Registration number:
Prepared for the registrar
for the
Year Ended 30 June 2024
Instep UK Limited
Contents
Company Information |
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Balance Sheet |
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Notes to the Unaudited Financial Statements |
Instep UK Limited
Company Information
Directors |
J B Jarman A H Bird I R Evans M R Pilcher |
Registered office |
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Accountants |
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Instep UK Limited
(Registration number: 03789359)
Balance Sheet as at 30 June 2024
Note |
2024 |
2023 |
|
Fixed assets |
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Intangible assets |
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|
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Tangible assets |
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|
|
|
|
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Current assets |
|||
Stocks |
|
|
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Debtors |
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|
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Cash at bank and in hand |
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|
|
|
|
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Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
- |
( |
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Provisions |
(32,628) |
(124,284) |
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Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
475 |
400 |
|
Share premium reserve |
3,002,726 |
2,252,801 |
|
Capital redemption reserve |
31 |
31 |
|
Retained earnings |
(730,225) |
(73,862) |
|
Shareholders' funds |
2,273,007 |
2,179,370 |
For the financial year ending 30 June 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors' responsibilities:
• |
|
• |
The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts. |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.
Approved and authorised by the
Director
Instep UK Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006 (as applicable to the small companies' regime).
Basis of preparation
These financial statements have been prepared using the historical cost convention except for, where disclosed in these accounting policies, certain items that are shown at fair value.
The presentational currency of the financial statements is Pounds Sterling, being the functional currency of the primary economic environment in which the company operates. Monetary amounts in these financial statements are rounded to the nearest Pound.
Going concern
After reviewing the company’s forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
Critical accounting judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
Judgements
No significant judgements have been made by management in preparing these financial statements. |
Instep UK Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024
Key sources of estimation uncertainty
Deferred taxation asset
The Company has recognised a deferred tax asset in its financial statements of £1,392,941 (2023 - £1,200,535), which assumes that the Company will generate sufficient taxable profits in the future to offset these losses. This is a source of estimation uncertainty.
The Company has unutilised tax losses of £6,114,533 (2023 - £5,366,116) available for offset against future taxable profits. These losses include £826,575 arising from the exercise of share options, which is a non-recurring tax deduction arising when the Company was acquired by the current shareholders. The losses also arise from costs that have been incurred from re-structuring of management and operations that are also considered to be non-recurring.
Following a change in focus the Directors have prepared a five-year business plan that indicates that the Company will begin to utilise these tax losses with effect from the year ending 30 June 2026. The directors are confident that the new revenue streams that they have been identified are achievable with a reduced cost structure. By its nature any profit forecast is susceptible to estimation uncertainty arising from economic, market, regulatory and operational factors.
FRS 102 requires that a deferred tax asset arising from unutilised tax losses can be recognised only if it is probable (that is more likely than not) that the unutilised losses will result in future tax savings. On the basis of their projections the Directors consider that it is probable that the Company will generate sufficient taxable profits to realise these tax savings in the future. In making this assessment they have taken into account the fact that a significant element of the available losses has arisen from non-recurring events.
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The company recognises revenue when: The amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the company's activities.
Apprenticeship income is recognised at the point the company earns the right to consideration for services performed in agreement with contracts and contractual obligations. Typically, apprenticeship income is split into two elements: training and completion. Training income is recognised evenly over the expected duration of the course subject to the learner achieving measurable training milestones. Completion income is recognised when a learner has completed their training and course qualification.
Commercial income is recognised as training services are provided taking into consideration the contractual obligations and milestones agreed with the customer.
Adult education is recognised at the point the company earns the right to consideration for services performed in agreement with contracts and contractual obligations. This income comprises training courses provided to upskill adults and is recognised evenly over the expected duration of the training course.
Logistics income comprises training to drive heavy goods vehicles. Trainees must meet four milestones in the completion of this course and the company earns the right to consideration for delivery of this training in line with the milestones being met.
Greater Manchester Combined Authority income is recognised as milestones are reached by specific learners. This income comprises specific manufacturing training and income earned reflects each learner's progression throughout their course.
Instep UK Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024
Tax
The tax expense for the period comprises and deferred tax. Tax is recognised in the profit and loss account, except that a charge attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.
Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Intangible assets
Research expenditure is written off in the year which it is incurred.
Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company expects to benefit from the project.
Software development costs are recognised initially as an asset at cost and subsequently carried at cost less amortisation and accumulated impairment losses.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Software |
20% Straight Line |
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Furniture, Fittings and Equipment |
10% Straight Line |
Motor Vehicles |
25% Straight Line |
Computer Equipment |
33% Straight Line |
Trade debtors
Trade debtors are amounts due from customers for goods sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. All trade debtors are repayable within one year and hence are included at the undiscounted cost of cash expected to be received. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debtors.
