Registration number:
Ibsecad Holdings Limited
for the Year Ended 30 April 2024
Ibsecad Holdings Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Ibsecad Holdings Limited
Company Information
Directors |
D A Robinson M D Robinson |
Company secretary |
M D Robinson |
Registered office |
|
Auditors |
|
Ibsecad Holdings Limited
Strategic Report for the Year Ended 30 April 2024
The directors present their strategic report for the year ended 30 April 2024.
Principal activity
The principal activity of the group is that of providing design and draughting services for engineering, construction, and other related industries.
Fair review of the business
The financial year 2023-24 saw another strong year of growth despite the uncertainty surrounding various conflicts and political tensions and the impact that has had on inflation. With rising inflation, we predicted a more cautious industry and prepared for a potential slowdown.
Despite this, the construction industry appears to be remaining bullish. With a returning trend of office based working post-pandemic, there is a lot of commercial project activity and with inflation falling to more acceptable levels, stability and client confidence is returning.
The group continues to perform strongly with turnover of £8,001,438 (2023: £7,255,483) which equates to an increase of 10% along with another solid year of operating profit of £1,679,060 (2023: £870,493).
At the year end, the group had net assets of £5,832,418 compared to £5,091,206 at 30 April 2023.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2024 |
2023 |
Turnover |
£ |
8,001,438 |
7,255,483 |
Operating profit |
£ |
1,679,060 |
870,493 |
Profit for the year |
£ |
1,475,649 |
708,475 |
Principal risks and uncertainties
The group’s operations expose it to minimal risks from funding, liquidity and credit. The group manages all these risks by financing its operations through retained profits.
As mentioned in last year’s report, in October 2023 one of our largest clients went into administration which did cause a degree of turmoil and concern at the time. We managed to recover the position significantly through re-engaging with the replacement contractors or directly to the main contractors on the various schemes.
Following a review of our protocols in the preceding months, we have now adopted a far tougher stance when a client appears to be in financial distress so as to minimise our exposure.
Future developments
Last year we implemented a detailed 5 year expansion plan based on balanced growth and an increase in customer base both in the UK and US markets.
Approved and authorised by the
......................................... |
Ibsecad Holdings Limited
Directors' Report for the Year Ended 30 April 2024
The directors present their report and the for the year ended 30 April 2024.
Director of the group
The director who held office during the year was as follows:
The following director was appointed after the year end:
Dividends
Dividends of £750,000 were paid in the year (2023: £500,000).
Matters covered in the Strategic Report
As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.
Disclosure of information to the auditor
Each director has taken steps that they ought to have been taken as a director in order to make themselves themselves aware of any relevant audit information and to establish that the group's auditor is aware of that information. The directors confirm that there is no relevant information that they know they know of and of which they know the auditor is unaware.
Approved and authorised by the
......................................... |
Ibsecad Holdings Limited
Statement of Directors' Responsibilities
The director acknowledges their directors acknowledge their responsibilities 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 they are satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting 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; and |
• |
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 group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Ibsecad Holdings Limited
Independent Auditor's Report to the Members of Ibsecad Holdings Limited
Opinion
We have audited the financial statements of Ibsecad Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion 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 April 2024 and of the group's 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. |
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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
Other information
The director is responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Ibsecad Holdings Limited
Independent Auditor's Report to the Members of Ibsecad Holdings Limited
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our 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 where 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 director's remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 4, 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 group's and 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 group or parent company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
Ibsecad Holdings Limited
Independent Auditor's Report to the Members of Ibsecad Holdings Limited
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
• the Senior Statutory Auditor ensured that the audit team collectively had the appropriate competence, skills, and capabilities to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the group through discussions with the director and other management, and from our commercial knowledge and experience of the relevant industry;
• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company and the group, including the Companies Act 2006, taxation legislation, and other legislation;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence where relevant; and
• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company and the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls we:
• performed analytical procedures to identify any unusual or unexpected relationships;
• tested journal entries recorded on the company and the group's finance system to identify unusual transactions that may indicate override of controls;
• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and
•reviewed the application of accounting policies with focus on those heightened estimation uncertainty.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation;
• reading the minutes of meetings of those charged with governance;
• enquiring of management as to actual and potential litigation and claims; and
• reviewing correspondence with HM Revenue & Customs and relevant regulators.
There are inherent limitations in our audit procedures described above. The more remote that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Ibsecad Holdings Limited
Independent Auditor's Report to the Members of Ibsecad Holdings Limited
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.
......................................
