Company registration number 07497261 (England and Wales)
INTELLIGENT SERVERS LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
INTELLIGENT SERVERS LIMITED
COMPANY INFORMATION
Directors
Mr Andrew Hughes
Mr Ryan McCarry
Company number
07497261
Registered office
Unit B3a
Crimple Court
Hornbeam Square North
Harrogate
HG2 8PB
Auditor
Parsons Accountants Ltd
Unit 2 Silkwood Park
Fryers Way
Ossett
WF5 9TJ
INTELLIGENT SERVERS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13 - 14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Company statement of cash flows
18
Notes to the financial statements
19 - 36
INTELLIGENT SERVERS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024 for Intelligent Servers Limited ("the parent Company") and its subsidiary Intelligent Servers B.V (together "the Group").

Review of the business

The Financial Year ending 31 March 2024 has been a year of strategic consolidation and preparation for future growth. While adverse market conditions presented challenges at the outset, the Group has demonstrated resilience and adaptability in navigating these obstacles.

 

Early in the financial year, the global market downturn significantly impacted overall year-on-year performance. In response, the Management Team shifted focus towards strengthening the Group’s foundations rather than expending resources on a struggling market. This strategy has laid a robust groundwork for long-term success.

 

Key initiatives during the year included an overhaul of the Customer Relationship Management journey, a comprehensive renovation of the Warehouse, the establishment of an office presence in Europe, and the restructuring of several internal functions. These measures have enhanced our operational efficiency and scalability, ensuring the Group is well-positioned for growth.

 

The success of these efforts is evident in the increased engagement from prominent high-street brands that have chosen to partner with the Group, often favouring us over larger and more established competitors. Additionally, demand has risen for large-scale projects, including multi-million pound data warehouses and data science solutions. The positive feedback and repeat business from these customers further validate our strategy and provide a strong foundation for future expansion.

 

As the financial year progressed, market conditions began to stabilise, creating opportunities for improved performance. This led to the achievement of growth in the main financial key performance indicator, consolidated turnover, which increased by £326,524 or 2.7% to £12,150,080. This resulted in profitability which caused an increase in consolidated equity by £304,029 or 15.6% to £2,256,902. With our stronger foundations and renewed focus, the Group is poised to capitalise on these favourable conditions in the new financial year. Looking ahead, we remain optimistic about the opportunities before us and are committed to controlled growth while delivering sustained value to stakeholders.

 

Additionally, the Group began preparations to expanded its portfolio through the acquisition of Intelligence Hosting Solutions in November 2024, a valuable addition to our growing family of companies. This acquisition will diversify our service offerings and reinforce our strategic objectives as we continue to broaden our reach and capabilities.

Principal risks and uncertainties

The Group operates in a dynamic environment, and the Board remains vigilant in identifying and mitigating potential risks and uncertainties that could impact our business.

INTELLIGENT SERVERS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

Market Volatility: The global market downturn at the start of the financial year underscored the importance of adaptability. While market conditions have since stabilised, potential economic and geopolitical uncertainties remain a key risk. The Group continues to monitor these factors closely and maintains a flexible approach to resource allocation.

 

Operational Challenges: Supply chain disruptions and cost pressures pose ongoing risks, particularly in light of increased demand for large-scale projects. The Group’s focus on building strong relationships with suppliers and maintaining operational efficiency has helped mitigate these risks.

 

Competition: The Group faces competition from larger, more established players in the industry. However, our emphasis on customer satisfaction, innovative solutions, and strategic investments in infrastructure and human resources provide a competitive edge.

 

Acquisition Integration: The acquisition of Intelligence Hosting Solutions presents an opportunity for growth but also carries the inherent risks of integration and alignment with the Group’s objectives. Comprehensive planning and dedicated resources have been allocated to ensure a seamless transition.

 

The Board is confident that the Group’s prudent approach to risk management, combined with its robust financial position and strategic initiatives, will enable it to navigate these challenges effectively. By maintaining a disciplined approach to investment and leveraging market opportunities, the Group is well-prepared to achieve its objectives.

 

Key performance indicators

                                     2024     2023

                                         £         £

Group Turnover                                12,150,080    11,823,556

Group Gross profit                             3,340,773     3,150,765

Group Gross margin                             27.5%     26.6%

Group Profit before tax                             427,744     627,086

Group Total equity                             2,256,902     1,952,873

 

 

The Group monitors a large number of non-financial Key Performance indicators to assess the ongoing performance and health of the Group as a whole. This allows the Group to identify risks often before they materialise ensuring a culture of flexibility and adaptability is maintained. It is not deemed appropriate to disclose these non-financial Key Performance indicators due to their commercially sensitive nature.

On behalf of the board

Mr Andrew Hughes
Director
4 March 2025
INTELLIGENT SERVERS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the Group and parent Company continued to be that of commercial and domestic computer hardware resellers.

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £6,080 (2023: £473,752). The Directors do not recommend a payment of a final dividend.

Directors

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

Mr Andrew Hughes
Mr Ryan McCarry
Post reporting date events

On 1 November 2024 the Company acquired 100% of the share capital (being 70 A ordinary shares and 30 B ordinary shares) of Intelligence Hosting Services Ltd.

 

There have been no other significant events effecting the Company since the year-end.

Future developments

The Group remains focused on strengthening its core foundations with a view to positioning itself for future growth. This commenced shortly after the Year End with the acquisition of Intelligence Hosting Solutions to complement the Groups service offering. The Board has many more projects in the pipeline which will all shape the future aspiration of the Group in one way or another, positioning it well for continued and sustained growth.

Statement of directors' responsibilities

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

 

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

 

 

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

INTELLIGENT SERVERS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Statement of disclosure to auditor

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

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Medium-sized companies exemption

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

On behalf of the board
Mr Andrew Hughes
Director
4 March 2025
INTELLIGENT SERVERS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INTELLIGENT SERVERS LIMITED
- 5 -

Qualified opinion

We have audited the financial statements of Intelligent Servers Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

Basis for qualified opinion

We were not appointed as the auditor of the group and parent company until after 31 March 2023 and thus did not observe the counting of physical inventories at the end of that year. We were unable to satisfy ourselves by alternative means as to the quantities and condition of inventory at 31 March 2023. Consequently, we were unable to determine whether any adjustment to the stock value at 31 March 2023 was necessary or whether there was any consequential effect on the cost of sales for the year-ended 31 March 2024.

 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Key audit matters

Except for the matter described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

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

INTELLIGENT SERVERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTELLIGENT SERVERS LIMITED
- 6 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

 

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

As described in the basis for qualified opinion section of our audit report, we were unable to satisfy ourselves concerning the quantities of inventory at 31 March 2023. We have concluded that where the other information refers to that inventory balance, related balances such as turnover; cost of sales or related metrics such as gross profit percentage, it may be materially misstated for the same reason.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of the knowledge and understanding of the group and its environment obtained in the course of the audit, we have not identified material misstatements in the directors’ report or the strategic report.

 

Arising solely from the limitation on the scope of our work relating to inventory, referred to above:

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

 

In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

INTELLIGENT SERVERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTELLIGENT SERVERS LIMITED
- 7 -
Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

 

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

INTELLIGENT SERVERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTELLIGENT SERVERS LIMITED
- 8 -

The extent to which our procedures are capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

We assessed the susceptibility of the group and parent company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

INTELLIGENT SERVERS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INTELLIGENT SERVERS LIMITED
- 9 -

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters

We were not appointed as auditor for the year ended 31 March 2023. The year ended 31 March 2024 is the first period subject to audit and consequently, the comparatives are unaudited.

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.

