REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
LINK CONTRACTING SERVICES LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
AUDITED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
LINK CONTRACTING SERVICES LIMITED |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Income and Retained Earnings | 8 |
Balance Sheet | 9 |
Cash Flow Statement | 11 |
Notes to the Cash Flow Statement | 12 |
Notes to the Financial Statements | 13 |
LINK CONTRACTING SERVICES LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2023 |
Directors: |
Registered office: |
Registered number: |
Auditors: |
1st Floor Waterside House |
Waterside Drive |
Wigan |
Lancashire |
WN3 5AZ |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2023 |
The directors present their strategic report for the year ended 30 June 2023. |
Review of business |
The principal activities of the company remain the same, delivering reactive, planned, and compliance works in relation to fabric, building, mechanical and electrical services. The company provides full 24 hour reactive, planned and compliance services to Commercial, Leisure, Educational and Retail sectors throughout the United Kingdom. |
The company restructured its service delivery teams into two sections, Client Delivery and Technical Services, providing a more streamlined service to individual client sectors, proving successful in seeing the renewal of key contracts and continued successful delivery of embedded contracts. |
The operational department continues to be innovative in developing the bespoke CAFM system with a drive to improve efficiency, processes, and procedures. |
The Senior Leadership Team, together with the management continue to develop its people promoting from within and onboarding key experienced employees. |
The Directors consider the key performance indicators to be turnover and gross profit. |
2023 | 2022 | 2021 |
Turnover | £18,492,662 | £18,685,477 | £20,037,938 |
Gross profit | £6,874,773 | £6,606,502 | £7,172,414 |
Gross profit % | 37.2% | 35.4% | 35.8% |
Other key performance indicators are considered to be : |
- An industry leading first time fix rate of over 90% |
- Over 65,000 work orders delivered in 2023 |
- Industry leading health and safety records and maintaining RoSPA Gold for the 5th Year |
- Awarded RoSPA Gold for Fleet Safety for the 3rd Year running |
- Core Values maintained, 100% Safe, Right First Time, Complete on Time, Develop our People and Community Focused |
- Client Retention and Satisfaction measured at over 95% |
- Average vehicle fleet age of 1.6 years |
The company's strategic growth plan remains strong, working with key selected clients and sectors being reflected in the repeat business we receive. |
The company continues to remain successful despite the ongoing challenges presented by the rising costs in energy, fuel, and specialist materials. The business has worked hard at retaining and satisfying its existing customers whilst developing a more diverse client base and adding additional financial security and stability. |
Recruitment and retaining staff remain to be challenging industry wide. The company has implemented salary bandings and targets, allowing employees to have continuing goals to work towards, proving successful and rewarding. |
The company's core values of 100% safe, right first time, completed on time, develop its people and Community Focused have been more important than ever this year and once again the business has been awarded RoSPA Gold for safety and RoSPA Gold for Fleet Safety. The company also achieved the Customer Service Excellence standard in November 2021. |
Principal risks and uncertainties |
The company continues to have no bank borrowing whatsoever and continues to manage its cash flow successfully. |
The business enjoys customers who generally pay on time and regular credit checks are carried out. |
Its IT systems continue to drive efficiencies within the business and with full visibility on costs the business is able to limit its risk from an early stage if contracts look to be exceeding budgets. |
The company continues to review its policies, procedures, workforce, and ways of working to ensure that it remains competitive within the industry. Full tender reviews, post contract reviews, data analysis and supplier reviews are completed to ensure continued profitability and to minimise financial risk to the business. |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2023 |
Community projects |
The business has continued with its commitment to social responsibility, having successfully delivered numerous community projects throughout the UK, sponsoring local teams in our areas of work, and fundraising for Derian House Children's Hospice and other local charities. Employees donated over 1000 hours of their time to local charities and volunteering sessions, and over £25,000 has been raised for charity. |
On behalf of the board: |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2023 |
The directors present their report with the financial statements of the company for the year ended 30 June 2023. |
