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REGISTERED NUMBER: 04376935 (England and Wales)













STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR

MILLANE CONTRACT SERVICES LIMITED

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 4

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Cash Flow Statement 12

Notes to the Financial Statements 13


MILLANE CONTRACT SERVICES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2023







DIRECTORS: Mr M Millane
Mr S Cooke
Mr D Millane
Mrs G Millane





SECRETARY: Mrs M Reynolds





REGISTERED OFFICE: 12 High Street
Stanford le Hope
Essex
SS17 0EY





REGISTERED NUMBER: 04376935 (England and Wales)





AUDITORS: Haslers
Chartered Accountants
Statutory Auditor
Old Station Road
Loughton
Essex
IG10 4PL

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

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

REVIEW OF BUSINESS
The key financial and other performance indicators during the year were as follows:

2023 2022
£ £

Turnover 24,050,802 23,418,159
Gross profit 4,479,689 4,092,931
Profit before tax 1,232,564 1,786,058

Current assets as % of current liabilities (current ratio) 192% 152%
Gross profit margin 18.6% 17.5%
Average number of employees 27 24


As set out above during the year to 31 March 2023 the company was able to increase both its level of turnover and the gross profit margin despite the challenging economic environment whereby material cost were rapidly increasing across the industry.

The director's are confident that the turnover and profitability will remain stable in the next financial year as they are expecting to begin work on cladding contracts secured in previous periods as funding has now been secured.

PRINCIPAL RISKS AND UNCERTAINTIES
The directors are confident the controls and measures in place will continue to safeguard the company in the challenging environment the country is currently experiencing.

Liquidity Risk

The directors consider the liquidity risk to be low due to the cash reserves the company has built up over the last few financial years. Further credit control is constantly reviewed to ensure that there is always significant capital to pay debts as they fall due. The success of these controls can be seen by a further increase in cash reserves.

Emerging Risk

The current cost of living crisis together with soaring interest rates present an emerging risk for the company. The high cost of borrowing and slow down in economic activity imply there is a risk that there will be a reduction in investment in large construction projects. Further, due to the effect the current economic climate has on the housing market. The slowdown in the market poses a risk to the company as they face increased competition from companies seeking to diversify into the construction industry.

ON BEHALF OF THE BOARD:





Mr S Cooke - Director


4 October 2023

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of building construction and maintenance.

DIVIDENDS
The total distribution of dividends for the year ended 31 March 2023 will be £ 715,000 .

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report.

Mr M Millane
Mr S Cooke
Mr D Millane
Mrs G Millane

DIRECTORS' RESPONSIBILITIES STATEMENT
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Haslers, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr S Cooke - Director


4 October 2023

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MILLANE CONTRACT SERVICES LIMITED

Opinion
We have audited the financial statements of Millane Contract Services Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 31 March 2023 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MILLANE CONTRACT SERVICES LIMITED


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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 Directors' Responsibilities Statement set out on page three, 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 necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MILLANE CONTRACT SERVICES LIMITED


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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the legal and regulatory frameworks that are applicable to the entity we have considered those that have a direct and indirect material impact on the financial statements and operations of the company. These include but are not limited to the Companies Act 2006, GDPR, and Employment and Health & Safety legislation.

We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making inquiries to the management. We corroborated our inquiries through our review of documentation generated and assessing the extent of compliance with the relevant laws and regulations.

We discussed among the audit engagement team regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.

As a result of performing the above, we identified the greatest potential for material misstatements due to fraud are in the following areas, and our specific procedures performed to address these are described below:

The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud. In addition, the key principal risks related to the existence of inappropriate journal entries to impact the profit for the year and management bias in accounting estimates.

Procedures performed to address these were as follows:

- Identifying and assessing the design effectiveness of controls management has in place to prevent and detect fraud, including known or suspected instances of non-compliance with laws and regulations, and fraud;

- Understanding how those charged with governance considered and addressed the potential for override of controls or other inappropriate influence over the financial reporting process;

- Challenging assumptions and judgements made by management in its significant accounting estimates; and

- Identifying and testing journal entries, in particular any unusual journal entries posted around the year-end and journal entries posted by infrequent system users.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
MILLANE CONTRACT SERVICES LIMITED


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 a Report of the Auditors 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.




