Kentex Electric (Southern) Limited Cover |
Company No. 03524895 | |||||||||
Kentex Electric (Southern) Limited Contents |
Pages | |||||||||
Company Information | 2 | ||||||||
Directors' Report | 3 to 4 | ||||||||
Strategic Report | 5 | ||||||||
Auditor's Report | 6 to 8 | ||||||||
Statement of Comprehensive Income | 9 | ||||||||
Statement of Financial Position | 10 | ||||||||
Statement of Changes in Equity | 11 | ||||||||
Statement of Cash Flows | 12 | ||||||||
Notes to the Financial Statements | 13 to 27 | ||||||||
Kentex Electric (Southern) Limited Company Information |
Directors | |||||||||
G. Marinaro | |||||||||
Registered Office | |||||||||
Auditor | |||||||||
Melbury House | |||||||||
34 Southborough Road | |||||||||
Bickley | |||||||||
Kent | |||||||||
BR1 2EB |
Kentex Electric (Southern) Limited Directors Report |
The Directors present their report and the financial statements for the year ended 31 December 2022. | |||||||||
Principal activities | |||||||||
Directors | |||||||||
The Directors who served at any time during the year were as follows: | |||||||||
G. Marinaro | |||||||||
Results and dividends | |||||||||
The profit for the year after taxation amounted to £31,427 (2021: loss £121,830). Further business review is mentioned in the strategic report. The directors do not propose a dividend to the shareholders (2021:£100,000). | |||||||||
Financial instruments | |||||||||
The company has financial instruments such as cash and bank, trade debtors and trade creditors which directly arise from its operations. The main risks arising from its financial instruments are credit risk and liquidity risk. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The company only trades with credit worthy and reputable organisations. Receivable balances are monitored regularly so that the exposure to bad debts is not significant. Liquidity risk is the risk that company will not be able to meet its financial obligations as they fall due. The company maintains a level of cash and cash equivalents deemed adequate by the management to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they fall due. | |||||||||
Statement of directors' responsibilities | |||||||||
The Directors are responsible for preparing the Directors' report and the accounts in accordance with applicable law and regulations. | |||||||||
Company law requires the directors to prepare accounts for each financial year. Under that law the directors have elected to prepare the accounts 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 accounts 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 accounts, the directors are required to: | |||||||||
* | select suitable accounting policies and then apply them consistently; | ||||||||
* | make judgements and 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. | ||||||||
Statement of disclosure of information to auditor | |||||||||
Signed on behalf of the board | |||||||||
G. Marinaro | |||||||||
Director | |||||||||
26 September 2023 |
Kentex Electric (Southern) Limited Strategic Report |
The Directors present their strategic report for the year ended 31 December 2022. | |||||||
Business review | |||||||
Turnover has increased by 72% during the year, primarily due to post pandemic recovery and lifting of lock down restrictions. Gross profit margin decreases from 14% to 12% possibly due to increase in demand of sub conractors. | |||||||
The company remains well placed in the market with a broad spectrum of supportive clients with whom the company trades. As the industry recovers from Covid19 the directors anticipate an improving outlook for the year 2023. | |||||||
The directors are confident that the company will continue to trade profitably in the 2023. | |||||||
The directors are continuing to make efforts to broaden their client base and are confident that an impact of these efforts will be seen in the year 2023. | |||||||
Financial and other key performance indicators: | |||||||
The KPI's are seen as Turnover, Gross Profit margin, Operating profit and Net Assets | |||||||
The company's key performance indicators during the year were as follows: | |||||||
Key financial performance indicators: | Unit | 2022 | 2021 | ||||
1 | Turnover | £ | 19,420,518 | 11,270,518 | |||
2 | Gross Profit Margin | % | 12 | 14 | |||
3 | Operating Profit/(Loss) | £ | 28,795 | (127,602) | |||
4 | Net Assets | £ | 2,361,439 | 2,330,012 | |||
Principal risks and uncertainties | |||||||
1 | The level of activity in the company's sector is dependent upon the general economic climate and business confidence. | ||||||
2 | Enquiries appear to be continuing post covid 19 recovery and the level of activity has shown signs of improvement for the year 2023. | ||||||
