Inovus Limited - Accounts to registrar (filleted) - small 18.2
Inovus Limited - Accounts to registrar (filleted) - small 18.2
REGISTERED NUMBER: |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2021 |
FOR |
INOVUS LIMITED |
INOVUS LIMITED (REGISTERED NUMBER: 07919081) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2021 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
INOVUS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JANUARY 2021 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountant |
Richard House |
9 Winckley Square |
Preston |
Lancashire |
PR1 3HP |
INOVUS LIMITED (REGISTERED NUMBER: 07919081) |
BALANCE SHEET |
31 JANUARY 2021 |
31.1.21 | 31.1.20 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Stocks |
Debtors | 6 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 7 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
8 |
( |
) |
( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 9 |
Share premium |
Retained earnings |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
INOVUS LIMITED (REGISTERED NUMBER: 07919081) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2021 |
1. | STATUTORY INFORMATION |
Inovus Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. |
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts are rounded to the nearest £. The financial statements have been prepared under the historical cost convention. |
The prior year profit and loss account has been restated by reallocating production operatives' salaries from administrative expenses to cost of sales as this is considered to be a more accurate measure of gross trading profit performance. |
Going concern |
The directors have prepared financial and cash flow forecasts for a period at least 12 months following the approval of these financial statements. |
In addition, and at the time of signing these financial statements, the directors continue to respond to the challenges currently being faced as a consequence of the government's social distancing and home working measures implemented to address the Covid 19 pandemic. A series of forecast sensitivities have again been prepared to stress test the business for a range of scenarios and in particular their effects on cash resources. |
Despite the challenges faced during the first 12 months of the Covid 19 pandemic, the company has been resilient and has continued to grow during this period. |
Following a review of the financial and cash flow forecasts, including sensitivities, the directors have concluded that it remains appropriate to prepare these financial statements on the going concern basis. The directors have a reasonable expectation that the company will continue to have adequate resources to continue to operate for the foreseeable future. |
Turnover |
Turnover represents the total invoice value, excluding value added tax, of sales made during the year and derives from the provision of goods and services falling within the company's ordinary activities. Sales are recognised at the point at which the company has fulfilled its contractual obligations to the customer. |
Revenue from the sales of goods is recognised when the significant risks and rewards of ownership of the goods has passed to the buyer [usually on despatch 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 company and the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
INOVUS LIMITED (REGISTERED NUMBER: 07919081) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2021 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
Freehold property - 2% on cost |
Improvements to property - 10% on cost |
Plant and machinery - 25% on cost |
Fixtures and fittings - 25% on cost |
Computer equipment - 25% on cost |
The gain or loss arising on disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss. |
Impairment of Fixed Assets |
At each reporting end date, the company reviews the carrying amounts of its tangible fixed assets to determine whether there is any indication that those assets have suffered an impairment loss. |
If 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. |
Government grants |
Grants are financial assistance provided by the government in the form of a transfer of resources in return for past or future compliance with specified conditions relating to the operating activities of the company. A grant that becomes receivable as compensation for expenses or losses it covers is recognised as income in the period in which the company becomes entitled to receive the grant. Where part of a grant relates to an asset, it is deferred and amortised to the profit and loss account over the life of the asset. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
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. |
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 the profit or loss account. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks. |
INOVUS LIMITED (REGISTERED NUMBER: 07919081) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2021 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with 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. |
Impairment of financial assets |
Financial assets 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 the profit or loss account. |
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 company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including creditors, 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. |
Equity instruments |
Equity instruments issued by the company are recorded at the proceeds received. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company. |
INOVUS LIMITED (REGISTERED NUMBER: 07919081) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2021 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
The tax expense represents the sum of the tax currently payable and deferred tax. |
Current tax |
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases. |
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability. |
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed. |
Employee benefits |
The costs of short-term employee benefits are recognised as a liability and an expense. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
INOVUS LIMITED (REGISTERED NUMBER: 07919081) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2021 |
2. | ACCOUNTING POLICIES - continued |
Foreign exchange |
Transactions denominated in foreign currency are recorded at the rates of exchange ruling at the dates of the transactions, or at an average rate for the period if the rates do not fluctuate significantly. Monetary assets and liabilities are translated at year end exchange rates or, where appropriate, at the rates of exchange fixed under the terms of the relevant transaction. The resulting exchange rate differences are charged to the profit and loss account. |
Research and development |
The company does not capitalise research and development expenditure, instead it is written off to profit and loss account as incurred. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | INTANGIBLE FIXED ASSETS |
Other |
intangibles |
£ |
COST |
Additions |
At 31 January 2021 |
AMORTISATION |
Amortisation for year |
At 31 January 2021 |
NET BOOK VALUE |
At 31 January 2021 |
INOVUS LIMITED (REGISTERED NUMBER: 07919081) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2021 |
5. | TANGIBLE FIXED ASSETS |
Plant and |
Land and | machinery |
buildings | etc | Totals |
£ | £ | £ |
COST |
At 1 February 2020 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 January 2021 |
DEPRECIATION |
At 1 February 2020 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 January 2021 |
NET BOOK VALUE |
At 31 January 2021 |
At 31 January 2020 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.1.21 | 31.1.20 |
£ | £ |
Trade debtors |
Other debtors |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.1.21 | 31.1.20 |
£ | £ |
Bank loans and overdrafts |
Trade creditors |
Taxation and social security |
Other creditors |
Included within other creditors are amounts payable under finance leases and hire purchase contracts of £33,142 (2020: £32,400) which are secured by fixed charges on the relevant assets to which they relate. |
INOVUS LIMITED (REGISTERED NUMBER: 07919081) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2021 |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.1.21 | 31.1.20 |
£ | £ |
Bank loans |
Other creditors |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more than 5 years | 103,630 | 103,579 |
The bank loans are secured by fixed charges on the properties concerned together with a debenture over the assets of the company. |
Included within other creditors are amounts payable under finance leases and hire purchase contracts of £85,618 (2020: £99,900) which are secured by fixed charges on the relevant assets to which they relate. |
9. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.1.21 | 31.1.20 |
value: | £ | £ |
Ordinary shares | £0.00001 | 8 | 8 |
A Ordinary shares | £0.00001 | 2 | 2 |
B Ordinary shares | £0.00001 | - | - |
10 | 10 |
10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was unqualified. |
for and on behalf of |
INOVUS LIMITED (REGISTERED NUMBER: 07919081) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2021 |
11. | OPERATING LEASE COMMITMENTS |
Non- cancellable operating |
leases |
31.01.21 | 31.01.20 |
£ | £ |
Within one year | 318 | 16,091 |
Between one and five years | 8,878 | 9,164 |
9,196 | 25,255 |
12. | RELATED PARTY TRANSACTIONS |
Included within other creditors greater than 1 year is a director’s loan, which is unsecured, bears interest at 4% pa payable quarterly and the capital is redeemable in full in November 2023 by way of a single bullet repayment at that time. The amount of interest charged on the loan was £8,000 (2020: £8,000). The loan was granted under UK Immigration Rules in respect of Tier 1 (Entrepreneur) of the Points Based System. |
Two of the directors are owed £nil (2020: £1,248) by the company. No interest is due on these loans and repayments of £1,248 were made in the year. |