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COMPANY REGISTRATION NUMBER: SC477423
i3Works Ltd
Financial Statements
For the year ended
31 July 2024
i3Works Ltd
Financial Statements
Year ended 31 July 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
3
Independent auditor's report to the members
5
Statement of income and retained earnings
9
Statement of financial position
10
Statement of cash flows
11
Notes to the financial statements
12
i3Works Ltd
Officers and Professional Advisers
The board of directors
G I Cameron
T O'Dowd
B W L Ames
D L Gunn
Registered office
c/o Nelson Gilmour Smith
33 Kittoch Street
East Kilbride
G74 JW
Auditor
Nelson Gilmour Smith
Chartered Accountants & statutory auditor
Mercantile Chambers
53 Bothwell Street
Glasgow
G2 6TB
i3Works Ltd
Strategic Report
Year ended 31 July 2024
The Directors in preparing this report, have complied with s414C of the Companies Act 2006.
The company's principal activity during the period under review was the provision of consultancy services in both the public and private sector, we offer many types of services, helping our customers deliver digital transformations (P3M, Architecture, Digital and Service Management).
During the year the company focused towards increasing sales volume. Turnover increased from £16.7m to £27.3m.
The company's profit before taxation amounted to £2,216,154 (2023: £771,862) and after taxation £1,650,120 (2023: £600,864). Operating profit of £2,214,429 (2023: £766,728) represented an increase of 189% relative to 2023. Both the level of business and year-end financial position were extremely satisfactory in light of economic conditions, and the Directors remain confident about the future prospects for the business as the economy stabilises.
One of the key business risks and uncertainties affecting the company is the high level of qualified staff required to meet the level of demand, which can be impacted through shifts in project timescales. The company is investing heavily into talent management to mitigate this risk.
The company's operations expose it to a variety of financial risks which include credit risk. Credit risk is the risk that a counterparty will be unable to pay amounts when they fall due. The company has continued to build a liquidity buffer which is commensurate with the forecast revenue growth, this limits the exposure of the company to credit risk. The company's exposure to this risk is however limited due to our customer profile within the public sector. The directors are satisfied that the appropriate controls are in place to manage that risk.
In the year ending 31 July 2025, we are continuing to deliver for our clients at the highest level. This ongoing success has brought about exciting new opportunities for i3Works Ltd . As a business we are looking forward to building on these new relationships and growing our current relationships with our clients and partners. The company is always looking at new and innovative ways to serve our clients and maintain our reputation for exceptional delivery. We are also investing in our internal back-office systems to improve efficiency, transparency, and accuracy. This gives our employees more time to focus on our customers together with adding value to the business.
This report was approved by the board of directors on 8 January 2025 and signed on behalf of the board by:
G I Cameron
Director
Registered office:
c/o Nelson Gilmour Smith
33 Kittoch Street
East Kilbride
G74 JW
i3Works Ltd
Directors' Report
Year ended 31 July 2024
The directors present their report and the financial statements of the company for the year ended 31 July 2024 .
