ACCOUNTS - Final Accounts preparation
ACCOUNTS - Final Accounts preparation
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Company information
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Contents
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Directors' report
For the year ended 31 March 2021
The directors present their report and the financial statements for the year ended 31 March 2021.
The profit for the year, after taxation, amounted to £214,598 (2020 - £557,298).
Further information on the performance of the company during the year and the company's state of affairs at the balance sheeet date are noted within the strategic report on page 3 and 4.
The directors do not recommend the payment of a dividend.
The directors are not aware of any likely future developments which would have a significant effect on the company.
The directors who served during the year were:
There have been no events subsequent to the year end which materially affect the results for the year or the company's state of affairs at 31 March 2021.
The company is involved in numerous research and development projects.
The company is a close company within the meaning of S.439 CTA 2010.
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Directors' report (continued)
For the year ended 31 March 2021
The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Under section 487(2) of the Companies Act 2006, Clay Ratnage Strevens & Hills will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on
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Strategic report
For the year ended 31 March 2021
The company's principal activity is that of employment services and there was no change in this activity during the year.
The directors are pleased with the overall performance of the company, having regard to the market conditions prevailaing during the year under review.
The company employs 196 (2020 - 202) members of staff who service the requirements of the group's trading entities which are multi-disciplinary design practices operating throughout Central England, East Anglia, London and the South East. Results have suffered during the year as a result of Covid-19. Some staff were furloughed during the period, but the majority were able to continue to work remotely. As the year has progressed, and Covid restrictions have been lifted, turnover has begun to increase in line with previous years. As a result, the company's turnover has decreased from £11,233,524 for the year ended 31st March 2020 to £10,113,831 for the year ended 31st March 2021. The directors continually invest time and finances into the ongoing research and development aspects of project work by its employees. This has resulted in continued excellent recovery rates for project work and they continue to achieve a low taxation environment for the company. The directors have focused on staff wellbeing and the support packages provided, which has assisted in low recruitment costs of 1.2% of turnover (2020 - 1.6%). Due to the impact of Covid-19, the company has taken advantage of the Government's Furlough Scheme, receiving grants totalling £630,526 for the year ended 31st March 2021. The company's cash resources are monitored closely by the directors, alongside the business terms offered to its customers to ensure the timely recovery of its debts and to ensure liabilities can be met as they fall due. Overall the directors consider that the company's reserves are sufficient to ensure the ongoing trade of the company.
The principal risks and uncertainties identified by the directors relate to the current Covid pandemic, Governmental and public body spending.
The current Covid-19 pandemic has presented various strategic and operational difficulties throughout the industry, the effects of which have been closely monitored and appropriate responses made. The company regards its employee and customer safety to be a priority and has taken the relevant steps to ensure that both employees and customers are safeguarded where possible from the virus. The company was able to shift all of its operations from its offices to home working within a short time frame and thus staff were able to continually work through the nationwide lockdown. The directors, however, anticipated that profitability would be impacted in the short term due to Covid-19, as a minority of staff were furloughed for a period of time.
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Strategic report (continued)
For the year ended 31 March 2021
Recruitment costs - the director are pleased that recruitment costs as a percentage of turnover remain low at 1.2% (2020 - 1.6%). The directors expect that this percentage will gradually rise as the company begins to see demand increase after Covid-19.
Margin - the directors confirm that the margin has reduced to -0.8% (2020 - 1.3%) due to additional legal costs related to Covid-19 and the increased non-chargeable staff costs relating to furlough. It is expected that margins will improve in the short to medium term as the company recovers from the pandemic. The company's net value - the directors confirm that the net value has increased by £214,598 (2020 - £557,298) during the year due to the continued profitability and the R&D tax credits which the company received during the year.
This report was approved by the board on 16 September 2021 and signed on its behalf.
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Independent auditors' report to the members of Ingleton Wood Services Limited
We have audited the financial statements of Ingleton Wood Services Limited (the 'company') for the year ended 31 March 2021, which comprise the Statement of income and retained earnings, the Balance sheet and the related notes, including a summary of 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).
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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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 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 Auditors' 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.
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Independent auditors' report to the members of Ingleton Wood Services Limited (continued)
In our opinion, based on the work undertaken in the course of the 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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Independent auditors' report to the members of Ingleton Wood Services Limited (continued)
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 Auditors' 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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
To identify risks of material misstatement due to fraud, we assess events or conditions that could indicate an incentive or pressure to commit fraud or provide an opportunity to commit fraud. Our risk assessment procedures include:
∙Obtaining an understanding of the legal and regulatory frameworks applicable to the company and the sector in which they operate.
∙Obtaining an understanding of how the company is complying with those legal and regulatory frameworks by making enquiries to the company's accounting department and management.
∙Assessing the susceptibility of the company's financial statements to material misstatement caused by fraud or other irregularities, by undertaking the following procedures:
- Identifying and assessing the design effectiveness of controls which management have in place to prevent and detect fraud.
- Understanding how those charged with governance consider and address the potential for override of controls and management bias.
- Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations.
- Assessing the extent of compliance with the relevant laws and regulations.
- Assessing the extent to which pressures exist which may increase the risk of fraudulent revenue recognition.
Potential fraud risks that had been identified throughout the planning and commencement of the audit were communicated to the audit team, as well as potential risks pertaining to the Group of which the company is a member.
The inherent limitations of audit present an unavoidable risk that we, the auditors, may not detect some material misstatements within the financial statements despite proper planning and performance of our duties as auditors. Equally, there remains a risk of the non-detection of fraud which could involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. The audit procedures carried out are designed to detect material misstatements within the financial statements. We take no responsibility for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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Independent auditors' report to the members of Ingleton Wood Services Limited (continued)
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 Auditors' 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.
Clay Ratnage Strevens & Hills
for and on behalf of Clay Ratnage Strevens and Hills
Statutory Auditors
Construction House
Runwell Road
Essex
SS11 7HQ
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Statement of income and retained earnings
For the year ended 31 March 2021
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Balance sheet
As at
The financial statements were approved and authorised for issue by the board; and were signed on its behalf on
The notes on pages 11 to 16 form part of these financial statements.
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Notes to the financial statements
For the year ended 31 March 2021
Ingleton Wood Services Limited is a private company limited by shares, incorporated in England and Wales. Its registered office is 10 Alie Street, London, United Kingdom, E1 8DE.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The following principal accounting policies have been applied:
Grants of a revenue nature are recognised in the Statement of income and retained earnings in the same period as the related expenditure.
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Notes to the financial statements
For the year ended 31 March 2021
2.Accounting policies (continued)
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Notes to the financial statements
For the year ended 31 March 2021
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Notes to the financial statements
For the year ended 31 March 2021
There were no factors that may affect future tax charges.
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Notes to the financial statements
For the year ended 31 March 2021
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charge represents contributions payable by the company to the fund and amounted to £443,189 (2020 - £530,600). Contributions totalling £85,921 (2020 - £69,569) were payable to the fund at the balance sheet date and are included in creditors.
The directors have elected to take advantage of the exemption under FRS102 Section 33 not to disclose transactions with entities that are part of the group on the grounds that the consolidated financial statements in which Ingleton Wood Services Limited has been included are publicly available.
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Notes to the financial statements
For the year ended 31 March 2021
The parent company of the smallest group within which Ingleton Wood Services Limited belongs is Ingleton Wood LLP, a limited liability partnership incorporated in England and Wales. The registered office and principal place of business of Ingleton Wood LLP is 10-12 Alie Street, London, United Kingdom, E1 8DE.
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