Company registration number 02758962 (England and Wales)
SKILL SCAFFOLDING LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2023
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
SKILL SCAFFOLDING LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 26
SKILL SCAFFOLDING LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr. A Skilton
Mrs. A Harding
Mr. S Cerasoli
Mr. D Clement
Company number
02758962
Registered office
Skill House
Andes Road
Nursling, Southampton
Southampton
SO16 0YZ
Auditor
TC Group
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
SKILL SCAFFOLDING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
The directors present the strategic report for the year ended 31 March 2023.
Business review
As a result of the economic climate both turnover and operating profit have dropped in the year.
Looking ahead
Again, with the economic climate as it is we are hopeful that clients do not cancel or slow down on projects but we are ever mindful of the need to be flexible in controlling our costs. We are continuing to focus on introducing ourselves to new clients whose projects may not be affected as much by a recession, for example rail works, and re-cladding projects both of which we are qualified and equipped to undertake.
Interest rates also remain a concern, along with the increase in outgoings with energy costs, but we are constantly aware of the need to maintain controls in this area and believe we have the ability to overcome any significant issues as we move forward.
The System Scaffold that we invested in was a great success when utilized, and we are now focusing on winning jobs on which we can use this.
Key Performance Indicators
Given the nature of our business the Directors are of the opinion that the use of non-financial KPI’s is not necessary to obtain an understanding of the company’s performance. We manage the following financial KPI’s:
Turnover £9.6m
Gross Profit 2.5m
Profit Before Tax 1.1m
Mr. A Skilton
Director
17 October 2023
SKILL SCAFFOLDING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -
The directors present their annual report and financial statements for the year ended 31 March 2023.
Principal activities
The principal activity of the company continued to be that of scaffolding erection and scaffolding services.
Results and dividends
The results for the year are set out on page 9.
Ordinary dividends were paid amounting to £908,468.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr. A Skilton
Mrs. A Harding
Mr. S Cerasoli
Mr. D Clement
Auditor
TC Group were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Statement of directors' responsibilities
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies 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 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. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
SKILL SCAFFOLDING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
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.
On behalf of the board
Mr. A Skilton
Director
17 October 2023
SKILL SCAFFOLDING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKILL SCAFFOLDING LIMITED
- 5 -
Opinion
We have audited the financial statements of Skill Scaffolding Limited (the 'company') for the year ended 31 March 2023 which comprise 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 March 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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 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.
SKILL SCAFFOLDING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SKILL SCAFFOLDING LIMITED
- 6 -
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 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 strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
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.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Extent to which the audit was considered capable of detecting irregularities, including fraud
The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.
SKILL SCAFFOLDING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SKILL SCAFFOLDING LIMITED
- 7 -
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006) and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including the key drivers for management’s remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.
SKILL SCAFFOLDING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SKILL SCAFFOLDING LIMITED
- 8 -
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.
Graham Figgins FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
17 October 2023
Office: Portsmouth
SKILL SCAFFOLDING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
9,573,411
10,312,243
Cost of sales
(7,085,542)
(6,780,891)
Gross profit
2,487,869
3,531,352
Administrative expenses
(1,339,854)
(1,788,720)
Other operating income
85,650
Operating profit
4
1,148,015
1,828,282
Interest receivable and similar income
7
486
Interest payable and similar expenses
8
(49,406)
(81,245)
Profit before taxation
1,098,609
1,747,523
Tax on profit
9
(213,438)
(277,422)
Profit for the financial year
885,171
1,470,101
Other comprehensive income
Revaluation of tangible fixed assets
(642,762)
4,606,253
Tax relating to other comprehensive income
122,125
(875,188)
Effect of future tax rates used in deferred tax calculation
(237,810)
-
Total comprehensive income for the year
126,724
5,201,166
The profit and loss account has been prepared on the basis that all operations are continuing operations.
