Year Ended
Registration number:
Infinite Future Holdings Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Infinite Future Holdings Limited
Company Information
Directors |
V A D Bernstein K M M Gillham |
Registered office |
|
Auditors |
|
Infinite Future Holdings Limited
Strategic Report
Year Ended 31 December 2023
The directors present their strategic report for the year ended 31 December 2023.
Principal activity
The principal activity of the group is that of construction installation as delivered by the trading subsidiary Stancold Plc.
The principal activity of the company is that of the ownership of property and investment in its trading subsidiary
Fair review of the business
2023 presented a challenging operating environment for the Group. Order intake fell short of initial expectations, primarily driven by a contraction in the construction industry, rising interest rates, and political uncertainty. While this impacted overall revenue, gross profit margins remained resilient. These factors also contributed to increased delays in collecting receivables from some clients. While this poses a short-term risk, we are actively improving recovery processes and remain optimistic about improving cash collection in the coming months.
As anticipated, the first two quarters of 2024 saw a slowdown in revenue due to the ongoing headwinds in the construction sector. However, we have witnessed a significant improvement in Q3 and Q4, with order intake rebounding strongly. Looking ahead to 2025, the outlook is positive. Our current order book is robust, and the pipeline of potential projects is extremely encouraging including some unique solutions which have the potential to establish the company as a market-leader in those sectors.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2023 |
2022 |
Turnover |
£'000 |
12,283 |
17,258 |
Gross Profit Margin |
% |
23 |
17 |
Operating Profit |
£'000 |
588 |
1,416 |
Net Assets |
£'000 |
3,840 |
4,051 |
Infinite Future Holdings Limited
Strategic Report
Year Ended 31 December 2023
Principle risks and uncertainties
Client Creditworthiness and Cash Flow:
Mitigation: Strengthen credit risk assessment processes, implement robust collection strategies, and build stronger relationships with key clients.
Inflationary Pressures:
Mitigation: Proactively negotiate contracts that account for potential cost increases, explore alternative sourcing strategies to mitigate supply chain disruptions, and continuously review and optimise operational costs.
Government Policies & Industry Confidence:
Mitigation: Closely monitor government policies and their impact on the construction industry. Ensure our commercial processes will respond accordingly. Maintain a strong industry presence and continue to actively partner with existing and new clients.
Organisational Development:
To navigate these challenges and capitalise on future opportunities, we are taking the following steps:
Strengthening Key Teams: We are bolstering our finance and commercial teams with experienced professionals to enhance financial management and drive improvement in revenue and margin performance.
Board Establishment: We are strengthening our board structure to improve strategic oversight and guidance, ensuring sound decision-making and delivery of long-term objectives.
We believe that by proactively addressing these challenges and leveraging our strengths, the Group is well-positioned to achieve sustainable growth and success in the years to come.
Approved and authorised by the
......................................... |
Infinite Future Holdings Limited
Directors' Report
Year Ended 31 December 2023
The directors present their report and the for the year ended 31 December 2023.
Dividends
The total distribution of dividends during the year was £633,045 (2022: £178,852).
Directors of the group
The directors who held office during the year were as follows:
Donations and Expenditure
Donations in the year amounted to £2,282 (2022: £2,076).
Disclosure of information to the auditor
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 auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
......................................... |
Infinite Future Holdings Limited
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 group and the company and of the profit or loss of the group 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 UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Infinite Future Holdings Limited
Independent Auditor's Report to the Members of Infinite Future Holdings Limited
Opinion
We have audited the financial statements of Infinite Future Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated 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 group's and the parent company's affairs as at 31 December 2023 and of the group's 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 group 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 group and parent 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.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
Infinite Future Holdings Limited
Independent Auditor's Report to the Members of Infinite Future Holdings Limited
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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 group’s and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.
Infinite Future Holdings Limited
Independent Auditor's Report to the Members of Infinite Future Holdings Limited
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud is detailed below:
As part of our audit planning we obtained an understanding of the legal and regulatory framework that is applicable to the entity and the sector in which it operates to identify the key laws and regulations affecting the entity. As part of this assessment process we discussed with management the laws and regulations applicable to the company, reviewed certification identified on the company website and other communications and considered findings from previous audits.
