Company registration number 02496955 (England and Wales)
WALSH INTEGRATED BUILDING SERVICES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
WALSH INTEGRATED BUILDING SERVICES LIMITED
COMPANY INFORMATION
Director
Mr I C Walsh
Secretary
Miss T Finnerty
Company number
02496955
Registered office
Chardec House 27 Kenyon Road
Lomeshaye Industrial Estate
Brierfield
Nelson
Lancashire
BB9 5SP
Auditor
Pierce C A Limited
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
Business address
Chardec House 27 Kenyon Road
Lomeshaye Industrial Estate
Brierfield
Nelson
Lancashire
BB9 5SP
Bankers
Royal Bank of Scotland plc
Head Office Branch
1st Floor North
Drummond House
1 Redheughs Avenue
Edinburgh
EH12 9JN
WALSH INTEGRATED BUILDING SERVICES LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 23
WALSH INTEGRATED BUILDING SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 1 -
The director presents the strategic report for the year ended 31 May 2023.
Review of the business
In a continuing challenging market, the results of the last 12 months have been better than anticipated. We remain optimistic about our future and are committed to reducing our carbon footprint. We also look forward to exploring new opportunities within the renewables market.
The company continues to provide clients with a fully integrated range of electrical and mechanical services complete with a design capability.
Principal risks and uncertainties
The company does not actively use financial instruments as part of its financial risk management.
The company has the benefit of whole turnover credit insurance on individual clients/contractors.
The company is exposed to the usual credit and cash flow risks associated with selling on credit and manages this through receiving stage payments and other normal credit control procedures. The company finances working capital and asset purchases through bank borrowings at the prevailing market interest rates and its exposure to price risk is therefore minimal.
Key performance indicators
The director has identified that the company's sales and margins by customer and project type are key performance indicators, and as such are reviewed and monitored by management on a monthly basis.
Mr I C Walsh
Director
2 October 2023
WALSH INTEGRATED BUILDING SERVICES LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MAY 2023
- 2 -
The director presents his annual report and financial statements for the year ended 31 May 2023.
Principal activities
The principal activity of the company continued to be the provision of electrical and mechanical installations and maintenance services.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr I C Walsh
Results and dividends
The results for the year are set out on page 7.
Interim ordinary dividends were paid amounting to £164,928. The director does not recommend payment of a final dividend.
Auditor
The auditor, Pierce C A Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of director's responsibilities
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
WALSH INTEGRATED BUILDING SERVICES LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 3 -
On behalf of the board
Mr I C Walsh
Director
2 October 2023
WALSH INTEGRATED BUILDING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WALSH INTEGRATED BUILDING SERVICES LIMITED
- 4 -
Opinion
We have audited the financial statements of Walsh Integrated Building Services Limited (the 'company') for the year ended 31 May 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and 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 Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 May 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 financial statements, we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
WALSH INTEGRATED BUILDING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WALSH INTEGRATED BUILDING SERVICES LIMITED
- 5 -
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 strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is 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 director either intends to liquidate the company or to cease operations, or has 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 financial statements 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 our procedures are capable of detecting irregularities, including fraud, is detailed below.
In identifying and assessing risks of material misstatements in respect of irregularities (including fraud) we considered the following:
The nature of the industry, the company’s control environment, the significant laws and regulations relevant to the company, and the company’s policies on detection of fraud;
Results of our enquiries of management, of those charged with governance and of those in compliance roles;
Our review of disclosures included in the financial statements, and
Engagement team discussions in respect of any potential indicators of non-compliance or fraud.
We have also performed specific procedures to consider the risk of management override and of fraud arising in significant transactions outside the normal course of business.
We did not identify a material risk of non-compliance with laws and regulations or of fraud.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
WALSH INTEGRATED BUILDING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WALSH INTEGRATED BUILDING SERVICES LIMITED
- 6 -
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 auditor's 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.