Signed on behalf of the board | |||||||
G. Marinaro | |||||||
Director | |||||||
26 September 2023 |
Kentex Electric (Southern) Limited Audit Report Unqualified |
Independent Auditor's Report to the members of Kentex Electric (Southern) Limited | |||||||||
Opinion | |||||||||
We have audited the financial statements of Kentex Electric (Southern) Limited (the 'company') for the year ended 31 December 2022 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the Notes to the Financial Statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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: | |||||||||
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 Auditor’s 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 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 accounts, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the accounts 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 accounts are authorised for issue. | |||||||||
Our responsibilities and the responsibillities of the directors with respect to going concern are described in the relevant sections of this report. | |||||||||
Other information | |||||||||
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 upon the work undertaken in the course of the audit: | |||||||||
• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and • the strategic report and the directors' report have been prepared in accordance with applicable legal requirements. | |||||||||
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. | |||||||||
• 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. | |||||||||
Responsibilities of directors | |||||||||
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. | |||||||||
Auditor's responsibilities for the audit of the financial statements | |||||||||
Our objectives are to obtain reasonable assurance about whether the accounts as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 capable of detecting irregularities, including fraud is detailed below: | |||||||||
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. | |||||||||
• we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our sector experience through discussion with the directors (as required by auditing standards). | |||||||||
• we had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered that extent of compliance with those laws and regulations as part of our procedures on the related financial statement items. | |||||||||
• with the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect of these was limited to enquiry of the directors. | |||||||||
• we communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit. | |||||||||
• we addressed the risk of fraud through management override of controls, by 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. | |||||||||
Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through 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 the auditors report. | |||||||||
Use of this 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. | |||||||||
Senior Statutory Auditor | |||||||||
For and on behalf of | |||||||||
Accountants and Statutory Auditors | |||||||||
Melbury House | |||||||||
34 Southborough Road | |||||||||
Bickley | |||||||||
Kent | |||||||||
BR1 2EB | |||||||||
Kentex Electric (Southern) Limited Statement of Comprehensive Income |
for the year ended 31 December 2022 | |||||||||||
Notes | 2022 | 2021 | |||||||||
£ | £ | ||||||||||
Revenue | 4 | ||||||||||
Cost of sales | ( | ( | |||||||||
Gross profit | |||||||||||
Distribution costs and selling expenses | ( | ( | |||||||||
Administrative expenses | ( | ( | |||||||||
Other operating income | |||||||||||
Operating profit/(loss) | 5 | ( | |||||||||
Other interest receivable | 9 | ||||||||||
Interest payable and similar charges | 10 | ( | |||||||||
Profit/(Loss) on ordinary activities before taxation | ( | ||||||||||
Taxation | 11 | ( | |||||||||
Profit/(Loss) for the financial year after taxation | ( | ||||||||||
Other comprehensive income | - | - | |||||||||
Total comprehensive income/(loss) | ( | ||||||||||
Kentex Electric (Southern) Limited Statement of Financial Position |
at | ||||||||||
Company No. | Notes | 2022 | 2021 | |||||||
£ | £ | |||||||||
Fixed assets | ||||||||||
Tangible assets | 12 | |||||||||
Current assets | ||||||||||
Debtors | 13 | |||||||||
Cash at bank and in hand | ||||||||||
Creditors: Amount falling due within one year | 14 | ( | ( | |||||||
Net current assets | ||||||||||
Total assets less current liabilities | ||||||||||
Provisions for liabilities | ||||||||||
Deferred taxation | 15 | ( | ( | |||||||
Other provisions | 15 | ( | ( | |||||||
