Company registration number NI612900 (Northern Ireland)
ISDM SOLUTIONS LIMITED
ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 JUNE 2024
ISDM SOLUTIONS LIMITED
COMPANY INFORMATION
Directors
Mr Stephen Milner
Mr Rory Brannigan
Mrs Karen McWhirter
Company number
NI612900
Registered office
10 Cromac Place
Belfast
Co. Antrim
Northern Ireland
BT7 2JB
Auditor
AAB Group Accountants Limited
Dromalane Mill
The Quays
Newry
Co. Down
Northern Ireland
BT35 8QS
Bankers
Barclays Bank plc
Donegall House
7 Donegal Square North
Belfast
Co. Antrim
Northern Ireland
BT1 5LU
Solicitors
Carson & McDowell
Murray House
Murray Street
Belfast
Northern Ireland
BT1 6HS
ISDM SOLUTIONS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group profit and less account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 34
ISDM SOLUTIONS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 28 JUNE 2024
- 1 -
The directors present the strategic report for the period ended 28 June 2024.
Review of the business
During the year the group continued its principal activity of focusing on the integration of audio visual, video conferencing and cloud-based solutions. Systems integration consists of the consultancy, design, equipment sales, installation and commissioning of technology solutions.
The group's customers include large enterprise clients from multiple sectors, many of which have significant international requirements. Global demand from enterprise clients has driven the continued development of the company's international presence in the United States.
Principal risks and uncertainties
The group's operations expose it to a variety of financial risks in the ordinary course of business:
Credit Risk
The group manages it's credit risk through strict credit control policies and procedures which include appropriate credit checks on new customers. A high proportion of the company's trade debtors comprise enterprise customers with high credit ratings.
Liquidity Risk
The group manages its day to day operations from operating cash flow. Risk is managed using detailed cash flow forecasts to ensure the company maintains sufficient finds for operations.
Competitor Risk
There are a relatively small number or competitors with global delivery capability, but at a national level professional AV markets remain highly fragmented. The group continues to focus on customer relationships and the long-term strategy is to diversify the customer base even further. The group also continues to broaden its offerings to remain attractive to customers.
Key performance indicators
The directors use a range of financial and non-financial performance measures in the monitoring and effective management of the company. The key financial measures are revenue and EBITDA.
Revenue for the period decreased proportionately by 27% from £13.1m last year to £14.4m in the 18 month period to 28 June 2024.
EBITDA for the period increased from 3% to 11%.
One of the core operating principles in ISDM has always been 'think beyond the now'. Since 2014 we have invested in the development of next generation workplace management software using what we considered to be our accrued net profit reserve. We regard this as no different to a pharma investing in discovery. This investment sat on our balance sheet as intercompany balance with AMMI Systems Ltd. The shareholders of this associated company have agreed to convert to equity based on an official company valuation of £20 million. This equates to an ISDM Solutions Ltd asset value of £2.4 million based on current market valuation metrics. The AMMI Systems Ltd platform is projected to exceed £2million in annual recurring revenue by the end of 2025 with an operating cost of just under £1 million therefore creating significant profits by end of 2025.
The group's financial position is shown in the profit and loss account on page 8 of the financial statements.
ISDM SOLUTIONS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
- 2 -
Other performance indicators
The professional audio visual market is forecast to show strong growth in coming years. The directors remain confident that the group wiII continue to achieve profitable growth in the coming years continuing to strengthen customer relationship and expand our customer base.
Mr Rory Brannigan
Director
29 July 2025
ISDM SOLUTIONS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 28 JUNE 2024
- 3 -
The directors present their annual report and financial statements for the period ended 28 June 2024.
Principal activities
The principal activity of the group continued to be that of technology specialists with a focus on future audio visual, video conferencing and cloud based solutions.
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.
