REGISTERED NUMBER: 13947730 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Period 1 March 2022 to 31 May 2023 |
for |
INNOVATIVE SOLUTIONS GROUP LIMITED |
REGISTERED NUMBER: 13947730 (England and Wales) |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Period 1 March 2022 to 31 May 2023 |
for |
INNOVATIVE SOLUTIONS GROUP LIMITED |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Contents of the Consolidated Financial Statements |
for the period 1 March 2022 to 31 May 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
INNOVATIVE SOLUTIONS GROUP LIMITED |
Company Information |
for the period 1 March 2022 to 31 May 2023 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
Chartered Accountants and Statutory Auditors |
3rd Floor |
Marlborough House, 298 Regents Park Road |
Finchley |
London |
N3 2SZ |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Group Strategic Report |
for the period 1 March 2022 to 31 May 2023 |
The directors present their strategic report of the company and the group for the period 1 March 2022 to 31 May 2023. |
Review of business |
Innovative Solutions Group Limited was incorporated on 01 March 2022. The company acquired Innovative Trials Limited and Innovative Trials Inc during he year. |
The report provides a balanced and comprehensive analysis of the development and performance of the group's business during the financial year consistent with the size and complexity of the business. |
Review of business |
Innovative Solutions Group Limited specialise in global patient recruitment for the Pharmaceutical industry. |
2022 - 2023 was a build year post Covid and our turnover was £8.4m. The number of clinical trials is now equal to or higher than pre-Covid levels. At the year end, the group has healthy reserves of over £11.7m and we expect the business to grow in 2024 in respect of both turnover and profitability. |
Principal risks and uncertainties |
It is the group's policy to proactively identify, understand and manage the risk inherent in the operation of our business so as to encourage responsible and informed decision making. |
We consider the group's principal risks to be competitive, economic, operational, legal and compliance risk. Risks are managed through prudent planning and ongoing analysis of market conditions to ensure that the group stays ahead of its competitors. |
Revenue |
2023 |
Revenue | £8.4m |
Gross Profit Margin | 52% |
Profit Before Tax | £32k |
Profit Before Tax includes an amortisation expense for goodwill in the year of £692,159, |
On behalf of the board: |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Report of the Directors |
for the period 1 March 2022 to 31 May 2023 |
The directors present their report with the financial statements of the company and the group for the period 1 March 2022 to 31 May 2023. |
Incorporation |
The group was incorporated on 1 March 2022 . |
Dividends |
Interim dividends per share were paid as follows: |
Ordinary A £1 shares - £194,600 |
Ordinary B £1 shares - £175,000 |
Ordinary C £1 shares - £69,000 |
The directors recommend that no final dividends be paid. |
The total distribution of dividends for the year ended 31 May 2023 will be £438,600. |
Directors |
The directors shown below have held office during the whole of the period from 1 March 2022 to the date of this report. |
Both the directors, being eligible, offer themselves for election at the forthcoming first Annual General Meeting. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Statement as to disclosure of information to auditors |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Report of the Directors |
for the period 1 March 2022 to 31 May 2023 |
Auditors |
The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Innovative Solutions Group Limited |
Opinion |
We have audited the financial statements of Innovative Solutions Group Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 May 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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 group's and of the parent company affairs as at 31 May 2023 and of the group's loss for the period 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'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 group's and the parent 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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. |
Report of the Independent Auditors to the Members of |
Innovative Solutions Group Limited |
Opinions 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Innovative Solutions Group Limited |
