IRIS Accounts Production v24.1.0.578 09834891 Board of Directors 1.11.22 31.10.23 31.10.23 true false true true false false true false Ordinary 1.00000 iso4217:GBPiso4217:USDiso4217:EURxbrli:sharesxbrli:pureutr:tonnesutr:kWh098348912022-10-31098348912023-10-31098348912022-11-012023-10-31098348912021-10-31098348912021-11-012022-10-31098348912022-10-3109834891ns15:EnglandWales2022-11-012023-10-3109834891ns14:PoundSterling2022-11-012023-10-3109834891ns10:Director12022-11-012023-10-3109834891ns10:PrivateLimitedCompanyLtd2022-11-012023-10-3109834891ns10:FRS1022022-11-012023-10-3109834891ns10:Audited2022-11-012023-10-3109834891ns10:LargeMedium-sizedCompaniesRegimeForDirectorsReport2022-11-012023-10-3109834891ns10:LargeMedium-sizedCompaniesRegimeForAccounts2022-11-012023-10-3109834891ns10:FullAccounts2022-11-012023-10-3109834891ns10:OrdinaryShareClass12022-11-012023-10-3109834891ns10:Director22022-11-012023-10-3109834891ns10:Director32022-11-012023-10-3109834891ns10:RegisteredOffice2022-11-012023-10-3109834891ns5:CurrentFinancialInstruments2023-10-3109834891ns5:CurrentFinancialInstruments2022-10-3109834891ns5:Non-currentFinancialInstruments2023-10-3109834891ns5:Non-currentFinancialInstruments2022-10-3109834891ns5:ShareCapital2023-10-3109834891ns5:ShareCapital2022-10-3109834891ns5:RetainedEarningsAccumulatedLosses2023-10-3109834891ns5:RetainedEarningsAccumulatedLosses2022-10-3109834891ns5:ShareCapital2021-10-3109834891ns5:RetainedEarningsAccumulatedLosses2021-10-3109834891ns5:RetainedEarningsAccumulatedLosses2021-11-012022-10-3109834891ns5:RetainedEarningsAccumulatedLosses2022-11-012023-10-310983489142022-11-012023-10-310983489142021-11-012022-10-3109834891ns5:PlantMachinery2022-11-012023-10-3109834891ns5:FurnitureFittings2022-11-012023-10-3109834891ns5:MotorVehicles2022-11-012023-10-3109834891ns5:ComputerEquipment2022-11-012023-10-3109834891ns5:OwnedAssets2022-11-012023-10-3109834891ns5:OwnedAssets2021-11-012022-10-3109834891ns5:LeasedAssets2022-11-012023-10-3109834891ns5:LeasedAssets2021-11-012022-10-3109834891ns5:HirePurchaseContracts2022-11-012023-10-3109834891ns5:HirePurchaseContracts2021-11-012022-10-3109834891ns5:PlantMachinery2022-10-3109834891ns5:FurnitureFittings2022-10-3109834891ns5:MotorVehicles2022-10-3109834891ns5:ComputerEquipment2022-10-3109834891ns5:PlantMachinery2023-10-3109834891ns5:FurnitureFittings2023-10-3109834891ns5:MotorVehicles2023-10-3109834891ns5:ComputerEquipment2023-10-3109834891ns5:PlantMachinery2022-10-3109834891ns5:FurnitureFittings2022-10-3109834891ns5:MotorVehicles2022-10-3109834891ns5:ComputerEquipment2022-10-3109834891ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2022-10-3109834891ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2022-10-3109834891ns5:LeasedAssetsHeldAsLessee2022-10-3109834891ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2022-11-012023-10-3109834891ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2022-11-012023-10-3109834891ns5:LeasedAssetsHeldAsLessee2022-11-012023-10-3109834891ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2023-10-3109834891ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2023-10-3109834891ns5:LeasedAssetsHeldAsLessee2023-10-3109834891ns5:PlantMachineryns5:LeasedAssetsHeldAsLessee2022-10-3109834891ns5:MotorVehiclesns5:LeasedAssetsHeldAsLessee2022-10-3109834891ns5:LeasedAssetsHeldAsLessee2022-10-3109834891ns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-10-3109834891ns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-10-3109834891ns5:Non-currentFinancialInstruments2022-11-012023-10-3109834891ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2023-10-3109834891ns5:Non-currentFinancialInstrumentsns5:BetweenOneTwoYears2022-10-3109834891ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2023-10-3109834891ns5:HirePurchaseContractsns5:CurrentFinancialInstrumentsns5:WithinOneYear2022-10-3109834891ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2023-10-3109834891ns5:BetweenOneFiveYearsns5:HirePurchaseContracts2022-10-3109834891ns5:HirePurchaseContracts2023-10-3109834891ns5:HirePurchaseContracts2022-10-3109834891ns5:WithinOneYear2023-10-3109834891ns5:WithinOneYear2022-10-3109834891ns5:BetweenOneFiveYears2023-10-3109834891ns5:BetweenOneFiveYears2022-10-3109834891ns5:AllPeriods2023-10-3109834891ns5:AllPeriods2022-10-3109834891ns5:Secured2023-10-3109834891ns5:Secured2022-10-3109834891ns5:DeferredTaxation2022-10-3109834891ns5:DeferredTaxation2023-10-3109834891ns10:OrdinaryShareClass12023-10-3109834891ns5:RetainedEarningsAccumulatedLosses2022-10-31
REGISTERED NUMBER: 09834891 (England and Wales)














