Registered number
09662571
Iona Management Services Limited
Consolidated Financial Statements
30 June 2024
1
Iona Management Services Limited
Company Information
Directors
Philip Davies
Nicholas Ross
Peter Mills
Manuel Rolf GÖTZ (Appointed 23 December 2024)
Fabian Matheis (Appointed 23 December 2024)
Auditors
Azets Audit Services
Wynyard Park House
Wynyard Avenue
Wynyard
TS22 5TB
Registered office
Marlborough House,
Westminster Place, Nether Poppleton,
York
North Yorkshire
YO26 6RW
Registered number
09662571
1
Iona Management Services Limited
Registered number:
09662571
Directors' Report
The directors present their report and financial statements for the year ended 30 June 2024.
Principal activities
The group's principal activity during the year continued to be the operation and maintenance of anaerobic digester plants
Directors
The following persons served as directors during the year:
Philip Davies
Nicholas Ross
Peter Mills
Manuel Rolf GÖTZ (Appointed 23 December 2024)
Fabian Matheis (Appointed 23 December 2024)
Directors' responsibilities
The directors are responsible for preparing the report and 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 (Financial Reporting Standard 102 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 estimates that are reasonable and prudent;
●
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
●
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.
Disclosure of information to auditors
Each person who was a director at the time this report was approved confirms that:
●
so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and
●
he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board on
25 March 2025
25 March 2025
and signed on its behalf.
Peter Mills
Director
1
Iona Management Services Limited
Strategic Report
BUSINESS REVIEW
The principal activity of Iona Management Services, together with Iona Management Services Caledonia, “the Group”, is to service and maintain equipment within the biogas industry.
The Group relies on income from management and operations contracts for anaerobic digestion sites throughout England and Scotland. The Group provided contracted services to 17 biogas sites throughout the year.
In addition to the contractual services provided, the Group engages in sourcing and selling feedstock and critical mechanical spares to these sites, as well as to 3rd party customers.
The Group traded profitably in the year however due to a bad debt write off, and a provision against doubtful debts, it recorded a loss before tax of (£0.2m) (2023: profit of £0.4m).
The Group ended the year with positive net assets of £0.3m (2023: £0.5m). The Board regularly reviews the development and strategic direction of the Group. The Group intends to continue developing its business in the AD industry.
PRINCIPAL RISKS AND UNCERTAINTIES Price risk
The Group's income comprises of fixed price contracts (subject to RPI movements). Other activities are recharged on a cost-plus basis, thus mitigating the impact of price rises within the industry. Liquidity risk
As explained in the Going Concern note below the Group's liquidity risk is assessed regularly through review of the balance sheet and cash flow forecasts. Credit risk
Credit risk is assessed through regular review of the Group's debtor position, including aged debts. A significant proportion of the aged debt on the Group's balance sheet is due from related parties where there is visibility over debt recovery. The Group is in receipt of a long-term loan, from entities controlled by Iona Capital Limited, representing the debt due from related parties. The Board regularly reviews the debt recovery position. Other risks
The Group's other principal risks include legal, regulatory and operational risk. The Group has detailed policies and procedures surrounding these risks, which are regularly reviewed by external advisors.
GOING CONCERN
The Group's activities, together with the factors likely to affect its future development, its financial position and the financial risks are described above.
After reviewing the balance sheet and cash flow forecasts and projections, the Directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future, which is a period of twelve months from the date of approval of these financial statements. Accordingly, they continue to adopt the going concern basis in preparing financial statements.
2
KEY PERFORMANCE INDICATORS (‘KPIs')
The key KPIs for the Group are revenue and profit before tax. In the year to 30 June 2024 the Group's revenues totalled £12.6m (30 June 2023: £12.4m) and the loss before tax was £0.2m (30 June 2023: profit of £0.4m). During the year aged debt of £0.3m (2023: £0.1m) was provided for, and debt totalling £0.5m (2023: £nil) was written off.
