Company Registration No. 13446695 (England and Wales)
INVERSIO LTD
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
10 Bridge Street
Christchurch
Dorset
BH23 1EF
INVERSIO LTD
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Group statement of comprehensive income
11
Group balance sheet
12 - 13
Company balance sheet
14 - 15
Group statement of changes in equity
16
Company statement of changes in equity
17
Group statement of cash flows
18
Notes to the financial statements
19 - 40
INVERSIO LTD
COMPANY INFORMATION
- 1 -
Directors
Mr. A Freeman
Mrs. B Freeman
Mr. D R Freeman
Mrs. H Freeman
Mrs. J Freeman
Mrs. L Freeman
Mr. N A Freeman
Mrs. P Freeman
Mr. R J Freeman
Mr. R C Freeman
Company number
13446695
Registered office
Unit A, Quedgley West Business Park
Bristol Road
Hardwicke
Gloucester
United Kingdom
GL2 4PA
Auditor
TC Group
10 Bridge Street
Christchurch
Dorset
BH23 1EF
INVERSIO LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

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

Fair review of the business

The group designs and manufactures innovative and premium quality fluid systems, including water pressure booster sets, combined pump and tank systems, pressurisation units, electromagnetic water conditioners, packaged utility rooms and other prefabricated mechanical and electrical systems. It also is a national distributor of pumps and pump systems, supplying all brands and spare parts to the UK market. On 30 June 2023, the packaged utility room sector of the business was transferred out of Dutypoint Limited to a new group company, Resipoint Limited.

The group historically has succeeded in growing its turnover year on year by improved market penetration of its traditional markets, new innovative products and development of opportunities to supply products into different sectors. Dutypoint is constantly researching innovative initiatives to develop products and services that are efficient, user-friendly, energy efficient and reduce wastage and on-site time. As in previous years the company introduced a number of new products to the market in 2023, and continued to make ongoing improvements to existing ranges. This places the company in an advantageous position to capitalise on the investment in people and facilities to maintain growth levels at similar rates to previous years.

The group grew in the year both through organic growth and the acquisition of the Flowtech Water Solutions group of companies. Flowtech Water Solutions Limited is based in the North West of England, and strengthens the geographic position of the company, as well as bringing in a new brand to the group. Flowtech design and manufacture water pressure booster sets, combined pump and tank systems as well as pressurisation units, making it a perfect fit into the existing Elmbridge Pump Company group activities.

On 10 January 2025, Inversio Ltd disposed of it's shareholding in Elmbridge Pump Company Limited and consequently all it's subsidiary undertakings. Inversio Ltd will now seek out further investment opportunities

Principal risks and uncertainties

The business risks and uncertainties are similar to those borne by other businesses in the sectors we operate in and the directors do not believe that there are any risks peculiar to this business. It continues to be a time of economic uncertainty, with huge increases in costs and continued disruption in the supply chain caused by the impact of Brexit, high market demand following COVID 19, and many other factors. The company sources many of its products from major European manufacturers and as such the impact of a weaker currency has also had a negative effect on profitability. The impact of these risks and uncertainties have been carefully monitored and mitigated where possible with increased stockholding and benchmarking of product pricing.

Key performance indicators

The directors remain of the opinion that the business operates in a professional manner and closely monitor its performance using critical measures included within the monthly management accounts. Further to this, Key Performance Indicators are monitored on a daily, weekly and monthly basis by senior management and resulting actions are taken in an appropriate timescale and method. KPI’s used by directors include the following:

 

Turnover has increased from £43.1m in 2022 to £44.9m in 2023.

Gross profit has increased from 32% in 2022 to 38% in 2023.

Net profit has increased from 7% in 2022 to 11% in 2023.

Debtor days have increased from 65 days in 2022 to 66 days in 2023.

Current ratio has remained consistent across both years at 2.5:1.

INVERSIO LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

On behalf of the board

Mr. N A Freeman
Director
18 March 2025
INVERSIO LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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

Principal activities

The principal activity of the group continued to be that of the national distribution of pumps and the provision of expert technical advice. The principle activities of the company during the period were that of group management.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £939,850. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend 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. A Freeman
Mrs. B Freeman
Mr. D R Freeman
Mrs. H Freeman
Mrs. J Freeman
Mrs. L Freeman
Mr. M Freeman
(Resigned 8 May 2024)
Mr. N A Freeman
Mrs. P Freeman
Mr. R J Freeman
Mr. R C Freeman
Auditor

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

INVERSIO LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
On behalf of the board
Mr. N A Freeman
Director
18 March 2025
INVERSIO LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -

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.

