REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 June 2023 |
for |
ARCHITECTURAL DECORATORS LIMITED |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements |
for the Year Ended 30 June 2023 |
for |
ARCHITECTURAL DECORATORS LIMITED |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Contents of the Financial Statements |
for the year ended 30 June 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 8 |
Report of the Independent Auditors | 10 |
Statement of Comprehensive Income | 14 |
Balance Sheet | 15 |
Statement of Changes in Equity | 16 |
Notes to the Financial Statements | 17 |
ARCHITECTURAL DECORATORS LIMITED |
Company Information |
for the year ended 30 June 2023 |
Directors: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
Statutory Auditor |
Juniper House |
Warley Hill Business Park |
The Drive |
Brentwood |
Essex |
CM13 3BE |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Strategic Report |
for the year ended 30 June 2023 |
Review of business |
The directors of Architectural Decorators Ltd (AD) report the most recent set of accounts with the results of the Company's performance for the year ended 30 June 2023 with the comparatives covering the year ended 30 June 2022. |
The key performance indicators of the Company continues to be turnover and gross profit, which show another year of increase in turnover by 20% and positive gross profit margins of 12%, despite a number of economic challenges. We are well recognised in the Public Sector for our three main areas of expertise; Planned Maintenance, Fire Safety Work & Energy Efficient Healthy Homes. |
The year has been challenging with Inflation, lead times and Skills Shortages identified as the main factors having an effect on business. The cost of construction materials has seen very large increases across the board, negatively affecting average gross margins and general availability of some materials has caused a number of delays on some projects. |
In order to combat the reduction in availability of skilled labour we continue to scale up our in house training courses, personal development plans and apprenticeship programs. Whilst doing so increases our costs, the strategy is providing our teams 'home grown' professional talent assisting in the delivery of the growing number of projects we win. |
We have also been successful in securing further places on long term frameworks providing further certainty of current levels of turnover and cash flow of the Company remains strong. |
Section 172(1) statement |
The board at AD welcomes the legal responsibility that Architectural Decorators Ltd has under section 172 of the Companies Act 2006 as an opportunity to explain how dialogue and policy with stakeholders that helps to shape our decisions and long term strategies. |
Promoting the company's success for its members |
Architectural Decorators Ltd was first formed in 1944 and was purchased by one of it's current owners in 1983 and continues to be controlled by Steven Doyle with help in running the business by the longstanding senior management team and staff. AD adhere to the highest standards on all aspects of the business, including; contractual requirements, health, safety, wellbeing, protection of the environment, sustainability and quality assurance. |
We are proud of the way that the company has successfully grown organically almost every year in the last 30 years whilst providing employment, training and sustainable financial income for a large number of apprentices, employees and wider supply chain. |
AD was originally established as a decorating company in 1944 and has since evolved to its current structure which provides 3 main strands of Planned Maintenance, Fire Safety Work and providing Energy Efficiency and Healthy Homes Solutions. |
One cornerstone strategy for developing our service offering has largely centered around a policy of seeking out and working for Public Sector clients, in particular Social Housing Providers and Local Authorities. |
The current board continues to conduct meetings that energetically identify and develop strategies, solutions, policies and procedures to help us achieve our goals. Wherever possible, engagement with the wider workforce and management teams is sought out to contribute towards these strategies. |
AD is committed to Sustainability and the Public Services (Social Value) Act 2012 and ensure that we not only deliver excellent value and high quality works for our public sector partners, but also include wider added value benefits in our contractual delivery, such as providing apprenticeships, training opportunities, local employment, supply chain engagement, sponsorship, community engagement and investment. |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Strategic Report |
for the year ended 30 June 2023 |
Engaging with stakeholders |
Our key stakeholders and the ways in which we engage with them, are as follows: |
Our employees |
To remain successful we rely on every person in the organization to continue to be focused and engaged in providing the high levels of service that our clients have come to expect from us. |
Our considerable experience has enabled us to assemble skilled and accomplished teams that are capable of fulfilling all of our clients' needs in a time and cost efficient manner. With over three quarters of a century of skills, training and experience at our disposal, our team can manage every job from the simple redecoration of a single room, through to more demanding projects, such as the refurbishment of the entire housing stocks spread over wide geographical areas. |
