Accelerated captial allowances
£
Liability at 1 January 2022
97,097
Deferred tax movements in prior year
Charge/(credit) to profit or loss
2,946
Liability at 1 January 2023
100,043
Deferred tax movements in current year
Charge/(credit) to profit or loss
9,969
Liability at 31 March 2024
110,012
20
Deferred revenue
2024
2022
£
£
Arising from government grants
81,834
85,245
Deferred revenues are classified based on the amounts that are expected to be settled within the next 12 months and after more than 12 months from the reporting date, as follows:
2024
2022
£
£
Current liabilities
2,728
2,728
Non-current liabilities
79,106
82,517
81,834
85,245
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 30 -
21
Retirement benefit schemes
2024
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
86,203
59,306
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
22
Share capital
2024
2022
2024
2022
Ordinary share capital
Number
Number
£
£
Authorised, issued and fully paid
Ordinary of £1 each
4,996
4,996
4,996
4,996
Ordinary-A of £1 each
4
4
4
4
5,000
5,000
5,000
5,000
23
Revaluation reserve
As at
As at
31 March
31 December
2024
2022
£
£
At the beginning of the period
464,203
467,509
Transfer to retained earnings
(3,306)
(3,306)
At the end of the period
460,897
464,203
24
Other leasing information
Lessee
Amounts recognised in profit or loss as an expense during the period in respect of lease arrangements are as follows:
For the period
For the year
ended
ended
31 March
31 December
2024
2022
£
£
Expense relating to short-term leases
61,345
30,200
Information relating to lease liabilities is included in note 18.
25
Capital risk management
The company is not subject to any externally imposed capital requirements.
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 31 -
26
Directors' transactions
During the year the directors continued to provide interest free loans to the company as follows;
Loans
% Rate
Opening balance
Amounts repaid
Closing balance
£
£
£
Directors Loans
-
261,917
(261,917)
-
261,917
(261,917)
-
27
Controlling party
On 1 July 2023 the whole of the issued equity capital was acquired by Driveshaft Parts Limited, a company incorporated in England.
The ultimate parent company of the smallest and largest group, for which consolidated accounts are prepared, to which the company belongs is Invicta Holdings Limited, a company incorporated in South Africa. The registered office of Invicta Holdings Limited is 3 Droste Crescent, Droste Park, Johannesburg, South Africa
28
Cash (absorbed by)/generated from operations
2024
2022
£
£
Profit for the period before income tax
84,256
421,385
Adjustments for:
Finance costs
26,831
15,958
Gain on disposal of property, plant and equipment
(63,223)
(15,043)
Depreciation and impairment of property, plant and equipment
377,532
270,683
Movements in working capital:
Increase in inventories
(605,132)
(120,843)
(Increase)/decrease in trade and other receivables
(516,645)
54,690
Increase/(decrease) in trade and other payables
622,996
(40,456)
Decrease in deferred revenue outstanding
(3,411)
(2,728)
Cash (absorbed by)/generated from operations
(76,796)
583,646
IMEXPART LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 32 -
29
Transition adjustments
Reconciliation of equity
1 January
31 December
2022
2022
Notes
£
£
Equity as previously reported
3,844,419
4,031,704
Adjustments arising from transition:
Cost of right of use assets
1
140,712
140,712
Accumulated depreciation of right of use assets
1
(63,320)
(91,462)
Right of use lease liability
1
(92,811)
(59,870)
Rent re operating leases
1
-
-
Equity as restated
3,829,000
4,021,084
Reconciliation of profit for the financial period
2022
Notes
£
Profit as previously reported
337,285
Adjustments arising from transition:
Cost of right of use assets
1
-
Accumulated depreciation of right of use assets
1
(28,142)
Right of use lease liability
1
(2,059)
Rent re operating leases
1
35,000
Profit as restated
342,084
Notes to reconciliations
Adoption of IFRS16
The company has applied IFRS16 on leased properties which resulted in recognition of Right of Use asssets and lease liabilities as at the comparative year end.
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