SKILL SCAFFOLDING LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
7,130,834
7,755,856
Current assets
Debtors
12
1,591,381
1,624,574
Cash at bank and in hand
698,110
1,209,324
2,289,491
2,833,898
Creditors: amounts falling due within one year
13
(1,862,194)
(2,482,730)
Net current assets
427,297
351,168
Total assets less current liabilities
7,558,131
8,107,024
Creditors: amounts falling due after more than one year
14
(994,104)
(955,529)
Provisions for liabilities
16
(1,222,369)
(1,028,093)
Net assets
5,341,658
6,123,402
Capital and reserves
Called up share capital
18
1,000
1,000
Revaluation reserve
2,972,618
3,731,065
Profit and loss reserves
2,368,040
2,391,337
Total equity
5,341,658
6,123,402
The financial statements were approved by the board of directors and authorised for issue on 17 October 2023 and are signed on its behalf by:
Mr. A Skilton
Mrs. A Harding
Director
Director
Company Registration No. 02758962
SKILL SCAFFOLDING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2021
1,000
2,841,253
2,842,253
Year ended 31 March 2022:
Profit for the year
-
-
1,470,101
1,470,101
Other comprehensive income:
Revaluation of tangible fixed assets
-
4,606,253
-
4,606,253
Tax relating to other comprehensive income
-
(875,188)
(875,188)
Total comprehensive income for the year
-
3,731,065
1,470,101
5,201,166
Dividends
10
-
-
(1,920,017)
(1,920,017)
Balance at 31 March 2022
1,000
3,731,065
2,391,337
6,123,402
Year ended 31 March 2023:
Profit for the year
-
-
885,171
885,171
Other comprehensive income:
Revaluation of tangible fixed assets
-
(642,762)
-
(642,762)
Tax relating to other comprehensive income
-
(115,685)
(115,685)
Total comprehensive income for the year
-
(758,447)
885,171
126,724
Dividends
10
-
-
(908,468)
(908,468)
Balance at 31 March 2023
1,000
2,972,618
2,368,040
5,341,658
SKILL SCAFFOLDING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
23
1,510,665
1,870,123
Interest paid
(49,406)
(81,245)
Income taxes (paid)/refunded
(308,769)
12,903
Net cash inflow from operating activities
1,152,490
1,801,781
Investing activities
Purchase of tangible fixed assets
(313,440)
(442,311)
Proceeds from disposal of tangible fixed assets
83,175
5,000
Loans made
-
(86,951)
Repayment of loans
89,351
Interest received
486
Net cash used in investing activities
(140,914)
(523,776)
Financing activities
Repayment of bank loans
(393,461)
(122,857)
Payment of hire purchase obligations
(220,861)
(259,105)
Dividends paid
(908,468)
(1,920,017)
Net cash used in financing activities
(1,522,790)
(2,301,979)
Net decrease in cash and cash equivalents
(511,214)
(1,023,974)
Cash and cash equivalents at beginning of year
1,209,324
2,233,298
Cash and cash equivalents at end of year
698,110
1,209,324
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
1
Accounting policies
Company information
Skill Scaffolding Limited is a private company limited by shares incorporated in England and Wales. The registered office is Skill House, Andes Road, Nursling, Southampton, SO16 0YZ.
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 plant and equipment at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Skill Scaffolding Limited is a wholly owned subsidiary of Skilton Group Limited and the results of Skill Scaffolding Limited are included in the consolidated financial statements of Skilton Group Limited which are available from Skill House Andes Road, Nursling, Southampton, Hampshire, United Kingdom, SO16 0YZ.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
The turnover shown in the profit and loss account represents amounts Invoiced during the year, exclusive of Value Added Tax.
In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
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.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold Property
2% straight line
Plant & Equipment
Between 3 and 30 years straight line
Fixtures & Fittings
15% on reducing balance
Motor Vehicles
25% on 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.
The directors have continued to apply the revaluation model to plant and equipment. The plant and equipment has been revalued to fair value which the directors have based on second hand market prices, which they consider to be appropriate. The revaluation movement has been taken directly to the revaluation reserve within the equity section of the balance sheet and is reported as other comprehensive income. Deferred tax has been recognised on the revaluation of plant and equipment. The deferred tax expenses has been charged to the revaluation reserve, with a corresponding liability held within the deferred tax provision on the balance sheet.
