Company Registration No. 02553993 (England and Wales)
INFOMEDIA SERVICES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2020
PAGES FOR FILING WITH REGISTRAR
INFOMEDIA SERVICES LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 10
INFOMEDIA SERVICES LIMITED
BALANCE SHEET
AS AT 30 DECEMBER 2020
30 December 2020
- 1 -
2020
2019
Notes
£
£
£
£
Fixed assets
Intangible assets
5
105,498
128,844
Tangible assets
6
8,965
15,593
114,463
144,437
Current assets
Debtors
7
2,482,792
2,299,483
Cash at bank and in hand
859,366
705,435
3,342,158
3,004,918
Creditors: amounts falling due within one year
8
(3,925,402)
(3,036,103)
Net current liabilities
(583,244)
(31,185)
Total assets less current liabilities
(468,781)
113,252
Capital and reserves
Called up share capital
2
2
Share premium account
378,000
378,000
Profit and loss reserves
(846,783)
(264,750)
Total equity
(468,781)
113,252
The director of the company has elected not to include a copy of the profit and loss account within the financial statements.
true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 20 September 2021 and are signed on its behalf by:
Mr M Robinson
Director for and on behalf of IMSH Limited
Company Registration No. 02553993
The notes on pages 12 to 23 form part of these financial statements.
INFOMEDIA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 DECEMBER 2020
- 2 -
1
Accounting policies
Company information
Infomedia Services Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
7 Premier Court, Moulton Park, Northampton, Northamptonshire, United Kingdom, NN3 6LF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared to the 30 December 2020, but the accounting reference period is until the 31 December 2020. This is allowable per Section 390 of the Companies Act 2006.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 3 'Financial statement Presentation' Paragraph 3.17(d).
-
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
IMSH Limited
. These consolidated financial statements are available from its registered office
, 7 Premier Court, Moulton Park, Northampton, Northamptonshire, NN3 6LF.
INFOMEDIA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2020
1
Accounting policies
(Continued)
- 3 -
1.2
Going concern
On 11 January 2021 the IMSH Group (of which Infomedia Services Limited is a subsidiary) undertook a refinancing exercise with its current finance providers to support the expected future growth of the business. This refinancing represents a non-adjusting post balance sheet event for the Group, however the impact of this refinancing pervasively impacts the future prosperity of the Group. Included within the Strategic Report of the consolidated financial statements of IMSH Limited for the year ended 31 December 2020 is an illustrative table which outlines the impact of the refinancing to the Group had the refinancing taken place prior to the year end to which these financial statements have been drawn up. These transactions will be accounted for within the financial statements for the year ended 31 December 2021.
As illustrated in the Group’s Strategic Report, bank loans balance included within creditors falling due after more than one year of £7,780,812 has been written down to £2,500,000 in exchange for an agreed equity stake in the business. The terms of this loan have been amended such that interest is now charged at 5% per annum plus Libor, presenting 2.5% of cash interest and 2.5% of PIK interest. This loan is now due for repayment on 30 March 2024.
Furthermore, included within other creditors in the accounts of IMSH Limited is £500,000 due to a related party within one year, alongside an additional £500,000 due to the same related party after more than one year. This balance was waived as part of the refinancing exercise.
The directors have prepared forecast profit and loss, balance sheet and cash flows for the period to March 2023. These forecasts show that following on from the refinancing, the company and group will be able to meet their liabilities as they fall due. The forecasts are based upon projected end user spend predominantly in consumer markets through both existing and future acquisition of carrier channels against known historic activity levels. As such the Directors have prepared the financial statements on the going concern basis.
As such the directors are satisfied that it is correct to prepare the company's accounts on a going concern basis.
1.3
Turnover
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:
Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of the completion of the contract when all of the following conditions are satisfied:
-
the amount of revenue can be measured reliably;
-
it is probable that the company will receive the consideration due under the contract;
-
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
-
the costs incurred and the costs to complete the contract can be measured reliably.
1.4
Intangible fixed assets
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
INFOMEDIA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2020
1
Accounting policies
(Continued)
- 4 -
Amorti
s
ation is recognized so as to write off the cost or valuation of assets less their residual values over their useful lives
. All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Computer software
20% straight line
1.5
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Office equipment
25% on straight line
Fixtures and fittings
25% on straight line
Computer equipment
25% on straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Cash and cash equivalents
Cash and cash equivalents
are basic financial assets
and
include cash in hand
and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
INFOMEDIA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2020
1
Accounting policies
(Continued)
- 5 -
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
INFOMEDIA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2020
1
Accounting policies
(Continued)
- 6 -
1.12
Leases
Rentals payable under operating leases,
including
any lease incentives received, are charged to
profit or loss
on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease
s
asset are consumed.
1.13
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant
effect on amounts recognised in the financial statements.
Revenue Recognition
Determine whether the risks and rewards of ownership have transferred from the company to the customer for direct carrier billing services, at which point revenue is recognised.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Tangible Fixed Assets
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposals values.