For and on behalf of
Albert Place
London
N3 1QA
Ibsecad Holdings Limited
Consolidated Profit and Loss Account for the Year Ended 30 April 2024
Note |
2024 |
2023 |
|
Turnover |
|
|
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
12,176 |
(5,866) |
||
Profit before tax |
|
|
|
Tax on profit |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
Ibsecad Holdings Limited
Consolidated Statement of Comprehensive Income for the Year Ended 30 April 2024
2024 |
2023 |
|
Profit for the year |
|
|
Foreign currency translation gains/(losses) |
|
( |
Total comprehensive income for the year |
|
|
Total comprehensive income attributable to: |
||
Owners of the company |
|
|
Ibsecad Holdings Limited
(Registration number: 04495461)
Consolidated Balance Sheet as at 30 April 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
100 |
100 |
|
Profit and loss account |
5,832,318 |
5,091,106 |
|
Equity attributable to owners of the company |
5,832,418 |
5,091,206 |
|
Shareholders' funds |
5,832,418 |
5,091,206 |
Approved and authorised by the
......................................... |
Ibsecad Holdings Limited
(Registration number: 04495461)
Balance Sheet as at 30 April 2024
Note |
2024 |
2023 |
|
Fixed assets |
|||
Investments |
|
|
|
Current assets |
|||
Debtors |
- |
|
|
Creditors: Amounts falling due within one year |
( |
( |
|
Net current (liabilities)/assets |
( |
|
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
100 |
100 |
|
Profit and loss account |
75,718 |
97,768 |
|
Shareholders' funds |
75,818 |
97,868 |
The company made a profit after tax for the financial year of £727,950 (2023 - profit of £500,000).
Approved and authorised by the
......................................... |
Ibsecad Holdings Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 April 2024
Equity attributable to the parent company
Share capital |
Profit and loss account |
Total |
Total equity |
|
At 1 May 2023 |
|
|
|
|
Profit for the year |
- |
|
|
|
Other comprehensive income |
- |
|
|
|
Total comprehensive income |
- |
|
|
|
Dividends |
- |
( |
( |
( |
At 30 April 2024 |
|
|
|
|
Share capital |
Profit and loss account |
Total |
Total equity |
|
At 1 May 2022 |
|
|
|
|
Profit for the year |
- |
|
|
|
Other comprehensive income |
- |
( |
( |
( |
Total comprehensive income |
- |
|
|
|
Dividends |
- |
( |
( |
( |
At 30 April 2023 |
100 |
5,091,106 |
5,091,206 |
5,091,206 |
Ibsecad Holdings Limited
Statement of Changes in Equity for the Year Ended 30 April 2024
Share capital |
Profit and loss account |
Total |
|
At 1 May 2023 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 April 2024 |
|
|
|
Share capital |
Profit and loss account |
Total |
|
At 1 May 2022 |
|
|
|
Profit for the year |
- |
|
|
Dividends |
- |
( |
( |
At 30 April 2023 |
100 |
97,768 |
97,868 |
Ibsecad Holdings Limited
Consolidated Statement of Cash Flows for the Year Ended 30 April 2024
Note |
2024 |
2023 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance income |
( |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
Foreign exchange gains/losses |
|
- |
|
Impairment of related party loan |
(101,686) |
112,000 |
|
|
|
||
Working capital adjustments |
|||
Decrease/(increase) in debtors |
|
( |
|
(Decrease)/increase in creditors |
( |
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
|
|
|
Acquisitions of tangible assets |
( |
( |
|
Acquisition of intangible assets |
( |
( |
|
Loan to joint venture |
(93,244) |
- |
|
Proceeds from repayment of loan to joint venture |
245,000 |
29,040 |
|
Net cash flows from investing activities |
|
|
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowings |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net increase in cash and cash equivalents |
|
|
|
Cash and cash equivalents at 1 May |
|
|
|
Effect of exchange rate fluctuations on cash held |
( |
( |
|
Cash and cash equivalents at 30 April |
4,206,481 |
2,932,553 |
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
General information |
The company is a private company limited by share capital, incorporated in England and Wales..
The address of its registered office and principal place of business is:
England
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are presented in Sterling (£), which is also the group and company's functional currency. Monetary amounts in these financial statements are rounded to the nearest £.
Summary of disclosure exemptions
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements.
The company is a qualifying entity for the purpose of FRS 102, being a member of a group where the parent of that group prepared 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 and loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:
• Section 3 Financial Statement Presentation paragraph 3.17(d) (inclusion of statement of cash flows);
• Section 7 Statement of Cash Flows (inclusion of statement of cash flows);
• Section 11 Financial Instruments paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c) (disclosures relating to financial instruments);
• Section 33 Related Party Disclosures paragraph 33.7 (disclosures of key management personnel compensation).
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 April 2024.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the consolidated Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
Having considered the group’s latest results and cash reserves, and after making enquiries, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence and meet its liabilities as they fall due for the foreseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly they continue to adopt the going concern basis in preparing the financial statements.