Net assets | ||||||||||
Capital and reserves | ||||||||||
Called up share capital | 16 | |||||||||
Profit and loss account | 17 | |||||||||
Total equity | ||||||||||
Approved by the board on 26 September 2023 | ||||||||||
And signed on its behalf by: | ||||||||||
G. Marinaro | ||||||||||
Director | ||||||||||
26 September 2023 |
Kentex Electric (Southern) Limited Statement of Changes in Equity |
for the year ended 31 December 2022 | ||||||||||||
Share Capital | Retained earnings | Total equity | ||||||||||
£ | £ | £ | ||||||||||
At 1 January 2021 | 2 | 2,551,840 | 2,551,842 | |||||||||
Loss for the period | ( | (121,830) | ||||||||||
Dividends | ( | ( | ||||||||||
At 31 December 2021 and 1 January 2022 | ||||||||||||
Profit for the period | ||||||||||||
At 31 December 2022 | ||||||||||||
Kentex Electric (Southern) Limited Statement of Cash Flows |
for the year ended 31 December 2022 | ||||||
2022 | 2021 | |||||
£ | £ | |||||
Cash flows from operating activities | ||||||
Operating profit/(loss) | 28,795 | (127,602) | ||||
Adjustments for: | ||||||
Movement in provisions | (115,728) | (264,310) | ||||
Depreciation of property, plant and equipment | 13,666 | 31,804 | ||||
Loss on disposal of tangible fixed assets | - | 1,295 | ||||
Increase in trade and other receivables | (1,473,750) | (1,339,167) | ||||
Decrease in trade and other payables | (4,942,035) | (319,283) | ||||
Net cash used in operations | (6,489,052) | (2,017,263) | ||||
Interest paid | ( | |||||
Income taxes paid | ( | ( | ||||
Net cash used in operating activities | ( | ( | ||||
Cash flows from investing activities | ||||||
Proceeds from sales of property, plant and equipment | ||||||
Interest received | ||||||
Net cash from investing activities | ||||||
Cash flows from financing activities | ||||||
Equity dividends paid | ( | |||||
Net cash used in financing activities | ( | |||||
Net decrease in cash and cash equivalents | ( | ( | ||||
Cash and cash equivalents at the beginning of the year | 7,213,213 | 9,445,568 | ||||
Cash and cash equivalents at the end of the year | 728,059 | 7,213,213 | ||||
Components of cash and cash equivalents | ||||||
Cash and bank balances | ||||||
728,059 | 7,213,213 | |||||
Kentex Electric (Southern) Limited Notes to the Financial Statements |
for the year ended 31 December 2022 | ||||||||||||||||
1 | General information | |||||||||||||||
Its registered number is: 03524895 | ||||||||||||||||
Its registered office is: | Its trading address is: | |||||||||||||||
Courtyard House | ||||||||||||||||
The Square | ||||||||||||||||
Lightwater | ||||||||||||||||
Surrey | ||||||||||||||||
GU18 5SS | ||||||||||||||||
The functional and presentational currency of the company is Sterling. The accounts are rounded to the nearest pound. | ||||||||||||||||
35 | ||||||||||||||||
2 | Accounting policies | |||||||||||||||
Revenue recognition | ||||||||||||||||
Revenue from the sale of goods is recognised when all the following conditions are satisfied: • the Company has transferred to the buyer the significant risks and rewards of ownership of the goods; • the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; • the amount of revenue can be measured reliably; • it is probable that the economic benefits associated with the transaction will flow to the Company; and • the costs incurred or to be incurred in respect of the transaction can be measured reliably. Specifically, revenue from the sale of goods is recognised when goods are delivered and legal title is passed. | ||||||||||||||||
Taxation | ||||||||||||||||
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the statement of comprehensive income because of items of income or expense that are taxable or deductible in other years and 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 end of the reporting period. Deferred tax is recognised on timing differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences Deferred tax assets are generally recognised for all deductible timing differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at the end of each reporting period 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 assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Current or deferred tax for the year is recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively. | ||||||||||||||||
Tangible fixed assets and depreciation | ||||||||||||||||
Any revaluation increase or decrease on land and buildings is credited to the property revaluation reserve. Depreciation on revalued buildings is charged to profit or loss so as to write off their value, less residual value, over their estimated useful lives, using the straight-line method. Once a revalued property is sold or retired any attributable revaluation surplus that is remaining in the property revaluation reserve is transferred to retained earnings. No transfer is made from the revaluation reserve to retained earnings unless an asset is derecognised. | ||||||||||||||||
