Company registration number 10269005 (England and Wales)
JOHN N DUNN HOLDINGS LIMITED
ANNUAL REPORT AND GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
JOHN N DUNN HOLDINGS LIMITED
COMPANY INFORMATION
Directors
J H Bilclough
S P Bilclough
B Willcox
Secretary
B Willcox
Company number
10269005
Registered office
Phoenix House
Kingfisher Way
Silverlink Business Park
Wallsend
Tyne & Wear
NE28 9NX
Auditor
Sumer Auditco Limited
The Beehive, Beehive Ring Road
London Gatwick Airport
Gatwick
United Kingdom
RH6 0PA
Bankers
Santander UK
Bridle Road
Bootle
Liverpool
L30 4GB
JOHN N DUNN HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 34
JOHN N DUNN HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Review of the business

The principal activity of the company is to provide support for its subsidiary undertakings which are involved in contracting services to the construction industry.

 

The group is involved in the provision of plumbing, heating, electrical, security systems and renewable energy contracting, and other building services to the construction industry, principally in the North East of England, Yorkshire and Scotland's central belt.

 

The company has returned to profitability this year, following two years which were significantly impacted by the COVID-19 pandemic. Turnover in the year increased to pre-pandemic levels, £33.2m, a big improvement on the prior year, where turnover was only £27.2m. Excluding consolidated goodwill amortisation, the business has made a profit of £146k in the year.

The business has continued to invest in their renewables department, in recognition of the growing demand in this sector. The business has MCS accreditation and, amongst other technologies, is skilled up to install photovoltaic (PV) panels, electric vehicle (EV) charging points and air source heat pumps. The business has delivered a number of significant renewable contracts in the current year with increasing numbers of further contracts scheduled going forward.

 

Trading for the year ending March-24 has remained buoyant and the business is forecasting a similar profit to the current year. The business has won a large number of new contracts during the year, including new contracts for renewables, and has already secured a significant proportion of the workload required for the year ending March-25.

Principal risks and uncertainties

The management of the business and the execution of the company's strategy are subject to a number of risks. The board reviews these risks and puts in place policies to mitigate them.

 

The key business and financial risks are:

 

Liquidity risk

The directors regularly monitor the financial information to ensure that any risks in this area are considered on a timely basis.

 

Credit risk

The company monitors credit risk and considers that its current policy of strict credit checks meets its objectives of managing its exposure.

 

Interest rate risk

The company monitors interest rate risk and considers that its current policy meets its objectives of managing its exposure.

 

Employees

The company recognises its performance depends largely on its key employees. Employees are remunerated with competitive packages and conditions as well as specific employee incentive schemes.

 

JOHN N DUNN HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Key performance indicators

The directors consider turnover, gross profit and EBITDA (earnings before interest, tax, depreciation and amortisation, before any exceptional items) to be the key measures of the group's performance:

 

 

 

 

The group profit before tax for the period was £54,896 (2022 - Loss before tax = £269,896) and the group net liability position at period end was £1,932,084 (2022 - £1,936,663).

 

The directors consider the group's key performance indicators to be satisfactory in light of the prevailing economic and industry conditions.

Going concern

The directors have assessed the parent company's and group's ability to continue as a going concern for the foreseeable future and the appropriateness of the preparation of the accounts on the going concern basis. In making such an assessment the directors have considered the parent company's and group's exposure to relevant commercial and economic forces effective at the date of approval of these accounts, including but not limited to: the forward order book; financial forecasts in excess of 12 months from accounts sign off, the company's performance since the reporting date, and the availability of facilities and resources to meet its working capital requirements.

 

The directors recognise that the economic climate remains challenging and the construction industry is highly susceptible to liquidity and credit default risk and its potential impact on construction sites and sourcing supplies. The directors have implemented active measures to increase the efficiency of the business and increase the profitability to mitigate this risk. Trading has also returned to pre-pandemic levels, leading to increased profitability post year end.

 

In light of this the directors have a reasonable expectation that the parent company and group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

 

On behalf of the board

S P Bilclough
Director
23 November 2023
JOHN N DUNN HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

J H Bilclough
S P Bilclough
B Willcox
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors affecting the performance of the company. This is achieved through formal and informal meetings. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.

Auditor

Sumer Auditco Limited 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 directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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.

JOHN N DUNN HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.true

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.

On behalf of the board
S P Bilclough
Director
23 November 2023
JOHN N DUNN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JOHN N DUNN HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of John N Dunn Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 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 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:

JOHN N DUNN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHN N DUNN HOLDINGS LIMITED
- 6 -
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.

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.

JOHN N DUNN HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JOHN N DUNN HOLDINGS LIMITED
- 7 -
Capability of the audit in detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

 

The following laws and regulations were identified as being of significance to the entity:

 

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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.

Paul Gainford (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited
Statutory Auditor
The Beehive, Beehive Ring Road
London Gatwick Airport
Gatwick
United Kingdom
RH6 0PA
23 November 2023
JOHN N DUNN HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
33,161,039
27,163,229
Cost of sales
(30,342,371)
(24,734,389)
Gross profit
2,818,668
2,428,840
Administrative expenses
(2,457,092)
(2,500,566)
Other operating income
-
147,160
Operating profit
4
361,576
75,434
Interest receivable and similar income
37,134
-
0
Interest payable and similar expenses
8
(343,814)
(345,330)
Loss before taxation and exceptional costs
54,896
(269,896)
Profit/(loss) before taxation
54,896
(269,896)
Tax on profit/(loss)
9
(50,317)
34,205
Profit/(loss) for the financial year
4,579
(235,691)
Profit/(loss) for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

JOHN N DUNN HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
Profit/(loss) for the year
4,579
(235,691)
Other comprehensive income
-
-
Total comprehensive income for the year
4,579
(235,691)
Total comprehensive income for the year is all attributable to the owners of the parent company.
JOHN N DUNN HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
354,526
445,526
Other intangible assets
10
804
6,013
Total intangible assets
355,330
451,539
Tangible assets
11
113,141
44,574
468,471
496,113
Current assets
Stocks
14
1,266,093
1,209,652
Debtors
15
7,743,869
7,602,980
Cash at bank and in hand
23,879
66,830
9,033,841
8,879,462
Creditors: amounts falling due within one year
16
(9,882,512)
(9,598,089)
Net current liabilities
(848,671)
(718,627)
Total assets less current liabilities
(380,200)
(222,514)
Creditors: amounts falling due after more than one year
17
(684,607)
(830,912)
Provisions for liabilities
20
(867,277)
(883,237)
Net liabilities
(1,932,084)
(1,936,663)
Capital and reserves
Called up share capital
23
452,660
452,660
Share premium account
457,340
457,340
Profit and loss reserves
(2,842,084)
(2,846,663)
Total equity
(1,932,084)
(1,936,663)
The financial statements were approved by the board of directors and authorised for issue on 23 November 2023 and are signed on its behalf by:
S P Bilclough
Director
JOHN N DUNN HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
910,001
910,001
Current assets
-
-
Creditors: amounts falling due within one year
16
(1)
(1)
Net current liabilities
(1)
(1)
Total assets less current liabilities
910,000
910,000
Capital and reserves
Called up share capital
23
452,660
452,660
Share premium account
457,340
457,340
Total equity
910,000
910,000

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2022 - £0 profit).

The financial statements were approved by the board of directors and authorised for issue on 23 November 2023 and are signed on its behalf by:
S P Bilclough
Director
Company Registration No. 10269005
JOHN N DUNN HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2021
452,660
457,340
(2,610,972)
(1,700,972)
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
(235,691)
(235,691)
Balance at 31 March 2022
452,660
457,340
(2,846,663)
(1,936,663)
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
4,579
4,579
Balance at 31 March 2023
452,660
457,340
(2,842,084)
(1,932,084)
JOHN N DUNN HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Share premium account
Total
£
£
£
Balance at 1 April 2021
452,660
457,340
910,000
Year ended 31 March 2022:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 March 2022
452,660
457,340
910,000
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
0
Balance at 31 March 2023
452,660
457,340
910,000
JOHN N DUNN HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
448,916
484,638
Interest paid
(343,814)
(345,330)
Net cash inflow from operating activities
105,102
139,308
Investing activities
Purchase of tangible fixed assets
(18,426)
(4,983)
Proceeds from disposal of tangible fixed assets
21,353
-
Interest received
37,134
-
0
Net cash generated from/(used in) investing activities
40,061
(4,983)
Financing activities
Repayment of borrowings
(175,750)
(79,558)
Repayment of bank loans
(8,655)
(2,763)
Payment of finance leases obligations
(3,709)
-
Net cash used in financing activities
(188,114)
(82,321)
Net (decrease)/increase in cash and cash equivalents
(42,951)
52,004
Cash and cash equivalents at beginning of year
66,830
14,826
Cash and cash equivalents at end of year
23,879
66,830
JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

John N Dunn Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Phoenix House, Kingfisher Way, Silverlink Business Park, Wallsend, Tyne & Wear, NE28 9NX.

 

The group consists of John N Dunn Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company's profit for the year was £nil.

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

The consolidated financial statements incorporate those of John N Dunn Holdings Limited and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

 

All financial statements are made up to 31 March 2023. 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.

JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Going concern

The directors have assessed the parent company's and group's ability to continue as a going concern for the foreseeable future and the appropriateness of the preparation of the accounts on the going concern basis. In making such an assessment the directors have considered the parent company's and group's exposure to relevant commercial and economic forces effective at the date of approval of these accounts, including but not limited to: the forward order book; financial forecasts in excess of 12 months from accounts sign off, the company's performance since the reporting date, and the availability of facilities and resources to meet its working capital requirements.

 

The directors recognise that the economic climate remains challenging and the construction industry is highly susceptible to liquidity and credit default risk and its potential impact on construction sites and sourcing supplies. The directors have implemented active measures to increase the efficiency of the business and increase the profitability to mitigate this risk. Trading has also returned to pre-pandemic levels, leading to increased profitability post year end.

 

In light of this the directors have a reasonable expectation that the parent company and group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.

1.4
Turnover

Turnover represents amounts receivable for goods and services provided in the normal course of business, net of trade discounts, VAT and other sales related taxes.

 

Turnover is calculated as the value of the contract works completed at the balance sheet date, as noted in note 1.11. Profit is recognised on long-term contracts if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as contract activity progresses.

1.5
Intangible fixed assets - goodwill

Goodwill on consolidation represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

1.6
Intangible fixed assets other than goodwill

Computer software and licences are included at cost and depreciated in equal instalments over their estimated useful economic life. Provision is made for any impairment.

Amortisation 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:

Computer software and licences
20% - 33% on cost
JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
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:

Leasehold improvements
10% - 12.5% on cost
Plant and machinery, vehicles and computer equipment
10% - 33% on cost
Fixtures and fittings
10% - 33% on cost

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
Fixed asset investments

Interests in subsidiaries and associates are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

1.10
Stocks

Stocks is valued at the lower of cost and net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Net realisable value is based on estimated selling price, less further costs expected to be incurred to completion and disposal. Provision is made for obsolete, slow-moving or defective items where appropriate.

1.11
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.

 

Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -

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 sales rendered for work performed to date compared to the estimated total contract value.

 

Amounts recoverable on long-term contracts, which are included in debtors, are stated at the net sales value of the work done less amounts received as progress payments on account or invoiced and included in trade debtors. Excess progress payments are included in creditors as payments on account. Cumulative costs incurred net of amounts transferred to cost of sales, less provision for anticipated future losses on contracts, are included as long-term contract balances and included as work in progress. Contract cost accruals are included within accruals and deferred income in creditors falling due within one year. Foreseeable losses on contracts are included within provisions for contract losses.

1.12
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.

Basic financial assets

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

Impairment of financial assets

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

 

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.

JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.13
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.

1.14
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.

JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
1.15
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, if considered material to the financial statements.

 

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.

1.16
Retirement benefits

The group operates a defined contribution scheme for the benefit of its employees. Contributions payable are charged to the profit and loss account in the period they are payable. Differences between contributions payable in the year and contributions annually paid are shown as either other debtors or other creditors in the balance sheet.

1.17
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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
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.

 

The current year income statement includes amounts of £Nil (2022 - £147,160) received by group companies in relation to COVID-19 support funding from the government Coronavirus Job Retention Scheme.

JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
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

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

Assessing indicators of impairment

In assessing whether there have been any indicators of impairment in assets, the directors have considered both external and internal sources of information such as market conditions and experience of recoverability. There have been no indicators of impairments identified during the current financial year.

JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Determining residual values and useful economic lives of intangible and tangible fixed assets

The group depreciates intangible other than goodwill and tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about future use and therefore requires estimates and assumptions to be applied by management.

 

Judgement is applied by management when determining the residual values for intangible and tangible assets. When determining the residual value management aim to assess the amount that the company would currently receive as consideration for the disposal of the asset expected at the end of its useful life.

 

The carrying amount of intangible assets other than goodwill at the reporting date was £804 (2022 - £6,013). The carrying amount of tangible assets at the reporting date was £113,141 (2022 - £44,574).

Recoverability of amounts recoverable on long term contracts

The group establishes a provision for debtors that are estimated not to be recoverable. When assessing the recoverability the directors consider factors such as the ageing of debtors, past experience of recoverability, and the credit profile of individual customers. The carrying value of this provision is £505,363 (2022 - £631,937).

Revenue recognition in respect of construction contracts

The group uses the percentage of completion method to recognise project revenue for construction contracts. The method requires the directors to estimate the future profits and losses expected for each contract. The method also requires the directors to estimate the level of completion at which profits and losses can reliably forecast and hence recognised. Variations to estimates could result in the over or under recognition of revenue.

Provision for future losses on long-term contracts

The group makes a provision for foreseeable future losses on contracts. The directors are required to estimate the likely losses on each contract still in progress at year end. This estimate is based on past experience of the performance of similar projects. The carrying value of this provision is £538,377 (2022 - £641,637).

Warranty provision

The group provides warranties on certain contracts for a period following completion of the contract. The directors are required to estimate the likely cost of these warranties. This is based on historical experience of costs incurred based on the turnover recognised in the accounts. The carrying value of this provision is £328,900 (2022 - £241,600).

Classification of non-current retentions

The group estimates the level of retentions held at reporting date which are not expected to be recovered within 12 months. The estimate is based on assumptions of general contract terms and expected completion dates of construction contracts. The estimated value of non-current retentions included within amounts recoverable on long term contracts is £609,458 (2022 - £603,932).

JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
3
Turnover and other revenue

An analysis of the group's turnover, which arose wholly within the United Kingdom, is as follows:

2023
2022
£
£
Turnover analysed by class of business
Contract turnover
32,851,433
26,458,028
Other sales
309,606
705,201
33,161,039
27,163,229
2023
2022
£
£
Other significant revenue
Grants received
-
147,160
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
5,124
9,250
Depreciation of tangible fixed assets held under finance leases
3,056
-
Profit on disposal of tangible fixed assets
(21,353)
-
Amortisation of intangible assets
96,209
96,209
Operating lease charges
185,862
188,160
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
27,500
27,500
JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
3
3
3
3
Operational staff
181
181
-
-
Administration
69
69
-
-
Total
253
253
3
3

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
10,372,126
9,493,582
-
0
-
0
Pension costs
679,464
636,931
-
0
-
0
11,051,590
10,130,513
-
0
-
0
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
221,443
284,085
Company pension contributions to defined contribution schemes
22,240
26,117
243,683
310,202
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
111,059
100,810
Company pension contributions to defined contribution schemes
9,037
7,867
JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 25 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
9,656
6,654
Refinancing costs
6,688
100,668
Interest on finance leases and hire purchase contracts
537
-
Other interest on financing
326,933
238,008
Total finance costs
343,814
345,330
9
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
50,317
(34,205)

The actual charge/(credit) for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit/(loss) before taxation
54,896
(269,896)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
10,430
(51,280)
Tax effect of expenses that are not deductible in determining taxable profit
30,755
26,545
Tax effect of income not taxable in determining taxable profit
(8,246)
(284)
Effect of change in corporation tax rate
12,077
(29,151)
Deferred tax losses not provided
5,301
19,965
Taxation charge/(credit)
50,317
(34,205)
JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
10
Intangible fixed assets
Group
Goodwill
Computer software and licences
Total
£
£
£
Cost
At 1 April 2022 and 31 March 2023
1,153,208
313,310
1,466,518
Amortisation and impairment
At 1 April 2022
707,682
307,297
1,014,979
Amortisation charged for the year
91,000
5,209
96,209
At 31 March 2023
798,682
312,506
1,111,188
Carrying amount
At 31 March 2023
354,526
804
355,330
At 31 March 2022
445,526
6,013
451,539
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.
11
Tangible fixed assets
Group
Leasehold improvements
Plant and machinery, vehicles and computer equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 April 2022
39,345
636,607
284,853
960,805
Additions
-
0
76,747
-
0
76,747
Disposals
-
0
(111,877)
-
0
(111,877)
At 31 March 2023
39,345
601,477
284,853
925,675
Depreciation and impairment
At 1 April 2022
37,622
627,995
250,614
916,231
Depreciation charged in the year
174
7,159
847
8,180
Eliminated in respect of disposals
-
0
(111,877)
-
0
(111,877)
At 31 March 2023
37,796
523,277
251,461
812,534
Carrying amount
At 31 March 2023
1,549
78,200
33,392
113,141
At 31 March 2022
1,723
8,612
34,239
44,574
The company had no tangible fixed assets at 31 March 2023 or 31 March 2022.
JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Tangible fixed assets
(Continued)
- 27 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Motor vehicles
67,650
-
0
-
0
-
0
Depreciation charge for the year in respect of leased assets
3,056
-
-
-
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
910,001
910,001
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
John N Dunn (1951) Ltd
1
Dormant company
Ordinary
-
100.00
John N Dunn (Leeds) Ltd
1
Dormant company
Ordinary
-
100.00
John N Dunn (Newcastle) Ltd
1
Dormant company
Ordinary
-
100.00
John N Dunn (Scotland) Ltd
2
Dormant company
Ordinary
-
100.00
John N Dunn Group Ltd
1
Contracting services in construction industry
Ordinary
100.00
-
John N Dunn Ltd
1
Contracting services in construction industry
Ordinary
100.00
-
Sol2o Ltd
1
Dormant company
Ordinary
-
100.00
Trattles & Rushforth Ltd
1
Dormant company
Ordinary
-
100.00
Registered office addresses:
1 - Phoenix House, Kingfisher Way, Silverlink Business Park, Wallsend, Tyne & Wear, England, NE28 9NX
2 - Saltire House, 6B Dunnet Way, East Mains Industrial Estate, Broxburn, West Lothian, Scotland, EH52 5NN
JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
810,930
651,534
-
-
- Net cost less foreseeable losses
463,965
561,319
-
-
- Payments on account
(8,802)
(3,201)
-
0
-
0
1,266,093
1,209,652
-
-
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
614,405
682,285
-
0
-
0
Amounts recoverable on long term contracts
5,016,022
4,734,875
-
0
-
0
Other debtors
683,112
656,454
-
0
-
0
Prepayments and accrued income
739,054
785,299
-
0
-
0
7,052,593
6,858,913
-
-
Deferred tax asset (note 21)
71,146
121,463
-
0
-
0
7,123,739
6,980,376
-
-
Amounts falling due after more than one year:
Amounts recoverable on long term contracts
609,458
603,932
-
0
-
0
Other debtors
10,672
18,672
-
0
-
0
620,130
622,604
-
-
Total debtors
7,743,869
7,602,980
-
-
JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
10,956
11,767
-
0
-
0
Obligations under finance leases
19
17,323
-
0
-
0
-
0
Payments received on account
361,416
235,883
-
0
-
0
Trade creditors
6,203,253
6,055,048
-
0
-
0
Amounts due to group undertakings
-
0
-
0
1
1
Other taxation and social security
858,345
795,307
-
-
Other creditors
2,036,112
2,022,150
-
0
-
0
Accruals and deferred income
395,107
477,934
-
0
-
0
9,882,512
9,598,089
1
1

 

Included within other creditors are amounts secured to the value of £1,182,958 (2022 - £1,231,486) by a first legal mortgage, dated 14 January 2022, on the book debts of John N Dunn Group Limited.

17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
18
27,626
35,470
-
0
-
0
Obligations under finance leases
19
37,289
-
0
-
0
-
0
Other borrowings
18
619,692
795,442
-
0
-
0
684,607
830,912
-
-

 

18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
38,582
47,237
-
0
-
0
Loans from related parties
619,692
795,442
-
0
-
0
658,274
842,679
-
-
Payable within one year
10,956
11,767
-
0
-
0
Payable after one year
647,318
830,912
-
0
-
0
JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
18
Loans and overdrafts
(Continued)
- 30 -

The bank loan is repayable over 6 years and attracts an annual, marginal interest rate of 2.5%.

 

Loans from related parties have no set repayment terms and no interest is charged thereon. The notice required for repayment is in excess of 12 months and hence these loans are held as a non-current financial liability.

