Registration number:
Mosaic Island Ltd
for the Year Ended 31 July 2024
Mosaic Island Ltd
Contents
Company Information |
|
Directors' Report |
|
Strategic Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Statement of Comprehensive Income |
|
Balance Sheet |
|
Statement of Changes in Equity |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Mosaic Island Ltd
Company Information
Directors |
Mr C D Holmes Mr D J Tyson Mr M J Lock Mr D J Morgan Palander Holdings SL |
Registered office |
|
Auditors |
|
Mosaic Island Ltd
Directors' Report for the Year Ended 31 July 2024
The directors present their report and the financial statements for the year ended 31 July 2024.
Principal activity
Mosaic Island is a fast-growing UK professional services business that provides a range of design-led services and consultancy to support the end-to-end Design and Assurance of complex IT/Business change.
Directors of the company
The directors who held office during the year were as follows:
Information included in the Strategic Report
Details concerning the company's future developments can be found in the Strategic Report. These form part of this report by way of cross reference.
Principal risks and uncertainties
The company's credit risk arises primarily through trade debtors. The amounts stated in the balance sheet are stated net of bad debt provisions. A bad debt provision is recognised by the entity when there is objective evidence that a debtor has become impaired, for example where the customer enters into bankruptcy proceedings.
Our belief remains that the UK business environment remains changeable with considerable economic uncertainty. In order to respond to the resulting challenges Mosaic Island will continue its strategy of focusing on building strong strategic relationships within our target sectors and developing flexible consulting, managed service, design and assurance offerings.
Dividends
The directors have recommended the payment of a dividend of £565,583 (2023: £801,284) and the remaining profit for the year will be taken to retained earnings.
Mosaic Island Ltd
Directors' Report for the Year Ended 31 July 2024
Approved by the
.........................................
Mr D J Morgan
Director
Mosaic Island Ltd
Strategic Report for the Year Ended 31 July 2024
The directors present their strategic report for the year ended 31 July 2024.
The company has chosen in accordance with section 414C(11) of the Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of The Large and Medium-Sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors’ report. It has done so in respect of future developments and financial instruments.
Fair review of the business
The 2023-24 financial year marks another successful year of operation for Mosaic Island Ltd. In the increasingly complex world of IT, with its bewildering array of choices and options, the need for clarity and sound advice based upon skills and experience is fundamental to navigating a safe roadmap for change. We continue to enable this through the combination of our people and services. Our clients have benefited from access to our experts and methods in the design of change (from strategic direction through to detailed solution design), and we have assured that the outcome during delivery remains aligned with the original design. This makes Mosaic Island a compelling choice, bridging a crucial transformation gap and allowing our clients to focus on their core business activities. In addition to meeting and exceeding our clients’ needs during 2023/24, the management team have continued to focus on improving our service delivery by further development of our consulting frameworks, reducing operational overhead costs and adopting an effective team structure to ensure that every engagement has strong management oversight.
Mosaic Island has continued to strengthen its Digital Transformation and Managed Service propositions and remove a significant level of complexity and risk from our clients’ Design and Delivery operations. We believe this combination of strong propositions, risk management, effective financial management and our focus on delivering positive client outcomes has resulted in clear market differentiation and further underpins Mosaic Island’s reputation for:
• Trusted Advice – we provide independent (technology agnostic) advice and tell it as we see it so that our clients know they are getting the facts – even if this may sometimes include uncomfortable news,
• Comprehensive Insight – our advice and guidance come from sharing our accumulated knowledge – both the successes and challenges - gained across all our engagements,
• Flexible Delivery – our permanent/associate model means that we are always able to provide the best people for the job and we can rapidly scale up or down with demand.
Mosaic Island Ltd
Strategic Report for the Year Ended 31 July 2024
The company's key financial and other performance indicators during the year were as follows:
Unit |
2024 |
2023 |
|
Turnover |
£ |
16,249,369 |
16,870,940 |
Gross profit |
£ |
2,706,176 |
2,534,637 |
Gross profit margin |
% |
16.65 |
15.02 |
Net profit |
£ |
764,431 |
713,492 |
Net profit margin |
% |
4.70 |
4.22 |
Net assets |
£ |
463,914 |
265,066 |
Current ratio |
N/A |
1.13 |
1.06 |
Future developments
Mosaic Island continues to be ideally placed to provide innovative transformational solutions that help our clients during uncertain trading conditions. Despite the current economic difficulties , we firmly believe that the combination of our dynamic team of skilled and experienced people, our tightly focused propositions and an exciting pipeline of current and projected work, all contribute to make Mosaic Island well positioned to continue to trade strongly.