Directors
The directors who served the company during the year were as follows:
G I Cameron
T O'Dowd
B W L Ames
D L Gunn
C Cooke
(Resigned 18 September 2023)
Dividends
Particulars of recommended dividends are detailed in note 13 to the financial statements.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 8 January 2025 and signed on behalf of the board by:
G I Cameron
Director
Registered office:
c/o Nelson Gilmour Smith
33 Kittoch Street
East Kilbride
G74 JW
i3Works Ltd
Independent Auditor's Report to the Members of i3Works Ltd
Year ended 31 July 2024
Opinion
We have audited the financial statements of i3Works Ltd (the 'company') for the year ended 31 July 2024 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Based on our understanding of the company, we identified the principal risks of non-compliance with laws and regulations and the extent to which non-compliance might have a material effect on the financial statements. 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 managements' incentives and opportunities for the fraudulent manipulation of the financial statements, including the risk of override of controls. Based on our assessment we adopted a substantive approach to our audit testing. Audit procedures performed included: Testing a sample of transactions to source documentation. We select sample sizes having regard to the inherent risk (specific and general), the quality of the internal controls and the risk that our testing might not detect possible misstatements. Making enquiries of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims. Identifying legislation of particular relevance to the entity and obtaining audit evidence regarding compliance with that legislation. Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business There are inherent limitations in the audit procedures described above. 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 concealment. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Andrew B Wilson BA CA
(Senior Statutory Auditor)
For and on behalf of
Nelson Gilmour Smith
Chartered Accountants & statutory auditor
Mercantile Chambers
53 Bothwell Street
Glasgow
G2 6TB
8 January 2025
i3Works Ltd
Statement of Income and Retained Earnings
Year ended 31 July 2024
2024
2023
Note
£
£
Turnover
4
27,343,296
16,762,093
Cost of sales
23,223,105
15,258,603
-------------
-------------
Gross profit
4,120,191
1,503,490
Administrative expenses
1,961,395
736,762
Other operating income
5
55,633
------------
------------
Operating profit
6
2,214,429
766,728
Other interest receivable and similar income
10
7,469
5,134
Interest payable and similar expenses
11
5,744
------------
------------
Profit before taxation
2,216,154
771,862
Tax on profit
12
566,034
170,998
------------
---------
Profit for the financial year and total comprehensive income
1,650,120
600,864
------------
---------
Dividends paid and payable
13
( 70,138)
( 307,449)
Retained earnings at the start of the year
2,762,387
2,468,972
------------
------------
Retained earnings at the end of the year
4,342,369
2,762,387
------------
------------
All the activities of the company are from continuing operations.
i3Works Ltd
Statement of Financial Position
31 July 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
14
41,953
55,981
Investments
15
297,783
140,051
---------
---------
339,736
196,032
Current assets
Debtors
16
4,873,098
4,083,065
Cash at bank and in hand
3,843,796
1,208,815
------------
------------
8,716,894
5,291,880
Creditors: amounts falling due within one year
17
4,703,469
2,711,226
------------
------------
Net current assets
4,013,425
2,580,654
------------
------------
Total assets less current liabilities
4,353,161
2,776,686
Provisions
Taxation including deferred tax
18
10,488
13,995
------------
------------
Net assets
4,342,673
2,762,691
------------
------------
Capital and reserves
Called up share capital
21
304
304
Profit and loss account
4,342,369
2,762,387
------------
------------
Shareholders funds
4,342,673
2,762,691
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 8 January 2025 , and are signed on behalf of the board by:
G I Cameron
Director
Company registration number: SC477423
i3Works Ltd
Statement of Cash Flows
Year ended 31 July 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
1,650,120
600,864
Adjustments for:
Depreciation of tangible assets
30,698
21,426
Other interest receivable and similar income
( 7,469)
( 5,134)
Interest payable and similar expenses
5,744
Loss on disposal of tangible assets
3,681
5,507
Tax on profit
566,034
170,998
Accrued expenses
1,199,220
587,543
Changes in:
Trade and other debtors
( 790,033)
( 2,395,235)
Trade and other creditors
148,991
884,811
------------
------------
Cash generated from operations
2,806,986
( 129,220)
Interest paid
( 5,744)
Interest received
7,469
5,134
Tax (paid)/received
( 159,968)
2,875
------------
---------
Net cash from/(used in) operating activities
2,648,743
( 121,211)
------------
---------
Cash flows from investing activities
Purchase of tangible assets
( 20,350)
( 52,167)
Proceeds from sale of tangible assets
( 1)
Cash advances and loans granted
( 157,732)
Cash receipts from the repayment of advances and loans
10,000
------------
---------
Net cash used in investing activities
( 178,083)
( 42,167)
------------
---------
Cash flows from financing activities
Proceeds from borrowings
( 125,000)
Proceeds from loans from group undertakings
234,459
50,541
Dividends paid
( 70,138)
( 307,449)
------------
---------
Net cash from/(used in) financing activities
164,321
( 381,908)
------------
---------
Net increase/(decrease) in cash and cash equivalents
2,634,981
( 545,286)
Cash and cash equivalents at beginning of year
1,208,815
1,754,101
------------
------------
Cash and cash equivalents at end of year
3,843,796
1,208,815
------------
------------
i3Works Ltd
Notes to the Financial Statements
Year ended 31 July 2024
1. General information
The company is a private company limited by shares, registered in Scotland. The address of the registered office is c/o Nelson Gilmour Smith, 33 Kittoch Street, East Kilbride, G74 JW.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. There were no judgements (apart from those involving estimations) that management made in the process of applying the entity's accounting policies that are of material effect. Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. Key assumptions and estimates affecting the company's financial statements are limited to the consideration of rates of depreciation. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are limited to the determination of depreciation methodologies. At the statement of financial position date the carrying amount of fixed assets was £41,953 (2023: £55,981), while the depreciation charged in the year amounted to £30,698 (2023: £21,426).
