The directors present the strategic report for the year ended 31 December 2024.

IVS Group (‘the company’) is the parent company of a group of companies (‘the group’).

The principal activities of the company during the year were;

• Event retail management.

• Design, production and supply.

• Accounting and logistics

The result and position of the group as at the year ending 31 December 2024 are set out in the Group Statement of Comprehensive Income, Group Balance Sheet and Group Statement of Changes in Equity on pages 10, 11 and 14 respectively.

The result and position of the company's results were in line with Directors' expectations.

The company is faced with similar risks and uncertainties as other companies operating in the music merchandising business, including:

• Dependence on touring cycles and artist activity, revenue is heavily dependent on artists’ touring schedules, release cycles, and promotional activity. Any reduction, postponement, or cancellation of tours can significantly impact sales.

• The music merchandise sector is highly competitive, with numerous onsite retailers, online platforms, and competitors competing for market share. Competitive pressure may affect pricing, margins, and customer loyalty.

• Consumer spending on discretionary items such as event retail merchandise can be sensitive to broader economic conditions. Economic downturns may lead to reduced demand.

All risks and uncertainties are regularly monitored by the Directors and Senior Management team.

In the opinion of the directors, the group is in a strong position at the year-end having enjoyed good results during the year resulting in shareholders' funds increasing by £701,548 to £1,885,075.

The company’s management team use various indicators to monitor the business such as monthly management accounts and assessing margins by different revenue streams. The key performance indicators for the year ended 31 December 2024, with comparatives for the year ended 31 December 2023.    

             2024                 2023    

Turnover     24,875,745 16,015,983    

Gross Profit Margin 20.39%             18.81%    

Net Profit Margin     5.9%                 3.6%    

Turnover:        

Turnover increased by 55.32% on the prior year, driven primarily by the strong performance of our event management business and business development, with 2024 proving to be a successful year for the Group.

The outlook for future years remains positive. Demand for live events continues to be high, retail demand for merchandise is increasing. These factors collectively provide confidence in sustaining growth going forward.

Net profit margin:        

The company’s net profit margin increased from 3.62% to 5.9%. This was due to a change in the sales mix year on year.    

Financial Risk Management Objectives and Policies:             

The group uses a variety of financial instruments including cash, tour settlements and trade payables that arise directly from its operations. The directors are of a view that the main risks arising from the company's financial instruments are exchange rate risk, interest rate risk, liquidity risk and credit risk, as summarised below.        

Exchange rate risk:        

Fluctuations in foreign exchange rates present a risk to the business, as certain sales and costs are denominated in overseas currencies but must ultimately be settled in Serling or euro. Movements in exchange rates may therefore impact margins and overall financial performance.

Interest rate risk:        

The company has limited bank borrowings, and therefore the directors consider the level of exposure to interest rate risk to be minimal at this stage.

Liquidity risk:            

The company manages its financial risk by ensuring liquidity is sufficient to meet future needs, and that sufficient funding is in place before any new commitments are entered into. Cash flow forecasts are monitored by directors on a regular basis    

Credit risk:            

The principal credit risk arises from trade debtors. Management approves credit terms for all new customers and regularly review the credit position of existing accounts.

The directors have regard to the matters set out in Section 172 (1) of the Companies Act 2006 when performing their duties under Section 172 to promote the success of the company. The ways in which the directors engage with key stakeholders and consider their needs is outlined below.

The directors and management of IVS Group Ltd and its subsidiaries are constantly assessing the implications of decisions made, in terms of the both the potential long-term consequences for the company, together with the impact on our stakeholders, including shareholders, clients, employees, suppliers and customers, the wider community and the environment.

Shareholders:

The company is owned by Namita Kapoor, Karan Kapoor, Gaurav Kapoor and Suhani Kapoor. The management regularly communicate with the shareholders regarding strategy and performance through a number of different channels:

1) Monthly management accounts.

2) Quarterly shareholder meetings.