losses. Depreciation on plant and equipment is charged to profit or loss so as to write off their value, over their estimated useful lives, using the straight-line method. Assets held under finance leases are depreciated in the same manner as owned assets. At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment to determine whether there is any indication that any items of property, plant and equipment have suffered an impairment loss. If any such indication exists, the recoverable amount of an 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 the asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. Impairment loss is recognised as an expense immediately. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, to the extent that the increased carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised as income immediately. | ||||||||||||||||
Leasehold land and buildings | ||||||||||||||||
Motor vehicles | ||||||||||||||||
Furniture, fittings and equipment | ||||||||||||||||
Stocks | ||||||||||||||||
When stocks are sold, the carrying amount of those stocks is recognised as an expense in the period in which the related revenue is recognised. The amount of any write-down of stocks to net realisable value and all losses of stocks are recognised as an expense in the period in which the write-down or loss occurs. The amount of any reversal of any write-down of stocks is recognised as a reduction in the amount of inventories recognised as an expense in the period in which the reversal occurs. | ||||||||||||||||
Trade and other debtors | ||||||||||||||||
Cash and cash equivalents | ||||||||||||||||
In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management. | ||||||||||||||||
Financial instruments | ||||||||||||||||
Debt instruments, like loans and other accounts receivable and payable, are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an outright short term loan not at market rate, the financial asset or liability is measured, initially and subsequently, at the present value of the future payment discounted at a market rate of interest for a similar debt instrument. Investments in non-convertible preference shares and non-puttable ordinary and preference shares are measured: • At fair value with changes recognised in the Income Statement if the shares are publicly traded or their fair value can otherwise be measured reliably; • At cost less impairment for all other investments. Financial assets, are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. For all other financial assets, objective evidence of impairment could include: • significant financial difficulty of the issuer or counterparty; or • breach of contract, such as a default or delinquency in interest or principal payments; or • it becoming probable that the borrower will enter bankruptcy or financial re-organisation; or • the disappearance of an active market for that financial asset because of financial difficulties. | ||||||||||||||||
Financial Instruments (Continued) | ||||||||||||||||
For certain categories of financial asset, such as trade receivables, assets that are assessed not to be impaired individually are, in addition, assessed for impairment on a collective basis. Objective evidence of impairment for a portfolio of receivables could include the Company's past experience of collecting payments, an increase in the number of delayed payments in the portfolio past the average credit period of 50 days, as well as observable changes in national or local economic conditions that correlate with default on receivables. For financial assets carried at amortised cost, the amount of the impairment loss recognised is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate. For financial assets carried at cost, the amount of the impairment loss is measured as the difference between the asset's carrying amount and the present value of the estimated future cash flows discounted at the current market rate of return for a similar financial asset. Such impairment loss will not be reversed in subsequent periods. The carrying amount of the financial asset is reduced by the impairment loss directly for all financial assets with the exception of trade receivables, where the carrying amount is reduced through the use of an allowance account. When a trade receivable is considered uncollectible, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are credited against the allowance account. Changes in the carrying amount of the allowance account are recognised in profit or loss. For financial assets measured at amortised cost, if, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed through profit or loss to the extent that the carrying amount of the investment at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised. | ||||||||||||||||
