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Registered number: 03893139









CONNECT SCAFFOLDING LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 JANUARY 2023

 
CONNECT SCAFFOLDING LIMITED
 

COMPANY INFORMATION


DIRECTORS
Mr O J Cave 
Mr V Caiger (appointed 19 January 2023)




COMPANY SECRETARY
K Boswell



REGISTERED NUMBER
03893139



REGISTERED OFFICE
Hadham Park
Hadham Road

Bishop's Stortford

Hertfordshire

CM23 1JH




TRADING ADDRESS
Hadham Park
Hadham Road

Bishop's Stortford

Hertfordshire

CM23 1JH






INDEPENDENT AUDITORS
Price Bailey LLP
Chartered Accountants & Statutory Auditors

Causeway House

1 Dane Street

Bishop's Stortford

Hertfordshire

CM23 3BT





 
CONNECT SCAFFOLDING LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 7
Statement of Income and Retained Earnings
 
8
Statement of Financial Position
 
9
Notes to the Financial Statements
 
10 - 22


 
CONNECT SCAFFOLDING LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

BUSINESS REVIEW
 
Connect Scaffolding are an award winning provider of high quality scaffolds, access and hoist solutions across London and the South East.
Our focus continues to be driving efficiencies and margin improvement, market conditions have improved post pandemic. Directors report results in line with expectations turnover increased to £14.85m compared to (2022 - £12.80m). Profit after tax decreased to £2.07m (2022 - £2.14m), a margin amounting to 14.0% (2022 - 16.8%).
We continue to focus on investing in our people to develop their potential. We encourage and support all our staff to engage in lifelong learning and continue to offer apprenticeships and other forms of vocational training. 
As always, the markets we operate in remain extremely competitive. The wide-ranging knowledge, skills, and experience across the Team at Connect enable us to operate across all industry sectors, including construction, industrial, heritage, events, infrastructure, rail and asbestos, giving us some resilience as we adapt to market changes.
We pride ourselves on delivering our services to our customers safely and sustainably, helping them to reduce the environmental impact of their activities. We have again retained all our key supply chain credentials, including NASC audited membership, FORS Gold for our vehicle fleet and a RoSPA Gold Medal Award for 8 consecutive years of Golds in the RoSPA Health and Safety Awards.
As ever we are extremely proud and grateful to our remarkable teams, their hard work, professionalism, and commitment is what sets us apart.
On 30 January 2023, ultimate ownership of the business was transferred to Connect Trustees Limited an Employee Ownership Trust. This change in ownership provides long term stability and helps improve employee engagement and retention by offering all staff a direct stake in the company's future success.

PRINCIPAL RISKS AND UNCERTAINTIES
 
A difficult economic and political climate, creates many uncertainties for the future, ongoing developments are being carefully monitored.
Our continuing activities in research and development of new technology, systems of work and equipment continues to carry some risk and uncertainty.
The Leadership Team is confident through continuous monitoring and review of our business strategy, policies and procedures these risks, and uncertainties can be appropriately managed, and their effects mitigated. 

Page 1

 
CONNECT SCAFFOLDING LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

FINANCIAL KEY PERFORMANCE INDICATORS
 
The principal goal of the business is to achieve sustainable growth and maximum return through delivering exceptional service to our customers and creating opportunity for all our employees.
Management focus on KPI’s in each department is helping to achieve company objectives. Overall, a promising set of results despite the challenges.


This report was approved by the board and signed on its behalf.





Mr O J Cave
Director

Date: 24 October 2023

Page 2

 
CONNECT SCAFFOLDING LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2023

The Directors present their report and the financial statements for the year ended 31 January 2023.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £2,075,230 (2022 - £2,142,868).

The Directors do not propose a final dividend.

DIRECTORS

The Directors who served during the year were:

Mr O J Cave 
Mr V Caiger (appointed 19 January 2023)

POST BALANCE SHEET EVENTS

There have been no significant events affecting the Company since the year end.

FUTURE DEVELOPMENTS

Within Management and Administration our investments in our ITC systems will deliver further efficiencies and continue to improve our customer service.

