Company registration number SC572262 (Scotland)
INTERVENTION GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
INTERVENTION GROUP LIMITED
COMPANY INFORMATION
Directors
Colin Kennedy
Ross McKenzie
Company number
SC572262
Registered office
Intervention House
Lunan Bay
By Montrose
DD10 9TG
Auditor
Findlays Audit Limited
11 Dudhope Terrace
Dundee
DD3 6TS
Bankers
HSBC
95-99 Union Street
Aberdeen
AB11 6BD
Solicitors
Stronachs Secretaries Limited
28 Albyn Place
Aberdeen
AB10 1YL
INTERVENTION GROUP LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Group statement of comprehensive income
9
Group balance sheet
10 - 11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 38
INTERVENTION GROUP LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of rental and sale of equipment.

Review of the business

The Group has had a positive year with growth in all areas of the business. Turnover is up and profitability is in line with previous years and with strong investment in assets, people and operations the net asset position of the Group continued to be satisfactory.

 

The Group has sufficient working capital to continue to trade as normal and to grow the business going forward. The Group funds asset investment through bank finance.

 

The outlook for 2024 for the Group is strong with growth anticipated in the North Sea and Middle East sectors of the energy market.

Principal risks and uncertainties

The main risks associated with the Group's financial assets and liabilities are set out below:

 

The management of the business and the execution of the Group’s strategy are subject to a number of risks. The key business risks and uncertainties affecting the Group are considered to relate to future downturns in the oil and gas industry, volatility in energy prices, increased competition and increases in material costs required for new asset investment. Other risks associated with the Group’s financial assets and liabilities would include geographical/country political risk and currency/exchange rate risk as the Group expands internationally.

 

The group has finance through loans and hire purchase therefore there is an exposure to interest rate fluctuations and liquidity risk. The group aims to manage this risk by managing cash generated by its operations.

 

Credit risk is managed by ensuring that all sales invoices are raised timeously. Appropriate credit control procedures are followed for all operations.

Development and performance

The Group will continue to seek opportunities to increase turnover and profitability by looking at new geographical markets for existing operations. The Group will look to improve and develop relationships with existing and new customers to expand the trading base within ongoing operations. The Group has already started to diversify into sustainable technology markets to meet emerging energy needs. As a result, the directors are confident that the Group can continue to expand in the foreseeable future.

 

Financial Risk Management

 

Although the directors acknowledge the future development of the business may be subject to unforeseen events out with their control, they continue to follow management policies which promote the continued growth of the Group. Management systems are under continuous review to ensure that the Group maintains a high standard of operations and health and safety. Investment in people and assets will help the Group grow in existing marketplaces and also diversify into new markets.

 

 

INTERVENTION GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

The Group uses a number of key performance indicators (KPI’s) to manage its daily operations and management review. These include, but are not limited to, the KPI’s detailed below:

 

    2023          2022

£         £

Turnover         11,882,381    9,538,985

Operating profit          860,794     969,808

Profit before tax          610,325     (814,970)

Net assets          7,849,280    8,015,153

On behalf of the board

Colin Kennedy
Director
13 January 2025
INTERVENTION GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Results and dividends

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

Ordinary dividends were paid amounting to £470,588. The directors do not recommend payment of a further dividend.

Directors

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

Colin Kennedy
Ross McKenzie
Statement of directors' responsibilities

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

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

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

INTERVENTION GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
On behalf of the board
Colin Kennedy
Director
13 January 2025
INTERVENTION GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTERVENTION GROUP LIMITED
- 5 -

Qualified opinion on financial statements

We have audited the financial statements of Intervention Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

We were not appointed as auditor of the Group until after 31 December 2023 and thus did not observe the counting of the stock held at the year end. We were unable to satisfy ourselves by alternative means concerning stock quantities held at 31 December 2023, which are included in the balance sheet at £609,226, by using other audit procedures. Consequently we were unable to determine whether any adjustment to this amount was necessary.

 

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 group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

INTERVENTION GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTERVENTION GROUP LIMITED
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In respect solely of the limitation on our work relating to stock, described above:

 

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instance 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 and non compliance with laws and regulations is detailed below.

 

The audit team has the appropriate skills and expertise required and through discussions with management and directors and knowledge of the sector to ensure any non compliance is recognised and all necessary disclosures are made. The controls in place help the company mitigate the risk of fraud and also aids them in highlighting any instances of fraud that might have occurred.

