Company registration number 09614875 (England and Wales)
I&C LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
I&C LIMITED
COMPANY INFORMATION
Directors
Kristen Branford
Matthew O'Sullivan
John Walsh
Mark Walton
Company number
09614875
Registered office
Cliff Road Dock Estate
Cliff Road
Cliff Quay
Ipswich
IP3 0AX
Auditor
Ensors Accountants LLP
Connexions
159 Princes Street
Ipswich
IP1 1QJ
I&C LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Notes to the financial statements
11 - 24
I&C LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 1 -
The directors present the strategic report for the year ended 31 July 2024.
Review of the business
The directors are reporting a turnover of £14.7m for the year to 31st July 2024 (2023: £28.3m).
The business has seen a marked growth in turnover for the last 2 years. Whilst turnover is down on the previous year, this can be explained by the slippage of major projects.
The requirement for marine based construction remains strong. This is supported by the investment in offshore renewable energy and the government’s drive for growth in infrastructure projects and the need for flood defences to combat the impact of global warming.
The company continues to focus on the three pillars of its core offering, namely marine engineering, construction delivery and barge management, thereby positioning itself ahead of its contemporaries in the sector. In addition, the company has fabrication facilities which combined with the above, makes it unique in the sector. It is pleased to report its continued exemplary health & safety record, reporting another year of zero reportable incidents.
Principal risks and uncertainties
Customers
The business is focussed on working with blue chip clients who operate with the same ethos as Red7Marine, conducting its business with the highest level of safety and professionalism. New and existing customers are subject to periodic stringent credit reviews to minimise exposure to credit risk.
Employees
The company believes in remunerating its staff fairly for their work, which includes working to the highest levels of safety, taking on responsibility and working collaboratively. The Board is keen to minimise staff turnover and has created an open, inclusive culture providing support, training, and a safe workplace to attract, develop and retain good people.
Financial risk
Most of the company's receipts and payments are UK based, minimising the risk of foreign currency exchange losses.
Development and performance
The company is reporting another year of strong trading. The pre-tax profit is £1.15M (2023: £3.78M). The business continues to generate a core income from the hire of its Jack-Up barge fleet whilst growing its offering on marine based construction projects. While there were no major individual projects in 2024 the business has secured several projects for the coming year and anticipates turnover returning to the levels achieved in 2023.
The improved trading has allowed the company to generate a positive cash inflow. This has been used to reduce 3rd party debt from £6.9M at the end of 2023, to £4.7M at the end of 2024. Additionally, the company continues to adapt its fleet and asset base to meet the current demands of the market.
Having acquired a 1000t Jack-Up barge in 2021, this barge has now been upgraded with accommodation units, allowing it to offer live aboard options whist working offshore. This expands the markets in which the barge can be offered for hire. The business has also acquired its own crane, post year end, to support its project activities in house.
This investment demonstrates the belief of the directors & shareholders in the long-term future of the company.
The company has also maintained continuity within its business development team, and they continue to identify future hire and project opportunities.
Key performance indicators
The key performance indicators of turnover and operating profit are discussed above.
I&C LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 2 -
.............................................
Kristen Branford
Director
28 March 2025
I&C LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 July 2024.
Principal activities
The principal activity of the company continued to be that of the hire and supply of plant and machinery relating to marine construction and engineering.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Nicholas Offord
(Resigned 8 April 2024)
Kristen Branford
Matthew O'Sullivan
John Walsh
Mark Walton
Auditor
Ensors Accountants LLP were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
..............................................
Kristen Branford
Director
28 March 2025
I&C LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 JULY 2024
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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.
I&C LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF I&C LIMITED
- 5 -
Opinion
We have audited the financial statements of I&C Limited (the 'company') for the year ended 31 July 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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 company's affairs as at 31 July 2024 and of its profit 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.