AUDITORS

Under section 487(2) of the Companies Act 2006Price Bailey LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are Directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 3

 
CONNECT SCAFFOLDING LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2023

DIRECTORS' RESPONSIBILITIES STATEMENT

The Directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

The Directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements and other information included in Directors' Reports may differ from legislation in other jurisdictions.

This report was approved by the board and signed on its behalf.
 





Mr O J Cave
Director

Date: 24 October 2023

Page 4

 
CONNECT SCAFFOLDING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CONNECT SCAFFOLDING LIMITED
 

OPINION


We have audited the financial statements of Connect Scaffolding Limited (the 'Company') for the year ended 31 January 2023, which comprise the Statement of Income and Retained Earnings, the Statement of Financial Position and the related notes, including a summary of significant accounting policiesThe 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 January 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.


BASIS FOR OPINION


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


OTHER INFORMATION


The other information comprises the information included in the Annual Report other than the financial statements and  our Auditors' 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.


Page 5

 
CONNECT SCAFFOLDING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CONNECT SCAFFOLDING LIMITED (CONTINUED)


OPINION ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the 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 Directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


RESPONSIBILITIES OF DIRECTORS
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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.


Page 6

 
CONNECT SCAFFOLDING LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CONNECT SCAFFOLDING LIMITED (CONTINUED)


AUDITORS' RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

• enquiry of management around actual and potential litigation and claims, and any known instances of    non-compliance;
• performing audit work over the risks of management override of controls, including testing of journal    entries and other adjustments for appropriateness, evaluating the business rationale of significant     transactions outside the normal course of business and reviewing accounting estimates for bias; and
• reviewing our work throughout the audit file for evidence of non-compliance.
Due to factors such as the use of judgement, sample testing and the inherent limitations of internal control, these procedures are capable of obtaining reasonable, but not absolute, assurance that irregularities have been detected.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


USE OF OUR REPORT
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Richard Vass (Senior Statutory Auditor)
  
for and on behalf of
Price Bailey LLP
 
Chartered Accountants
Statutory Auditors
  
Causeway House
1 Dane Street
Bishop's Stortford
Hertfordshire
CM23 3BT

 
Date: 
24 October 2023
Page 7

 
CONNECT SCAFFOLDING LIMITED
 

STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 JANUARY 2023

2023
2022
Note
£
£

  

Turnover
 3 
14,850,699
12,798,882

Cost of sales
  
(10,396,270)
(9,467,066)

Gross profit
  
4,454,429
3,331,816

Administrative expenses
  
(2,046,647)
(969,233)

Other operating income
 4 
109,173
93,646

Operating profit
 5 
2,516,955
2,456,229

Interest receivable and similar income
 8 
71,986
563

Interest payable and similar expenses
 9 
(3,210)
-

Profit before tax
  
2,585,731
2,456,792

Tax on profit
 10 
(510,501)
(313,924)

Profit after tax
  
2,075,230
2,142,868

  

  

Retained earnings at the beginning of the year
  
13,279,776
11,136,908

Profit for the year
  
2,075,230
2,142,868

Dividends declared and paid
  
(8,690,881)
-

Retained earnings at the end of the year
  
6,664,125
13,279,776

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 10 to 22 form part of these financial statements.

Page 8

 
CONNECT SCAFFOLDING LIMITED
REGISTERED NUMBER: 03893139

STATEMENT OF FINANCIAL POSITION
AS AT 31 JANUARY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 13 
1,012,801
1,209,222

Current assets
  

Debtors: amounts falling due within one year
 14 
2,712,241
5,705,387

Cash at bank and in hand
 15 
9,940,836
7,218,567

  
12,653,077
12,923,954

Creditors: amounts falling due within one year
 16 
(6,858,527)
(692,819)

Net current assets
  
 
 
5,794,550
 
 
12,231,135

Total assets less current liabilities
  
6,807,351
13,440,357

Provisions for liabilities
  

Deferred tax
 17 
(143,216)
(160,571)

Net assets
  
6,664,135
13,279,786


Capital and reserves
  

Called up share capital 
 18 
6
6

Capital redemption reserve
  
4
4

Profit and loss account
  
6,664,125
13,279,776

  
6,664,135
13,279,786


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr O J Cave
Director

Date: 24 October 2023

The notes on pages 10 to 22 form part of these financial statements.

Page 9

 
CONNECT SCAFFOLDING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

1.


