REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 January 2023 |
for |
Jaysam Contractors Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 January 2023 |
for |
Jaysam Contractors Limited |
Jaysam Contractors Limited (Registered number: 02033640) |
Contents of the Financial Statements |
for the Year Ended 31 January 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 6 |
Report of the Independent Auditors | 8 |
Statement of Comprehensive Income | 12 |
Balance Sheet | 13 |
Statement of Changes in Equity | 14 |
Cash Flow Statement | 15 |
Notes to the Financial Statements | 16 |
Jaysam Contractors Limited |
Company Information |
for the Year Ended 31 January 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
8th Floor Becket House |
36 Old Jewry |
London |
EC2R 8DD |
Jaysam Contractors Limited (Registered number: 02033640) |
Strategic Report |
for the Year Ended 31 January 2023 |
The directors present their strategic report on Jaysam Contractors Limited ("the Company") for the year ended 31 January 2023. |
REVIEW OF BUSINESS |
The Company's principal activities during the financial year have broadly remained consistent with all of its previous years and shall remain as such for the forthcoming. |
The Company continues to navigate through a sustained period of national and global economic difficulty although has preserved a strong capitalised balance sheet and healthy cash position, although turnover partly reduced from the previous financial year. |
Construction output in the sectors operated in have started to show signs of recovery from the aftermath of the COVID-19 pandemic. The impact of high inflation in the UK and in Europe, which has been compounded by Brexit, the Ukraine-Russia war and consequential challenges in energy price inflation are creating pressures on construction sectors, noticeably in the retail sector, where the extent of construction turnover relative to pre-COVID-19 levels still remains relatively subdued, owing to pressures of much more restrained capital expenditure from much of our client base. |
Given the market conditions that currently exist amongst a more prolonged period of economic challenge, the key priority for the business is to continue to steadily build further on the level of turnover from the current financial year, and continue to seek an improvement in operating margin, although it is recognised that this will be subject to external pressures from market inflation and high debt costs. |
With the constraints imposed by a worsening economic outlook against a backdrop of high inflation, the Company has taken a more measured approach to employee remuneration this financial year and followed advice from the Bank of England to avoid compounding labour market inflation and wage increases to counter the cost of living. Exceptionally strong employee performance has been rewarded albeit more modestly than the previous financial years, and employees are generally on board with the Company's objective of protecting longer term stability in its core construction activity, protecting the delivery of projects for the forthcoming financial year, and thus bridging through the prolonged period of economic instability that has been predicted to continue in the coming financial year. |
As the industry fully emerges from Brexit and the COVID-19 pandemic, which has restrained output in some of our typical work sectors such as retail; other sectors such as hospitality, restaurant fit-out, high end residential and housebuilding continue to furnish new opportunities. The organisation expects to continue securing more opportunities in these sectors during the forthcoming financial year. |
Jaysam Contractors Limited (Registered number: 02033640) |
Strategic Report |
for the Year Ended 31 January 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
As with the previous financial year, the climate of economic difficulty through abnormal inflation continues to subdue the extent of retail project opportunities available to the Company compared to levels pre COVID-19. To compensate, the Company is looking to secure opportunities in the office fit-out, restaurant fit-out, high end residential and housebuilding sectors which continue to show resistance within prime central London. As with rest of the industry, the Company has continued to remain exposed to increasing costs for labour and material post COVID-19, albeit the degree of increases that have been encountered during this financial year are expected to stabilize through the forthcoming year. |
