Company registration number 15573783 (England and Wales)
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2024
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
COMPANY INFORMATION
Directors
J G Cuddihy
(Appointed 18 March 2024)
H L Lloyd
(Appointed 18 March 2024)
Company number
15573783
Registered office
Unit 1 Merthyr Tydfil Industrial Estate
Pentrebach
Merthyr Tydfil
United Kingdom
CF48 4DR
Auditor
Azets Audit Services
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
Cardiff
South Glamorgan
United Kingdom
CF23 8AB
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 33
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 JULY 2024
- 1 -

The directors present the strategic report for the Period ended 31 July 2024.

Review of the business

IPS Group specialises in providing complete mechanical engineering solutions including design, manufacture & installation services. Our strategy focuses on innovation and new ways of working, sustainability and expanding our market presence. We aim to achieve this through continued investment in our work force and in innovative technology. 

The results for the four month period ended 31 July 2024 are shown in the annexed financial statements.

Capital investment has been made in the year to make improvements to the workshops and offices to ensure efficient and highest standard working conditions for our teams.

Principal risks and uncertainties

The management of the business and the execution of strategy are subject to several risks. Key business risks principally relate to reliance on a key partnership agreement, the retention of suitably qualified employees and compliance with applicable legislation. Business risks are reviewed regularly by the directors and appropriate processes are put in place to monitor and mitigate their impact.

Financial risk management

The Company's operations expose it to a variety of financial risks that include the effects of price risk, credit risk, liquidity risk, interest rate risk and interest rate cash flow risk. The Company has in place an informal risk management programme that seeks to limit the adverse effects on the financial performance of the Company.

Given the size of the Company, the directors have not delegated the responsibility for monitoring financial risk management to a subcommittee of the board. The policies set by the board of directors are implemented by the Company's finance department.

Price risk

The Company is exposed to commodity price risk as a result of its operations. However, given the size of the Company's operations, the costs of managing the exposure to commodity price risk exceed any potential benefits.

The directors will revisit the appropriateness of this policy should the Company's operations change in size or nature. The Company has no exposure to equity securities price risk as it holds no listed or other equity instruments.

Credit risk

The Company has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to any individual counter party is continually monitored in line with the Company's credit control procedures. Credit risk insurance has been evaluated by directors' and has not been deemed cost effective in the current business climate. The directors will revisit the appropriateness of this policy should the Company's operations change in size or nature and the availability of credit insurance on the customer base.

Liquidity and interest rate risk

The Company has cash reserves to fund its operations.

Interest rate cash flow risk

The Company has interest bearing assets. Interest bearing assets include only cash balances, all of which earn interest at variable rates.

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 2 -
Key performance indicators

Analysis using financial key performance indicators:

 

 

2024

 

 

Turnover (£)

5,872,675

 

 

Cost of sales (£)

3,940,034

 

 

Gross profit (£)

1,932,734

 

 

Gross profit (%)

33%

 

 

Administrative expenses (£)

835,597

 

 

Administrative expenses (%)

14%

 

 

The company focuses on ensuring service levels are kept to a high standard to ensure that existing relationships are maintained as well as ensuring that any new relationships are satisfied with the service provided.

The company continually review its processes and overheads to see where improvements to efficiency can be made and costs saved. The directors believe that the company is well placed to take advantage of any opportunities that might arise and are confident that with the effective application of its strategy the company will continue to trade profitably into the future.

On behalf of the board

H L Lloyd
Director
30 June 2025
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 JULY 2024
- 3 -

The directors present their annual report and financial statements for the Period ended 31 July 2024.

Principal activities

The principal activity of the company and group continued to be that of engineering, pipework and steel fabrication.

 

IPS ME Holdings Limited was incorporated on 18th March 2024 and the company acquired 100% of the share capital of IPS Mechanical Engineering Limited and therefore 100% of the share capital of Equipdata Limited on 28th March 2024.

 

As such, the consolidated financial statements represent a 4 month period from incorporation of the parent company to the year end of 31st July 2024, they also include 4 months of the subsidiaries' P&L for the corresponding period.