Dividends |
The total distribution of dividends for the year ended 30 June 2023 will be £715,222. |
Directors |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
Mr D Roberts was appointed as a Director on 2 November 2023. |
Disclosure in the strategic report |
The disclosures in respect of the business review, future developments and the financial risk management, objectives and policies are included in the Strategic Report.The principal activities of the company are also disclosed in the Strategic 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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. |
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom, governing the preparation and dissemination of financial statements, may differ from legislation in other jurisdictions. |
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. |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2023 |
Auditors |
The auditors, NRB, 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 |
LINK CONTRACTING SERVICES LIMITED |
Opinion |
We have audited the financial statements of Link Contracting Services Limited (the 'company') for the year ended 30 June 2023 which comprise the Statement of Income and Retained Earnings, Balance Sheet, 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 30 June 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. |
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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
LINK CONTRACTING SERVICES LIMITED |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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. |
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: |
- Consideration was given to the entity's susceptibility to material misstatement at all times during the audit including consideration of how fraud could occur. This involved consideration of the nature of the entity's activities and transactions with the potential identification of fraud |
- Identification of key laws and regulations considered central to the entity, including a review of any policies and procedures in place to ensure compliance. Key laws and regulations identified include the UK Companies Act, tax legislation and health and safety regulations |
- Ensured that the engagement team had the necessary competence and capabilities to identify any examples of non-compliance at all stages |
- Audit work was completed in all relevant areas that were deemed to be appropriate for the client and the associated risks in respect of potential misstatements, including fraud. Our audit work was designed to assess these risks in all areas and included enquiry of management, testing the appropriateness of journal entries, reviewing financial statement disclosures and tracing to relevant documentation as well as the consideration of the risk of potential management override |
Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. |
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. |
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 |
1st Floor Waterside House |
Waterside Drive |
Wigan |
Lancashire |
WN3 5AZ |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
STATEMENT OF INCOME AND |
RETAINED EARNINGS |
FOR THE YEAR ENDED 30 JUNE 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
1,703,223 | 1,434,074 |
Other operating income |
1,704,773 | 1,438,484 |
Interest receivable and similar income |
1,768,630 | 1,463,479 |
Interest payable and similar expenses | 7 |
PROFIT BEFORE TAXATION | 8 |
Tax on profit | 9 |
PROFIT FOR THE FINANCIAL YEAR |
Retained earnings at beginning of year |
Dividends | 10 | ( |
) | ( |
) |
RETAINED EARNINGS AT END OF YEAR |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
BALANCE SHEET |
30 JUNE 2023 |
30.6.23 | 30.6.22 |
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 |
CREDITORS |
Amounts falling due after more than one year |
15 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
BALANCE SHEET - continued |
30 JUNE 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest element of hire purchase payments paid |
( |
) |
( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) | ( |
) |
Amount withdrawn by directors | (727,818 | ) | (715,221 | ) |
Loan to associated company | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
1,904,032 |
Cash and cash equivalents at end of year | 2 | 2,086,585 | 1,410,904 |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
NOTES TO THE CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.6.23 | 30.6.22 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Finance costs | 17,562 | 21,245 |
Finance income | (63,857 | ) | (24,995 | ) |
2,076,314 | 1,865,769 |
Decrease in stocks |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase/(decrease) in trade and other creditors | ( |
) |
Cash generated from operations |
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 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 2,086,585 | 1,410,904 |
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 1,410,904 | 1,904,032 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
Other |
non-cash |
At 1.7.22 | Cash flow | changes | At 30.6.23 |
£ | £ | £ | £ |
Net cash |
Cash at bank |
and in hand | 1,410,904 | 675,681 | 2,086,585 |
1,410,904 | 2,086,585 |
Debt |
Finance leases | (331,609 | ) | 286,055 | (237,688 | ) | (283,242 | ) |
(331,609 | ) | 286,055 | (237,688 | ) | (283,242 | ) |
Total | 1,079,295 | 961,736 | (237,688 | ) | 1,803,343 |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
1. | STATUTORY INFORMATION |
Link Contracting Services Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The financial statements have been prepared under the historical cost convention. |
Going Concern |
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continue to adopt the going concern basis in preparing its financial statements. |
Significant judgements and estimates |
The preparation of the financial statements requires management to make judgements, estimates and assumptions. As set out in the turnover accounting policy below, the recognition of revenue for ongoing services at the year-end is calculated by reference to the expected profit for the transaction.Whilst revenue is only included when a reliable estimate of the outcome of the transaction is available, the judgement of the directors is required when calculating the figures. |
Turnover |
Turnover relates to the rendering of services and is measured at the fair value of consideration received or receivable, net of discounts and value added taxes. |
Revenue is recognised when a sales invoice is issued. In addition, at the end of the reporting period, revenue is recognised in respect of services which have been completed but not invoiced. This revenue is included at the value of the sales invoice raised after the reporting report in respect of the completed work |
Revenue is also recognised when services are ongoing at the end of the reporting period and the outcome of the transaction can be reliably estimated, In such cases, the amount of revenue recognised is calculated by assessing the total expected profit for each transaction and adding an appropriate amount onto the unbilled costs incurred up to the balance sheet date. If the ongoing service relates to a transaction subject to a fixed mark-up percentage, revenue is recognised by adding the mark-up percentage onto unbilled costs incurred up to the balance sheet date. |
All unbilled revenue which has been recognised as revenue in the reporting report is included within debtors as accrued income. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows : |
Leasehold improvements | - 20 years on a straight line basis |
Plant and machinery | - 20% on reducing balance |
Fixtures and fittings | - 20% on reducing balance |
Motor vehicles | - 25% on reducing balance |
Stocks |
Stock is valued at the lower of cost and net realisable value. Cost is calculated by reference to the most recent purchase price. |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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 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 |
Tangible fixed assets acquired under finance leases or hire purchase contracts are capitalised and depreciated in the same manner as other tangible fixed assets. The related obligations, net of future finance charges, are included in creditors. |
Rentals payable under operating leases are charged to the profit and loss account on a straight lines 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. |
Impairment |
At each reporting date fixed assets are reviewed to determine whether there is any indication that those assets have suffered an impairment loss. If there is an indication of possible impairment, the recoverable amount of any affected asset is estimated and compared with its carrying amount. If estimated recoverable amount is lower, the carrying amount is reduced to its estimated recoverable amount, and an impairment loss is recognised immediately in the income statement. |
If an impairment loss subsequently reverses, the carry amount of the asset is increased to the revised estimate of its recoverable amount, but not in excess of the amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in the income statement. |
Trade and other debtors |
Trade and other debtors are initially recognised at the transaction price and thereafter stated at amortised cost using the effective interest method, less impairment losses for bad and doubtful debts except where the effect if discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts. |
Trade and other creditors |
Trade and other creditors are initially recognised at the transaction price and are thereafter sated at amortised cost using the effective interest method unless the effect of discounting would be immaterial, in which case they are stated at cost. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the company. |
The directors consider that the turnover of the company now relates to only one class of business, being the rendering of services, and that no analysis of turnover is appropriate, |
The company's turnover arises entirely in the United Kingdom. |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
5. | EMPLOYEES AND DIRECTORS |
30.6.23 | 30.6.22 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
30.6.23 | 30.6.22 |
Office and management | 61 | 59 |
Operational | 103 | 108 |
6. | DIRECTORS' EMOLUMENTS |
The total directors remuneration for the year ended 30 June 2023 was £236,477 (2022 : £237,218). The highest paid director received emoluments of £146,380 (2022 : £147,989). |
The number of directors to who retirement benefits were accruing in money purchase schemes in the year ended 30 June 2023 was 3 (2022 : 2). Pension contributions of £112,118 (2022 : nil) were paid on behalf of the directors. |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.23 | 30.6.22 |
£ | £ |
Hire purchase |
8. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
30.6.23 | 30.6.22 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditors' remuneration |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.6.23 | 30.6.22 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax: |
Current year |
Tax on profit |
UK corporation tax has been charged at 20.50% . |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
9. | 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: |
30.6.23 | 30.6.22 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Deferred tax charge for the year | 15,049 | 39,530 |
Total tax charge | 365,858 | 280,607 |
10. | DIVIDENDS |
30.6.23 | 30.6.22 |
£ | £ |
Interim |
11. | TANGIBLE FIXED ASSETS |
Fixtures |
Leasehold | Plant and | and | Motor |
improvements | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
Fixed assets include items held under finance leases or hire purchase contracts. The net book value of these at the year-end was £675,612 (2022 : £624,728) and the depreciation charge on the assets for the year was £158,813 (2022 : £146.544). |
12. | STOCKS |
30.6.23 | 30.6.22 |
£ | £ |
Stocks |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Trade debtors |
Amounts owed by associated company |
Other debtors |
Directors' current accounts | 727,818 | 715,222 |
Tax |
Accrued income |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Hire purchase contracts (see note 16) |
Trade creditors |
Tax |
Social security and other taxes |
VAT | 544,603 | 326,431 |
Other creditors |
Hire purchase liabilities are secured against the assets to which they relate. |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.6.23 | 30.6.22 |
£ | £ |
Hire purchase contracts (see note 16) |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
30.6.23 | 30.6.22 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
30.6.23 | 30.6.22 |
£ | £ |
Within one year |
Between one and five years |
17. | PROVISIONS FOR LIABILITIES |
30.6.23 | 30.6.22 |
£ | £ |
Deferred tax | 393,799 | 378,750 |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
17. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 July 2022 |
Provided during year |
Balance at 30 June 2023 |
The deferred tax provision relates entirely to accelerated capital allowances. |
Deferred tax has been provided for on the basis of the corporation tax rate being 25% as this is the rate expected to apply to the reversal of the timing differences. |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.23 | 30.6.22 |
value: | £ | £ |
Ordinary shares | £1 | 10,000 | 10,000 |
19. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 30 June 2023 and 30 June 2022: |
30.6.23 | 30.6.22 |
£ | £ |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Interest has been charged and the loans are unsecured. |
The directors intend to repay the overdrawn amounts to the company within nine months of the balance sheet date. |
20. | RELATED PARTY DISCLOSURES |
During the year, total dividends of £715,222 (2022 - £517,641) were paid to the directors . |
LINK CONTRACTING SERVICES LIMITED (REGISTERED NUMBER: 02461502) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
20. | RELATED PARTY DISCLOSURES - continued |
Transactions with related parties in the year were as follows : |
2023 | 2022 |
£ | £ |
Sales invoiced to associated companies | 709,867 | 33,862 |
Purchases from associated companies | 112,602 | 49,924 |
Interest charged to associated companies | 13,657 | 9,533 |
Amounts owed by associated companies (included in trade debtors) | 881,339 | 24,425 |
Amounts owed to associated companies (included in trade creditors) | 9,227 | 4,394 |
Loan to associated companies | 1,143,623 | 358,888 |
Rent payments to pension scheme | 100,000 | 100,000 |
Accrued income relating to associated companies | - | 574,191 |
Amounts owed by a director (included in trade debtors) | 125,245 | - |
Accrued income relating to a director | - | 113,235 |
Sales invoiced to a director | 113,320 | 875,000 |
During the year, a total of key management personnel compensation of £ |
21. | ULTIMATE CONTROLLING PARTY |
The company is under the control of Mr B Thompson by way of the shares held by himself and by his immediate family. |