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 a Report of the Auditors 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 our procedures are capable of detecting irregularities, including fraud is detailed below: |
- Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements. |
- Enquiring of management concerning actual and potential litigation and claims. |
- Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud. |
- In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team |
members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the |
audit. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those |
leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases |
the more that compliance with a law or regulation is removed from the events and transactions reflected in the |
financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
Whilst this is the case, our audit approach adopts a risk based approach which ensures that appropriate attention is |
devoted to the areas assessed as key audit risks. We performed a combination of procedures including analytical |
review, detailed substantive verification of transactions and balances as well as detailed test of controls, where |
appropriate. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Innovative Solutions Group Limited |
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 a Report of the Auditors 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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
3rd Floor |
Marlborough House, 298 Regents Park Road |
Finchley |
London |
N3 2SZ |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Consolidated |
Income Statement |
for the period 1 March 2022 to 31 May 2023 |
Notes | £ |
Turnover | 3 | 8,388,824 |
Cost of sales | (3,980,659 | ) |
Gross profit | 4,408,165 |
Administrative expenses | (4,448,039 | ) |
(39,874 | ) |
Other operating income | 53,346 |
Operating profit | 5 | 13,472 |
Interest receivable and similar income | 18,739 |
32,211 |
Interest payable and similar expenses | 7 | (38 | ) |
Profit before taxation | 32,173 |
Tax on profit | 8 | (109,188 | ) |
Loss for the financial period | ( |
) |
Loss attributable to: |
Owners of the parent | (77,015 | ) |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Consolidated |
Other Comprehensive Income |
for the period 1 March 2022 to 31 May 2023 |
Notes | £ |
Loss for the period | (77,015 | ) |
Other comprehensive income |
Market value of shares acquired | 12,293,750 |
Income tax relating to other comprehensive income |
- |
Other comprehensive income for the period, net of income tax |
12,293,750 |
Total comprehensive income for the period | 12,216,735 |
Total comprehensive income attributable to: |
Owners of the parent | 12,216,735 |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Consolidated Balance Sheet |
31 May 2023 |
Notes | £ | £ |
Fixed assets |
Intangible assets | 11 | 5,240,472 |
Tangible assets | 12 | 417,687 |
Investments | 13 | - |
5,658,159 |
Current assets |
Debtors | 14 | 4,026,145 |
Cash at bank and in hand | 2,914,123 |
6,940,268 |
Creditors |
Amounts falling due within one year | 15 | 801,143 |
Net current assets | 6,139,125 |
Total assets less current liabilities | 11,797,284 |
Provisions for liabilities | 17 | 19,029 |
Net assets | 11,778,255 |
Capital and reserves |
Called up share capital | 18 | 120 |
Other reserves | 19 | 12,293,750 |
Retained earnings | 19 | (515,615 | ) |
Shareholders' funds | 11,778,255 |
The financial statements were approved by the Board of Directors and authorised for issue on 30 November 2023 and were signed on its behalf by: |
Ms K Shaw - Director |
D R Watkins - Director |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Company Balance Sheet |
31 May 2023 |
Notes | £ | £ |
Fixed assets |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
Current assets |
Debtors | 14 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 15 |
Net current assets |
Total assets less current liabilities |
Capital and reserves |
Called up share capital | 18 |
Retained earnings | 19 |
Shareholders' funds |
Company's profit for the financial year | 500,304 |
The financial statements were approved by the Board of Directors and authorised for issue on |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Consolidated Statement of Changes in Equity |
for the period 1 March 2022 to 31 May 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Changes in equity |
Issue of share capital | 120 | - | - | 120 |
Dividends | - | (438,600 | ) | - | (438,600 | ) |
Total comprehensive income | - | (77,015 | ) | 12,293,750 | 12,216,735 |