The key laws and regulations we identified were Health and Safety Regulations, and Employment Laws.
We have also considered those laws and regulations that have a direct impact on the preperation of the financial statements, primarily Companies House Act 2006 and Corporation Taxes Acts 2009 and 2010.
We have discussed with management how the compliance of these laws and regulations is monitored and discussed policies and procedures in place.
We also identified the individuals who have responsibility for ensuring that the entity complies with laws and regulations and deal with reporting any issues if they arise.
As part of our planning procedures, we assessed the risk of any non-compliance with such laws and regulations. Our procedures involved the following:
• Enquiring of management, including obtaining and reviewing support documentation, concerning the company's policies and procedures relating to identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud. Internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations;
Discussing among the engagement team how and where fraud might occur in the Financial Statements and any potential indicators of fraud;
• Obtaining an understanding of the legal and regulatory frameworks that the company operates in, focusing on those laws and regulations that had a direct effect on the Financial Statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the UK Companies Act and relevant tax legislation.
Infinite Future Holdings Limited
Independent Auditor's Report to the Members of Infinite Future Holdings Limited
In addition to the above, our procedures to respond to risks identified included the following:
• Reviewing the financial statement disclosures and testing to support documentation to assess compliance with relevant laws and regulations;
• Enquiring of management concerning actual and potential litigation and claims; performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
• In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other judgements;
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. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliverate concealment, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council's website at: www.frc.org.uk/auditorresponsibilities. This description forms part of our audit 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.
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Ground Floor
Blackbrook Gate 1
Blackbrook Business Park
Somerset
TA1 2PX
Infinite Future Holdings Limited
Consolidated Profit and Loss Account
Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
- |
|
|
Operating profit |
|
|
|
Interest payable and similar expenses |
( |
( |
|
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
The group has no recognised gains or losses for the year other than the results above.
Infinite Future Holdings Limited
Consolidated Balance Sheet
31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investment property |
|
|
|
Investments |
|
- |
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
705,000 |
705,000 |
|
Revaluation reserve |
340,271 |
340,271 |
|
Profit and loss account |
2,794,873 |
3,005,737 |
|
Equity attributable to owners of the company |
3,840,144 |
4,051,008 |
|
Shareholders' funds |
3,840,144 |
4,051,008 |
Approved and authorised by the
......................................... |
Company Registration Number: 04441155
Infinite Future Holdings Limited
Balance Sheet
31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investment property |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
705,000 |
705,000 |
|
Revaluation reserve |
340,271 |
340,271 |
|
Profit and loss account |
359,439 |
649,648 |
|
Shareholders' funds |
1,404,710 |
1,694,919 |
The company has taken the exemption in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account. The company made a profit after tax for the financial year of £342,836 (2022 - profit of £171,340).
Approved and authorised by the
......................................... |
Company Registration Number: 04441155
Infinite Future Holdings Limited
Consolidated Statement of Changes in Equity
Year Ended 31 December 2023
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 January 2023 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 December 2023 |
|
|
|
|
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 January 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 December 2022 |
705,000 |
340,271 |
3,005,737 |
4,051,008 |
Infinite Future Holdings Limited
Statement of Changes in Equity
Year Ended 31 December 2023
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 January 2023 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 December 2023 |
|
|
|
|
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 January 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 31 December 2022 |
705,000 |
340,271 |
649,648 |
1,694,919 |
Infinite Future Holdings Limited
Consolidated Statement of Cash Flows
Year Ended 31 December 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
422,181 |
1,110,062 |
|
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 |
|||
Decrease in stocks |
|
|
|
Decrease/(increase) in trade debtors |
|
( |
|
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 |
( |
( |
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 January |
|
|
|
Cash and cash equivalents at 31 December |
1,125,511 |
1,119,733 |
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
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'.
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 preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 December 2023.