INTERVENTION GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTERVENTION GROUP LIMITED
- 7 -

We assessed the susceptibility of the company's financial statements to material misstatement including obtaining an understanding of how fraud and non compliance with laws and regulations may occur.

 

Because of the field in which the client operates we identified the following areas as those most likely to have a material impact on the financial statements;

 

Direct Impact on Financial Statements

 

 

Indirect Impact on Financial Statements

 

 

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 is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

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.

 

INTERVENTION GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTERVENTION GROUP LIMITED
- 8 -

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.

Other matters which we are required to address

The financial statements were not audited in the prior year. Therefore additional audit procedures have been carried out to obtain sufficient appropriate evidence that the opening balances do not contain any misstatements that materially affect the current period's financial statements.

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.

Louise Deuchar, C.A. (Senior Statutory Auditor)
For and on behalf of Findlays Audit Limited, Statutory Auditor
Chartered Accountants
11 Dudhope Terrace
Dundee
DD3 6TS
13 January 2025
Findlays Audit Limited is eligible for appointment as auditor of the company by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006
INTERVENTION GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
11,882,381
9,538,985
Cost of sales
(4,678,572)
(3,442,263)
Gross profit
7,203,809
6,096,722
Administrative expenses
(6,355,234)
(5,145,437)
Other operating income
12,219
18,523
Operating profit
4
860,794
969,808
Interest receivable and similar income
8
5,632
260
Interest payable and similar expenses
9
(256,101)
(112,238)
Fair value gains and losses on write off of subsidiary investment
-
0
(1,672,800)
Profit/(loss) before taxation
610,325
(814,970)
Tax on profit/(loss)
10
(295,615)
127,981
Profit/(loss) for the financial year
25
314,710
(686,989)
Profit/(loss) for the financial year is attributable to:
- Owners of the parent company
223,677
(705,710)
- Non-controlling interests
91,033
18,721
314,710
(686,989)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
223,677
(705,710)
- Non-controlling interests
91,033
18,721
314,710
(686,989)
INTERVENTION GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
12
199,408
232,642
Tangible assets
13
4,067,907
3,574,573
4,267,315
3,807,215
Current assets
Stocks
17
609,226
543,112
Debtors
18
6,238,261
5,088,395
Cash at bank and in hand
2,579,352
2,421,165
9,426,839
8,052,672
Creditors: amounts falling due within one year
19
(3,836,265)
(2,622,543)
Net current assets
5,590,574
5,430,129
Total assets less current liabilities
9,857,889
9,237,344
Creditors: amounts falling due after more than one year
20
(1,890,845)
(1,007,915)
Provisions for liabilities
Deferred tax liability
22
117,764
214,276
(117,764)
(214,276)
Net assets
7,849,280
8,015,153
Capital and reserves
Called up share capital
24
2,000
2,000
Share premium account
25
2,800
2,800
Revaluation reserve
25
-
0
154,175
Profit and loss reserves
25
7,942,338
8,035,074
Equity attributable to owners of the parent company
7,947,138
8,194,049
Non-controlling interests
(97,858)
(178,896)
Total equity
7,849,280
8,015,153
INTERVENTION GROUP LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 13 January 2025 and are signed on its behalf by:
13 January 2025
Colin Kennedy
Director
Company registration number SC572262 (Scotland)
INTERVENTION GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
13
4,880,666
3,696,137
Investments
14
612,732
602,732
5,493,398
4,298,869
Current assets
Debtors
18
5,037,248
4,732,247
Cash at bank and in hand
1,664,239
1,232,854
6,701,487
5,965,101
Creditors: amounts falling due within one year
19
(1,662,717)
(770,674)
Net current assets
5,038,770
5,194,427
Total assets less current liabilities
10,532,168
9,493,296
Creditors: amounts falling due after more than one year
20
(1,812,389)
(876,632)
Provisions for liabilities
Deferred tax liability
22
102,846
196,010
(102,846)
(196,010)
Net assets
8,616,933
8,420,654
Capital and reserves
Called up share capital
24
2,000
2,000
Share premium account
25
2,800
2,800
Revaluation reserve
25
-
0
154,175
Profit and loss reserves
25
8,612,133
8,261,679
Total equity
8,616,933
8,420,654

