Company registration number 13502546 (England and Wales)
JADE-ADEN SERVICES HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
JADE-ADEN SERVICES HOLDINGS LIMITED
COMPANY INFORMATION
Directors
G P Gibson
A Gibson
(Appointed 14 April 2022)
J Gibson
(Appointed 14 April 2022)
S Kirtley
(Appointed 14 April 2022)
Company number
13502546
Registered office
Tower House
Parkstone Road
Poole
BH15 2JH
Auditor
Hill Osborne Ltd
Tower House
Parkstone Road
Poole
Dorset
BH15 2JH
Business address
10 Holton Point
Holton Heath Trading Park
Poole
Dorset
BH16 6FL
JADE-ADEN SERVICES HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 38
JADE-ADEN SERVICES HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 1 -

The directors present the strategic report for the period ended 30 September 2022.

Review of the business

The key financial highlights are as follows:

 

The results of the group for the period, as set out on pages 9 to 38, show a profit on ordinary activities before tax of £2,848,407.

 

Turnover for the period is £29,848,041 (2021: £16,440,875), an increase of 81.55%. Gross profit margin is 14.31% (2021: 16.10%).

 

The directors are satisfied with the performance of the group during the period and are expecting enhanced growth in future years, particularly in industrial development where several projects are ongoing. The group remains in a strong position and the prospects for the current year are encouraging.

Principal risks and uncertainties

The principal activity of the company's subsidiary, Jade-Aden Services Limited, is that of design and build contractors, property developers and industrial roofing and cladding contractors. Over the last few years the primary focus has been on design and build contracts. However, the directors realise there is a potential risk if there is a general and economic decline.

 

To alleviate this risk the group continues to engage in a wide range of contracts, including industrial roofing and industrial development.

 

All sectors within which the group operates are continually reviewed to ensure that sufficient returns are made.

Given the current workload, both with in-house and contracted developments, the directors are confident of the future order book and the profits that will be achieved.

Development and performance

The shareholders' funds of the group total £6,907,314 (2021: £8,467,670). On 21 December 2021 the directors carried out a reorganisation, by way of transferring all of the group's investment properties and freehold properties to a fellow group company at par value. The applicable financing was also assigned to that company. The group reorganisation is the main contributing factor to the movement in shareholders funds.

 

In addition to this a management buy-out took place on 14 April 2022. The total consideration was £7,500,000, of which £3,500,000 was deferred and payable by five annual payments.

Key performance indicators

The group's overall performance for the period within the three key areas of revenue, has continued to show growth.

 

The development success of small energy-efficient industrial units, attracted high demand from end users and investors.

 

Design and build projects contributed to the large increase to overall turnover, with the steel frame, cladding and maintenance sector also adding growth for the period.

 

The group’s main focus whilst delivering either refurbishment, design and build, or development projects, was to achieve for the end users the best energy-efficient working environment and sustainable facility possible. Many of the projects completed have achieved net zero carbon status, which will be the benchmark energy rating for any future development projects the group undertake.

 

Although inflation has been challenging within the construction sector, the group has taken a collaborative approach with clients, to minimise the effect.

 

The development sector is anticipated to become the largest proportion of the group's turnover from late 2024 onwards, which will contribute the main future growth.

JADE-ADEN SERVICES HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 2 -
Other information and explanations

Health and Safety

The group pursues a rigorous monitoring of its health and safety obligations.

 

Environmental Issues

The group's policy on environmental issues is to assess their impact and incorporate them in the projects it is undertaking.

On behalf of the board

G P Gibson
Director
13 November 2023
JADE-ADEN SERVICES HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 3 -

The directors present their annual report and financial statements for the period ended 30 September 2022.

Principal activities

Following the group reorganisation on 21 December 2021, the company commenced trading as a holding company from this date.

 

The principal activity of the group for the period was that of property developers, industrial roofing and cladding contractors.

Results and dividends

The results for the period are set out on page 9.

 

The results for the period and the financial position at the period end were considered satisfactory by the directors who expect continued growth in the foreseeable future.

A dividend in specie was paid amounting to £3,837,616.

Directors

The directors who held office during the period and up to the date of signature of the financial statements were as follows:

G P Gibson
A Gibson
(Appointed 14 April 2022)
J Gibson
(Appointed 14 April 2022)
D C Gibson
(Resigned 14 April 2022)
S Kirtley
(Appointed 14 April 2022)
Financial instruments

The group's principal financial instruments comprise loan agreements and trade creditors. The main purpose of these instruments is to raise funds for the group's working capital requirement and to finance company operations. Due to the nature of financial instruments used by the group there is no exposure to price risk. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Post reporting date events

On 4 October 2022 the group made a payment of £3,500,000 in settlement of loan notes entered into by its ultimate parent company, Jade-Aden Ltd, in relation to a management buy out that took place on 14 April 2022.

Auditor

Hill Osborne Ltd were appointed as auditor to the group 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 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 auditor of the company 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 auditor of the company is aware of that information.

JADE-ADEN SERVICES HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 4 -
On behalf of the board
G P Gibson
Director
13 November 2023
JADE-ADEN SERVICES HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 5 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

JADE-ADEN SERVICES HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JADE-ADEN SERVICES HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of Jade-Aden Services Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 30 September 2022 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

JADE-ADEN SERVICES HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JADE-ADEN SERVICES HOLDINGS LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

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 parent 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 parent 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.

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 irregularies, including fraud

We assess the risk of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures in response to those risks, including obtaining appropriate audit evidence to provide a basis for our opinion. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non compliance with laws and regulations, we considered the following:

 

Audit response to risks identified

Our procedures to respond to the risks identified included the following:

 

 

In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments and assessed whether judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of significant transactions outside the normal course of business.

JADE-ADEN SERVICES HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JADE-ADEN SERVICES HOLDINGS LIMITED
- 8 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 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.

Lucia Ball BFP FCA (Senior Statutory Auditor)
For and on behalf of Hill Osborne Ltd
14 November 2023
Chartered Accountants
Statutory Auditor
Tower House
Parkstone Road
Poole
Dorset
BH15 2JH
JADE-ADEN SERVICES HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 9 -
Period
Year
ended
ended
30 September
30 September
2022
2021
Notes
£
£
Turnover
3
29,848,041
16,440,875
Cost of sales
(25,576,188)
(13,793,305)
Gross profit
4,271,853
2,647,570
Administrative expenses
(1,470,642)
(1,022,455)
Other operating income
86,389
413,641
Operating profit
4
2,887,600
2,038,756
Interest receivable and similar income
8
1,560
231
Interest payable and similar expenses
9
(40,753)
(90,702)
Fair value gains and losses on investment properties
12
-
0
540,000
Profit before taxation
2,848,407
2,488,285
Tax on profit
10
(570,947)
(381,929)
Profit for the financial period
28
2,277,460
2,106,356
Profit for the financial period is all attributable to the owner of the parent company.
JADE-ADEN SERVICES HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 10 -
Period
Year
ended
ended
30 September
30 September
2022
2021
£
£
Profit for the period
2,277,460
2,106,356
Other comprehensive income
Revaluation of tangible fixed assets
-
0
(8,500)
Tax relating to other comprehensive income
-
0
5,090
Other comprehensive income for the period
-
0
(3,410)
Total comprehensive income for the period
2,277,460
2,102,946
Total comprehensive income for the period is all attributable to the owners of the parent company.
JADE-ADEN SERVICES HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2022
30 September 2022
- 11 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
185,999
2,190,629
Investment property
12
-
0
3,630,000
Investments
13
-
0
200
185,999
5,820,829
Current assets
Stocks
16
880,265
624,177
Debtors
18
7,423,621
4,529,938
Cash at bank and in hand
6,018,805
3,376,361
14,322,691
8,530,476
Creditors: amounts falling due within one year
19
(6,759,194)
(3,900,705)
Net current assets
7,563,497
4,629,771
Total assets less current liabilities
7,749,496
10,450,600
Creditors: amounts falling due after more than one year
20
(426,667)
(1,955,112)
Provisions for liabilities
Provisions
23
370,722
-
0
Deferred tax liability
24
44,793
27,818
(415,515)
(27,818)
Net assets
6,907,314
8,467,670
Capital and reserves
Called up share capital
26
100
300
Revaluation reserve
27
-
0
34,880
Profit and loss reserves
28
6,907,214
8,432,490
Total equity
6,907,314
8,467,670
The financial statements were approved by the board of directors and authorised for issue on 13 November 2023 and are signed on its behalf by:
13 November 2023
G P Gibson
S Kirtley
Director
Director
Company registration number 13502546 (England and Wales)
JADE-ADEN SERVICES HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2022
30 September 2022
- 12 -
2022
2021
Notes
£
£
£
£
Fixed assets
Investments
13
100
300
Current assets
Debtors
18
3,850,100
-
0
Cash at bank and in hand
291,604
-
0
4,141,704
-
0
Creditors: amounts falling due within one year
19
(4,141,767)
-
Net current liabilities
(63)
-
Net assets
37
300
Capital and reserves
Called up share capital
26
100
300
Profit and loss reserves
28
(63)
-
Total equity
37
300

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the period was £63 (2021 - £0 profit).

The financial statements were approved by the board of directors and authorised for issue on 13 November 2023 and are signed on its behalf by:
13 November 2023
G P Gibson
S Kirtley
Director
Director
Company registration number 13502546 (England and Wales)
JADE-ADEN SERVICES HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2020
-
0
72,302
6,292,122
6,364,424
Year ended 30 September 2021:
Profit for the year
-
-
2,106,356
2,106,356
Other comprehensive income:
Revaluation of tangible fixed assets
-
(8,500)
-
(8,500)
Tax relating to other comprehensive income
-
5,090
-
0
5,090
Total comprehensive income
-
(3,410)
2,106,356
2,102,946
Issue of share capital
26
500
-
-
500
Reduction of shares
26
(200)
-
-
(200)
Transfers
-
(34,012)
34,012
-
Balance at 30 September 2021
300
34,880
8,432,490
8,467,670
Period ended 30 September 2022:
Profit and total comprehensive income
-
-
2,277,460
2,277,460
Dividends
-
-
(3,837,616)
(3,837,616)
Reduction of shares
26
(200)
-
-
(200)
Transfers
-
(34,880)
34,880
-
Balance at 30 September 2022
100
-
0
6,907,214
6,907,314
JADE-ADEN SERVICES HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2020
-
0
-
0
-
Year ended 30 September 2021:
Profit and total comprehensive income for the year
-
-
-
0
Issue of share capital
26
500
-
500
Reduction of shares
26
(200)
-
(200)
Balance at 30 September 2021
300
-
0
300
Period ended 30 September 2022:
Profit and total comprehensive income
-
(63)
(63)
Reduction of shares
26
(200)
-
(200)
Balance at 30 September 2022
100
(63)
37
JADE-ADEN SERVICES HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 15 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
35
2,176,865
2,478,697
Interest paid
(40,753)
(90,702)
Income taxes paid
(584,065)
(503,414)
Net cash inflow from operating activities
1,552,047
1,884,581
Investing activities
Purchase of tangible fixed assets
(75,979)
(7,366)
Proceeds from disposal of tangible fixed assets
14,000
13,250
Proceeds from disposal of investment property
-
66,500
Repayment of loans
1,525,526
176,711
Interest received
1,560
231
Net cash generated from investing activities
1,465,107
249,326
Financing activities
Repayment of bank loans
(185,068)
(193,686)
Payment of finance leases obligations
(4,080)
(60,466)
Net cash used in financing activities
(189,148)
(254,152)
Net increase in cash and cash equivalents
2,828,006
1,879,755
Cash and cash equivalents at beginning of period
3,190,799
1,311,044
Cash and cash equivalents at end of period
6,018,805
3,190,799
Relating to:
Cash at bank and in hand
6,018,805
3,376,361
Bank overdrafts included in creditors payable within one year
-
(185,562)
JADE-ADEN SERVICES HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 16 -
2022
2021
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
36
291,604
-
0
Net increase in cash and cash equivalents
291,604
-
Cash and cash equivalents at beginning of period
-
0
-
0
Cash and cash equivalents at end of period
291,604
-
0
JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 17 -
1
Accounting policies
Company information

Jade-Aden Services Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Tower House, Parkstone Road, Poole, Dorset, BH15 2JH. The principal place of business is 10 Holton Point, Holton Heath Trading Park, Poole, Dorset, BH16 6FL.

 

The group consists of Jade-Aden Services Holdings Limited and all of its subsidiaries.

1.1
Reporting period

The financial statements are presented for the period 9 July 2021 to 30 September 2022. The financial statement reporting period has been lengthened so as to align the period end date with fellow group companies.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.3
Business combinations

On 1 September 2021 a group reconstruction took place whereby the company issued shares as consideration for the transfer of the entire share capital of Jade-Aden Services Limited.

 

The business combination arising out of the group reconstruction has been accounted for using the merger accounting method. The results and cash flows of all combining entities have been consolidated from the beginning of the financial period.

 

The combining entities are the subsidiary undertakings identified in note 14.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Jade-Aden Services Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 September 2022. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 18 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.6
Turnover

Turnover represents a combination of contract work invoiced during the year together with completed development sales. Invoices and applications for payment are made at regular stages throughout a contract. Turnover is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts.

1.7
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 land and buildings
Freehold buildings - 2% straight line
Plant and equipment
20% straight line
Motor vehicles
25% 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 recognised in the profit and loss account.

1.8
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

 

JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 19 -
1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 20 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
Stocks

Stocks and work in progress are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

1.13
Cash and cash equivalents

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.

1.14
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 21 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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 group 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 group 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.

JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 22 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group 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 group.

1.16
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
1
Accounting policies
(Continued)
- 23 -
1.17
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.18
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.

1.19
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.20
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.21
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.

JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 24 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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

During the year, management reassessed the critical estimates and critical judgements and resolved that as a result of the disposal of all investment property in the year, the valuation of investment property was no longer considered critical.

 

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Construction contracts

A significant portion of the group's activities are undertaken through long-term construction contracts, the group is required to make estimates in accounting for revenue and profit margin. These estimates may depend upon the outcome of future events and may need to be revised as circumstances change.

3
Turnover and other revenue
2022
2021
£
£
Turnover analysed by class of business
Contract revenue arising on construction contracts
29,757,708
16,440,875
Sale of goods
90,333
-
29,848,041
16,440,875
2022
2021
£
£
Other revenue
Interest income
1,560
231
Grants received
-
16,785
4
Operating profit
2022
2021
£
£
Operating profit for the period is stated after charging/(crediting):
Government grants
-
(16,785)
Depreciation of owned tangible fixed assets
59,654
67,527
Depreciation of tangible fixed assets held under finance leases
-
26,369
Profit on disposal of tangible fixed assets
(8,045)
(2,005)
Profit on disposal of investment property
-
(66,500)
Operating lease charges
148,576
-
JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 25 -
5
Auditor's remuneration
2022
2021
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
4,000
-
Audit of the financial statements of the company's subsidiaries
21,850
21,450
25,850
21,450
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the period was:

Group
Company
2022
2021
2022
2021
Number
Number
Number
Number
39
41
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2022
2021
2022
2021
£
£
£
£
Wages and salaries
1,478,681
1,323,007
-
0
-
0
Social security costs
192,396
143,856
-
-
Pension costs
72,907
68,051
-
0
-
0
1,743,984
1,534,914
-
0
-
0
7
Directors' remuneration
2022
2021
£
£
Remuneration for qualifying services
174,746
-
Company pension contributions to defined contribution schemes
1,981
-
176,727
-

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2021 - 0).

JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 26 -
8
Interest receivable and similar income
2022
2021
£
£
Interest income
Interest on bank deposits
479
231
Other interest income
1,081
-
Total income
1,560
231
2022
2021
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
479
231
9
Interest payable and similar expenses
2022
2021
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
39,410
87,079
Other finance costs:
Interest on finance leases and hire purchase contracts
298
3,623
Other interest
1,045
-
Total finance costs
40,753
90,702
10
Taxation
2022
2021
£
£
Current tax
UK corporation tax on profits for the current period
553,972
384,065
Deferred tax
Origination and reversal of timing differences
16,975
(2,136)
Total tax charge
570,947
381,929
JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
10
Taxation
(Continued)
- 27 -

The actual charge for the period can be reconciled to the expected charge for the period based on the profit or loss and the standard rate of tax as follows:

2022
2021
£
£
Profit before taxation
2,848,407
2,488,285
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
541,197
472,774
Tax effect of expenses that are not deductible in determining taxable profit
16,190
12,871
Group relief
12
-
0
Permanent capital allowances in excess of depreciation
(3,427)
14,397
Research and development tax credit
-
0
(13,377)
Effect of revaluations of investments
-
0
(102,600)
Deferred tax adjustments in respect of prior years
16,975
(2,136)
Taxation charge
570,947
381,929

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:

2022
2021
£
£
Deferred tax arising on:
Revaluation of property
-
(5,090)
JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 28 -
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 October 2021
2,015,000
207,292
407,219
2,629,511
Additions
-
0
43,479
32,500
75,979
Disposals
(2,015,000)
-
0
(15,405)
(2,030,405)
At 30 September 2022
-
0
250,771
424,314
675,085
Depreciation and impairment
At 1 October 2021
-
0
176,805
262,077
438,882
Depreciation charged in the period
-
0
16,868
42,786
59,654
Eliminated in respect of disposals
-
0
(544)
(8,906)
(9,450)
At 30 September 2022
-
0
193,129
295,957
489,086
Carrying amount
At 30 September 2022
-
0
57,642
128,357
185,999
At 30 September 2021
2,015,000
30,487
145,142
2,190,629
The company had no tangible fixed assets at 30 September 2022 or 30 September 2021.
12
Investment property
Group
Company
2022
2022
£
£
Fair value
At 1 October 2021
3,630,000
-
Disposals
(3,630,000)
-
At 30 September 2022
-
-

The carrying value of land and buildings comprises:

Group
Company
2022
2021
2022
2021
£
£
£
£
Freehold
-
3,630,000
-
-
JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 29 -
13
Fixed asset investments
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
200
100
300
Movements in fixed asset investments
Group
Shares in subsidiaries
£
Cost or valuation
At 1 October 2021
200
Disposals
(200)
At 30 September 2022
-
Carrying amount
At 30 September 2022
-
At 30 September 2021
200
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2021
300
Disposals
(200)
At 30 September 2022
100
Carrying amount
At 30 September 2022
100
At 30 September 2021
300
14
Subsidiaries

Details of the company's subsidiaries at 30 September 2022 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Indirect
Jade-Aden Services Limited
England and Wales
Property developers
Ordinary
100.00
-
Holton Point Management Limited
England and Wales
Non-trading
Ordinary
0
100.00
JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
14
Subsidiaries
(Continued)
- 30 -

The registered office address of Jade-Aden Services Limited is Tower House, Parkstone Road, Poole, Dorset, BH15 2JH.

 

The registered office address of Holton Point Management Limited is 10 Holton Point, Holton Heath Trading Park, Poole, Dorset, BH16 6FL.

The investment in subsidiaries are all stated at cost.

15
Financial instruments
Group
Company
2022
2021
2022
2021
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
6,156,546
3,748,493
3,850,100
-
Carrying amount of financial liabilities
Measured at amortised cost
5,791,969
5,187,943
4,141,767
-
16
Stocks
Group
Company
2022
2021
2022
2021
£
£
£
£
Work in progress
867,176
473,021
-
-
Finished goods and goods for resale
13,089
151,156
-
0
-
0
880,265
624,177
-
-
17
Construction contracts
Group
Company
2022
2021
2022
2021
£
£
£
£
Contracts in progress at the reporting date
Gross amounts owed by contract customers included in debtors
921,017
471,776
-
0
-
0
Retentions held by customers
938,695
606,235
-
-
JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 31 -
18
Debtors
Group
Company
2022
2021
2022
2021
Amounts falling due within one year:
£
£
£
£
Trade debtors
1,917,053
2,161,689
-
0
-
0
Gross amounts owed by contract customers
921,017
471,776
-
0
-
0
Corporation tax recoverable
282,519
274,912
-
0
-
0
Amounts owed by group undertakings
3,912,500
6,419
3,850,000
-
Other debtors
326,993
1,580,385
100
-
0
Prepayments and accrued income
63,539
34,757
-
0
-
0
7,423,621
4,529,938
3,850,100
-
19
Creditors: amounts falling due within one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
21
160,000
809,569
-
0
-
0
Obligations under finance leases
22
-
0
4,080
-
0
-
0
Trade creditors
2,981,742
2,098,658
-
0
-
0
Amounts owed to group undertakings
-
0
78,938
4,141,667
-
0
Corporation tax payable
361,579
384,065
-
0
-
0
Other taxation and social security
1,032,313
283,809
-
-
Other creditors
329,114
91,952
100
-
0
Accruals and deferred income
1,894,446
149,634
-
0
-
0
6,759,194
3,900,705
4,141,767
-
0
20
Creditors: amounts falling due after more than one year
Group
Company
2022
2021
2022
2021
Notes
£
£
£
£
Bank loans and overdrafts
21
426,667
1,955,112
-
0
-
0
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
743,659
-
-
JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 32 -
21
Loans and overdrafts
Group
Company
2022
2021
2022
2021
£
£
£
£
Bank loans
586,667
2,579,119
-
0
-
0
Bank overdrafts
-
0
185,562
-
0
-
0
586,667
2,764,681
-
-
Payable within one year
160,000
809,569
-
0
-
0
Payable after one year
426,667
1,955,112
-
0
-
0

The group's total bank borrowing is fully secured by a debenture incorporating a fixed and floating charge.

The bank borrowing is being repaid in monthly instalments, the final repayment date is 13 May 2026. The interest rate on the loan is Base rate + 2.11%.

22
Finance lease obligations
Group
Company
2022
2021
2022
2021
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
4,080
-
0
-
0
23
Provisions for liabilities
Group
Company
2022
2021
2022
2021
£
£
£
£
Contract provisions
370,722
-
-
-
Movements on provisions:
Contract provisions
Group
£
Additional provisions in the year
370,722
JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
23
Provisions for liabilities
(Continued)
- 33 -

Contract provisions include estimated defect provisions on contracts, primarily design and build contracts. The defects liability period is anticipated to cover a period covering 12 months from completion of the construction work, but where there are known identified issues then the provision may be required to cover rectification work over a more extended period. The largest component of the provision relates to one particular contract for which there is an ongoing monitoring process. The provisions have been made to rectify any potential additional future works identified in the schedule of defects, should they be deemed necessary.

24
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2022
2021
Group
£
£
Accelerated capital allowances
44,793
27,818
The company has no deferred tax assets or liabilities.
Group
Company
2022
2022
Movements in the period:
£
£
Liability at 1 October 2021
27,818
-
Charge to profit or loss
16,975
-
Liability at 30 September 2022
44,793
-

The Finance Act 2021 was substantially enacted in May 2021 and has increased the corporation tax rate to from 19% to 25% with effect from 1 April 2023. The deferred taxation balances have been measured using the rates expected to apply in the reporting periods when the timing differences reverse.

25
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
72,906
68,051

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 34 -
26
Share capital
Group and company
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
Ordinary B Shares of £1 each
-
100
-
100
Ordinary C shares of £1 each
-
100
-
100
100
300
100
300

During the comparative period the company issued 300 Ordinary shares of £1 each.

 

100 Ordinary shares were then re-designated as 100 Ordinary B shares of £1 each and a further 100 Ordinary shares were re-designated as 100 Ordinary C shares of £1 each. The 100 Ordinary B shares and 100 Ordinary C were then cancelled.

27
Revaluation reserve
Group
Company
2022
2022
£
£
At the beginning of the period
34,880
-
0
Transfer to retained earnings
(34,880)
-
At the end of the period
-
0
-
0
28
Profit and loss reserves
Group
Company
2022
2021
2022
2021
£
£
£
£
At the beginning of the period
8,432,490
6,292,122
-
-
Profit/(loss) for the period
2,277,460
2,106,356
(63)
-
0
Dividends
(3,837,616)
-
-
-
Transfer from revaluation reserve
34,880
34,012
-
-
At the end of the period
6,907,214
8,432,490
(63)
-
JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
28
Profit and loss reserves
(Continued)
- 35 -
Group
Company
2022
2021
2022
2021
£
£
£
£
Non-distributable profits included above
At the beginning of the period
540,000
401,659
-
-
Non distributable profits in the period
-
540,000
-
-
Transfer of non-distributable profits relating to prior periods
(540,000)
(401,659)
-
-
At the end of the period
-
540,000
-
-
Distributable profits
6,907,214
7,892,490
(63)
-
29
Financial commitments, guarantees and contingent liabilities

The group has given an unlimited debenture in favour of Lloyds Banking Group PLC.

 

The group has given a guarantee in favour of Stage Light Sound Ltd.

 

In connection with the reorganisation that took place on 21 December 2021, a guarantee limited to £800,000 was provided by a connected company in respect of the company's bank borrowing.

 

30
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2022
2021
2022
2021
£
£
£
£
Within one year
163,350
-
-
-
Between two and five years
653,400
-
-
-
In over five years
687,431
-
-
-
1,504,181
-
-
-
31
Events after the reporting date

Non-adjusting events after the end of the reporting period

 

On 4 October 2022 the group made a payment of £3,500,000 in settlement of loan notes entered into by its ultimate parent company, Jade-Aden Ltd, in relation to a management buy-out that took place on 14 April 2022.

JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 36 -
32
Related party transactions
Transactions with related parties

During the period the group entered into the following transactions with related parties:

 

The group made sales to entities under the control of a director totalling £997,506. The amount owing from the entities at 30 September 2022 is £287,598 (2021: £10,960).

 

The group made purchases from entities under the control of a director totalling £517,159. The amount owing to the entities at 30 September 2022 is £164,701 (2021: £5,285).

 

The group made sales to entities over which a director has significant influence totalling £46,307 (2021: £108,096). The amount owing by these entities at 30 September 2022 is £1,348 (2021: £11,212).

 

The group made purchases from entities over which one of the directors has significant influence totalling £718,657 (2021: £669,221). The amount owing to these entities at 30 September 2022 is £193,171 (2021: £77,890).

 

The group made purchases from an entity over which a close family member of the directors had control totalling £45,407 (2021: £21,653).

 

Included in work in progress at the balance sheet date are development costs totalling £311,743 (2021: £94,170) in respect of a contract to build a property for one of the directors. The work is being undertaken under normal commercial terms.

 

During the year the group paid wages amounting to £11,608 (2021: £21,062) to close family members of the directors.

 

On 21 December 2021 the directors carried out a company reorganisation, by way of transferring all the group's investment properties and freehold properties to a connected company. The applicable finance was also assigned to that company. The carrying value of the investment properties and freehold properties was £5,645,000. The carrying value of the associated bank borrowing was £1,807,384.This was reflected by way of a dividend in specie.

 

On 14 April 2022 a further reconstruction took place by way of a management buy-out. The total consideration is £7,500,000, of which £3,500,000 is deferred and payable by five annual payments.

33
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Loan
-
1,569,171
86,923
1,081
(1,613,530)
43,645
1,569,171
86,923
1,081
(1,613,530)
43,645
34
Controlling party

The immediate and ultimate parent undertaking is Jade-Aden Ltd, a company registered in England and Wales. The company was incorporated on 8 April 2022.

 

The directors do not consider there to be an ultimate controlling party.

JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 37 -
35
Cash generated from group operations
2022
2021
£
£
Profit for the period after tax
2,277,460
2,106,356
Adjustments for:
Taxation charged
570,947
381,929
Finance costs
40,753
90,702
Investment income
(1,560)
(231)
Gain on disposal of tangible fixed assets
(8,045)
(2,005)
Gain on disposal of investment property
-
0
(66,500)
Fair value gain on investment properties
-
(540,000)
Depreciation and impairment of tangible fixed assets
59,654
96,292
Increase in provisions
370,722
-
Movements in working capital:
(Increase)/decrease in stocks
(256,088)
92,608
(Increase)/decrease in debtors
(561,502)
101,492
(Decrease)/increase in creditors
(315,476)
218,054
Cash generated from operations
2,176,865
2,478,697
36
Cash generated from/(absorbed by) operations - company
2022
2021
£
£
Loss for the period after tax
(63)
-
Movements in working capital:
Increase in creditors
291,667
-
Cash generated from/(absorbed by) operations
291,604
-
37
Analysis of changes in net funds - group
1 October 2021
Cash flows
30 September 2022
£
£
£
Cash at bank and in hand
3,376,361
2,642,444
6,018,805
Bank overdrafts
(185,562)
185,562
-
0
3,190,799
2,828,006
6,018,805
Borrowings excluding overdrafts
(2,579,119)
1,992,452
(586,667)
Obligations under finance leases
(4,080)
4,080
-
607,600
4,824,538
5,432,138
JADE-ADEN SERVICES HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2022
- 38 -
38
Analysis of changes in net funds - company
1 October 2021
Cash flows
30 September 2022
£
£
£
Cash at bank and in hand
-
291,604
291,604
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