As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Going concern
In preparing these financial statements the directors have adopted the going concern basis of preparation. The directors are satisfied that the group will have sufficient cash reserves and facilities available in order to meet its liabilities as they fall due for the foreseeable future being a period of no less than 12 months from the date of approval of these financial statements. In making their going concern assessment the directors have considered the following key matters:
The results for the year ended 31 December 2023 which demonstrated a further year of profitable and cash generative financial performance despite rising economic uncertainty and inflationary environment.
The financial year ending 31 December 2024 has been a challenging year for the construction sector as a whole with the effects of high interest rates and political, and in turn economic, uncertainty impacting many of the key markets in which the company operates. These challenges saw a material decrease in the revenues and profits of the company during 2024.
Management have prepared financial projections to 31 December 2025 based not only upon 2024 and historic financial performance but also on the pipeline of customer project orders which remained strong throughout 2024 and, whilst management acknowledge there can be no certainty, confirmed and expected orders are anticipated to see revenues return to 2023 levels at least, over the course of 2025 with profitability and cash generation also returning to historic levels.
The availability of a precautionary overdraft facility has been agreed with the group’s bankers subsequent to the year end and the requirement for this facility will be reviewed as appropriate during 2025 .
Based upon these factors and having made all necessary enquiries the directors are satisfied that the going concern basis of preparation remains appropriate.
Related party exemption
The company has take advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', to not disclose related party transactions with wholly owned subsidiaries within the group.
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experiences and other factors that are considered to be relevant. Actual results may differ from these estimates.
An estimate or judgement may be considered critical if it involves matters that are highly uncertain or where different estimation methods could reasonably have been used, or if changes in the estimate that would have a material impact on the company's results are likely to occur from period to period. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
The key sources of estimation uncertainty are considered to be:
• Whether there are indicators of impairment of the group’s intangible assets, including goodwill. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. The carrying value of intangible assets is £187k (2022: £232k).
• Whether there are indicators of impairment of the group’s tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset. The carrying value of tangible fixed assets is £384k (2023: £292k).
• Whether a provision for impairment of trade debtors is required. A provision for impairment of trade debtors is established when there is evidence that the group will not be able to collect all amounts due according to the original terms. The group considers factors such as default or delinquency in payment, significant financial difficulties of the debtor and the probability that the debtor will enter bankruptcy in deciding whether the trade debtor is impaired. The carrying value of trade debtors is £1,438k (2022: £2,218k).
Property that is held for long-term rental yields or for capital appreciation, or both, and that is not occupied by the group, is classified as investment property. Investment property is measured initially at its cost, including related transaction costs. After initial recognition, investment property is carried at fair value. Fair value is based on active market prices, adjusted, if necessary, for any difference in the nature, location or condition of the specified asset. If this information is not available, the group uses alternative valuation methods such as recent prices on less active markets or discounted cash flow projections.
Subsequent expenditure is included in the carrying amount of the property when it is probable that the future economic benefits associated with the item will flow to the group and the cost of the item can be measured reliably. All other repair and maintenance costs are charged to the Profit and Loss during the financial period in which they are incurred. Gains or losses arising from changes in the fair value of the group's investment properties are included in the Profit and Loss Account in the period in which they arise.
Long term contracts
Where the company enters into long term contracts, revenue is recognised on the percentage of completion basis. Under the percentage of completion method, the company makes an estimate of the percentage to complete for a project and recognises the proportion of revenue and profit accordingly, this results in accrued costs and/or income in the Balance Sheet. In forecasting the profitability of contracts, management makes best estimates of the impact of customer disputes and claims brought by contractors. Any expected losses on long term contracts are recognised immediately and are written off to the statement of comprehensive income.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Contract revenue recognition
Revenue for contract is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of expenses recognised that are recoverable.
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 corporation 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 group operates and generates taxable income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Tangible assets
Tangible fixed assets under the cost model are stated at historic costs less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly atributable to bringing the assets to the location and condition necessary for it to be capable of operating in the manner intended by management.