Carbon reduction plan
Mosaic Island is committed to achieving Net Zero by 2050. Emissions are measured and reported using the Environmental Reporting Guidelines, including Streamlined Energy & Carbon Reporting (SECR) guidance issued by the UK Government in April 2019. The latest report for the period ending December 31 2023 is available on our website at https://www.mosaicisland.co.uk
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Reappointment of auditors
In accordance with section 485 of the Companies Act 2006, a resolution for the re-appointment of Four Fifty Partnership Limited as auditors of the company is to be proposed at the forthcoming Annual General Meeting.
Mosaic Island Ltd
Strategic Report for the Year Ended 31 July 2024
Approved by the
......................................... |
Mosaic Island Ltd
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Mosaic Island Ltd
Independent Auditor's Report to the Members of Mosaic Island Ltd
Opinion of financial statements
We have audited the financial statements of Mosaic Island Ltd (the 'company') for the year ended 31 July 2024, which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor 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 director's 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 original financial statements were 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.
Mosaic Island Ltd
Independent Auditor's Report to the Members of Mosaic Island Ltd
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.
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.
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Mosaic Island Ltd
Independent Auditor's Report to the Members of Mosaic Island Ltd
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 7], 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 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.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• |
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.
|
• |
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 company's internal control. |
• |
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. |
Mosaic Island Ltd
Independent Auditor's Report to the Members of Mosaic Island Ltd
• |
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 disclosure 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. |
• |
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the company audit. We remain solely responsible for our audit opinion. |
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
......................................
For and on behalf of
Chartered Accountants and Registered Auditors
34 Boulevard
North Somerset
BS23 1NF
Mosaic Island Ltd
Statement of Comprehensive Income for the Year Ended 31 July 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Operating profit |
1,020,932 |
905,696 |
|
Interest payable and similar expenses |
|
( |
|
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Mosaic Island Ltd
(Registration number: 05882056)
Balance Sheet as at 31 July 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
8,729 |
8,729 |
|
Share premium reserve |
82,426 |
82,426 |
|
Capital redemption reserve |
156 |
156 |
|
Retained earnings |
372,603 |
173,755 |
|
Shareholders' funds |
463,914 |
265,066 |
Approved and authorised by the
......................................... |
Mosaic Island Ltd
Statement of Changes in Equity for the Year Ended 31 July 2024
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 August 2023 |
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
( |
( |
At 31 July 2024 |
|
|
|
|
|
Share capital |
Share premium |
Capital redemption reserve |
Retained earnings |
Total |
|
At 1 August 2022 |
|
|
|
|
|
Profit for the year |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
( |
( |
At 31 July 2023 |
8,729 |
82,426 |
156 |
173,755 |
265,066 |
Mosaic Island Ltd
Statement of Cash Flows for the Year Ended 31 July 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Loss on disposal of tangible assets |
|
|
|
Finance costs |
( |
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in trade debtors |
( |
( |
|
Increase/(decrease) in trade creditors |
|
( |
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
( |
|
Cash flows from investing activities |
|||
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
( |
|
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
|
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase/(decrease) in cash and cash equivalents |
|
( |
|
Cash and cash equivalents at 1 August |
|
|
|
Cash and cash equivalents at 31 July |
248,631 |
107,629 |
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The presentation currency of the financial statements is Pound Sterling (£).
Going concern
The directors have prepared the financial statements on a going concern basis as, in their opinion, the Company is able to meet its obligations as they fall due. This opinion is based on detailed forecasting for the 12 months from the signing of these financial statements, based on current and expected market conditions together with current performance levels.
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
2 |
Accounting policies (continued) |
Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured
reliably; and
- the costs incurred and the costs to complete the contract can be measured reliably.
Interest income
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when 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 and that are expected to apply to the reversal of the timing difference.
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
2 |
Accounting policies (continued) |
Tangible assets
Tangible assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation
Depreciation is charged so as to allocate the cost of assets or their residual value over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
25% Reducing balance |
Office equipment |
33% Reducing balance |
Software |
33% Reducing balance |
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.
Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.
Debtors
Short term debtors are recognised initially at the transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are subsequently measured at amortised cost using the effective interest method, less provision for impairment.
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
2 |
Accounting policies (continued) |
Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the statement of comprehensive income over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Provisions
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
2 |
Accounting policies (continued) |
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
Defined contribution pension obligation
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Financial instruments
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
2 |
Accounting policies (continued) |
interest that is not a market rate or in the case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
Judgements in applying accounting policies and key sources of estimation uncertainty |
The preparation of the financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgements that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of the revenues and expenses during the reporting period.
The trade debtor balances of £3,355,657 (2023 - £3,359,477) recorded in the company's balance sheet comprise a relatively small number of large balances. A line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the levels of debts which ultimately prove to be uncollectable.
The accrued income balance of £207,951 (2023 - £101,243) recorded in the company's balance sheet represents fees for professional work which have been earned but not invoiced. The balance is regularly reviewed to ensure that it is recoverable.
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Loss on disposal of property, plant and equipment |
484 |
3,437 |
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
Interest payable and similar expenses |
2024 |
2023 |
|
Interest expense on other finance liabilities |
( |
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Consultants |
|
|
Administration |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Contributions paid to defined contribution pension schemes |
|
|
502,548 |
514,924 |
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
7 |
Directors' remuneration (continued) |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2024 |
2023 |
|
Accruing benefits under defined benefit pension scheme |
|
|
In respect of the highest paid director:
2024 |
2023 |
|
Remuneration |
|
|
Auditors' remuneration |
2024 |
2023 |
|
Audit of the financial statements |
|
|
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
Taxation |
Tax charged/(credited) in the income statement
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
( |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Increase (decrease) from effect of different UK tax rates on some earnings |
- |
( |
Effect of expenses not deductible in determining taxable profit |
|
|
Tax increase (decrease) from other short-term timing differences |
( |
( |
Total tax charge |
|
|
There are no factors that will have a material affect on future tax charges.
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
Tangible assets |
Office equipment |
Total |
|
Cost or valuation |
||
At 1 August 2023 |
|
|
Additions |
|
|
Disposals |
( |
( |
At 31 July 2024 |
|
|
Depreciation |
||
At 1 August 2023 |
|
|
Charge for the year |
|
|
Eliminated on disposal |
( |
( |
At 31 July 2024 |
|
|
Carrying amount |
||
At 31 July 2024 |
|
|
At 31 July 2023 |
|
|
Debtors |
Current |
2024 |
2023 |
Trade debtors |
|
|
Prepayments |
|
|
Accrued income |
|
|
|
|
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
Cash and cash equivalents |
2024 |
2023 |
|
Cash at bank |
|
|
Invoice discounting current account |
- |
( |
Cash and cash equivalents in statement of cash flows |
248,631 |
107,629 |
Creditors |
Note |
2024 |
2023 |
|
Due within one year |
|||
Loans and borrowings |
- |
|
|
Trade creditors |
|
|
|
Social security and other taxes |
|
|
|
Other payables |
|
|
|
Accrued expenses |
|
|
|
Income tax liability |
115,139 |
79,604 |
|
|
|
Financial instruments |
Financial assets
2024 |
2023 |
|
Financial assets measured at fair value through profit or loss |
248,631 |
556,906 |
Financial assets that are debt instruments measured at amortised cost |
3,563,608 |
3,460,720 |
3,812,239 |
4,017,626 |
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
14 |
Financial instruments (continued) |
Financial liabilities
2024 |
2023 |
|
Financial liabilities measured at fair value through profit or loss |
- |
449,277 |
Financial liabilities measured at amortised cost |
2,795,829 |
2,700,878 |
2,795,829 |
3,150,155 |
Financial assets that are debt instruments measured at amortised cost comprise trade debtors and accrued income.
Financial liabilities measured at amortised cost comprise trade creditors, accruals and deferred income.
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 August 2023 |
|
|
Additional provisions |
( |
( |
At 31 July 2024 |
|
|
|
The deferred tax provision is wholly attributable to accelerated capital allowances.
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company and amounted to £
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
6,551 |
|
6,551 |
|
|
2,178 |
|
2,178 |
|
|
|
|
Reserves |
Capital redemption reserve
The capital redemption reserve is a non-distributable reserve and represents paid up share capital, created upon the company's buyback of shares.
Profit and loss account
Profit & loss account reflects the entity’s accumulated earnings less dividends paid and payable.
Share premium
The share premium reserve represents funds received for shares allotted for a price above par value.
Loans and borrowings |
2024 |
2023 |
|
Current loans and borrowings |
||
Invoice discounting current account |
- |
|
The invoice discounting current account balance is secured by way of an unlimited debenture over the assets of the company. This is further secured by a cross company guarantee from the parent company, J&P Capital Limited.
Mosaic Island Ltd
Notes to the Financial Statements for the Year Ended 31 July 2024
Dividends |
Interim dividends paid
2024 |
2023 |
|||
Interim dividend of £Nil (2023 - £ |
- |
|
||
Interim dividend of £ |
|
|
||
|
|
Related party transactions |
Loans to related parties
2023 |
Parent |
Total |
At start of period |
( |
( |
Advanced |
|
|
At end of period |
- |
- |
|
Parent and ultimate parent undertaking |
On 11th September 2019 the shareholders of Mosaic Island Ltd entered into a share purchase agreement with J&P Capital Limited, a company registered in England and Wales, company number 11544609, whereby J&P Capital Limited acquired 75.04% of the share capital of Mosaic Island Ltd.
The company's immediate parent is
The ultimate parent is
The ultimate controlling party is