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Registration number: 14462842

Interactive Management Group Limited

Annual Report and Consolidated Financial Statements

for the Period from 4 November 2022 to 30 March 2024

 

Interactive Management Group Limited

Contents

Strategic Report

1 to 2

Director's Report

3

Statement of Director's Responsibilities

4

Independent Auditor's Report

5 to 9

Consolidated Profit and Loss Account

10

Consolidated Balance Sheet

11

Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Financial Statements

15 to 28

 

Interactive Management Group Limited

Strategic Report for the period from 4 November 2022 to 30 March 2024

The director presents his strategic report for the period from 4 November 2022 to 30 March 2024.

Principal activity

The principal activity of the company is that of a holding company.

The principal activity of the group is that of project management and providing specialist solutions to clients.

Fair review of the business

In December 2022, Interactive Management Group Limited acquired the shares subsidiary Interactive Management Solutions Limited.

2024 was a challenging year in the sector for the subsidiary. The director remains pleased with the performance in a challenging period and key accounts have been maintained.

Net assets at the balance sheet date are £516 thousand with cash reserves of £789 thousand.

The director remains pleased with the results in a challenging economic environment and believes the group has developed a good package of services to offer customers moving forward.

The Group's key financial and other performance indicators during the period were as follows:

Financial KPIs

Unit

2024

Turnover

£000

15,704

Gross profit

£000

1,352

Gross profit margin

%

8.6

Principal risks and uncertainties

As with any business, the group faces risks and uncertainties in the course of its day to day operations. The successful management of risk is essential to enable the group to deliver its strategic objectives.

Noted below is a summary of the group’s principal risks and uncertainties. Control of each of these is critical to the ongoing success of the group. As such, their management is primarily the responsibility of the director who is supported by management.

Financial risk:
The group’s operations expose it to a variety of financial risks, principally liquidity risk. Liquidity risk is managed by monitoring the cash flow position and minimising working capital exposure where possible through prompt billing to ensure that sufficient funds are available to meet amounts due for current and future operations.

Workforce risk:
If the availability of skilled workers is insufficient to meet demand, this could lead to poor customer outcomes and reduced repeat business, thereby reducing profitability and return on capital employed. Continued investment is made in the group workforce in their training and development.

Market risk:
In order to minimise exposure to market risk we undertake contracts with a variety of clients. We recognise the risk of not focusing on completing our contractual obligations and therefore strive to fulfil these to a good quality, time scale and budget. Our success in this area generates repeat custom and protects the position in the market place.

 

Interactive Management Group Limited

Strategic Report for the period from 4 November 2022 to 30 March 2024

Approved and authorised by the director on 16 June 2025
 


Mr S D Foster
Director

 

Interactive Management Group Limited

Director's Report for the Period from 4 November 2022 to 30 March 2024

The director presents his report and the for the period from 4 November 2022 to 30 March 2024.

Incorporation

The company was incorporated on 4 November 2022.

Director of the group

The director who held office during the period was as follows:

Mr S D Foster

Financial instruments

Objectives and policies

The director takes the management of risk very seriously and as such have policies and procedures in place. Managing risk is seen as a key attribute of the group and the group's debt position is closely scrutinised on a regular basis to ensure that it remains serviceable in conjunction with the long term goals of growth and profitability.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, trade debtors and trade creditors. The main purpose of these instruments is to finance the business' operations. In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Disclosure of information to the auditor

The director has taken steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information. The director confirms that there is no relevant information that he knows of and of which he knows the auditor is unaware.

Approved and authorised by the director on 16 June 2025
 


Mr S D Foster
Director

 

Interactive Management Group Limited

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

 

Interactive Management Group Limited

Independent Auditor's Report to the Members of Interactive Management Group Limited

Qualified opinion

We have audited the financial statements of Interactive Management Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period from 4 November 2022 to 30 March 2024, which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Balance Sheet, Consolidated 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements:

give a true and fair view of the state of the group's and the parent company's affairs as at 30 March 2024 and of the group's profit for the period then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion on financial statements

As part of the audit of the financial statements of the subsidiary for the year ended 31 March 2024, we were not able to obtain sufficient appropriate audit evidence in respect of the expenses paid to employees. Through our testing, we could not obtain sufficient audit evidence in respect of the validity of the underlying expenses, as the subsidiary company records and thus group's records were inadequate in this regard.

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 in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion.

Key audit matters

Except for the matters described in the basis for qualified opinion section, we have determined that there are no key audit matters to be communicated in our report.

 

Interactive Management Group Limited

Independent Auditor's Report to the Members of Interactive Management Group Limited

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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.

As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves in respect of employee expenses. Where the other information refers to the gross profit balance it may be materially misstated for the same reason.