3) Detailed and accurate financial budgets and forecasts.

4) Consultation and approval of any significant investment and acquisition decisions.

Event Retail Management:

IVS Group maintains strong and strategic business relationships that support its position as a leading global merchandise management provider, working with many of the world’s foremost brand owners across sports, music, and live entertainment. Our experienced teams collaborate closely with stadiums, arenas, merchandise companies, and promoters to deliver market-leading retail management at events worldwide.

We provide fully integrated retail operations covering operational execution, staffing, sales management, stock control, logistics, and detailed financial reconciliation. This end-to-end capability ensures efficient operations for clients and an enhanced experience for fans. Our group structure—combining centralised management with specialist operational teams—ensures greater efficiency, consistency, and scalability across all activities, enabling reliable, high-quality service at every event.

Alongside our established touring and venue-based operations, we continue to identify new opportunities in global markets, supporting the development of long-term strategic partnerships.

Design, Production & Supply:

IVS Group offers comprehensive merchandise solutions, providing both partial and fully managed services from design and manufacturing through to sales, accounting, and supply. Our in-house production team develops and delivers merchandise ranges for live entertainment and location-based attractions globally, transforming creative concepts into high-quality products through rigorous sampling, testing, and manufacturing processes. This capability has earned the trust of many of the industry’s leading merchandise suppliers.

Our long-standing partnerships with manufacturers enable us to offer strong production quality, low minimum order quantities, competitive pricing, and reliable lead times.

Accounting & Logistics:

Our accounting and logistics functions form the operational backbone of the Groups global retail activities. The integrated structure supports efficient financial control, stock management, and merchandise movement across multiple territories.

Our logistics teams manage procurement, warehousing, international transport, and event-specific distribution, ensuring timely delivery and optimal inventory levels.

The accounting teams deliver accurate sales reporting, cash management, reconciliation, and client settlements through centralised processes and strong internal controls, ensuring transparency and consistency across all operations.

Together, these functions enhance efficiency, reduce operational risk, and support seamless retail execution for clients and customers.

Employee Engagement:

Employees remain fundamental to the success of the Group. An engaged, skilled, and dynamic workforce is essential, particularly during a period of continued growth, innovation, and transformation.

The Group’s Human Resources department oversees all aspects of our people strategy, ensuring employees are supported throughout their careers. Our Learning and Development team delivers high-quality training programmes and professional development pathways, complemented by wellbeing initiatives—including mindfulness support—to promote a healthy and balanced working environment.

In the music and live entertainment industry, people are at the heart of everything we do. Looking after our staff is essential, and we remain committed to creating a positive, supportive, and inspiring workplace where our teams can thrive.

The Environment:

IVS Group works closely across its supply chain to ensure that we deliver environmentally responsible products to the marketplace. We are committed to our environmental and social responsibilities

We actively reduce the use of unnecessary plastics and utilise FSC-certified materials for packaging and shipping. In addition, we have adopted photographic approval processes to minimise the need for physical sampling and travel, helping to lower our overall carbon footprint. These measures reflect our ongoing efforts to operate sustainably while supporting responsible production practices.

Maintaining a reputation for high standards of business conduct:

The Group maintains a comprehensive code of conduct, which is reaffirmed annually by all employees to promote ethical behaviour and raise awareness of potential ethical risks. We set high standards of conduct across the organisation and have established clear internal procedures for employees to report any concerns confidentially and without hesitation.

The directors are aware of the high-profile nature of the clients we service and make every effort to protect the reputation of the brand.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 December 2024.

The principal activity of the group continued to be the production and provision of retail services for global brands, primarily in the sectors of music, gaming, and sporting events. Additionally, the company provided professional consultation and management services to its subsidiaries.

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £330,000. The directors do not recommend payment of a further dividend.

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

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 prepared the group and parent company 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 parent 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 United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and parent 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 parent company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and parent 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 parent company, and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principle risks and uncertainties

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.