Directors
The directors who held office during the period and up to the date of signature of the financial statements were as follows:
Mr Stephen Milner
Mr Rory Brannigan
Mrs Karen McWhirter
Auditor
In accordance with s495 of the Companies Act 2006; a resolution to reappoint AAB Group Accountants Limited (formerly FPM Accountants Limited) as auditors will be put to the members at the Annual General Meeting.
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
Mr Rory Brannigan
Mrs Karen McWhirter
Director
Director
29 July 2025
ISDM SOLUTIONS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 28 JUNE 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:
select suitable accounting policies and then 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;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and 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.
ISDM SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ISDM SOLUTIONS LIMITED
- 5 -
Opinion
We have audited the financial statements of ISDM Solutions Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 28 June 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 28 June 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.
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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
The information given in the strategic report and the directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
ISDM SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ISDM SOLUTIONS LIMITED
- 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:
adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' 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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We obtained an understanding of the legal and regulatory framework applicable to the company through enquiry of management, industry research and the application of cumulative audit knowledge. We identified the following principal laws and regulations relevant to the company – Companies Act 2006 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).
We developed an understanding of the key fraud risks to the entity (including how fraud might occur), the controls in place to help mitigate those risks, and the accounts, balances and disclosures within the financial statements which may be susceptible to management bias. Our understanding was obtained through review of the financial statements for significant accounting estimates, analysis of journal entries, walkthrough of the key controls cycles in place and enquiry of management.
Our procedures to respond to those risks identified included, but were not limited to:
Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims;
Enquiry of entity staff in compliance functions to identify any instances of non-compliance with laws and regulations;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business.
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.
ISDM SOLUTIONS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ISDM SOLUTIONS LIMITED
- 7 -
The purpose of our audit work and to whom we owe our responsibilities
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.
Teresa Campbell (Senior Statutory Auditor)
For and on behalf of AAB Group Accountants Limited
Chartered Accountants
Statutory Auditors
Dromalane Mill
The Quays
Newry
Co. Down
Northern Ireland
BT35 8QS
29 July 2025
ISDM SOLUTIONS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 28 JUNE 2024
- 8 -
Period
Year
ended
ended
28 June
31 December
2024
2022
Notes
£
£
Turnover
3
14,388,652
13,098,874
Cost of sales
(8,560,968)
(8,080,944)
Gross profit
5,827,684
5,017,930
Administrative expenses
(6,682,358)
(4,750,876)
Other operating income
-
68,760
Exceptional item
4
2,363,694
Operating profit
5
1,509,020
335,814
Interest payable and similar expenses
9
(68,708)
(23,591)
Profit before taxation
1,440,312
312,223
Tax on profit
10
144,028
(220,120)
Profit for the financial period
1,584,340
92,103
Profit for the financial period is all attributable to the owners of the parent company.
ISDM SOLUTIONS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 28 JUNE 2024
- 9 -
Period
Year
ended
ended
28 June
31 December
2024
2022
£
£
Profit for the period
1,584,340
92,103
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(40,924)
120,617
Cash flow hedges gain arising in the period
Total comprehensive income for the period
1,543,416
212,720
Total comprehensive income for the period is all attributable to the owners of the parent company.