Richard Walker (Senior Statutory Auditor)
For and on behalf of Parsons Accountants Ltd, Statutory Auditor
Chartered Accountants
Unit 2 Silkwood Park
Fryers Way
Ossett
WF5 9TJ
5 March 2025
INTELLIGENT SERVERS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
Unaudited 2023
Notes
£
£
Turnover
3
12,150,080
11,823,556
Cost of sales
(8,809,307)
(8,672,791)
Gross profit
3,340,773
3,150,765
Administrative expenses
(2,904,766)
(2,504,876)
Other operating income
17,386
-
Operating profit
4
453,393
645,889
Interest receivable and similar income
8
5,655
753
Interest payable and similar expenses
9
(31,304)
(19,556)
Profit before taxation
427,744
627,086
Tax on profit
10
(117,635)
(180,381)
Profit for the financial year
24
310,109
446,705
Profit for the financial year is all attributable to the owners of the parent company.
INTELLIGENT SERVERS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
Unaudited 2023
£
£
Profit for the year
310,109
446,705
Other comprehensive income
Write off of connected company loan
-
0
(5,023)
Total comprehensive income for the year
310,109
441,682
Total comprehensive income for the year is all attributable to the owners of the parent company.
INTELLIGENT SERVERS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 12 -
2024
Unaudited 2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
12
32,284
13,591
Tangible assets
13
119,613
120,193
151,897
133,784
Current assets
Stocks
16
2,158,007
1,972,477
Debtors
17
1,331,679
1,010,842
Cash at bank and in hand
388,173
361,302
3,877,859
3,344,621
Creditors: amounts falling due within one year
18
(1,742,951)
(1,181,556)
Net current assets
2,134,908
2,163,065
Total assets less current liabilities
2,286,805
2,296,849
Creditors: amounts falling due after more than one year
19
-
(313,928)
Provisions for liabilities
Deferred tax liability
21
29,903
30,048
(29,903)
(30,048)
Net assets
2,256,902
1,952,873
Capital and reserves
Called up share capital
23
200
200
Share premium account
24
32,990
32,990
Profit and loss reserves
24
2,223,712
1,919,683
Total equity
2,256,902
1,952,873

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

The financial statements were approved by the board of directors and authorised for issue on 4 March 2025 and are signed on its behalf by:
04 March 2025
Mr Andrew Hughes
Director
Company registration number 07497261 (England and Wales)
INTELLIGENT SERVERS LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 13 -
2024
Unaudited 2023
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
12
32,284
13,591
Tangible assets
13
119,613
120,193
Investments
14
86
100
151,983
133,884
Current assets
Stocks
16
2,158,007
1,972,477
Debtors
17
1,390,643
1,029,985
Cash at bank and in hand
350,687
361,302
3,899,337
3,363,764
Creditors: amounts falling due within one year
18
(1,721,760)
(1,174,599)
Net current assets
2,177,577
2,189,165
Total assets less current liabilities
2,329,560
2,323,049
Creditors: amounts falling due after more than one year
19
-
(313,928)
Provisions for liabilities
Deferred tax liability
21
29,903
30,048
(29,903)
(30,048)
Net assets
2,299,657
1,979,073
Capital and reserves
Called up share capital
23
200
200
Share premium account
24
32,990
32,990
Profit and loss reserves
24
2,266,467
1,945,883
Total equity
2,299,657
1,979,073

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and

related notes. The company’s profit for the year was £326,664 (Unaudited and as restated 2023 - £472,905 profit).

