REGISTERED NUMBER: 13484865 (England and Wales) |
Evans Electrical Holdings Limited |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 October 2023 |
REGISTERED NUMBER: 13484865 (England and Wales) |
Evans Electrical Holdings Limited |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 31 October 2023 |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Contents of the Consolidated Financial Statements |
for the Year Ended 31 October 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Consolidated Statement of Comprehensive Income | 7 |
Consolidated Balance Sheet | 8 |
Company Balance Sheet | 9 |
Consolidated Statement of Changes in Equity | 10 |
Company Statement of Changes in Equity | 11 |
Consolidated Cash Flow Statement | 12 |
Notes to the Consolidated Cash Flow Statement | 13 |
Notes to the Consolidated Financial Statements | 14 |
Evans Electrical Holdings Limited |
Company Information |
for the Year Ended 31 October 2023 |
Directors: |
Registered office: |
Registered number: |
Senior statutory auditor: | Victoria Carter |
Auditors: |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Group Strategic Report |
for the Year Ended 31 October 2023 |
The directors present their strategic report of the company and the group for the year ended 31 October 2023. |
Review of business |
Turnover has decreased from £14,939,766 to £11,534,734 in a period of consolidation. The group acquired Innovative Fire & Security Limited in the period ended 31 October 2023. |
The group's overall performed well during the year and in a sometimes difficult market place within which to operate. Gross profit margins have increased within the year and the group has managed to maintain its operational structure, achieving a profit before tax of £988,681 (2022: £1,310,472). |
The net assets of the business totalled £2,146,740 (2022: £1,480,053) representing the desire of management to maintain reserves to better equip the group for the future. |
Principal risks and uncertainties |
The business' principal financial instruments comprise bank balances, trade debtors and trade creditors to the business. The main purpose of these instruments is to finance the business' operations. |
In respect of bank balances, the liquidity risk is managed by the group maintaining tight controls over the cash levels held within the business. Directors and management closely monitor cash flows to ensure that the group is able to meet its future obligations. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. |
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors. |
Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. |
On behalf of the board: |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Report of the Directors |
for the Year Ended 31 October 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 31 October 2023. |
Principal activity |
The principal activity of the group in the year under review was that of electrical installation and maintenance contractors. |
Dividends |
The total distribution of dividends for the year ended 31 October 2023 will be £ 102,313 . |
Directors |
The directors shown below have held office during the whole of the period from 1 November 2022 to the date of this report. |
Statement of directors' responsibilities |
The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
Auditors |
The auditors, Haines Watts Wales LLP, Statutory Auditors, 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 |
Evans Electrical Holdings Limited |
Opinion |
We have audited the financial statements of Evans Electrical Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 October 2023 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 |
Evans Electrical Holdings Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent 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: |
Our planning procedures identify the legal and regulatory frameworks applicable to the operations and financial statements of the group. These are reviewed internally with the audit team including relevant industry experience and expectations as well as externally with the client management. The key laws and regulations we considered in this context were the UK Companies Act 2006, UK GAAP (FRS 102) and relevant tax legislation. |
Once identified, we assess the risks of material misstatements in relation to the laws and regulations, irregularities, including fraud and adjust our testing accordingly. Our audit procedures include: |
- | Discussing with Directors and management which areas of the business they believe to be more susceptible to fraud, and whether they have any knowledge or suspicion of fraudulent activities; |
- | Obtaining an understanding of the key controls put in place by the group to address risks identified, assessing the effectiveness of those and discussing how these are maintained and monitored internally; |
- | Assessing the risk of management override and review and testing of journal entries made into the accounting system; |
