Company registration number 01360130 (England and Wales)
J & B HOPKINS LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
31 MARCH 2024
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
J & B HOPKINS LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 - 26
J & B HOPKINS LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr. P Scadding
Mr D Harman
Mr R J Niziolek
Mr J M Parker
Mr M C Jenkins
Mr S B Adams
Mrs. B. L. Hopkins
Mr. P. H. Hopkins
Mr. R. J. Hopkins
Mr. P. J. Lambden
Company number
01360130
Registered office
Concorde House
Concorde Way
Segensworth North
Fareham
Hampshire
United Kingdom
PO15 5RL
Auditor
TC Group
3 Acorn Business Centre
Northarbour Road
Cosham
Portsmouth
Hampshire
PO6 3TH
J & B HOPKINS LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 2 -

The directors present their strategic report on the company for the 18 month period ended 31 March 2024.

Principal activities and review of the business

The principal activities of the company continue to be heating, ventilation and electrical services (Building Services Engineers), catering to a wide range of clients across multiple sectors. Whilst our core activities remain building services we have expanded our portfolio to include decarbonisation and electrification works.

Our regional office network continues to strengthen our geographic coverage and provides opportunities to our staff to develop and grow. During the period we have relocated our South East regional office to a larger facility in Shoreham, whilst our Thames Valley office is now developing its local client network which has enabled further expansion.

The continued implementation of our Business Direction Plan has resulted in our highest ever forward order book (£100.4m) across a diverse range of sectors, with more than 30 different customers. This is underpinned by our high standards of self-delivery quality, innovation, and customer satisfaction. In addition expansion into the decarbonisation and electrification markets have enabled the company to acquire additional skills and offerings to enable the business to move forward with market opportunities.

UK construction continues to face many challenges, principally around skills shortages. In order to address this, we have and continue to expand our self delivery model, ensuring we train, develop and retain staff. Over the year we have focused on personal development plans to ensure we not only have adequately trained staff for our operations today but also understanding what is needed as we move forward.

Summary of results

During the extended financial year, turnover increased to £82.7m (£55.1m annualised) from £45.5m in 2022. This revenue increase (21%) compared to the previous year, has been driven by our expanding sector experience and ventures into the evolving renewable energy market. Gross profit increased to 9.2m and despite unprecedented levels of inflation over the extended accounting period on our fixed term contracts a credible 929K NPBT was achieved.

Principal risks and uncertainties

The principal risks and uncertainties of the business are examined below:

 

Economic Conditions

Whilst inflation is returning to more manageable levels and longer term projects are incorporating inflationary measures. Both the bond and credit insurance markets have adopted a particularly hard approach to the UK construction market following some high profile failures. The reluctance to provide credit insurance has resulted in enhanced internal governance and negotiation on payment terms.

Labour and Skills Shortage

The continuing shortage of skilled workers can constrict the ability of a business. However, due to our ongoing people development programme are staff are highly motivated, we work tirelessly to ensure we provide opportunities to our staff, are innovative in our solutions and remain an employer of choice.

 

Parliament and Government

The recent change in UK government will result in a change of policy and public spending over the next period. Our diverse sector experience and coverage will enable us to ebb and flow as changes occur.

J & B HOPKINS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 3 -

Cyber Security

Due to the ever-increasing threat of Cyber disruption, we have enhanced out cyber security protocols, engaging with experts in the field to advise and implement adequate resilience in case of a future disturbance.

Staff Training and Development

Investing in our people is paramount. We have implemented comprehensive training programs focused on specific skills or competencies. Our development initiatives include Leadership Development, a program designed to nurture future leaders; Technical Training, specialized training to keep pace with industry advancements; Employee Wellness, initiatives to support mental and physical well-being.

JBH continues to maintain its apprenticeship programme for both trade operatives and office staff. The programme has been enhanced to ensure that each participant not only has the academic qualification at the end of the programme but also the real life experiences as well as the interpersonal skills to succeed in the market place.

 

Corporate Social Responsibilities

We are committed to sustainable and ethical business practices. Our robust safety systems and initiatives continue to promote a safe working culture across all aspects of our business resulting in lower than national average frequencies, additional 0 RIDDOR’s were recorded.

We continue to support both local and national charities through the inception of our staff charity day entitling our staff to take paid leave to undertake charitable work and give back to the communities close to them.