Instep UK Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost is determined using the first-in, first-out (FIFO) method.
At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and all are repayable within one year and hence are included at the undiscounted amount of cash expected to be paid.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Financial instruments
Classification
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability on the balance sheet. The corresponding dividends relating to the liability component are charged as interest expenses in the profit and loss account.
Recognition and measurement
All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.
Instep UK Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024
Impairment
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below.
A non financial asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use.
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the financial asset’s original effective interest rate.
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset’s carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date.
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised.
Provisions
Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the Balance Sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the Profit and Loss Account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Instep UK Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Intangible assets |
Trademarks, patents and licenses |
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Cost |
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At 1 July 2023 |
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Additions acquired separately |
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At 30 June 2024 |
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Amortisation |
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At 1 July 2023 |
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Amortisation charge |
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At 30 June 2024 |
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Carrying amount |
|
At 30 June 2024 |
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At 30 June 2023 |
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Tangible assets |
Furniture, fittings and equipment |
Motor vehicles |
Computer Equipment |
Total |
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Cost |
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At 1 July 2023 |
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|
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Additions |
- |
- |
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Disposals |
- |
( |
- |
( |
At 30 June 2024 |
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- |
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Depreciation |
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At 1 July 2023 |
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Charge for the year |
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Eliminated on disposal |
- |
( |
- |
( |
At 30 June 2024 |
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- |
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Carrying amount |
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At 30 June 2024 |
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- |
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At 30 June 2023 |
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Included in the net book value of motor vehicles held as at 30 June 2024 was £nil (2023 - £113,950) in respect of assets held under finance leases. Depreciation charged on these assets during the year was £9,918 (2023 - £27,415).
Instep UK Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024
Debtors |
2024 |
2023 |
|
Trade debtors |
|
|
Receivables from related parties |
845,759 |
784,664 |
Prepayments |
|
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Other debtors |
|
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Deferred tax assets |
1,392,941 |
1,200,535 |
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Creditors |
Note |
2024 |
2023 |
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Due within one year |
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Loans and borrowings |
- |
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Trade creditors |
|
|
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Amounts due to related parties |
71,824 |
71,824 |
|
Taxation and social security |
|
|
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Accruals and deferred income |
|
|
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Other creditors |
|
|
|
|
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Note |
2024 |
2023 |
|
Due after one year |
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Loans and borrowings |
- |
|
Provisions |
Withdrawal provision |
|
At 1 July 2023 |
|
Increase (decrease) in existing provisions |
( |
At 30 June 2024 |
|
|
The withdrawal provision relates to the costs the company expects to incur as a result of learners withdrawing from courses prior to completion for which the company have already received the funding against.
This provision reflect managements best estimate of the expected cash outflows.
Deferred tax |
Deferred tax assets and liabilities
2024 |
Asset |
Unutilised losses |
|
Instep UK Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024
2023 |
Asset |
Unutilised losses |
|
Loans and borrowings |
Current loans and borrowings
2024 |
2023 |
|
HP and finance lease liabilities |
- |
|
Non-current loans and borrowings
2024 |
2023 |
|
HP and finance lease liabilities |
- |
|
Obligations under finance lease and hire purchase contracts are secured against the assets to which they relate.
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
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No. |
£ |
No. |
£ |
|
|
|
375.00 |
|
300.00 |
|
|
100.00 |
|
100.00 |
|
|
|
|
New shares allotted
During the year 7,500 Ordinary A shares having an aggregate nominal value of £75 were allotted for an aggregate consideration of £750,000. |
Rights, preferences and restrictions
Ordinary A and G shares have the following rights, preferences and restrictions: |
Commitments |
Operating lease commitments
The company has future operating lease commitments of £18,383 (2023 - £30,002). This includes the lease of their office premises.
Instep UK Limited
Notes to the Unaudited Financial Statements for the Year Ended 30 June 2024
Related party transactions |
Summary of transactions with other related parties
During the year the company incurred expenditure of £Nil (2023 - £606) with a consultant related to one of the directors. At the balance sheet date the amount owed to the consultant was £nil (2023 - £nil).
Parent and ultimate parent undertaking |
The company's immediate parent is Instep Training and Development Limited, incorporated in England.
The ultimate controlling party is Scaleup Capital General Partner LLP, acting on behalf of and as General Partner of Root Capital Fund III LP.