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REGISTERED NUMBER: 08213152 (England and Wales)















INFINITY INNOVATIONS LTD

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024






INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

CONTENTS OF THE FINANCIAL STATEMENTS
for the year ended 31 March 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Income Statement 10

Other Comprehensive Income 11

Balance Sheet 12

Statement of Changes in Equity 13

Cash Flow Statement 14

Notes to the Cash Flow Statement 15

Notes to the Financial Statements 16


INFINITY INNOVATIONS LTD

COMPANY INFORMATION
for the year ended 31 March 2024







DIRECTORS: Mr J F M Findlay
Mr X Ji
Mrs S E Findlay
Mrs X Wang





REGISTERED OFFICE: BCL House
2 Pavilion Business Park
Royds Hall Road
Leeds
West Yorkshire
LS12 6AJ





REGISTERED NUMBER: 08213152 (England and Wales)





AUDITORS: SMH Sheards Audit Limited
Statutory Auditors
Vernon House
40 New North Road
Huddersfield
West Yorkshire
HD1 5LS

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

STRATEGIC REPORT
for the year ended 31 March 2024


The directors present their strategic report for the year ended 31 March 2024.

REVIEW OF BUSINESS
Financial Performance
The Directors are disappointed to report that annual profitability fell below expectations. This outcome was primarily driven by overstocking of inventory, based on historical UK demand levels that did not materialise as anticipated. Excess stock, particularly in energy storage batteries and hybrid storage systems, led to increased warehousing costs and margin erosion due to discounting to clear surplus inventory.

Operational Highlights
Despite profitability challenges, the business achieved revenue growth of 3% in key product lines, notably Hanchu storage system and heat pump, reflecting strong demand for decarbonisation technologies. Strategic partnerships with Hanchu ESS and certifications for product safety and efficiency standards (e.g., MCS accreditation) reinforced our market position. The UK's accelerated transition to renewable energy, supported by government incentives, also contributed to a broader customer base.

FUTURE DEVELOPMENTS
To address the challenges of the past year and capitalise on emerging opportunities, the Directors have approved a strategic shift in the company's operating model:

Transition to National Wholesaler Distribution: The business will phase out direct supply to individual companies and instead distribute products through national wholesaler networks. This move aims to:

- Reduce logistical complexity and inventory holding costs.
- Improve market reach and scalability by leveraging wholesalers' established networks.
- Enhance cash flow predictability through bulk orders and long-term contracts.

A phased transition will commence in Q1 2025, with full implementation targeted by 2026. The Board anticipates this shift will mitigate overstocking risks and align operations with broader market dynamics.

PRINCIPAL RISKS AND UNCERTAINTIES
The Directors have identified the following key risks and mitigation strategies:

a) Price Risk
- Risk: Fluctuations in raw material costs (e.g., lithium, steel) and competitive pricing pressures may impact margins.
- Mitigation: Dynamic pricing strategies, long-term supplier agreements, and product diversification.

b) Credit Risk
- Risk: Exposure to customer defaults, particularly during the transition to wholesaler distribution.
- Mitigation: Enhanced credit checks for wholesalers, phased payment terms, and trade credit insurance.

c) Liquidity Risk
- Risk: Cash flow constraints due to inventory management challenges and transitional costs.
- Mitigation: Tight working capital controls, renegotiation of supplier terms, and access to revolving credit facilities.


INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

STRATEGIC REPORT
for the year ended 31 March 2024

CONCLUSION
The Directors remain confident in the long-term growth prospects of the renewable energy sector. While the past year presented profitability challenges, the strategic shift to a wholesaler-led model positions the company to better manage inventory, reduce operational risks, and capitalise on the UK's net-zero ambitions.

ON BEHALF OF THE BOARD:





Mr X Ji - Director


18 March 2025

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

REPORT OF THE DIRECTORS
for the year ended 31 March 2024


The directors present their report with the financial statements of the company for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the sale of renewable energy and technology for the residential and commercial sectors.