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £666,868 (2022 - £403,638 loss).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 13 January 2025 and are signed on its behalf by:
13 January 2025
Colin Kennedy
Director
Company registration number SC572262 (Scotland)
INTERVENTION GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
2,000
2,800
308,352
9,021,903
9,335,055
(197,617)
9,137,438
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
-
(705,710)
(705,710)
18,721
(686,989)
Dividends
11
-
-
-
(435,296)
(435,296)
-
(435,296)
Transfers
-
-
(154,177)
154,177
-
-
-
Balance at 31 December 2022
2,000
2,800
154,175
8,035,074
8,194,049
(178,896)
8,015,153
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
223,677
223,677
91,033
314,710
Dividends
11
-
-
-
(470,588)
(470,588)
-
(470,588)
Transfers
-
-
(154,175)
154,175
-
-
-
Acquisition of subsidiary
-
-
-
-
-
(9,995)
(9,995)
Balance at 31 December 2023
2,000
2,800
-
0
7,942,338
7,947,138
(97,858)
7,849,280
INTERVENTION GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Share premium account
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
2,000
2,800
308,352
8,946,436
9,259,588
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
-
(403,638)
(403,638)
Dividends
11
-
-
-
(435,296)
(435,296)
Transfers
-
-
(154,177)
154,177
-
Balance at 31 December 2022
2,000
2,800
154,175
8,261,679
8,420,654
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
666,868
666,868
Dividends
11
-
-
-
(470,588)
(470,588)
Transfers
-
-
(154,175)
154,175
-
Balance at 31 December 2023
2,000
2,800
-
0
8,612,133
8,616,933
INTERVENTION GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
2,204,594
635,574
Interest paid
(256,101)
(112,238)
Income taxes refunded
71,026
124,092
Net cash inflow from operating activities
2,019,519
647,428
Investing activities
Purchase of tangible fixed assets
(2,945,880)
(1,114,549)
Proceeds from disposal of tangible fixed assets
93,495
198,258
Minority Interest share of additional investment
(9,995)
-
Repayment of loans
(167,500)
(100,000)
Interest received
5,632
260
Net cash used in investing activities
(3,024,248)
(1,016,031)
Financing activities
Repayment of borrowings
289,580
-
Repayment of bank loans
187,158
(186,457)
Payment of finance leases obligations
1,156,766
463,037
Dividends paid to equity shareholders
(470,588)
(435,296)
Net cash generated from/(used in) financing activities
1,162,916
(158,716)
Net increase/(decrease) in cash and cash equivalents
158,187
(527,319)
Cash and cash equivalents at beginning of year
2,421,165
2,948,484
Cash and cash equivalents at end of year
2,579,352
2,421,165
INTERVENTION GROUP LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
31
1,577,334
(991,467)
Interest paid
(242,877)
(84,164)
Income taxes (paid)/refunded
(1)
33,750
Net cash inflow/(outflow) from operating activities
1,334,456
(1,041,881)
Investing activities
Purchase of tangible fixed assets
(3,514,637)
(1,366,640)
Proceeds from disposal of tangible fixed assets
69,412
80,285
Proceeds from disposal of subsidiaries
(10,000)
-
0
Repayment of loans
(167,500)
(100,000)
Interest received
5,315
241
Dividends received
1,400,000
1,500,000
Net cash (used in)/generated from investing activities
(2,217,410)
113,886
Financing activities
Repayment of borrowings
289,580
-
Repayment of bank loans
316,081
(100,000)
Payment of finance leases obligations
1,179,266
365,537
Dividends paid to equity shareholders
(470,588)
(435,296)
Net cash generated from/(used in) financing activities
1,314,339
(169,759)
Net increase/(decrease) in cash and cash equivalents
431,385
(1,097,754)
Cash and cash equivalents at beginning of year
1,232,854
2,330,608
Cash and cash equivalents at end of year
1,664,239
1,232,854
INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
1
Accounting policies
Company information

Intervention Group Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is Intervention House, Lunan Bay, By Montrose, Angus, Scotland, DD10 9TG.

 

The group consists of Intervention Group Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of plant and machinery and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Prior period error

Within the financial statements are adjustments relating to prior period totalling £1,580,186. The effect of the prior period adjustments can be found on note 34 which details the effect on both the individual company and the group.