After adjusting for these one-off items, the Group's profit for the year for KPI purposes was £0.6m (2023: £0.5m). The Group's Directors monitor these on a regular basis.
SUBSEQUENT EVENT
On 1 July 2024, Iona Management Services Caledonia ceased to trade. The trade and assets of the company have been ‘hived up' to the parent company Iona Management Services, and contracts novated.
During 2023 Iona Capital embarked on “Project Volta”, a transaction to raise new capital for investment in anaerobic digestion projects, entailing the acquisition by the funder of a number of existing Iona-managed AD assets, as well as all or part of the issued share capital of Iona Capital and Iona Management Services Ltd. The transaction completed on 23rd December 2024, resulting in the purchase of Iona Capital by Kanadevia Inova AG, and the associated purchase by Iona Capital of the remaining 75% shares in Iona Management Services it didn't already own, as well as 11 of the AD assets managed by Iona.
This report was approved by the board on
25 March 2025
25 March 2025
and signed on its behalf.
Peter Mills
Director
1
Iona Management Services Limited
Independent auditor's report
to the members of Iona Management Services Limited
Opinion
We have audited the financial statements of Iona Management Services Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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:
●
give a true and fair view of the state of the group's and the parent company's affairs as at 30 June 2024 and of the group's loss for the year then ended;
●
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
●
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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.
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.
2
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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
●
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of 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 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:
●
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
●
the parent company financial statements are not in agreement with the accounting records and returns; or
●
certain disclosures of directors' remuneration specified by law are not made; or
●
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' rresponsibilities sstatement, 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.
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.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud.
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.
3
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:
●
Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
●
Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection;
●
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
●
Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Other matters which we are required to address
The group was exempt from audit in the previous year and therefore the opening balances are unaudited. However, the parent company was audited
We have obtained sufficient appropriate audit evidence that the opening balances do not contain misstatements that materially affect the current period's financial statements.
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.
Graham Fitzgerald BA FCA DChA
(Senior Statutory Auditor)
Wynyard Park House
for and on behalf of
Wynyard Avenue
Azets Audit Services
Wynyard
Statutory Auditor
General
26 March 2025
TS22 5TB
1
Iona Management Services Limited
Consolidated Income Statement
for the year ended 30 June 2024
Notes
2024
2023
£
£
Turnover
2
12,584,043
12,428,369
Cost of sales
(8,427,097)
(8,521,766)
Gross profit
4,156,946
3,906,603
Administrative expenses
(4,425,003)
(3,383,187)
Other operating income
39,022
20,714
Operating (loss)/profit
3
(229,035)
544,130
(Loss)/profit on sale of fixed assets
(5,467)
3,673
Interest receivable
12,156
-
Interest payable
5
(20,812)
3,882
(Loss)/profit on ordinary activities before taxation
(243,158)
551,685
Tax on (loss)/profit on ordinary activities
6
4,365
(123,476)
(Loss)/profit for the financial year
(238,793)
428,209
Registered number: 09662571
1
Iona Management Services Limited
Consolidated Statement of Comprehensive Income
for the year ended 30 June 2024
Notes
2024
2023
£
£
(Loss)/profit for the financial year
(238,793)
428,209
Other comprehensive income
-
-
Total comprehensive income for the year
(238,793)
428,209
1
Iona Management Services Limited
Consolidated Statement of Financial Position
as at 30 June 2024
2024-06-30
Notes
2024
2023
£
£
Fixed assets
Intangible assets
7
97,668
136,735
Tangible assets
8
88,696
44,656
186,364