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.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures and fittings |
20% on cost |
Computer equipment |
20% on cost |
Motor vehicles |
20% on cost |
Investment property
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
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.
Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
An impairment loss has been recognised in the Statement of Comprehensive Income, following an assessment at the Balance Sheet date indicating the recoverable amount was less than its carrying value.
Development costs are being amortised evenly over their estimated useful life of 5-10 years.
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Intangible assets acquired on business combinations are recognise separately from goowill at the acquisition date if the fair value can be measured reliably.
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over its estimated useful lives.
Investments
Investments in subsidiaries are measured at cost less accumulated impairment.
All other fixed asset investments are assessed annually by Directors to determine any risk of recoverability. Where a risk is identified an appropriate level of impairment is provided.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress 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. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
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.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Sale of goods |
|
|
Other revenue |
|
|
|
|
The analysis of the group's Turnover for the year by market is as follows:
2023 |
2022 |
|
UK |
|
|
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2023 |
2022 |
|
Miscellaneous other operating income |
- |
|
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Research and development cost |
|
- |
Operating lease expense - plant and machinery |
|
|
Loss on disposal of property, plant and equipment |
|
- |
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Production |
|
|
Administration and support |
|
|
Other departments |
|
|
|
|
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Auditor's remuneration |
2023 |
2022 |
|
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
13,520 |
14,031 |
Other fees to auditors |
||
All other assurance services |
|
- |
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2023 |
2022 |
|
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 higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Increase/(decrease) in UK and foreign current tax from adjustment for prior periods |
|
( |
Tax increase from effect of capital allowances and depreciation |
|
- |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Deferred tax (credit)/expense relating to changes in tax rates or laws |
( |
|
Total tax charge |
|
|
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Fixed asset timing differences |
- |
|
Captial gains |
- |
|
- |
|
2022 |
Asset |
Liability |
Fixed asset timing differences |
- |
|
Pensions |
|
- |
Captial gains |
- |
|
|
|
Company
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Fixed asset timing differences |
- |
|
Capital gains |
- |
|
- |
|
2022 |
Asset |
Liability |
Fixed asset timing differences |
- |
|
Capital gains |
- |
|
- |
|
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Intangible assets |
Group
Internally generated software development costs |
Total |
|
Cost or valuation |
||
At 1 January 2023 |
|
|
At 31 December 2023 |
|
|
Amortisation |
||
At 1 January 2023 |
|
|
Amortisation charge |
|
|
At 31 December 2023 |
|
|
Carrying amount |
||
At 31 December 2023 |
|
|
At 31 December 2022 |
|
|
The aggregate amount of research and development expenditure recognised as an expense during the period is £
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Tangible assets |
Group
Furniture, fittings and equipment |
Motor vehicles |
Plant and machinery |
Total |
|
Cost or valuation |
||||
At 1 January 2023 |
|
|
|
|
Additions |
|
|
|
|
Disposals |
( |
( |
- |
( |
At 31 December 2023 |
|
|
|
|
Depreciation |
||||
At 1 January 2023 |
|
|
|
|
Charge for the year |
|
|
|
|
Eliminated on disposal |
( |
( |
- |
( |
At 31 December 2023 |
|
|
|
|
Carrying amount |
||||
At 31 December 2023 |
|
|
|
|
At 31 December 2022 |
|
|
|
|
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Company
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
||
At 1 January 2023 |
|
|
Disposals |
( |
( |
At 31 December 2023 |
|
|
Depreciation |
||
At 1 January 2023 |
|
|
Charge for the year |
|
|
Eliminated on disposal |
( |
( |
At 31 December 2023 |
|
|
Carrying amount |
||
At 31 December 2023 |
|
|
At 31 December 2022 |
|
|
Investment properties |
Group
2023 |
|
At 1 January |
|
At 31 December |
|
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Company
2023 |
|
At 1 January |
|
At 31 December |
|
The investment property was valued in February 2023 by an external valuer Robert Parr-Head of Savills (UK) Limited.