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group 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. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
• the amount of revenue can be measured reliably;
• it is probable that the group will receive the consideration due under the contract;
• the stage of completion of the contract at the end of the reporting period can be measured reliably; and
• the costs incurred and the costs to complete the contract can be measured reliably.
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Foreign currency transactions and balances
Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.
The results of overseas operations are translated into Sterling at rates approximating to those ruling when the transactions took place. All assets and liabilities are translated at the rate ruling at the reporting date. Exchange differences arising on translating the opening net assets at opening rate and the results of overseas operations at actual rate are recognised in other comprehensive income.
Tax
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Fixtures, fittings & equipment |
33.33% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Intangible assets
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Intangible asset |
10% Straight line |
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Investments
In the company balance sheet, investments in subsidiaries and joint ventures are measured at cost less accumulated impairment.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the group’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Judgements in applying accounting policies and key sources of estimation uncertainty
In the application of the group's accounting policies, the director is 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.
Due to the simplicity of the group's transactions, the director considers there to be no critical judgements, estimates or assumptions in the preparation of these financial statements.
Turnover |
The analysis of the group's turnover for the year from continuing operations is as follows:
2024 |
2023 |
|
Rendering of services |
|
|
Analysis of turnover by country of destination:
2024 |
2023 |
|
UK |
6,005,375 |
5,098,052 |
USA |
1,996,063 |
2,157,431 |
8,001,438 |
7,255,483 |
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2024 |
2023 |
|
Government grants |
- |
|
Sub lease rental income |
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
2024 |
2023 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Foreign exchange losses |
|
|
Operating lease expense - property |
|
|
Operating lease expense - plant and machinery |
|
|
Other interest receivable and similar income |
2024 |
2023 |
|
Other finance income |
|
|
Interest payable and similar expenses |
2024 |
2023 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest expense on other finance liabilities |
- |
|
|
|
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Staff costs |
The aggregate payroll costs (including director's remuneration) were as follows:
2024 |
2023 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2024 |
2023 |
|
Key management personnel |
|
|
Other employees |
|
|
|
|
Directors' remuneration |
The director's remuneration for the year was as follows:
2024 |
2023 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
There was one director during the year (2023: one director).
Auditors' remuneration |
2024 |
2023 |
|
Audit of these financial statements |
- |
- |
Audit of subsidiary undertakings |
45,500 |
45,500 |
45,500 |
45,500 |
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Taxation |
Tax charged/(credited) in the consolidated profit and loss account
2024 |
2023 |
|
Current taxation |
||
UK corporation tax |
|
|
UK corporation tax adjustment to prior periods |
( |
( |
228,627 |
88,774 |
|
Foreign tax |
( |
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is lower than the standard rate of corporation tax in the UK (2023 - lower than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2024 |
2023 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Decrease in UK and foreign current tax from adjustment for prior periods |
( |
( |
Tax decrease from effect of capital allowances and depreciation |
( |
( |
Effect of revenues exempt from taxation |
( |
- |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of foreign tax rates |
|
|
Tax decrease from effect of adjustment in research and development tax credit |
( |
( |
Tax increase from other tax effects |
- |
|
Total tax charge |
|
|
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Dividends |
Interim dividends paid
2024 |
2023 |
|||
Interim dividend of £2,500.00 (2023 - £5,000.00) per each Ordinary £1 share |
250,000 |
500,000 |
||
Interim dividend of £50.00 (2023 - £Nil) per each Ordinary £0.01 share |
500,000 |
- |
||
|
|
Intangible assets |
Group
Other intangible assets |
Total |
|
Cost or valuation |
||
At 1 May 2023 |
|
|
Additions |
|
|
Foreign exchange movements |
|
|
At 30 April 2024 |
|
|
Amortisation |
||
At 1 May 2023 |
|
|
Amortisation charge |
|
|
Foreign exchange movements |
|
|
At 30 April 2024 |
|
|
Carrying amount |
||
At 30 April 2024 |
|
|
At 30 April 2023 |
|
|
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Tangible assets |
Group
Furniture, fittings and equipment |
Total |
|
Cost or valuation |
||
At 1 May 2023 |
|
|
Additions |
|
|
Foreign exchange movements |
|
|
At 30 April 2024 |
|
|
Depreciation |
||
At 1 May 2023 |
