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Registration number: 05086611

Key Electrical Contractors & Storefitters Limited

Annual Report and Financial Statements

for the Year Ended 30 April 2023

 

Key Electrical Contractors & Storefitters Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Independent Auditor's Report

6 to 10

Profit and Loss Account (incorporating the Statement of Income and Retained Earnings)

11

Balance Sheet

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 25

 

Key Electrical Contractors & Storefitters Limited

Company Information

Directors

Mr S Samardzija

Mr S J Saddler

Mr G Ingham


 

Registered office

Unit 5C
Roundwood Industrial Estate
Ossett
Wakefield
West Yorkshire
WF5 9SQ


 

Auditors

Lambert Roper & Horsfield Limited
Chartered Accountants & Statutory Auditors
First Floor
Rosemount House
Huddersfield Road
Elland
West Yorkshire
HX5 0EE

 

Key Electrical Contractors & Storefitters Limited

Strategic Report

for the Year Ended 30 April 2023

The directors present their strategic report for the year ended 30 April 2023.

Principal activity

The principal activity of the company is that of building, store fitting, mechanical and electrical contractors.

Fair review of the business

The company has seem an increase in sales this past year due to increased spend by clients, mainly investing in property enhancement and repairs. In addition to this recent introduction to new client lead to a greater work load than was anticipated.

The results for the year are set out in the Profit and Loss Account and the KPI's are shown below. An increase in sales resulted in a 14.6% increase in Turnover and a increase in gross profit by 19.5%.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2023

2022

Turnover

£

52,987,802

46,222,121

Gross profit

£

9,273,998

7,762,523

Continued investment has been made in further improving office space, building infrastructure, IT systems and internal management.

The focus on the future is firstly to maintain and improve our services to our existing clients and to continue to work on introductions and relationships with new potential clients Increasing turnover and subsequent profit alike.

Despite ongoing pressure on credit terms given to customers, the balance sheet remains strong, with working capital sufficient to cater for planned growth.

Principal risks and uncertainties

The principal risks to the company are directly related to our retail environment we work within. Recent inflationary rising costs on materials, fuel and labour may continue to be challenging over this coming year.

The contractor, client relationships remain strong and we continue to mitigate possible customer risk by seeking to develop relationships with new customers and new work streams.

 

Key Electrical Contractors & Storefitters Limited

Strategic Report

for the Year Ended 30 April 2023 (continued)

Approved and authorised by the Board on 13 November 2023 and signed on its behalf by:
 

.........................................
Mr S J Saddler
Director

 

Key Electrical Contractors & Storefitters Limited

Directors' Report

for the Year Ended 30 April 2023

The directors present their report and the financial statements for the year ended 30 April 2023.

Directors of the company

The directors who held office during the year were as follows:

Mr S Samardzija

Mr S J Saddler

Mr G Ingham

Financial instruments and risk management

Price risk, credit risk, liquidity risk and cash flow risk

The company has a level of exposure to price, credit, liquidity and cash flow risk that is normal for the industry. Liquidity has reduced as credit terms offered have increased to market norms. The company has absorbed this without the need for finance and the directors do not foresee an increase in risk in the future.

Future developments

There have been no significant events since the year end.

Research and development

The company does not undertake research and development activity.

 

Key Electrical Contractors & Storefitters Limited

Directors' Report

for the Year Ended 30 April 2023 (continued)

Statement of Directors' Responsibilities

The directors are responsible for preparing the Strategic Report, 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 13 November 2023 and signed on its behalf by:
 

.........................................
Mr S J Saddler
Director

 

Key Electrical Contractors & Storefitters Limited

Independent Auditor's Report to the Members of Key Electrical Contractors & Storefitters Limited

Opinion

We have audited the financial statements of Key Electrical Contractors & Storefitters Limited (the 'company') for the year ended 30 April 2023, which comprise the Profit and Loss Account (incorporating the Statement of Income and Retained Earnings), Balance Sheet, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 April 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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.

 

Key Electrical Contractors & Storefitters Limited

Independent Auditor's Report to the Members of Key Electrical Contractors & Storefitters Limited (continued)

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 or a material misstatement of the other information. 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 the audit:

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities [set out on page 5], 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.

 

Key Electrical Contractors & Storefitters Limited

Independent Auditor's Report to the Members of Key Electrical Contractors & Storefitters Limited (continued)

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 cease operations, or have no realistic alternative but to do so.

Auditor's Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. 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:

We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to:

i) Laws and regulations generally recognized to have a direct effect on the determination of material amounts and disclosures in the financial statements:
• The financial operating framework FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland
• The Companies Act 2006
• Tax legislations – various
• Employment law
• Pension Regulation Authority

ii) Laws and regulations which provides the legal framework within which the company conducts its business and which is central to the company’s ability to conduct its business:
• ISO:9001, ISO: 14001 and OHSAS 18001 certification
• Construction Design and Management Regulations 2015
• NICEIC Regulations

We assessed the risks of material misstatement in respect of fraud through:
i) enquiries with management
ii) review of the company’s Anti-Fraud, Bribery and Corruption Policy
ii) the audit team initial discussions on fraud to identify particular areas that were susceptible to misstatement

 

Key Electrical Contractors & Storefitters Limited

Independent Auditor's Report to the Members of Key Electrical Contractors & Storefitters Limited (continued)

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above.

The audit team was assessed to have the appropriate competence and capability to identify or recognise non-compliance with laws and regulation.

Our approach to understanding the company’s policies and procedures for compliance with those laws and regulations and to gaining an understanding of how instances of non-compliance with laws and regulations or knowledge of actual, suspected, or alleged fraud is documented was via enquiry with management and obtaining a copy of the company’s Anti-Fraud, Bribery and Corruption Policy.

We corroborated our enquiries through:
i) review of correspondence with HMRC and Companies House (and their respective websites)
ii) review of relevant regulatory websites
iii) review of signed agreements / contracts

Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud. The audit tests implemented involved checks with compliance on various company and employment laws and regulations.

Where there was considered to be a lack of segregation of duty, systems of controls in place were verified through observation and enquiry and substantive testing.

We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries and accounting estimates into our audit approach. Any unusual transactions were investigated further and relevant documentary evidence obtained where deemed necessary.

We considered the risk of fraud through the selection and application of accounting policies by the company, particularly those related to subjective measurements and complex transactions, which may be indicative of fraudulent financial reporting resulting from management’s effort to manage earnings. In response, in our audit approach we reviewed the application of accounting policies, in particular those associated with accounting estimates, for reasonableness and correct application within the financial statements.

Audit test sample selection process involves random selection to incorporates an element of unpredictability in the selection of audit procedures.

Based on the auditor's approach and procedures in place explained above, we can provide reasonable assurance that any irregularities, including fraud, would likely be detected. 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 irregularities.

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

 

Key Electrical Contractors & Storefitters Limited

Independent Auditor's Report to the Members of Key Electrical Contractors & Storefitters Limited (continued)

Based on the results of our risk assessment we designed our audit procedures to identify non-compliance with such laws and regulations identified above.

The audit team was assessed to have the appropriate competence and capability to identify or recognise non-compliance with laws and regulation.

Our approach to understanding the company’s policies and procedures for compliance with those laws and regulations and to gaining an understanding of how instances of non-compliance with laws and regulations or knowledge of actual, suspected, or alleged fraud is documented was via enquiry with management and obtaining a copy of the company’s Anti-Fraud, Bribery and Corruption Policy.

We corroborated our enquiries through:
i) review of correspondence with HMRC and Companies House (and their respective websites)
ii) review of relevant regulatory websites
iii) review of signed agreements / contracts

Based on the results of our risk assessment we designed our audit procedures to identify and to address material misstatements in relation to fraud. The audit tests implemented involved checks with compliance on various company and employment laws and regulations.

Where there was considered to be a lack of segregation of duty, systems of controls in place were verified through observation and enquiry and substantive testing.

We considered the risk of fraud through management override and, in response, we incorporated testing of manual journal entries and accounting estimates into our audit approach. Any unusual transactions were investigated further and relevant documentary evidence obtained where deemed necessary.

We considered the risk of fraud through the selection and application of accounting policies by the company, particularly those related to subjective measurements and complex transactions, which may be indicative of fraudulent financial reporting resulting from management’s effort to manage earnings. In response, in our audit approach we reviewed the application of accounting policies, in particular those associated with accounting estimates, for reasonableness and correct application within the financial statements.

Audit test sample selection process involves random selection to incorporates an element of unpredictability in the selection of audit procedures.

Based on the auditor's approach and procedures in place explained above, we can provide reasonable assurance that any irregularities, including fraud, would likely be detected. 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 irregularities.

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

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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.

......................................
S Mitchell FCA (Senior Statutory Auditor)
For and on behalf of Lambert Roper & Horsfield Limited, Statutory Auditor

First Floor
Rosemount House
Huddersfield Road
Elland
West Yorkshire
HX5 0EE

13 November 2023

 

Key Electrical Contractors & Storefitters Limited

PROFIT AND LOSS ACCOUNT
(Incorporating the Statement of Income and Retained Earnings)

for the Year Ended 30 April 2023

Note

2023
£

2022
£

Turnover

3

52,987,802

46,222,121

Cost of sales

 

(43,713,804)

(38,459,598)

Gross profit

 

9,273,998

7,762,523

Administrative expenses

 

(5,863,118)

(5,324,050)

Other operating income

4

955

1,714

Operating profit

5

3,411,835

2,440,187

Other interest receivable and similar income

7

6,773

217

Interest payable and similar charges

8

(234)

(119)

 

6,539

98

Profit before tax

 

3,418,374

2,440,285

Taxation

12

(669,408)

(498,741)

Profit for the financial year

 

2,748,966

1,941,544

Retained earnings brought forward

 

6,439,074

7,129,109

Dividends paid

 

(2,631,579)

(2,631,579)

Retained earnings carried forward

 

6,556,461

6,439,074

 

Key Electrical Contractors & Storefitters Limited

Balance Sheet

as at 30 April 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

13

18,624

-

Tangible assets

14

883,193

964,405

 

901,817

964,405

Current assets

 

Stocks

15

502,903

619,205

Debtors

16

15,795,078

8,910,973

Cash at bank and in hand

 

3,549,073

4,577,263

 

19,847,054

14,107,441

Creditors: Amounts falling due within one year

17

(14,072,704)

(8,497,349)

Net current assets

 

5,774,350

5,610,092

Total assets less current liabilities

 

6,676,167

6,574,497

Provisions for liabilities

18

(119,606)

(135,323)

Net assets

 

6,556,561

6,439,174

Capital and reserves

 

Called up share capital

20

100

100

Profit and loss account

6,556,461

6,439,074

Total equity

 

6,556,561

6,439,174

Approved and authorised by the Board on 13 November 2023 and signed on its behalf by:
 

.........................................
Mr S J Saddler
Director

(Registration number: 05086611)

 

Key Electrical Contractors & Storefitters Limited

Statement of Cash Flows

for the Year Ended 30 April 2023

Note

2023
 £

2022
 £

Cash flows from operating activities

Profit for the year

 

2,748,966

1,941,544

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

182,338

188,194

Profit on disposal of tangible assets

(17,618)

(14,205)

Finance income

7

(6,773)

(217)

Finance costs

8

234

119

Income tax expense

12

669,408

498,741

 

3,576,555

2,614,176

Working capital adjustments

 

Decrease in stocks

15

116,302

952,758

(Increase)/decrease in trade debtors

16

(6,932,058)

8,606,491

Increase/(decrease) in trade creditors

17

5,185,420

(7,201,029)

Cash generated from operations

 

1,946,219

4,972,396

Income taxes paid

12

(247,236)

(989,774)

Net cash flow from operating activities

 

1,698,983

3,982,622

Cash flows from investing activities

 

Interest received

7

6,773

217

Acquisitions of tangible assets

(140,390)

(246,264)

Proceeds from sale of tangible assets

 

56,881

32,667

Acquisition of intangible assets

13

(18,624)

-

Net cash flows from investing activities

 

(95,360)

(213,380)

Cash flows from financing activities

 

Interest paid

8

(234)

(119)

Dividends paid

(2,631,579)

(2,631,579)

Net cash flows from financing activities

 

(2,631,813)

(2,631,698)

Net (decrease)/increase in cash and cash equivalents

 

(1,028,190)

1,137,544

Cash and cash equivalents at 1 May

4,577,263

3,439,719

Cash and cash equivalents at 30 April

3,549,073

4,577,263

 

Key Electrical Contractors & Storefitters Limited

Notes to the Financial Statements

for the Year Ended 30 April 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Unit 5C
Roundwood Industrial Estate
Ossett
Wakefield
West Yorkshire
WF5 9SQ

2

Accounting policies

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts.

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have been transferred to the buyer.

 

Key Electrical Contractors & Storefitters Limited

Notes to the Financial Statements

for the Year Ended 30 April 2023 (continued)

2

Accounting policies (continued)

Contract revenue recognition

In respect of long term building and maintenance contracts revenue is recognised when all the following conditions are satisfied:

- The amount of revenue can be reliably measured;
- It is probable that the economic benefits associated with the transaction will flow to the entity;
- The stage of completion of the transaction at the end of the reporting period can be measured reliably; and
- The costs incurred for the transaction and the costs to complete the transaction can be measured reliably.

Government grants

A grant that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs shall be recognised in income in the period in which it becomes receivable.

Tax

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

 

Key Electrical Contractors & Storefitters Limited

Notes to the Financial Statements

for the Year Ended 30 April 2023 (continued)

2

Accounting policies (continued)

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold property

2% per annum on a straight line basis

Leasehold property improvements

20% per annum on a straight line basis

Plant and machinery

25% per annum on a reducing balance basis

Office equipment

25% per annum on a reducing balance basis and 33% per annum on a straight line basis.

Motor vehicles

25% per annum on a reducing balance basis

Intangible assets

Intangible assets are stated in the statement of financial position at cost, less any subsequent accumulated amortisation and subsequent accumulated impairment losses.

The cost of intangible assets includes directly attributable incremental costs incurred in their acquisition and in preparing the asset for its intended use.

Stocks and work in progress

Stocks are stated at the lower of cost and estimated selling price. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Where building and maintenance contracts have not yet progressed to be on site, associated costs are recognised as work in progress. The cost of work in progress comprises direct materials, direct labour and other directly attributable costs. No element of profit is recognised within work in progress.

 

Key Electrical Contractors & Storefitters Limited

Notes to the Financial Statements

for the Year Ended 30 April 2023 (continued)

2

Accounting policies (continued)

Leases

Rentals in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease.

Hire purchase agreements are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are capitalised and depreciated over their useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Defined contribution pension obligation

The company operates a defined contribution pension scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions are charged to the profit and loss account.

3

Turnover

The analysis of the company's revenue for the year from continuing operations is as follows:

2023
£

2022
£

Sale of goods and services

52,987,802

46,222,121

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

CJRS & CSSP grants

-

1,714

Other interest received

955

-

955

1,714

 

Key Electrical Contractors & Storefitters Limited

Notes to the Financial Statements

for the Year Ended 30 April 2023 (continued)

5

Operating profit

Arrived at after charging/(crediting)

2023
 £

2022
 £

Depreciation expense

182,338

188,194

Profit on disposal of fixed assets

(17,618)

(14,205)

6

Government grants

During the year Key Electrical Contractors & Storefitters received CJRS & SSP grants from the government to assist with the payment of employee wages during the Covid-19 crisis.
The amount of grants recognised in the financial statements was £Nil (2022 - £1,714) as disclosed in note 4.

7

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

6,773

217

8

Interest payable and similar expenses

2023
 £

2022
 £

Other interest paid

234

119

9

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

6,409,685

5,902,808

Social security costs

735,751

668,706

Pension costs, defined contribution scheme

116,569

120,048

7,262,005

6,691,562

 

Key Electrical Contractors & Storefitters Limited

Notes to the Financial Statements

for the Year Ended 30 April 2023 (continued)

9

Staff costs (continued)

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
 No.

2022
 No.

Production

50

55

Administration and support

75

72

125

127

10

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

339,665

239,235

Contributions paid to money purchase schemes

1,321

1,321

340,986

240,556

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
 No.

2022
 No.

Accruing benefits under money purchase pension scheme

1

1

In respect of the highest paid director:

2023
£

2022
£

Remuneration

332,728

230,966

Company contributions to money purchase pension schemes

1,321

1,321

11

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

17,500

15,000


 

 

Key Electrical Contractors & Storefitters Limited

Notes to the Financial Statements

for the Year Ended 30 April 2023 (continued)

12

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

685,124

454,546

Deferred taxation

Arising from origination and reversal of timing differences

(15,716)

44,195

Tax expense in the income statement

669,408

498,741

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

3,418,374

2,440,285

Corporation tax at standard rate

854,594

463,654

Decrease from effect of different UK tax rates on some earnings

(193,549)

-

Effect of expense not deductible in determining taxable profit (tax loss)

9,935

6,163

UK deferred tax expense relating to changes in tax rates or laws

-

32,478

Tax increase from effect of depreciation of assets not qualifying for capital allowances

5,514

4,191

Tax decrease from effect of super deduction allowances claimed

(7,086)

(7,745)

Total tax charge

669,408

498,741

 

Key Electrical Contractors & Storefitters Limited

Notes to the Financial Statements

for the Year Ended 30 April 2023 (continued)

13

Intangible assets

Computer software
£

Total
£

Cost or valuation

Additions acquired separately

18,624

18,624

At 30 April 2023

18,624

18,624

Amortisation

At 30 April 2023

-

-

Carrying amount

At 30 April 2023

18,624

18,624

 

Key Electrical Contractors & Storefitters Limited

Notes to the Financial Statements

for the Year Ended 30 April 2023 (continued)

14

Tangible assets

Land and buildings
£

Fixtures, fittings and equipment
 £

Motor vehicles
 £

Plant and machinery
 £

Total
£

Cost or valuation

At 1 May 2022

606,497

297,866

741,915

76,807

1,723,085

Additions

22,336

20,370

97,424

260

140,390

Disposals

-

(48,013)

(115,064)

-

(163,077)

At 30 April 2023

628,833

270,223

724,275

77,067

1,700,398

Depreciation

At 1 May 2022

151,508

251,588

304,418

51,166

758,680

Charge for the year

27,783

29,014

119,065

6,476

182,338

Eliminated on disposal

-

(47,960)

(75,853)

-

(123,813)

At 30 April 2023

179,291

232,642

347,630

57,642

817,205

Carrying amount

At 30 April 2023

449,542

37,581

376,645

19,425

883,193

At 30 April 2022

454,989

46,278

437,497

25,641

964,405

Included within the net book value of land and buildings above is £376,195 (2022 - £384,745) in respect of freehold land and buildings and £73,347 (2022 - £70,244) in respect of short leasehold land and buildings.
 

15

Stocks

2023
£

2022
£

Work in progress

399,033

515,335

Finished goods and goods for resale

103,870

103,870

502,903

619,205

 

Key Electrical Contractors & Storefitters Limited

Notes to the Financial Statements

for the Year Ended 30 April 2023 (continued)

16

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

15,663,990

8,693,827

Other debtors

 

10

971

Prepayments

 

131,078

168,222

Income tax asset

12

-

47,953

   

15,795,078

8,910,973

17

Creditors

2023
 £

2022
 £

Due within one year

Trade creditors

5,111,844

3,762,547

Directors' loan accounts

3,911,422

2,627,350

Social security and other taxes

1,577,615

521,661

Outstanding defined contribution pension costs

-

23,722

Accruals and deferred income

3,081,888

1,562,069

Corporation tax liability

389,935

-

14,072,704

8,497,349

18

Deferred tax and other provisions

Deferred tax
£

Total
£

At 1 May 2022

135,323

135,323

Increase (decrease) in existing provisions

(15,717)

(15,717)

At 30 April 2023

119,606

119,606

 

Key Electrical Contractors & Storefitters Limited

Notes to the Financial Statements

for the Year Ended 30 April 2023 (continued)

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £116,569 (2022 - £120,047).

Contributions totalling £Nil (2022 - £23,722) were payable to the scheme at the end of the year and are included in creditors.

20

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

         

21

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

62,712

67,412

Later than one year and not later than five years

129,167

191,879

191,879

259,291

The amount of non-cancellable operating lease payments recognised as an expense during the year was £59,723 (2022 - £68,124).

 

Key Electrical Contractors & Storefitters Limited

Notes to the Financial Statements

for the Year Ended 30 April 2023 (continued)

22

Analysis of changes in net debt

At 1 May 2022
£

Cash flows
£

At 30 April 2023
£

Cash and cash equivalents

Cash

898

(313)

585

Cash equivalents

4,576,365

(1,027,877)

3,548,488

 

4,577,263

(1,028,190)

3,549,073

23

Related party transactions

Key management personnel

Key management compensation

2023
£

2022
£

Salaries and other short term employee benefits

1,016,236

1,510,846


 

Transactions with directors

Summary of transactions with other related parties

I & S Properties Limited ( a company in which G Ingham and S Samardzija are directors and shareholders).
 The leasehold property occupied by the company is owned by I & S Properties Limited and an open market rent of £50,000 (2022: £50,000) was charged along with the buildings insurance of £2,136 (2022: £1,795).