ISDM SOLUTIONS LIMITED
GROUP BALANCE SHEET
- 10 -
28 June 2024
31 December 2022
Notes
£
£
£
£
Fixed assets
Intangible assets
335,147
356,127
Tangible assets
12
35,003
62,472
370,150
418,599
Current assets
Stocks
15
416,631
393,574
Debtors
16
4,190,050
3,089,781
Cash at bank and in hand
175,105
327,312
4,781,786
3,810,667
Creditors: amounts falling due within one year
17
(2,069,646)
(2,530,164)
Net current assets
2,712,140
1,280,503
Total assets less current liabilities
3,082,290
1,699,102
Creditors: amounts falling due after more than one year
18
(108,333)
(258,333)
Provisions for liabilities
Deferred tax liability
20
5,049
97,844
(5,049)
(97,844)
Net assets
2,968,908
1,342,925
Capital and reserves
Called up share capital
23
100
100
Profit and loss reserves
2,968,808
1,342,825
Total equity
2,968,908
1,342,925
The financial statements were approved by the board of directors and authorised for issue on 29 July 2025 and are signed on its behalf by:
29 July 2025
Mr Rory Brannigan
Mrs Karen McWhirter
Director
Director
Company registration number NI612900 (Northern Ireland)
ISDM SOLUTIONS LIMITED
COMPANY BALANCE SHEET
AS AT 28 JUNE 2024
28 June 2024
- 11 -
28 June 2024
31 December 2022
Notes
£
£
£
£
Fixed assets
Intangible assets
335,147
356,127
Tangible assets
12
32,205
58,625
Investments
13
1,262
367,352
416,014
Current assets
Stocks
15
210,296
219,179
Debtors
16
4,028,505
2,434,869
Cash at bank and in hand
38,068
78,609
4,276,869
2,732,657
Creditors: amounts falling due within one year
17
(2,179,971)
(2,090,877)
Net current assets
2,096,898
641,780
Total assets less current liabilities
2,464,250
1,057,794
Creditors: amounts falling due after more than one year
18
(108,333)
(258,333)
Provisions for liabilities
Deferred tax liability
20
5,049
97,844
(5,049)
(97,844)
Net assets
2,350,868
701,617
Capital and reserves
Called up share capital
23
100
100
Profit and loss reserves
2,350,768
701,517
Total equity
2,350,868
701,617
ISDM SOLUTIONS LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 28 JUNE 2024
28 June 2024
- 12 -
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and
related notes. The company’s profit for the period was £1,460,516 (2022 - £111,253 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 29 July 2025 and are signed on its behalf by:
29 July 2025
Mr Rory Brannigan
Mrs Karen McWhirter
Director
Director
Company registration number NI612900 (Northern Ireland)
ISDM SOLUTIONS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 JUNE 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
100
1,130,105
1,130,205
Year ended 31 December 2022:
Profit for the year
-
92,103
92,103
Other comprehensive income:
Currency translation differences
-
120,617
120,617
Total comprehensive income
-
212,720
212,720
Balance at 31 December 2022
100
1,342,825
1,342,925
Period ended 28 June 2024:
Profit for the period
-
1,584,340
1,584,340
Other comprehensive income:
Currency translation differences
-
(40,924)
(40,924)
Total comprehensive income
-
1,543,416
1,543,416
Balance at 28 June 2024
100
2,968,808
2,968,908
ISDM SOLUTIONS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 28 JUNE 2024
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
100
590,264
590,364
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
111,253
111,253
Balance at 31 December 2022
100
701,517
701,617
Period ended 28 June 2024:
Profit and total comprehensive income
-
1,649,251
1,649,251
Balance at 28 June 2024
100
2,350,768
2,350,868
The notes on pages 17 to 34 form part of these financial statements.