Results and dividends

The results for the Period are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

No preference dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the Period and up to the date of signature of the financial statements were as follows:

H L Lloyd
(Appointed 18 March 2024)
J G Cuddihy
(Appointed 18 March 2024)
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
H L Lloyd
Director
30 June 2025
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 JULY 2024
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF IPS ME HOLDINGS LIMITED (CONSOLIDATION)
- 5 -
Opinion

We have audited the financial statements of IPS ME Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the Period ended 31 July 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IPS ME HOLDINGS LIMITED (CONSOLIDATION)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF IPS ME HOLDINGS LIMITED (CONSOLIDATION)
- 7 -

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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.

Joelene Swart (Senior Statutory Auditor)
For and on behalf of Azets Audit Services
30 June 2025
Chartered Accountants
Statutory Auditor
Ty Derw
Lime Tree Court
Cardiff Gate Business Park
Cardiff
South Glamorgan
United Kingdom
CF23 8AB
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 JULY 2024
- 8 -
Period
ended
31 July
2024
Notes
£
Turnover
3
5,872,768
Cost of sales
(3,940,034)
Gross profit
1,932,734
Administrative expenses
(835,597)
Other operating income
800
Operating profit
4
1,097,937
Interest receivable and similar income
8
7,807
Interest payable and similar expenses
9
(426)
Profit before taxation
1,105,318
Tax on profit
10
(482,775)
Profit for the financial Period
622,543
Profit for the financial Period is all attributable to the owners of the parent company.
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 JULY 2024
- 9 -
Period
ended
31 July
2024
£
Profit for the Period
622,543
Other comprehensive income
-
Total comprehensive income for the Period
622,543
Total comprehensive income for the Period is all attributable to the owners of the parent company.
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
GROUP BALANCE SHEET
AS AT
31 JULY 2024
31 July 2024
- 10 -
2024
Notes
£
£
Fixed assets
Goodwill
11
572,245
Tangible assets
12
985,319
1,557,564
Current assets
Debtors
15
3,258,716
Cash at bank and in hand
3,844,961
7,103,677
Creditors: amounts falling due within one year
16
(3,548,636)
Net current assets
3,555,041
Total assets less current liabilities
5,112,605
Creditors: amounts falling due after more than one year
17
(2,008,199)
Provisions for liabilities
Deferred tax liability
19
31,863
(31,863)
Net assets
3,072,543
Capital and reserves
Called up share capital
22
2,366,767
Share premium account
83,233
Profit and loss reserves
622,543
Total equity
3,072,543
The financial statements were approved by the board of directors and authorised for issue on 30 June 2025 and are signed on its behalf by:
30 June 2025
H L Lloyd
Director
Company registration number 15573783 (England and Wales)
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
COMPANY BALANCE SHEET
AS AT 31 JULY 2024
31 July 2024
- 11 -
2024
Notes
£
£
Fixed assets
Tangible assets
12
77,951
Investments
13
6,000,000
6,077,951
Current assets
Cash at bank and in hand
2,383
Creditors: amounts falling due within one year
16
(1,783,810)
Net current liabilities
(1,781,427)
Total assets less current liabilities
4,296,524
Creditors: amounts falling due after more than one year
17
(1,860,506)
Provisions for liabilities
Deferred tax liability
19
19,488
(19,488)
Net assets
2,416,530
Capital and reserves
Called up share capital
22
2,366,767
Share premium account
83,233
Profit and loss reserves
(33,470)
Total equity
2,416,530

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £33,470.