Strategic Report,

Report of the Directors and

Audited Financial Statements

for the Year Ended 31 October 2023

for

ZTL CONTRACTING LTD

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)






Contents of the Financial Statements
for the Year Ended 31 October 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Profit and Loss Account 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 16


ZTL CONTRACTING LTD

Company Information
for the Year Ended 31 October 2023







Directors: C R Brown
D J Hughes
W M Morris


Registered office: Hughes House
Cargo Fleet Road
Middlesbrough
TS3 6AG


Registered number: 09834891 (England and Wales)


Senior statutory auditor: Lee Harris BSc (Hons) FCCA


Auditors: Mitchell Gordon LLP
Accountants and Statutory Auditor
43 Coniscliffe Road
Darlington
Co. Durham
DL3 7EH


Accountants: JBC Accountants Limited
Chartered Accountants
3B Lockheed Court
Preston Farm
Stockton on Tees
TS18 3SH

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Strategic Report
for the Year Ended 31 October 2023

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

ZTL Contracting Ltd are a family-owned business specialising in Earthworks, Remediation and Ground Improvement in the construction, housing, energy, & logistics sectors. The company operates Nationally across the UK serviced by offices located in Teesside, Yorkshire and Derbyshire.

The company's current portfolio of clients comprises of a diverse mixture of Tier 1 and Tier 2 commercial contractors, private developers, national housebuilders and local authorities. The steady and consistent flow of repeat business, assisted by a small number of targeted new clients, has helped support controlled, organic growth over the last eight years giving the business an ideal platform to strengthen the balance sheet, deliver stable profits and generate a sustainable cash reserve.

Review of business
The company strategic goals were produced for 2022 to 2025 with the expectation of difficult trading conditions post the COVID pandemic. However, company performance has generally exceeded these targets, with market demand being extremely strong.

The board of directors are pleased to be able to demonstrate a year of significant growth which has exceeded our strategic target of achieving 10% increase in turnover against FY2021/22 accounts (£19.5m). Turnover surpassed £27.5m in the period which equates to a 41% growth on the preceding year.

The growth in the period can be attributed to 3-key areas; new key relationships with Midlands based Tier 1 Contractors associated with the development of large-scale logistics warehousing, Private Developers and Local Authorities delivering capital works projects. These key areas of growth helped the company to a strategic goal in rebalancing the turnover split between Commercial, Private Developers and Capital Works Schemes.

The pre-tax profitability of the company for 2022/23 was 15.2%. We credit this to the development of commercial strategies which are implemented from the outset of a new project and maintained throughout. ZTL are in the enviable position of not having a single month, throughout the year, post a loss.

The business is mid-way through a strategy to take the company through to 2025. As part of the plan the opportunity for growth has been recognised, with revised turnover targets of 10% increase year-on-year being set. The strategy for achieving these targets relate to the opening of a new regional Midlands office with to allow for an increased geographical working area, and by increasing our turnover within capital works schemes. In addition, the company will continue to implement the long-term strategy of selective tendering with trusted clients, at sustainable margins.

The company continues to invest heavily in 3-areas; plant, technology and training. The value of fixed assets is now in excess of £9-million, an increase of over £4-million in the period. It remains a strategic goal to invest in market-leading plant and equipment to ensure all works are carried out as safely and efficiently as possible, with our workforce's wellbeing the driving factor. The company has invested heavily in the latest IT hard and software for its staff, ensuring the business can continue to 'punch above its weight' in terms of competence and capability. This investment includes the production of tablet-based bespoke quality assurance document management app, which should provide the business with greater transparency in terms of quality control. Finally, ZTL have invested heavily in staff training with a clear emphasis on investing in youth. Given the well-publicised skill shortage in the construction industry, ZTL see education and training as an absolute necessity in terms of preparing the company for the future, whilst achieving one of our strategic targets of recruiting, retaining, and investing in the best people in the industry.