DIVIDENDS
Interim dividends per share were paid as follows:
£2,000 - 11 January 2024
£1,000 - 31 March 2024
£3,000

The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 31 March 2024 will be £ 6,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

Mr J F M Findlay
Mr X Ji

Other changes in directors holding office are as follows:

Mrs S E Findlay and Mrs X Wang were appointed as directors after 31 March 2024 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

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

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

REPORT OF THE DIRECTORS
for the year ended 31 March 2024


AUDITORS
The auditors, SMH Sheards Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr X Ji - Director


18 March 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
INFINITY INNOVATIONS LTD


Qualified Opinion
We have audited the financial statements of Infinity Innovations Ltd (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

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

-give a true and fair view of the state of the company’s affairs as at 31 March 2024 and of the company’s loss for
the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion
We were not appointed as auditor of the company until after 31 March 2023 and thus did not observe the counting of the physical inventories of that year. We were unable to satisfy ourselves by alternative means concerning inventory quantities of £18,184,272 held at 31 March 2023 by using other audit procedures. Consequently, we are unable to determine whether any adjustment to this amount 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.

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 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.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
INFINITY INNOVATIONS LTD


Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
INFINITY INNOVATIONS LTD


Auditors' 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 a Report of the Auditors 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.

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:

- the engagement partner ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors, and from
our commercial knowledge and experience of the sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the
financial statements or the operations of the company;
- we assessed the extent of compliance with the laws and regulations identified through making enquiries of
management; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert
to instances of non-compliance throughout the audit.

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

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge
of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
regulations.

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

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining accounting estimates were indicative of
potential bias; and
- investigated the rationale behind significant or unusual transactions.

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

- agreeing financial statement disclosures to underlying supporting documentation; and
- enquiring of management as to actual and potential litigation and claims.

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 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 the may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
INFINITY INNOVATIONS LTD


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 a Report of the Auditors 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.




Kevin Winterburn FCA (Senior Statutory Auditor)
for and on behalf of SMH Sheards Audit Limited
Statutory Auditors
Vernon House
40 New North Road
Huddersfield
West Yorkshire
HD1 5LS

21 March 2025

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

INCOME STATEMENT
for the year ended 31 March 2024

2024 2023
Notes £    £   

TURNOVER 3 20,457,229 25,987,143

Cost of sales (19,279,871 ) (21,455,683 )
GROSS PROFIT 1,177,358 4,531,460

Administrative expenses (867,447 ) (560,765 )
309,911 3,970,695

Other operating income 6,240 6,240
OPERATING PROFIT 5 316,151 3,976,935

Exceptional item 6 (805,934 ) -
(489,783 ) 3,976,935

Interest receivable and similar income 10 -
(LOSS)/PROFIT BEFORE TAXATION (489,773 ) 3,976,935

Tax on (loss)/profit 7 (80,784 ) (757,946 )
(LOSS)/PROFIT FOR THE FINANCIAL
YEAR

(570,557

)

3,218,989

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

OTHER COMPREHENSIVE INCOME
for the year ended 31 March 2024

2024 2023
Notes £    £   

(LOSS)/PROFIT FOR THE YEAR (570,557 ) 3,218,989


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(570,557

)

3,218,989

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

BALANCE SHEET
31 March 2024

2024 2023
Notes £    £   
FIXED ASSETS
Intangible assets 9 7,396 -
Tangible assets 10 353,597 79,706
360,993 79,706

CURRENT ASSETS
Stocks 11 13,059,684 18,184,272
Debtors 12 398,853 1,628,855
Cash at bank 1,575,621 1,014,081
15,034,158 20,827,208
CREDITORS
Amounts falling due within one year 13 (12,234,532 ) (17,238,210 )
NET CURRENT ASSETS 2,799,626 3,588,998
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,160,619

3,668,704

PROVISIONS FOR LIABILITIES 15 (88,399 ) (19,927 )
NET ASSETS 3,072,220 3,648,777

CAPITAL AND RESERVES
Called up share capital 16 2 2
Retained earnings 17 3,072,218 3,648,775
SHAREHOLDERS' FUNDS 3,072,220 3,648,777

The financial statements were approved by the Board of Directors and authorised for issue on 18 March 2025 and were signed on its behalf by:





Mr X Ji - Director


INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

STATEMENT OF CHANGES IN EQUITY
for the year ended 31 March 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 April 2022 2 429,786 429,788

Changes in equity
Total comprehensive income - 3,218,989 3,218,989
Balance at 31 March 2023 2 3,648,775 3,648,777

Changes in equity
Dividends - (6,000 ) (6,000 )
Total comprehensive income - (570,557 ) (570,557 )
Balance at 31 March 2024 2 3,072,218 3,072,220

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

CASH FLOW STATEMENT
for the year ended 31 March 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,621,019 638,234
Tax paid (743,679 ) (95,936 )
Net cash from operating activities 877,340 542,298

