106 30/06/2023 2023-06-30 false false false false false false false false false false true false false true false false false false false false false No description of principal activities is disclosed 2022-07-01 Sage Accounts Production 21.0 - FRS102_2021 xbrli:pure xbrli:shares iso4217:GBP 05426731 2022-07-01 2023-06-30 05426731 2023-06-30 05426731 2022-06-30 05426731 2021-07-01 2022-06-30 05426731 2022-06-30 05426731 core:IntangibleAssetsOtherThanGoodwill 2022-07-01 2023-06-30 05426731 core:LandBuildings core:ShortLeaseholdAssets 2022-07-01 2023-06-30 05426731 core:PlantMachinery 2022-07-01 2023-06-30 05426731 core:FurnitureFittingsToolsEquipment 2022-07-01 2023-06-30 05426731 core:MotorVehicles 2022-07-01 2023-06-30 05426731 core:OnerousContractsExcludingVacantProperties 2022-07-01 2023-06-30 05426731 bus:Director1 2022-07-01 2023-06-30 05426731 bus:Director2 2022-07-01 2023-06-30 05426731 bus:Director3 2022-07-01 2023-06-30 05426731 bus:Director4 2022-07-01 2023-06-30 05426731 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-06-30 05426731 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-06-30 05426731 core:LandBuildings core:ShortLeaseholdAssets 2022-06-30 05426731 core:PlantMachinery 2022-06-30 05426731 core:FurnitureFittingsToolsEquipment 2022-06-30 05426731 core:MotorVehicles 2022-06-30 05426731 core:LandBuildings core:ShortLeaseholdAssets 2023-06-30 05426731 core:PlantMachinery 2023-06-30 05426731 core:FurnitureFittingsToolsEquipment 2023-06-30 05426731 core:MotorVehicles 2023-06-30 05426731 core:WithinOneYear 2023-06-30 05426731 core:WithinOneYear 2022-06-30 05426731 core:AfterOneYear 2023-06-30 05426731 core:AfterOneYear 2022-06-30 05426731 core:RetainedEarningsAccumulatedLosses 2022-06-30 05426731 core:RetainedEarningsAccumulatedLosses 2021-06-30 05426731 core:RetainedEarningsAccumulatedLosses 2023-06-30 05426731 core:RetainedEarningsAccumulatedLosses 2022-06-30 05426731 core:ShareCapital 2023-06-30 05426731 core:ShareCapital 2022-06-30 05426731 core:BetweenOneFiveYears 2023-06-30 05426731 core:BetweenOneFiveYears 2022-06-30 05426731 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-07-01 2023-06-30 05426731 core:DevelopmentCostsCapitalisedDevelopmentExpenditure 2022-06-30 05426731 core:LandBuildings core:ShortLeaseholdAssets 2022-06-30 05426731 core:PlantMachinery 2022-06-30 05426731 core:FurnitureFittingsToolsEquipment 2022-06-30 05426731 core:MotorVehicles 2022-06-30 05426731 bus:SmallEntities 2022-07-01 2023-06-30 05426731 bus:AuditExempt-NoAccountantsReport 2022-07-01 2023-06-30 05426731 bus:FullAccounts 2022-07-01 2023-06-30 05426731 bus:SmallCompaniesRegimeForAccounts 2022-07-01 2023-06-30 05426731 bus:PrivateLimitedCompanyLtd 2022-07-01 2023-06-30 05426731 core:ComputerEquipment 2022-07-01 2023-06-30 05426731 core:ComputerEquipment 2022-06-30 05426731 core:ComputerEquipment 2023-06-30 05426731 1 2022-07-01 2023-06-30
Company registration number: 05426731
Ashley & McDonough Limited
Unaudited financial statements
30 June 2023
Ashley & McDonough Limited
Contents
Strategic report
Directors report
Statement of income and retained earnings
Statement of financial position
Notes to the financial statements
Ashley & McDonough Limited
Strategic report
Year ended 30 June 2023
The directors present their Strategic Report for the year ended 30 June 2023.
1. Results
Ashley & McDonough has built a strong heritage over 60 years' supporting the social housing and public sector with solid, reliable and innovative building compliance services.
The Company has successfully navigated significant market challenges and again, delivered another set of record results.
£ Growth
Sales £12,279,952 63%
EBITDA £1,411,958 160%
2. Business Overview
The Company operates predominantly in the social housing / local authorities / public service sector providing a range of essential compliance services to client assets and customer homes. The Company focuses on keeping people safe and secure in their homes, workplace, and public buildings.
In the main, these services are highly regulated, essential services which includes the service, maintenance, installation, and repairs of:
- Gas/electric domestic and commercial heating systems.
- Renewable heating, power, and charging.
- Electrical services.
- Ventilation and air conditioning.
- Water treatment, testing and legionella protection.
- Automatic doors, barriers and access systems.
- Fire protection.
Going forward, Ashley & McDonough will continue to build on its core compliance services and:
- Grow its presence in its chosen geographical markets.
- A large focus on renewable solutions.
- Continue its partnership and expand the range of products delivered to each key client.
3. Solid Contract Base
The majority of the Company's income is derived from long-term, secure contracts.