Learning and Development is key focus and contributor to our continued growth strategy, ensuring we have qualified staff who are committed to our values and ways of working. AD invest in our staff and ensure they enjoy fulfilling careers and meet their full potential. |
All staff have access to training and can request additional training via their appraisals in order to progress their careers within AD to their aspirations. |
AD has operated an award winning apprenticeship and entry level traineeship scheme since the 1980's in order to secure new talent to meet the future needs of our business and to invest in a workforce where there is a well reported industry shortage of skills. |
AD offers nationally recognised apprenticeships in both trades and business related roles and supports entry level quantity surveying staff with fully funded HNC and degrees and fully supported day release schemes with local educational providers. |
AD offer fully supported training and UK recognised qualifications. Our staff benefit from a range of available options such as AAT, CIPD, HNC, and NVQ attainment (Levels 1 - 6) in numerous role specific disciplines. |
The next few months will see the current owners of AD complete the development of the building adjoining the current head office into a bigger and welcoming working environment. This will result in the following; |
- 20 Electric Vehicle Charging points |
- A larger gymnasium with better showering and change facilities |
- Large and better equipped break out areas |
- Flexible Hot Desk environments for flexible working |
- A larger and better equipped training suite |
- A purpose built 'academy' area for our apprentices to learn and develop new skills. |
AD is an equal opportunities employer and complies with the Equality Act (2010). AD will not tolerate discrimination of any kind from its workforce. AD seeks to ensure our activities and communications are fully inclusive to engage across the diversity of society. |
Our customers and their residents |
AD Construction Group Ltd has a particular focus on housing solutions and so our entire structure, strategy and ISO: 9001 accredited processes all revolve around providing high quality services and cost effective solutions for all of our clients and their residents. AD presently provide services in almost every London Borough, the entire South East of England, the Midlands, East Anglia and Isle of Wight. At present in total, our clients own and manage in excess of 625,000 homes, providing housing for approximately 1,500,000 people. |
AD is not a responsive repairs contractor. Instead, all maintenance works we carry out for our clients are of planned/cyclical nature. This means that we can work closely with our clients to formulate intelligent, innovative solutions that prolong the working life of the products and materials we install, saving clients expense and minimising disruption and future breakdowns for our customers. |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Strategic Report |
for the year ended 30 June 2023 |
One particular area of increased activity is in the Fire Risk remedial works that so many social housing providers and their residents currently find themselves exposed to. AD has achieved and retained a number of certifications and accreditations for the provision of FRA and Fire Safety Works. These have been achieved after significant investment in our IT systems and processes along with an extensive training development program for a large number of staff. |
AD now provides advice and associated works to undertake Energy Efficiency improvement works for our clients as their decarbonization and healthy homes strategies reach implementation stage. |
The Customer and Resident Experience is a vital and integral part of our service offering. All property and more obviously homes - serve a purpose for "People" the people who live, work, use, or operate within the buildings themselves; and as such resident care is always the first consideration for all works. Our CSR (Customer Support Representative) teams work with and for all customers and residents and use our Household Profile Tool to ensure all household members are fully prepared and informed before work starts. |
Our CSRs will build flexible appointment schedules in order to minimise disruption for residents and will provide additional support services if requested for residents who would like assistance, are vulnerable, or those with a disability to ensure specific needs and considerations are met throughout the duration of any works being undertaken to their homes. |
AD is responsive to our clients and residents needs and operates to a code of conduct. To achieve first class customer service, we employ the following ethos of: |
- Effective Communication |
- Consultation |
- Involvement |
- Innovation |
- Empathy |
- Information |
- Inclusivity |
- Trust |
As a responsible service provider dedicated to supporting clients and residents, we ensure we support and help our clients to protect not only vulnerable residents, but all residents. Accordingly, we have a safeguarding policy, which outlines our commitments to ensure this. |
We work in partnership with all of our clients to ensure we protect residents and implement safeguarding policies and procedures effectively; whether it's our client's policy, or our own, which is utilised. All staff wear AD uniform and carry AD branded identification cards. |