 

Liquidity and Financing

Maintaining a strong liquidity position is a priority. The companies cash at year end was £2.9m and net assets £3.7m. We continue to balance our income and expenditure to ensure we are not dependant on any third party funding.

 

On behalf of the board

Mr R J Niziolek
Director
5 August 2024
J & B HOPKINS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2024
- 4 -

The directors present their annual report and financial statements for the Period ended 31 March 2024.

Results and dividends

The results for the Period are set out on page 10.

No ordinary dividends were paid.

 

On 26th October 2021 there was a transfer of ownership of the company to The J & B Hopkins Employee Trustee Company Limited as trustee of The J & B Hopkins Limited Employee Share Trust. During the period, contributions were paid of £1,708,707 (2022 - £3,945,000) to The J & B Hopkins Employee Trustee Company Limited as trustee of The J & B Hopkins Limited Employee Share Trust

Directors

The directors who held office during the Period and up to the date of signature of the financial statements were as follows:

Mr. P Scadding
Mr D Harman
Mr R J Niziolek
Mr J M Parker
Mr M C Jenkins
Mr S B Adams
Mrs. B. L. Hopkins
Mr. P. H. Hopkins
Mr. R. J. Hopkins
Mr. P. J. Lambden
J & B HOPKINS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 5 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

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.

Auditor

The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr R J Niziolek
Director
5 August 2024
J & B HOPKINS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J & B HOPKINS LIMITED
- 6 -
Opinion

We have audited the financial statements of J & B Hopkins Limited (the 'company') for the Period ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including 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:

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 Auditor's 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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.

J & B HOPKINS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J & B HOPKINS LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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 directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 is 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.

Auditor's 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 an auditor's report 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Extent to which the audit was considered capable of detecting irregularities, including fraud

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

J & B HOPKINS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J & B HOPKINS LIMITED
- 8 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

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 (irregularities) 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. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

 

J & B HOPKINS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J & B HOPKINS LIMITED
- 9 -

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 an auditor's report 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.

James Blake FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
5 August 2024
Office: Portsmouth
J & B HOPKINS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2024
- 10 -
Period
Year
ended
ended
31 March
30 September
2024
2022
Notes
£
£
Turnover
3
82,701,987
45,497,807
Cost of sales
(73,432,539)
(38,497,172)
Gross profit
9,269,448
7,000,635
Administrative expenses
(8,370,605)
(5,536,032)
Other operating income
-
0
58
Operating profit
4
898,843
1,464,661
Interest receivable and similar income
30,465
2,754
Interest payable and similar expenses
-
0
(4,436)
Profit before taxation
929,308
1,462,979
Taxation
7
(240,591)
512,674
Profit for the financial Period
688,717
1,975,653

