ACCOUNTS - Final Accounts preparation

Analysis of the maturity of loans is given below:

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED - Company Information

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Registered number: 03926854

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

COMPANY INFORMATION

Directors	H Holman
	K O'Brien


Company secretary	S J Gilpin


Registered number	03926854


Registered office	3rd Floor (South)
	200 Aldersgate Street
	London
	EC1A 4HD


Independent auditors	Ryecroft Glenton
	Chartered Accountants & Statutory Auditors
	32 Portland Terrace
	Newcastle upon Tyne
	NE2 1QP

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

CONTENTS

	Page
Directors' Report	1 - 3
Independent Auditors' Report	4 - 7
Statement of Comprehensive Income	8
Balance Sheet	9
Statement of Changes in Equity	10
Notes to the Financial Statements	11 - 22

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

DIRECTORS' REPORT

FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Principal activity

The principal activity of the Company is to continue to manage the library facility in Bournemouth. The Company previously built and now maintains a library in Bournemouth, up until project close in August 2032. The Company manages this maintenance risk by sub-contracting FM services to Kier Facilities Services Limited.
The Company managed the IT system for the library and 11 branches, the risk is managed by Bournemouth Council.

Directors

The directors who served during the year were:

H Holman
K O'Brien

Directors' responsibilities statement

The directors are responsible for preparing 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.

Page 1

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

Principal risks and uncertainties

Key Milestone Events
The Company has a suite of project documents focused on delivering a library in Bournemouth that contains measurable and well-defined milestones that they must achieve to satisfy the requirements of the Company's single client, Bournemouth Council.
Key Performance Indicators
The key performance indicators of the Company are client and financially focused, including those listed below;
• Senior debt draw down
• Service delivery
Financial Risk Review
The Company manages liquidity through a senior debt facility with Helaba Landesbank, this loan has a fixed interest rate. The details of this loan are shown in note 14. As explained in the Key Performance Indicator section of this report, the Company has a bank facilities agreement for senior debt that provides the Company with sufficient liquidity to meet payments to suppliers and sub-contractors. The interest rate risk exposure has been limited as the loan has a fixed interest rate as a result of an interest rate swap arrangement.
The Company has adopted a policy of only dealing with creditworthy counterparties and PFI/PPP concessions are entered into with government authorities.
Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has built an appropriate liquidity risk management framework for the management of the Company's short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate cash reserves, banking facilities by continuously monitoring forecast and actual cash flows and matching maturity profiles of financial assets and liabilities.

Going concern

The Company has net assets of £1,495,046 (2022: £917,672) which includes the fair value of the interest rate swaps of £607,652 (2022: £629,658) within liabilities and includes cash of £2,662,885 (2022: £2,845,561).
The Directors have considered the available funding facilities, cash flow projections and financial projections that are agreed as part of the long term financial model for the project. In addition, the Company has in place SWAP arrangements with the funder that protect against interest rate fluctuations. As such, the directors are satisfied that there are no issues in respect of going concern on the project, and that it will continue to operate and trade in line with expectations.
The directors also closely monitor the relationship with the local authority which remains strong.
After considering these matters and in light of the current forecasts for the Company set out in the operational model along with the cash position, the Directors consider it appropriate to adopt the going concern basis in preparing the financial statements.

Future developments

The Directors of the company are not aware of any circumstances by which the principal activity of the company would alter or cease.

Page 2

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

DIRECTORS' REPORT (CONTINUED)

FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:

∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditors, Ryecroft Glenton, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

Small companies note

In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board on 30 April 2024 and signed on its behalf.

H Holman

Director

Page 3

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

Opinion

We have audited the financial statements of Information Resources (Bournemouth) Limited (the 'Company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity 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).

In our opinion the financial statements:

∙give a true and fair view of the state of the Company's affairs as at 31 December 2023 and of its profit for the year then ended;

∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

∙have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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.

Conclusions relating to going concern

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.