181,391
Current assets
Stocks
9
132,080
109,845
Debtors
10
5,289,529
6,126,819
Cash at bank and in hand
1,043,749
638,823
6,465,358
6,875,487
Creditors: amounts falling due within one year
11
(6,210,105)
(6,405,665)
Net current assets
255,253
469,822
Total assets less current liabilities
441,617
651,213
Creditors: amounts falling due after more than one year
12
(181,704)
(153,405)
Provisions for liabilities
Deferred taxation
15
(898)
-
Net assets
259,015
497,808
Capital and reserves
Called up share capital
16
40,000
40,000
Other reserves
17
(34,098)
(34,098)
Profit and loss account
18
253,113
491,906
Total equity
259,015
497,808
Peter Mills
Director
Approved by the board on 25 March 2025
Registered number: 09662571
Iona Management Services Limited
Statement of Financial Position
as at 30 June 2024
2024-06-30
Notes
2024
2023
£
£
Fixed assets
Tangible assets
8
84,803
39,499
Investments
1
1
84,804
39,500
Current assets
Stocks
9
132,080
109,845
Debtors
10
5,574,969
6,308,825
Cash at bank and in hand
936,708
578,071
6,643,757
6,996,741
Creditors: amounts falling due within one year
11
(6,158,825)
(6,239,377)
Net current assets
484,932
757,364
Total assets less current liabilities
569,736
796,864
Creditors: amounts falling due after more than one year
12
(133,411)
(153,405)
Provisions for liabilities
Deferred taxation
15
(898)
-
Net assets
435,427
643,459
Capital and reserves
Called up share capital
16
40,000
40,000
Profit and loss account
395,427
603,459
Total equity
435,427
643,459
1
Iona Management Services Limited
Consolidated Statement of Changes in Equity
for the year ended 30 June 2024
Share
Share
Other
Profit
Total
capital
premium
reserves
and loss
account
£
£
£
£
£
At 1 July 2022
40,000
-
-
63,697
103,697
Profit for the financial year
428,209
428,209
Deficit on pre-acquisition reserves
(34,098)
(34,098)
Other comprehensive income for the financial year
-
-
(34,098)
-
(34,098)
Total comprehensive income for the financial year
-
-
(34,098)
428,209
394,111
At 30 June 2023
40,000
-
(34,098)
491,906
497,808
At 1 July 2023
40,000
-
(34,098)
491,906
497,808
Loss for the financial year
(238,793)
(238,793)
At 30 June 2024
40,000
-
(34,098)
253,113
259,015
Iona Management Services Limited
Statement of Changes in Equity
for the year ended 30 June 2024
Share
Share
Other
Profit
Total
capital
premium
reserves
and loss
account
£
£
£
£
£
At 1 July 2022
40,000
-
-
63,697
103,697
Profit for the financial year
539,762
539,762
At 30 June 2023
40,000
-
-
603,459
643,459
At 1 July 2023
40,000
-
-
603,459
643,459
Loss for the financial year
(208,032)
(208,032)
At 30 June 2024
40,000
-
-
395,427
435,427
1
Iona Management Services Limited
Consolidated Statement of Cash Flows
for the year ended 30 June 2024
Notes
2024
2023
£
£
Operating activities
(Loss)/profit for the financial year
(238,793)
428,209
Adjustments for:
Loss/(profit) on sale of fixed assets
5,467
(3,673)
Interest receivable
(12,156)
-
Interest payable
20,812
(3,882)
Tax on (loss)/profit on ordinary activities
(4,365)
123,476
Depreciation
16,613
12,795
Amortisation of goodwill
39,067
58,600
Increase in stocks
(22,235)
(61,458)
Decrease/(increase) in debtors
833,751
(944,219)
(Decrease)/increase in creditors
(28,541)
968,653
Pre-acquisition reserves
-
(34,098)
609,620
544,403
Interest received
12,156
-
Interest paid
(20,812)
4,461
Corporation tax paid
(117,867)
(46,221)
Cash generated by operating activities
483,097
502,643
Investing activities
Payments to acquire intangible fixed assets
-
(195,335)
Payments to acquire tangible fixed assets
(13,446)
(55,406)
Proceeds from sale of tangible fixed assets
25,210
3,673
Cash generated by/(used in) investing activities
11,764
(247,068)
Financing activities
Repayment of loans
(10,000)
(47,500)
Capital element of finance lease payments
(79,935)
-
Cash used in financing activities
(89,935)
(47,500)
Net cash generated
Cash generated by operating activities
483,097
502,643
Cash generated by/(used in) investing activities
11,764
(247,068)
Cash used in financing activities
(89,935)
(47,500)
Net cash generated
404,926
208,075
Cash and cash equivalents at 1 July
638,823
430,748
Cash and cash equivalents at 30 June
1,043,749
638,823
Cash and cash equivalents comprise:
Cash at bank
1,043,749
638,823
1
Iona Management Services Limited
Notes to the Consolidated Accounts
for the year ended 30 June 2024
1
Summary of significant accounting policies
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 accounts are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Basis of consolidation
The consolidated financial statements incorporate those of Iona Management Services Limited 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).