Balance at 31 May 2023 | 120 | (515,615 | ) | 12,293,750 | 11,778,255 |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Company Statement of Changes in Equity |
for the period 1 March 2022 to 31 May 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Changes in equity |
Issue of share capital | - |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 May 2023 |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Consolidated Cash Flow Statement |
for the period 1 March 2022 to 31 May 2023 |
Notes | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 465,628 |
Interest paid | (38 | ) |
Tax paid | (61,617 | ) |
Net cash from operating activities | 403,973 |
Cash flows from investing activities |
Acquisition of Subsidiary | 3,464,388 |
Purchase of tangible fixed assets | (555,249 | ) |
Sale of intangible fixed assets | 212 |
Sale of tangible fixed assets | 939 |
Interest received | 18,740 |
Net cash from investing activities | 2,929,030 |
Cash flows from financing activities |
Share issue | 120 |
Shareholder drawings | (419,000 | ) |
Net cash from financing activities | (418,880 | ) |
Increase in cash and cash equivalents | 2,914,123 |
Cash and cash equivalents at beginning of period |
2 |
- |
Cash and cash equivalents at end of period | 2 | 2,914,123 |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Notes to the Consolidated Cash Flow Statement |
for the period 1 March 2022 to 31 May 2023 |
1. | Reconciliation of profit before taxation to cash generated from operations |
£ |
Profit before taxation | 32,173 |
Depreciation charges | 860,091 |
Profit on disposal of fixed assets | (212 | ) |
Subsidiary profit pro rata | (46,631 | ) |
Finance costs | 38 |
Finance income | (18,739 | ) |
826,720 |
Increase in trade and other debtors | (3,247,422 | ) |
Increase in trade and other creditors | 2,886,330 |
Cash generated from operations | 465,628 |
2. | Cash and cash equivalents |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Period ended 31 May 2023 |
31/5/23 | 1/3/22 |
£ | £ |
Cash and cash equivalents | 2,914,123 | - |
3. | Analysis of changes in net funds |
At 1/3/22 | Cash flow | At 31/5/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | - | 2,914,123 | 2,914,123 |
- | 2,914,123 | 2,914,123 |
Total | - | 2,914,123 | 2,914,123 |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Notes to the Consolidated Financial Statements |
for the period 1 March 2022 to 31 May 2023 |
1. | Statutory information |
Innovative Solutions Group Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | Accounting policies |
Basis of preparing the financial statements |
Key source of estimation, uncertainty and judgement |
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. |
There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets. |
There is estimation uncertainty in calculating deferred tax. A full line by line review of deferred tax is carried out by management regularly. Whilst every attempt is made to ensure that the deferred tax is as accurate as possible, there remains a risk that the provisions do not match the actual tax liability when asset is disposed of. |
There is estimation uncertainty in calculating amortisation of intangible assets. A full line by line review of intangible assets is carried out by management regularly. Whilst every attempt is made to ensure that the amortisation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the intangible assets. |
Turnover |
Revenue from consultancy services is recognised by reference to the stage of completion of the contract determined by the value of the services provided at the balance sheet date as a proportion of the total value of the engagement. Where the amount of revenue is contingent on future events, this is only recognised where the amount of revenue can be measured reliably and it is probable that the economic benefits will be received. When this cannot be estimated reliably, revenue is only recognised to the value of the expenses that it is considered probable will be recovered, with a "catch-up" element of revenue recognised based on stage of completion once a reliable estimate can be made. Consultancy services provided to the client which at the balance sheet date have not been billed have been recognised as revenue and are included in debtors as accrued income.Revenue excludes discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Goodwill, being the amount in connection with the acquisition of Innovative Trials Limited on 7 April 2022, is being amortised over its estimated useful life of ten years. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 March 2022 to 31 May 2023 |