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Office Equipment
-
33% straight line
IT Equipment
-
33% straight line
Investments
Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.
Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.
Investments in associates
Investments in associates accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in associates accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the associate arising before or after the date of acquisition.
Investments in joint ventures
Investments in jointly controlled entities accounted for in accordance with the cost model are recorded at cost less any accumulated impairment losses. Investments in jointly controlled entities accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in other comprehensive income/profit or loss. Where it is impracticable to measure fair value reliably without undue cost or effort, the cost model will be adopted. Dividends and other distributions received from the investment are recognised as income without regard to whether the distributions are from accumulated profits of the joint venture arising before or after the date of acquisition.
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Rendering of services
27,343,296
16,762,093
-------------
-------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2024
2023
£
£
Management charges receivable
55,633
--------
----
6. Operating profit
Operating profit or loss is stated after charging:
2024
2023
£
£
Depreciation of tangible assets
30,698
21,426
Loss on disposal of tangible assets
3,681
5,507
--------
--------
7. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
5,000
5,000
-------
-------
Fees payable to the company's auditor and its associates for other services:
Other non-audit services
9,100
8,850
-------
-------
8. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
138
106
Administrative staff
3
4
Management staff
5
5
----
----
146
115
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
7,137,293
6,854,792
Social security costs
785,001
795,578
Other pension costs
327,520
426,564
------------
------------
8,249,814
8,076,934
------------
------------
9. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
177,643
290,956
Company contributions to defined contribution pension plans
7,538
97,312
---------
---------
185,181
388,268
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
4
5
----
----
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
156,352
138,333
Company contributions to defined contribution pension plans
6,979
6,667
---------
---------
163,331
145,000
---------
---------
10. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
7,335
3,957
Other interest receivable and similar income
134
1,177
-------
-------
7,469
5,134
-------
-------
11. Interest payable and similar expenses
2024
2023
£
£
Other interest payable and similar charges
5,744
-------
----
12. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
569,451
159,878
Adjustments in respect of prior periods
90
( 2,875)
---------
---------
Total current tax
569,541
157,003
---------
---------
Deferred tax:
Origination and reversal of timing differences
( 3,507)
13,995
---------
---------
Tax on profit
566,034
170,998
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 21 %).
2024
2023
£
£
Profit on ordinary activities before taxation
2,216,154
771,862
------------
---------
Profit on ordinary activities by rate of tax
554,038
162,091
Adjustment to tax charge in respect of prior periods
90
( 2,875)
Effect of expenses not deductible for tax purposes
11,906
4,614
Effect of capital allowances and depreciation
7,168
------------
---------
Tax on profit
566,034
170,998
------------
---------
13. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2024
2023
£
£
Dividends on A ordinary equity shares
22,549
144,603
Dividends on C ordinary equity shares
21,287
81,423
Dividends on D ordinary equity shares
21,287
81,423
Dividends on E ordinary equity shares
5,015
--------
---------
70,138
307,449
--------
---------
14. Tangible assets
Fixtures and fittings
Equipment
Total
£
£
£
Cost
At 1 August 2023
10,362
69,615
79,977
Additions
20,350
20,350
Disposals
( 11,743)
( 11,743)
--------
--------
--------
At 31 July 2024
10,362
78,222
88,584
--------
--------
--------
Depreciation
At 1 August 2023
1,340
22,656
23,996
Charge for the year
3,454
27,244
30,698
Disposals
( 8,063)
( 8,063)
--------
--------
--------
At 31 July 2024
4,794
41,837
46,631
--------
--------
--------
Carrying amount
At 31 July 2024
5,568