Under its current leadership, the Company has never lost a contract and continues to build additional contracted services in a planned and progressive way, ensuring all existing service levels remain at a high level of compliance.
During the period, the Company has been successful in adding both new clients and new services to existing clients, demonstrating the high value of the services being delivered. Many of these new contracts commenced in the latter half of the accounting period and the full-year benefit of this growth will appear in 2023/24 accounts.
4. Attracting Talent
Ashley & McDonough delivers its services through a directly employed and loyal workforce. Staff turnover is extremely low and one of the best in the sector.
There are clearly wider market challenges in both recruitment and retaining staff, but thus far, Ashley & McDonough have been successful in keeping and nurturing its talent. As the business has grown, many colleagues have been promoted and developed for their new roles. The support provided, investment in team welfare, and clear career paths have been key factors of our recruitment strategy.
Despite this, there are wider and growing issues in this sector, which we are being innovative in making Ashley & McDonough as the first choice for potential candidates. We have invested heavily in both young and mature apprenticeships to create our team of the future.
5. Operating Model
Ashley & McDonough is a highly customer focused business. Our approach of providing client dedicated teams, smart technology and empowering colleagues to make decisions / get things done, has delivered excellent results.
The Company has all the infrastructure associated with a much larger organisation, but the DNA and agility of a small business which has resonated well with our clients.
Ashley & McDonough has successfully implemented strategies to safeguard service delivery and protect operating margins. Clients remain loyal and have worked closely with Ashley & McDonough to embed improvements to planning, communications and delivery, ensuring these critical services remain unaffected.
A core USP is the investment made in systems and the transparency of service delivery. Clients can rest assured their safety and overall asset compliance is in safe hands.
The ICT systems have continued to evolve in the period following another programme of investment. This slick system allows for:
- Real time data
- Efficient auto scheduling of engineers
- Robust compliance audit trail
- Performance dashboards
Ashley & McDonough believe they have the best IT solution in the sector. Client feedback supports this. A key part of the strategy going forward will be to further integrate our system with clients, remove unnecessary costs and maximising synergies.
The system removes all the paperwork and has enabled a lean and efficient administrative function.
6. Outlook
Several new clients have been secured during the period. In addition, the Company's share of existing client spend has increased significantly demonstrating the success of Ashley & McDonough's relationship and our portfolio selling approach.
There are many examples where clients have had more than one contractor and have instead decided to reduce the number of suppliers and concentrate their spend on a proven partner in Ashley & McDonough.
Future prospects are excellent. The forecast for the next financial year (2023/24) is expected to show another period of sustainable growth.
The order book is very healthy. The opportunity pipeline is the highest it has ever been with many additional contracts expected during the new 2023/24 period.
Client retention is one of the best in the sector. No clients have left Ashley & McDonough in this period.
The Company is selective on which opportunities it pursues and only where it is confident it can deliver real customer value and an attractive commercial return.
This report was approved by the board of directors on 20 October 2023 and signed on behalf of the board by:
Mr Darren Cunningham
Director
Ashley & McDonough Limited
Directors report
Year ended 30 June 2023
The directors present their report and the unaudited financial statements of the company for the year ended 30 June 2023.
Directors
The directors who served the company during the year were as follows:
Mr Michael Ashley (Resigned 7 September 2022)
Mr Darren Cunningham
Mr Colin Butterworth
Mrs Jane Cunningham
Small company provisions
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
This report was approved by the board of directors on 20 October 2023 and signed on behalf of the board by:
Mr Darren Cunningham
Director
Ashley & McDonough Limited
Statement of income and retained earnings
Year ended 30 June 2023
2023 2022
Note £ £
Turnover 12,279,952 7,550,378
Cost of sales ( 9,408,787) ( 5,996,261)
_______ _______
Gross profit 2,871,165 1,554,117
Administrative expenses ( 1,628,831) ( 1,142,373)
Other operating income 9,060 29,198
_______ _______
Operating profit 1,251,394 440,942
Interest payable and similar expenses ( 38,410) ( 9,616)
Profit before taxation 5 1,212,984 431,326
Tax on profit ( 270,364) ( 84,260)
_______ _______
Profit for the financial year and total comprehensive income 942,620 347,066
_______ _______
Dividends declared and paid or payable during the year ( 465,000) ( 75,000)
Retained earnings at the start of the year 659,002 386,936
_______ _______
Retained earnings at the end of the year 1,136,622 659,002
_______ _______
All the activities of the company are from continuing operations.