INVERSIO LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF INVERSIO LTD
- 7 -
Opinion

We have audited the financial statements of Inversio Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 the financial statements:

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

INVERSIO LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVERSIO LTD
- 8 -

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

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

INVERSIO LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVERSIO LTD
- 9 -
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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

INVERSIO LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF INVERSIO LTD
- 10 -

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Dean Pullen FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
19 March 2025
Office: Christchurch
INVERSIO LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Year
Period
ended
ended
31 December
31 December
2023
2022
Notes
£
£
Turnover
3
44,939,773
43,188,531
Cost of sales
(28,072,123)
(29,297,868)
Gross profit
16,867,650
13,890,663
Administrative expenses
(10,587,477)
(10,000,627)
Other operating income
55,355
7,272
Operating profit
4
6,335,528
3,897,308
Interest receivable and similar income
38,576
(1,402)
Interest payable and similar expenses
8
(5,979)
(88,723)
Profit before taxation
6,368,125
3,807,183
Tax on profit
9
(1,473,199)
(606,270)
Profit for the financial year
23
4,894,926
3,200,913
Profit for the financial year is attributable to:
- Owners of the parent company
2,388,822
1,234,125
- Non-controlling interests
2,506,104
1,966,788
4,894,926
3,200,913
Total comprehensive income for the year is attributable to:
- Owners of the parent company
2,388,822
1,234,125
- Non-controlling interests
2,506,104
1,966,788
4,894,926
3,200,913
INVERSIO LTD
GROUP BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
11
10,697,016
8,576,964
Other intangible assets
11
363,170
344,800
Total intangible assets
11,060,186
8,921,764
Tangible assets
12
2,792,519
2,841,879
13,852,705
11,763,643
Current assets
Stocks
15
5,571,994
4,696,473
Debtors
16
11,554,280
11,319,613
Cash at bank and in hand
6,349,274
1,227,131
23,475,548
17,243,217
Creditors: amounts falling due within one year
17
(9,103,201)
(6,806,321)
Net current assets
14,372,347
10,436,896
Total assets less current liabilities
28,225,052
22,200,539
Creditors: amounts falling due after more than one year
18
(1,893,232)
(51,330)
Provisions for liabilities
Deferred tax liability
20
326,109
386,816
(326,109)
(386,816)
Net assets
26,005,711
21,762,393
Capital and reserves
Called up share capital
22
1,150,059
1,150,059
Share premium account
23
15,317,371
15,317,371
Profit and loss reserves
23
2,590,368
1,141,396
Equity attributable to owners of the parent company
19,057,798
17,608,826
Non-controlling interests
6,947,913
4,153,567
26,005,711
21,762,393
INVERSIO LTD
GROUP BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 13 -
The financial statements were approved by the board of directors and authorised for issue on 18 March 2025 and are signed on its behalf by:
18 March 2025
Mr. N A Freeman
Director
Company registration number 13446695 (England and Wales)
INVERSIO LTD
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 14 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
446,124
477,227
Investments
13
15,317,431
15,317,431
15,763,555
15,794,658
Current assets
Debtors
16
3,818,428
3,917,115
Cash at bank and in hand
978,008
672,388
4,796,436
4,589,503
Creditors: amounts falling due within one year
17
(2,497,090)
(1,754,721)
Net current assets
2,299,346
2,834,782
Total assets less current liabilities
18,062,901
18,629,440
Provisions for liabilities
Deferred tax liability
20
13,414
16,026
(13,414)
(16,026)
Net assets
18,049,487
18,613,414
Capital and reserves
Called up share capital
22
1,150,059
1,150,059
Share premium account
23
15,317,371
15,317,371
Profit and loss reserves
23
1,582,057
2,145,984
Total equity
18,049,487
18,613,414

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 period was £375,924 (2022 - £3,977,437 profit).