Page 4

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INFORMATION RESOURCES (BOURNEMOUTH) LIMITED (CONTINUED)

Other information

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.

Opinion on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

∙the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

∙the Directors' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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 Directors' Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

∙the financial statements are not in agreement with the accounting records and returns; or

∙certain disclosures of directors' remuneration specified by law are not made; or

∙we have not received all the information and explanations we require for our audit; or

∙the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' Report and from the requirement to prepare a Strategic Report.

Page 5

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INFORMATION RESOURCES (BOURNEMOUTH) LIMITED (CONTINUED)

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page 1, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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.

The extent to which the audit was considered capable of detecting irregularities including fraud
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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities,
including fraud and non-compliance with laws and regulations, was as follows:

∙the Responsible Individual ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

∙we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector;

∙we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including Companies Act 2006, taxation legislation, data protection, and anti-bribery;

∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

Page 6

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF INFORMATION RESOURCES (BOURNEMOUTH) LIMITED (CONTINUED)

To address the risk of fraud through management bias and override of controls, we:

∙performed analytical procedures to identify any unusual or unexpected relationships;

∙tested journal entries to identify unusual transactions; and

∙assessed whether judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

∙agreeing financial statement disclosures to underlying supporting documentation;

∙reading the minutes of meetings of those charged with governance;

∙reviewing the risk register;

∙enquiring of management as to actual and potential litigation and claims; and

∙reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors (where applicable), including those responsible for compliance.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.
Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

Use of our report

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.

Andrew Cameron (Senior Statutory Auditor)

for and on behalf of

Ryecroft Glenton

Chartered Accountants

Statutory Auditors

32 Portland Terrace

Newcastle upon Tyne

NE2 1QP

30 April 2024

Page 7

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER 2023

	2023	2022
Note	£	£


Turnover	4	1,599,301	1,517,315
Cost of sales		(786,919)	(835,926)
Gross profit		812,382	681,389
Administrative expenses		(195,619)	(173,256)
Operating profit		616,763	508,133
Interest receivable and similar income	6	715,611	710,735
Interest payable and similar expenses	7	(648,716)	(675,992)
Profit before tax		683,658	542,876
Tax on profit		(32,788)	(155,294)
Profit for the financial year		650,870	387,582

Other comprehensive income for the year
Movement in cash flow hedge	22,006	1,387,665
Taxation in respect of other comprehensive income	(5,502)	(346,916)
Other comprehensive income for the year	16,504	1,040,749
Total comprehensive income for the year	667,374	1,428,331

The notes on pages 11 to 22 form part of these financial statements.

Page 8

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

REGISTERED NUMBER: 03926854

BALANCE SHEET

AS AT 31 DECEMBER 2023

		2023		2022
Note		£		£


Current assets
Debtors	9	10,447,106		10,740,986
Cash at bank and in hand	10	2,662,885		2,845,561
		13,109,991		13,586,547
Creditors: amounts falling due within one year	11	(3,292,442)		(3,684,685)
Net current assets			9,817,549		9,901,862
Total assets less current liabilities			9,817,549		9,901,862
Creditors: amounts falling due after more than one year	12		(7,579,341)		(8,241,048)
Provisions for liabilities
Deferred tax	15	(743,162)		(743,142)
			(743,162)		(743,142)
Net assets			1,495,046		917,672

Capital and reserves
Called up share capital	16	100,000	100,000
Other reserves	17	(455,740)	(472,244)
Profit and loss account	17	1,850,786	1,289,916
		1,495,046	917,672

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 April 2024.

H Holman

Director

The notes on pages 11 to 22 form part of these financial statements.