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

INTELLIGENT SERVERS LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MARCH 2024
31 March 2024
- 14 -
The financial statements were approved by the board of directors and authorised for issue on 4 March 2025 and are signed on its behalf by:
04 March 2025
Mr Andrew Hughes
Director
Company registration number 07497261 (England and Wales)
INTELLIGENT SERVERS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022 (unaudited)
200
32,990
1,951,753
1,984,943
Year ended 31 March 2023:
Profit and total comprehensive income
-
-
446,705
446,705
Dividends
11
-
-
(473,752)
(473,752)
Other movements
-
-
(5,023)
(5,023)
Balance at 31 March 2023
200
32,990
1,919,683
1,952,873
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
310,109
310,109
Dividends
11
-
-
(6,080)
(6,080)
Balance at 31 March 2024
200
32,990
2,223,712
2,256,902
INTELLIGENT SERVERS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022 (unaudited and as restated)
200
32,990
1,951,753
1,984,943
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
472,905
472,905
Dividends
11
-
-
(473,752)
(473,752)
Other movements
-
-
(5,023)
(5,023)
Balance at 31 March 2023
200
32,990
1,945,883
1,979,073
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
326,664
326,664
Dividends
11
-
-
(6,080)
(6,080)
Balance at 31 March 2024
200
32,990
2,266,467
2,299,657
INTELLIGENT SERVERS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
2024
Unaudited 2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
494,777
351,921
Income taxes paid
(137,135)
(146,345)
Net cash inflow from operating activities
357,642
205,576
Investing activities
Purchase of intangible assets
(26,490)
(7,698)
Purchase of tangible fixed assets
(51,477)
(45,986)
Interest received
5,655
753
Net cash used in investing activities
(72,312)
(52,931)
Financing activities
Repayment of bank loans
(115,900)
(124,180)
Interest paid
(18,644)
(19,556)
Dividends paid to equity shareholders
(6,080)
(473,752)
Net cash used in financing activities
(140,624)
(617,488)
Net increase/(decrease) in cash and cash equivalents
144,706
(464,843)
Cash and cash equivalents at beginning of year
243,019
707,862
Cash and cash equivalents at end of year
387,725
243,019
Relating to:
Cash at bank and in hand
388,173
361,302
Invoice discounting facility included in creditors payable within one year
(448)
(118,283)
Cash and cash equivalents at end of year
387,725
243,019
INTELLIGENT SERVERS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
2024
Unaudited 2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
457,615
352,019
Income taxes paid
(137,135)
(146,345)
Net cash inflow from operating activities
320,480
205,674
Investing activities
Purchase of intangible assets
(26,490)
(7,698)
Purchase of tangible fixed assets
(51,477)
(45,986)
Purchase of subsidiaries
-
0
(100)
Interest received
5,331
753
Net cash used in investing activities
(72,636)
(53,031)
Financing activities
Repayment of bank loans
(115,900)
(124,180)
Interest paid
(18,644)
(19,556)
Dividends paid to equity shareholders
(6,080)
(473,752)
Net cash used in financing activities
(140,624)
(617,488)
Net increase/(decrease) in cash and cash equivalents
107,220
(464,845)
Cash and cash equivalents at beginning of year
243,019
707,864
Cash and cash equivalents at end of year
350,239
243,019
Relating to:
Cash at bank and in hand
350,687
361,302
Invoice discounting facility included in creditors payable within one year
(448)
(118,283)
Cash and cash equivalents at end of year
350,239
243,019
INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
1
Accounting policies
Company information

Intelligent Servers Limited (“the parent company”) is a private company limited by shares, domiciled and incorporated in England and Wales. The registered office is Unit B3a, Crimple Court, Hornbeam Square North, Harrogate, HG2 8PB.

 

The group consists of Intelligent Servers Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

1.2
Business combinations

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

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Intelligent Servers Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

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

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

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

INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

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

Website
33% Straight line
1.7
Tangible fixed assets

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

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

Fixtures and fittings
20% Straight line
Computers
33% Straight line

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

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

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

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

1.9
Impairment of fixed assets

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

 

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

INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -

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

 

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

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

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and when applicable logistics costs incurred in bringing the stock to their present location and condition.

 

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

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

1.11
Cash and cash equivalents

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

1.12
Financial instruments

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

 

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

 

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

Basic financial assets

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

INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

1.13
Equity instruments

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

1.14
Taxation

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

Current tax

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

Deferred tax

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

 

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

INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 23 -
1.15
Employee benefits

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

 

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

 

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

1.16
Retirement benefits

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

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

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

 

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

Critical judgements

The judgements and estimates with the most significant effect on amounts recognised in the financial statements are discussed below.

Determining the value of the stock provision

Inventories are valued at the lower cost and net realisable value. Net realisable value includes, where necessary, provisions for slow moving and obsolete stocks. Calculation of these provisions requires judgements to be made, which include forecast consumer demand, the promotional, competitive and economic environment and inventory loss trends. Management also consider the ability to sell stock through alternative sales channels.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Recoverability of intercompany debtors in the parent company and recoverability of connected party debt in the group

In assessing the recoverability of intercompany debtors in the parent company and recoverability of connected party debt in the Group the Directors have considered both external and internal sources of information such as market conditions, counter party credit ratings and experience of recoverability.

There have been no indicators of impairment to the recoverability identified during the current financial period.

INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
3
Turnover and other revenue
2024
Unaudited 2023
£
£
Turnover analysed by class of business
Sales of goods
12,150,080
11,823,556
2024
Unaudited 2023
£
£
Turnover analysed by geographical market
UK
6,446,796
6,273,543
Europe
3,260,188
3,172,573
USA
428,911
417,384
Rest of World
2,014,185
1,960,056
12,150,080
11,823,556
2024
Unaudited 2023
£
£
Other revenue
Interest income
5,655
753
4
Operating profit
2024
Unaudited 2023
£
£
Operating profit for the year is stated after charging:
Exchange losses
19,048
19,390
Depreciation of owned tangible fixed assets
52,057
64,245
Amortisation of intangible assets
7,797
7,535
Operating lease charges
103,138
88,898
5
Auditor's remuneration
2024
Unaudited 2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
12,335
-
INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Auditor's remuneration
(Continued)
- 25 -
For other services
Taxation compliance services
1,215
-
Accounts preperation services
2,150
-
All other non-audit services
300
-
3,665
-
6
Employees

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

Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
Number
Number
Number
Number
Sales
13
12
13
12
Warehouse
22
21
22
21
Administrative
21
20
21
20
Total
56
53
56
53

Their aggregate remuneration comprised:

Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
£
£
£
£
Wages and salaries
2,357,474
1,885,938
2,357,474
1,885,938
Social security costs
247,996
195,098
247,996
195,098
Pension costs
28,855
21,309
28,855
21,309
2,634,325
2,102,345
2,634,325
2,102,345
7
Directors' remuneration
2024
Unaudited 2023
£
£
Remuneration for qualifying services
133,921
9,720

Directors accrued benefits under money purchase pension schemes in the year of £791 (2023: £nil)

INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
8
Interest receivable and similar income
2024
Unaudited 2023
£
£
Interest income
Interest on bank deposits
324
753
Other interest income
5,331
-
Total income
5,655
753
2024
Unaudited 2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
324
753
9
Interest payable and similar expenses
2024
Unaudited 2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
31,304
19,556
10
Taxation
2024
Unaudited 2023
£
£
Current tax
UK corporation tax on profits for the current period
117,780
163,322
Deferred tax
Origination and reversal of timing differences
(145)
17,059
Total tax charge
117,635
180,381
INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 27 -

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

2024
Unaudited 2023
£
£
Profit before taxation
427,744
627,086
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (Unaudited 2023: 19.00%)
106,936
119,146
Tax effect of expenses that are not deductible in determining taxable profit
6,560
22,610
Effect of change in corporation tax rate
-
7,212
Effect of overseas tax rates
4,139
4,978
Deferred tax adjustments in respect of prior years
-
0
(1,547)
Other differences
-
27,982
Taxation charge
117,635
180,381

The tax assessed in the year is higher than (2023: higher than) the standard rate of corporation tax in the United Kingdom in each year.

 

From 1 April 2023 the rate of corporation tax in the United Kingdom increased from 19% to 25%. Companies with profits of £50,000 or less will be taxed at 19%, the new small profits rate. Where taxable profits are between £50,000 and £250,000, the higher 25% rate will apply but with a marginal relief applying as profits increase.

11
Dividends
2024
Unaudited 2023
Recognised as distributions to equity holders:
£
£
Interim paid
6,080
473,752
INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
12
Intangible fixed assets
Group and Company
Website
£
Cost
At 1 April 2023
28,564
Additions
26,490
At 31 March 2024
55,054
Amortisation and impairment
At 1 April 2023
14,973
Amortisation charged for the year
7,797
At 31 March 2024
22,770
Carrying amount
At 31 March 2024
32,284
At 31 March 2023
13,591
13
Tangible fixed assets
Group and Company
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 April 2023
262,708
28,024
290,732
Additions
46,353
5,124
51,477
At 31 March 2024
309,061
33,148
342,209
Depreciation and impairment
At 1 April 2023
148,386
22,153
170,539
Depreciation charged in the year
46,463
5,594
52,057
At 31 March 2024
194,849
27,747
222,596
Carrying amount
At 31 March 2024
114,212
5,401
119,613
At 31 March 2023
114,322
5,871
120,193
INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
14
Fixed asset investments
Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
86
100
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
100
Valuation changes
(14)
At 31 March 2024
86
Carrying amount
At 31 March 2024
86
At 31 March 2023
100
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Intelligent Servers B.V.
Netherlands
Ordinary
100.00

The principal activity of Intelligent Servers B.V continued to be that of commercial and domestic computer hardware resellers.

16
Stocks
Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
as restated
£
£
£
£
Finished goods and goods for resale
2,158,007
1,972,477
2,158,007
1,972,477
INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
17
Debtors
Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
as restated
Amounts falling due within one year:
£
£
£
£
Trade debtors
807,916
642,718
724,360
642,718
Amounts owed by group undertakings
-
-
145,126
24,127
Other debtors
403,886
276,049
403,843
276,011
Prepayments and accrued income
119,877
92,075
117,314
87,129
1,331,679
1,010,842
1,390,643
1,029,985
18
Creditors: amounts falling due within one year
Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
as restated
Notes
£
£
£
£
Bank loans and overdrafts
20
327,036
246,843
327,036
246,843
Trade creditors
569,392
275,720
551,845
263,752
Corporation tax payable
111,467
130,822
111,467
130,822
Other taxation and social security
133,045
110,670
130,000
116,371
Other creditors
121,839
255,471
121,839
254,781
Accruals and deferred income
480,172
162,030
479,573
162,030
1,742,951
1,181,556
1,721,760
1,174,599
19
Creditors: amounts falling due after more than one year
Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
Notes
£
£
£
£
Bank loans and overdrafts
20
-
0
313,928
-
0
313,928
INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
20
Loans and overdrafts
Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
£
£
£
£
Bank loans
326,588
442,488
326,588
442,488
Invoice discounting
448
118,283
448
118,283
327,036
560,771
327,036
560,771
Payable within one year
327,036
246,843
327,036
246,843
Payable after one year
-
0
313,928
-
0
313,928

The CBILS bank loan is secured by the way of a charge dated 15 June 2021 with the counterparty NPIF TVC Debt LP. This charge contains (i) by way of legal mortgage are the freehold and leasehold property with all buildings, trade and other fixtures and fittings and fixed plant and machinery, (ii) by way of legal charges over other freehold and leasehold property, all plant and machinery, computers, stocks, shares and other securities, all present and future book debts and goodwill and (iii) by way of floating charge on all other assets.

Additionally their exists a personal guarantee to the same counterparty.

 

The Company is a party to a charge dated 20 June 2019 with Skipton Business Finance Limited. The charge contains fixed charges, floating charges covering all the property and undertakings of the company and a negative pledge.

21
Deferred taxation

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

Liabilities
Liabilities
2024
Unaudited 2023
Group
£
£
Fixed asset timing differences
29,903
30,048
Liabilities
Liabilities
2024
Unaudited 2023
Company
£
£
Fixed asset timing differences
29,903
30,048
INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Deferred taxation
(Continued)
- 32 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
30,048
30,048
Credit to profit or loss
(145)
(145)
Liability at 31 March 2024
29,903
29,903

The fixed asset timing differences are expected to reverse over the useful lives of the assets to which they relate.

22
Retirement benefit schemes
2024
Unaudited 2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
28,855
21,309

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

 

At the reporting date the Group owed amounts totalling £6,767 (2023: £4,965) in relation to the defined contribution pension scheme.

23
Share capital
Group and company
2024
Unaudited 2023
2024
Unaudited 2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary of 10p each
1,900
1,900
190
190
B Ordinary of 10p each
100
100
10
10
2,000
2,000
200
200

The B Ordinary shares rank pari passu with the A Ordinary shares but without voting rights at general meetings and with dividends declarable at the discretion of the board, and disapply the statutory pre-emption rights under section 561 of the companies act 2006 in relation to the proposed allotment of further shares.

INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 33 -
24
Reserves
Share premium

The share premium account reserve represents the amount shareholders paid for shares issued in excess of their nominal value.


Profit and loss reserves

 

This reserve represents cumulative profits and losses less cumulative dividends paid. The full reserve is available for immediate distribution.