GENERAL INFORMATION

Connect Scaffolding Limited is a private Company limited by shares, incorporated in England and Wales. 
The address of its registered office is Hadham Park, Hadham Road, Bishop's Stortford, Hertfordshire, CM23 1JH.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.

The Company's functional and presentational currency is that of Pounds Sterling.

The following principal accounting policies have been applied:

 
2.2

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Connect Access Group Limited as at 31 January 2023 and these financial statements may be obtained from Companies House.

Page 10

 
CONNECT SCAFFOLDING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.3

TURNOVER

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

INTANGIBLE ASSETS

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.5

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Page 11

 
CONNECT SCAFFOLDING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.ACCOUNTING POLICIES (CONTINUED)


2.5
TANGIBLE FIXED ASSETS (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line or reducing  balance method.

Depreciation is provided on the following basis:

Short term Leasehold Property
-
10%
straight line
Plant and machinery
-
10%
straight line
Motor vehicles
-
25%
reducing balance
Office equipment
-
25%
straight line
Computer equipment
-
25%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

OPERATING LEASES: THE COMPANY AS LESSEE

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.7

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.8

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Page 12

 
CONNECT SCAFFOLDING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.9

FINANCIAL INSTRUMENTS

The Company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration, expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Income Statement.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date. 

 
2.10

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

  
2.11
PENSIONS

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Income and Retained Earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.12

DIVIDENDS

Equity dividends are recognised when they become legally payable.

Page 13

 
CONNECT SCAFFOLDING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.13

INTEREST INCOME

Interest income is recognised in profit or loss using the effective interest method.

 
2.14

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


3.


TURNOVER

The whole of the turnover is attributable to that of scaffolding specialists.

All turnover arose within the United Kingdom.


4.


OTHER OPERATING INCOME

2023
2022
£
£

Other operating income
109,173
93,646


Page 14

 
CONNECT SCAFFOLDING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

5.


OPERATING PROFIT

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
290,933
306,507

Fees payable to the Company's audits and associates for the audit of the Company's annual financial statements
11,385
9,900

Other operating lease rentals
60,160
60,150

Defined contribution pension cost
135,200
108,540


6.


EMPLOYEES

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
5,104,043
5,044,032

Social security costs
546,221
519,660

Cost of defined contribution scheme
135,200
108,540

5,785,464
5,672,232


The average monthly number of employees, including the Directors, during the year was as follows:


        2023
        2022
            No.
            No.







Administration
14
14



Operations Management
22
21



Operatives
82
91

118
126


7.


DIRECTORS' REMUNERATION

2023
2022
£
£

Company contributions to defined contribution pension schemes
28,000
2,000


During the year retirement benefits were accruing to 1 Director (2022 - 1) in respect of defined contribution pension schemes.

Page 15

 
CONNECT SCAFFOLDING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

8.


INTEREST RECEIVABLE

2023
2022
£
£


Other interest receivable
71,986
563


9.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Bank interest payable
3,210
-


10.


TAXATION


2023
2022
£
£

Corporation tax


Current tax on profits for the year
508,209
287,618

Adjustments in respect of previous periods
19,647
(170,754)

527,856
116,864


Group taxation relief
-
110,081


Total current tax
527,856
226,945

Deferred tax


Origination and reversal of timing differences
(17,355)
86,979


Taxation on profit on ordinary activities
510,501
313,924
Page 16

 
CONNECT SCAFFOLDING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023
 
10.TAXATION (CONTINUED)


FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,585,731
2,456,792


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
491,289
466,790

Effects of:


Expenses not deductible for tax purposes
11,378
2,110

Adjustments to tax charge in respect of prior periods
19,647
(170,754)

Short-term timing difference leading to an increase (decrease) in taxation
(5,722)
(7,462)

Changes to tax rate leading to an increase (decrease) in the tax charge
(4,165)
23,240

Group relief
(1,926)
-

Total tax charge for the year
510,501
313,924

The adjustments to tax charge in respect of prior periods relate entirely to Research & Development  claims.  These claims are recognised on receipt rather than on an accruals basis.


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.


11.


DIVIDENDS

2023
2022
£
£


Dividends paid
8,690,881
-

Page 17

 
CONNECT SCAFFOLDING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

12.