Jane Smith (Senior Statutory Auditor)
For and on behalf of Pierce C A Limited
2 October 2023
Statutory Auditor
Mentor House
Ainsworth Street
Blackburn
Lancashire
BB1 6AY
WALSH INTEGRATED BUILDING SERVICES LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MAY 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
18,524,326
13,870,342
Cost of sales
(16,079,732)
(11,887,016)
Gross profit
2,444,594
1,983,326
Administrative expenses
(1,719,926)
(1,605,179)
Other operating income
4
112,238
3,171
Operating profit
5
836,906
381,318
Interest receivable and similar income
8
13,898
1,742
Profit before taxation
850,804
383,060
Tax on profit
9
(183,775)
60,712
Profit for the financial year
667,029
443,772
The profit and loss account has been prepared on the basis that all operations are continuing operations.
WALSH INTEGRATED BUILDING SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023
- 8 -
2023
2022
£
£
Profit for the year
667,029
443,772
Other comprehensive income
Revaluation of tangible fixed assets
125,000
Tax relating to other comprehensive income
(37,627)
Other comprehensive income for the year
87,373
Total comprehensive income for the year
754,402
443,772
WALSH INTEGRATED BUILDING SERVICES LIMITED
BALANCE SHEET
AS AT 31 MAY 2023
31 May 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
329,999
205,880
Investment property
12
260,000
150,000
589,999
355,880
Current assets
Stocks
13
5,000
5,000
Debtors
14
5,413,068
3,746,539
Cash at bank and in hand
1,776,080
3,235,511
7,194,148
6,987,050
Creditors: amounts falling due within one year
15
(4,828,447)
(5,048,654)
Net current assets
2,365,701
1,938,396
Total assets less current liabilities
2,955,700
2,294,276
Provisions for liabilities
Deferred tax liability
16
72,197
247
(72,197)
(247)
Net assets
2,883,503
2,294,029
Capital and reserves
Called up share capital
18
545
545
Share premium account
34,455
34,455
Revaluation reserve
266,455
179,082
Capital redemption reserve
500
500
Profit and loss reserves
2,581,548
2,079,447
Total equity
2,883,503
2,294,029
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true
The financial statements were approved and signed by the director and authorised for issue on 2 October 2023
Mr I C Walsh
Director
Company registration number 02496955 (England and Wales)
WALSH INTEGRATED BUILDING SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023
- 10 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
£
£
Balance at 1 June 2021
530
22,470
179,082
500
1,730,403
1,932,985
Year ended 31 May 2022:
Profit and total comprehensive income for the year
-
-
-
-
443,772
443,772
Issue of share capital
18
15
11,985
-
-
-
12,000
Dividends
10
-
-
-
-
(94,728)
(94,728)
Balance at 31 May 2022
545
34,455
179,082
500
2,079,447
2,294,029
Year ended 31 May 2023:
Profit for the year
-
-
-
-
667,029
667,029
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
125,000
-
-
125,000
Tax relating to other comprehensive income
-
-
(37,627)
-
(37,627)
Total comprehensive income for the year
-
-
87,373
-
667,029
754,402
Dividends
10
-
-
-
-
(164,928)
(164,928)
Balance at 31 May 2023
545
34,455
266,455
500
2,581,548
2,883,503
WALSH INTEGRATED BUILDING SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023
- 11 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
21
(1,343,182)
1,583,817
Income taxes refunded
32,877
296,182
Net cash (outflow)/inflow from operating activities
(1,310,305)
1,879,999
Investing activities
Repayment/(advances) of loans
1,904
(3,341)
Interest received
13,898
1,742
Net cash generated from/(used in) investing activities
15,802
(1,599)
Financing activities
Proceeds from issue of shares
12,000
Dividends paid
(164,928)
(94,728)
Net cash used in financing activities
(164,928)
(82,728)
Net (decrease)/increase in cash and cash equivalents
(1,459,431)
1,795,672
Cash and cash equivalents at beginning of year
3,235,511
1,439,839
Cash and cash equivalents at end of year
1,776,080
3,235,511
WALSH INTEGRATED BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
- 12 -
1
Accounting policies
Company information
Walsh Integrated Building Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is Chardec House 27 Kenyon Road, Lomeshaye Industrial Estate, Brierfield, Nelson, Lancashire, BB9 5SP.