The cash-position of the business continues to improve through operating profits, careful overhead cost control and prompt cash recovery. The company remains committed to paying its supply chain partners within terms.

Future developments
The board of directors look forward to FY2023/24 with cautious optimism. Continued high inflation coupled with the high cost of borrowing is affecting the construction sector along with the rest of the economy. However, the board of directors are optimistic that with ZTL's diverse revenue streams and careful commercial controls, the business is well placed to see out the challenging environment which is likely to last until the end of 2024.


ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Strategic Report
for the Year Ended 31 October 2023

Principal risks and uncertainties
The principal activities of the company continue to be Earthworks, Remediation and Ground Improvement.

The board of directors continue to plan for the possibility of potential recession and as such have formulated a 4-part strategy to best prepare the business. The strategy is as follows:

1. Diversify revenue streams with the introduction of Local Authorities and capital works projects in lieu of
speculative developers.
2. Continue to carefully select clients and projects based on risk to the business.
3. Target a sustainable margin within all successful tenders.
4. Insure, where possible, all clients for the possibility of insolvency. Where this is not possible project bank accounts or advanced payment bonds are to be utilised.

Whilst the board and senior management team remains consistent and stable, and the company has increased its headcount with the appointment of multiple management trainees and apprentices. These introductions are in keeping with the company's strategic target of investing in youth. Staff turnover continues to be very low, and the commitment of the workforce remains one of the most positive aspects of the business.

Financial key performance indicators
Client Satisfaction
Client satisfaction is monitored to ensure our high standards are met and repeat business is secured. Regular dialogue is maintained at Director, middle management and site level.

Profitability
Cost and value are compared on a monthly, site-specific basis to inform monthly management accounts and long-term forecasts. Each project is reviewed monthly by the management team with the site team and exception reports are generated where required.

Cashflow
13-week rolling cashflow forecasts are updated and monitored daily.

Health, Safety & Environmental
Each site is independently audited on a rolling six-week basis. All reports are reviewed at board level each month. ZTL continue to invest heavily on the latest, most advanced health & safety plant and equipment with the aim of providing our skilled tradesman the safest tools to complete their roles.

On behalf of the board:





D J Hughes - Director


31 July 2024

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Report of the Directors
for the Year Ended 31 October 2023

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

Principal activity
The principal activity of the company in the year under review was that of an earthworks and ground improvement contractor.

Dividends
No dividends will be distributed for the year ended 31 October 2023.

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

C R Brown
D J Hughes

Other changes in directors holding office are as follows:

W M Morris was appointed as a director after 31 October 2023 but prior to the date of this report.

Statement of directors' responsibilities
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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.

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Report of the Directors
for the Year Ended 31 October 2023


Auditors
The auditors, Mitchell Gordon LLP, will be proposed for re-appointment at the forthcoming Annual General Meeting.

On behalf of the board:



D J Hughes - Director


31 July 2024

Report of the Independent Auditors to the Members of
ZTL Contracting Ltd

Opinion
We have audited the financial statements of ZTL Contracting Ltd (the 'company') for the year ended 31 October 2023 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 October 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
ZTL Contracting Ltd


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 four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Report of the Independent Auditors to the Members of
ZTL Contracting Ltd


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 approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
- the engagement partner ensured that the engagement team collectively had the appropriate competence,
capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other
management, and from our commercial knowledge and experience of the sectors in which the company operates;
- we focused on specific laws and regulations which we considered may have a direct material effect on the
financial statements or the operations of the company, including the Companies Act 2006, taxation legislation,
data protection compliance, anti-bribery, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of
management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert
to instances of non-compliance throughout the audit.
These procedures did not identify any potentially material actual or suspected non-compliance.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge
of actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and
regulations.

To address the risk of fraud through management bias and override of controls, we:
- performed analytical procedures to identify any unusual or unexpected relationships;
- reviewed material journal entries to identify unusual transactions or posting by unusual users;
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of
potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC and the company's legal advisors.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it.

In addition, as with any audit, there remains a higher risk of non-detection of fraud, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance of fraud and cannot be expected to detect non-compliance with all laws & regulations.

