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 2023
The directors present their report and the financial statements for the year ended 31 March 2023.
The profit for the year, after taxation, amounted to £350,678 (2022 - £550,959).
Further information on the performance of the company during the year and the company's state of affairs at the balance sheet date are noted within the strategic report on page 3 and 4.
Dividends amounting to £Nil (2022 - £249,332) were paid during the year. The directors do not recommend the payment of any further dividends.
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 2023.
The company is involved in numerous research and development projects.
The company is a close company within the meaning of S.439 CTA 2010.
Page 1
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Directors' report (continued)
For the year ended 31 March 2023
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 2023
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 prevailing during the year under review.
The company employs 219 (2022 - 205) 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. The company's turnover has continued to grow, increasing from £12,488,252 for the year ended 31st March 2022 to £13,904,289 for the year ended 31st March 2023. 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 continued low recruitment costs of 1.3% of turnover (2022 - 1.2%). 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 Governmental and public body spending and the overall strength of the economy.
Recruitment costs - the directors are pleased that recruitment costs as a percentage of turnover remain low at 1.3% (2022 - 1.2%). The directors expect that this percentage will gradually rise as the directors continue to see a difficult labour environment with a shortfall of qualified candidates.
Margin - the directors confirm that the operating profit margin has decreased to 0.4% (2022 - 3%) due to additional staff retention costs incurred during the year. 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 £350,578 (2022 - £301,627) 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 29 September 2023 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 2023, 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.
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 2023
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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 10 to 16 form part of these financial statements.
Page 9
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Notes to the financial statements
For the year ended 31 March 2023
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:
Page 10
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Notes to the financial statements
For the year ended 31 March 2023
2.Accounting policies (continued)
The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's Balance sheet when the company becomes party to the contractual provisions of the instrument.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
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Notes to the financial statements
For the year ended 31 March 2023
2.Accounting policies (continued)
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.
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Notes to the financial statements
For the year ended 31 March 2023
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Notes to the financial statements
For the year ended 31 March 2023
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 2023
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 £565,529 (2022 - £515,074). Contributions totaling £102,814 (2022 - £86,015) 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 2023
The parent entity 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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