Page 9

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 DECEMBER 2023

	Called up share capital	Other reserves	Profit and loss account	Total equity
	£	£	£	£
At 1 January 2022 (as previously stated)	100,000	(1,512,992)	1,244,707	(168,285)
Prior year adjustment - correction of error	-	-	(311,373)	(311,373)
At 1 January 2022 (as restated)	100,000	(1,512,992)	933,334	(479,658)

Profit for the year	-	-	387,582	387,582
Taxation in respect of items of other comprehensive income	-	(346,917)	-	(346,917)
Hedge effective portion of change in fair value of designated hedging	-	1,387,665	-	1,387,665
Dividends: Equity capital	-	-	(31,000)	(31,000)

At 1 January 2023	100,000	(472,244)	1,289,916	917,672

Profit for the year	-	-	650,870	650,870
Taxation in respect of items of other comprehensive income	-	(5,502)	-	(5,502)
Hedge effective portion of change in fair value of designated hedging	-	22,006	-	22,006
Dividends: Equity capital	-	-	(90,000)	(90,000)
At 31 December 2023	100,000	(455,740)	1,850,786	1,495,046

The notes on pages 11 to 22 form part of these financial statements.

Page 10

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

1.	General information

Information Resources (Bournemouth) Limited is a private company limited by shares and is incorporated in England and Wales (registered number 03926854). The Registered office is 3rd Floor (South), 200 Aldersgate Street, London, England, EC1A 4HD.
The company's principal activities and nature of its operations are disclosed in the Director's Report.

2.Accounting policies

2.1

Basis of preparation of financial statements

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 financial statements are prepared and rounded to the nearest £ unless otherwise stated.

The following principal accounting policies have been applied:

2.2

Going concern

Page 11

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

2.3

Turnover

Public to private concession arrangements:
A substantial portion of the company’s assets are used within the framework of concession contracts granted by public sector customers (‘grantors’). Under these contracts, the company has constructed a library that is leased to the council on a 30 year lease which expires in August 2032.
To fall within the scope of section 34 of FRS 102, a contract must satisfy the following two criteria:
- The grantor controls or regulates what services the operator must provide using the infrastructure, to whom, and at what price; and
- The grantor controls, through ownership, beneficial entitlement or otherwise, any significant residual interest in the infrastructure at the end of the term of the arrangement.
Pursuant to section 34 of FRS 102, such infrastructure is not recognised in assets of the operator as property, plant and equipment but as financial assets (‘financial asset model’)
Financial asset model:
The financial asset model applies when the operator has an unconditional right to receive cash or other financial asset from the grantor.
In the case of concession services, the operator has such an unconditional right if the grantor contractually guarantees the payment of:
- Amounts specified or determined in the contract
- The shortfall, if any, between amounts received from users of the public service and amounts specified or determined in the contract
Financial assets resulting from the application of section 34 of FRS 102 are recorded at the reporting date under the heading financial assets and measured at amortised cost.
Pursuant to section 23 of FRS 102, revenue associated with the financial model comprises of service remuneration which relates to lifecycle maintenance and facilities income and ad hoc property related services income.

2.4

Interest income

Interest income is recognised in profit or loss using the effective interest method.

2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 12

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:

∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and

∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

2.8

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

2.9

Financial asset

The financial asset is stated at amortised cost using the effective interest method. The effective interest method is a method of calculating the amortised cost of a financial asset and of allocating the interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected life of the financial asset.

2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

2.11

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 13

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

2.12

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.

Increases in provisions are generally charged as an expense to profit or loss.

2.13

Financial instruments

The company classifies financial instruments, or their component parts, on initial recognition as a financial asset, a financial liability or an equity instrument in accordance with the substance of the contractual arrangement.
Financial instruments are recognised on the trade date when the company becomes a party to the contractual provisions of the instrument. Financial instruments are recognised initially at fair value plus, in the case of a financial instrument not at fair value through profit and loss, transaction costs that are directly attributable to the acquisition or issue of the financial instrument.
Financial instruments are derecognised on trade date when the company is no longer a party to the contractual provisions of the instrument.

2.14

Hedge accounting

The Company uses variable to fixed interest rate swaps to manage its exposure to interest rate cash flow risk on its variable debt. These derivatives are measured at fair value at each balance sheet date.