Laura Ambrose (Senior Statutory Auditor)
for and on behalf of Haslers
Chartered Accountants
Statutory Auditor
Old Station Road
Loughton
Essex
IG10 4PL

2 November 2023

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

STATEMENT OF COMPREHENSIVE
INCOME
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   

TURNOVER 24,050,802 23,418,159

Cost of sales 19,571,113 19,297,582
GROSS PROFIT 4,479,689 4,120,577

Administrative expenses 3,235,152 2,342,864
1,244,537 1,777,713

Other operating income - 51,400
OPERATING PROFIT 4 1,244,537 1,829,113

Interest receivable and similar income 5 672 75
1,245,209 1,829,188

Interest payable and similar expenses 6 12,645 43,130
PROFIT BEFORE TAXATION 1,232,564 1,786,058

Tax on profit 7 301,833 277,637
PROFIT FOR THE FINANCIAL YEAR 930,731 1,508,421

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

930,731

1,508,421

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

BALANCE SHEET
31 MARCH 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 9 288,229 337,617

CURRENT ASSETS
Stocks 10 791,937 182,745
Debtors 11 4,063,621 4,784,410
Cash at bank 872,896 2,450,051
5,728,454 7,417,206
CREDITORS
Amounts falling due within one year 12 2,979,041 4,903,145
NET CURRENT ASSETS 2,749,413 2,514,061
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,037,642

2,851,678

CREDITORS
Amounts falling due after more than one
year

13

(72,419

)

(109,762

)

PROVISIONS FOR LIABILITIES 16 (69,521 ) (61,945 )
NET ASSETS 2,895,702 2,679,971

CAPITAL AND RESERVES
Called up share capital 17 850 850
Capital redemption reserve 18 150 150
Retained earnings 18 2,894,702 2,678,971
SHAREHOLDERS' FUNDS 2,895,702 2,679,971

The financial statements were approved by the Board of Directors and authorised for issue on 4 October 2023 and were signed on its behalf by:





Mr S Cooke - Director


MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023

Called up Capital
share Retained redemption Total
capital earnings reserve equity
£    £    £    £   

Balance at 1 April 2021 1,000 4,658,136 - 4,659,136

Changes in equity
Reduction in share capital (150 ) - 150 -
Dividends - (3,487,586 ) - (3,487,586 )
Total comprehensive income - 1,508,421 - 1,508,421
Balance at 31 March 2022 850 2,678,971 150 2,679,971

Changes in equity
Dividends - (715,000 ) - (715,000 )
Total comprehensive income - 930,731 - 930,731
Balance at 31 March 2023 850 2,894,702 150 2,895,702

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 351,301 2,175,653
Interest paid (12,645 ) (43,130 )
Tax paid (474,402 ) (255,618 )
Net cash from operating activities (135,746 ) 1,876,905

Cash flows from investing activities
Purchase of tangible fixed assets (107,315 ) (160,610 )
Sale of tangible fixed assets 51,912 1,221,564
Sale of fixed asset investments - 55,000
Sale of investment property - 917,500
Interest received 672 75
Net cash from investing activities (54,731 ) 2,033,529

Cash flows from financing activities
Loan repayments in year - (405,013 )
Capital repayments in year (53,019 ) 23,506
Amount withdrawn by directors - (960 )
Share issue - (150 )
Share buyback - 150
Loan to Holding Company (618,659 ) -
Equity dividends paid (715,000 ) (3,487,586 )
Net cash from financing activities (1,386,678 ) (3,870,053 )

(Decrease)/increase in cash and cash equivalents (1,577,155 ) 40,381
Cash and cash equivalents at beginning of
year

2

2,450,051

2,409,670

Cash and cash equivalents at end of year 2 872,896 2,450,051

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

NOTES TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 1,232,564 1,786,058
Depreciation charges 106,758 119,445
Profit on disposal of fixed assets (1,967 ) (740,007 )
Finance costs 12,645 43,130
Finance income (672 ) (75 )
1,349,328 1,208,551
Increase in stocks (609,192 ) (50,048 )
Decrease/(increase) in trade and other debtors 1,339,448 (452,591 )
(Decrease)/increase in trade and other creditors (1,728,283 ) 1,469,741
Cash generated from operations 351,301 2,175,653

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 872,896 2,450,051
Year ended 31 March 2022
31.3.22 1.4.21
£    £   
Cash and cash equivalents 2,450,051 2,409,670


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.4.22 Cash flow At 31.3.23
£    £    £   
Net cash
Cash at bank 2,450,051 (1,577,155 ) 872,896
2,450,051 (1,577,155 ) 872,896
Debt
Finance leases (191,033 ) 53,019 (138,014 )
(191,033 ) 53,019 (138,014 )
Total 2,259,018 (1,524,136 ) 734,882

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

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

1. STATUTORY INFORMATION

Millane Contract Services Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The principle place of business is Millane House, Bentalls, Basildon, Essex, SS14 3BS.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102- 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.