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 14 to 26 form part of these financial statements
J & B HOPKINS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
313,384
414,104
Current assets
Stocks
10
58,829
58,829
Debtors
11
13,053,280
8,847,308
Cash at bank and in hand
2,851,771
6,572,817
15,963,880
15,478,954
Creditors: amounts falling due within one year
12
(12,517,447)
(11,175,036)
Net current assets
3,446,433
4,303,918
Total assets less current liabilities
3,759,817
4,718,022
Provisions for liabilities
13
(61,885)
-
0
Net assets
3,697,932
4,718,022
Capital and reserves
Called up share capital
15
512,500
512,500
Share premium account
3,950
3,950
Profit and loss reserves
3,181,482
4,201,572
Total equity
3,697,932
4,718,022
The financial statements were approved by the board of directors and authorised for issue on 5 August 2024 and are signed on its behalf by:
Mr R J Niziolek
Director
Company Registration No. 01360130
The notes on pages 14 to 26 form part of these financial statements
J & B HOPKINS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2024
- 12 -
Share capital
Share premium account
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 October 2021
512,500
3,950
6,208,419
6,724,869
Period ended 30 September 2022:
Profit and total comprehensive income for the period
-
-
1,975,653
1,975,653
Dividends
8
-
-
(37,500)
(37,500)
Contributions to The J & B Hopkins Employee Trustee Company Limited
8
-
-
(3,945,000)
(3,945,000)
Balance at 30 September 2022
512,500
3,950
4,201,572
4,718,022
Period ended 31 March 2024:
Profit and total comprehensive income for the period
-
-
688,717
688,717
Contributions to The J & B Hopkins Employee Trustee Company Limited
8
-
-
(1,708,807)
(1,708,807)
Balance at 31 March 2024
512,500
3,950
3,181,482
3,697,932
The notes on pages 14 to 26 form part of these financial statements
J & B HOPKINS LIMITED
STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2024
- 13 -
2024
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash (absorbed by)/generated from operations
20
(1,860,879)
4,476,487
Interest paid
-
0
(4,436)
Income taxes refunded
1
366,278
Net cash (outflow)/inflow from operating activities
(1,860,878)
4,838,329
Investing activities
Purchase of tangible fixed assets
(113,767)
(106,860)
Proceeds on disposal of tangible fixed assets
16,941
42,275
Interest received
30,465
2,754
Net cash used in investing activities
(66,361)
(61,831)
Financing activities
Repayment of borrowings
(85,000)
(8,570)
Repayment of/proceeds from bank loans
-
0
(3,000,000)
Payment of finance leases obligations
-
0
(7,543)
Dividends and distributions paid
(1,708,807)
(3,982,500)
Net cash used in financing activities
(1,793,807)
(6,998,613)
Net decrease in cash and cash equivalents
(3,721,046)
(2,222,115)
Cash and cash equivalents at beginning of Period
6,572,817
8,794,932
Cash and cash equivalents at end of Period
2,851,771
6,572,817
The notes on pages 14 to 26 form part of these financial statements
J & B HOPKINS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information

J & B Hopkins Limited is a private company limited by shares incorporated in England and Wales. The registered office is Concorde House, Concorde Way, Segensworth North, Fareham, Hampshire, United Kingdom, PO15 5RL.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.

These financial statements for the Period ended 31 March 2024 are the first financial statements of J & B Hopkins Limited prepared in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland. The date of transition to FRS 102 was 1 October 2021. The reported financial position and financial performance for the previous period are not affected by the transition to FRS 102.

1.2
Going concern

Atruet 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.

1.3
Turnover

The turnover shown in the profit and loss account represents amounts receivable for services provided during the year, exclusive of VAT.

 

In the case of contracts treated as long term, turnover reflects the contract activity during the period and the proportion of total contract value which costs incurred to date bear to total expected costs. The attributable profit on contracts is recognised once their outcome can be assessed with reasonable certainty. The profit recognised reflects the proportion of work completed to date on the project. Full provision is made for losses on all contracts in the year in which the loss is first foreseen.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

J & B HOPKINS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold improvements
Over 15 years straight line
Plant and equipment
15% and 33% reducing balance
Office equipment
15% and 33% reducing balance
Motor vehicles
25% 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 profit or loss.

1.5
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 loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.6
Stocks

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

1.7
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

J & B HOPKINS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -

Amounts recoverable on long term contracts, which are included in debtors, are stated at the net sales value of the work done less amounts received as progress payments on account. Excess progress payments are included in creditors as payments on account. Cumulative costs incurred net of amounts transferred to cost of sales, less provision for contingencies and anticipated future losses on contracts, are included as long-term contract balances in stock.

1.8
Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less.

1.9
Financial instruments

The company 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 company's balance sheet when the company 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.

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.

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.

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.

J & B HOPKINS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
Basic financial liabilities

Basic financial liabilities, including creditors and bank loans that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing 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.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments and contributions payable to The J & B Hopkins Employee Trustee Company Limited in its capacity as trustee of The J & B Hopkins Limited Employee Share Trust are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax.

 

Deferred tax is measured on an undiscounted basis at the tax rates that are expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

 

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

J & B HOPKINS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.12
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

The company operates a defined contribution scheme for employees. The assets of the scheme are held separately from those of the company. The annual contributions payable are charged to the profit and loss account.

1.14
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.15
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

J & B HOPKINS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 19 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are outlined below.

 

Calculation of performance on long term contracts:

 

The company operates a number of long term construction contracts. To calculate the profit reported against each project a financial report is produced by the project manager with assistance provided by the commercial department. The report is then reviewed and amended as required on a monthly basis by the meeting attendees which includes the commercial director. These costs to complete schedules are then used to estimate an appropriate level of profitability for each individual contract. The long term contract balances at the year-end are also reviewed by management from the point of view of recoverability.