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

Report of the Independent Auditors to the Members of
ZTL Contracting Ltd


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.




Lee Harris BSc (Hons) FCCA (Senior Statutory Auditor)
for and on behalf of Mitchell Gordon LLP
Accountants and Statutory Auditor
43 Coniscliffe Road
Darlington
Co. Durham
DL3 7EH

31 July 2024

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Profit and Loss Account
for the Year Ended 31 October 2023

31/10/23 31/10/22
Notes £    £   

Turnover 3 27,555,804 19,516,557

Cost of sales 22,478,162 15,532,435
Gross profit 5,077,642 3,984,122

Administrative expenses 746,081 498,315
Operating profit 5 4,331,561 3,485,807

Interest receivable and similar income 49,848 173
4,381,409 3,485,980

Interest payable and similar expenses 6 182,487 63,294
Profit before taxation 4,198,922 3,422,686

Tax on profit 7 821,753 421,805
Profit for the financial year 3,377,169 3,000,881

Other comprehensive income - -
Total comprehensive income for the year 3,377,169 3,000,881

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Balance Sheet
31 October 2023

31/10/23 31/10/22
Notes £    £    £    £   
Fixed assets
Tangible assets 8 9,331,096 4,544,008

Current assets
Stocks 9 13,203 2,000
Debtors 10 9,537,725 7,471,646
Cash at bank 2,035,898 1,768,185
11,586,826 9,241,831
Creditors
Amounts falling due within one year 11 6,631,506 4,687,286
Net current assets 4,955,320 4,554,545
Total assets less current liabilities 14,286,416 9,098,553

Creditors
Amounts falling due after more than one
year

12

(2,766,571

)

(1,950,141

)

Provisions for liabilities 16 (2,112,310 ) (1,118,046 )
Net assets 9,407,535 6,030,366

Capital and reserves
Called up share capital 17 100 100
Retained earnings 18 9,407,435 6,030,266
Shareholders' funds 9,407,535 6,030,366

The financial statements were approved by the Board of Directors and authorised for issue on 31 July 2024 and were signed on its behalf by:





D J Hughes - Director


ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

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 100 3,029,385 3,029,485

Changes in equity
Total comprehensive income - 3,000,881 3,000,881
Balance at 31 October 2022 100 6,030,266 6,030,366

Changes in equity
Total comprehensive income - 3,377,169 3,377,169
Balance at 31 October 2023 100 9,407,435 9,407,535

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Cash Flow Statement
for the Year Ended 31 October 2023

31/10/23 31/10/22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 5,130,154 3,788,268
Interest paid (17,504 ) (9,374 )
Interest element of hire purchase payments
paid

(164,983

)

(53,920

)
Tax paid (272,000 ) 159,990
R&D taxation refund 133,936 -
Net cash from operating activities 4,809,603 3,884,964

Cash flows from investing activities
Purchase of tangible fixed assets (1,199,350 ) (66,375 )
Sale of tangible fixed assets 1,084,500 390,865
Interest received 47,758 173
Net cash from investing activities (67,092 ) 324,663

Cash flows from financing activities
Bank loan repayments in year (100,000 ) (100,000 )
Loans to associated companies (485,373 ) (1,953,000 )
Loans repayments received in year - 26,667
Capital repayments in year (3,889,425 ) (1,282,868 )
Net cash from financing activities (4,474,798 ) (3,309,201 )

Increase in cash and cash equivalents 267,713 900,426
Cash and cash equivalents at beginning of
year

2

1,768,185

867,759

Cash and cash equivalents at end of year 2 2,035,898 1,768,185

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Notes to the Cash Flow Statement
for the Year Ended 31 October 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
31/10/23 31/10/22
£    £   
Profit before taxation 4,198,922 3,422,686
Depreciation charges 1,099,156 591,299
(Profit)/loss on disposal of fixed assets (51,341 ) 44,498
Finance costs 182,487 63,294
Finance income (49,848 ) (173 )
5,379,376 4,121,604
Increase in stocks (11,203 ) -
Increase in trade and other debtors (1,564,069 ) (1,152,366 )
Increase in trade and other creditors 1,326,050 819,030
Cash generated from operations 5,130,154 3,788,268

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 2,035,898 1,768,185
Year ended 31 October 2022
31/10/22 1/11/21
£    £   
Cash and cash equivalents 1,768,185 867,759


ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Notes to the Cash Flow Statement
for the Year Ended 31 October 2023

