INSCAPE_INTERIORS_LIMITED - Accounts

The directors present their annual report and financial statements for the year ended 31 March 2022.

The principal activity of the company continued to be that of the manufacture and installation of laminate products.

Welcome to our 2021/22 directors’ report which can be read alongside our financial accounts, and which offers further context to what has been, overall, a successful period for the business.

Laying solid foundations for success

Our performance in the latest period has been helped in no small part by the decisions we took to invest heavily in new plant and machinery throughout 2021, spending over £300k.

These investments were made to improve automation, increase capacity and de-risk the business from the lack of labour available to our sector. They have made us more agile and responsive, allowing for reduced lead times where required by our customers.

A profitable year despite the strong headwinds

The trading challenges in the period have included the continued fall out from Brexit, a second full year of impacts from the Covid 19 pandemic, and the war in Ukraine. These factors have all combined to create supply chain instability and raw material cost volatility for our sector.

Despite these challenges, the directors are pleased to return a small profit for this period. We will continue to make decisions that will support us to maintain and grow profitability and protect the long term interests of the company and our people.

Strengthening relationships to achieve growth

Our combined senior management team experience has allowed us to cement key relationships through both the supply chain and our customer base. Along with the investments made, this helps us to be in the best position to take advantage of the post-Covid recovery.

Our clear strategy for growth is based on further strengthening existing customer relationships to win repeat business and targeting more large-scale projects with both new and existing customers in new geographies.

Focusing on people and skills

In 2022, we expanded our apprentice and training programme and continued strengthening the knowledge transfer relationships we have with schools, colleges, and universities across the region.

One of our objectives for the period ahead is to continue our investment in people and training to ensure our team has the skills required for achieving success, particularly in an environment of continued automation.

Looking ahead with optimism and confidence

At the time of writing, there is a challenging outlook for the UK economy and some signs of a slowdown in the UK construction sector. However, everything that’s in our control is being well managed. We have a strong management team, a lean company structure, an agile workforce, and a strong order book.

The investments we have already made in the business stand us in good stead, ready to benefit when the economy returns to growth. The directors are confident that the foundations laid through this period will pay dividends and are expecting significant growth throughout 2022-23.

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

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

The notes on pages 5 to 8 form part of these financial statements.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Inscape Interiors Limited is a private company limited by shares incorporated in England and Wales. The registered office is Lower Healey Business Park, Froom Street, Chorley, Lancashire, PR6 9AR.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

Turnover represents the value of goods sold and services provided, excluding value added tax, for which the right to consideration has been obtained.

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.

Development costs are being amortised evenly over their estimated useful life of five years.

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 credited or charged to profit or loss.

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Finished goods are valued at selling price.

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 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 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 when the company has 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.

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a 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.

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.

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

Hire purchase agreements totalling £353,021 (2021- £395,701) are secured against the asset to which they relate.