The valuation was prepared on the basis of market value as defined in the Royal Institution of Chartered Surveyors Valuation
The directors consider the vlauation at this date does not materially differ to the year end value.
Investments |
Group
2023 |
|
Fixed asset investments |
30,167 |
Fixed Asset Investments
|
|
Cost or valuation |
|
Additions |
30,167 |
Carrying amount
|
30,167 |
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Fixed Asset investments |
30,167 |
- |
|
|
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Subsidiaries |
£ |
Cost or valuation |
|
At 1 January 2023 |
|
Carrying amount |
|
At 31 December 2023 |
|
At 31 December 2022 |
|
Fixed asset investments
£ |
|
Cost or valuation |
|
Additions |
30,167 |
Carrying amount
|
30,167 |
Details of undertakings
Details of the investments 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 |
||||
|
3 Portview Road, Bristol England, BS11 9QL |
|
|
|
Subsidiary undertakings |
Stancold Plc The principal activity of Stancold Plc is |
Stocks |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Work in progress |
|
|
- |
- |
Finished goods and goods for resale |
|
|
- |
- |
|
|
- |
- |
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Debtors |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Trade debtors |
|
|
|
|
Other debtors |
|
|
|
|
Prepayments |
|
|
- |
- |
Amounts Recoverable on Contracts |
|
|
- |
- |
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Cash at bank |
|
|
|
|
Bank overdrafts |
- |
( |
- |
- |
Cash and cash equivalents in statement of cash flows |
1,125,511 |
1,119,733 |
22,162 |
25,543 |
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
|
|
|
Amounts due to group undertakings |
|
- |
|
|
|
Social security and other taxes |
|
|
|
|
|
Other creditors |
|
|
|
|
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Loans and borrowings |
Non-current loans and borrowings
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Hire purchase contracts |
|
|
- |
- |
Current loans and borrowings
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Bank overdrafts |
- |
|
- |
- |
Hire purchase contracts |
|
|
|
|
|
|
|
|
Analysis of changes in net debt |
Group
At 1 January 2023 |
Cash flows |
Other non-cash changes |
At 31 December 2023 |
|
Cash and cash equivalents |
||||
Cash |
1,119,734 |
5,778 |
- |
1,125,512 |
Overdrafts |
(1) |
1 |
- |
- |
1,119,733 |
5,779 |
- |
1,125,512 |
|
Borrowings |
||||
Lease liabilities |
(92,664) |
45,526 |
(110,602) |
(157,740) |
|
||||
|
|
( |
|
Other non-cash changes represent interest expense and new finance leases within the year.
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Provisions for liabilities |
Group
Deferred tax |
Total |
|
At 1 January 2023 |
|
|
Charge to the Income Statement during the year |
( |
( |
At 31 December 2023 |
|
|
|
Company
Deferred tax |
Total |
|
At 1 January 2023 |
|
|
Charge to the Income Statement during the year |
( |
( |
At 31 December 2023 |
|
|
|
Pension schemes |
The group operates a defined contribution pension scheme. The pension cost chare for the year represents contributions payable by the group tp the scheme and amounted to £60,354 (2022 - £55,831).
Contributions totalling £Nil (2022 - £8.017) were payable to the scheme at the end of the year and are included in creditors.
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
Ordinary A shares of £1 each |
50,000 |
50,000 |
50,000 |
50,000 |
Ordinary B shares of £1 each |
5,000 |
5,000 |
5,000 |
5,000 |
Redeemable Preference shares of £1 each |
650,000 |
650,000 |
650,000 |
650,000 |
|
|
|
|
Infinite Future Holdings Limited
Notes to the Financial Statements
Year Ended 31 December 2023
Dividends |
2023 |
2022 |
|||
£ |
£ |
|||
Interim dividend of £ |
660,345 |
129,496 |
||
Parent and ultimate parent undertaking |
The company's ultimate controlling party is Kevin Gillham, who owns more than 50% but less than 75% of the ultimate parent company.
Related party transactions |
Group
Summary of transactions with subsidiaries