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

INVERSIO LTD
COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2023
31 December 2023
- 15 -
The financial statements were approved by the board of directors and authorised for issue on 18 March 2025 and are signed on its behalf by:
18 March 2025
Mr. N A Freeman
Director
Company registration number 13446695 (England and Wales)
INVERSIO LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
Share capital
Share premium account
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 September 2021
-
0
-
0
-
0
-
-
-
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
-
1,234,125
1,234,125
1,966,788
3,200,913
Issue of share capital
22
1,150,059
15,317,371
-
16,467,430
-
16,467,430
Dividends
10
-
-
(92,729)
(92,729)
(1,738,724)
(1,831,453)
Acquisition of subsidiary
-
-
-
-
3,925,503
3,925,503
Balance at 31 December 2022
1,150,059
15,317,371
1,141,396
17,608,826
4,153,567
21,762,393
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
2,388,822
2,388,822
2,506,104
4,894,926
Dividends
10
-
-
(939,850)
(939,850)
(189,000)
(1,128,850)
Other movements
-
-
-
-
477,242
477,242
Balance at 31 December 2023
1,150,059
15,317,371
2,590,368
19,057,798
6,947,913
26,005,711
INVERSIO LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 September 2021
-
0
-
0
-
0
-
Period ended 31 December 2022:
Profit and total comprehensive income for the period
-
-
3,977,437
3,977,437
Issue of share capital
22
1,150,059
15,317,371
-
16,467,430
Dividends
10
-
-
(1,831,453)
(1,831,453)
Balance at 31 December 2022
1,150,059
15,317,371
2,145,984
18,613,414
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
-
375,923
375,923
Dividends
10
-
-
(939,850)
(939,850)
Balance at 31 December 2023
1,150,059
15,317,371
1,582,057
18,049,487
INVERSIO LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
9,101,306
1,953,933
Interest paid
(5,979)
(88,723)
Income taxes paid
(602,798)
(1,295,987)
Net cash inflow from operating activities
8,492,529
569,223
Investing activities
Purchase of business
(1,744,246)
3,872,371
Purchase of intangible assets
(24,467)
-
Purchase of tangible fixed assets
(505,969)
(2,487,857)
Proceeds from disposal of tangible fixed assets
3,565
51,154
Interest received
38,576
(1,402)
Net cash (used in)/generated from investing activities
(2,232,541)
1,434,266
Financing activities
Directors loan
-
(723,505)
Payment of finance leases obligations
(8,995)
(52,853)
Dividends paid to equity shareholders
(939,850)
-
Dividends paid to non-controlling interests
(189,000)
-
Net cash used in financing activities
(1,137,845)
(776,358)
Net increase in cash and cash equivalents
5,122,143
1,227,131
Cash and cash equivalents at beginning of year
1,227,131
-
0
Cash and cash equivalents at end of year
6,349,274
1,227,131
INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 19 -
1
Accounting policies
Company information

Inversio Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit A Quedgeley West Business Park, Bristol Road, Hardwicke, Gloucester, Gloucestershire, GL2 4PA.

 

The group consists of Inversio Ltd and all of its subsidiaries.

1.1
Reporting period

The comparative period of these financial statements represent the first trading period for Inversio Ltd. The comparative period financial statements therefore represent the company and group results for the period of 1 September 2021 to 31 December 2022. These figures are therefore not entirely comparable.

1.2
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 pound.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Basis of consolidation

The consolidated financial statements incorporate those of Inversio Ltd and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 December 2023. 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.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company 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. Special consideration has been given to the disposal of the entire shareholding of Elmbridge Pump Company and its group interests. It is the directors intention to continue the company and actively seek out new investment opportunities. Following the sale of its subsidiary, the company is in a strong financial position and therefore operations are expected to continue for 12 months after the approval of these financial statements, though the group will cease to exist.

INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.5
Turnover

Turnover comprises the invoice value of sales of goods, excluding value added tax, and is recognised on the day the goods are dispatched to the customer.

 

Warranty services are recognised from the date of purchase and deferred in full. Any claims against the warranty contract are recognised as incurred and warranty income released to match against the costs of providing the service. At the end of the warranty period, any unreleased income from the contracts are released in full as income.