- | Challenging assumptions and judgements made by the group in relation to the significant accounting estimates employed in the preparation of the financial statements; |
- | Discussing with Directors and Management the legal and regulatory obligations of the business and whether they have any knowledge or suspicion of non compliance. |
Despite the audit being planned and conducted in accordance with ISAs (UK) there remains an unavoidable risk that material misstatements in the financial statements may not be detected owing to inherent limitations of the audit, and that by their very nature, any such instances of fraud or irregularities likely involve collusion, forgery, intentional misrepresentation, or the override of internal controls. |
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 |
Evans Electrical Holdings 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 |
7 Neptune Court |
Vanguard Way |
Cardiff |
CF24 5PJ |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Consolidated |
Statement of Comprehensive |
Income |
for the Year Ended 31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
Turnover | 11,534,734 | 14,939,766 |
Cost of sales | (9,526,198 | ) | (13,220,156 | ) |
Gross profit | 2,008,536 | 1,719,610 |
Distribution costs | (25,475 | ) | (631 | ) |
Administrative expenses | (1,023,799 | ) | (394,150 | ) |
959,262 | 1,324,829 |
Other operating income | 26,086 | - |
Operating profit | 985,348 | 1,324,829 |
Interest receivable and similar income | 18,158 | 830 |
1,003,506 | 1,325,659 |
Interest payable and similar expenses | 5 | (14,825 | ) | (15,190 | ) |
Profit before taxation | 6 | 988,681 | 1,310,469 |
Tax on profit | 7 | (219,678 | ) | (52,490 | ) |
Profit for the financial year |
Other comprehensive income | - | - |
Total comprehensive income for the year | 769,003 | 1,257,979 |
Profit attributable to: |
Owners of the parent | 745,289 | 1,257,979 |
Non-controlling interests | 23,714 | - |
769,003 | 1,257,979 |
Total comprehensive income attributable to: |
Owners of the parent | 769,003 | 1,257,979 |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Consolidated Balance Sheet |
31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
Fixed assets |
Intangible assets | 10 | (174,030 | ) | (127,899 | ) |
Tangible assets | 11 | 450,715 | 61,572 |
Investments | 12 | - | - |
276,685 | (66,327 | ) |
Current assets |
Stocks | 13 | 26,596 | - |
Debtors | 14 | 3,291,238 | 2,675,292 |
Cash at bank and in hand | 1,494,346 | 3,000,401 |
4,812,180 | 5,675,693 |
Creditors |
Amounts falling due within one year | 15 | (2,282,044 | ) | (3,163,469 | ) |
Net current assets | 2,530,136 | 2,512,224 |
Total assets less current liabilities | 2,806,821 | 2,445,897 |
Creditors |
Amounts falling due after more than one year | 16 | (602,351 | ) | (965,847 | ) |
Provisions for liabilities | 19 | (57,730 | ) | - |
Net assets | 2,146,740 | 1,480,050 |
Capital and reserves |
Called up share capital | 20 | 77,890 | 77,890 |
Retained earnings | 21 | 1,987,021 | 1,402,160 |
Shareholders' funds | 2,064,911 | 1,480,050 |
Non-controlling interests | 22 | 81,829 | - |
Total equity | 2,146,740 | 1,480,050 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 July 2024 and were signed on its behalf by: |
O Evans - Director |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Company Balance Sheet |
31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
Fixed assets |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
Current assets |
Cash at bank |
Creditors |
Amounts falling due within one year | 15 | ( |
) | ( |
) |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year | 16 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 20 |
Retained earnings | 21 |
Shareholders' funds |
Company's profit for the financial year | 469,768 | 293,554 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Consolidated Statement of Changes in Equity |
for the Year Ended 31 October 2023 |
Called up |
share | Retained | Non-controlling | Total |
capital | earnings | Total | interests | equity |
£ | £ | £ | £ | £ |
Balance at 1 November 2021 | 77,890 | 230,893 | 308,783 | - | 308,783 |
Changes in equity |
Dividends | - | (86,712 | ) | (86,712 | ) | - | (86,712 | ) |
Total comprehensive income | - | 1,257,979 | 1,257,979 | - | 1,257,979 |
Balance at 31 October 2022 | 77,890 | 1,402,160 | 1,480,050 | - | 1,480,050 |
Changes in equity |
Dividends | - | (102,313 | ) | (102,313 | ) | - | (102,313 | ) |
Total comprehensive income | - | 745,289 | 745,289 | - | 745,289 |
77,890 | 2,045,136 | 2,123,026 | - | 2,123,026 |
Non-controlling interest arising on business combination |
- |
- |
- |
23,714 |
23,714 |
Balance at 31 October 2023 | 77,890 | 2,045,136 | 2,123,026 | 23,714 | 2,146,740 |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Company Statement of Changes in Equity |
for the Year Ended 31 October 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 November 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 October 2023 |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Consolidated Cash Flow Statement |