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.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts 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 at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company finances its operations by means of retained earnings with recourse to an overdraft facility.true
The director has considered the expected performance of the company for the current financial year and has carried out a going concern review for the 12 months from the date of his approval of these financial statements.
On the basis of this review, the director considers that the company will continue to operate within the facility agreed, and within that which he anticipates will be agreed on 28 February 2024, when the current facility expires. The director is confident that the company's overdraft facility will be renewed at the current level at this time.
As a result the director has continued to adopt the going concern basis in preparing the financial statements.
1.3
Turnover
Turnover represents amounts receivable for work done net of VAT and trade discounts. Progress payments received on account of work in progress, net of VAT, are included in turnover in the year in which such progress payments are received. Progress payments received in excess of work in progress are shown in creditors.
Long term contracts are assessed on a contract by contract basis. Profit on work in progress is recognised in progress payments received to the extent that a profitable outcome of the contract can be assessed with reasonable certainty at the balance sheet date. In determining whether the outcome of any contract in progress can be assessed with reasonable certainty the company has had due regard to market conditions and the nature of the individual contracts undertaken.
1.4
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.
WALSH INTEGRATED BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 13 -
Tangible fixed assets include investment properties professionally valued by Chartered Surveyors on an existing use open market value basis. Other tangible fixed assets are stated at cost or valuation less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:
Freehold land and buildings
No depreciation - residual value not less than carrying amount
Plant and machinery
15% Reducing Balance
Fixtures, fittings & equipment
15% Reducing Balance
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.
1.5
Investment properties
Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
WALSH INTEGRATED BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 14 -
1.9
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where 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 have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
WALSH INTEGRATED BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.10
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.
1.11
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.
1.12
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.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.14
Government grants
Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.
WALSH INTEGRATED BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 16 -
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.
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.
WIP estimates
Work in progress for ongoing contracts is considered to be a key accounting estimate for which detailed assessments of contract overall gross profitability are made by senior management for each and every contract on a quarterly basis which includes the financial year-end.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Electrical and mechanical installations and maintenance
18,524,326
13,870,342
2023
2022
£
£
Other revenue
Interest income
13,898
1,742
Grants received - Coronavirus Job Retention Scheme
-
846
The company's turnover was wholly generated within the United Kingdom.
4
Other operating income
Other operating income includes £110,000 representing the fair value gain on the revaluation of the company's investment property.
5
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(846)
Fees payable to the company's auditor for the audit of the company's financial statements
10,000
9,500
Depreciation of owned tangible fixed assets
881
1,038
WALSH INTEGRATED BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 17 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Direct and administration
50
52
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,315,130
2,154,177
Social security costs
239,042
217,620
Pension costs
45,278
44,369
2,599,450
2,416,166
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
51,985
52,301
Company pension contributions to defined contribution schemes
1,098
1,049
53,083
53,350
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
13,818
694
Other interest income
80
1,048
Total income
13,898
1,742
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
13,818
694
WALSH INTEGRATED BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 18 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
149,452
74,284
Adjustments in respect of prior periods
(134,996)
Total current tax
149,452
(60,712)
Deferred tax
Origination and reversal of timing differences
34,323