1.6
Intangible fixed assets - goodwill

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

1.7
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.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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 and software
33.3% straight line
1.8
Tangible fixed assets

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

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

Freehold land and buildings
5% reducing balance
Leasehold land and buildings
20% straight line
Plant and machinery
25% reducing balance
Fixtures, fittings and equipment
15% reducing balance
Computer and office equipment
15% reducing balance/33.3% straight line
Motor vehicles
25% reducing balance

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.

INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.9
Fixed asset investments

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

1.10
Stocks

Stocks are stated at the lower of cost and net realisable value, where cost is calculated on a first in first out basis. Cost includes all directly attributable costs incurred in bringing the stock to its current location and condition. Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and disposal. Provision is made for obsolete, slow moving or defective items where appropriate.

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
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.

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.

INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts 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.

1.12
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.

1.13
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.

1.14
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.

1.15
Retirement benefits

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

INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 23 -
1.16
Leases

Where the company enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a finance lease. The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated in accordance with the above depreciation policies. Future instalments under such leases, net of finance charges, are included within creditors. Rentals payable are apportioned between the finance element, which is charged to the profit and loss account on a straight line basis, and the capital element which reduces the outstanding obligation for future instalments.

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.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

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

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
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.

 

The fixed asset depreciation charge is derived from the estimated useful economic life and residual value of

the asset. These are reviewed annually alongside any impairment indicators.

 

The intangible assets are reviewed for their useful lives and carrying values on an annual basis to ensure

these are consistent with expectations of future economic benefits. These reviews include intangible assets

arising on business combinations.

 

The company maintains a stock provision in order to maintain stock at the lower of cost and net realisable

value. The provision is reviewed and updated on a regular basis. The company uses specific criteria to

calculate stock provisions, but establishing the criteria requires significant judgement. The company

estimates the required provision using the following methods:

 

(a) by reviewing sales data in the accounting system and comparing to expected annual consumption of

stock lines against the stock holding. Where slow-moving items are identified, these are provided against

based on management judgement.

 

(b) by providing on a sliding scale of between 50% and 100% for items that have not sold between 12

months and 36 months.

 

The directors assess the closing debtor balances for recoverability and those not considered probable of

recovery are provided for in full. For the current year, the directors have assessed the balances outstanding

and consider provisioning recognised within the financial statements is correctly stated.

 

Prepayments are based on actual invoices received and costs allocated across the relevant accounting period

on a straight line basis of the time period in which the service relates to.

 

Accruals for goods or services received but not yet invoiced are estimated based on historic activity with the

supplier or quotations received ahead of invoicing.

 

The directors have assessed the recorded cost and subsequent carrying value of the investment in Elmbridge Pump Company Limited. The cost per the financial statements is the fair value of the investment as detailed in the acquisition note to the financial statements. The fair value is based on the proceeds received by the shareholders of Inversio Ltd from the non controlling interest for their minority holding in Elmbridge Pump Company Limited.

 

There were no other key sources of estimation uncertainty.

3
Turnover and other revenue
INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 25 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
44,861,993
43,167,223
Europe
76,973
19,729
Rest of the World
807
1,579
44,939,773
43,188,531
2023
2022
£
£
Other revenue
Interest income
38,576
(1,402)
Grants received
-
7,272

The directors consider all trade to fall within the category of the groups principal activity.

4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses/(gains)
2,026
(11,546)
Government grants
-
(7,272)
Depreciation of owned tangible fixed assets
633,517
285,774
Depreciation of tangible fixed assets held under finance leases
-
31,874
Loss on disposal of tangible fixed assets
4,063
98
Amortisation of intangible assets
995,747
1,378,655
(Profit)/loss on disposal of intangible assets
-
42,230
Operating lease charges
216,151
215,575
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,750
8,750
Audit of the financial statements of the company's subsidiaries
40,000
15,750
48,750
24,500
INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Auditor's remuneration
(Continued)
- 26 -
For services in respect of associated pension schemes
Taxation compliance services
1,750
1,250
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Number of production staff
89
63
-
-
Number of sales and management staff
47
42
-
-
Number of administrative and general staff
37
39
-
-
Directors
11
11
11
11
Total
184
155
11
11

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
9,287,701
8,488,529
123,589
-
0
Social security costs
500,492
543,611
-
-
Pension costs
65,006
112,897
-
0
-
0
9,853,199
9,145,037
123,589
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
80,445
-
INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
-
72,630
Interest on finance leases and hire purchase contracts
5,979
8,001
Other interest
-
8,092
Total finance costs
5,979
88,723
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,555,360
338,960
Adjustments in respect of prior periods
-
0
(7,952)
Total current tax
1,555,360
331,008
Deferred tax
Origination and reversal of timing differences
(82,161)
275,262
Total tax charge
1,473,199
606,270
INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 28 -

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:

2023
2022
£
£
Profit before taxation
6,368,125
3,807,183
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
1,497,783
723,365
Tax effect of expenses that are not deductible in determining taxable profit
40,680
94,407
Tax effect of income not taxable in determining taxable profit
(15,104)
-
0
Adjustments in respect of prior years
-
0
(1,595)
Effect of change in corporation tax rate
-
39,988
Permanent capital allowances in excess of depreciation
-
(38,172)
Depreciation on assets not qualifying for tax allowances
265,544
105,670
Research and development tax credit
(303,500)
(431,422)
Other permanent differences
-
0
120,386
Under/(over) provided in prior years
-
0
(6,357)
Deferred tax adjustments in respect of prior years
(12,204)
-
0
Taxation charge
1,473,199
606,270
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
939,850
1,831,453
INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
11
Intangible fixed assets
Group
Goodwill
Website and software
Total
£
£
£
Cost
At 1 January 2023
9,896,497
403,922
10,300,419
Additions - separately acquired
3,109,702
-
0
3,109,702
Additions - business combinations
-
0
24,467
24,467
Disposals
-
0
(67,263)
(67,263)
At 31 December 2023
13,006,199
361,126
13,367,325
Amortisation and impairment
At 1 January 2023
1,319,533
59,122
1,378,655
Amortisation charged for the year
989,650
6,097
995,747
Disposals
-
0
(67,263)
(67,263)
At 31 December 2023
2,309,183
(2,044)
2,307,139
Carrying amount
At 31 December 2023
10,697,016
363,170
11,060,186
At 31 December 2022
8,576,964
344,800
8,921,764
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.

Goodwill additions during the period represents the acquisition of group subsidiaries as outlined in note 24 to the financial statements. Goodwill represents the expected future benefit of the acquired subsidiaries customer base.

INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold land and buildings
Plant and machinery
Fixtures, fittings and equipment
Computer and office equipment
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 January 2023
434,864
1,586,609
457,904
139,602
136,876
230,185
2,986,040
Additions
-
0
298,076
92,409
23,515
93,435
23,000
530,435
Business combinations
-
0
2,893
11,642
20,753
-
0
26,062
61,350
Disposals
-
0
(152,826)
(11,233)
-
0
-
0
(72,677)
(236,736)
At 31 December 2023
434,864
1,734,752
550,722
183,870
230,311
206,570
3,341,089
Depreciation and impairment
At 1 January 2023
21,743
63,657
93,979
(33,608)
(55,608)
53,998
144,161
Depreciation charged in the year
20,656
174,212
128,778
174,947
84,485
50,439
633,517
Eliminated in respect of disposals
-
0
(158,945)
(5,114)
-
0
-
0
(65,049)
(229,108)
At 31 December 2023
42,399
78,924
217,643
141,339
28,877
39,388
548,570
Carrying amount
At 31 December 2023
392,465
1,655,828
333,079
42,531
201,434
167,182
2,792,519
At 31 December 2022
413,121
1,522,952
363,925
173,210
192,484
176,187
2,841,879
INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
Company
Freehold land and buildings
Plant and machinery
Fixtures, fittings and equipment
Computer and office equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
434,864
72,750
-
0
998
508,612
Additions
-
0
-
0
1,520
4,463
5,983
At 31 December 2023
434,864
72,750
1,520
5,461
514,595
Depreciation and impairment
At 1 January 2023
21,743
9,531
-
0
111
31,385
Depreciation charged in the year
20,656
15,805
76
549
37,086
At 31 December 2023
42,399
25,336
76
660
68,471
Carrying amount
At 31 December 2023
392,465
47,414
1,444
4,801
446,124
At 31 December 2022
413,121
63,219
-
0
887
477,227
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
15,317,431
15,317,431
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
15,317,431
Carrying amount
At 31 December 2023
15,317,431
At 31 December 2022
15,317,431
14
Subsidiaries