1.3
Business combinations

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

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.4
Basis of consolidation

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

 

All financial statements are made up to 31 December 2023 with the exception of one subsidiary where its reporting date was 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group and adjustments have been made to adjust for any significant events to bring in line with the consolidated financial year end.

 

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

INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.6
Turnover

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

 

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

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.

1.7
Intangible fixed assets - goodwill

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

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Tangible fixed assets

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

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

Tenants improvements
20% straight line per annum
Plant and equipment
10-20% straight line per annum
Office equipment
20% straight line per annum

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

1.9
Fixed asset investments

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

INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

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

1.10
Impairment of fixed assets

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

 

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

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

 

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

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

1.11
Stocks

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

 

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

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

1.12
Cash and cash equivalents

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

INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.13
Financial instruments

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

 

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

 

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

Basic financial assets

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

Other financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

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

 

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

 

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

Other financial liabilities

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

 

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

Derecognition of financial liabilities

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

1.14
Equity instruments

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

1.15
Taxation

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

Current tax

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

INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Deferred tax

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

 

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

1.16
Employee benefits

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

 

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

 

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

1.17
Retirement benefits

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

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.19
Government 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.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

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

Depreciation

Tangible fixed assets are depreciated over a period to reflect their estimated useful lives. The applicability of the assumed lives is reviewed annually, taking into account factors such as physical condition, maintenance and obsolescence.

 

Fixed assets are also assessed as to whether there are indictors of impairment. This assessment involves consideration of the economic viability of the purpose for which the asset is used.

Group hire of equipment

An estimate has been calculated based on 25% of rental and equipment sales for equipment owned by Intervention Group which was used to general sales in the subsidiary companies. The directors believe this is a reasonable estimate of the assets use.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Equipment rental
8,892,974
7,054,185
Equipment sales
665,692
479,555
Other income
2,323,715
2,005,245
11,882,381
9,538,985
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
11,578,778
9,346,032
Rest of world
303,603
192,953
11,882,381
9,538,985
INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 24 -
2023
2022
£
£
Other revenue
Interest income
5,632
260
Grants received
-
7,913
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
153,806
(58,644)
Government grants
-
(7,913)
Depreciation of owned tangible fixed assets
2,420,709
1,852,945
Profit on disposal of tangible fixed assets
(61,658)
(164,277)
Amortisation of intangible assets
33,234
33,234
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,000
-
Audit of the financial statements of the company's subsidiaries
14,736
-
20,736
-
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
74
74
2
2
INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
6
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
4,087,086
3,406,482
96,750
96,750
Social security costs
410,169
394,680
10,853
11,420
Pension costs
312,753
304,558
106,235
122,000
4,810,008
4,105,720
213,838
230,170
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
96,750
96,750
Company pension contributions to defined contribution schemes
106,235
122,000
202,985
218,750
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
5,632
260
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
5,632
260
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
13,224
28,074
Other finance costs:
Interest on finance leases and hire purchase contracts
242,877
84,164
Total finance costs
256,101
112,238
INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
353,846
(77,648)
Adjustments in respect of prior periods
38,280
-
0
Total current tax
392,126
(77,648)
Deferred tax
Origination and reversal of timing differences
(96,511)
(50,333)
Total tax charge/(credit)
295,615
(127,981)

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

2023
2022
£
£
Profit/(loss) before taxation
610,325
(814,970)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
143,548
(154,844)
Tax effect of expenses that are not deductible in determining taxable profit
12,810
13,508
Gains not taxable
5,927
16,193
Unutilised tax losses carried forward
(115,173)
(162,975)
Adjustments in respect of prior years
38,280
-
0
Permanent capital allowances in excess of depreciation
135,380
(74,933)
Adjustments in respect of financial assets
142,794
90,142
Other non-reversing timing differences
11,443
(5,006)
Effect of overseas tax rates
17,117
(1,636)
Under/(over) provided in prior years
-
0
(38,280)
Deferred tax adjustments in respect of prior years
(96,511)
(127,981)
Tax over/under in year
-
0
317,831
Taxation charge/(credit)
295,615
(127,981)
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
470,588
435,296
INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
332,345
Amortisation and impairment
At 1 January 2023
99,703
Amortisation charged for the year
33,234
At 31 December 2023
132,937
Carrying amount
At 31 December 2023
199,408
At 31 December 2022
232,642
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.