Our suppliers |
AD continues to work closely with our suppliers to ensure that as we grow our suppliers are equally presented with opportunities for growth where they have embraced the high standards and ethos of AD's service delivery. |
Like most business, all of our suppliers are dependent on strong cash flow to deliver sustainable ad robust growth. Because of our self-sufficient strong cashflow position, AD is able to offer excellent payment terms to our suppliers and enhanced payment solutions for exceptional circumstances, such as more recently, a number of Fire Door suppliers unable to scale up as quickly as the wider industry demand requires because of cash flow. AD has been able to pay a substantial portion of Fire Door orders in advance of manufacture so that the cash flow issue does not interrupt production. |
Our community |
AD has several managed offerings in order to deliver the Social Value commitments we make to our clients as a public sector partners. Time and investment are the core of these delivery vehicles. [Community Works Fund, Time Bank, Workforce Ready and Pathways.] |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Strategic Report |
for the year ended 30 June 2023 |
AD have been awarded numerous accolades and accreditations for our ESG/Social Value and CSR in the 2022/23 period. Below are a few of the most significant. |
- CSRA Associate Member & CSRA Gold Accredited |
- CSR International Excellence Awards - Gold Award Winner |
- Green Apple - Global Gold Award Winner for CSR |
- Employer Recognition Bronze Award - Armed Forces Covenant |
- 5 % Club Gold Award Member |
- Supply Chain Sustainability School (Silver Member working towards Gold) Numerous CPD Accredited courses |
- Zero Waste Scotland (Now run by Energy Saving Trust - EST) - Educational Resources and 'Green Champion' CPD Accredited course. |
- Social Mobility Pledge |
- Inspiring Women in Construction Pledge |
- Employee Assistance Group Members - Qualification: NCFE CACHE Level 2 Certificate in Awareness of Mental Health Problems |
- Investors in People (IIP) |
- Cyber Essentials Plus Certified |
- BSC International Safety Award - Merit |
- ESG Complaint (Independent Validation) |
- Constructionline Gold |
- Safe Contractor Verified including Sustainability |
Our Social Value proposals offer clients and residents both flexibility and ideas, which enable us to work together to find solutions and engagement, which are tangible and of measurable benefit directly to the community. |
Through 2022 - 2023 AD has provided in excess of £113,303k in social Value and over 770 hours of free/volunteer time. |
AD is committed to Sustainability and the Public Services (Social Value) Act 2012, (and the UN Sustainable Development Goals) - providing economic, social, and environmental benefits to local communities where we provide services. |
As a responsible partner we ensure sustainability is at the core of our business. AD invests in the communities in which we work, by providing: |
- Education and Training |
- Employment and Skills |
- Support for Local Businesses |
- Investment, Funding and Sponsorship |
- Community Events and Improvements |
- Inclusion |
This year AD introduced 'AD Pathways' A dedicated staff learning and development portal containing learning resources, advice, information and development support. The portal contains a complete dedicated apprenticeship site which promotes various support networks such as UCAS and AoA, learning materials, mock exams, general guidance and access to a community of mentors and other learners to connect within the organisation. |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Strategic Report |
for the year ended 30 June 2023 |
Some of the most recent notable Social Value Contributions in 2022/23 are: |
- £25,000 Donation to World Child Cancer |
- £2,500 to support PTSD Resolution - Shetland 23 |
- £500 Sponsorship of under 11s football team and provided a new kit (AD staff member is a volunteer coach) Bessingby Park |
- £4,456 - PA Housing - Elmbridge Eco Hub Creation |
- £1,000 MTVH Cost of Living Campaign |
- Optivo (Southern Housing) Fresh Visions Charity - Build Yourself - gave a careers talk to 20 students taking part in the refurbishment and painting training courses they provide and offered work experience |
- Hired 12 people via the L&Q Employment Teams (and interviewed 24) where we offer guaranteed interviews to their residents |
- £3,081 raised for Samaritans via the Coastal Walk Challenge |
- Over £16,000 in direct funding to Southern Housing to use for numerous resident support activities as well as a number of refurbishment projects for their residents and communities |
- £500 for Raven Housing to install bird boxes to protect the Swift population at Banstead |
- Attended more than 10 recruitment and job fair events with local councils, housing associations and clients to offer employment opportunities |
- £39,000 undertaking estate improvement works at Townmead estate to repairs damage caused by leaks and remove street furniture causing antisocial behavior and replace with new landscaping |
In addition to the list above each year we choose a partner Charity that becomes the focus of our fundraising events. This past year we have supported 'ellenor' a local hospice charity and will continue to do so for 23/24. |
Our planet |