1.5
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).
1.6
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.
1.7
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.
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
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.
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.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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.
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.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax Is recognised in respect of all timing differences that have originated but not reversed at the
balance sheet date where transactions or events have occurred at that date that will result in an
obligation to pay more, or a right to pay less or to receive more tax.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Assets held under hire purchase agreements are capitalised and disclosed under tangible fixed assets at their fair value. The capital element of the future payments is treated as a liability and the interest is charged to the profit and loss account on a straight line basis.
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.
1.13
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.
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
1.14
The company operates a defined contribution pension scheme for employees. The assets of the scheme
are held separately from those of the company. The annual contributions payable are charged to the
profit and loss account.
1.15
Amounts recoverable on contracts
Amounts recoverable on contracts which are included in debtors are stated at cost, plus attributable
profit to the extent that this is reasonably certain after making provision for contingencies, less any losses
Incurred or foreseen, in bringing contracts to completion, and less amounts received as progress
payments.
2
Judgements and key sources of estimation uncertainty
In the application of the 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 these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The following judgements have had the most significant effect on amounts recognised in the financial statements.
Amounts recoverable on long term contracts
In the case of contracts treated as long term the directors assess the stage of completion by comparing the current costs with the total expected costs for the project. Consideration is given to external factors that may affect the overall outcome of the project.
Tangible fixed assets - plant and equipment
The directors have applied the revaluation model for plant and equipment. The plant and equipment has been revalued to fair value which the directors have based on second hand market prices, which they consider to be appropriate. The directors have obtained the second hand prices by doing their own research. An independent valuer was not involved.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover
United Kingdom
9,573,411
10,312,243
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(85,650)
Fees payable to the company's auditor for the audit of the company's financial statements
12,500
12,000
Depreciation of owned tangible fixed assets
667,948
299,754
Depreciation of tangible fixed assets held under hire purchases
128,601
142,950
Impairment of owned tangible fixed assets
202,467
(Profit)/loss on disposal of tangible fixed assets
(50,906)
9,080
Operating lease charges
33,873
53,236
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Production staff
95
108
Administration staff
15
12
Total
110
120
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
5,299,636
5,253,850
Social security costs
82,615
67,771
Pension costs
19,105
62,189
5,401,356
5,383,810
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
173,232
172,474
Company pension contributions to defined contribution schemes
4,533
51,516
177,765
223,990
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2022 - 4).
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
18
Other interest income
468
Total income
486
Investment income includes the following:
Interest on financial assets not measured at fair value through profit or loss
18
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
35,310
50,717
Other finance costs:
Interest on finance leases and hire purchase contracts
14,096
30,528
49,406
81,245
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
134,847
241,137
Adjustments in respect of prior periods
(31,832)
Total current tax
134,847
209,305
Deferred tax
Origination and reversal of timing differences
23,032
68,117
Changes in tax rates
55,559
Total deferred tax
78,591
68,117
Total tax charge
213,438
277,422
The actual charge 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
1,098,609
1,747,523
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
208,736
332,029
Tax effect of expenses that are not deductible in determining taxable profit
19,035
50,130
Adjustments in respect of prior years
29,643
Group relief
(24,065)
(23,007)
Research and development tax credit
(61,475)
Deferred tax adjustments in respect of prior years
(834)
Enhanced capital allowances
(44,993)
(49,898)
Change in future tax rate
55,559
Taxation charge for the year
213,438
277,422
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
(Continued)
- 21 -
In addition to the amount charged 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 plant and equipment
115,685
875,188
The effect of the change in corporation tax rate noted above reflects the fact that the deferred tax liability has been provided for at a rate of 25% as this is the rate which will be in effect in the future.