|
|
Charge for the year |
|
|
Foreign exchange movements |
|
|
At 30 April 2024 |
|
|
Carrying amount |
||
At 30 April 2024 |
|
|
At 30 April 2023 |
|
|
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Investments |
Group
Details of joint venture
Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Joint venture |
||||
|
3rd Floor Lawford House, Albert Place, London N3 1QA |
|
|
|
Joint venture
The principal activity of R Racing GT Limited is |
Company
2024 |
2023 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 May 2023 |
|
Carrying amount |
|
At 30 April 2024 |
|
At 30 April 2023 |
|
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Details of undertakings
Details of the investments in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2024 |
2023 |
|||
Subsidiary undertakings |
||||
|
8 Baltic Street East, London EC1Y 0UP |
|
|
|
|
Suite 920, 1055 Wilshire Blvd, Los Angeles, CA 90017 United States of America |
|
|
|
|
No 155, Kurunegala Road, Kullyapitiya 60200 Sri Lanka |
|
|
|
|
8 Baltic Street East, London EC1Y 0UP |
|
|
|
Subsidiary undertakings |
Ibsecad Limited The principal activity of Ibsecad Limited is |
Ibsecad USA LLC The principal activity of Ibsecad USA LLC is |
Ibsecad Lanka (PRIVATE) Limited The principal activity of Ibsecad Lanka (PRIVATE) Limited is |
Robinson Investments Group Limited The principal activity of Robinson Investments Group Limited is |
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Debtors |
Group |
Company |
||||
Current |
Note |
2024 |
2023 |
2024 |
2023 |
Trade debtors |
|
|
- |
- |
|
Amounts owed by related parties |
|
|
- |
|
|
Other debtors |
|
|
- |
- |
|
Prepayments |
|
|
- |
- |
|
Accrued income |
|
|
- |
- |
|
Income tax asset |
|
|
- |
- |
|
|
|
- |
|
Cash and cash equivalents |
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
- |
- |
|
|
- |
- |
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Creditors |
Group |
Company |
||||
Note |
2024 |
2023 |
2024 |
2023 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
- |
- |
|
Trade creditors |
|
|
- |
- |
|
Amounts due to related parties |
- |
- |
|
- |
|
Social security and other taxes |
|
|
- |
- |
|
Outstanding defined contribution pension costs |
|
|
- |
- |
|
Other payables |
|
|
|
|
|
Accruals |
|
|
|
- |
|
Corporation tax liability |
327,723 |
152,591 |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
- |
- |
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
2024 |
2023 |
|||
No. |
£ |
No. |
£ |
|
|
|
100 |
|
100 |
During the year, the 100 ordinary shares of £1 each were sub-divided into 10,000 ordinary shares of £0.01 each.
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Loans and borrowings |
Non-current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
- |
- |
|
|
- |
- |
Current loans and borrowings
Group |
Company |
|||
2024 |
2023 |
2024 |
2023 |
|
Bank borrowings |
|
|
- |
- |
|
|
- |
- |
The group has a loan under the Coronavirus Business Interruption Loan Scheme (CBILS). The loan is repayable in 66 monthly instalments of £10,606 which commenced in November 2020. The final repayment date is on 30 April 2026, i.e. 72 months from the date of the drawdown of the loan. Interest is charged at 1.28% plus the Bank of England Bank rate that is applicable at that time. The loan was fully repaid in June 2024. During the year, interest amounted to a total of £11,176 (2023: £16,345) on this loan.
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Operating leases - lessor
The total of future minimum lease payments is as follows:
2024 |
2023 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
- |
|
|
|
Total rents recognised as income in the period are £
Analysis of changes in net debt |
Group
At 1 May 2023 |
Financing cash flows |
At 30 April 2024 |
|
Cash and cash equivalents |
|||
Cash |
2,932,553 |
1,273,928 |
4,206,481 |
Borrowings |
|||
Long term borrowings |
(254,544) |
127,272 |
(127,272) |
Short term borrowings |
(127,274) |
1 |
(127,273) |
(381,818) |
127,273 |
(254,545) |
|
|
|||
|
|
|
Related party transactions |
Group
During the year, the group paid rent amounting to £455,000 (2023: £412,026) to a director and to an entity in which the director has an interest.
At 30 April 2023, the group was owed £210,009 by a jointly controlled entity. During the year, the group advanced further sums totalling £93,244 and received repayments of £245,000. Under the terms of the loan agreements, interest is charged on the outstanding principal at a margin of 2% over the Bank of England base rate. During the year, interest of £11,993 (2023: £13,321) was accrued on the loans. In the previous period, a provision of £112,000 was made against the loan balances. The provision was reduced to £10,316 at the end of the current year.
The opening balance on the director's current account was overdrawn by £234,192. During the year there were transactions with a net effect of increasing the overdrawn balance by £109,013, which resulted in an overdrawn balance of £343,205 at the year end. This balance is included within other debtors and no interest has been accrued.
Total remuneration paid to key management personnel in the year amounted to £671,234 (2023: £510,453).
Ibsecad Holdings Limited
Notes to the Financial Statements for the Year Ended 30 April 2024
Controlling party |
The ultimate controlling party is the director, D.A. Robinson.
26 Security
There are fixed and floating charges over the group's leasehold property, in favour of Lloyds Bank Plc.