All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Going concern
At the time of approving the financial statements, the directors have reasonable expectation that the company has adequate resources to continue trading for the foreseeable future, with the support from the wider Group if necessary.
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
2
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
Intangible fixed assets
Goodwill represents the excess of the cost of acquisition of unincorporated businesses 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 has been amortised on a systematic basis over its expected life, which is 5 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit
Tangible fixed assets
Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
Plant and machinery
50% on cost
Fixtures, fittings, tools and equipment
50% on cost
Computers
33% on cost
Motor vehicles
25% on cost
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
3
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition
Stocks held for distribution at no or nominal consideration are measured at the lower of replacement cost and cost, adjusted where applicable for any loss of service potential
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
Debtors
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
4
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 company after deducting all of its liabilities.
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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Equity instruments
Equity instruments issued by the company 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 company.
Taxation
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
5
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.
Foreign currency translation
Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction.
At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
Leased assets
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
Pensions
Contributions to defined contribution plans are expensed in the period to which they relate.
Post Balance Sheet Event
On 1 July 2024, Iona Management Services Caledonia ceased to trade. The trade and assets of the company have been ‘hived up' to the parent company Iona Management Services, and contracts novated.
During 2023 Iona Capital embarked on “Project Volta”, a transaction to raise new capital for investment in anaerobic digestion projects, entailing the acquisition by the funder of a number of existing Iona-managed AD assets, as well as all or part of the issued share capital of Iona Capital and Iona Management Services Ltd. The transaction completed on 23rd December 2024, resulting in the purchase of Iona Capital by Kanadevia Inova AG, and the associated purchase by Iona Capital of the remaining 75% shares in Iona Management Services it didn't already own, as well as 11 of the AD assets managed by Iona.
6
2
Analysis of turnover
2024
2023
£
£
Sale of Parts
1,598,320
1,608,224
Services rendered
10,985,723
10,820,145
12,584,043
12,428,369
By geographical market:
UK
12,584,043
12,428,369
3
Operating profit
2024
2023
£
£
This is stated after charging:
Depreciation of owned fixed assets
10,849
12,497
Depreciation of assets held under finance leases and hire purchase contracts
993
3,229
Amortisation of goodwill
39,067
39,067
Operating lease rentals - plant and machinery
341,141
211,975
Operating lease rentals - land and buildings
209,911
81,001
Auditors' remuneration for audit services
7,980
7,260
Auditors' remuneration for other services
1,410
1,360
Carrying amount of stock sold
7,897,766
8,017,885
4
Staff costs
2024
2023
£
£
Wages and salaries
2,372,764
2,111,767
Social security costs
238,766
228,425
Other pension costs
66,925
64,335
2,678,455
2,404,527
Average number of employees during the year
Number
Number
Administration
14
14
Development
30
32
44
46
5
Interest payable
2024
2023
£
£
Bank loans and overdrafts
20,812
(3,882)
7
6
Taxation
2024
2023
£
£
Analysis of charge in period
Current tax:
UK corporation tax on profits of the period
(8,802)
123,110
Deferred tax:
Origination and reversal of timing differences
4,437
366
Tax on (loss)/profit on ordinary activities
(4,365)
123,476
Factors affecting tax charge for period
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
2024
2023
£
£
(Loss)/profit on ordinary activities before tax
(243,158)
551,685
Standard rate of corporation tax in the UK
19%
19%
£
£
Profit on ordinary activities multiplied by the standard rate of corporation tax
(46,200)
104,820
Effects of:
Expenses not deductible for tax purposes
(3,532)
18,290
Utilisation of tax losses
40,930
-
Current tax charge for period
(8,802)
123,110
7
Intangible fixed assets
£
£
Goodwill:
Cost
At 1 July 2023
215,335
215,335
At 30 June 2024
215,335
215,335
Amortisation
At 1 July 2023
78,600
78,600
Provided during the year
39,067
39,067
At 30 June 2024
117,667
117,667
Carrying amount
At 30 June 2024
97,668
97,668
At 30 June 2023
136,735
136,735
Goodwill is being written off in equal annual instalments over its estimated economic life of 5 years.