To the extent the cash flow hedge is effective, movements in fair value are recognised in other comprehensive income and presented in a separate cash flow hedge reserve. Any ineffective portions of those movements are recognised in profit or loss for the year.

2.15

Loan arrangement fees

Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. The capitalised fees are then released to the statement of comprehensive income on a straight line basis over the term of the loan.

2.16

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 14

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

3.	Judgments in applying accounting policies and key sources of estimation uncertainty

Key sources of estimation uncertainty:
Financial asset interest rate – The financial asset interest income is based on the WACC of the project and is applied to the carrying value of the financial asset on a quarterly basis. The interest rate used in 2023 is 7.98% (2022: 7.98%)
Service margin – After the property is constructed, the company provides property management services. The remuneration for these services is recognised at cost plus as estimated mark up for profit on property management services. The service margin rate used in 2023 is 60.66% (2022: 52.00%). It is the policy of the directors that the service margin is reviewed annually on 1st January each year to generate a new service margin rate, which is to be applied in the proceeding financial year.
Critical judgements:
Concession arrangements – The concession arrangements undertaken by the company are considered to fall within the scope of section 34 of FRS 102 “Service Concession Arrangements”, as described in the turnover policy. This judgement has been based on a consideration of the nature and terms of the agreements.

Turnover

All turnover and profit on ordinary activities before taxation relates to one class of business, the company’s principal activity carried out in the UK

Employees

The Company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL).

6.	Interest receivable
		2023	2021
		£	£

Finance debtor interest receivable	652,843	702,921
Bank interest receivable	62,768	7,814
	715,611	710,735

Page 15

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

7.	Interest payable and similar expenses
		2023	2022
		£	£

Bank interest payable	7,325	7,207
Loan interest payable	464,967	483,489
Sub debt interest and other finance charges	176,424	185,296
	648,716	675,992

8.	Dividends
		2023	2022
		£	£

	Dividends paid	90,000	31,000
		90,000	31,000

Debtors

					2023	2022
					£	£

Due after more than one year
Finance debtor	9,453,807	9,866,082
	9,453,807	9,866,082
Due within one year
Trade debtors	285,123	270,837
Finance debtor	699,916	596,205
Prepayments and accrued income	8,260	7,862
	10,447,106	10,740,986

Page 16

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

10.	Cash and cash equivalents
		2023	2022
		£	£

Cash at bank and in hand	2,662,885	2,845,561
	2,662,885	2,845,561

Included in cash at bank and in hand cash is cash of £2,100,571 (2022: £1,320,622) which is restricted for use in pre-described circumstances by the bank.

11.	Creditors: Amounts falling due within one year
		2023	2022
		£	£

Bank loans (note 13)	585,341	546,894
Subordinated loan notes (note 13)	33,493	30,385
Trade creditors	54,846	216,281
Corporation tax	115,609	77,340
Other taxation and social security	71,932	50,484
Accruals and deferred income	2,431,221	2,763,301
	3,292,442	3,684,685

12.	Creditors: Amounts falling due after more than one year
		2023	2022
		£	£

Bank loans (note 13)	5,896,265	6,478,203
Subordinated loan notes (note 13)	1,075,424	1,133,187
Financial instruments (note 14)	607,652	629,658
	7,579,341	8,241,048

Page 17

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

Amounts falling due within one year
Bank loans	585,341	546,894
Subordinated loan notes	33,493	30,385
	618,834	577,279
Amounts falling due 1-2 years
Bank loans	626,490	585,341
Subordinated loan notes	75,183	67,128
	701,673	652,469
Amounts falling due 2-5 years
Bank loans	2,156,325	2,014,692
Subordinated loan notes	303,523	273,854
	2,459,848	2,288,546
Amounts falling due after more than 5 years
Bank loans	3,113,450	3,878,170
Subordinated loan notes	696,718	792,205
	3,810,168	4,670,375
	7,590,523	8,188,669

Page 18

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

13.Loans (continued)

Borrowings consist of:
Term loan facilities granted by Landesbank Hessen-Thuringen Girozentrale (London branch), which are secured on the assets of the Company. The loan facility is for a total value of £13,400,000 of which £6,507,398 is outstanding at 31 December 2023 (2022: £7,054,292).
Interest is charged on amounts drawn under the senior loan facility based on floating SONIA. The Company has entered into an interest hedging agreement to be applied to the expected future borrowings on the facility, which fixes the interest rate at 6.22% until September 2031.