Opinion on other matter prescribed by the Companies Act 2006

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of the audit:

the information given in the Strategic Report and Director's Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

Except for the matter described in the basis for qualified opinion section of our report, in the light of our knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.

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.

In our opinion:
• in respect of evidence to support employee expenses, adequate accounting records have not been kept.

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:

 

Interactive Management Group Limited

Independent Auditor's Report to the Members of Interactive Management Group Limited

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 the director

As explained more fully in the Statement of Director's Responsibilities [set out on page 4], the director is 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 director determines 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 director is 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 director either intends to liquidate the 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.

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 and non-compliance with laws and regulations, we considered the following:

the nature of the industry and sector, control environment and business performance including the design of remuneration policies;

the group’s own assessment of the risks that irregularities may occur either as a result of fraud or error;

results of our enquiries of management about their own identification and assessment of the risks of irregularities;

the key laws and regulations under which the business operates and whether management were aware of any instances of noncompliance;

whether the management have knowledge of any actual, suspected or alleged fraud;

the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and

the matters discussed among the audit engagement team, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

 

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: Laws and regulations applicable to the company specifically relating to employment law, valuation of work in progress and revenue recognition.

 

Interactive Management Group Limited

Independent Auditor's Report to the Members of Interactive Management Group Limited

 

We also obtained an understanding of the legal and regulatory framework that the group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, Tax legislation, and Regulations established by regulators in the key markets in which the group operates specifically employment law.

 

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the group’s ability to operate or to avoid a material penalty. These included the operating and environmental regulations relevant to the group.

 

In addition to the above, our procedures to respond to risks identified included the following:

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described above as having a direct effect on the financial statements;

in addressing the risk of material misstatement through the work in progress provision, we have performed detailed testing on cut off;

enquiring of management, concerning any actual and potential litigation and claims;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

in addressing the risk of fraud in revenue recognition, in addition to our testing described above we have performed focussed testing on work completed close to the year-end combined with analytical review procedures to assess accuracy and completeness of revenue recognised; and

in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

Due to the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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.

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.

 

Interactive Management Group Limited

Independent Auditor's Report to the Members of Interactive Management Group Limited





John Heeney BA FCA (Senior Statutory Auditor)
For and on behalf of RNS Chartered Accountants, Statutory Auditor
 50-54 Oswald Road
Scunthorpe
North Lincolnshire
DN15 7PQ

16 June 2025

 

Interactive Management Group Limited

Consolidated Profit and Loss Account for the Period from 4 November 2022 to 30 March 2024

Note

2024
£

Turnover

3

15,704,232

Cost of sales

 

(14,352,316)

Gross profit

 

1,351,916

Administrative expenses

 

(628,741)

Operating profit

4

723,175

Other interest receivable and similar income

5

4,050

Interest payable and similar expenses

6

88,723

   

92,773

Profit before tax

 

815,948

Tax on profit

9

(299,503)

Profit for the financial period

 

516,445

Profit/(loss) attributable to:

 

Owners of the company

 

516,445

The above results were derived from continuing operations.

The group has no recognised gains or losses for the period other than the results above.

 

Interactive Management Group Limited

(Registration number: 14462842)
Consolidated Balance Sheet as at 30 March 2024

Note

2024
£

Fixed assets

 

Intangible assets

10

1,228,819

Tangible assets

11

313

Other financial assets

14

61,501

 

1,290,633

Current assets

 

Stocks

15

936,084

Debtors

16

526,416

Cash at bank and in hand

17

789,301

 

2,251,801

Creditors: Amounts falling due within one year

18

(3,026,829)

Net current liabilities

 

(775,028)

Total assets less current liabilities

 

515,605

Provisions for liabilities

20

(60)

Net assets

 

515,545

Capital and reserves

 

Called up share capital

22

100

Retained earnings

515,445

Equity attributable to owners of the company

 

515,545

Shareholders' funds

 

515,545

Approved and authorised by the director on 16 June 2025
 


Mr S D Foster
Director

 

Interactive Management Group Limited

(Registration number: 14462842)
Balance Sheet as at 30 March 2024

Note

2024
£

Fixed assets

 

Investments

12

3,015,000

Creditors: Amounts falling due within one year

18

(2,714,900)

Net assets

 

300,100

Capital and reserves

 

Called up share capital

22

100

Retained earnings

300,000

Shareholders' funds

 

300,100

The company made a profit after tax for the financial period of £301,000.