2. | Accounting policies - continued |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Computer equipment | - |
Government grants |
Other income includes a receipt from the government in regards to a claim for wages through the coronavirus job retention scheme |
Financial instruments |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument. |
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due. |
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts. |
Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. |
Taxation |
Taxation for the period comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
The group is a beneficiary of Research & Development (R&D) tax relief from the UK Government in the form of reductions in its annual tax liability. Current tax assets or reductions in current tax liabilities for R&D claims are only recognised when the amount can be reliably determined and the probability of HM Revenue & Customs accepting the claim is considered high. |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 March 2022 to 31 May 2023 |
2. | Accounting policies - continued |
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 period 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. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
3. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by geographical market is given below: |
£ |
United Kingdom | 2,629,151 |
Europe | 52,169 |
United States of America | 5,521,860 |
Australia | 185,644 |
8,388,824 |
4. | Employees and directors |
£ |
Wages and salaries | 3,869,259 |
Social security costs | 332,211 |
Other pension costs | 311,753 |
4,513,223 |
The average number of employees during the period was as follows: |
Professional | 49 |
Administration | 32 |
81 |
The average number of employees by undertakings that were proportionately consolidated during the period was 14. |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 March 2022 to 31 May 2023 |
£ |
Directors' remuneration | 20,296 |
5. | Operating profit |
The operating profit is stated after charging/(crediting): |
£ |
Depreciation - owned assets | 138,698 |
Profit on disposal of fixed assets | (212 | ) |
Goodwill amortisation | 692,159 |
Foreign exchange differences | 3,656 |
6. | Auditors' remuneration |
Fees payable to group auditors for the audit of the group's financial statements totalled £16,250. |
Non-audit services for the group totalled £7,450. |
7. | Interest payable and similar expenses |
£ |
Interest payable | 38 |
8. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the period was as follows: |
£ |
Current tax: |
UK corporation tax | 164,914 |
Prior year adjustment | (54,870 | ) |
Total current tax | 110,044 |
Deferred tax | (856 | ) |
Tax on profit | 109,188 |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 March 2022 to 31 May 2023 |
8. | Taxation - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the period is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
£ |
Profit before tax | 32,173 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % | 6,113 |
Effects of: |
Expenses not deductible for tax purposes | 131,348 |
Depreciation in excess of capital allowances | 8,094 |
Deferred tax | (1,011 | ) |
R&D Expenditure credit | (46,850 | ) |
Innovative Trials Inc Tax | 11,494 |
Total tax charge | 109,188 |
Tax effects relating to effects of other comprehensive income |
Gross | Tax | Net |
£ | £ | £ |
Market value of shares acquired | 12,293,750 | - | 12,293,750 |
9. | Individual income statement |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | Dividends |
£ |
Ordinary - A shares of 1 each |
Interim | 194,600 |
Ordinary - B shares of 1 each |
Interim | 175,000 |
Ordinary - C shares of 1 each |
Interim | 69,000 |
438,600 |
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. Dividends on shares recognised as liabilities are recognised as expenses and classified within interest payable. |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 March 2022 to 31 May 2023 |
11. | Intangible fixed assets |
Group |
Goodwill |
£ |
Cost |
Additions | 5,932,631 |
At 31 May 2023 | 5,932,631 |
Amortisation |
Amortisation for period | 692,159 |
At 31 May 2023 | 692,159 |
Net book value |
At 31 May 2023 | 5,240,472 |
12. | Tangible fixed assets |
Group |
Fixtures |
Improvements | Plant and | and | Computer |
to property | machinery | fittings | equipment | Totals |
£ | £ | £ | £ | £ |
Cost |
Additions | 455,429 | 13,117 | 22,618 | 66,160 | 557,324 |
Disposals | - | - | - | (2,075 | ) | (2,075 | ) |
At 31 May 2023 | 455,429 | 13,117 | 22,618 | 64,085 | 555,249 |
Depreciation |
Charge for period | 113,857 | 3,279 | 5,655 | 15,907 | 138,698 |