Issue costs of the debt have been offset against the bank loans and will be amortised over the duration of the facilities.
The Unsecured Subordinated 15.6% Loan Stock 2032 is held by Information Resources (Holdings) Limited, the Company’s Holding Company. It will be fully repaid by March 2032.

Page 19

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

14.	Financial instruments
		2023	2022
		£	£

	Financial assets
	Financial assets measured at amortised cost	13,101,731	13,578,685

Financial liabilities
Derivative financial instruments measured at amortised cost	10,076,590	11,168,251
Derivative financial instruments designated as hedges of variable interest rate risk	607,652	629,658
	10,684,242	11,797,909

	Financial assets measured at amortised cost comprise cash at bank and in hand, finance debtor, trade debtors.
	Financial liabilities measured at amortised cost comprise bank loans and overdrafts, subordinated loan notes, trade creditors, other creditors and accruals.
	The fair values of the interest rate swaps have been determined by reference to prices available from the markets on which the instruments involved are traded. To hedge the potential volatility in future interest cash flows arising from movements in SONIA, the company entered into floating to fixed interest rate swaps with a nominal value equal to that initial borrowings, the same term as the loans and interest re-pricing dates identical to those of the variable rate loans. These result in the company paying 6.22% per annum and receiving SONIA (through cash flows are settled on a net basis) and effectively fixing the total interest cost on loans and interest rates swaps at 6.22% per annum. The derivatives are accounted for as a hedge of variable rate interest rate risk, in accordance with FRS 102 and had a fair value of £607,652 (2022: £629,658) at the end of the financial year. The cash flows arising from the interest rate swaps will continue until their maturity in 2032, coincidental with the repayment of the term loans. The change in fair value in the period was a decrease of £22,006 (2022: decrease of £1,387,665) with the entire charge being recognised in other comprehensive income as the swaps were 100% effective hedges.

Page 20

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

15.	Deferred taxation

		2023
		£

	At beginning of year	(743,142)
	Charged to profit or loss	(5,522)
	Charged to other comprehensive income	5,502
	At end of year	(743,162)

The provision for deferred taxation is made up as follows:
	2023	2022
	£	£

Accelerated capital allowances	(921,928)	(948,528)
Tax losses carried forward	26,853	47,971
Deferred tax on SWAP	151,913	157,415
	(743,162)	(743,142)

16.	Share capital
		2023	2022
		£	£

Allotted, called up and fully paid

100,000 (2022 - 100,000) Ordinary shares of £1.00 each	100,000	100,000

All shares rank pari passu.

17.

Reserves

Other reserves

The cash flow hedge reserve includes all the changes in fair value of designated hedging and the associated tax movement.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses net of distributions to shareholders.

Page 21

INFORMATION RESOURCES (BOURNEMOUTH) LIMITED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

18.	Related party transactions
	The company has taken advantage of the exemption provided in FRS 102 not to disclose transactions with companies within the group of which it is a member, and where these transactions occur between entities which are 100% owned members of that group.

19.	Controlling party

As at 31 December 2023 the Company was a wholly owned subsidiary of Information Resources (Holdings) Limited, a company incorporated and registered in England and Wales. The share capital of Information Resources (Holdings) Limited was held 100% by Equitix Education 2 Limited, a company incorporated in the United Kingdom. The Company's ultimate parent and controlling entity, is Equitix Fund II LP, an English limited partnership.

Page 22