ISDM SOLUTIONS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 28 JUNE 2024
- 15 -
2024
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
27
(202,734)
(198,299)
Interest paid
(68,708)
(23,591)
Income taxes refunded/(paid)
40,072
(94,310)
Net cash outflow from operating activities
(231,370)
(316,200)
Investing activities
Purchase of intangible assets
-
(106,907)
Purchase of tangible fixed assets
(20,095)
-
Net cash used in investing activities
(20,095)
(106,907)
Financing activities
Repayment of bank loans
(134,680)
(115,320)
Net cash used in financing activities
(134,680)
(115,320)
Net decrease in cash and cash equivalents
(386,145)
(538,427)
Cash and cash equivalents at beginning of period
236,618
654,429
Effect of foreign exchange rates
41,360
120,616
Cash and cash equivalents at end of period
(108,167)
236,618
Relating to:
Cash at bank and in hand
175,105
327,312
Bank overdrafts included in creditors payable within one year
(283,272)
(90,694)
ISDM SOLUTIONS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 28 JUNE 2024
- 16 -
2024
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
28
(145,088)
(72,540)
Interest paid
(68,708)
(23,591)
Income taxes refunded
156,473
694
Net cash outflow from operating activities
(57,323)
(95,437)
Investing activities
Purchase of intangible assets
(106,907)
Purchase of tangible fixed assets
(16,609)
Proceeds on disposal of subsidiaries
1,262
-
Net cash used in investing activities
(15,347)
(106,907)
Financing activities
Repayment of bank loans
(159,187)
(115,320)
Net cash used in financing activities
(159,187)
(115,320)
Net decrease in cash and cash equivalents
(231,857)
(317,664)
Cash and cash equivalents at beginning of period
(12,085)
305,579
Cash and cash equivalents at end of period
(245,204)
(12,085)
Relating to:
Cash at bank and in hand
38,068
78,609
Bank overdrafts included in creditors payable within one year
(283,272)
(90,694)
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 28 JUNE 2024
- 17 -
1
Accounting policies
Company information
ISDM Solutions Limited ("the company") is a private limited company domiciled and incorporated in Northern Ireland. The registered office is 10 Cromac Place, Belfast, Northern Ireland, BT7 2JB.
The group consists of ISDM Solutions Limited and all of its subsidiaries.
1.1
Reporting period
These financial statements cover an 18-month period from 1 January 2023 to 28 June 2024. The company previously prepared financial statements to 31 December annually. The extension of the reporting period was made to align the accounting reference date with internal administrative timelines. As a result, the current period is not directly comparable with the prior period, which covered a 12 month period ended 31 December 2022.
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 ISDM Solutions 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.
The financial statements are made up to 28 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
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.
1.7
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
2%-8% Straight Line
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:
Leasehold land and buildings
5% and Land not depreciated
Fixtures and fittings
25% Reducing Balance
Computers
25% Straight Line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
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.
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.
1.11
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
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.
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.
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
1
Accounting policies
(Continued)
- 21 -
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.
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 period. 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.
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
1
Accounting policies
(Continued)
- 22 -
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.
1.18
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the 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.
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
- 23 -
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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Income recognition
Income on service contracts are not recognised until the work is completed. Until that point, the income is treated as deferred income, then the income is recognised in the profit and loss account.
3
Turnover and other revenue
2024
2022
£
£
Turnover analysed by class of business
Hardware
8,552,419
5,720,893
Services
5,836,233
7,301,002
Other
-
76,979
14,388,652
13,098,874
2024
2022
£
£
Other revenue
Grants received
-
65,771
4
Exceptional item
2024
2022
£
£
Expenditure
Exceptional item
(2,363,694)
-
Exceptional item relates to the reversal of a prior year provision against a related party balance receivable which the directors are now satisfied that the balance is recoverable. After the period end, the balance owing from the related party has been converted into equity in the related party entity.