8
8
Tangible fixed assets
Group
Plant and machinery
Fixtures, fittings, tools and equipment
Office Equipment
Motor Vehicles
Total
At cost
At cost
At cost
At cost
£
£
£
Cost or valuation
At 1 July 2023
65,901
15,789
61,498
47,762
190,950
Additions
7,960
-
2,801
80,570
91,331
Disposals
-
-
-
(38,750)
(38,750)
At 30 June 2024
73,861
15,789
64,299
89,582
243,531
Depreciation
At 1 July 2023
59,791
15,789
58,473
12,241
86,503
Charge for the year
4,771
-
2,777
9,065
11,842
On disposals
-
-
-
(8,072)
(8,072)
At 30 June 2024
64,562
15,789
61,250
13,234
154,835
Carrying amount
At 30 June 2024
9,299
-
3,049
76,348
88,696
At 30 June 2023
6,110
-
3,025
35,521
44,656
Tangible fixed assets
Company
Plant and machinery
Fixtures, fittings, tools and equipment
Office Equipment
Motor Vehicles
Total
At cost
At cost
At cost
At cost
£
£
£
Cost or valuation
At 1 July 2023
61,664
15,789
56,180
47,762
181,395
Additions
7,490
1,795
80,570
89,855
Disposals
-
(38,750)
(38,750)
At 30 June 2024
69,154
15,789
57,975
89,582
232,500
Depreciation
At 1 July 2023
59,202
15,789
54,664
12,241
141,896
Charge for the year
3,254
1,555
9,065
13,874
On disposals
-
(8,073)
(8,073)
At 30 June 2024
62,456
15,789
56,219
13,233
147,697
Carrying amount
At 30 June 2024
6,698
-
1,756
76,349
84,803
At 30 June 2023
2,462
-
1,516
35,521
39,499
9
9
Stocks
Company
Group
2024
2023
2024
2023
£
£
Finished goods and goods for resale
132,080
109,845
132,080
109,845
10
Debtors
Company
Group
2024
2023
2024
2023
£
£
£
£
Trade debtors
4,844,859
5,487,507
4,721,702
5,415,216
Amounts owed by group undertaking
165,000
115,000
-
-
Deferred tax asset (see note 15)
-
3,539
-
3,539
Other debtors
102,645
55,379
102,645
55,379
Prepayments
83,120
72,404
85,837
75,404
Accrued Income
379,345
574,996
379,345
577,281
5,574,969
6,308,825
5,289,529
6,126,819
11
Creditors: amounts falling due within one year
Company
Group
2024
2023
2024
2023
£
£
£
£
Bank loans
10,056
9,808
10,056
9,808
Obligations under finance lease and hire purchase contracts
66,706
59,012
66,706
59,012
Trade creditors
1,255,060
1,459,689
1,281,167
1,482,166
Amounts owed to controlling entity
4,006,927
4,006,927
4,006,927
4,006,927
Corporation tax
-
126,238
-
126,669
Other taxes and social security costs
278,874
304,740
300,311
336,027
Other creditors
14,425
15,186
14,385
112,489
Accruals
400,504
185,250
404,280
200,040
Deferred income
126,273
72,527
126,273
72,527
6,158,825
6,239,377
6,210,105
6,405,665
The intercompany loan with Iona Capital has been reclassified as a current liability, under the rules of FRS102. The loan has no set repayment terms, therefore as a result is deemed as repayable on demand. The loan is unlikely to be recalled within the next 12 months
10
12
Creditors: amounts falling due after one year
Company
Group
2024
2023
2024
2023
£
£
£
£
Bank loans
18,023
28,271
18,023
28,271
Obligations under finance lease and hire purchase contracts
115,388
125,134