The financial statements were approved by the board of directors and authorised for issue on 30 June 2025 and are signed on its behalf by:
30 June 2025
H L Lloyd
Director
Company registration number 15573783 (England and Wales)
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 JULY 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 18 March 2024
-
-
-
-
Period ended 31 July 2024:
Profit and total comprehensive income
-
-
622,543
622,543
Issue of share capital
22
2,366,767
83,233
-
2,450,000
Balance at 31 July 2024
2,366,767
83,233
622,543
3,072,543
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 JULY 2024
- 13 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 18 March 2024
-
-
-
-
Period ended 31 July 2024:
Profit and total comprehensive income
-
-
(33,470)
(33,470)
Issue of share capital
22
2,366,767
83,233
-
2,450,000
Balance at 31 July 2024
2,366,767
83,233
(33,470)
2,416,530
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 JULY 2024
- 14 -
2024
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
437,928
Interest paid
(426)
Income taxes paid
(382,910)
Net cash inflow/(outflow) from operating activities
54,592
Investing activities
Purchase of subsidiaries, net of cash acquired
1,917,067
Purchase of tangible fixed assets
(609,641)
Proceeds from disposal of tangible fixed assets
41,870
Interest received
7,807
Net cash generated from/(used in) investing activities
1,357,103
Financing activities
Proceeds from issue of shares
2,450,000
Payment of finance leases obligations
(16,734)
Net cash generated from/(used in) financing activities
2,433,266
Net increase in cash and cash equivalents
3,844,961
Cash and cash equivalents at beginning of Period
-
Cash and cash equivalents at end of Period
3,844,961
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JULY 2024
- 15 -
1
Accounting policies
Company information

IPS ME Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 1 Merthyr Tydfil Industrial Park, Pentrebach, Merthyr Tydfil, Mid Glamorgan, United Kingdom, CF48 4DR.

 

The group consists of IPS ME Holdings Limited and all of its subsidiaries.

1.1
Reporting period

These financial statements are for the 4 month period ended 31st July 2024. This is due to the fact that IPS ME Holdings Limited was incorporated on 18th March 2024. The company acquired 100% of the share capital of IPS Mechanical Engineering Limited and therefore 100% of the share capital of Equipdata Limited on the 28th March 2024. The year-end of IPS ME Holdings Limited was changed to 31st July 2024 to align with the other companies within the Group, therefore resulting in a short period of accounts.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company IPS ME Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 July 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 16 -

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.6
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 17 -
1.7
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% Straight Line
Leasehold improvements
Not depreciated
Plant and equipment
25% Reducing Balance
Computers
25% Straight Line
Motor vehicles
25% Reducing Balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 18 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 19 -
1.11
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

 

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 20 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
1
Accounting policies
(Continued)
- 22 -
1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Work in Progress and Contract Debtors

The estimate of work in progress and contract debtors (together WIP) refers to the valuation of partially completed goods or projects that are still in the production process at a given point in time. This estimate is crucial for businesses, especially in manufacturing and construction, as it helps in understanding the value of ongoing work and managing financial statements accurately. WIP is valued with reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, the WIP is recognised only to the extent of the expenses recognised that it is probable will be recovered. Due to this, there is significant judgement involved.

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 23 -
3
Turnover and other revenue
2024
£
Turnover analysed by class of business
Provision of services
5,872,768
2024
£
Turnover analysed by geographical market
United Kingdom
5,872,768
2024
£
Other revenue
Interest income
7,807
Grants received
800
4
Operating profit
2024
£
Operating profit for the period is stated after charging/(crediting):
Government grants
(800)
Depreciation of owned tangible fixed assets
311,237
Profit on disposal of tangible fixed assets
(1,133)
Amortisation of intangible assets
19,733
Operating lease charges
12,013
5
Auditor's remuneration
2024
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
8,000
Audit of the financial statements of the company's subsidiaries
6,667
14,667
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 24 -
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the Period was:

Group
Company
2024
2024
Number
Number
58
2

Their aggregate remuneration comprised:

Group
Company
2024
2024
£
£
Wages and salaries
765,219
-
0
Social security costs
380,026
-
Pension costs
120,421
-
0
1,265,666
-
0
7
Directors' remuneration
2024
£
Remuneration for qualifying services
171,773
Company pension contributions to defined contribution schemes
1,347
173,120
8
Interest receivable and similar income
2024
£
Interest income
Interest on bank deposits
7,807
2024
Investment income includes the following:
£
Interest on financial assets not measured at fair value through profit or loss
7,807
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 25 -
9
Interest payable and similar expenses
2024
£
Other finance costs:
Interest on finance leases and hire purchase contracts
426
10
Taxation
2024
£
Current tax
UK corporation tax on profits for the current period
683,736
Adjustments in respect of prior periods
(216,636)
Total current tax
467,100
Deferred tax
Origination and reversal of timing differences
15,675
Total tax charge
482,775