10
Dividends
2023
2022
£
£
Paid
908,468
1,920,017
11
Tangible fixed assets
Freehold Property
Plant & Equipment
Fixtures & Fittings
Motor Vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 April 2022
2,066,528
7,520,175
116,520
2,079,462
11,782,685
Additions
742,355
10,157
94,046
846,558
Disposals
(227,639)
(25,499)
(219,030)
(472,168)
Revaluation
(642,762)
(642,762)
At 31 March 2023
1,838,889
7,619,768
101,178
1,954,478
11,514,313
Depreciation and impairment
At 1 April 2022
298,349
2,212,728
91,326
1,424,426
4,026,829
Depreciation charged in the year
12,062
610,996
4,566
168,925
796,549
Eliminated in respect of disposals
(227,639)
(19,268)
(192,992)
(439,899)
At 31 March 2023
82,772
2,823,724
76,624
1,400,359
4,383,479
Carrying amount
At 31 March 2023
1,756,117
4,796,044
24,554
554,119
7,130,834
At 31 March 2022
1,768,179
5,307,447
25,194
655,036
7,755,856
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Tangible fixed assets
(Continued)
- 22 -
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant & Equipment
1,535,841
379,352
Motor Vehicles
212,691
327,077
Freehold property
135,684
138,606
1,884,216
845,035
The plant and equipment was revalued to fair value by the directors on 31st March 2023. If plant and equipment were measured using the cost model, the carrying amounts would have been approximately £1,232,919 (2022 - £701,194), being cost £3,656,278 (2022 - £2,913,922) and depreciation £210,631 (2022 - £204,765).
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
151,811
1,074,554
Amounts recoverable on contracts
966,852
307,004
Amounts owed by group undertakings
310,642
84,136
Other debtors
46,895
99,253
Prepayments and accrued income
115,181
59,627
1,591,381
1,624,574
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
13
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
142,598
392,504
Obligations under hire purchase agreements
15
343,530
213,403
Trade creditors
473,856
777,167
Payments received on account
157,110
Corporation tax
35,310
209,232
Other taxation and social security
123,578
290,139
Other creditors
506,949
531,195
Accruals and deferred income
79,263
69,090
1,862,194
2,482,730
The bank loan is secured by way of a fixed charge over the freehold property of the company.
The liabilities in respect of hire purchase agreements are secured on the assets to which they relate to.
14
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans
537,989
681,544
Obligations under hire purchase agreements
15
456,115
273,985
994,104
955,529
The mortgage included within bank loans is secured by way of a fixed charge over the freehold property of the company. The mortgage has a interest rate of base rate + 2% and is being repaid monthly.
Also included within bank loans is a Coronavirus Business Interruption Loan. This loan has a floating interest rate of base rate + 2.53% and is being repaid monthly.
The liabilities in respect of hire purchase agreements are secured on the assets to which they relate to.
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
15
Hire purchase obligations
2023
2022
Future minimum lease payments due under hire purchase contracts:
£
£
Within one year
343,530
213,403
In two to five years
456,115
273,985
799,645
487,388
Hire purchase payments represent rentals payable by the company for certain items of plant and machinery, freehold property and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
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
260,024
178,608
Revaluation of plant and equipment
990,873
875,188
Retirement benefit obligations
(28,528)
(25,703)
1,222,369
1,028,093
2023
Movements in the year:
£
Liability at 1 April 2022
1,028,093
Charge to profit or loss
78,591
Charge to other comprehensive income
115,685
Liability at 31 March 2023
1,222,369
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
19,105
62,189
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.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
700
700
700
700
Ordinary A shares of £1 each
100
100
100
100
Ordinary B shares of £1 each
100
100
100
100
Ordinary C shares of £1 each
100
100
100
100
1,000
1,000
1,000
1,000
19
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases of £121,465 (2022 - £68,854).
20
Related party transactions
At the yearend the company was owed £310,642 (2022 - £84,136) from Skilton Group Limited.
Dividends totalling £245,312 (2022 - £236,312) were paid in the year in respect of shares held by the company's directors.
21
Ultimate controlling party
The ultimate parent company is Skilton Group Limited, a company registered in England and Wales.