for the Year Ended 31 October 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | (617,460 | ) | 1,264,818 |
Interest paid | (9,166 | ) | (3,360 | ) |
Interest element of hire purchase payments paid |
(5,659 |
) |
(11,830 |
) |
Tax paid | (52,523 | ) | 34 |
Net cash from operating activities | (684,808 | ) | 1,249,662 |
Cash flows from investing activities |
Purchase of intangible fixed assets | 112,460 | - |
Purchase of tangible fixed assets | (450,963 | ) | (2,940 | ) |
Sale of tangible fixed assets | 8,111 | - |
Interest received | 18,158 | 830 |
Net cash from investing activities | (312,234 | ) | (2,110 | ) |
Cash flows from financing activities |
Loan repayments in year | (398,493 | ) | (16,667 | ) |
Capital repayments in year | (8,207 | ) | (15,127 | ) |
Equity dividends paid | (102,313 | ) | (86,712 | ) |
Net cash from financing activities | (509,013 | ) | (118,506 | ) |
(Decrease)/increase in cash and cash equivalents | (1,506,055 | ) | 1,129,046 |
Cash and cash equivalents at beginning of year |
2 |
3,000,401 |
1,871,355 |
Cash and cash equivalents at end of year | 2 | 1,494,346 | 3,000,401 |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 31 October 2023 |
1. | Reconciliation of profit before taxation to cash generated from operations |
2023 | 2022 |
£ | £ |
Profit before taxation | 988,681 | 1,310,469 |
Depreciation charges | (12,618 | ) | (260,288 | ) |
Finance costs | 14,825 | 15,190 |
Finance income | (18,158 | ) | (830 | ) |
972,730 | 1,064,541 |
Increase in stocks | (26,596 | ) | - |
Increase in trade and other debtors | (622,818 | ) | (660,821 | ) |
(Decrease)/increase in trade and other creditors | (940,776 | ) | 861,098 |
Cash generated from operations | (617,460 | ) | 1,264,818 |
2. | Cash and cash equivalents |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 31 October 2023 |
31.10.23 | 1.11.22 |
£ | £ |
Cash and cash equivalents | 1,494,346 | 3,000,401 |
Year ended 31 October 2022 |
31.10.22 | 1.11.21 |
£ | £ |
Cash and cash equivalents | 3,000,401 | 1,871,355 |
3. | Analysis of changes in net funds |
At 1.11.22 | Cash flow | At 31.10.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 3,000,401 | (1,506,055 | ) | 1,494,346 |
3,000,401 | (1,506,055 | ) | 1,494,346 |
Debt |
Finance leases | (8,207 | ) | 8,207 | - |
Debts falling due within 1 year | (50,000 | ) | 39,947 | (10,053 | ) |
Debts falling due after 1 year | (183,333 | ) | 163,496 | (19,837 | ) |
(241,540 | ) | 211,650 | (29,890 | ) |
Total | 2,758,861 | (1,294,405 | ) | 1,464,456 |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Notes to the Consolidated Financial Statements |
for the Year Ended 31 October 2023 |
1. | Statutory information |
Evans Electrical Holdings Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | Accounting policies |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 October 2023. No profit and loss account is presented for the company as permitted by Section 408 of the Companies Act 2006. |
Subsidiary undertakings are included using the acquisitions method of accounting. Under this method the group profit and loss account and statement of cashflows include the results and cashflows of subsidiaries from the date of acquisition and to the date of sale outside the group in the case of disposals of subsidiaries. The purchase consideration has been allocated to the assets and liabilities on the basis of fair value at the date of acquisition. |
Going concern |
At the time of approving the financial statements, the director has reasonable expectation that the group has adequate resources to continue trading for the foreseeable future. In particular, the director reviewed the obligations under the group's finance documents and is satisfied that the group will continue to meet these obligations. Therefore the director continues to adopt the going concern basis of accounting in preparing these financial statements. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Revenue from the rendering of services is recognised by reference to the stage of completion. Stage of completion is based on surveys that estimate the value of work performed. Where the contract outcome cannot be measured reliably, revenue is recognised only to the extent of the expenses recognised that are recoverable. |
Revenue generated from maintenance contracts is recognised in the month to which it relates. |
Goodwill |
Negative goodwill is recognised on the consolidated balance sheet as a result of the purchase of the share capital of its subsidiary companies at a bargain price. Negative goodwill will be released to the income statement as and when the fair value of non monetary assets are expected to be recovered. Any amounts in excess of the fair value of non monetary assets are recognised in the period in which the benefit is expected to arise. It is anticipated that the benefit will arise over a period of no greater than 12 months from the date of the acquisition of its subsidiary companies. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