The financial statements are presented in Sterling (£).

Significant judgements and estimates
In applying the Company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.

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, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods.

The directors do not believe that there have been judgements (apart from those involving estimates) made in the process of applying the above accounting policies that have had a significant effect on amounts recognised in the financial statements.

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. In respect of construction contracts and the rendering of services, turnover represents revenue measured by reference to the stage of completion of the contract activity or of the service transaction at the end of the reporting period.

The company recognises revenue when the amount of revenue can be measured reliably and when it is probable that future economic benefits will flow to the entity.


Rendering of services

The company acts as a contractor providing building maintenance services. When the outcome of a transaction for the rendering of services can be estimated reliably in terms of revenue, costs and its stage of completion, the company recognises revenue on the sales of services in the reporting period in which the services are rendered by reference to the stage of completion of the specific transaction at the end of the reporting period. The stage of completion is determined on the basis of the actual completion of a proportion of the total services to be rendered.

Construction contracts

The company works as a contractor on construction projects. When the outcome of a construction contract can be estimated reliably in terms of its stage of completion, future costs to complete and collectability of billings, the company recognises revenue and expenses on the construction contract by reference to the stage of completion of the contract activity at the end of the reporting period. The stage of completion is determined on the basis of the proportion of the contract costs incurred to date over the estimated total costs.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Capital expenditure on property - 10% straight line basis
Office equipment - 33% straight line basis
Motor vehicles - 25% on reducing balance

FRS 102 permits the exclusion of depreciation on properties where the annual charge and accumulated depreciation charge are immaterial. Depreciation may be immaterial as a result of very long estimated useful economic lives or high residual values (or both). The director is of the opinion that this applies to the property owned by the company and accordingly has not depreciated the assets.

Investment property
Investment properties are properties held to earn rentals and for capital appreciation. Investment properties are initially measured at cost, including transaction costs. Subsequently investment properties whose fair value can be measured reliably without undue cost or effort on an on-going basis are measured at fair value. Gains and losses arising from changes in the fair value of investment properties are included in profit or loss in the period in which they arise. Deferred taxation is provided on these gains at the rate expected to apply when these properties are sold.

Stocks
Stocks have been valued at the lower of cost and estimated selling price less costs to sell. In respect of work in progress and finished goods, cost includes a relevant proportion of overheads according to the stage of completion.


MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred taxation
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Fixed asset investments
Investments in unlisted Company shares, whose markets value can be reliably determined are remeasured to market value at each balance sheet date. Gains and losses on remeasurement are recognised in the Statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. 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.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Operating leases
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to the profit and loss account as incurred.

Employee benefit trust
The company established an Employee Benefit Trust (EBT) during the year to 31 March 2011 for the benefit of certain employees. Until such time as the assets of the EBT vest unconditionally with the employees, the assets and liabilities of the EBT are included within the relevant assets and liabilities of the company.

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

2. ACCOUNTING POLICIES - continued

Financial instruments policy
The Company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade payables or receivables, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or financed at a rate of interest that is not a market rate or in case of an out-right short-term loan not at market rate, the financial asset or liability is measured, initially, at the present value of the future cash flow discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,223,405 1,263,861
Social security costs 140,094 144,938
Other pension costs 17,827 17,431
1,381,326 1,426,230

The average number of employees during the year was as follows:
2023 2022

Directors 4 4
Administration 23 20
27 24

2023 2022
£    £   
Directors' remuneration 331,210 498,485

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

3. EMPLOYEES AND DIRECTORS - continued

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Accrued pension at 31 March 2023 - 250

4. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023 2022
£    £   
Other operating leases 90,071 10,757
Depreciation - owned assets 46,940 56,343
Depreciation - assets on hire purchase contracts 59,818 63,102
Profit on disposal of fixed assets (1,967 ) (740,007 )
Auditors remunerations 10,500 9,000

5. INTEREST RECEIVABLE AND SIMILAR INCOME
2023 2022
£    £   
Interest receivable 672 75

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Interest payable 12,645 43,130

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 294,257 287,442

Deferred tax 7,576 (9,805 )
Tax on profit 301,833 277,637

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 1,232,564 1,786,058
Profit multiplied by the standard rate of corporation tax in the UK of 19%
(2022 - 19%)