INTANGIBLE ASSETS




Goodwill

£



Cost


At 1 February 2022
2,500,000



At 31 January 2023

2,500,000



Amortisation


At 1 February 2022
2,500,000



At 31 January 2023

2,500,000



Net book value



At 31 January 2023
-



At 31 January 2022
-



Page 18

 
CONNECT SCAFFOLDING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

13.


TANGIBLE FIXED ASSETS





Short Term Leasehold Property
Plant and machinery
Motor vehicles
Office equipment
Total

£
£
£
£
£



Cost or valuation


At 1 February 2022
78,169
829,359
1,834,942
200,597
2,943,067


Additions
-
-
97,294
12,541
109,835


Disposals
-
(12,375)
(74,985)
-
(87,360)



At 31 January 2023

78,169
816,984
1,857,251
213,138
2,965,542



Depreciation


At 1 February 2022
68,393
450,389
1,028,808
186,255
1,733,845


Charge for the year on owned assets
2,848
67,834
206,587
13,665
290,934


Disposals
-
(12,375)
(59,663)
-
(72,038)



At 31 January 2023

71,241
505,848
1,175,732
199,920
1,952,741



Net book value



At 31 January 2023
6,928
311,136
681,519
13,218
1,012,801



At 31 January 2022
9,776
378,970
806,134
14,342
1,209,222


14.


DEBTORS

2023
2022
£
£


Trade debtors
2,419,647
2,346,904

Amounts owed by group undertakings
-
2,829,081

Other debtors
42,590
60,882

Prepayments and accrued income
250,004
468,520

2,712,241
5,705,387



15.


CASH AND CASH EQUIVALENTS

2023
2022
£
£

Cash at bank and in hand
9,940,836
7,218,567


Page 19

 
CONNECT SCAFFOLDING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

16.


CREDITORS: Amounts falling due within one year

2023
2022
£
£

Trade creditors
189,861
138,787

Amounts owed to group undertakings
6,118,361
3,987

Corporation tax
214,801
-

Other taxation and social security
117,813
324,880

Other creditors
-
5,430

Accruals and deferred income
217,691
219,735

6,858,527
692,819



17.


DEFERRED TAXATION




2023
2022


£

£






At beginning of year
160,571
73,592


Charged to profit or loss
(17,355)
86,979



At end of year
143,216
160,571

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
143,216
162,929

Other timing differences
-
(2,358)

143,216
160,571


18.


SHARE CAPITAL

2023
2022
£
£
Allotted, called up and fully paid



6 (2022 - 6) Ordinary shares of £1 each
6
6


Page 20

 
CONNECT SCAFFOLDING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

19.


CAPITAL COMMITMENTS


At 31 January 2023 the Company had capital commitments as follows:

2023
2022
£
£


Commitments for future capital expenditure not provided in the financial statements
267,276
-


20.


PENSION COMMITMENTS

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £135,200 (2022 - £108,540). Contributions totalling £NIL (2022 - £9,430) were payable to the fund at the Statement of Financial Position date and are included in creditors.


21.


COMMITMENTS UNDER OPERATING LEASES

At 31 January 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
60,000
68,000

Later than 1 year and not later than 5 years
240,000
240,000

Later than 5 years
50,000
110,000

350,000
418,000


22.


RELATED PARTY TRANSACTIONS

During the year the Company made payments in respect of hire of equipment totalling £NIL (2022 -£265,126) to a partnership of which Mr O J Cave is a Partner. The amount due from them at the year end was £300,481 (2022 - £27,493). 
During the year, the Company received computer consultancy services totalling £23,790 (2022 - £NIL), from a Company under the control of Mr O J Cave. The amount owed to them at the year end was £NIL (2022 - £NIL).
During the year the Company made payments in respect of rent and the hire of scaffolding equipment totalling £373,750 to former group Companies, now under the control of Mr O J Cave. Following a write off of bad debt of £547,555, the amount due from them at the year end was £NIL.
The Company has taken advantage of the exemptions under FRS 102 (Section 33.1A) not to disclose transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly-owned by such a member.

Page 21

 
CONNECT SCAFFOLDING LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2023

23.


CONTROLLING PARTY

The immediate and ultimate parent Company is Connect Access Group Limited.


Page 22