The actual charge for the Period can be reconciled to the expected charge/(credit) for the Period based on the profit or loss and the standard rate of tax as follows:

2024
£
Profit before taxation
1,105,318
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00%
276,330
Tax effect of expenses that are not deductible in determining taxable profit
309,358
Change in unrecognised deferred tax assets
(10,582)
Adjustments in respect of prior years
(72,212)
Effect of change in corporation tax rate
(919)
Group relief
290
Research and development tax credit
(19,490)
Taxation charge
482,775
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 26 -
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 18 March 2024
-
0
Additions
591,978
At 31 July 2024
591,978
Amortisation and impairment
At 18 March 2024
-
0
Amortisation charged for the Period
19,733
At 31 July 2024
19,733
Carrying amount
At 31 July 2024
572,245
The company had no intangible fixed assets at 31 July 2024.
12
Tangible fixed assets
Group
Freehold land and buildings
Leasehold improvements
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 18 March 2024
-
0
-
0
-
0
-
0
-
0
-
0
Additions
275,000
199,705
234,363
14,637
613,588
1,337,293
Disposals
-
0
-
0
-
0
-
0
(63,590)
(63,590)
At 31 July 2024
275,000
199,705
234,363
14,637
549,998
1,273,703
Depreciation and impairment
At 18 March 2024
-
0
-
0
-
0
-
0
-
0
-
0
Depreciation charged in the Period
18,333
14,844
164,377
4,012
109,671
311,237
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
(22,853)
(22,853)
At 31 July 2024
18,333
14,844
164,377
4,012
86,818
288,384
Carrying amount
At 31 July 2024
256,667
184,861
69,986
10,625
463,180
985,319
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
12
Tangible fixed assets
(Continued)
- 27 -
Company
Freehold land and buildings
Motor vehicles
Total
£
£
£
Cost
At 18 March 2024
-
0
-
0
-
0
Additions
-
0
83,933
83,933
Transfers from Group companies
275,000
167,499
442,499
At 31 July 2024
275,000
251,432
526,432
Depreciation and impairment
At 18 March 2024
-
0
-
0
-
0
Depreciation charged in the Period
-
0
5,982
5,982
Transfers from Group companies
275,000
167,499
442,499
At 31 July 2024
275,000
173,481
448,481
Carrying amount
At 31 July 2024
-
0
77,951
77,951
13
Fixed asset investments
Group
Company
2024
2024
Notes
£
£
Investments in subsidiaries
14
-
0
6,000,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 18 March 2024
-
Additions
6,000,000
At 31 July 2024
6,000,000
Carrying amount
At 31 July 2024
6,000,000
14
Subsidiaries

Details of the company's subsidiaries at 31 July 2024 are as follows:

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
14
Subsidiaries
(Continued)
- 28 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
IPS Mechanical Engineering Limited
Unit 1 Merthyr Tydfil Industrial Park,  Pentrebach,  Merthyr Tydfil,  Mid Glamorgan  CF48 4DR
Ordinary
100.00
-
Equipdata Limited
Unit 1 Merthyr Tydfil Industrial Park,
Pentrebach,
Merthyr Tydfil,
Mid Glamorgan
CF48 4DR
Ordinary
0
100.00
15
Debtors
Group
Company
2024
2024
Amounts falling due within one year:
£
£
Trade debtors
2,207,187
-
0
Other debtors
961,745
-
0
Prepayments and accrued income
89,784
-
0
3,258,716
-
16
Creditors: amounts falling due within one year
Group
Company
2024
2024
Notes
£
£
Obligations under finance leases
18
26,722
-
0
Trade creditors
1,404,239
-
0
Amounts owed to group undertakings
-
0
1,450,811
Corporation tax payable
808,308
-
0
Other taxation and social security
656,248
-
Government grants
20
2,400
-
0
Other creditors
395,006
324,999
Accruals and deferred income
255,713
8,000
3,548,636
1,783,810
17
Creditors: amounts falling due after more than one year
Group
Company
2024
2024
Notes
£
£
Obligations under finance leases
18
74,893
-
0
Government grants
20
72,800
-
0
Other creditors
1,860,506
1,860,506
2,008,199
1,860,506
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 29 -
18
Finance lease obligations
Group
Company
2024
2024
£
£
Future minimum lease payments due under finance leases:
Within one year
26,722
-
0
In two to five years
74,893
-
0
101,615
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3-4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
2024
Group
£
Accelerated capital allowances
70,713
Other short term timing differences
(38,850)
31,863
Liabilities
2024
Company
£
Accelerated capital allowances
19,488
Group
Company
2024
2024
Movements in the Period:
£
£
Asset at 18 March 2024
-
-
Charge to profit or loss
31,863
19,488
Liability at 31 July 2024
31,863
19,488

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 30 -
20
Government grants
Group
Company
2024
2024
£
£
Arising from government grants
75,200
-

Deferred income is included in the financial statements as follows:

Current liabilities
2,400
-
0
Non-current liabilities
72,800
-
0
75,200
-
21
Retirement benefit schemes
2024
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
120,421

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2024
2024
Ordinary share capital
Number
£
Issued and fully paid
of £1 each
100
100
2024
2024
Preference share capital
Number
£
Issued and fully paid
of £1 each
2,366,667
2,366,667
Preference shares classified as equity
2,366,667
Total equity share capital
2,366,767
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 31 -
23
Acquisition of a business

On 28 March 2024 the group acquired 100 percent of the issued capital of IPS Mechanical Engineering Limited and its subsidiary Equipdata Limited.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
727,652
-
727,652
Investments
1,500,000
(1,500,000)
-
Trade and other receivables
6,363,875
(349,805)
6,014,070
Cash and cash equivalents
2,917,067
-
2,917,067
Obligations under finance leases
(84,881)
-
(84,881)
Trade and other payables
(3,924,543)
-
(3,924,543)
Tax liabilities
(217,531)
-
(217,531)
Deferred tax
(23,812)
-
(23,812)
Total identifiable net assets
7,257,827
(1,849,805)
5,408,022
Goodwill
591,978
Total consideration
6,000,000
The consideration was satisfied by:
£
Cash
1,000,000
Issue of shares
2,400,000
Deferred consideration
2,600,000
6,000,000

Adjustments to cost include:

a) The elimination of the investment in Equipdata Limited held by IPS Mechanical Engineering Limited of £1.5m (as this elimination has already been accounted for).

b) Other fair value adjustments.

 

Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
5,872,768
Profit after tax
656,606
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 32 -
24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2024
£
£
Within one year
184,030
-
Between two and five years
127,008
-
311,038
-
25
Controlling party

Mr M C F Evans is considered to be the ultimate controlling party by virtue of holding 99.997% of the issued share capital of IPS ME Holdings Limited.

26
Cash generated from/(absorbed by) group operations
2024
£
Profit for the Period after tax
622,543
Adjustments for:
Taxation charged
482,775
Finance costs
426
Investment income
(7,807)
Gain on disposal of tangible fixed assets
(1,133)
Amortisation and impairment of intangible assets
19,733
Depreciation and impairment of tangible fixed assets
311,237
Movements in working capital:
Increase in debtors
(1,357,154)
Increase in creditors
442,508
Decrease in deferred income
(75,200)
Cash generated from/(absorbed by) operations
437,928
IPS ME HOLDINGS LIMITED (CONSOLIDATION)
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 JULY 2024
- 33 -
27
Analysis of changes in net funds - group
18 March 2024
Cash flows
New finance leases
31 July 2024
£
£
£
£
Cash at bank and in hand
-
3,844,961
-
3,844,961
Obligations under finance leases
-
(68,147)
(33,468)
(101,615)
-
3,776,814
(33,468)
3,743,346
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