SKILL SCAFFOLDING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
22
Analysis of changes in net debt
1 April 2022
Cash flows
New hire purchase agreements
31 March 2023
£
£
£
£
Cash at bank and in hand
1,209,324
(511,214)
-
698,110
Borrowings excluding overdrafts
(1,074,048)
393,461
-
(680,587)
Obligations under hire purchase agreements
(487,388)
220,861
(533,118)
(799,645)
(352,112)
103,108
(533,118)
(782,122)
23
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
885,171
1,470,101
Adjustments for:
Taxation charged
213,438
277,422
Finance costs
49,406
81,245
Investment income
(486)
(Gain)/loss on disposal of tangible fixed assets
(50,906)
9,080
Depreciation and impairment of tangible fixed assets
796,549
645,171
Movements in working capital:
Increase in debtors
(56,158)
(912,008)
(Decrease)/increase in creditors
(326,835)
299,598
Cash generated from operations
1,510,665
1,870,123
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.200Mr. A SkiltonMrs. A HardingMr. S CerasoliMr. D Clement885171027589622022-04-012023-03-3102758962bus:Director12022-04-012023-03-3102758962bus:Director22022-04-012023-03-3102758962bus:Director32022-04-012023-03-3102758962bus:Director42022-04-012023-03-3102758962bus:RegisteredOffice2022-04-012023-03-31027589622023-03-31027589622021-04-012022-03-3102758962core:RetainedEarningsAccumulatedLosses2021-04-012022-03-3102758962core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3102758962core:RevaluationReserve2022-04-012023-03-31027589622022-03-3102758962core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3102758962core:PlantMachinery2023-03-3102758962core:FurnitureFittings2023-03-3102758962core:MotorVehicles2023-03-3102758962core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3102758962core:PlantMachinery2022-03-3102758962core:FurnitureFittings2022-03-3102758962core:MotorVehicles2022-03-3102758962core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3102758962core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3102758962core:CurrentFinancialInstruments2023-03-3102758962core:CurrentFinancialInstruments2022-03-3102758962core:Non-currentFinancialInstruments2023-03-3102758962core:Non-currentFinancialInstruments2022-03-3102758962core:ShareCapital2023-03-3102758962core:ShareCapital2022-03-3102758962core:RevaluationReserve2023-03-3102758962core:RevaluationReserve2022-03-3102758962core:RetainedEarningsAccumulatedLosses2023-03-3102758962core:RetainedEarningsAccumulatedLosses2022-03-3102758962core:ShareCapital2021-03-3102758962core:RevaluationReserve2021-03-3102758962core:RetainedEarningsAccumulatedLosses2021-03-3102758962core:ShareCapitalOrdinaryShares2023-03-3102758962core:ShareCapitalOrdinaryShares2022-03-3102758962core:RevaluationReserve2021-04-012022-03-3102758962core:RevenueReservesInvestmentFundsOnly2021-04-012022-03-310275896212021-04-012022-03-310275896212022-04-012023-03-31027589622022-03-31027589622021-03-3102758962core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3102758962core:PlantMachinery2022-04-012023-03-3102758962core:FurnitureFittings2022-04-012023-03-3102758962core:MotorVehicles2022-04-012023-03-3102758962core:UKTax2022-04-012023-03-3102758962core:UKTax2021-04-012022-03-310275896222022-04-012023-03-310275896222021-04-012022-03-3102758962core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3102758962core:PlantMachinery2022-03-3102758962core:FurnitureFittings2022-03-3102758962core:MotorVehicles2022-03-3102758962core:CurrentFinancialInstruments12023-03-3102758962core:CurrentFinancialInstruments12022-03-3102758962core:WithinOneYear2023-03-3102758962core:WithinOneYear2022-03-3102758962core:BetweenTwoFiveYears2023-03-3102758962core:BetweenTwoFiveYears2022-03-3102758962bus:PrivateLimitedCompanyLtd2022-04-012023-03-3102758962bus:FRS1022022-04-012023-03-3102758962bus:Audited2022-04-012023-03-3102758962bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP