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Registrar

Registration number: 07748951

Inhabit Europe Limited

Annual Report and Financial Statements

for the Year Ended 31 December 2023

 

Inhabit Europe Limited

Contents

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3 to 9

 

Inhabit Europe Limited

Company Information

Directors

D S Boyes

F Basselot

Company secretary

Pinsent Masons Secretarial Limited

Registered office

Ground Floor
96 Great Suffolk Street
London
SE1 0BE

Bankers

HSBC Bank Plc
28 Borough High Street
Southwark
London
SE1 1YB

Auditors

Lambert Chapman LLP
Chartered Accountants and Registered Statutory Auditors
3 Warners Mill
Silks Way
Braintree
Essex
CM7 3GB

 

Inhabit Europe Limited

(Registration number: 07748951)
Balance Sheet as at 31 December 2023

Note

2023
£

(As restated)

2022
£

Fixed assets

 

Tangible assets

4

155,657

77,995

Investments

5

1,675,587

-

 

1,831,244

77,995

Current assets

 

Debtors

6

2,072,495

1,668,282

Cash at bank and in hand

 

150,864

247,213

 

2,223,359

1,915,495

Creditors: Amounts falling due within one year

7

(1,802,354)

(1,288,915)

Net current assets

 

421,005

626,580

Total assets less current liabilities

 

2,252,249

704,575

Creditors: Amounts falling due after more than one year

7

(2,804,361)

-

Provisions for liabilities

(30,874)

(14,819)

Net (liabilities)/assets

 

(582,986)

689,756

Capital and reserves

 

Called up share capital

8

1

1

Retained earnings

(582,987)

689,755

Shareholders' (deficit)/funds

 

(582,986)

689,756

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 14 February 2025 and signed on its behalf by:
 

F Basselot
Director

 

Inhabit Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is: Ground Floor, 96 Great Suffolk Street, London, SE1 0BE.

These financial statements were authorised for issue by the Board on 14 February 2025.

2

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

These financial statements are presented in Sterling (£), which is the company's functional currency.

Group accounts not prepared

The company is part of a small group. The company has taken advantage of the exemption provided by Section 398 of the Companies Act 2006 and has not prepared group accounts..

Going concern

During the year, the company reported a loss of £1,272,742 (2022: £258,685) and had net liabilities of £582,986 (2022: £689,756 net assets).

The company has access to a group cash pool and receives continued support from the parent company to ensure that it can meet liabilities as the fall due. Access to the cash pool has been agreed as part of the services expansion strategy relating to the global acquisition of WME group which enabled the Inhabit group to secure a significant contract in the Middle East.

The directors have a reasonable expectation that the company will continue to trade for the foreseeable future and accordingly the financial statements have been prepared on a going concern basis.

Audit report

The Independent Auditor's Report was unqualified. . The name of the Senior Statutory Auditor who signed the audit report on 14 February 2025 was Nicholas Forsyth FCA, who signed for and on behalf of Lambert Chapman LLP.

Reclassification of comparative amounts

Within fixed assets bought forwards costs of £9,293 and bought forwards depreciation of £155 has been reclassified to property improvements from fixtures and fittings to more accurately reflect the asset class of items.

Within administrative expenses an amount of £777,654 relating to wages and salaries has been reclassified to cost of sales in the prior year to more accurately reflect gross profit.

 

Inhabit Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of engineering services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

Tax

Current Tax is recognised in the profit and loss account, 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 on material temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation.

Depreciation

Depreciation is charged so as to write off the cost over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Office equipment

20% Straight line basis

Fixtures and fittings

20% Straight line basis

Property improvements

20% Straight line basis

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits.

Trade debtors

Trade debtors are amounts due from customers for services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

 

Inhabit Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

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 Profit and Loss Account 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.

Share capital

Ordinary shares are classified as equity.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are paid.

Defined contribution pension obligation

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.

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 27 (2022 - 18).

 

Inhabit Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

4

Tangible assets

Restated
Fixtures and fittings
£

Office equipment
£

Restated
Property improvements
 £

Total
£

Cost or valuation

At 1 January 2023

48,690

53,618

9,293

111,601

Additions

9,693

24,279

79,113

113,085

Disposals

-

(6,191)

-

(6,191)

At 31 December 2023

58,383

71,706

88,406

218,495

Depreciation

At 1 January 2023

1,353

32,098

155

33,606

Charge for the year

11,125

9,988

12,636

33,749

Eliminated on disposal

-

(4,517)

-

(4,517)

At 31 December 2023

12,478

37,569

12,791

62,838

Carrying amount

At 31 December 2023

45,905

34,137

75,615

155,657

At 31 December 2022

47,337

21,520

9,138

77,995

5

Investments

2023
£

2022
£

Investments in subsidiaries

1,675,587

-

Subsidiaries

£

Cost or valuation

Additions

1,675,587

Carrying amount

At 31 December 2023

1,675,587

 

Inhabit Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

2023

2022

Subsidiary undertakings

WME Consultants Limited

Ground Floor, Global House, 96-108 Great Sufflok Street, Southwark, London, SE1 0BE

England

Ordinary

100%

0%

Subsidiary undertakings

WME Consultants Limited

The principal activity of WME Consultants Limited is Engineering services.

6

Debtors

Note

2023
£

2022
£

Trade debtors

 

898,436

565,410

Amounts recoverable on contracts

 

313,060

218,750

Amounts owed by group undertakings

 

637,562

117,429

Directors loan

10

33,740

38,183

Other debtors

 

74,438

705,909

Prepayments

 

115,259

22,601

   

2,072,495

1,668,282

Less non-current portion

 

(29,143)

(33,663)

 

2,043,352

1,634,619

Details of non-current trade and other debtors

£29,143 (2022 -£33,663) of Directors loan is classified as non current.

 

Inhabit Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

7

Creditors

Creditors: amounts falling due within one year

2023
£

2022
£

Due within one year

Trade creditors

18,978

14,281

Amounts owed to group undertakings

1,415,444

1,102,663

Taxation and social security

121,640

96,069

Other creditors

5,941

7,833

Accruals and deferred income

240,351

68,069

1,802,354

1,288,915

Creditors: amounts falling due after more than one year

2023
£

2022
£

Due after one year

Amounts owed to group undertakings

2,804,361

-

8

Share capital

Allotted, called up and fully paid shares

2023

2022

No.

£

No.

£

Ordinary shares of £1 each

1

1

1

1

       
 

Inhabit Europe Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

9

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

192,880

192,880

Later than one year and not later than five years

160,733

353,613

353,613

546,493

10

Related party transactions

Transactions with directors

2023

At 1 January 2023
£

Repayments by director
£

At 31 December 2023
£

38,183

(4,443)

33,740

 

2022

At 1 January 2022
£

Advances to director
£

Repayments by director
£

At 31 December 2022
£

-

40,443

(2,260)

38,183

 

After the year end a director owing the company £33,740 resigned. This loan balance was repaid in full after the year end.

11

Parent and ultimate parent undertaking



 The company's immediate parent is Inhabit Limited, incorporated in China.

 

The parent of the largest group in which these financial statements are consolidated is Inhabit Limited, incorporated in China.

The address of Inhabit Limited is:
24/F, OTB Building, 160 Gloucester Road, Wan Chai, Hong Kong