Trade and other creditors | ||||||||||||||||
Related parties | ||||||||||||||||
For the purposes of these financial statements, a party is considered to be related to the Company if: • the party has the ability, directly or indirectly, through one or more intermediaries, to control the Company or exercise significant influence over the company in making financial and operating policy decisions, or has joint control over the Company; • the Company and the party are subject to common control; • the party is an associate of the Company or a joint venture in which the Company is a venturer; • the party is a member of key management personnel of the Company or the Company’s parent, or a close family member of such an individual, or is an entity under the control, joint control or significant influence of such individuals; • the party is a close family member of a party referred to in (i) or is an entity under the control, joint control or significant influence of such individuals; or • the party is a post-employment benefit plan which is for the benefit of employees of the Company or of any entity that is a related party of the Company. Close family members of an individual are those family members who may be expected to influence, or be influenced by, that individual in their dealings with the entity. | ||||||||||||||||
Leased assets | ||||||||||||||||
Leases which do not transfer substantially all the risks and rewards of ownership to the Company are classified as operating leases. Assets held under finance leases are initially recognised as assets of the Company at their fair value at the inception of the lease or, if lower, at the present value of the minimum lease payments. The corresponding liability to the lessor is included in the statement of financial position as a finance lease obligation. Lease payments are apportioned between finance expenses and reduction of the lease obligation so as to achieve a constant rate of interest on the remaining balance of the liability. Finance expenses are recognised immediately in profit or loss, unless they are directly attributable to qualifying assets, in which case they are capitalised in accordance with the Company's policy on borrowing costs (see the accounting policy above). Contingent rentals are recognised as expenses in the periods in which they are incurred. Operating lease payments are recognised as an expense on a straight-line basis over the lease term, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. Contingent rentals arising under operating leases are recognised as an expense in the period in which they are incurred. In the event that lease incentives are received to enter into operating leases, such incentives are recognised as a liability. The aggregate benefit of incentives is recognised as a reduction of rental expense on a straight-line basis, except where another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed. | ||||||||||||||||
Defined contribution pensions | ||||||||||||||||
The contributions are recognised as an expenses when they fall due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the company in independently administered funds. | ||||||||||||||||
Provisions | ||||||||||||||||
Provisions are charged as an expense to the Income Statement in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial position. | ||||||||||||||||
3 | Critical accounting judgements and key sources of estimation uncertainty | |||||||||||||||
In the application of company's accounting policies, the directors are 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 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 only affects that period, or in the period of the revision and future periods where the revision affects both current and future periods. | ||||||||||||||||
4 | Revenue Analysis | |||||||||||||||
Revenue, analysed geographically between markets, was as follows: | 2022 | 2021 | ||||||||||||||
£ | £ | |||||||||||||||
United Kingdom | ||||||||||||||||
Revenue, analysed by category, was as follows: | 2022 | 2021 | ||||||||||||||
£ | £ | |||||||||||||||
5 | Operating Profit/(Loss) | |||||||||||||||
2022 | 2021 | |||||||||||||||
This is stated after charging: | £ | £ | ||||||||||||||
Depreciation of owned fixed assets | ||||||||||||||||