36,385
41,953
--------
--------
--------
At 31 July 2023
9,022
46,959
55,981
--------
--------
--------
15. Investments
Shares in group undertakings
Loans to group undertakings
Total
£
£
£
Cost
At 1 August 2023
51
140,000
140,051
Additions
157,732
157,732
----
---------
---------
At 31 July 2024
51
297,732
297,783
----
---------
---------
Impairment
At 1 August 2023 and 31 July 2024
----
---------
---------
Carrying amount
At 31 July 2024
51
297,732
297,783
----
---------
---------
At 31 July 2023
51
140,000
140,051
----
---------
---------
16. Debtors
2024
2023
£
£
Trade debtors
4,622,520
3,119,961
Amounts owed by group undertakings
1,594
Prepayments and accrued income
83,297
54,591
Directors loan account
31,250
Amounts recoverable on ongoing contracts
105,796
820,814
Staff loans
30,235
10,996
Other debtors
75,109
------------
------------
4,873,098
4,083,065
------------
------------
17. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
655,395
1,154,757
Amounts owed to group undertakings
285,000
50,541
Accruals and deferred income
1,865,203
665,983
Corporation tax
569,451
159,878
Social security and other taxes
1,325,969
678,810
Other creditors
2,451
1,257
------------
------------
4,703,469
2,711,226
------------
------------
18. Provisions
Deferred tax (note 19)
£
At 1 August 2023
13,995
Additions
( 3,507)
--------
At 31 July 2024
10,488
--------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 18)
10,488
13,995
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
10,488
13,995
--------
--------
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 327,520 (2023: £ 426,564 ).
21. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
300
300
300
300
Ordinary A shares of £ 1 each
1
1
1
1
Ordinary C shares of £ 1 each
1
1
1
1
Ordinary D shares of £ 1 each
1
1
1
1
Ordinary E shares of £1 each
1
1
1
1
----
----
----
----
304
304
304
304
----
----
----
----
22. Analysis of changes in net debt
At 1 Aug 2023
Cash flows
At 31 Jul 2024
£
£
£
Cash at bank and in hand
1,208,815
2,634,981
3,843,796
Debt due within one year
(50,541)
(234,459)
(285,000)
------------
------------
------------
1,158,274
2,400,522
3,558,796
------------
------------
------------
23. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2024
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
D L Gunn
31,250
31,250
----
--------
--------
2023
Balance brought forward
Advances/ (credits) to the directors
Balance outstanding
£
£
£
D L Gunn
----
----
----
24. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value
Balance owed by/(owed to)
2024
2023
2024
2023
£
£
£
£
i3Secure Ltd
( 10,000)
(10,000)
130,000
140,000
i3Secure Ltd
450,076
( 540,845)
( 74,349)
( 50,541)
T O'Dowd
( 28,095)
( 72,391)
( 1,320)
i3NetZero Ltd
( 9,510)
1,594
12,042
1,594
Minerva SIPP
243,000
47,311
i3Capital Ltd
( 1,098,797)
106,374
------------
---------
---------
---------
i3Works Ltd
Notes to the Financial Statements (continued)
Year ended 31 July 2024
24. Related party transactions (continued)
Control:- The company was under the control of the directors throughout the period under review. Transactions:- The company has provided loan funds to i3Secure Ltd, a 51% subsidiary company incorporated in Scotland, amounting to £150,000. The balance outstanding at the statement of financial position date was £130,000. This loan is interest free and repayable on demand. During the year, in the normal course of business, the company received services from i3Secure Ltd totalling £450,076 (2023: £540,845). The balance outstanding at the statement of financial position date was £74,349 (2023: £50,541). During the year the company received consultancy services amounting to £28,095 (2023: £72,391) from the director T O'Dowd . During the year the company provided management services and advances to i3NetZero Ltd, a group company incorporated in England, totalling £275,490. The balance outstanding at the statement of financial position date was £297,042 (2023: £nil). During the year the company received management services from i3Capital Ltd, it's parent undertaking, incorporated in England, totalling £1,118,797 and provided management charges totalling £20,000. The balance outstanding at the statement of financial position date was £106,347.
25. Controlling party
The company's ultimate parent undertaking is i3Capital Ltd , a company incorporated in England. The company's ultimate controlling party is G I Cameron , a director of this and the parent company, and majority shareholder of i3Capital Ltd.