 

13
Tangible fixed assets
Group
Tenants improvements
Plant and equipment
Office equipment
Total
£
£
£
£
Cost or valuation
At 1 January 2023
329,118
10,607,081
141,053
11,077,252
Additions
51,141
2,867,170
27,569
2,945,880
Disposals
-
0
(155,672)
(374)
(156,046)
At 31 December 2023
380,259
13,318,579
168,248
13,867,086
Depreciation and impairment
At 1 January 2023
188,711
7,207,577
106,391
7,502,679
Depreciation charged in the year
56,627
2,346,068
18,014
2,420,709
Eliminated in respect of disposals
-
0
(124,177)
(32)
(124,209)
At 31 December 2023
245,338
9,429,468
124,373
9,799,179
Carrying amount
At 31 December 2023
134,921
3,889,111
43,875
4,067,907
At 31 December 2022
140,407
3,399,504
34,662
3,574,573
INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 28 -
Company
Tenants improvements
Plant and equipment
Office equipment
Total
£
£
£
£
Cost or valuation
At 1 January 2023
329,118
9,039,140
141,053
9,509,311
Additions
51,141
3,435,927
27,569
3,514,637
Disposals
-
0
(87,254)
(374)
(87,628)
At 31 December 2023
380,259
12,387,813
168,248
12,936,320
Depreciation and impairment
At 1 January 2023
188,711
5,518,072
106,391
5,813,174
Depreciation charged in the year
56,627
2,237,526
18,014
2,312,167
Eliminated in respect of disposals
-
0
(69,655)
(32)
(69,687)
At 31 December 2023
245,338
7,685,943
124,373
8,055,654
Carrying amount
At 31 December 2023
134,921
4,701,870
43,875
4,880,666
At 31 December 2022
140,407
3,521,068
34,662
3,696,137

Plant & machinery was revalued in previous years. The revaluation surplus is disclosed in the revaluation note.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Plant and machinery
2023
2022
£
£
Group
Cost
16,859,250
16,859,250
Accumulated depreciation
(15,966,060)
(12,594,210)
Carrying value
893,190
4,265,040
Company
Cost
8,429,625
8,429,625
Accumulated depreciation
(7,983,030)
(6,297,105)
Carrying value
446,595
2,132,520
INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
612,732
602,732
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
602,732
Additions
10,000
At 31 December 2023
612,732
Carrying amount
At 31 December 2023
612,732
At 31 December 2022
602,732
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Intervention Rentals U.K. Limited
Intervention House, Lunan bay, By Montrose, DD10 9TG
Ordinary shares
100.00
Nemesis Equipment Limited
Intervention House, Lunan bay, By Montrose, DD10 9TG
Ordinary shares
100.00
Intervention Rentals International Limited
Intervention House, Lunan bay, By Montrose, DD10 9TG
Ordinary shares
100.00
JIQ Manufacturing Limited
The Minklets, Crathes, Banchory, AB31 5QQ
Ordinary shares
80.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Intervention Rentals U.K. Limited
895,570
1,396,459
Nemesis Equipment Limited
177,809
502,098
Intervention Rentals International Limited
102,686
(6,270)
JIQ Manufacturing Limited
(442,705)
272,880
INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
16
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets include:
Instruments measured at fair value through profit or loss
9,426,839
8,052,672
6,701,487
5,965,101
Carrying amount of financial liabilities include:
Measured at fair value through profit or loss
- Other financial liabilities
(5,728,060)
(3,630,458)
(3,475,106)
(1,647,306)
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
503,762
543,112
-
-
Finished goods and goods for resale
105,464
-
0
-
0
-
0
609,226
543,112
-
-
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,757,898
2,864,225
-
0
-
0
Amounts owed by group undertakings
-
-
3,329,418
3,188,972
Other debtors
2,252,113
2,048,878
1,702,116
1,543,086
Prepayments and accrued income
122,197
61,883
5,714
189
6,132,208
4,974,986
5,037,248
4,732,247
Amounts falling due after more than one year:
Other debtors
106,053
113,409
-
0
-
0
Total debtors
6,238,261
5,088,395
5,037,248
4,732,247
INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
21
317,667
228,724
283,047
99,981
Obligations under finance leases
1,155,490
613,331
1,132,990
590,831
Other borrowings
21
123,945
-
0
123,945
-
0
Trade creditors
544,271
508,987
-
0
-
0
Corporation tax payable
509,596
46,444
33,750
33,750
Other taxation and social security
371,469
327,379
3,876
4,887
Other creditors
35,369
227,258
-
0
-
0
Accruals and deferred income
778,458
670,420
85,109
41,225
3,836,265
2,622,543
1,662,717
770,674