Sustainable working practices are important to AD Construction Group. Sustainability is not just about protecting the environment; it is about achieving a balance between the environmental, the economic and the social needs of our communities. It is also about considering the long term effects of our actions. |
We continue to strive towards our net zero emissions target by 2050 through the development and implementation of our Carbon Reduction Plan, which contains our headline milestones of: |
- Reducing CO2 emissions to 30% by 2026 (Scope 1 and 2) |
- 85% of our fleet to be fully plugin hybrid/electric vehicles by 2035 (Scope 1) |
- Reducing CO2 emissions to 70% by 2035 (Scope 1 and 2) |
- 100% renewable energy by 2035 (Scope 2) |
- Achieve Net Zero across our business operations by 2050 (Scope 1, 2, and 3) |
AD Construction Group is ISO 14001 certified, and we operate a fleet management plan to reduce our environmental impact from transport activities and resource deliveries. In addition, our fleet and associated operations are FORS Accredited. |
Our supply chain is vetted for their environmental practices as part of our PAS procurement processes and are monitored for compliance in line with our policies, accreditations, SLA's and KPI's. |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Strategic Report |
for the year ended 30 June 2023 |
AD has made a significant investment into developing the existing head office alongside the new adjoining building which will incorporate the following carbon reduction methods: |
- A large thin film solar array on the entire flat roof area of the building. |
- The installation of 20 EV charging points, servicing both our staff and working stakeholders. |
- Energy efficiency works to the building including the removal of Gas dependent heating systems. |
- Low energy lighting systems. |
- Installation of enhanced insultation and energy efficient windows. |
On behalf of the board: |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
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. |
Principal activity |
The principal activity of the company in the year under review was that of building maintenance, refurbishment and decoration for public bodies and the commercial sector. |
Dividends |
No dividends will be distributed for the year ended 30 June 2023. |
Directors |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
Streamlined energy and carbon reporting |
Type | Consumed kwh | Emissions (Metric tonnes C02e) |
Scope 1 emissions from gas, transport and fuel use | 2,227,338 | 471 |
Scope 2 emissions from electricity use | 66,784 | 14 |
Energy Intensity Ratio - emissions per employee in metric tonnes CO2e for the year ended 30 June 2023: |
Total emissions (metric tonnes C02e) | 485 |
Average number of employees | 166 |
Emissions per employee (metric tonnes C02e) | 2.92 |
We have now had our paperless system and cloud-based systems fully up and running for the past two years. This is producing benefits to the business in terms of travel time to and from the office, reduced hard documents, less physical filing provisions. We can also see a marked reduction in our energy usage as we encourage more away from office working and increased use of solar related energy. We are committed to achieving 50% reduction in our overall carbon emissions by 2035 and achieve net zero by 2050. |
We expect these energy saving measures to continue to impact positively on our annual statistics, as we move into 2024. |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Report of the Directors |
for the year ended 30 June 2023 |
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; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | 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. |
Auditors |
The audit business of Haines Watts was acquired by Cooper Parry Group Limited on 14 November 2023. Haines Watts has resigned as auditor and Cooper Parry Group Limited has been appointed in its place. |
On behalf of the board: |
Report of the Independent Auditors to the Members of |
Architectural Decorators Limited |
Opinion |
We have audited the financial statements of Architectural Decorators Limited (the 'company') for the year ended 30 June 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 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. |
Report of the Independent Auditors to the Members of |
Architectural Decorators 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 Statement of Directors' Responsibilities set out on page nine, 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 |
Architectural Decorators 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. |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. |
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. |
During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. |
Our procedures in relation to fraud, included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates and challenged the assumptions and judgements made by management in its significant accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests included agreeing the financial statement disclosures to underlying supporting documentation. |
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 |
Architectural Decorators 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 |
Statutory Auditor |
Juniper House |
Warley Hill Business Park |
The Drive |
Brentwood |
Essex |
CM13 3BE |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Statement of Comprehensive |
Income |
for the year ended 30 June 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 4 |