Eliminated on disposal | - | - | - | (1,136 | ) | (1,136 | ) |
At 31 May 2023 | 113,857 | 3,279 | 5,655 | 14,771 | 137,562 |
Net book value |
At 31 May 2023 | 341,572 | 9,838 | 16,963 | 49,314 | 417,687 |
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. |
The gain on loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the assets and is credited or charged to the profit or loss account. |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 March 2022 to 31 May 2023 |
13. | Fixed asset investments |
Company |
Shares in |
group |
undertakings |
£ |
Cost |
Additions |
At 31 May 2023 |
Net book value |
At 31 May 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Innovative Trials Limited |
Registered office: UK |
Nature of business: Medical trials recruitment |
% |
Class of shares: | holding |
Ordinary | 1000 |
2023 |
£ |
Aggregate capital and reserves | 6,440,088 |
Profit for the period | 532,151 |
Innovative Trials Incorporated |
Registered office: USA |
Nature of business: Medical trials recruitment |
% |
Class of shares: | holding |
Ordinary | 100.00 |
2023 |
£ |
Aggregate capital and reserves | 36,096 |
Profit for the period | 36,056 |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 March 2022 to 31 May 2023 |
14. | Debtors: amounts falling due within one year |
Group | Company |
£ | £ |
Trade debtors | 2,361,032 |
Other debtors | 1,539,830 |
Prepayments | 125,283 |
4,026,145 |
15. | Creditors: amounts falling due within one year |
Group | Company |
£ | £ |
Trade creditors | 384,347 |
Corporation tax | 102,016 |
Social security and other taxes | 137,524 |
Other creditors | - |
Directors' current accounts | 3,113 | 60 |
Accrued expenses | 174,143 |
801,143 |
16. | Leasing agreements |
Minimum lease payments fall due as follows: |
Group |
Non-cancellable |
operating leases |
£ |
Within one year | 130,000 |
Between one and five years | 32,500 |
162,500 |
17. | Provisions for liabilities |
Group |
£ |
Deferred tax | 19,029 |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 March 2022 to 31 May 2023 |
17. | Provisions for liabilities - continued |
Group |
Deferred tax |
£ |
Credit to Income Statement during period | (1,011 | ) |
Balance at 31 May 2023 | (1,011 | ) |
18. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal |
value: | £ |
Ordinary - A | 1 | 50 |
Ordinary - B | 1 | 50 |
Ordinary - C | 1 | 20 |
120 |
19. | Reserves |
Group |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
Deficit for the period | (77,015 | ) | (77,015 | ) |
Dividends | (438,600 | ) | (438,600 | ) |
Other Reserves | - | 12,293,750 | 12,293,750 |
At 31 May 2023 | (515,615 | ) | 12,293,750 | 11,778,135 |
Company |
Retained |
earnings |
£ |
Profit for the period |
Dividends | ( |
) |
At 31 May 2023 |
Other Reserves represents the market value of shares acquired from Innovative Trials Limited via a share for share exchange less the nominal cost of the investment. |
INNOVATIVE SOLUTIONS GROUP LIMITED (REGISTERED NUMBER: 13947730) |
Notes to the Consolidated Financial Statements - continued |
for the period 1 March 2022 to 31 May 2023 |
20. | Related party disclosures |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
During the period, the group incurred rental costs of £65,000 paid to DKBT Limited, and £65,000 paid to to Innovative Trials SSAS. Innovative Trials Limited and DKBT Ltd are related by virtue of both companies being under common control, and Innovative Trials Ltd and Innovative Trials SSAS are related by virtue of the directors of Innovative Trials Limited being Trustees of Innovative Trials SSAS. |
An amount of £1,526,652 is owed to the group from a related company in the form of an unsecured and interest free loan at the balance sheet date. The company is related by virtue of being under common control. |
During the period, a total of key management personnel compensation of £ 289,885 was paid. |
21. | Acquisition of subsidiaries |
Innovative Trials Limited was acquired by the group during the period. The company has been acquired under the acquisition method of accounting. The company was acquired via a share for share exchange. The fair value of consideration given by the group was £12,293,975. The net asset value of the subsidiary at the date of acquisition was £6,361,345 giving rise to goodwill before amortisation of £5,240,490 |
Innovative Trials Incorporated USA was also acquired by the group during the period via a share for share exchange. This was acquired as a newly formed company.. |
22. | Ultimate controlling party |
The group was controlled by Ms K Shaw and Mr D R Watkins throughout the year. |