| IRSMarketing Limited |
| Notes to the Accounts |
| for the year ended 31 March 2021 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Going concern |
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The directors have a reasonable expectation that despite the risks and uncertainties arising out of the Covid-19 pandemic, the company has adequate resources, liquidity and bank facilities together with the continued engagement with Govenrment support funding schemes, to continue in operational existence for the foreseeable future. They are thus continuing to prepare these financial statements on the basis of the company being a going concern. |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Grant income |
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Income received under the Coronavirus Job Retention Scheme is accounted for on an accruals basis. |
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Freehold buildings |
over 50 years |
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Leasehold land and buildings |
over the lease term |
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Plant and machinery |
10-20% straight line |
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Fixtures, fittings, tools and equipment |
over 5-10 years |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Provisions |
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Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
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Foreign currency translation |
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Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss. |
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Leased assets |
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A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Employees |
2021 |
|
2020 |
| Number |
Number |
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Average number of persons employed by the company |
51 |
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54 |
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| 3 |
Intangible fixed assets |
£ |
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Goodwill: |
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Cost |
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At 1 April 2020 |
399,000 |
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At 31 March 2021 |
399,000 |
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Amortisation |
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At 1 April 2020 |
399,000 |
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At 31 March 2021 |
399,000 |
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Net book value |
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At 31 March 2021 |
- |
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Goodwill is being written off in equal annual instalments over its estimated economic life of 5 years. |
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| 4 |
Tangible fixed assets |
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Plant and machinery etc |
| £ |
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Cost |
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At 1 April 2020 |
254,560 |
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At 31 March 2021 |
254,560 |
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Depreciation |
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At 1 April 2020 |
192,212 |
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Charge for the year |
23,696 |
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At 31 March 2021 |
215,908 |
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Net book value |
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At 31 March 2021 |
38,652 |
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At 31 March 2020 |
62,348 |
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| 5 |
Debtors |
2021 |
|
2020 |
| £ |
£ |
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Trade debtors |
608,069 |
|
868,142 |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
|
281,780 |
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- |
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Other debtors |
261,048 |
|
337,568 |
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1,150,897 |
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1,205,710 |
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Included in other debtors are prepayments and accrued income of £71,574 (2020: £96,550). |
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| 6 |
Creditors: amounts falling due within one year |
2021 |
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2020 |
| £ |
£ |
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Trade creditors |
20,416 |
|
72,145 |
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Taxation and social security costs |
204,655 |
|
248,189 |
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Deferred income |
400,952 |
|
520,385 |
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Other creditors |
14,993 |
|
31,308 |
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|
641,016 |
|
872,027 |
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| 7 |
Other financial commitments |
2021 |
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2020 |
| £ |
£ |
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Total future minimum payments under non-cancellable operating leases |
|
25,702 |
|
60,330 |
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The company has entered into a receivables financing agreement with Factor 21 PLC. Some of the IRSMarketing Ltd bank facilities are secured by way of a fixed and floating charge over the assets of the company. |
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| 8 |
Loans to directors |
|
Description and conditions |
B/fwd |
Paid |
Repaid |
C/fwd |
| £ |
£ |
£ |
£ |
|
Loan 1 |
240,858 |
|
- |
|
(240,858) |
|
- |
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Loan 2 |
- |
|
159,742 |
|
- |
|
159,742 |
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Loan 3 |
160 |
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- |
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(160) |
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- |
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Loan 4 |
- |
|
26,660 |
|
- |
|
26,660 |
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|
241,018 |
|
186,402 |
|
(241,018) |
|
186,402 |
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During the year, the company advanced funds to directors of the company who also held a participating interest in the company, until the Group re-organisation, at which point they held a participating interest in the parent company. Interest was charged on all loans at the HMRC authorised rate for beneficial loans. There are no fixed terms of repayment for any of the loans. |
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| 9 |
Controlling party |
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The ultimate controlling party is Mr I Borrowman, who own 80% of the total issued share capital of IRSGroup (Global) Limited, which in turn owns 100% of the issued shares in the company. |
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| 10 |
Other information |
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IRSMarketing Limited is a private company limited by shares and incorporated in England. Its registered office is: |
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March House |
|
Murdock Road |
|
Bicester |
|
Oxfordshire |
|
OX26 4PP |
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On 22 January 2021, as part of a group restructuring, the entire share capital of IRSMarketing Limited was aquired by IRSGroup (Global) Limited. The parent company, IRSGroup (Global) Limited, is a private company limited by shares and incorporated in England, which shares the same registered office as IRSMarketing Limited. |
