Del Ips Uk Limited - Accounts to registrar (filleted) - small 22.3

REGISTERED NUMBER: 11815522 (England and Wales)

DEL IPS UK LIMITED

Financial Statements for the Year Ended 31 August 2022

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

to

6

Directors:

C Mourouzides

M Skinner

Secretary:

Zedra Cosec (UK) Limited

Registered office:

New Penderel House 4th Floor

283 - 288 High Holborn

London

WC1V 7HP

Registered number:

11815522 (England and Wales)

Auditors:

Haines Watts Birmingham LLP

5-6 Greenfield Crescent

Edgbaston

Birmingham

West Midlands

B15 3BE

Fixed assets

Tangible assets

4

-

72,405

Current assets

Debtors

5

251,063

744,233

Cash at bank

-

614,812

251,063

1,359,045

Creditors

Amounts falling due within one year

6

-

1,336,320

Net current assets

251,063

22,725

Total assets less current liabilities

251,063

95,130

Provisions for liabilities

-

18,101

Net assets

251,063

77,029

Capital and reserves

Called up share capital

1

1

Retained earnings

251,062

77,028

251,063

77,029

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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 13 March 2023 and were signed on its behalf by:

C Mourouzides - Director

1.	Statutory information

Del Ips Uk Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

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.

Going concern

On 31 August 2022, the company sold its trade and assets to Ikea Limited for a consideration of £251,063. These financial statements are prepared on a wind-up basis of accounting where all assets stated at their recoverable amounts. Additionally, full provision has been made for the operating profits expected to be incurred up to the date the entity will cease to trade, 31 August 2022, and also for the estimated costs of wind-up to be borne by Ikea Limited.

The comparative numbers relating to the year ended 31 August 2021 were prepared on a going concern basis as they had been formally approved by the directors prior to the date of selling the business.

Turnover

Turnover from the provision of installation services is recognised when the respective service has been completed.

It is measured at the fair value of the consideration received or receivable, excluding discounts, value added tax and other sales taxes.

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to locaton and condition necessary for it to be capable of operating in the manner intended by management.

The company has a capitalisation threshold whereby any items with an individual value under £2,000 are not capitalised.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful livs, using the straight-line method.

Depreciation is provided on the following basis:

Leasehold improvements - 15 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

Financial instruments

The Company only enters into basic financial instrument transactions that result in the recognition of the financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and loans to related parties.

Debt instruments (other than those wholly repayable and receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Financial assets that are measured at cost and amortised costs 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 Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows, discounted at the rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the differences between an asset;s carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.

Financial assets and liabilities are offset and the net amount reported in the Balance sheet when there is an 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.

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 balance sheet 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. 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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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.

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

3.	Employees and directors

The average number of employees during the year was 133 (2021 - 131 ) .

4.	Tangible fixed assets

Improvements

to

property

£

Cost

At 1 September 2021

82,679

Disposals

(82,679

)

At 31 August 2022

-

Depreciation

At 1 September 2021

10,274

Charge for year

5,512

Eliminated on disposal

(15,786

)

At 31 August 2022

-

Net book value

At 31 August 2022

-

At 31 August 2021

72,405

5.

Debtors: amounts falling due within one year

2022

2021

£

£

Trade debtors

-

716,453

Amounts owed by group undertakings

251,063

-

Other debtors

-

86

Prepayments

-

27,694

251,063

744,233

6.

Creditors: amounts falling due within one year

2022

2021

£

£

Trade creditors

-

172,169

Amounts owed to group undertakings

-

937,896

Corporation tax

-

17,597

Social security and other taxes

-

96,697

VAT

-

52,283

Other creditors

-

37,597

Accruals and deferred income

-

22,081

-

1,336,320

7.	Disclosure under Section 444(5B) of the Companies Act 2006

The Report of the Auditors was unqualified.

We draw attention to note 9 in the financial statements which explains that the company sold its trade and assets to Ikea Limited on 31 August 2022 and therefore do not consider it to be appropriate to adopt the going concern basis of accounting preparing the financial statements. Accordingly, the financial statements have been prepared on a basis other than going concern described in the paragraph titled 'Going Concern' shown in Note 2. Our opinion is not modified in respect of this matter.

Andrew Hughes FCA (Senior Statutory Auditor)

for and on behalf of Haines Watts Birmingham LLP

8.	Related party disclosures

During the year, the company made sales of £9,181,699 (2021: £7,797,946) to related parties which are related by virtue of common ownership. The amounts due from these related parties was £925,143 (2021: £716,453).

During the year, the company made purchases of £387,849 (2021: £375,868) from related parties which are related by virtue of common ownership. The amounts owed to these related parties £46,141(2021: £160,130).

On 7th October 2021, Del IPS UK Limited undertook a short term loan of £1.2m with a related party by virtue of common ownership. The amount due to this related party at the year-end was £1.2m which is due to mature on the 6th October 2022. Interest is charged at a Risk Free Rate plus a margin of 0.18%. Interest of £9,942 (2021: £nil) has been charged to the profit and loss.

Amounts owed from/to these related parties were transferred to Ikea Limited on 31 August 2022.

9.	Important events at the statement of financial position date

On 31 August 2022, the company sold its trade and assets to Ikea Limited for a consideration of £251,063. These financial statements are prepared on a wind-up basis of accounting where all assets are stated at their recoverable amounts. Additionally, full provision has been made for the operating profits expected to be incurred up to the date the entity will cease to trade, 31 August 2022, and also for the estimated costs of wind-up to be borne by Ikea Limited.

10.	Ultimate controlling party

On 22 June 2022, the group in which Del IPS UK Limited is a subsidiary underwent a group restructure. The immediate parent company was Del IPS Company Inc. but following the restructure the immediate parent is now Ikea Limited, a company registered in England and Wales.

The Ultimate parent undertaking and its controlling party is INGKA Holding BV, a company registered in the Netherlands. INGKA Holding BV is the parent undertaking of the smallest and largest group to consolidate these financial statements. The financial statements are made publicly available from KVK, Watermolenlaan 1, PO Box 265, 3440 AG Woerden, The Netherlands.