 

3
Turnover and other revenue
All of the company's turnover is generated from its principal activity, which is that of the provision of Building Services Engineers. No geographical analysis has been included because there is no material turnover deriving from services provided outside the United Kingdom.
4
Operating profit
2024
2022
Operating profit for the period is stated after charging/(crediting):
£
£
Government grants - Coronavirus Job Retention Scheme
-
(58)
Fees payable to the company's auditor for the audit of the company's financial statements
17,250
11,500
Depreciation of owned tangible fixed assets
200,246
145,974
Profit on disposal of tangible fixed assets
(2,700)
(26,923)
Operating lease charges
655,815
730,696
J & B HOPKINS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 20 -
5
Employees

The average monthly number of persons (including directors) employed by the company during the Period was:

2024
2022
Number
Number
Office and management
144
134
Direct labour
44
50
Total
188
184

Their aggregate remuneration comprised:

2024
2022
£
£
Wages and salaries
16,541,370
9,451,745
Social security costs
1,345,697
973,272
Pension costs
371,974
276,346
18,259,041
10,701,363
6
Directors' remuneration
2024
2022
£
£
Remuneration for qualifying services
1,394,461
949,593
Company pension contributions to defined contribution schemes
38,956
30,272
1,433,417
979,865

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 8 (2022 - 8).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2022
£
£
Remuneration for qualifying services
198,117
135,163
Company pension contributions to defined contribution schemes
5,244
3,450
J & B HOPKINS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 21 -
7
Taxation
2024
2022
£
£
Current tax
UK corporation tax on profits for the current period
19,720
284,203
Research and Development expenditure reliefs in respect of prior years
-
0
(566,300)
Total current tax
19,720
(282,097)
Deferred tax
Origination and reversal of timing differences
220,871
(230,577)
Total tax charge
240,591
(512,674)

The actual charge/(credit) for the Period can be reconciled to the expected charge for the Period based on the profit or loss and the standard rate of tax as follows:

2024
2022
£
£
Profit before taxation
929,308
1,462,979
Expected tax charge based on the standard rate of corporation tax in the UK of 23.00% (2022: 19.00%)
213,741
277,966
Tax effect of expenses that are not deductible in determining taxable profit
10,035
7,229
Enhanced capital allowances
(2,610)
(5,269)
Research and Development claims
-
0
(754,444)
Effect of change in future tax rate
19,425
(38,156)
Tax expense for the period
240,591
(512,674)
J & B HOPKINS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 22 -
8
Dividends and contributions
Dividends
2024
2022
2024
2022
Per share
Per share
Total
Total
£
£
£
£
Ordinary A shares
Final paid
-
0
6.25
-
0
18,750
Ordinary D shares
Final paid
-
0
7.50
-
0
18,750
Total dividends
Final paid
-
0
37,500
2024
2022
£
£
Contributions to The J & B Hopkins Employee Trustee Company Limited
Amounts paid
1,708,807
3,945,000
9
Tangible fixed assets
Leasehold improvements
Plant and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 October 2022
112,041
419,476
945,593
301,696
1,778,806
Additions
-
0
63,169
50,598
-
0
113,767
Disposals
-
0
-
0
-
0
(130,929)
(130,929)
At 31 March 2024
112,041
482,645
996,191
170,767
1,761,644
Depreciation and impairment
At 1 October 2022
52,556
265,685
785,162
261,299
1,364,702
Depreciation charged in the Period
7,782
107,261
75,625
9,578
200,246
Eliminated in respect of disposals
-
0
-
0
-
0
(116,688)
(116,688)
At 31 March 2024
60,338
372,946
860,787
154,189
1,448,260
Carrying amount
At 31 March 2024
51,703
109,699
135,404
16,578
313,384
At 30 September 2022
59,485
153,791
160,431
40,397
414,104
J & B HOPKINS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 23 -
10
Stocks
2024
2022
£
£
Consumable stock
58,829
58,829
11
Debtors
2024
2022
Amounts falling due within one year:
£
£
Trade debtors
1,840,124
1,863,919
Amounts recoverable on long term contracts
10,459,330
5,691,040
VAT recoverable
389,651
651,663
Other debtors
4,259
2,612
Prepayments and accrued income
359,916
479,088
13,053,280
8,688,322
Deferred tax asset (note 13)
-
0
158,986
13,053,280
8,847,308
12
Creditors: amounts falling due within one year
2024
2022
Notes
£
£
Directors loan account
756,430
841,430
Trade creditors
8,453,228
7,520,229
Corporation tax
23,108
3,387
Other taxation and social security
353,229
273,418
Other creditors
54,703
52,885
Accruals and deferred income
2,876,749
2,483,687
12,517,447
11,175,036
J & B HOPKINS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 24 -
13
Provision for liabilities