Salary and employment costs have risen, albeit lesser from the previous year, largely driven by the cost-of-living crisis and pressures on household incomes to outstrip market inflationary pressure. The market continues to suffer from a shortage of specialised skills amongst a wide variety of roles, and this year, more than previous, the Company is continuing to invest in trainee led roles across a number of levels to ease pressure on our existing resource base, but also to ensure there is a longer term more sustainable employee structure in place that can benefit from the highly skilled array of senior talent that exists within the Company. |
As with the previous financial year, many of the Company's construction projects continue to be exposed to currency fluctuation from imported goods and materials, and we expect this to remain volatile in the immediate short term. |
Coupled with inflationary pressures, the Company continues to remain exposed to contract price fluctuation and continuing increases in the cost of materials. The Company is having to work aggressively to diversify its existing supply chain to boost competition and where possible procure advance payments from Clients in order to ensure that supply chain is able to secure fixed price certainty through earlier procurement activity. Unfortunately, not all clients are flexibly capitalized to enable advance payments, and thus the Company anticipates there will be a greater emphasis on improving working cash flow during the forthcoming financial year in order to suppress cost increases and improve operating margin. |
Jaysam Contractors Limited (Registered number: 02033640) |
Strategic Report |
for the Year Ended 31 January 2023 |
FINANCIAL REVIEW |
As far as the businesses main KPI's, a review of the performance parameters highlights the following: |
Turnover of the company decreased by 8.9% from the last year, continuing to exhibit a degree of restraint in the retail shop fit out sectors and new retail project opportunities. The organisations' largest retail client is continuing to operate with caution amongst the backdrop of inflation and cost of living pressures, holding back on its capital spend programme until more favourable market conditions exist. This has continued to impact on the Company's turnover recovery post COVID-19 and we expect a similar trend to continue through the coming financial year. The organisations' current ratio remains strong and steady at 2.48:1 as compared to the previous year where it was at 2.52:1. |
Costs of sales have stabilized relative to the previous year, owing largely to inflationary increases peaking and expected to plateau from hereon. On-going inflationary increases are expected to be more in line with levels encountered pre COVID-19. Gross profit ratio improved from 5% (2022) to 7% (2023). The organisation was able to achieve 0.53% operating margin during the financial year 2022-2023 which is better as compared to last financial year 2021-2022, where we could generate operating margin of 0.11%. Jaysam Contractors Limited remains positive and expecting increase of 25% to 30% in turnover for the financial year (2023-2024). We are also expecting consequential increase in operating margin. Due to limited availability of commercial space and high demand for commercial spaces in Middlesex, value of immovable fixed assets of the company has increased by 15% contributing further strength to the Company's balance sheet. |
Considering the recent economic challenges posed since COVID-19, the organisation has continued to operate resiliently, maintaining its focus on steady turnover recovery, overall profitability and controlling its cost base. The organisation is continuing to invest in employee training and development, particularly in the recruitment of trainee level roles for the purposes of establishing a new longer-term vision for retaining its position as a niche specialist contractor operating within a number of high-end construction sectors. |
It is anticipated that the organisations' turnover in the coming financial year will improve considerably owing to a strong order book and level of turnover already delivered within the first three quarter of 2023-2024 which currently stands at approximately at £28m. One of the organisations' largest house-building projects is also scheduled to resume following a lengthy period of planning delay. Profitability overall is also expected to improve, although cost pressures from inflation and the labour market are likely to impinge this to some extent. The outlook for the high-end residential refurbishment market is continuing to show resilience beyond the traditional house-building sector, and we anticipate that this sector, along with hospitality sectors will represents a vast proportion of the organisations' turnover in the year ahead. |