Turnover and EBITDA
The key financial performance indicators for the company are turnover and EBITDA, which are as follows:
2023 2022
£ £
Turnover 12,279,952 7,550,378
EBITDA 1,411,598 542,811
_______ | _______ |
EBITDA % 11.5% 7.2%
Ashley & McDonough Limited
Statement of financial position
30 June 2023
2023 2022
Note £ £ £ £
Fixed assets
Intangible assets 6 31,996 40,000
Tangible assets 7 827,804 261,294
_______ _______
859,800 301,294
Current assets
Stocks 60,000 70,000
Debtors 8 2,471,138 1,402,739
Cash at bank and in hand 311,853 212,632
_______ _______
2,842,991 1,685,371
Creditors: amounts falling due
within one year 9 ( 1,883,146) ( 1,179,709)
_______ _______
Net current assets 959,845 505,662
_______ _______
Total assets less current liabilities 1,819,645 806,956
Creditors: amounts falling due
after more than one year 10 ( 490,343) ( 82,838)
Provisions for liabilities ( 192,380) ( 64,816)
_______ _______
Net assets 1,136,922 659,302
_______ _______
Capital and reserves
Called up share capital 300 300
Profit and loss account 1,136,622 659,002
_______ _______
Shareholders funds 1,136,922 659,302
_______ _______
For the year ending 30 June 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
Directors responsibilities:
- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
These financial statements were approved by the board of directors and authorised for issue on 20 October 2023 , and are signed on behalf of the board by:
Mr Darren Cunningham
Director
Company registration number: 05426731
Ashley & McDonough Limited
Notes to the financial statements
Year ended 30 June 2023
1. General information
The company is a private company limited by shares, registered in England & Wales. The address of the registered office is 15b Tiger Court, Kings Drive, Kings Business Park, Prescot, Merseyside, L34 1BH.
2. Statement of compliance
These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at a revalued amount, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Development costs - 20 % straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Research and development
Research expenditure is written off in the year in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Short leasehold property - 10 % straight line
Plant and machinery - 15 % straight line
Fittings fixtures and equipment - 15 % straight line
Motor vehicles - 20 % straight line
Computer equipment - 25 % straight line
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.Debt instruments are subsequently measured at amortised cost.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 106 (2022: 80 ).
5. Profit before taxation
Profit before taxation is stated after charging/(crediting):
2023 2022
£ £
Amortisation of intangible assets 8,004 4,039
Depreciation of tangible assets 149,716 72,392
_______ _______
6. Intangible assets
Development costs Total
£ £
Cost
At 1 July 2022 and 30 June 2023 69,087 69,087
_______ _______
Amortisation
At 1 July 2022 29,087 29,087
Charge for the year 8,004 8,004
_______ _______
At 30 June 2023 37,091 37,091
_______ _______
Carrying amount
At 30 June 2023 31,996 31,996
_______ _______
At 30 June 2022 40,000 40,000
_______ _______
The development costs relate to the development of an information technology system central to the operation of the business.
7. Tangible assets
Short leasehold property Plant and machinery Fixtures, fittings and equipment Motor vehicles Computer equipment Total
£ £ £ £ £ £
Cost
At 1 July 2022 26,181 33,163 31,988 237,653 77,821 406,806
Additions 5,000 39,657 11,550 647,822 17,681 721,710
Disposals - - - ( 14,910) - ( 14,910)
_______ _______ _______ _______ _______ _______
At 30 June 2023 31,181 72,820 43,538 870,565 95,502 1,113,606
_______ _______ _______ _______ _______ _______
Depreciation
At 1 July 2022 9,574 12,212 9,556 79,731 34,439 145,512
Charge for the year 2,952 5,969 5,976 113,867 20,952 149,716
Disposals - - - ( 9,426) - ( 9,426)
_______ _______ _______ _______ _______ _______
At 30 June 2023 12,526 18,181 15,532 184,172 55,391 285,802
_______ _______ _______ _______ _______ _______
Carrying amount
At 30 June 2023 18,655 54,639 28,006 686,393 40,111 827,804
_______ _______ _______ _______ _______ _______
At 30 June 2022 16,607 20,951 22,432 157,922 43,382 261,294
_______ _______ _______ _______ _______ _______
8. Debtors
2023 2022
£ £
Trade debtors 1,095,883 663,814
Other debtors 1,375,255 738,925
_______ _______
2,471,138 1,402,739
_______ _______
9. Creditors: amounts falling due within one year
2023 2022
£ £
Bank loans and overdrafts 5,556 5,556
Trade creditors 1,042,770 646,889
Social security and other taxes 518,696 326,044
Other creditors 316,124 201,220
_______ _______
1,883,146 1,179,709
_______ _______
Included within other creditors due within one year are obligations under hire purchase contracts amounting to £130,050 (2022: £18,642) which are secured on the assets to which they relate.
10. Creditors: amounts falling due after more than one year
2023 2022
£ £
Bank loans and overdrafts 32,870 38,426
Other creditors 457,473 44,412
_______ _______
490,343 82,838
_______ _______
Included within other creditors due in more than one year are obligations under hire purchase contracts amounting to £457,473 (2022: £44,412) which are secured on the assets to which they relate.
Included within creditors: amounts falling due after more than one year is an amount of £ 10,648 (2022 £ 16,204 ) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.
This liability relates to a government secured bank loan obtained under the Coronavirus Bounce Back Loan Scheme which is being repaid over 10 years from the initial drawdown.
11. Operating leases
The company as lessee
The total future minimum lease payments under non-cancellable operating leases are as follows:
£ £
Not later than 1 year 78,013 48,975
Later than 1 year and not later than 5 years 123,979 33,250
_______ _______
201,992 82,225
_______ _______