Cash flows from investing activities
Purchase of intangible fixed assets (7,800 ) -
Purchase of tangible fixed assets (315,737 ) (69,734 )
Sale of tangible fixed assets 1 -
Interest received 10 -
Net cash from investing activities (323,526 ) (69,734 )

Cash flows from financing activities
Net movement on directors loans 13,726 -
Equity dividends paid (6,000 ) -
Net cash from financing activities 7,726 -

Increase in cash and cash equivalents 561,540 472,564
Cash and cash equivalents at beginning of
year

2

1,014,081

541,517

Cash and cash equivalents at end of year 2 1,575,621 1,014,081

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

NOTES TO THE CASH FLOW STATEMENT
for the year ended 31 March 2024


1. RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2024 2023
£    £   
(Loss)/profit before taxation (489,773 ) 3,976,935
Depreciation charges 40,347 19,818
Loss on disposal of fixed assets 1,846 -
Provision against doubtful debt 805,934 -
Finance income (10 ) -
358,344 3,996,753
Decrease/(increase) in stocks 5,124,644 (17,167,480 )
Decrease/(increase) in trade and other debtors 424,068 (1,143,572 )
(Decrease)/increase in trade and other creditors (4,286,037 ) 14,952,533
Cash generated from operations 1,621,019 638,234

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2024
31.3.24 1.4.23
£    £   
Cash and cash equivalents 1,575,621 1,014,081
Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 1,014,081 541,517


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.23 Cash flow At 31.3.24
£    £    £   
Net cash
Cash at bank 1,014,081 561,540 1,575,621
1,014,081 561,540 1,575,621
Total 1,014,081 561,540 1,575,621

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

NOTES TO THE FINANCIAL STATEMENTS
for the year ended 31 March 2024


1. STATUTORY INFORMATION

Infinity Innovations Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, hence they continue to adopt the going concern basis of accounting in preparing the financial statements.

Critical accounting judgements and key sources of estimation uncertainty
In order to properly apply the company’s accounting policies, the directors are required to make judgements and estimates in respect of carrying values of assets and liabilities which may not be apparent from other sources of information. The directors base these critical accounting judgements and estimations on previous historical experience and other factors which the directors judge to be relevant. Judgements and estimates will invariably differ from actual results and hence such judgements and estimates are reviewed by the directors on an ongoing basis.

The company is a wholesale distributor of renewable technologies. The products it sells are subject to rapid technological changes, and as a result it is necessary to consider the recoverability of the cost of the inventory and the associated provisioning required. When calculating the inventory provision, management considers the nature and condition of the inventory, as well as applying assumptions around anticipated saleability of inventories, such as stock obsolescence, market decline and expected returns. The carrying value of the inventory provision as at 31 March was £746,054 (2023 - £458,021) on a gross inventory balance of £13,805,738 (£2023 - £18,642,293).

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover is recognised on despatch of the goods to the customer.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 10% on cost
Plant and machinery - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance
Motor vehicles - 25% on reducing balance
Computer equipment - 33% on cost

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


2. ACCOUNTING POLICIES - continued

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Basic financial assets, which include trade and other debtors, amounts owed by associated undertakings and cash and bank balances, are initially measured at transaction price including transaction costs.

Financial assets, other than those held at fair value through profit or loss, are assessed for indicators of impairment at each balance sheet date, with any impairment losses being recognised in profit or loss. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed in profit or loss.

Financial liabilities are classified depending on the substance of the contractual arrangements entered into.

Basic financial liabilities, including trade and other creditors, accruals and amounts owed to associated undertakings, are initially recognised at transaction price.

Financial assets and liabilities are derecognised when the company's contractual obligations are settled, cancelled or they expire.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


3. TURNOVER

The turnover and loss (2023 - profit) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Sale of goods 20,397,229 25,987,143
Services 60,000 -
20,457,229 25,987,143

4. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 815,927 511,390
Social security costs 78,994 48,334
Other pension costs 331,661 156,962
1,226,582 716,686

The average number of employees during the year was as follows:
2024 2023

Warehouse, management and administrative 23 16

2024 2023
£    £   
Directors' remuneration 190,986 131,192
Directors' pension contributions to money purchase schemes 150,661 76,794

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

5. OPERATING PROFIT

The operating profit is stated after charging:

2024 2023
£    £   
Depreciation - owned assets 39,999 57,987
Loss on disposal of fixed assets 1,846 -
Computer software amortisation 404 -
Auditors' remuneration 5,000 -

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


6. EXCEPTIONAL ITEMS
2024 2023
£    £   
Exceptional item (805,934 ) -

Exceptional items relate to a provision against an unrecoverable amount from an associated company.

7. TAXATION

Analysis of the tax charge
The tax charge on the loss for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 12,312 743,679

Deferred tax 68,472 14,267
Tax on (loss)/profit 80,784 757,946

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
(Loss)/profit before tax (489,773 ) 3,976,935
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of
24.057% (2023 - 19%)

(117,825

)

755,618

Effects of:
Expenses not deductible for tax purposes 196,679 1,751
Depreciation in excess of capital allowances 1,930 577
Total tax charge 80,784 757,946

8. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 6,000 -

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


9. INTANGIBLE FIXED ASSETS
Computer
software
£   
COST
At 1 April 2023 26,280
Additions 7,800
Disposals (26,280 )
At 31 March 2024 7,800
AMORTISATION
At 1 April 2023 26,280
Amortisation for year 404
Eliminated on disposal (26,280 )
At 31 March 2024 404
NET BOOK VALUE
At 31 March 2024 7,396
At 31 March 2023 -

10. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 April 2023 - 30,057 9,684
Additions 4,740 3,320 226
Disposals - (2,668 ) (1,799 )
At 31 March 2024 4,740 30,709 8,111
DEPRECIATION
At 1 April 2023 - 4,717 2,823
Charge for year 237 6,901 1,667
Eliminated on disposal - (1,904 ) (1,400 )
At 31 March 2024 237 9,714 3,090
NET BOOK VALUE
At 31 March 2024 4,503 20,995 5,021
At 31 March 2023 - 25,340 6,861

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


10. TANGIBLE FIXED ASSETS - continued

Motor Computer
vehicles equipment Totals
£    £    £   
COST
At 1 April 2023 41,512 35,096 116,349
Additions 299,772 7,679 315,737
Disposals - (11,878 ) (16,345 )
At 31 March 2024 341,284 30,897 415,741
DEPRECIATION
At 1 April 2023 9,561 19,542 36,643
Charge for year 22,286 8,908 39,999
Eliminated on disposal - (11,194 ) (14,498 )
At 31 March 2024 31,847 17,256 62,144
NET BOOK VALUE
At 31 March 2024 309,437 13,641 353,597
At 31 March 2023 31,951 15,554 79,706

11. STOCKS
2024 2023
£    £   
Stocks 13,059,684 18,184,272

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 107,113 190,237
Amounts owed by associates - 1,401,692
Prepayments 291,740 36,926
398,853 1,628,855

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade creditors 11,880,072 15,286,651
Amounts owed to associates 150,630 160,773
Tax 12,312 743,679
Social security and other taxes 38,752 45,001
VAT 109,497 976,776
Other creditors 5,673 -
Directors' loan accounts 27,596 13,870
Accrued expenses 10,000 11,460
12,234,532 17,238,210

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


14. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Between one and five years 127,674 -

15. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 88,399 19,927

Deferred
tax
£   
Balance at 1 April 2023 19,927
Provided during year 68,472
Balance at 31 March 2024 88,399

16. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
2 Ordinary £1 2 2

The holders of ordinary shares are entitled to receive dividends which the company declares from time to time and are entitled to one vote per share at meetings of the company.

17. RESERVES
Retained
earnings
£   

At 1 April 2023 3,648,775
Deficit for the year (570,557 )
Dividends (6,000 )
At 31 March 2024 3,072,218

18. RELATED PARTY DISCLOSURES

At the year end, £27,596 (2023 - £13,870) was owed to the directors by way of directors' loan accounts. The amounts are repayable on demand and are interest free.

INFINITY INNOVATIONS LTD (REGISTERED NUMBER: 08213152)

NOTES TO THE FINANCIAL STATEMENTS - continued
for the year ended 31 March 2024


18. RELATED PARTY DISCLOSURES - continued

Other related parties
2024 2023
£    £   
Sales 698,958 1,470,653
Purchases 662,106 87,568
Amount due from related party 805,934 1,401,692
Amount due to related party 150,630 160,773
Provisions for uncollectible receivables relating to amount of outstanding
balances

805,934

-

Transactions with related parties comprise transactions with companies who are under common control of the directors and shareholders.

19. ULTIMATE CONTROLLING PARTY

There is no individual ultimate controlling party.