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
- 24 -
5
Operating profit
2024
2022
£
£
Operating profit for the period is stated after charging/(crediting):
Exchange losses
63,122
50,453
Government grants
-
(65,771)
Depreciation of owned tangible fixed assets
47,847
40,961
Amortisation of intangible assets
20,980
14,703
Operating lease charges
204,242
120,513
6
Auditor's remuneration
2024
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
14,150
14,150
Audit of the financial statements of the company's subsidiaries
1,500
1,500
15,650
15,650
7
Employees
The average monthly number of persons (including directors) employed by the group and company during the period was:
Group
Company
2024
2022
2024
2022
Number
Number
Number
Number
Sales
20
15
15
15
Admin
39
50
39
50
Total
59
65
54
65
Their aggregate remuneration comprised:
Group
Company
2024
2022
2024
2022
£
£
£
£
Wages and salaries
4,518,256
3,345,632
3,882,517
2,697,048
Social security costs
479,979
365,710
424,634
306,201
Pension costs
82,789
73,179
73,947
64,737
5,081,024
3,784,521
4,381,098
3,067,986
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
- 25 -
8
Directors' remuneration
2024
2022
£
£
Remuneration for qualifying services
301,664
275,912
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2022
£
£
Remuneration for qualifying services
170,156
156,539
9
Interest payable and similar expenses
2024
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
68,708
23,591
10
Taxation
2024
2022
£
£
Current tax
UK corporation tax on profits for the current period
81,309
122,276
Adjustments in respect of prior periods
(132,542)
Total current tax
(51,233)
122,276
Deferred tax
Origination and reversal of timing differences
(92,795)
97,844
Total tax (credit)/charge
(144,028)
220,120
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
10
Taxation
(Continued)
- 26 -
The actual (credit)/charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:
2024
2022
£
£
Profit before taxation
1,440,312
312,223
Expected tax charge based on the standard rate of corporation tax in the UK
338,473
59,322
Tax effect of expenses that are not deductible in determining taxable profit
3,265
Tax effect of income not taxable in determining taxable profit
(104,408)
Gains not taxable
(555,468)
Unutilised tax losses carried forward
173,604
Adjustments in respect of prior years
(132,542)
Permanent capital allowances in excess of depreciation
(11,139)
(16,404)
Research and development tax credit
28,407
Effect of overseas tax rates
208,575
79,358
Deferred Tax movement
(92,795)
97,844
Taxation (credit)/charge
(144,028)
220,120
11
Intangible fixed assets
Group
Software
£
Cost
At 1 January 2023 and 28 June 2024
378,629
Amortisation and impairment
At 1 January 2023
22,502
Amortisation charged for the period
20,980
At 28 June 2024
43,482
Carrying amount
At 28 June 2024
335,147
At 31 December 2022
356,127
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
11
Intangible fixed assets
(Continued)
- 27 -
Company
Software
£
Cost
At 1 January 2023 and 28 June 2024
378,629
Amortisation and impairment
At 1 January 2023
22,502
Amortisation charged for the period
20,980
At 28 June 2024
43,482
Carrying amount
At 28 June 2024
335,147
At 31 December 2022
356,127
12
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
25,676
35,576
368,718
429,970
Additions
20,095
20,095
At 28 June 2024
25,676
35,576
388,813
450,065
Depreciation and impairment
At 1 January 2023
34,004
333,494
367,498
Depreciation charged in the period
9,628
1,306
36,913
47,847
At 28 June 2024
9,628
35,310
370,124
415,062
Carrying amount
At 28 June 2024
16,048
266
18,689
35,003
At 31 December 2022
25,676
1,572
35,224
62,472
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
12
Tangible fixed assets
(Continued)
- 28 -
Company
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 January 2023
25,676
35,576
342,099
403,351
Additions
16,609
16,609
At 28 June 2024
25,676
35,576
358,708
419,960
Depreciation and impairment
At 1 January 2023
34,004
310,722
344,726
Depreciation charged in the period
9,628
1,306
32,095
43,029
At 28 June 2024
9,628
35,310
342,817
387,755
Carrying amount
At 28 June 2024
16,048
266
15,891
32,205
At 31 December 2022
25,676
1,572
31,377
58,625
13
Fixed asset investments
Group
Company
2024
2022
2024
2022
Notes
£
£
£
£
Investments in subsidiaries
14
1,262
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 28 June 2024
1,262
Impairment
At 1 January 2023
-
Impairment losses
1,262
At 28 June 2024
1,262
Carrying amount
At 28 June 2024
-
At 31 December 2022
1,262
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
- 29 -
14
Subsidiaries
Details of the company's subsidiaries at 28 June 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
ISDM Solutions Inc
USA
Ordinary
100.00
ISDM Solutions PTE Ltd
Singapore
Ordinary
100.00
ISDM Collaboration Solutions Limited
Ireland
Ordinary
100.00
15
Stocks
Group
Company
2024
2022
2024
2022
£
£
£
£
Finished goods and goods for resale
416,631
393,574
210,296
219,179
16
Debtors
Group
Company
2024
2022
2024
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,022,506
2,447,754
943,199
1,502,431
Amounts owed by group undertakings
-
-
-
367,869
Other debtors
3,010,645
497,864
2,932,609
434,522
Prepayments and accrued income
156,899
144,163
152,697
130,047
4,190,050
3,089,781
4,028,505
2,434,869
All trade debtors are due within one year. All trade debtors are due within the group’s normal terms which varies depending on contract and product.