3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1/11/22 Cash flow changes At 31/10/23
£    £    £    £   
Net cash
Cash at bank
and in hand 1,768,185 267,713 2,035,898
1,768,185 267,713 2,035,898
Debt
Finance leases (2,842,476 ) 3,889,425 - (4,673,104 )
Debts falling due
within 1 year (100,000 ) - - (100,000 )
Debts falling due
after 1 year (266,667 ) 100,000 - (166,667 )
(3,209,143 ) 3,989,425 - (4,939,771 )
Total (1,440,958 ) 4,257,138 - (2,903,873 )

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Notes to the Financial Statements
for the Year Ended 31 October 2023

1. STATUTORY INFORMATION

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

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue from contracts for the rendering of services is recognised by reference to the stage of completion of the contract. Applications for payment are issued throughout the duration of a contract based on work carried out and income is recognised at the date of application. Provision is made for any expected variations and losses on all contracts in the year in which they are foreseen.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Plant and machinery - 15% on reducing balance
Fixtures and fittings - 15% on reducing balance
Motor vehicles - 20% on reducing balance
Computer equipment - 20% on reducing balance

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Basic financial liabilities, including loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financial transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result 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 interest rate. The impairment loss is recognised in profit and loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.


ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023

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

Current or deferred taxation assets and liabilities are not discounted.

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

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

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

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

Hire purchase and leasing commitments
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 on a straight line basis 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 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.

3. TURNOVER

All turnover arose within the UK from one principal activity as listed on page 4.

4. EMPLOYEES AND DIRECTORS
31/10/23 31/10/22
£    £   
Wages and salaries 2,265,058 1,444,981
Social security costs 243,059 158,731
Other pension costs 155,426 96,589
2,663,543 1,700,301

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023

4. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
31/10/23 31/10/22

Office 9 9
Site 36 20
Directors 2 2
47 31

31/10/23 31/10/22
£    £   
Directors' remuneration - -

5. OPERATING PROFIT

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

31/10/23 31/10/22
£    £   
Other operating leases 27,886 36,481
Depreciation - owned assets 111,045 35,946
Depreciation - assets on hire purchase contracts 988,111 555,354
(Profit)/loss on disposal of fixed assets (51,341 ) 44,498
Auditors' remuneration 18,000 9,500

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31/10/23 31/10/22
£    £   
Bank interest 17,504 9,374
Hire purchase 164,983 53,920
182,487 63,294

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31/10/23 31/10/22
£    £   
Current tax:
UK corporation tax (172,511 ) 53,514

Deferred tax 994,264 368,291
Tax on profit 821,753 421,805

UK corporation tax has been charged at 25% (2022 - 19%).

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023

7. TAXATION - continued

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

31/10/23 31/10/22
£    £   
Profit before tax 4,198,922 3,422,686
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2022 - 19%)

1,049,731

650,310

Effects of:
Expenses not deductible for tax purposes 31,222 618
Utilisation of tax losses - (206,499 )
Adjustments to tax charge in respect of previous periods (21,804 ) (73,336 )
Super-deduction adjustments (59,234 ) (83,551 )
R&D tax relief in respect of prior year (150,706 ) (134,069 )
Adjustment re change in rate of deferred tax - 268,332
Deferred tax on timing differences (27,456 ) -
Total tax charge 821,753 421,805

8. TANGIBLE FIXED ASSETS
Fixtures
Plant and and Motor Computer
machinery fittings vehicles equipment Totals
£    £    £    £    £   
COST
At 1 November 2022 5,256,917 27,242 239,742 27,006 5,550,907
Additions 6,780,090 - 125,583 13,730 6,919,403
Disposals (1,378,000 ) - - - (1,378,000 )
At 31 October 2023 10,659,007 27,242 365,325 40,736 11,092,310
DEPRECIATION
At 1 November 2022 905,330 10,806 79,737 11,026 1,006,899
Charge for year 1,050,474 2,466 41,876 4,340 1,099,156
Eliminated on disposal (344,841 ) - - - (344,841 )
At 31 October 2023 1,610,963 13,272 121,613 15,366 1,761,214
NET BOOK VALUE
At 31 October 2023 9,048,044 13,970 243,712 25,370 9,331,096
At 31 October 2022 4,351,587 16,436 160,005 15,980 4,544,008