19
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
17,323
-
0
-
0
-
0
In two to five years
37,289
-
0
-
0
-
0
54,612
-
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery, and motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

20
Provisions for liabilities
Group
Company
2023
2022
2023
2022
£
£
£
£
Provision for future losses on long-term contracts
538,377
641,637
-
-
Warranty provision
328,900
241,600
-
-
867,277
883,237
-
-
Movements on provisions:
Provision for future losses on long-term contracts
Warranty provision
Total
Group
£
£
£
At 1 April 2022
641,637
241,600
883,237
Additional provisions in the year
-
87,300
87,300
Reversal of provision
(103,260)
-
(103,260)
At 31 March 2023
538,377
328,900
867,277
JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
20
Provisions for liabilities
(Continued)
- 31 -

Provision for future losses on long-term contracts

The company accounts for long-term contracts in accordance with FRS 102, Section 23: Revenue. The standard requires companies to recognise foreseeable future losses on contracts. The directors have estimated the likely losses on contracts still in progress at the year end. The nature of long-term contracts and the construction industry mean that the amount and timing of losses is uncertain. However, the directors expect the losses to be realised within a period of no more than 5 years.

Warranty provision

The company provides warranties on certain contracts for a period following completion of the contract. The directors have estimated the likely cost of these warranties. The nature of the warranties and the different contracts mean that the amount and timing of payments is uncertain. However, the directors expect the costs to be realised within a period of not more than 2 years.

21
Deferred taxation

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

Assets
Assets
2023
2022
Group
£
£
Accelerated capital allowances
48,048
66,267
Short term timing differences
23,098
55,196
71,146
121,463
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Asset at 1 April 2022
(121,463)
-
Charge to profit or loss
50,317
-
Asset at 31 March 2023
(71,146)
-
22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
679,464
636,931

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.

JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
22
Retirement benefit schemes
(Continued)
- 32 -

The group participates in the Plumbing & Mechanical Services (UK) Industry Pension Scheme multi-employer defined benefit scheme. The scheme is non-segregated, as such the assets and liabilities cannot be separately identified for the group. Consequently, the group accounts for its contributions as if they were paid to a defined contribution scheme.

 

Total contributions payable to the funds at year end included within creditors are £102,950 (2022 - £255,157).

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 0.1p each
452,659,765
452,659,765
452,660
452,660
24
Operating lease commitments
Lessee

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
2023
2022
2023
2022
£
£
£
£
Within one year
189,525
189,525
-
-
Between two and five years
480,100
480,100
-
-
In over five years
270,056
390,081
-
-
939,681
1,059,706
-
-
25
Related party transactions
Transactions with related parties

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

Sales
Purchases
2023
2022
2023
2022
£
£
£
£
Group
Companies under common control
151,800
138,178
309,925
274,331

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
£
£
Group
Companies under common control
619,692
795,442
JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
25
Related party transactions
(Continued)
- 33 -

Amounts owed to related parties are noted in note 18.

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
£
£
Group
Companies under common control
283,967
300,497

The company has taken advantage of the exemption available in FRS 102, Section33: Related party transactions, whereby it has not disclosed transactions with any wholly owned subsidiary undertakings.

26
Controlling party

In the opinion of the directors there is no overall controlling party.

27
Cash generated from group operations
2023
2022
£
£
Profit/(loss) for the year after tax
4,579
(235,691)
Adjustments for:
Taxation charged/(credited)
50,317
(34,205)
Finance costs
343,814
345,330
Investment income
(37,134)
-
0
Gain on disposal of tangible fixed assets
(21,353)
-
Amortisation and impairment of intangible assets
96,209
96,209
Depreciation and impairment of tangible fixed assets
8,180
9,250
Decrease in provisions
(15,960)
(91,295)
Movements in working capital:
Increase in stocks
(56,441)
(82,532)
Increase in debtors
(191,206)
(270,958)
Increase in creditors
267,911
748,530
Cash generated from operations
448,916
484,638
JOHN N DUNN HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 34 -
28
Analysis of changes in net debt - group
1 April 2022
Cash flows
New finance leases
31 March 2023
£
£
£
£
Cash at bank and in hand
66,830
(42,951)
-
23,879
Borrowings excluding overdrafts
(842,679)
184,405
-
(658,274)
Obligations under finance leases
-
3,709
(58,321)
(54,612)
(775,849)
145,163
(58,321)
(689,007)
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