We have audited the financial statements of IVS Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise 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 31 December 2024 and of the group's profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor'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:

• The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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.

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 group's and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or parent company or to cease operations, or have no realistic alternative but to do so.

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.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation

• We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.

• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

• We inquired of management and those charged with governance as to any known instances of noncompliance or suspected non-compliance with laws and regulations.

Based on this understanding, we designed specific appropriate audit procedures to identify instances of noncompliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

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.

Other matters which we are required to address

The comparative financial information for the year ended 31 December 2023, whilst audited for parent company balances, has not been audited for subsidiary company balances. . Accordingly, we do not express an opinion on the comparative figures. Our opinion on the current period’s financial statements is not modified in respect of this matter.

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

As permitted by section 408 of the Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £412,106 (2023 - £326,821)

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

IVS Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 13, The Metro Centre, St Johns Road, Isleworth, Middlesex, TW7 6NJ.

The group consists of IVS Group Limited and all of its subsidiaries.

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

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

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.

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.

The consolidated group financial statements consist of the financial statements of the parent company IVS Group 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 December 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.

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.

At the time of approving the financial statements, the directors have a reasonable expectation that the group and parent company have 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.

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. Turnover is generated from the production and provision of retail services for global brands, primarily in the sectors of music, gaming, and sporting events. Additionally, the company provided professional consultation and management services to its subsidiaries.

Due to the nature of the business and the way the group contracts with its customers for different events, we are required by accounting standards to account for certain arrangements as if the group is 'agent' rather than 'principle'. For arrangements where we are deemed to be an 'agent', the revenue recognised in the financial statements is the net amount due to the group rather than gross sales takings.

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated and included as intangible assets in the balance sheet.

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:

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:

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.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Fixed asset investments are stated at cost less provision for permanent diminution in value.

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.

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.

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.

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.

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, 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, 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.

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.

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.

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, 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.

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.

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

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.

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

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

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.

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

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.

Included within bank loans is £108,500 (2023 - £170,500) which was obtained through the Coronavirus Business Interruption Loan Scheme (CBILS). This loan was interest and repayment free for the first 12 months and is to be repaid over 5 years ending in September 2026. The government has provided a 80% guarantee on this loan with the remaining 20% covered by the members.

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.

In the directors' opinion there are no significant judgements or key sources of estimation uncertainty.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 0).

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

The impairment losses in respect of financial assets are recognised in other gains and losses in the profit and loss account.

The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors at the 31 December 2024. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

The bank loan is secured by a fixed charge over the investment property and a mortgage debenture over the company's assets.

Of the balance payable after one year, £Nil (2023: £37,263) relates to amounts payable after 5 years by monthly instalments.

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.

The company has allotted its 100 Ordinary shares into 52 'A' shares and 16 Ordinary 'B', 'C' and 'D' shares, respectively.

All shares each carry one vote.

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:

The remuneration of key management personnel is as follows.

During the year the company made sales of £8,163 (2023: £7,407) to IVS USA LLC and purchases of £7,547 (2023: £3,332), a company under common control. At the year-end £4,691 (2023: £4,075) was outstanding and included within debtors, which is repayable on demand.

During the year the company paid rent of £132,000 (2023: £78,000) to IVS Limited a company under common control.

The company is exempt from disclosing other related party transactions per FRS 102 paragraph 33.1A as they are with other companies that are wholly owned within the group.

Group

Advances made to the directors during the year totalled £204,141 however £Nil was repaid prior to the year end and therefore a balance of £204,141 (2023 - £180,477) was due at the year end and is included in Other debtors. Two of the loans are interest free and repayable on demand.and the other accruing interest of 3.5%pa and is also repayable on demand.

Company

An advance was made to one director during the year which totalled £62,820 however £Nil was repaid prior to the year end and therefore a balance of £62,820 (2023 - £60,000) was due at the year end and is included in Other debtors. The loan is interest free and repayable on demand

Dividends paid to the company's directors during the year amounted to £290,000 (2023 - £300,500).