Innov8 Technology Ltd - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 03306343 (England and Wales)

INNOV8 TECHNOLOGY LTD

UNAUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTOR:

C S Maher

REGISTERED OFFICE:

5 Riverview

The Embankment Business Park

Heaton Mersey

Stockport

Cheshire

SK4 3GN

REGISTERED NUMBER:

03306343 (England and Wales)

ACCOUNTANTS:

DTE Business Advisers Limited

Chartered Accountants

The Exchange

5 Bank Street

Bury

BL9 0DN

FIXED ASSETS

Intangible assets

4

-

-

Property, plant and equipment

5

449,792

191,756

449,792

191,756

CURRENT ASSETS

Inventories

38,990

52,250

Debtors

6

5,240,829

5,068,585

Cash at bank and in hand

2,612,940

1,543,999

7,892,759

6,664,834

CREDITORS

Amounts falling due within one year

7

(3,951,346

)

(3,930,690

)

NET CURRENT ASSETS

3,941,413

2,734,144

TOTAL ASSETS LESS CURRENT LIABILITIES

4,391,205

2,925,900

CREDITORS

Amounts falling due after more than one year

8

(30,828

)

-

PROVISIONS FOR LIABILITIES

(71,953

)

(9,153

)

NET ASSETS

4,288,424

2,916,747

CAPITAL AND RESERVES

Called up share capital

48,462

48,462

Capital redemption reserve

48,461

48,461

Retained earnings

4,191,501

2,819,824

4,288,424

2,916,747

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2022.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2022 in accordance with Section 476 of the Companies Act 2006.

The director acknowledges his responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the director and authorised for issue on 3 March 2023 and were signed by:

C S Maher - Director

1.	STATUTORY INFORMATION

Innov8 Technology Ltd is a private company, limited by shares, registered in England and Wales. The company's registered number is 03306343 and the company's registered office address is 5 Riverview, The Embankment Business Park, Heaton Mersey, Stockport, SK4 3GN.

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 have been prepared under the historical cost convention.

The director is satisfied that the company is a going concern and that the financial statements are correctly prepared on this basis.

Revenue

Revenue represents the value of goods and services provided in the year, excluding value added tax and discounts. Sale of goods are recognised when the company has delivered the products to the customer. Service revenues are recognised as those services are provided to customers.

Support contracts that run for a period beyond the financial year end have been apportioned on a time basis.

Goodwill

Goodwill has been written off over three to ten years.

Property, plant and equipment

Depreciation is on assets in order to write off their cost less estimated residual value over their useful economic lives at the following rates:

Computer equipment

- 33% on cost

Fixtures and fittings

- 15% on reducing balance

Motor vehicles

- 25% on reducing balance

Computer software

- 33% on cost

The residual values, estimated useful lives and depreciation method of property, plant and equipment are reviewed, and adjusted as appropriate, at each statement of financial position date. The effects of any revision are recognised in the income statement when the change arises.

Government grants

Grant income that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.

Inventories

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

Cost is deemed as actual purchase price.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the statement of financial position ate. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Leasing commitments

Assets held under hire purchase are initially recognised as assets of the company at their fair value at the inception of the lease. The corresponding liability to the lessor is included in the statement of financial position. Lease payments are apportioned between finance expenses and reduction of the hire purchase obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in the income statement.

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 the income statement in the period to which they relate.

Critical accounting estimates and judgements

In the application of the company's accounting policies, the directors are required to make estimates and judgements. The estimates are based on historical experience and other relevant factors. Actual results may differ from these estimates.

The estimates are continually evaluated. Revisions to accounting estimates are recognised in the period in which the estimate is revised.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

The directors use judgement to provide against bad debts using knowledge of customers and experience. These provisions are revisited after the statement of financial position date to ensure appropriate.

Making judgement on the level of revenue to defer at the year end is considered a key estimate and is based on the level of the sales contract left due to the customer at the year-end date.

Estimating the useful economic life of an asset and the anticipated residual value are considered the key judgement in calculating an appropriate depreciation charge.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties and loans to related parties.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the income statement.

Basic financial liabilities are initially measured at transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Dividends

Equity dividends are recognised when they become legally payable and are no longer at the discretion of the company.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 31 (2021 - 31 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 April 2021

and 31 March 2022

518,986

AMORTISATION

At 1 April 2021

and 31 March 2022

518,986

NET BOOK VALUE

At 31 March 2022

-

At 31 March 2021

-

5.	PROPERTY, PLANT AND EQUIPMENT

Plant and

machinery

etc

£

COST

At 1 April 2021

399,633

Additions

276,438

At 31 March 2022

676,071

DEPRECIATION

At 1 April 2021

207,877

Charge for year

18,402

At 31 March 2022

226,279

NET BOOK VALUE

At 31 March 2022

449,792

At 31 March 2021

191,756

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Plant and

machinery

etc

£

COST

Additions

51,191

At 31 March 2022

51,191

DEPRECIATION

Charge for year

828

At 31 March 2022

828

NET BOOK VALUE

At 31 March 2022

50,363

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

1,420,654

1,349,630

Amounts owed by group undertakings

1,876,614

1,733,362

Amounts owed by other related parties

1,914,254

1,902,854

Other debtors

29,307

82,739

5,240,829

5,068,585

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Hire purchase contracts

9,998

-

Trade creditors

210,525

154,553

Amounts owed to group undertakings

657,821

657,821

Taxation and social security

612,156

810,997

Other creditors

2,460,846

2,307,319

3,951,346

3,930,690

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Hire purchase contracts

30,828

-

9.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Hire purchase contracts

40,826

-

Clydesdale Bank PLC (Trading as Both Clydesdale Bank and Yorkshire Bank) held a fixed and floating charge over all the property or undertaking of the company. This was satisfied post year end.

Following the year end National Westminster Bank PLC hold a fixed and floating charge over all the property or undertaking of the company.

Hire purchase contracts are secured over the assets to which they relate.

10.	DIRECTOR'S ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31 March 2022 and 31 March 2021:

2022

2021

£

£

C S Maher

Balance outstanding at start of year

26,060

-

Amounts advanced

-

26,060

Amounts repaid

(26,060

)

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

-

26,060

The above advances are unsecured, interest free and repayable on demand. During the year there were no individual advances that were considered by the directors to be material. The maximum overdrawn balance for C S Maher was £26,060.

11.	RELATED PARTY DISCLOSURES

Amounts included in debtors due from other related parties as at the year end was £1,914,254 (2021: £1,902,854).

The balance is interest free and repayable on demand.

The company also paid rent totalling £84,000 (2021: £84,000).