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

INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
14
Subsidiaries
(Continued)
- 32 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Elmbridge Pump Company
Unit A, Quedgeley West Business Park, Bristol Road, Hardwicke, Gloucester, United Kingdom, GL2 4PA
Holding Company
Ordinary
58.00
-
Dutypoint Limited
Unit A, Quedgeley West Business Park, Bristol Road, Hardwicke, Gloucester, United Kingdom, GL2 4PA
Sale of pump equipment
Ordinary
-
58.00
Resipoint Limited
Unit A, Quedgeley West Business Park, Bristol Road, Hardwicke, Gloucester, United Kingdom, GL2 4PA
Distribution of pumps
Ordinary
-
58.00
Dutypoint (NW) Limited
Unit A, Quedgeley West Business Park, Bristol Road, Hardwicke, Gloucester, United Kingdom, GL2 4PA
Holding company
Ordinary
-
58.00
Flowtech Water Solutions Holdings Limited
Unit A, Quedgeley West Business Park, Bristol Road, Hardwicke, Gloucester, United Kingdom, GL2 4PA
Holding company
Ordinary
-
58.00
Flowtech Water Solutions Limited
Unit A, Quedgeley West Business Park, Bristol Road, Hardwicke, Gloucester, United Kingdom, GL2 4PA
Distribution of pumps
Ordinary
-
58.00

On 1 September 2021 the group acquired 58% percent of the issued capital of Elmbridge Pump Company Limited. As a result of this acquisition, the group acquired control of Dutypoint Limited by virtue of Elmbridge Pump Company Limited owning 100% of the issued share capital of the company. During the year, Elmbridge Pump company acquired control of Resipoint Limited, Dutypoint (NW) Limited, Flowtech Water Solutions Holdings Limited and Flowtech Water Solutions Limited giving the group a 58% controlling interest.

On 10 January 2025 Inversio Ltd disposed of its entire shareholding in Elmbridge Pump Company Limited and its subsidiaries. The price achieved, if expressed as multiple of EBITDA is within the expected and normal multiple for the sector, the sale agreement precludes the disclosure of a specific figure. Accounts for Elmbridge Pump Company and its subsidiaries show Operating Profit for Elmbridge and its subsidiaries of £7,137,824 in 2023, £5,027,919 in 2022, and £3,582,296 in 2021, as per the published accounts. The total consideration excluding long term loans of £14,787,297 and equity instruments of £212,703 before tax was short term receivables of £35,729,554 net of deal fees.                 

                    

Net assets disposed of                      £

                    

Cash and cash equivalents              5,371,266

Tangbible and intangible fixed asset         5,254,276

Trade and other receivable         9,094,618

Inventories                        5,571,994

Trade and other payables                    (7,992,458)

Corporation tax                        (526,430)

Deferred tax                        (312,695 )

                             16,460,571

                    

The aggregate turnover of the disposed group entities for the year ended 31 December 2023 was £45,383,779 (2022: £33,535,847), profits before tax amounted to £7,644,063 (2022: £3,582,296) and tax charges of £1,430,620 (2022: £362,160).                    

INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
5,571,994
4,696,473
-
0
-
0
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
8,162,399
7,715,093
102,124
49,564
Corporation tax recoverable
-
0
458,753
-
0
-
0
Amounts owed by group undertakings
-
-
1,278,871
1,556,409
Other debtors
2,804,890
2,648,466
2,429,191
2,311,142
Prepayments and accrued income
586,991
497,301
8,242
-
0
11,554,280
11,319,613
3,818,428
3,917,115
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
19
58,920
21,416
-
0
-
0
Payments received on account
91,498
90,193
-
0
-
0
Trade creditors
2,545,314
2,980,607
61,097
5,147
Amounts owed to group undertakings
-
0
-
0
19,635
19,635
Corporation tax payable
586,465
14,844
60,035
14,844
Other taxation and social security
1,361,524
525,077
28,635
18,548
Other creditors
2,797,226
1,862,719
2,318,013
1,601,167
Accruals and deferred income
1,662,254
1,311,465
9,675
95,380
9,103,201
6,806,321
2,497,090
1,754,721
INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 34 -
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
19
18,232
51,330
-
0
-
0
Other creditors
1,875,000
-
0
-
0
-
0
1,893,232
51,330
-
-

Other creditors due more than one year represents deferred consideration on the acquisition of subsidiaries as detailed in note 24 to the financial statements.