Obligations under hire purchase contracts of £1,155,490 (2022 - £613,331) are secured by a bond and floating charge over the assets of the company.

 

The bank loan of £317,667 (2022 - 228,724) is secured against cash deposits to the value of £375,000.

 

The other borrowings of £123,945 (2022 - £nil) are secured by a bond and floating charge over the assets of the company.

20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
233,034
134,819
233,034
100,019
Obligations under finance leases
1,466,220
851,613
1,413,720
776,613
Other borrowings
21
165,635
-
0
165,635
-
0
Other creditors
25,956
21,483
-
0
-
0
1,890,845
1,007,915
1,812,389
876,632

Obligations under hire purchase contracts of £1,466,220 (2022 - £851,613) are secured by a bond and floating charge over the assets of the company.

 

The bank loan of £233,034 (2022 - 134,819) is secured against cash deposits.

 

The other borrowings of £165,635 (2022 - £nil) are secured by a bond and floating charge over the assets of the company.

 

An intercompany guarantee is held over all the assets within the Intervention Group Limited. All borrowings are repayable in under 5 years

INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
550,701
363,543
516,081
200,000
Other loans
289,580
-
0
289,580
-
0
840,281
363,543
805,661
200,000
Payable within one year
441,612
228,724
406,992
99,981
Payable after one year
398,669
134,819
398,669
100,019

Bank loans are secured by a bond and floating charge over all of the company assets. An intercompany guarantee is held over the assets of all the companies within Intervention Group Limited.

 

In January 2023 the company secured a loan repayable over 3 years. The loan is secured by a floating charge over all the assets within the group. At the balance sheet date there was still around 2 years outstanding. A further bank loan was secured in May 2023 with the same conditions.

 

Other borrowings represents a loan secured in March 2023 which is secured over assets and repayable over a 3 year period.

 

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
117,764
214,276
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
102,846
196,010
INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Deferred taxation
(Continued)
- 33 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
214,276
196,010
Credit to profit or loss
(96,512)
(93,164)
Liability at 31 December 2023
117,764
102,846

The deferred tax liability set out above is expected to reverse within the next few years and relates to accelerated capital allowances that are expected to mature within the same period.

23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
312,753
304,558

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

 

Included in group creditors at the year end was £21,881 (2022 - £19,793) relating to pension contributions outstanding.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A ordinary shares of £1 each
850
850
850
850
B Ordinary shares of £1 each
850
850
850
850
C Ordinary shares of £1 each
300
300
300
300
2,000
2,000
2,000
2,000
25
Reserves
Revaluation reserve

The revaluation reserve relates to the revaluation of plant & machinery owned by the group, as adjusted for deferred tax. At the year end £nil (2022 - £154,175) was included in a revaluation reserve relating to P&M held that was revalued a number of years ago. This is considered to be a non-distributable reserve. Of the above £nil (2023 - £154,175) relates to the company's share of the non distributable reserves.

INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
26
Operating lease commitments

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
373,572
406,605
-
-
Between two and five years
1,018,770
1,037,361
-
-
In over five years
1,631,562
2,126,036
-
-
3,023,904
3,570,002
-
-
27
Events after the reporting date

Following the year end there was a restructure of shareholdings within the company and additional shares were allotted. The majority shareholder is now Intervention Group Employee Trustee Limited. This has no financial impact on the financial statements at 31 December 2023.

28
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
936,728
827,783
29
Directors' transactions

C Kennedy, a director of the company had an interest free loan during the year which amounted to £133,750 (2022 - £66,875). This loan is repayable on demand and the maximum amount due during the year was £133,750. At the year end the amount included in debtors due to the company is £133,750 .