Approved and authorised by the director on 16 June 2025
 


Mr S D Foster
Director

 

Interactive Management Group Limited

Consolidated Statement of Changes in Equity for the Period from 4 November 2022 to 30 March 2024
Equity attributable to the parent company

Share capital
£

Retained earnings
£

Total
£

Total equity
£

Profit for the period

-

516,445

516,445

516,445

Total comprehensive income

-

516,445

516,445

516,445

Dividends

-

(1,000)

(1,000)

(1,000)

New share capital subscribed

100

-

100

100

At 30 March 2024

100

515,445

515,545

515,545

 

Interactive Management Group Limited

Consolidated Statement of Cash Flows for the Period from 4 November 2022 to 30 March 2024

Note

2024
£

Cash flows from operating activities

Profit for the period

 

516,445

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

410,671

Finance income

5

(4,050)

Finance costs

6

11,787

Corporation tax expense

9

299,503

 

1,234,356

Working capital adjustments

 

Decrease in stocks

 

184,269

Increase in trade debtors

 

(211,575)

Decrease in trade creditors

 

(255,109)

Cash generated from operations

 

951,941

Corporation taxes paid

 

(192,041)

Net cash flow from operating activities

 

759,900

Cash flows from investing activities

 

Interest received

5

4,050

Advances of loans, classified as investing activities

 

(75,582)

Acquisition of financial investments other than trading investments

14

(61,501)

Cash acquired on purchase of subsidiary

 

1,355,121

Net cash flows from investing activities

 

1,222,088

Cash flows from financing activities

 

Interest paid

6

(11,787)

Proceeds from issue of ordinary shares, net of issue costs

 

100

Repayment of other borrowing

 

(1,180,000)

Dividends paid

(1,000)

Net cash flows from financing activities

 

(1,192,687)

Net increase in cash and cash equivalents

 

789,301

Cash and cash equivalents at 4 November

 

-

Cash and cash equivalents at 30 March

17

789,301

 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 2024

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
The Octagon
Hesslewood Office Park
Ferriby Road
Hull
HU13 0LH

These financial statements were authorised for issue by the director on 16 June 2025.

The company registered number is: 14462842.

2

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 Company and Group's functional and presentational currency is GBP.

The Company has taken advantage of the exception allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 March 2024.

 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 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 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.

Judgements 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.

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 reviewed where the revision affects only that period, or in the period of revision and future periods where the revision affects both current and future periods.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of services in the ordinary course of the group’s activities. Turnover is shown net of value added tax and after eliminating sales within the group.

The group recognises revenue when: the amount of revenue can be reliably measured; it is probable that future economic benefits will flow to the entity; and specific criteria have been met for each of the group's activities.

 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 2024

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred 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 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.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

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 over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture, fittings and equipment

25% per annum on cost

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

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:

 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 2024

Asset class

Amortisation method and rate

Goodwill

Over 5 years

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

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 services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at 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.

Stocks

The cost of work in progress comprises labour costs incurred but not yet invoiced to the customer.

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 at the transaction price.

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.

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.

 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 2024

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.

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.

3

Turnover

The analysis of the group's turnover for the period from continuing operations is as follows:

2024
£

Rendering of services

15,704,232

4

Operating profit

Arrived at after charging/(crediting)

2024
£

Depreciation expense

1,065

Amortisation expense

409,606

5

Other interest receivable and similar income

2024
£

Interest income on bank deposits

16

Other finance income

4,034

4,050

6

Interest payable and similar expenses

2024
£

Interest expense on other finance liabilities

11,787

Foreign exchange losses

(100,510)

(88,723)

 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 2024

7

Staff costs

The aggregate payroll costs (including director's remuneration) were as follows:

2024
£

Wages and salaries

5,208,882

Social security costs

547,414

Pension costs, defined contribution scheme

186,772

5,943,068

The average number of persons employed by the group (including the director) during the period, analysed by category was as follows:

2024
No.

Production

142

142

8

Auditors' remuneration

2024
£

Audit of these financial statements

14,225


 

9

Taxation

Tax charged/(credited) in the consolidated profit and loss account

2024
£

Current taxation

UK corporation tax

299,701

Deferred taxation

Arising from origination and reversal of timing differences

(198)

Tax expense in the income statement

299,503

 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 2024

The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK of 25%.

The differences are reconciled below:

2024
£

Profit before tax

815,948

Corporation tax at standard rate

203,987

Tax increase from effect of capital allowances and depreciation

102,668

Decrease from effect of different UK tax rates on some earnings

(16,585)

Effect of expense not deductible in determining taxable profit

8,631

Increase from tax losses for which no deferred tax asset was recognised

1,000

Deferred tax credit from unrecognised temporary difference from a prior period

(198)

Total tax charge

299,503

Deferred tax

Group

Deferred tax assets and liabilities

2024

Liability
£

Difference between accumulated depreciation and amortisation and capital allowances

60

60

There are £4,000 of unused tax losses for which no deferred tax asset is recognised in the balance sheet.