Included in other debtors are amounts due from related parties of £2,876,729 (2022: £357,104), related by common directorship, are unsecured, interest free and repayable on demand.
Included in Trade debtors are amounts due from related parties of £114,615 (2022: £18,642) related by common directorship, are unsecured, interest free and repayable on demand.
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
- 30 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2022
2024
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
383,272
175,374
358,765
175,374
Trade creditors
617,474
1,427,435
580,797
1,151,656
Amounts owed to group undertakings
414,348
165,655
Corporation tax payable
16,111
27,272
17,568
28,795
Other taxation and social security
218,969
192,087
231,733
156,703
Deferred income
21
225,101
81,150
180,438
75,493
Other creditors
75,536
200,481
65,847
180,351
Accruals and deferred income
533,183
426,365
330,475
156,850
2,069,646
2,530,164
2,179,971
2,090,877
Amounts owed to group undertakings are unsecured, interest free and payable on demand.
The repayment terms of trade creditors vary depending on contract terms agreed. All trade creditors are due within one year.
Included in other creditors are amounts due to directors of £2,367 (2022: £80,944).
There is also a debenture incorporating a fixed and floating charge over the assets of the group.
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2022
2024
2022
Notes
£
£
£
£
Bank loans
19
108,333
258,333
108,333
258,333
19
Loans and overdrafts
Group
Company
2024
2022
2024
2022
£
£
£
£
Bank loans
208,333
343,013
183,826
343,013
Bank overdrafts
283,272
90,694
283,272
90,694
491,605
433,707
467,098
433,707
Payable within one year
383,272
175,374
358,765
175,374
Payable after one year
108,333
258,333
108,333
258,333
The long-term loans are secured by a legal charge over; the premises occupied by the company and its associated assets at 10 Cromac Place, Belfast, BT7 2JB.
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
- 31 -
20
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2022
Group
£
£
Accelerated capital allowances
5,049
97,844
Liabilities
Liabilities
2024
2022
Company
£
£
Accelerated capital allowances
5,049
97,844
Group
Company
2024
2024
Movements in the period:
£
£
Liability at 1 January 2023
97,844
97,844
Credit to profit or loss
(92,795)
(92,795)
Liability at 28 June 2024
5,049
5,049
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.
21
Deferred income
Group
Company
2024
2022
2024
2022
£
£
£
£
Other deferred income
225,101
81,150
180,438
75,493
22
Retirement benefit schemes
2024
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
82,789
62,982
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.
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
- 32 -
23
Share capital
Group and company
2024
2022
2024
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
24
Ultimate Controlling Party
Karen McWhirter is deemed to be the ultimate controlling party of ISDM Solutions Limited by virtue of her shareholding.
25
Related party transactions
Included in other debtors are amounts owed from related parties of £2,876,729, related by common directorship, are unsecured, interest free and repayable on demand.
Included in Trade debtors are amounts owed from related parties of £114,615 related by common directorship, are unsecured, interest free and repayable on demand.
26
Directors' transactions
Dividends totalling £Nil (2022: £Nil) were paid in the period in respect of shares held by the company's directors.