 

R McKenzie, a director of the company had an interest free loan during the year which amounted to £133,750 (2022 - £66,875). This loan is repayable on demand and the maximum amount due during the year was £133,750. At the year end the amount included in debtors due to the company is £133,750.

INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 35 -
30
Cash generated from group operations
2023
2022
£
£
Profit/(loss) after taxation
314,710
(686,989)
Adjustments for:
Taxation charged/(credited)
295,615
(127,981)
Finance costs
256,101
112,238
Investment income
(5,632)
(260)
Gain on disposal of tangible fixed assets
(61,658)
(164,277)
Fair value (gain)/loss on write off of subsidiary
-
0
1,672,800
Amortisation and impairment of intangible assets
33,234
33,234
Depreciation and impairment of tangible fixed assets
2,420,709
1,852,945
Movements in working capital:
Increase in stocks
(66,112)
(468,595)
Increase in debtors
(982,372)
(2,250,439)
(Decrease)/increase in creditors
(1)
662,898
Cash generated from operations
2,204,594
635,574
31
Cash generated from/(absorbed by) operations - company
2023
2022
£
£
Profit/(loss) after taxation
666,868
(403,638)
Adjustments for:
Taxation credited
(93,163)
(36,025)
Finance costs
242,877
84,164
Investment income
(1,405,315)
(1,500,241)
Gain on disposal of tangible fixed assets
(51,471)
(61,655)
Fair value (gain)/loss on write off of subsidiary
-
0
1,672,800
Depreciation and impairment of tangible fixed assets
2,312,167
1,738,165
Movements in working capital:
Increase in debtors
(137,502)
(2,519,173)
Increase in creditors
42,873
34,136
Cash generated from/(absorbed by) operations
1,577,334
(991,467)
INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 36 -
32
Analysis of changes in net funds/(debt) - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
2,421,165
158,187
2,579,352
Borrowings excluding overdrafts
(363,543)
(476,738)
(840,281)
Obligations under finance leases
(1,464,944)
(1,156,766)
(2,621,710)
592,678
(1,475,317)
(882,639)
33
Analysis of changes in net debt - company
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,232,854
431,385
1,664,239
Borrowings excluding overdrafts
(200,000)
(605,661)
(805,661)
Obligations under finance leases
(1,367,444)
(1,179,266)
(2,546,710)
(334,590)
(1,353,542)
(1,688,132)
INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
34
Prior period adjustment
Reconciliation of changes in equity - group
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Investment in subsidiary written off
-
(1,672,800)
Hire of Equipment with subsidiary
-
71,775
Consultancy fees paid on behalf of subsidiary
-
20,839
Carraige paid by subsidiary to be reimbursed
-
(4,563)
Total adjustments
-
(1,584,749)
Equity as previously reported
9,137,438
9,599,902
Equity as adjusted
9,137,438
8,015,153
Analysis of the effect upon equity
Profit and loss reserves
-
(1,584,749)
Reconciliation of changes in profit/(Loss) for the previous financial period
2022
£
Adjustments to prior year
Investment in subsidiary written off
(1,672,800)
Hire of Equipment with subsidiary
71,775
Consultancy fees paid on behalf of subsidiary
20,839
Carraige paid by subsidiary to be reimbursed
(4,563)
Total adjustments
(1,584,749)
Profit as previously reported
897,760
Loss as adjusted
(686,989)
INTERVENTION GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
34
Prior period adjustment
(Continued)
- 38 -
Reconciliation of changes in equity - company
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Investment in subsidiary written off
-
(1,672,800)
Hire of Equipment with subsidiary
-
71,775
Consultancy fees paid on behalf on Subsidiary
-
20,839
Total adjustments
-
(1,580,186)
Equity as previously reported
9,259,588
10,000,840
Equity as adjusted
9,259,588
8,420,654
Analysis of the effect upon equity
Profit and loss reserves
-
(1,580,186)
Reconciliation of changes in the profit/(Loss) for the previous financial period
2022
£
Adjustments to prior year
Investment in subsidiary written off
(1,672,800)
Hire of Equipment with subsidiary
71,775
Consultancy fees paid on behalf on Subsidiary
20,839
Total adjustments
(1,580,186)
Profit as previously reported
1,176,548
Loss as adjusted
(403,638)
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