During the financial year 2023-2024, the organisation is also expected to secure and resume a substantial build contract for a further major residential housing project in inner London, the project had been delayed owing to planning delays, however the value of the project now, compared to that originally anticipated, is expected to be 60% larger, further boosting the Company's turnover in 2023-2024 and 2024-2025. |
Considering the overall challenging factors presented by the economy, such as rising energy prices, high inflation, rising cost of material, scarcity of skilled and experienced labour, impact of Brexit and the prolonged bleak outlook of growth, the Company anticipates that turnover will start to resemble a level similar to that achieved pre COVID-19, although improvement in operating margin is expected to remain more subdued, until the wider economy is able to demonstrate growth and once inflation is brought back closer to the government's current 2% target. |
Jaysam Contractors Limited (Registered number: 02033640) |
Strategic Report |
for the Year Ended 31 January 2023 |
ON BEHALF OF THE BOARD: |
Jaysam Contractors Limited (Registered number: 02033640) |
Report of the Directors |
for the Year Ended 31 January 2023 |
The directors present their report with the financial statements of the company for the year ended 31 January 2023. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of contracting a variety of building projects. |
DIVIDENDS |
No dividends will be distributed for the year ended 31 January 2023. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
Jaysam Contractors Limited (Registered number: 02033640) |
Report of the Directors |
for the Year Ended 31 January 2023 |
AUDITORS |
The auditors, Xeinadin Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Jaysam Contractors Limited |
Opinion |
We have audited the financial statements of Jaysam Contractors Limited (the 'company') for the year ended 31 January 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 January 2023 and of its profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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. |
Report of the Independent Auditors to the Members of |
Jaysam Contractors Limited |
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. |
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 Statement of Directors' Responsibilities set out on page six, 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 |
Jaysam Contractors 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: |
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: |
- Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profitslegislation. |
-Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include health and safety legislation, planning legislation, VAT on construction legislation, Construction Industry Subcontractor taxation legislation. |
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; inspection of relevant legal correspondence; review of board minutes; 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; review of post year end performance of development contracts to ascertain recoverability, review of the validity of debtor recoverability by reviewing development sites profitabilitypost year end. |
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 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 |
Jaysam Contractors 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. |
for and on behalf of |
8th Floor Becket House |
36 Old Jewry |
London |
EC2R 8DD |
Jaysam Contractors Limited (Registered number: 02033640) |
Statement of Comprehensive Income |
for the Year Ended 31 January 2023 |
31.1.23 | 31.1.22 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
240,842 | 34,228 |
Other operating income | 4 |
OPERATING PROFIT | 6 |
Interest receivable and similar income | 8 |
241,423 | 124,975 |
Interest payable and similar expenses | 9 |
PROFIT BEFORE TAXATION |
Tax on profit | 10 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
Revaluation on freehold property |
Income tax relating to other comprehensive income |
( |
) |
( |
) |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Jaysam Contractors Limited (Registered number: 02033640) |
Balance Sheet |
31 January 2023 |
31.1.23 | 31.1.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Revaluation reserve | 19 |
Capital redemption reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Jaysam Contractors Limited (Registered number: 02033640) |
Statement of Changes in Equity |
for the Year Ended 31 January 2023 |
Called up | Capital |
share | Retained | Revaluation | redemption | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 February 2021 |
Changes in equity |
Profit for the year | - | 13,035 | - | - | 13,035 |
Other comprehensive income | - | 130,160 | 153,044 |
Total comprehensive income | - |