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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
I&C LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF I&C LIMITED (CONTINUED)
- 6 -
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 and 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, 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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption in preparing the directors' report.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
I&C LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF I&C LIMITED (CONTINUED)
- 7 -
Our audit was designed to include tests of detail together with an assessment of the control environment to enable us to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement due to fraud. Through discussion with directors and management, and from our own knowledge of and experience of the sector in which the company operates we identified the following areas where we consider there is a higher risk of fraud: revenue recognition, and management override of systems and control. We note that the client has various internal controls in place to reduce the susceptibility of the company to material misstatement due to fraud.
We performed audit procedures to address the risks noted above, which included the following:
Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims
Testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions
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 we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect that those that arise from error as they may involve deliberate concealment of collusion. It is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
Barry Gostling (Senior Statutory Auditor)
For and on behalf of Ensors Accountants LLP, Statutory Auditor
Chartered Accountants
Connexions
159 Princes Street
Ipswich
IP1 1QJ
31 March 2025
I&C LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
14,685,949
28,253,034
Cost of sales
(9,171,485)
(20,452,030)
Gross profit
5,514,464
7,801,004
Administrative expenses
(3,789,557)
(3,087,671)
Operating profit
5
1,724,907
4,713,333
Interest receivable and similar income
9
6,544
165
Interest payable and similar expenses
10
(583,721)
(933,433)
Profit before taxation
1,147,730
3,780,065
Tax on profit
11
169,178
(1,148,528)
Profit for the financial year
1,316,908
2,631,537
Other comprehensive income
Revaluation of tangible fixed assets
3,480,943
453,599
Tax relating to other comprehensive income
(691,756)
84,154
Total comprehensive income for the year
4,106,095
3,169,290
The income statement has been prepared on the basis that all operations are continuing operations.
I&C LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT 31 JULY 2024
31 July 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
14,052,754
10,873,098
Current assets
Stocks
13
104,179
73,839
Debtors
14
4,440,748
6,530,988
Cash at bank and in hand
162,807
871,756
4,707,734
7,476,583
Creditors: amounts falling due within one year
15
(4,355,966)
(6,426,689)
Net current assets
351,768
1,049,894
Total assets less current liabilities
14,404,522
11,922,992
Creditors: amounts falling due after more than one year
16
(4,302,857)
(6,450,000)
Provisions for liabilities
Deferred tax liability
18
2,756,420
2,233,842
(2,756,420)
(2,233,842)
Net assets
7,345,245
3,239,150
Capital and reserves
Called up share capital
20
1
1
Revaluation reserve
5,331,216
3,255,941
Profit and loss reserves
2,014,028
(16,792)
Total equity
7,345,245
3,239,150
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
..............................................
Kristen Branford
Director
Company registration number 09614875 (England and Wales)
I&C LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2024
- 10 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 August 2022
1
4,385,829
(4,315,970)
69,860
Year ended 31 July 2023:
Profit
-
-
2,631,537
2,631,537
Other comprehensive income:
Revaluation of tangible fixed assets
-
453,599
-
453,599
Tax relating to other comprehensive income
-
84,154
84,154
Total comprehensive income
-
537,753
2,631,537
3,169,290
Transfers
-
(1,667,641)
1,667,641
-
Balance at 31 July 2023
1
3,255,941
(16,792)
3,239,150
Year ended 31 July 2024:
Profit
-
-
1,316,908
1,316,908
Other comprehensive income:
Revaluation of tangible fixed assets
-
3,480,943
-
3,480,943
Tax relating to other comprehensive income
-
(691,756)
(691,756)
Total comprehensive income
-
2,789,187
1,316,908
4,106,095
Transfers
-
(713,912)
713,912
-
Balance at 31 July 2024
1
5,331,216
2,014,028
7,345,245
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2024
- 11 -
1
Accounting policies
Company information
I&C Limited is a private company limited by shares incorporated in England and Wales. The registered office is Cliff Road Dock Estate, Cliff Road, Cliff Quay, Ipswich, IP3 0AX.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of plant and equipment and vessels. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’ Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’ Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’ Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of I&C Group Holdings Limited. These consolidated financial statements are available from its registered office, Red7marine Cliff Road Dock Estate, Cliff Road, Cliff Quay, Ipswich, Suffolk, United Kingdom, IP3 0AX.