2. | Accounting policies - continued |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Stocks |
Stock is valued at the lower of cost and estimated selling price less costs to complete and sell. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
2. | Accounting policies - continued |
Financial instruments |
The group has elected to apply the provisions of Section 11 'Basic Financial Instruments and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments. |
Financial instruments are recognised in the groups balance sheet when the group becomes party to the contractual provisions of the instrument. |
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
3. | Critical accounting judgements and key sources of estimation uncertainty |
In the application of the of the groups accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 considered to be relevant. Actual results may differ from these estimates. |
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period 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. |
Key sources of estimation uncertainty |
The estimates and assumptions which have a significant risk of causing material adjustment to the carrying amount of assets and liabilities are as follows: |
Impairment of debtors - The group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management consider factors including the current credit rating of the debtor, the aging profile of debtors and historical experience. |
4. | Employees and directors |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,919,901 | 2,546,660 |
Social security costs | 342,167 | 315,486 |
Other pension costs | 159,802 | 146,220 |
3,421,870 | 3,008,366 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Management | 3 | 3 |
Operational | 79 | 67 |
The average number of employees by undertakings that were proportionately consolidated during the year was 82 (2022 - 70 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 177,491 | 172,301 |
Compensation to director for loss of office | 10,000 | - |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
5. | Interest payable and similar expenses |
2023 | 2022 |
£ | £ |
Bank interest | 218 | - |
Bank loan interest | 8,948 | 3,360 |
Hire purchase | 5,659 | 11,830 |
14,825 | 15,190 |
6. | Profit before taxation |
The profit is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 103,846 | 137,260 |
Depreciation - owned assets | 50,363 | 12,562 |
Depreciation - assets on hire purchase contracts | 3,346 | 7,244 |
Auditors' remuneration | 3,165 | 3,165 |
7. | Taxation |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 219,678 | 52,490 |
Tax on profit | 219,678 | 52,490 |
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 | 988,681 | 1,310,469 |
Profit multiplied by the standard rate of corporation tax in the UK of 22.080 % (2022 - 19 %) |
218,301 |
248,989 |
Effects of: |
Expenses not deductible for tax purposes | 32,780 | 10,421 |
Capital allowances in excess of depreciation | (60,321 | ) | (52,695 | ) |
Utilisation of tax losses | (28,812 | ) | - |
R&D tax credits | - | (154,225 | ) |
Movement in deferred tax | 57,730 | - |
Total tax charge | 219,678 | 52,490 |
8. | Individual statement of comprehensive income |
As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements. |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
9. | Dividends |
2023 | 2022 |
£ | £ |
Ordinary A shares of £1 each |
Interim | 10,000 | 25,000 |
Ordinary B shares of £1 each |
Interim | 10,000 | 5,000 |
Ordinary C shares of £1 each |
Interim | 32,313 | 31,712 |
Ordinary D shares of £1 each |
Interim | 50,000 | 25,000 |
102,313 | 86,712 |
10. | Intangible fixed assets |
Group |
Goodwill |
£ |
Cost |
At 1 November 2022 | (432,117 | ) |
Additions | (112,460 | ) |
At 31 October 2023 | (544,577 | ) |
Amortisation |
At 1 November 2022 | (304,218 | ) |
Charge written back | (66,329 | ) |
At 31 October 2023 | (370,547 | ) |
Net book value |
At 31 October 2023 | (174,030 | ) |
At 31 October 2022 | (127,899 | ) |
Negative goodwill arises from the acquisition of the share capital of the groups subsidiaries at a bargain price. Goodwill is released to the income statement as and when the fair value of non monetary assets are expected to recovered. Any amounts in excess of the fair value of non monetary assets are recognised in the period in which the benefit is expected to arise. It is anticipated that the benefit will arise over a period of no greater than 12 months from the date of the acquisition of its subsidiary companies. |
The group has not recognised any positive goodwill within these financial statements. |
The company has no intangible assets. |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
11. | Tangible fixed assets |
Group |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
Cost |
At 1 November 2022 | 17,856 | - | 11,684 |
Additions | 69,676 | 53,310 | 20,948 |
Disposals | - | - | - |
At 31 October 2023 | 87,532 | 53,310 | 32,632 |