Balance at 31 January 2022 |
Changes in equity |
Profit for the year | - | 73,816 | - | - | 73,816 |
Other comprehensive income | - | 19,106 | 390,711 |
Total comprehensive income | - |
Balance at 31 January 2023 |
Jaysam Contractors Limited (Registered number: 02033640) |
Cash Flow Statement |
for the Year Ended 31 January 2023 |
31.1.23 | 31.1.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 22 | ( |
) |
Interest paid | ( |
) | ( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Interest received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Amount introduced by directors | - | 3,853,970 |
Amount withdrawn by directors | (538,868 | ) | (4,680,220 | ) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
23 |
(1,002,381 |
) |
(1,867,600 |
) |
Cash and cash equivalents at end of year |
23 |
( |
) |
( |
) |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements |
for the Year Ended 31 January 2023 |
1. | STATUTORY INFORMATION |
Jaysam Contractors Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
In the application of the company'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 recognition of turnover from long term contracts is recognised only once the outcome of profit is reasonably certain. The directors base this judgement on their historical experience and prior results. The turnover is recognised in line with surveyor valuations. |
Revaluation of the freehold property is in line with the lasted valuation reports provided by chartered surveyors. The directors have previously revalued the property and have sufficient knowledge about the industry to accept the revaluation. |
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. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
The amount recorded as turnover in respect of long term contracts is ascertained by reference to the value of the work carried out to date. Attributable profit is recognised as the difference between recorded turnover and related costs. |
Turnover arising on long term construction contracts is recognised in line with surveyor valuations. Profit is only taken on these contracts once the outcome can be assessed with reasonable certainty. Losses are provided for, in full, in the year in which they are first foreseen. |
Turnover arising on retail works is recognised in line with surveyor valuations. Where valuations are only carried out after the balance sheet date, adjustments are made with reference to costs incurred after the year end in order to bring the valuation back to a reasonable year end position. |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Freehold property - 2% on building cost and not provided on land |
Plant and machinery - 20% on reducing balance |
Fixtures and fittings - 33% on reducing balance |
Motor vehicles - 20% on reducing balance |
Tangible fixed assets are held at historic cost less accumulated depreciation and impairment charges except freehold property which is held at fair value. |
Stocks and work in progress |
Stocks are valued at the lower of cost or the selling price less selling costs, after making due allowance for obsolete and slow moving items. |
Long term contracts are stated at net cost less foreseeable losses less any applicable payments on |
account. |
Financial instruments |
Debtors |
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Long term contracts are stated at net cost less foreseeable losses less any applicable payments on |
account. |
Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method. |
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. |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
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. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
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. |
Going concern |
The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore adopts the going concern basis in preparing its financial statements. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31.1.23 | 31.1.22 |
£ | £ |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
4. | OTHER OPERATING INCOME |
31.1.23 | 31.1.22 |
£ | £ |
Sundry receipts | - | 1,624 |
Grant income |
- | 90,085 |
The business received no Covid-19 government support in the financial year (2022: £88,461). |
5. | EMPLOYEES AND DIRECTORS |
31.1.23 | 31.1.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.1.23 | 31.1.22 |
Management | 5 | 5 |
Accounts | 4 | 4 |
Workshop | 16 | 16 |
Design and supervision | 25 | 23 |
Administration and other | 3 | 3 |
31.1.23 | 31.1.22 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
31.1.23 | 31.1.22 |
£ | £ |
Hire of plant and machinery |
Other operating leases |
Depreciation - owned assets |
7. | AUDITORS' REMUNERATION |