1.2
Going concern
The business has had another year of strong trading, building on the strategy of the previous year to expand our offering into marine construction projects.true
The business continues to seek development & growth in both its hire activities and associated marine based projects and is experiencing significant growth in the renewable energy sector. The company has already secured a strong order book for the coming year and anticipates turnover well in excess of last year. The business continues to invest in its engineering capability and marine fleet to meet market demands.
Having undertaken a detailed forecast and cashflow review of coming 12 months the directors are satisfied the business is on a firm footing for trading over the next 12 months.
On this basis of the above the accounts have been prepared on a going concern basis.
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable , excluding discounts, rebates, value added tax and other sales taxes.
Revenue from a contract to provide services is recognised in the period in which the services are provided when the amount of revenue can be measured reliably and it is probable that the company will receive the consideration due under the contract.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to that company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
20% straight line
Plant and equipment
20% straight line
Fixtures and fittings
20% straight line
Office equipment
20% straight line
Motor vehicles
20% straight line
Vessels
2% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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).
Recoverable amount is the higher of fair value less costs to sell and value in use.
If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset 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 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 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.
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 13 -
1.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
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 statement of financial position 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.
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is 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. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.9
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.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 15 -
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.14
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 16 -
2
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 amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements have had the most significant effect on amounts recognised in the financial statements.
Revaluation of assets
The company carries its vessels and plant and equipment at valuation and the directors have engaged an independent valuation specialist to determine the fair value of these assets. The vessels and plant and equipment are valued on an open market value basis in accordance with the requirements of FRS 102.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Marine construction and engineering
14,685,949
28,253,034
2024
2023
£
£
Other revenue
Interest income
6,544
165
4
Exceptional item
2024
2023
£
£
Expenditure
Restructuring costs
45,017
-
The group of which this company is a part of undertook a restructure during the year and these costs are those identified as exceptional in nature in connection to the restructuring.
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 17 -
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses/(gains)
25,926
(6,313)
Fees payable to the company's auditor for the audit of the company's financial statements
15,650
14,900
Depreciation of owned tangible fixed assets
380,323
292,613
Profit on disposal of tangible fixed assets
(14,293)
(44,163)
Operating lease charges
367,420
288,560
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,650
14,900
7
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Management, administration and operations
53
54
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,958,984
3,029,140
Social security costs
376,534
356,927
Pension costs
133,737
119,852
3,469,255
3,505,919
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
507,787
479,838
Company pension contributions to defined contribution schemes
40,400
44,848
548,187
524,686
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
8
Directors' remuneration
(Continued)
- 18 -
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 3).
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
158,533
216,437
Company pension contributions to defined contribution schemes
15,853
28,716
9
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
6,544
165
10
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
583,721
833,328
Interest payable to group undertakings
77,117
Other interest
22,988
583,721
933,433
11
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(169,178)
1,148,528
In March 2021, the UK government announced a change in the main rate of Corporation Tax 19% to 25% with effect from 1 April 2023. The majority of the deferred tax liability recognised in these financial statements is expected to unwind after 1 April 2023 and therefore the proposed change to the Corporation Tax rate has been detailed below.