Depreciation |
At 1 November 2022 | 17,582 | - | 9,739 |
Charge for year | 1,306 | 10,662 | 538 |
At 31 October 2023 | 18,888 | 10,662 | 10,277 |
Net book value |
At 31 October 2023 | 68,644 | 42,648 | 22,355 |
At 31 October 2022 | 274 | - | 1,945 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Cost |
At 1 November 2022 | 212,173 | 71,308 | 313,021 |
Additions | 290,535 | 16,494 | 450,963 |
Disposals | (8,111 | ) | - | (8,111 | ) |
At 31 October 2023 | 494,597 | 87,802 | 755,873 |
Depreciation |
At 1 November 2022 | 164,851 | 59,277 | 251,449 |
Charge for year | 36,202 | 5,001 | 53,709 |
At 31 October 2023 | 201,053 | 64,278 | 305,158 |
Net book value |
At 31 October 2023 | 293,544 | 23,524 | 450,715 |
At 31 October 2022 | 47,322 | 12,031 | 61,572 |
The company has no tangible fixed assets. |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
11. | Tangible fixed assets - continued |
Group |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
Cost |
At 1 November 2022 | 45,223 |
Transfer to ownership | (45,223 | ) |
At 31 October 2023 | - |
Depreciation |
At 1 November 2022 | 37,547 |
Charge for year | 3,346 |
Transfer to ownership | (40,893 | ) |
At 31 October 2023 | - |
Net book value |
At 31 October 2023 | - |
At 31 October 2022 | 7,676 |
12. | Fixed asset investments |
Company |
Shares in |
group |
undertakings |
£ |
Cost |
At 1 November 2022 |
Additions |
At 31 October 2023 |
Net book value |
At 31 October 2023 |
At 31 October 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: England & Wales |
Nature of business: |
% |
Class of shares: | holding |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
12. | Fixed asset investments - continued |
Evans Electrical Limited |
Registered office: England & Wales |
Nature of business: Electrical installation and maintenance |
% |
Class of shares: | holding |
Ordinary | 100.00 |
13. | Stocks |
Group |
2023 | 2022 |
£ | £ |
Stocks | 16,596 | - |
Work-in-progress | 10,000 | - |
26,596 | - |
The Company has no stock or work-in-progress balances. |
14. | Debtors: amounts falling due within one year |
Group |
2023 | 2022 |
£ | £ |
Trade debtors | 1,359,457 | 592,181 |
Amounts recoverable on contract | 1,320,963 | 1,125,540 |
Other debtors | 537,884 | 800,424 |
VAT | 58,556 | 152,417 |
Prepayments | 14,378 | 4,730 |
3,291,238 | 2,675,292 |
The company has no debtor balances. |
15. | Creditors: amounts falling due within one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 10,053 | 50,000 |
Hire purchase contracts (see note 18) | - | 8,207 |
Trade creditors | 1,607,215 | 2,571,029 |
Tax | 161,949 | 52,524 |
Social security and other taxes | 153,434 | 135,040 |
Other creditors | 205,674 | 202,767 |
Accruals and deferred income | 143,719 | 143,902 |
2,282,044 | 3,163,469 |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
16. | Creditors: amounts falling due after more than one year |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 17) | 19,837 | 183,333 |
Other creditors | 582,514 | 782,514 |
602,351 | 965,847 |
17. | Loans |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 10,053 | 50,000 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 10,292 | 50,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 9,545 | 133,333 |
18. | Leasing agreements |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | - | 8,207 |
19. | Provisions for liabilities |
Group |
2023 | 2022 |
£ | £ |
Deferred tax | 57,730 | - |
Group |
Deferred |
tax |
£ |
Provided during year | 57,730 |
Balance at 31 October 2023 | 57,730 |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
20. | Called up share capital |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
Ordinary A | £1 | 51 | 51 |
Ordinary B | £1 | 24 | 24 |
Ordinary C | £1 | 13 | 13 |
Ordinary D | £1 | 12 | 12 |
77,690 | Preference | £1 | 77,690 | 77,690 |
77,890 | 77,890 |
21. | Reserves |
Group |
Retained |
earnings |
£ |
At 1 November 2022 | 1,344,045 |
Profit for the year | 745,289 |
Dividends | (102,313 | ) |
At 31 October 2023 | 1,987,021 |
Company |
Retained |
earnings |
£ |
At 1 November 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 October 2023 |
22. | Non-controlling interests |
profits relating to Minority Interest in Innovative Fire & Security Limited during the period were £23,714. |
During the period no dividends were paid to the minority interest. |
As at 31 October 2023 net assets in relation to Minority Interests were £81,829. |
23. | Ultimate parent company |
The Ultimate controlling party is Mr O Evans by virtue of his shareholding. |
24. | 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. |
Evans Electrical Holdings Limited (Registered number: 13484865) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 31 October 2023 |
24. | Related party disclosures - continued |
During the year the group paid rents of £22,000 (2022: £22,000) to Evans Property Services. |
Evans Property Services is an unincorporated business that is controlled by an immediate family member of a director. |