27
Cash absorbed by group operations
2024
2022
£
£
Profit after taxation
1,584,340
92,103
Adjustments for:
Taxation (credited)/charged
(144,028)
220,120
Finance costs
68,708
23,591
Amortisation and impairment of intangible assets
20,980
14,703
Depreciation and impairment of tangible fixed assets
47,847
40,961
Movements in working capital:
(Increase)/decrease in stocks
(23,057)
386,303
(Increase)/decrease in debtors
(1,100,269)
595,448
Decrease in creditors
(801,206)
(1,345,942)
Increase/(decrease) in deferred income
143,951
(225,586)
Cash absorbed by operations
(202,734)
(198,299)
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
- 33 -
28
Cash absorbed by operations - company
2024
2022
£
£
Profit after taxation
1,649,251
111,253
Adjustments for:
Taxation (credited)/charged
(260,495)
126,639
Finance costs
68,708
23,591
Amortisation and impairment of intangible assets
20,980
14,703
Depreciation and impairment of tangible fixed assets
43,029
37,972
Impairment of investment properties
1,262
Movements in working capital:
Decrease in stocks
8,883
120,518
(Increase)/decrease in debtors
(1,593,636)
932,996
Decrease in creditors
(188,015)
(1,420,365)
Increase/(decrease) in deferred income
104,945
(19,847)
Cash absorbed by operations
(145,088)
(72,540)
29
Analysis of changes in net debt - group
1 January 2023
Cash flows
28 June 2024
£
£
£
Cash at bank and in hand
327,312
(152,207)
175,105
Bank overdrafts
(90,694)
(192,578)
(283,272)
236,618
(344,785)
(108,167)
Borrowings excluding overdrafts
(343,013)
134,680
(208,333)
(106,395)
(210,105)
(316,500)
30
Analysis of changes in net debt - company
1 January 2023
Cash flows
28 June 2024
£
£
£
Cash at bank and in hand
78,609
(40,541)
38,068
Bank overdrafts
(90,694)
(192,578)
(283,272)
(12,085)
(233,119)
(245,204)
Borrowings excluding overdrafts
(343,013)
159,187
(183,826)
(355,098)
(73,932)
(429,030)
ISDM SOLUTIONS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 28 JUNE 2024
- 34 -
31
Auditor's liability limitation agreement
The directors, on behalf of the group have entered into a Limited Liability Agreement with their auditors. The auditors liability is limited to an amount which is considered fair and reasonable. This has been disclosed in line with group's legislation.
2024-06-282023-01-01falsefalseCCH SoftwareCCH Accounts Production 2025.200Mr Stephen MilnerMr Rory BranniganMrs Karen McWhirterfalseNI612900bus:Consolidated2023-01-012024-06-28NI6129002023-01-012024-06-28NI612900bus:Director12023-01-012024-06-28NI612900bus:Director22023-01-012024-06-28NI612900bus:Director32023-01-012024-06-28NI612900bus:RegisteredOffice2023-01-012024-06-28NI612900bus:Agent12023-01-012024-06-28NI612900bus:Consolidated2024-06-28NI612900bus:Consolidated2022-01-012022-12-31NI612900bus:Consolidated12023-01-012024-06-28NI612900bus:Consolidated12022-01-012022-12-31NI6129002022-01-012022-12-31NI612900core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-01-012024-06-28NI612900core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-01-012022-12-31NI6129002024-06-28NI612900bus:Consolidated2022-12-31NI6129002022-12-31NI612900core:ComputerSoftwarebus:Consolidated2024-06-28NI612900core:ComputerSoftwarebus:Consolidated2022-12-31NI612900core:ComputerSoftware2024-06-28NI612900core:ComputerSoftware2022-12-31NI612900core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2024-06-28NI612900core:FurnitureFittingsbus:Consolidated2024-06-28NI612900core:ComputerEquipmentbus:Consolidated2024-06-28NI612900core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-12-31NI612900core:FurnitureFittingsbus:Consolidated2022-12-31NI612900core:ComputerEquipmentbus:Consolidated2022-12-31NI612900core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-06-28NI612900core:FurnitureFittings2024-06-28NI612900core:ComputerEquipment2024-06-28NI612900core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-31NI612900core:FurnitureFittings2022-12-31NI612900core:ComputerEquipment2022-12-31NI612900core:ShareCapitalbus:Consolidated2024-06-28NI612900core:ShareCapitalbus:Consolidated2022-12-31NI612900core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-06-28NI612900core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-31NI612900core:ShareCapital2024-06-28NI612900core:ShareCapital2022-12-31NI612900core:RetainedEarningsAccumulatedLosses2024-06-28NI612900core:RetainedEarningsAccumulatedLosses2022-12-31NI612900core:ShareCapitalbus:Consolidated2021-12-31NI6129002021-12-31NI612900core:ShareCapital2021-12-31NI612900core:RetainedEarningsAccumulatedLosses2021-12-31NI612900core:IntangibleAssetsOtherThanGoodwill2023-01-012024-06-28NI612900core:ComputerSoftware2023-01-012024-06-28NI612900core:LandBuildingscore:LongLeaseholdAssets2023-01-012024-06-28NI612900core:FurnitureFittings2023-01-012024-06-28NI612900core:ComputerEquipment2023-01-012024-06-28NI612900core:UKTaxbus:Consolidated2023-01-012024-06-28NI612900core:UKTaxbus:Consolidated2022-01-012022-12-31NI612900bus:Consolidated22022-01-012022-12-31NI612900core:ComputerSoftwarebus:Consolidated2022-12-31NI612900core:ComputerSoftware2022-12-31NI612900core:ComputerSoftwarebus:Consolidated2023-01-012024-06-28NI612900core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-12-31NI612900core:FurnitureFittingsbus:Consolidated2022-12-31NI612900core:ComputerEquipmentbus:Consolidated2022-12-31NI612900bus:Consolidated2022-12-31NI612900core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-31NI612900core:FurnitureFittings2022-12-31NI612900core:ComputerEquipment2022-12-31NI6129002022-12-31NI612900core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-01-012024-06-28NI612900core:FurnitureFittingsbus:Consolidated2023-01-012024-06-28NI612900core:ComputerEquipmentbus:Consolidated2023-01-012024-06-28NI612900core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012024-06-28NI612900core:Subsidiary12023-01-012024-06-28NI612900core:Subsidiary22023-01-012024-06-28NI612900core:Subsidiary32023-01-012024-06-28NI612900core:Subsidiary112023-01-012024-06-28NI612900core:Subsidiary222023-01-012024-06-28NI612900core:Subsidiary332023-01-012024-06-28NI612900core:CurrentFinancialInstruments2024-06-28NI612900core:CurrentFinancialInstruments2022-12-31NI612900core:CurrentFinancialInstrumentsbus:Consolidated2024-06-28NI612900core:CurrentFinancialInstrumentsbus:Consolidated2022-12-31NI612900core:WithinOneYearbus:Consolidated2024-06-28NI612900core:WithinOneYearbus:Consolidated2022-12-31NI612900core:CurrentFinancialInstrumentscore:WithinOneYear2024-06-28NI612900core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-31NI612900core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-06-28NI612900core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-12-31NI612900core:Non-currentFinancialInstrumentscore:AfterOneYear2024-06-28NI612900core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-31NI612900core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-06-28NI612900core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-31NI612900bus:PrivateLimitedCompanyLtd2023-01-012024-06-28NI612900bus:FRS1022023-01-012024-06-28NI612900bus:Audited2023-01-012024-06-28NI612900bus:ConsolidatedGroupCompanyAccounts2023-01-012024-06-28NI612900bus:FullAccounts2023-01-012024-06-28xbrli:purexbrli:sharesiso4217:GBP