Cost of sales | ( | ) | ( | ) |
Gross profit |
Administrative expenses | ( | ) | ( | ) |
456,774 | 492,705 |
Other operating income |
Operating profit and |
Profit before taxation |
Tax on profit | 8 | ( | ) | ( | ) |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year | 408,985 | 363,144 |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Balance Sheet |
30 June 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 9 |
Current assets |
Debtors | 10 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 11 |
Net current assets |
Total assets less current liabilities |
Provisions for liabilities | 13 |
Net assets | 12,012,382 | 11,603,397 |
Capital and reserves |
Called up share capital | 14 | 7,000 | 7,000 |
Capital redemption reserve | 15 | 5,500 | 5,500 |
Retained earnings | 15 | 11,999,882 | 11,590,897 |
Shareholders' funds | 12,012,382 | 11,603,397 |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Statement of Changes in Equity |
for the year ended 30 June 2023 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 July 2021 | 7,000 | 11,227,753 | 5,500 | 11,240,253 |
Changes in equity |
Total comprehensive income | - | 363,144 | - | 363,144 |
Balance at 30 June 2022 | 7,000 | 11,590,897 | 5,500 | 11,603,397 |
Changes in equity |
Total comprehensive income | - | 408,985 | - | 408,985 |
Balance at 30 June 2023 | 7,000 | 11,999,882 | 5,500 | 12,012,382 |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Notes to the Financial Statements |
for the year ended 30 June 2023 |
1. | Statutory information |
Architectural Decorators 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 |
Going concern |
The Directors have identified no material uncertainties that cast significant doubt about the ability of the company to continue as a going concern. Based on the current resources available and the measures undertaken so far to mitigate the current adverse conditions, the Directors have concluded that they can continue to adopt the going concern basis in preparing the annual report and accounts. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of Section 7 Statement of Cash Flows. |
Key source of estimation, uncertainty and judgement |
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period. The area where significant judgement is required in these financial statements is considered to be amounts recoverable on long term contracts, as estimation of the stage of completion is relied upon to estimate revenue. Please refer to the turnover accounting policy further down for more detail. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows: |
Rendering of services |
When the outcome of a transaction can be estimated reliably, turnover from services is recognised by reference to the stage of completion at the balance sheet date. |
Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable. |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Notes to the Financial Statements - continued |
for the year ended 30 June 2023 |
3. | Accounting policies - continued |
Construction contracts |
When the outcome of a construction contract can be estimated reliably, contract costs and turnover are recognised by reference to the stage of completion at the balance sheet date. |
Where the outcome cannot be measured reliably, contract costs are recognised as an expense in the period in which they are incurred and contract turnover is recognised to the extent of costs incurred that it is probable will be recoverable. |
When it is probable that contract costs will exceed the total contract turnover, the expected loss is recognised as an expense immediately, with a corresponding provision. |
Amounts recoverable on contracts |
Amounts recoverable on contracts are included at the cost of work done, together with a prudent estimate of attributable profit. |
Deferred income |
Deferred income relates to income received in advance for work not started yet. |
Tangible fixed assets |
Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
Improvements to property | - 25% on reducing balance |
Plant and machinery | - 25% on reducing balance |
Fixtures and fittings | - 25% on reducing balance |
Motor vehicles | - 25% on reducing balance |
Computer equipment | - 25% on reducing balance |
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the profit or loss. |
Impairment of fixed assets |
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment or loss. If any such indicators exists, the recoverable amount of the asset is estimated in order to determine the extend of the impairment loss (if any). |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Notes to the Financial Statements - continued |
for the year ended 30 June 2023 |
3. | Accounting policies - continued |
Financial instruments |
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument. |
Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due. |
Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank which are an integral part of the company's cash management. |
Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. |
An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. |
Impairment of financial assets |
Financial assets are assessed for indicators of impairment at each reporting end date. |
Financial assets are impaired where there is objective evidence that, as a results of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective rate. The impairment loss is recognised in profit or loss. |
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 tax |
Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. 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. |
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset. |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Notes to the Financial Statements - continued |
for the year ended 30 June 2023 |
3. | Accounting policies - continued |
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. |
4. | Turnover |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
All turnover for the current and prior year was received from within the UK. |
5. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management and administration | 61 | 61 |
Sales and others | 105 | 108 |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Notes to the Financial Statements - continued |
for the year ended 30 June 2023 |
6. | Directors' emoluments |
2023 | 2022 |
£ | £ |
Directors' remuneration | 315,117 | 373,322 |
Directors' pension contribution to money purchase schemes | 10,039 | 10,039 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 190,688 | 240,690 |
Pension contribution to money purchase schemes | 3,522 | 3,522 |
Other than the directors, no other members of staff are considered to be key management. |
7. | Operating profit |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( | ) | ( | ) |
Auditors' remuneration |
Auditors' remuneration for non audit work |
8. | 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 |
Deferred tax | ( | ) |
Tax on profit |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Notes to the Financial Statements - continued |
for the year ended 30 June 2023 |
8. | 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 |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( | ) | ( | ) |
Capital allowances in excess of depreciation | - | ( | ) |
Depreciation in excess of capital allowances | - |
Deferred tax | (44,929 | ) | 50,282 |
Change in tax rate | 24,311 | - |
Total tax charge | 137,385 | 151,542 |
The corporation tax rate increased from 19% to 25% from 1 April 2023 and hence the tax charge has been calculated accordingly. |
9. | Tangible fixed assets |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
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 |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Notes to the Financial Statements - continued |
for the year ended 30 June 2023 |
9. | Tangible fixed assets - continued |
Motor | Computer |
vehicles | equipment | 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 |
10. | Debtors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts recoverable on contracts |
Other debtors |
Directors current account | 59,079 | 58,956 |
Prepayments | 152,612 | 50,864 |
Tax |
11. | Creditors: amounts falling due within one year |
2023 | 2022 |
£ | £ |
Trade creditors |
Social security and other taxes |
VAT | 1,154,896 | 1,190,671 |
Accruals and deferred income | 3,769,103 | 2,987,056 |
Other creditors | 282,587 | 198,205 |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Notes to the Financial Statements - continued |
for the year ended 30 June 2023 |
12. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2023 | 2022 |
£ | £ |
Within one year |
13. | Provisions for liabilities |
2023 | 2022 |
£ | £ |
Deferred tax | 113,478 | 158,407 |
Deferred |
tax |
£ |
Balance at 1 July 2022 |
Credit to Statement of Comprehensive Income during year | ( | ) |
Balance at 30 June 2023 |
The provision for deferred tax liability relates to timing differences on certain capital items. Even though these provisions are required under FRS 102, the directors are of the opinion that no liability will crystalise in the foreseeable future. |
14. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
6,000 | Ordinary | £1 | 6,000 | 6,000 |
500 | Ordinary A shares | £1 | 500 | 500 |
500 | Ordinary B shares | £1 | 500 | 500 |
7,000 | 7,000 |
15. | Reserves |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 July 2022 | 5,500 |
Profit for the year |
At 30 June 2023 | 5,500 | 12,005,382 |
ARCHITECTURAL DECORATORS LIMITED (REGISTERED NUMBER: 00386730) |
Notes to the Financial Statements - continued |
for the year ended 30 June 2023 |
16. | Pension commitments |
The company operates defined contributory pension schemes. The amount of pension charged to the profit and loss account for the year was £131,389 (2022: £216,725). |
17. | Ultimate parent company |
The AD Construction Group Limited is the parent of the smallest and largest group into which the results and financial position of this company are consolidated. Copies of the financial statement of the AD Construction Group Limited are available to the public and may be obtained from companies House, Crown Way, Maindy, Cardiff, CF14 3UZ. |
18. | Directors' advances, credits and guarantees |
Included in debtors is an amount of £59,079 (2022: £57,800) due to the company from directors. During the year, interest on the overdrawn loan account has been charged £1,156 (2022: 1,156). These balances are repayable on demand. |
19. | Related party disclosures |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
2023 | 2022 |
£ | £ |
Purchases with connected company |
Services with connected company | 4,318,340 | 3,500,000 |
Amount due from related party |
Amount due to connected company |
20. | Ultimate controlling party |
The ultimate controlling party is Mr S W Doyle by virtue of his majority shareholding in the parent company. The AD Construction Group Limited, a company registered in England and Wales. |