This relates to deferred tax. Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
Assets
Assets
2024
2022
2024
2022
Balances:
£
£
£
£
Accelerated capital allowances
70,462
-
-
(93,248)
Tax losses
-
-
-
247,557
Retirement benefit obligations
(8,577)
-
-
4,677
61,885
-
-
158,986
2024
Movements in the Period:
£
Liability/(Asset) at 1 October 2022
(158,986)
Charge to profit or loss
220,871
Liability at 31 March 2024
61,885
14
Retirement benefit schemes
2024
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
371,974
276,346

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

J & B HOPKINS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 25 -
15
Share capital
2024
2022
£
£
Ordinary share capital
Issued and fully paid
4,000 Ordinary shares of £1 each
4,000
4,000
3,000 Ordinary A shares of £1 each
3,000
3,000
3,000 Ordinary B shares of £1 each
3,000
3,000
500,000 Ordinary C shares of £1 each
500,000
500,000
2,500 Ordinary D shares of £1 each
2,500
2,500
512,500
512,500
16
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2022
£
£
Within one year
444,085
681,953
Between two and five years
175,822
423,981
619,907
1,105,934
17
Contingent Liabilities

During the period HM Revenue & Customs (HMRC) submitted a claim against the company for £281,933 of Corporation tax payable, in respect of a Research & Development tax relief claim made by the company in its tax return for the year ended 30 September 2021. The company and its tax advisors dispute the claim made by HMRC in its entirety and are taking actions to defend the claim. At the date of the approval of these financial statements and having considered the advice of the company’s tax advisors, the directors consider that although it is possible that HMRC’s claim may succeed, it is not probable, and accordingly no provision for any liability has been made within these financial statements.

18
Related party transactions

Mrs B. L. Hopkins maintains a loan account with the company. At the period-end, the company owed Mrs B. L Hopkins £756,430 (2022 - £841,430).

 

During the period, the company made rental payments for properties, in which Mrs B. L. Hopkins, Mr R.J. Hopkins and Mr P. H. Hopkins have an interest, these rental payments totalled £337,500 (2022- £225,000).

 

No dividends (2022 - £37,500) were paid in the Period in respect of shares held by the company's directors.

J & B HOPKINS LIMITED
NOTES TO THE  FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024
- 26 -
19
Ultimate controlling party

The company was under the control of Mrs. B.L Hopkins up to the 26th October 2021 by virtue of her majority shareholding. On 26th October 2021 there was a transfer of ownership of the company to The J & B Hopkins Employee Trustee Company Limited as trustee of The J & B Hopkins Limited Employee Share Trust. During the period, contributions were paid of £1,708,707 (2022 - £3,945,000) to The J & B Hopkins Employee Trustee Company Limited as trustee of The J & B Hopkins Limited Employee Share Trust.

20
Cash (absorbed by)/generated from operations
2024
2022
£
£
Profit for the Period after tax
688,717
1,975,653
Adjustments for:
Taxation charged/(credited)
240,591
(512,674)
Finance costs
-
0
4,436
Investment income
(30,465)
(2,754)
Gain on disposal of tangible fixed assets
(2,700)
(26,923)
Depreciation and impairment of tangible fixed assets
200,246
145,974
Movements in working capital:
Increase in stocks
-
0
(3,792)
(Increase)/decrease in debtors
(4,364,958)
2,751,262
Increase in creditors
1,407,690
145,305
Cash (absorbed by)/generated from operations
(1,860,879)
4,476,487
21
Analysis of changes in net funds
1 October 2022
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
6,572,817
(3,721,046)
2,851,771
Borrowings excluding overdrafts
(841,430)
85,000
(756,430)
5,731,387
(3,636,046)
2,095,341
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