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023

8. TANGIBLE FIXED ASSETS - continued

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1 November 2022 4,862,681 191,812 5,054,493
Additions 5,941,256 112,995 6,054,251
Disposals (1,378,000 ) - (1,378,000 )
Transfer to ownership (262,950 ) (74,822 ) (337,772 )
At 31 October 2023 9,162,987 229,985 9,392,972
DEPRECIATION
At 1 November 2022 766,419 55,902 822,321
Charge for year 955,520 32,591 988,111
Eliminated on disposal (344,841 ) - (344,841 )
Transfer to ownership (125,131 ) (46,218 ) (171,349 )
At 31 October 2023 1,251,967 42,275 1,294,242
NET BOOK VALUE
At 31 October 2023 7,911,020 187,710 8,098,730
At 31 October 2022 4,096,262 135,910 4,232,172

9. STOCKS
31/10/23 31/10/22
£    £   
Stocks 13,203 2,000

10. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/10/23 31/10/22
£    £   
Trade debtors 5,598,072 4,164,401
Amounts owed by associates 3,170,163 2,684,790
Other debtors 299,675 251,238
VAT 467,324 364,644
Prepayments 2,491 6,573
9,537,725 7,471,646

11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31/10/23 31/10/22
£    £   
Bank loans and overdrafts (see note 13) 100,000 100,000
Hire purchase contracts (see note 14) 2,073,200 1,159,002
Trade creditors 2,763,797 1,583,949
Tax - 296,028
Social security and other taxes 86,452 54,792
Other creditors 365,352 92,148
Accrued expenses 1,242,705 1,401,367
6,631,506 4,687,286

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31/10/23 31/10/22
£    £   
Bank loans (see note 13) 166,667 266,667
Hire purchase contracts (see note 14) 2,599,904 1,683,474
2,766,571 1,950,141

Interest is charged on bank loans at 1.82% per annum. Interest on hire purchase is charged at varying rates from 6% to 8%.

13. LOANS

An analysis of the maturity of loans is given below:

31/10/23 31/10/22
£    £   
Amounts falling due within one year or on demand:
Bank loans 100,000 100,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 166,667 266,667

14. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31/10/23 31/10/22
£    £   
Net obligations repayable:
Within one year 2,073,200 1,159,002
Between one and five years 2,599,904 1,683,474
4,673,104 2,842,476

Non-cancellable operating leases
31/10/23 31/10/22
£    £   
Within one year 22,000 22,000
Between one and five years 44,000 -
66,000 22,000

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023

15. SECURED DEBTS

The following secured debts are included within creditors:

31/10/23 31/10/22
£    £   
Bank loans 266,667 366,667
Hire purchase contracts 4,673,104 2,842,476
4,939,771 3,209,143

The bank loan is secured by an unlimited debenture dated 4 June 2020 incorporating a fixed and floating charge over the assets of the company.

Hire purchase debts are secured via the assets which they have financed.

16. PROVISIONS FOR LIABILITIES
31/10/23 31/10/22
£    £   
Deferred tax 2,112,310 1,118,046

Deferred
tax
£   
Balance at 1 November 2022 1,118,046
Accelerated capital allowances 1,101,430
Timing differences (14,024 )
Unused tax losses (93,142 )
Balance at 31 October 2023 2,112,310

The amount of the net reversal of deferred tax expected to occur next year is £231,246 relating to the reversal of existing timing differences on tangible fixed assets, unused tax losses and pension creditors.

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31/10/23 31/10/22
value: £    £   
100 Ordinary 1 100 100

Each share carries one vote and the right to participate in any distribution as recommended by the directors, on a pro-rata basis with regard to total number of shares in issue.

18. RESERVES
Retained
earnings
£   

At 1 November 2022 6,030,266
Profit for the year 3,377,169
At 31 October 2023 9,407,435

ZTL CONTRACTING LTD (REGISTERED NUMBER: 09834891)

Notes to the Financial Statements - continued
for the Year Ended 31 October 2023

19. RELATED PARTY DISCLOSURES

Entities under common control
31/10/23 31/10/22
£    £   
Sales 2,097,275 2,683,770
Purchases 4,038,024 3,338,153
Amount due from related party 3,375,864 2,832,281
Amount due to related party 947,546 571,894

During the year, the company incurred the above transactions with companies controlled by the directors.

The comparatives have been restated to include turnover from applications and associated company loans which had previously been excluded.

Key management personnel are considered to be the directors, they receive no remuneration through ZTL Contracting Ltd (2022: nil).

20. REALLOCATION OF COMPARATIVES

The comparative amounts for depreciation on plant and machinery totalling £562,582 has been reallocated from administrative expenses to cost of sales, this has been done to appropriately reflect the nature of the transaction.