Total tax charge/(credit)
183,775
(60,712)
The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
850,804
383,060
Expected tax charge based on the standard rate of corporation tax in the UK of 20.00% (2022: 19.00%)
170,161
72,781
Tax effect of expenses that are not deductible in determining taxable profit
1,256
1,492
Adjustments in respect of prior years
(134,996)
Effect of revaluations of investments
12,323
Other non-reversing timing differences
35
11
Taxation charge/(credit) for the year
183,775
(60,712)
In addition to the amount charged/(credited) to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
£
£
Deferred tax arising on:
Revaluation of property
37,627
-
10
Dividends
2023
2022
£
£
Interim paid
164,928
94,728
WALSH INTEGRATED BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 19 -
11
Tangible fixed assets
Freehold land and buildings
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
Cost or valuation
At 1 June 2022
200,000
23,426
124,906
348,332
Revaluation
125,000
125,000
At 31 May 2023
325,000
23,426
124,906
473,332
Depreciation and impairment
At 1 June 2022
22,690
119,762
142,452
Depreciation charged in the year
110
771
881
At 31 May 2023
22,800
120,533
143,333
Carrying amount
At 31 May 2023
325,000
626
4,373
329,999
At 31 May 2022
200,000
736
5,144
205,880
The land and buildings at Chardec House, 27 Kenyon Road, Brierfield were professionally valued by Trevor Dawson, Chartered Surveyors, in November 2022, at an existing use open market value of £325,000.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
2023
2022
£
£
Cost
103,438
103,438
Accumulated depreciation
(10,354)
(10,354)
Carrying value
93,084
93,084
12
Investment property
2023
£
Fair value
At 1 June 2022
150,000
Net gains or losses through fair value adjustments
110,000
At 31 May 2023
260,000
WALSH INTEGRATED BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
12
Investment property
(Continued)
- 20 -
Investment property comprises the property at Unit 1, 29 Kenyon Road, Lomeshaye Industrial Estate, Nelson. The fair value of the investment property has been arrived at on the basis of a valuation carried out in November 2022 by Trevor Dawson, Chartered Surveyors, who are not connected with the company. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.
In the opinion of the director, the company's investment property is maintained to a high standard and he considers that its fair value is not materially different at the financial year-end date to the professional valuation referred to above.
If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
2023
2022
£
£
Cost
77,834
77,834
Accumulated depreciation
-
-
Carrying amount
77,834
77,834
13
Stocks
2023
2022
£
£
Raw materials and consumables
5,000
5,000
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,835,038
2,957,870
Corporation tax recoverable
81,891
189,052
Other debtors
380,505
485,965
Prepayments and accrued income
115,634
113,652
5,413,068
3,746,539
Included in other debtors is an amount owed by the director to the company of £300,218 (2022 - £302,122).
WALSH INTEGRATED BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 21 -
15
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
4,536,017
4,833,908
Corporation tax
149,452
74,284
Other taxation and social security
60,213
65,253
Accruals and deferred income
82,765
75,209
4,828,447
5,048,654
16
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
247
247
Revaluation of freehold property
37,627
-
Revaluation of investment property
34,323
-
72,197
247
2023
Movements in the year:
£
Liability at 1 June 2022
247
Charge to profit or loss
34,323
Charge to other comprehensive income
37,627
Liability at 31 May 2023
72,197
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
45,278
44,369
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
WALSH INTEGRATED BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 22 -
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
500
500
500
500
Ordinary 'A' shares of £1 each
45
45
45
45
545
545
545
545
19
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
13,294
1,796
Between two and five years
28,512
3,030
41,806
4,826
20
Directors' transactions
Advances or credits have been granted by the company to its director as follows:
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Mr I C Walsh - Director's loan
-
302,122
47,100
(49,004)
300,218
302,122
47,100
(49,004)
300,218
The maximum overdrawn balance on the loan account operated by the director during the year was £325,307 (2022 - £312,996).
WALSH INTEGRATED BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023
- 23 -
21
Cash (absorbed by)/generated from operations
2023
2022
£
£
Profit for the year after tax
667,029
443,772
Adjustments for:
Taxation charged/(credited)
183,775
(60,712)
Investment income
(13,898)
(1,742)
Fair value gain on investment properties
(110,000)
Depreciation and impairment of tangible fixed assets
881
1,038
Movements in working capital:
Increase in debtors
(1,775,594)
(24,097)
(Decrease)/increase in creditors
(295,375)
1,225,558
Cash (absorbed by)/generated from operations
(1,343,182)
1,583,817
22
Analysis of changes in net funds
1 June 2022
Cash flows
31 May 2023
£
£
£
Cash at bank and in hand
3,235,511
(1,459,431)
1,776,080
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