INFOMEDIA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2020
- 7 -
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2020
2019
Number
Number
Total
22
29
4
Auditor's remuneration
2020
2019
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
15,750
33,447
For other services
All other non-audit services
2,500
2,500
5
Intangible fixed assets
Other
£
Cost
At 31 December 2019
396,871
Additions
14,734
At 30 December 2020
411,605
Amortisation and impairment
At 31 December 2019
268,027
Amortisation charged for the year
38,080
At 30 December 2020
306,107
Carrying amount
At 30 December 2020
105,498
At 30 December 2019
128,844
INFOMEDIA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2020
- 8 -
6
Tangible fixed assets
Plant and machinery etc
£
Cost
At 31 December 2019
54,533
Additions
990
At 30 December 2020
55,523
Depreciation and impairment
At 31 December 2019
38,940
Depreciation charged in the year
7,618
At 30 December 2020
46,558
Carrying amount
At 30 December 2020
8,965
At 30 December 2019
15,593
7
Debtors
2020
2019
Amounts falling due within one year:
£
£
Trade debtors
776,298
768,302
Corporation tax recoverable
140,962
Amounts owed by group undertakings
514,181
461,566
Other debtors
993,781
1,012,045
2,425,222
2,241,913
Deferred tax asset
57,570
57,570
2,482,792
2,299,483
8
Creditors: amounts falling due within one year
2020
2019
£
£
Bank loans and overdrafts
5
30
Trade creditors
2,759,983
1,860,318
Taxation and social security
68,501
68,823
Other creditors
1,096,913
1,106,932
3,925,402
3,036,103
INFOMEDIA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2020
- 9 -
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
The senior statutory auditor was Mr Mitesh Thakrar and the auditor was Azets Audit Services.
10
Pension commitments
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to fund and amounted to £47,333 (2019 - £92,734). Contributions totalling £8,302 (2019 - £8,573) were payable to the fund at the balance sheet date.
11
Events after the reporting date
In March 2020 the impact of the Covid-19 pandemic was apparent globally. The directors have assessed the current and future impact of this outbreak on the group and are of the view that the business is well placed to deal with any financial difficulties that may arise, albeit they are of the view that the likelihood of any such issues occurring is remote and as such continue to prepare the accounts on the going concern basis. The business has been able to readjust to a remote working model in response to Covid-19 with no impact to productivity. The impact of Covid-19 is deemed to represent a non-adjusting post balance sheet event.
On 11 January 2021 the IMSH Group (of which Infomedia Services Limited is a subsidiary) undertook a
refinancing exercise with its current finance providers to support the expected future growth of the
business. This refinancing represents a non-adjusting post balance sheet event for the Group, however the
impact of this refinancing pervasively impacts the future prosperity of the Group. Included within the
Strategic Report of consolidated financial statements of IMSH Limited for the year ended 30 December
20
20
is an illustrative table which outlines the impact of the refinancing to the Group had the refinancing
taken place prior to the year end to which these financial statements have been drawn up. These
transactions will be accounted for within the financial statements for the year ended 30 December 2021.
On the 18th May 2021 the Group undertook a Technology Sale and Licence Agreement between Infomedia Services Limited and Hensington Holdings Limited (a company with common directors). A further Asset Sale & Purchase Agreement between Infomedia (Services) Limited and Apaya (Services) Limited for the Intangible software held, transfer of client goodwill relationships and TUPE of staff. Infomedia continues to provide billing and technical support to Apaya under a standard payment services contract. These are both deemed non-adjusting balance sheet events and are the second part of the refinancing exercise.
INFOMEDIA SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 DECEMBER 2020
- 10 -
12
Related party transactions
Transactions with related parties
Rent of £36,667 (2019 - £55,000) was charged by Infomedia Services Directors' Retirement Scheme, a Pension Fund Trust with one director are trustee. At the year end £49,500 (2019 - £102,000) was outstanding and included within creditors.
Recharges of rent and other costs of £25,200 (2019 - £102,301) were charged during the year to Humley Limited, a company related through common ownership. At the year end £3,360 (2019 - £33,446) was outstanding and included within debtors.
Apaya Services Limited, a company owned by Michael Tomlins had transactions with Infomedia Services Limited for mobile payment transactions as well as recharges of costs. Infomedia Services Ltd had sales transactions with Apaya Services Ltd totalling £21,586 (2019 - £NIL) and purchase transactions totalling £284,269 (2019 - £NIL). Balances at the year end were debtor balance of £25,903 (2019 - £NIL) and creditor of £206,447 (2019 - £NIL).
Included within other debtors due within one year is a balance of £40,700 (2019 - £40,700) owed by M Tomlins, a director at the year end date.
13
Parent company
The company's parent undertaking is Companionem Limited. The companies Ultimate parent company is IMSH Limited. The registered address of the parent and ultimate undertaking is 7 Premier Court, Moulton Park, Northampton, Northamptonshire, NN3 6LF. IMSH Limited is the parent undertaking of the largest and smallest group for which consolidated financial statements are prepared. Consolidated accounts are available from Companies House, Cardiff, CF14 3UZ.
IMSH Limited was controlled (in accordance with the definitions under CA 2006) by Graham Tomlins and Michael Tomlins as at the year end date as a result of their shareholdings in the business each exceeding 25%. After the year end (with effect from 8
th
January 2021), the ultimate controlling party changed to Beechbrook UK SME Credit I Holdings PLC and then, in accordance with internal structural requirements at Beechbrook, was immediately transferred to Beechbrook UK SME Credit I GP LP.
2020-12-30
2019-12-31
false
20 September 2021
CCH Software
CCH Accounts Production 2021.200
No description of principal activity
This audit opinion is unqualified
Mr M G Tomlins
IMSH Limited
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