19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
58,920
21,416
-
0
-
0
In two to five years
18,232
51,330
-
0
-
0
77,152
72,746
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
326,109
386,816
INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Deferred taxation
(Continued)
- 35 -
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
13,414
16,026
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
386,816
16,026
Credit to profit or loss
(60,707)
(2,612)
Liability at 31 December 2023
326,109
13,414
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
65,006
112,897

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.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A - 0 shares of 0.1p each
591,590
591,590
59
59
INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
22
Share capital
(Continued)
- 36 -
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
1,150,000
1,150,000
1,150,000
1,150,000
Preference shares classified as equity
1,150,000
1,150,000
Total equity share capital
1,150,059
1,150,059

During the period the company issued shares in different classes alphabetically ranging from A to O. All share classes rank pari-passu. A full breakdown of the shares issued is available on Companies House.

23
Reserves
Share premium

The share premium account represents the excess fair value of the shares issued as part of the share for share exchange over their normal value.

Profit and loss reserves

The profit and loss account reflects cumulative profits and losses net of distributions to the members.

INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 37 -
24
Acquisition of a business

On 1 September 2023 the group acquired 100 percent of the issued capital of Pumpserv Limited (now trading as Dutypoint (NW) Limited). Acquisition of this share capital also gained the company effective 100 percent control of Flowtech Water Solutions Holdings Limited and Flowtech Water Solutions Limited. The assets at acquisition of all three companies are amalgamated in the note below.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
85,816
-
85,816
Inventories
769,893
-
769,893
Trade and other receivables
1,269,770
-
1,269,770
Cash and cash equivalents
149,604
-
149,604
Hire purchase liability
(13,401)
-
(13,401)
Trade and other payables
(1,026,126)
-
(1,026,126)
Tax liabilities
(77,812)
-
(77,812)
Deferred tax
(21,454)
-
(21,454)
Total identifiable net assets
1,136,290
-
1,136,290
Non-controlling interests
(477,242)
Goodwill
3,109,702
Total consideration
3,768,750
The consideration was satisfied by:
£
Cash
1,893,750
Deferred consideration
1,875,000
3,768,750
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
1,560,898
Profit after tax
-
INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
24
Acquisition of a business
(Continued)
- 38 -

On 1 June 2023 the group acquired 100 percent of the issued capital of Resipoint Limited. A newly incorporated company.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Trade and other receivables
100
-
100
Goodwill
-
Total consideration
100
The consideration was satisfied by:
£
Cash
100
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
3,998,803
Profit after tax
-
25
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
399,135
954,268
-
-
Between two and five years
2,382,446
4,764,892
-
-
In over five years
2,219,265
5,221,800
-
-
5,000,846
10,940,960
-
-
INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 39 -
26
Related party transactions
Transactions with related parties

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Loans
-
2,074,996
Other information

The above amounts included within other debtors are owed by companies under common control of the Freeman family and are repayable on demand.

27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
4,894,926
3,200,913
Adjustments for:
Taxation charged
1,473,199
606,270
Finance costs
5,979
88,723
Investment income
(38,576)
1,402
Loss on disposal of tangible fixed assets
4,063
98
(Gain)/loss on disposal of intangible assets
-
42,230
Amortisation and impairment of intangible assets
995,747
1,378,655
Depreciation and impairment of tangible fixed assets
633,517
317,648
Decrease in provisions
(1,875,000)
(370,790)
Movements in working capital:
Increase in stocks
(105,628)
(1,543,314)
Decrease/(increase) in debtors
576,450
(5,119,484)
Increase in creditors
2,536,629
3,351,582
Cash generated from operations
9,101,306
1,953,933
INVERSIO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 40 -
28
Analysis of changes in net funds - group
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,227,131
5,122,143
6,349,274
Obligations under finance leases
(72,746)
(4,406)
(77,152)
1,154,385
5,117,737
6,272,122
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