234,187

339,351

Effects of:
Expenses not deductible for tax purposes 50,566 (40,654 )
Capital allowances in excess of depreciation - (11,192 )
Depreciation in excess of capital allowances 9,504 -
Adjustments to tax charge in respect of previous periods - (63 )
Deferred tax adjustment 7,576 (9,805 )
Total tax charge 301,833 277,637

8. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Final 715,000 3,487,586

9. TANGIBLE FIXED ASSETS
Capital
expenditure
on Office Motor
property equipment vehicles Totals
£    £    £    £   
COST
At 1 April 2022 153,935 106,224 636,727 896,886
Additions - 39,344 67,971 107,315
Disposals - (13,382 ) (146,676 ) (160,058 )
At 31 March 2023 153,935 132,186 558,022 844,143
DEPRECIATION
At 1 April 2022 152,656 69,328 337,285 559,269
Charge for year 1,273 26,051 79,434 106,758
Eliminated on disposal - (13,377 ) (96,736 ) (110,113 )
At 31 March 2023 153,929 82,002 319,983 555,914
NET BOOK VALUE
At 31 March 2023 6 50,184 238,039 288,229
At 31 March 2022 1,279 36,896 299,442 337,617

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

9. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Motor
vehicles
£   
COST
At 1 April 2022 403,990
Additions 67,971
Disposals (44,476 )
Transfer to ownership (78,793 )
At 31 March 2023 348,692
DEPRECIATION
At 1 April 2022 166,836
Charge for year 59,818
Eliminated on disposal (16,642 )
Transfer to ownership (47,781 )
At 31 March 2023 162,231
NET BOOK VALUE
At 31 March 2023 186,461
At 31 March 2022 237,154

10. STOCKS
2023 2022
£    £   
Materials and small tools 75,000 64,000
Work-in-progress 716,937 118,745
791,937 182,745

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 3,338,617 4,673,184
Amounts owed by group undertakings 618,659 -
Other debtors 106,345 111,226
4,063,621 4,784,410

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Hire purchase contracts (see note 14) 65,595 81,271
Trade creditors 1,815,034 2,606,103
Corporation tax 107,355 287,500
Social security and other taxes 192,251 960,920
Other creditors 798,806 967,351
2,979,041 4,903,145

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Hire purchase contracts (see note 14) 72,419 109,762

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2023 2022
£    £   
Net obligations repayable:
Within one year 65,595 81,271
Between one and five years 72,419 109,762
138,014 191,033

Non-cancellable operating leases
2023 2022
£    £   
Within one year 97,944 110,924
Between one and five years 248,927 346,021
346,871 456,945

15. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Hire purchase contracts 138,014 191,033

The hire purchase contracts are secured against the assets for which they were used to acquire.

16. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Deferred tax 69,521 61,945

Deferred
tax
£   
Balance at 1 April 2022 61,945
Charge to Statement of Comprehensive Income during year 7,576
Balance at 31 March 2023 69,521

The provision for deferred taxation is made up of accelerated capital allowances.

MILLANE CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 04376935)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2023

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number Class Nominal Value 2023 2022
£ £

850 Ordinary £1 850 425

850 850

18. RESERVES
Capital
Retained redemption
earnings reserve Totals
£    £    £   

At 1 April 2022 2,678,971 150 2,679,121
Profit for the year 930,731 930,731
Dividends (715,000 ) (715,000 )
At 31 March 2023 2,894,702 150 2,894,852

19. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for the employees. The assets of the scheme are held separately from those of the company in independently administered funds, At the balance sheet date there was £987 (2022- £3,043) unpaid contributions.

20. ULTIMATE PARENT COMPANY

Millane Investments Holdings Limited is regarded by the directors as being the company's ultimate parent company.

21. RELATED PARTY DISCLOSURES

During the year the company made a loan of £618,659 (2022- £Nil) to the holding company. The loan is interest free and repayable on demand.

22. ULTIMATE CONTROLLING PARTY

The controlling party is Mrs G Millane.

23. DIRECTOR'S GUARANTEE

The company has entered into a guarantee on behalf of the directors in respect of lease agreements taken on by the directors. The guarantee lasts for the life of the leases of which between 1 and 3 years remain outstanding at the Company's year end. At the year end the exposure under the guarantee amounted to £32,614 (2022- £60,253). The amount of the guarantee is decreasing as the payments are made. No amounts are included in the profit and loss account under this guarantee during the year.