Auditors' remuneration for: | ||||||||||||||||
Audit of the company's annual accounts | ||||||||||||||||
Accountancy & tax compliance services | ||||||||||||||||
Operating lease rentals: | ||||||||||||||||
Land and buildings | ||||||||||||||||
Plant and machinery | ||||||||||||||||
6 | Items of income or expenses of exceptional size or incidence | |||||||||||||||
2022 | 2021 | |||||||||||||||
£ | £ | |||||||||||||||
Other operating income - Job Retention Scheme Grants received from HMRC under accrual model | - | 275,650 | ||||||||||||||
7 | Staff costs | |||||||||||||||
2022 | 2021 | |||||||||||||||
Staff costs during the year (including directors) were as follows: | £ | £ | ||||||||||||||
Wages and salaries | ||||||||||||||||
Social security costs | ||||||||||||||||
Other pension costs | ||||||||||||||||
Total in company | 2,049,461 | 35 | 1,704,236 | |||||||||||||
Costs in respect of defined contribution schemes | ||||||||||||||||
- | - | |||||||||||||||
The average monthly number of employees (including directors) during the year was: | Number | Number | ||||||||||||||
Total in company | ||||||||||||||||
8 | Directors' remuneration | |||||||||||||||
2022 | 2021 | |||||||||||||||
Remuneration included within staff costs - Note 7 - in respect of directors was as follows: | £ | £ | ||||||||||||||
Aggregate remuneration in respect of qualifying services | ||||||||||||||||
Total remuneration | 1 | |||||||||||||||
9 | Interest receivable | |||||||||||||||
2022 | 2021 | |||||||||||||||
£ | £ | |||||||||||||||
Bank interest receivable | ||||||||||||||||
10 | Interest payable and similar charges | |||||||||||||||
2022 | ||||||||||||||||
£ | ||||||||||||||||
Bank loan and overdraft interest payable | ||||||||||||||||
11 | Taxation | |||||||||||||||
(a) Tax on profit on ordinary activities | 2022 | 2021 | ||||||||||||||
The tax charge is made up as follows: | £ | £ | ||||||||||||||
UK corporation tax | ||||||||||||||||
Charge for the period | ||||||||||||||||
Charge for prior periods | ( | |||||||||||||||
Total corporation tax | ( | |||||||||||||||
Origination and reversal of timing differences | ( | ( | ||||||||||||||
Total deferred tax | ( | ( | ||||||||||||||
Tax on profit on ordinary activities | ( | |||||||||||||||
(b) Factors affecting the total tax charge for the period | ||||||||||||||||
The tax assessed for the year is lower than the standard rate of corporation tax in the UK of 19% (2021: 19%). The differences are reconciled below: | ||||||||||||||||
Lower | 2022 | 2021 | ||||||||||||||
-3682 | £ | £ | ||||||||||||||
Profit on ordinary activities before tax | ( | |||||||||||||||
Standard rate of corporation tax in the United Kingdom | ||||||||||||||||
Profit on ordinary activities multiplied by standard rate of corporation tax in the United Kingdom | ( | |||||||||||||||
Expenses not deductible for tax purposes | ||||||||||||||||
Adjustments to charge in respect of prior periods | ( | |||||||||||||||
Utilisation of tax losses | ( | |||||||||||||||
Other short term timing differences | ( | ( | ||||||||||||||
Tax on profit on ordinary activities | ( | |||||||||||||||
12 | Tangible fixed assets | |||||||||||||||
Land and buildings | Motor vehicles | Fixtures, fittings and equipment | Total | |||||||||||||
£ | £ | £ | £ | |||||||||||||
Cost or revaluation | ||||||||||||||||
At 1 January 2022 | ||||||||||||||||
At 31 December 2022 | ||||||||||||||||
Depreciation and impairment | ||||||||||||||||
At 1 January 2022 | ||||||||||||||||
Charge for the year | ||||||||||||||||
At 31 December 2022 | ||||||||||||||||
Net book values | ||||||||||||||||
At 31 December 2022 | ||||||||||||||||
At 31 December 2021 | ||||||||||||||||
13 | Debtors | |||||||||||||||
2022 | 2021 | |||||||||||||||
£ | £ | |||||||||||||||
Trade debtors | ||||||||||||||||
Amounts owed by group undertakings | ||||||||||||||||
Corporation tax recoverable | ||||||||||||||||
VAT recoverable | ||||||||||||||||
Other debtors | ||||||||||||||||
Prepayments and accrued income | ||||||||||||||||
14 | Creditors: | |||||||||||||||
amounts falling due within one year | ||||||||||||||||
2022 | 2021 | |||||||||||||||
£ | £ | |||||||||||||||
Trade creditors | ||||||||||||||||
Amounts owed to group undertakings | ||||||||||||||||
Corporation tax | ||||||||||||||||
Other taxes and social security | ||||||||||||||||
Loans from directors | ||||||||||||||||
Other creditors | ||||||||||||||||
Accruals and deferred income | ||||||||||||||||
15 | Provisions for liabilities | |||||||||||||||
Deferred taxation | ||||||||||||||||
Accelerated capital allowances, losses and other timing differences | Total | |||||||||||||||
£ | £ | |||||||||||||||
At 1 January 2022 | 10,386 | |||||||||||||||