115,388
125,134
Deferred income
-
-
48,293
-
133,411
153,405
181,704
153,405
13
Loans
Company & Group
2024
2023
£
£
Analysis of maturity of debt:
Within one year or on demand
4,016,983
4,016,735
Between one and two years
10,310
10,056
Between two and five years
7,893
18,215
4,035,186
4,045,006
14
Obligations under finance leases and hire purchase
Company & Group
contracts
2024
2023
£
£
Amounts payable:
Within one year
66,706
59,012
Within two to five years
115,389
125,134
182,095
184,146
15
Deferred taxation
2024
2023
£
£
Accelerated capital allowances
898
(3,539)
2024
2023
£
£
At 1 July
(3,539)
(3,905)
Charged to the profit and loss account
4,437
366
At 30 June
898
(3,539)
11
16
Share capital
Nominal
2024
2024
2023
value
Number
£
£
Allotted, called up and fully paid:
Ordinary shares
£1 each
40,000
40,000
40,000
17
Other reserves
2024
2023
Pre-acquisition reserve
£
£
At 1 July
(34,098)
-
Iona Management Services (Caledonia) Ltd reserves on acquisition
-
(34,098)
At 30 June
(34,098)
(34,098)
18
Profit and loss account
2024
2023
£
£
At 1 July
491,906
63,697
(Loss)/profit for the financial year
(238,793)
428,209
At 30 June
253,113
491,906
19
Other financial commitments
Total future minimum lease payments under non-cancellable operating leases:
Land and buildings
Land and buildings
Other
Other
2024
2023
2024
2023
£
£
£
£
Falling due:
within one year
44,955
37,448
177,293
89,957
within two to five years
164,955
43,553
163,848
122,019
209,910
81,001
341,141
211,976
12
20
Analysis of changes in net funds
1 July 2023
Cash flows
New finance leases
30 June 2024
£
£
£
£
Cash at bank and in hand
638,823
404,926
-
1,043,749
Borrowings excluding overdrafts
(38,079)
10,000
-
(28,079)
Obligations under finance leases
(184,146)
79,935
(77,885)
(182,096)
416,598
494,861
(77,885)
-
833,574
21
Related party transactions
2024
2023
£
£
Amounts due from related parties
Entities with common control or common significant influence
4,955,206
5,356,539
At the year end the group owes £4,006,927 (2023: £4,006,927) on loans received from entities controlled by Iona Capital Limited. The loans are interest free
22
Controlling party
The immediate parent is IMS Holdco Limited
The ultimate controlling party at the year end was Iona EI (General Partner) 3 LLP.
On 23rd December 2024, Kanadevia Inova AG became the ultimate controlling party following the acquisition of Iona Capital Limited and all associated companies
23
Presentation currency
The financial statements are presented in Sterling.
24
Legal form of entity and country of incorporation
Iona Management Services Limited is a private company limited by shares and incorporated in England.
25
Principal place of business
The address of the company's principal place of business and registered office is:
Marlborough House,
Westminster Place, Nether Poppleton,
York
North Yorkshire
YO26 6RW
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