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
11
Taxation
(Continued)
- 19 -
The actual (credit)/charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,147,730
3,780,065
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 21.01%)
286,933
794,192
Tax effect of expenses that are not deductible in determining taxable profit
19,835
9,106
Effect of change in corporation tax rate
313,534
Deferred tax adjustments in respect of prior years
(655,828)
Fixed asset differences
161,638
90,713
Other adjustments, reliefs and transfers
(143,171)
Deferred tax recognised in Other Comprehensive Income
18,244
84,154
Taxation (credit)/charge for the year
(169,178)
1,148,528
In addition to the amount (credited)/charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:
2024
2023
£
£
Deferred tax arising on:
Revaluation of assets net of carried forward losses
691,756
(84,154)
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 20 -
12
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Office equipment
Motor vehicles
Vessels
Total
£
£
£
£
£
£
£
Cost or valuation
At 1 August 2023
533,828
5,697
119,196
37,325
10,365,090
11,061,136
Additions
183,450
335,326
16,217
606,584
1,141,577
Disposals
(21,586)
(5,000)
(1,060,000)
(1,086,586)
Revaluation
(144,646)
3,186,124
3,041,478
At 31 July 2024
183,450
724,508
5,697
113,827
32,325
13,097,798
14,157,605
Depreciation and impairment
At 1 August 2023
106,806
5,643
57,908
17,681
188,038
Depreciation charged in the year
25,390
130,872
54
16,806
3,498
203,703
380,323
Eliminated in respect of disposals
(20,879)
(1,250)
(1,917)
(24,046)
Revaluation
(237,678)
(201,786)
(439,464)
At 31 July 2024
25,390
5,697
53,835
19,929
104,851
Carrying amount
At 31 July 2024
158,060
724,508
59,992
12,396
13,097,798
14,052,754
At 31 July 2023
427,022
54
61,288
19,644
10,365,090
10,873,098
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 21 -
The Company has adopted a policy of valuing its vessels and plant and machinery assets at fair value. Vessels and plant and equipment have been valued by the directors at the year end by reference to the most recent external valuation with an effective date of 6 December 2023.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Vessels, plant and equipment
2024
2023
£
£
Cost
7,582,049
7,172,139
Accumulated depreciation
(868,022)
(721,281)
Carrying value
6,714,027
6,450,858
13
Stocks
2024
2023
£
£
Raw materials and consumables
104,179
73,839
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,370,429
5,208,717
Corporation tax recoverable
255,683
Amounts owed by group undertakings
1,144,870
Other debtors
250,619
Prepayments and accrued income
674,830
1,066,588
4,440,748
6,530,988
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other borrowings
17
420,651
407,143
Trade creditors
1,544,602
1,915,674
Amounts owed to group undertakings
542,087
1,142,708
Taxation and social security
119,040
1,055,719
Other creditors
3,783
92,847
Accruals and deferred income
1,725,803
1,812,598
4,355,966
6,426,689
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 22 -
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Other borrowings
17
4,302,857
6,450,000
Included in other creditors are £3,760,000 (2023: £5,500,000) of loans secured against plant and machinery.
17
Loans and overdrafts
2024
2023
£
£
Other loans
4,723,508
6,857,143
Payable within one year
420,651
407,143
Payable after one year
4,302,857
6,450,000
The Revolving P&M Loan Facility is secured against the plant and machinery it relates to.
The Receivables Finance Facility is secured against the trade receivables it relates to.
The term of the Revolving P&M Loan Facility is 3 years, with an interest rate of 5% over LIBOR. The facility is repayable at the end of the 3 year term.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Fixed asset timing differences
3,422,980
2,672,120
Losses and other deductions
(666,560)
(438,278)
2,756,420
2,233,842
2024
Movements in the year:
£
Liability at 1 August 2023
2,233,842
Credit to profit or loss
(169,178)
Charge to other comprehensive income
691,756
Liability at 31 July 2024
2,756,420
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
18
Deferred taxation
(Continued)
- 23 -
The deferred tax liability set out above relates to accelerated capital allowances and brought forward losses. The deferred tax liability is expected to reverse in line with the depreciation of fixed assets.
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
133,737
119,852
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
105,947
79,535
Between two and five years
97,520
57,646
203,467
137,181
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
1,260,000
-
I&C LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2024
- 24 -
23
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Other related parties
41,186
29,659
45,108
34,105
Interest payable
Management charges
2024
2023
2024
2023
£
£
£
£
Entities with control, joint control or significant influence over the company
-
77,117
-
-
Key management personnel
-
4,967
-
-
Other related parties
-
-
121,000
120,000
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
11,000
Other related parties
12,000
12,308
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
3,962
-
24
Ultimate controlling party
The immediate parent is I&C Holdings Limited, a company registered and incorporated in England and Wales.
The ultimate parent company is R7M Group Holdings Limited, a company registered and incorporated in England and Wales. In the opinion of the directors the ultimate controlling party is Mr J Walsh by virtue of his majority shareholding in R7M Group Holdings Limited.
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