 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 2024

10

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

Acquired through business combinations

1,638,425

1,638,425

At 30 March 2024

1,638,425

1,638,425

Amortisation

Amortisation charge

409,606

409,606

At 30 March 2024

409,606

409,606

Carrying amount

At 30 March 2024

1,228,819

1,228,819

11

Tangible assets

Group

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

Acquired through business combinations

1,378

1,378

At 30 March 2024

1,378

1,378

Depreciation

Charge for the period

1,065

1,065

At 30 March 2024

1,065

1,065

Carrying amount

At 30 March 2024

313

313

 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 2024

12

Investments

Group

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) 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

Subsidiary undertakings

Interactive Management Solutions Limited *

The Octagon
Hesslewood Office Park
Ferriby Road
Hull
HU13 0LH

Ordinary

100%

England

* indicates direct investment of the company

Subsidiary undertakings

Interactive Management Solutions Limited

The principal activity of Interactive Management Solutions Limited is that of project management and providing specialist solutions to clients. Its financial period end is 31 March.

Company

2024
£

Investments in subsidiaries

3,015,000

Subsidiaries

£

Cost or valuation

Additions

3,015,000

Provision

Carrying amount

At 30 March 2024

3,015,000

 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 2024

13

Business combinations

On 20 December 2022, Interactive Management Group Limited (parent) acquired 100% of the issued share capital of Interactive Management Solutions Limited (subsidiary), obtaining control.

Interactive Management Solutions Limited contributed £15,704,232 revenue and £945,050 to the group's profit for the period between the date of acquisition and the Balance Sheet date.

The amounts recognised in respect of the identifiable assets acquired and liabilities assumed are as set out in the table below:
 

Book value
2024
£

Fair value
2024
£

Assets and liabilities acquired

Financial assets

2,994,381

2,994,381

Stocks

1,120,353

1,120,353

Tangible assets

1,378

1,378

Financial liabilities

(2,754,536)

(2,754,536)

Total identifiable assets

1,361,576

1,361,576

Goodwill

1,638,424

1,638,424

Total consideration

3,000,000

3,000,000

Satisfied by:

Debt instruments

1,600,000

1,600,000

Settlement of pre-existing balance

1,400,000

1,400,000

Total consideration transferred

3,000,000

3,000,000

Cash flow analysis:

Less: cash and cash equivalent balances acquired

1,355,122

1,355,122

The useful life of goodwill is 5 years.

 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 2024

14

Other financial assets

Group

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

Additions

61,501

61,501

At 30 March 2024

61,501

61,501

Carrying amount

At 30 March 2024

61,501

61,501

15

Stocks

 

Group

Company

2024
£

2024
£

Work in progress

936,084

-

16

Debtors

   

Group

Company

Current

Note

2024
£

2024
£

Trade debtors

 

412,239

-

Other debtors

 

595

-

Directors loan accounts

24

113,582

-

   

526,416

-

17

Cash and cash equivalents

 

Group

Company

2024
£

2024
£

Cash at bank

789,301

-

 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 2024

18

Creditors

   

Group

Company

Note

2024
£

2024
£

Due within one year

 

Loans and borrowings

19

210,000

210,000

Trade creditors

 

1,771,827

-

Amounts due to related parties

 

-

2,500,900

Social security and other taxes

 

568,577

-

Accruals

 

9,849

4,000

Corporation tax liability

9

466,576

-

 

3,026,829

2,714,900

19

Loans and borrowings

Current loans and borrowings

 

Group

Company

2024
£

2024
£

Secured debentures

210,000

210,000

A debenture of £1.6 million was granted of which £210,000 remained outstanding at the year end. There is a fixed and floating charge over all assets of the parent company and the subsidiary, Interactive Management Solutions Limited, in respect of this debenture of £210,000. As in accordance with the agreement, no interest has been charged on this balance as payments were made ontime. The debenture has been settled and discharged in June 2024.

20

Provisions for liabilities

Group

Deferred tax
£

Total
£

Increase through business combinations

258

258

Decrease in existing provisions

(198)

(198)

At 30 March 2024

60

60

 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 2024

21

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the group to the scheme and amounted to £186,772.

22

Share capital

Allotted, called up and fully paid shares

2024

No.

£

Ordinary shares of £1 each

100

100

   

New shares allotted

During the period 100 Ordinary shares having an aggregate nominal value of £100 were allotted for an aggregate consideration of £100.

Rights, preferences and restrictions

Ordinary shares have the following rights, preferences and restrictions:
Ordinary shares have full rights in the company regarding voting, dividends and capital distribution.

23

Dividends

2024

£

Interim dividend of £10.00 per ordinary share

1,000

 
 

Interactive Management Group Limited

Notes to the Financial Statements for the Period from 4 November 2022 to 30 March 2024

24

Related party transactions

Group

Transactions with the director

2024

At 4 November 2022
£

Advances to director
£

At 30 March 2024
£

Mr S D Foster

Director's loan account. Interest has been charged at 2.25%. The loan is repayable on demand.

-

113,582

113,582