25
Operating lease commitments

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

Group
Company
2024
Unaudited 2023
2024
Unaudited 2023
£
£
£
£
Within one year
104,626
103,138
104,626
103,138
Between two and five years
213,895
318,522
213,895
318,522
318,521
421,660
318,521
421,660
INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
26
Related party transactions

The company has taken advantage of the exemption permitted by section 33 'Related Party Disclosures' of Financial Reporting Standard 102 'The Financial Reporting Standard Applicable in the UK and Republic of Ireland' from the requirement to disclose transactions between wholly owned group companies on the grounds that the consolidated financial statements are prepared by the ultimate parent company.

 

During the year the company made purchases of £432 (2023: £nil) with an other related party. There are no amounts due at either year-end in respect of the transaction.

 

During the year the company made sales of £158,872 (2023: £166,587) to an entity with common directors and shareholders. At the end of the year the company was due £314,885 (2023: £240,128) in respect of these transactions and such amounts re included in other debtors.

 

The directors remuneration is disclosed in an earlier note.

 

During the year key management personnel (excluding the directors) were paid gross wages totalling £314,685 with the company incurring an additional £2,862 of pension contributions.

 

Amounts owed by other related parties totals £33,000 (2023: £33,000) and is included within other debtors.

27
Directors' transactions

Dividends totalling £5,056 (Unaudited 2023 - £473,752) were paid in the year in respect of shares held by the company's directors.

28
Controlling party

The company was under the control of Mr A Hughes by virtue of his shareholding.

29
Cash generated from group operations
2024
Unaudited 2023
£
£
Profit for the year after tax
310,109
446,705
Adjustments for:
Taxation charged
117,635
180,381
Finance costs
18,644
19,556
Investment income
(5,655)
(753)
Amortisation and impairment of intangible assets
7,797
7,535
Depreciation and impairment of tangible fixed assets
52,057
64,245
Movements in working capital:
Increase in stocks
(185,530)
(396,715)
Increase in debtors
(320,839)
(317,316)
Increase in creditors
500,559
348,283
Cash generated from operations
494,777
351,921
INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
30
Cash generated from operations - company
2024
Unaudited 2023
£
£
Profit for the year after tax
326,664
472,905
Adjustments for:
Taxation charged
117,635
180,381
Finance costs
18,644
19,556
Investment income
(5,331)
(753)
Amortisation and impairment of intangible assets
7,797
7,535
Depreciation and impairment of tangible fixed assets
52,057
64,245
Foreign exchange losses
14
-
Movements in working capital:
Increase in stocks
(185,530)
(396,715)
Increase in debtors
(360,658)
(336,461)
Increase in creditors
486,323
341,326
Cash generated from operations
457,615
352,019
31
Analysis of changes in net funds/(debt) - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
361,302
26,871
388,173
Invoice discounting facility
(118,283)
117,835
(448)
243,019
144,706
387,725
Borrowings excluding overdrafts
(442,488)
115,900
(326,588)
(199,469)
260,606
61,137
32
Analysis of changes in net funds/(debt) - company
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
361,302
(10,615)
350,687
Invoice discounting facility
(118,283)
117,835
(448)
243,019
107,220
350,239
Borrowings excluding overdrafts
(442,488)
115,900
(326,588)
(199,469)
223,120
23,651
INTELLIGENT SERVERS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 36 -
33
Prior period adjustment

Due to a historical issue in respect of the recognition of share premium on a share sale there has been an adjustment which increases both the share premium and the amounts owed by connected parties, as included in other debtors, by £32,670.

 

The effective date of this restatement is 27 July 2020 and so the matter restates both the prior year balance sheet and the prior year opening equity.

 

The trade debtors balance as originally reported in the prior year was being suppressed by the presence of customer payments in advance totalling £212,316. There has been a balance sheet reclassification of this balance, increasing trade debtors with a corresponding increase in other creditors to better reflect the substance of the transactions. This adjustment has no effect on the equity of the Company at 31 March 2023.

 

Stock has been restated to reflect impairment of stock at 31 March 2023. This has resulted in a decrease in stock and equity of £147,271 and an equal increase in cost of sales.

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