31.1.23 | 31.1.22 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
21,760 |
17,500 |
8. | INTEREST RECEIVABLE AND SIMILAR INCOME |
31.1.23 | 31.1.22 |
£ | £ |
Other interest receivable |
9. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.1.23 | 31.1.22 |
£ | £ |
Bank interest |
Bank loan interest |
Interest on overdue tax |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
31.1.23 | 31.1.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax |
Tax on profit |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
10. | 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: |
31.1.23 | 31.1.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Total tax charge | 46,837 | 14,783 |
Tax effects relating to effects of other comprehensive income |
31.1.23 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation on freehold property | (119,289 | ) | 390,711 |
31.1.22 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation on freehold property | (106,956 | ) | 153,044 |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST OR VALUATION |
At 1 February 2022 |
Additions |
Revaluations |
At 31 January 2023 |
DEPRECIATION |
At 1 February 2022 |
Charge for year |
Revaluation adjustments | ( |
) | ( |
) |
At 31 January 2023 |
NET BOOK VALUE |
At 31 January 2023 |
At 31 January 2022 |
Cost or valuation at 31 January 2023 is represented by: |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
Valuation in 2023 | 1,743,715 | - | - | - | 1,743,715 |
Cost | 1,826,285 | 760,864 | 118,090 | 225,958 | 2,931,197 |
3,570,000 | 760,864 | 118,090 | 225,958 | 4,674,912 |
If land and buildings had not been revalued they would have been included at the following historical cost: |
31.1.23 | 31.1.22 |
£ | £ |
Cost | 1,826,285 | 1,826,285 |
Land and buildings were valued on an open market basis on 31 January 2023 by Belleveue Mortlakes Chartered Surveyors . |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
12. | STOCKS |
31.1.23 | 31.1.22 |
£ | £ |
Raw materials |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.1.23 | 31.1.22 |
£ | £ |
Trade debtors |
Amounts owed by related parties |
Amounts recoverbale on contracts |
Other debtors |
Staff loans | 10,000 | 3,000 |
Tax |
Prepayments |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.1.23 | 31.1.22 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Trade creditors |
Sub contractors retentions | 218,597 | 251,560 |
Amounts owed to related parties | 164,646 | 145,979 |
Tax |
Social security and other taxes |
VAT | 767,315 | 227,434 |
Other creditors- related party |
Net wages | 147,037 | 132,541 |
Pension | 12,644 | 12,135 |
Other creditors | 1,163,021 | 1,163,020 |
Directors' current accounts | 8,500,526 | 9,039,394 |
Accrued expenses |
15. | LOANS |
An analysis of the maturity of loans is given below: |
31.1.23 | 31.1.22 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
16. | SECURED DEBTS |
Bank overdraft facilities are secured on the property and all assets of Jaysam Contractors Limited. |
Jaysam Contractors Limited has agreed to cross guarantee the loans for related party companies: Sydney Developments Limited £44,494,444; Jaysam Developments Wembley Limited £12,534,600; and Snowden Developments Limited £9,750,000. |
17. | PROVISIONS FOR LIABILITIES |
31.1.23 | 31.1.22 |
£ | £ |
Deferred tax |
Accelerated capital allowances |
Other timing differences | 438,331 | 314,365 |
Retentions provision | 77,213 | - |
Deferred |
tax |
£ |
Balance at 1 February 2022 |
Charge to Statement of Comprehensive Income during year |
Other provision | 77,213 |
Balance at 31 January 2023 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.1.23 | 31.1.22 |
value: | £ | £ |
Ordinary | £1 | 22,750 | 22,750 |
All shares have normal voting rights with no restrictions on the distribution of dividends or repayment of capital. |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
19. | RESERVES |
Capital |
Retained | Revaluation | redemption |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 February 2022 | 27,449,680 |
Profit for the year |
Revaluation of tangible assets | - | 390,711 | - | 390,711 |
Transfer | 19,106 | (19,106 | ) | - | - |
At 31 January 2023 | 27,914,207 |
The amount included in retained earnings represents distributable reserves. |
20. | RELATED PARTY DISCLOSURES |
Transactions with directors |
Director and shareholder |
During the year the company rented premises owned by the director Mr S S Patel and his wife Mrs V Patel (an employee & shareholder). Total rent charged for the year was £108,000 (2022: £108,000). |
At the year end the director Mr SS Patel was owed £4,053,861 (2022: £4,410,028) on loan account. |
At the year end the director Mr D Dabasia was owed £2,598,332.50 (2022: £2,675,032.50) on loan account. |
At the year end the director Mr S Dabasia was owed £1,848,332.50 (2022: £1,954,333.50) on loan account. |
At the year end Mr H Dabasia, the son and brother to the directors, was owed £1,240,169 (2022: £1,392,834), which is included in other creditors. |
SCWH Limited |
Mr S S Patel, Mr S Dabasia and Mr D Dabasia are shareholders. |
31.1.23 | 31.1.22 |
£ | £ |
Amount due from related party at the balance sheet date | 4,339 | 9,013 |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
20. | RELATED PARTY DISCLOSURES - continued |
WL Stannmore Limited |
Mr S S Patel, Mr S Dabasia and Mr D Dabasia are shareholders |
31.1.23 | 31.1.22 |
£ | £ |
Amount due (to)/from related party at the balance sheet date | (21,479 | ) | 15,121 |
Snowden Development Limited |
Mr S S Patel, Mr S Dabasia and Mr D Dabasia are shareholders |
During the year, the company made sales to Snowden Developments Limited of £278,784 (2022: £257,944). |
31.1.23 | 31.1.22 |
£ | £ |
Amount due from related party at the balance sheet date | - | 1,079,944 |
Burlington Properties London Limited |
Mr S S Patel, Mr S Dabasia and Mr D Dabasia are shareholders |
During the year, the company made sales to Burlington Properties London Limited of £1,983,504 (2022: £1,071,422). The directors of Burlington Properties London Limited, who are also directors of Jaysam Contractors Limited have confirmed that they will support Burlington Properties London Limited should it be unable to meet its liabilities with Jaysam Contractors Limited. |
31.1.23 | 31.1.22 |
£ | £ |
Amount due from related party at the balance sheet date | 18,037,743 | 15,966,148 |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
20. | RELATED PARTY DISCLOSURES - continued |
Caledonian Developments (Watford) Limited |
Mr S S Patel, Mr S Dabasia and Mr D Dabasia are shareholders |
During the year, the company made sales to Caledonian Developments (Watford) Limited of £1,500 (2022: £401,160). The directors of Caledonian Developments (Watford) Limited, who are also directors of Jaysam Contractors Limited have confirmed that they will support Caledonian Developments (Watford) Limited should it be unable to meet its liabilities with Jaysam Contractors Limited. |
31.1.23 | 31.1.22 |
£ | £ |
Amount due from related party at the balance sheet date | 3,120,000 | 5,678,160 |
Jaysam Developments Wembley Limited |
Mr S S Patel, Mr S Dabasia and Mr D Dabasia are shareholders |
During the year, the company made sales to Jaysam Developments Wembley Limited of £1,250 (2022: £695,340). |
31.1.23 | 31.1.22 |
£ | £ |
Amount due from related party at the balance sheet date | - | 3,314,347 |
Wood Farm (Stanmore) Limited |
Mr S S Patel and Mr D Dabasia are shareholders |
31.1.23 | 31.1.22 |
£ | £ |
Amount due to related party at the balance sheet date | 143,167 | 145,979 |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
20. | RELATED PARTY DISCLOSURES - continued |
Sydney Developments Limited |
Mr S S Patel, Mr S Dabasia and Mr D Dabasia are shareholders |
During the year, the company made sales to Sydney Developments Limited of £5,061,832 (2022: £1,285,625). The directors of Sydney Developments Limited, who are also directors of Jaysam Contractors Limited have confirmed that they will support Sydney Developments Limited should it be unable to meet its liabilities with Jaysam Contractors Limited. |
31.1.23 | 31.1.22 |
£ | £ |
Amount due from related party at the balance sheet date | 15,942,622 | 10,691,200 |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr S S Patel by way of majority shareholding of 53.85%. |
22. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.1.23 | 31.1.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Provision movement | 77,213 | - |
Finance costs | 120,770 | 97,157 |
Finance income | (581 | ) | (662 | ) |
419,462 | 184,538 |
Increase in stocks | ( |
) | ( |
) |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
Jaysam Contractors Limited (Registered number: 02033640) |
Notes to the Financial Statements - continued |
for the Year Ended 31 January 2023 |
23. | 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 January 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 284,544 | 1,858,745 |
Bank overdrafts | ( |
) | ( |
) |
(2,033,638 | ) | (1,002,381 | ) |
Year ended 31 January 2022 |
31.1.22 | 1.2.21 |
£ | £ |
Cash and cash equivalents | 1,858,745 | 1,340,738 |
Bank overdrafts | ( |
) | ( |
) |
(1,002,381 | ) | (1,867,600 | ) |
24. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.2.22 | Cash flow | At 31.1.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,858,745 | (1,574,201 | ) | 284,544 |
Bank overdrafts | (2,861,126 | ) | 542,944 | (2,318,182 | ) |
(1,002,381 | ) | ( |
) | (2,033,638 | ) |
Total | (1,002,381 | ) | (1,031,257 | ) | (2,033,638 | ) |