Charge to the profit and loss account for the period | (2,596) | ( | ||||||||||||||
At 31 December 2022 | 7,790 | |||||||||||||||
2022 | 2021 | |||||||||||||||
£ | £ | |||||||||||||||
Accelerated capital allowances | ||||||||||||||||
Other provisions | ||||||||||||||||
Other provisions | Total | |||||||||||||||
£ | £ | |||||||||||||||
At 1 January 2022 | ||||||||||||||||
Credit for the period | ( | ( | ||||||||||||||
At 31 December 2022 | ||||||||||||||||
16 | Share Capital | |||||||||||||||
Called-up share capital represents the nominal value of shares that have been issued. | Nominal value | 2022 | 2022 | 2021 | ||||||||||||
£ | Number | £ | £ | |||||||||||||
Allotted, called up and fully paid: | ||||||||||||||||
17 | Reserves | |||||||||||||||
18 | Reconciliation of net debt | |||||||||||||||
At 1 January 2022 | Cash flows | New HP/Finance leases | At 31 December 2022 | |||||||||||||
£ | £ | £ | £ | |||||||||||||
Cash and cash equivalents | ( | |||||||||||||||
7,213,213 | (6,485,154) | - | 728,059 | |||||||||||||
Net debt | (6,485,154) | - | ||||||||||||||
19 | Commitments | |||||||||||||||
Capital commitments | 2022 | |||||||||||||||
£ | ||||||||||||||||
Operating lease commitments | ||||||||||||||||
Annual commitments under non-cancellable operating leases are as follows: | ||||||||||||||||
2022 | 2022 | 2021 | ||||||||||||||
Land and buildings | Other | Land and buildings | ||||||||||||||
£ | £ | £ | ||||||||||||||
Operating leases with expiry date: | ||||||||||||||||
Within one year | 63,967 | - | 63,967 | |||||||||||||
In the second to fifth years inclusive | - | - | 191,901 | |||||||||||||
63,967 | - | 255,868 | ||||||||||||||
20 | Dividends | |||||||||||||||
2022 | 2021 | |||||||||||||||
£ | £ | |||||||||||||||
Dividends for the period: | ||||||||||||||||
Dividends by type: | ||||||||||||||||
Equity dividends | ||||||||||||||||
- | 100,000 | |||||||||||||||
21 | Related party disclosures | |||||||||||||||
2022 | 2021 | |||||||||||||||
Transactions with related parties | £ | £ | ||||||||||||||
Name of related party | ||||||||||||||||
Description of relationship between the parties | R W Duncan, son in law of G Marinaro controls R D Garage Services Limited | |||||||||||||||
Description of transaction and general amounts involved | ||||||||||||||||
Amount due from/(to) the related party | ( | |||||||||||||||
Name of related party | ||||||||||||||||
Description of relationship between the parties | T Gasson, brother of M Gasson has 50% shareholding in C & G Contractors Limited | |||||||||||||||
Description of transaction and general amounts involved | ||||||||||||||||
Name of related party | ||||||||||||||||
Description of relationship between the parties | SPJ Services is owned by S Jones, brother in law of G Marinaro | |||||||||||||||
Description of transaction and general amounts involved | ||||||||||||||||
Name of related party | ||||||||||||||||
Description of relationship between the parties | Parent company | |||||||||||||||
Description of transaction and general amounts involved | ||||||||||||||||
Amount due from/(to) the related party | ( | |||||||||||||||
Name of related party | ||||||||||||||||
Description of relationship between the parties | Company directors are members of LLP | |||||||||||||||
Description of transaction and general amounts involved | ||||||||||||||||
Amount due from/(to) the related party | ||||||||||||||||
Name of related party | ||||||||||||||||
Description of relationship between the parties | Director | |||||||||||||||
Description of transaction and general amounts involved | ||||||||||||||||
Amount due from/(to) the related party | ( | ( | ||||||||||||||
Description of relationship between the parties | Daughter & son in law of G Marinaro | |||||||||||||||
Description of transaction and general amounts involved | ||||||||||||||||
Amount due from/(to) the related party | ||||||||||||||||
Key management personnel | 2022 | 2021 | ||||||||||||||
£ | £ | |||||||||||||||
All directors and certain senior employees who have responsibility for planning directing and controlling the activities of the Company are considered to be key management personnel. Total remuneration in respect of these individuals is: | ||||||||||||||||
Controlling parties | ||||||||||||||||
Immediate controlling party | ||||||||||||||||
Ultimate controlling party | ||||||||||||||||
Name of parent company which draws up consolidated financial statements: | ||||||||||||||||
Registered office of parent company: | ||||||||||||||||
Melbury House | ||||||||||||||||
34 Southborough Road | ||||||||||||||||
Bickley Bromley | ||||||||||||||||
Kent | ||||||||||||||||
BR1 2EB | ||||||||||||||||