REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
FOR |
OPTIMA INSTALLATIONS LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
FOR |
OPTIMA INSTALLATIONS LIMITED |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 | to | 4 |
Report of the Directors | 5 | to | 6 |
Report of the Independent Auditors | 7 | to | 10 |
Statement of Comprehensive Income | 11 |
Statement of Financial Position | 12 |
Statement of Changes in Equity | 13 |
Statement of Cash Flows | 14 |
Notes to the Statement of Cash Flows | 15 |
Notes to the Financial Statements | 16 | to | 25 |
OPTIMA INSTALLATIONS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 JANUARY 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
First Floor North |
40 Oxford Road |
High Wycombe |
Buckinghamshire |
HP11 2EE |
BANKERS: |
1 Churchill Place |
London |
E14 5HP |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
The directors present their strategic report for the year ended 31 January 2024. |
GROUP STRUCTURE AND PRINCIPAL ACTIVITIES |
Optima Installations Limited is a wholly-owned subsidiary of Optima Contracting Limited. Its principal activity is the provision of skilled labour to the construction industry. |
REVIEW OF THE BUSINESS |
The results for the period and financial position of the business are as shown in the annexed financial statements. |
Key Performance Indicators |
The Company operates a number of Key Performance Indicators (KPI) to monitor and control the business which are measured and reviewed by the management on a regular basis. The KPI include but are not limited to: |
31 January 2024 | 31 January 2023 |
Turnover | £4.3m | £5.3m |
Gross Profit % | 11.6% | 15.6% |
Operating Profit | £0.2m | £0.5m |
Debtors | £0.7m | £0.7m |
Cash at bank and in hand | £0.8m | £0.9m |
All work in progress is monitored and reviewed on a regular basis to ensure the successful progress of each contract. |
Review of the Business |
General market volatility caused delays to the start of new projects throughout the year and this resulted in lower than expected total revenue. Additionally, significant upward inflationary pressure on wages has had a negative impact on average margin levels. Some saving in administrative costs was achieved and overall the business produced an acceptable financial result for the year. |
Future Strategy |
We are expecting market pressures to begin the ease next year and with inflation now built into our pricing models we also anticipate a return to more normal margins. We continue to recruit staff to support our growth plans, particularly in the North and Midlands regions of Great Britian. Recruitment is focussed across a wide spectrum of abilities, from apprentices to fully qualified personnel, to ensure a balanced workforce for today and into the future. |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Key risk factors |
In line with our internal control policy and procedures, key risk factors are reviewed frequently and detailed analysis undertaken where there is a requirement to do so. Mitigating controls or plans are implemented where necessary and during the year ended 31 January 2024 no significant risks materialised within the business. |
Credit risk |
Company credit policy requires that suitable credit checks be carried out on all potential customers before quotations are submitted and again before an order is accepted to ensure that appropriate payment terms are negotiated. Company exposure to individual organisations is regularly monitored and reviewed to ensure that an acceptable level of risk is maintained. |
Cyber security risk |
As our business, suppliers and customers becomes increasingly digitalised, we are inherently exposed to the risk that third parties may seek to disrupt our business. A cyber event may cause significant reputational and financial loss. We have mitigated this risk by creating a secure and robust IT environment with systems that are Cyber Essentials Plus certified and partnering with a third-party security operation centre to proactively monitor and respond to emerging cyber security threats. |
Health, Safety, and Quality |
We are wholly committed to ensuring the health, safety, and welfare of all our employees and recognise our responsibility towards other people who may be affected by our activities. |
ISO9001: 2015 - Our offices and installation sites operate a Quality Management System (QMS) that is certified to ISO9001 by an independent UKAS accredited certification body. We have undergone a process of identifying our key quality targets; setting objectives and developing actions to continually address and improve quality. |
ISO45001: 2018 - Our offices and installation sites operate an Occupational Health and Safety Management System that is certified to ISO45001 by an independent UKAS accredited certification body. We have undergone a process of identifying our key safety targets; setting objectives and developing actions to continually address and improve health and safety. |
Environment |
Improving the environmental and sustainability performance of our business operations is a key operational agenda, and we continually work to minimise our impact on the environment in every area of our business. |
ISO14001:2015 - Our offices, and installation sites operate a third-party approved Environmental Management System (EMS) certified by an independent UKAS accredited certification body. We have undergone a process of identifying our significant environmental impacts; setting objectives and developing actions to continually address and improve our environmental performance. |
We believe in the responsible sourcing of materials and give preference to product and material suppliers certified to IS014001. We have a Sustainable Procurement Policy and a Supplier Code of Conduct to enhance partnerships with our supply chain. |
In line with our company policy, all timber used in our products is sourced solely from FSC® (Forest Stewardship Council) certified suppliers with full Chain of Custody records. Our factory is also FSC® certified ensuring every product installation can be traced back to responsibly managed forests. |
In line with the Government's 2050 Net Zero Carbon target, we have developed our own NZC Strategy and are undertaking actions to identify, report and minimise greenhouse gas emissions throughout the business. |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 JANUARY 2024 |
CULTURE AND EMPLOYEES |
Diversity and Inclusion |
We are committed to promoting equal employment opportunities and both job applicants and employees will receive equal treatment regardless of age, disability, gender reassignment, marital or civil partner status, pregnancy or maternity, race, colour, nationality, ethnic or national origin, religion or belief, sex or sexual orientation (protected characteristics). This includes opportunities for training to upskill employees and provide pathways for career development. We will make any appropriate reasonable adjustments necessary to support and retain our employees. |
We are proud to benefit from having a diverse workforce and we provide opportunities for training and advancement for all. |
Our Employee Handbook contains up to date policies including equal opportunities, anti-harassment & bullying, whistleblowing, flexible working and training & development. Awareness training has been rolled out to support the Employee Handbook and to ensure understanding of key issues. Compulsory training includes the topics of modern slavery, whistleblowing and HR compliance (anti-bribery, equality and diversity, bullying and harassment, wellbeing). |
Communication and Engagement |
We provide an open environment for employees to engage with the business through employee briefings, regular team meetings, individual appraisals, one-to-one meetings and regular communication from the Board on business performance and direction. We recently conducted an employee engagement survey and have implemented some changes as a direct result of feedback from employees (e.g. an improved appraisal process, additional annual leave for long serving employees and more social activities). |
STREAMLINED ENERGY AND CARBON REPORTING |
Disclosure in respect of greenhouse gas emissions, energy consumption and energy efficiency has not been included within this report as the company does not exceed the thresholds to disclose. |
ON BEHALF OF THE BOARD: |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
The directors present their report with the financial statements of the company for the year ended 31 January 2024. |
DIVIDENDS |
Interim dividends totalling £ |
The total distribution of dividends for the year ended 31 January 2024 will be £ |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 February 2023 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). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
AUDITORS |
The auditors, Seymour Taylor Limited, Statutory Auditor, will be re-appointed in accordance with section 487(2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OPTIMA INSTALLATIONS LIMITED |
Opinion |
We have audited the financial statements of Optima Installations Limited (the 'company') for the year ended 31 January 2024 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the Statement of Cash Flows, 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 January 2024 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 |
OPTIMA INSTALLATIONS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 |
OPTIMA INSTALLATIONS LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance including the design of the Group's remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; |
- results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
- any matters we identified having obtained and reviewed the Group's documentation of their policies and procedures relating to: - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance; - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and local tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group's ability to operate. |
Audit response to risks identified |
As a result of performing the above, our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management and external legal advisors concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- reading minutes of meetings of those charged with governance; |
- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
OPTIMA INSTALLATIONS LIMITED |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
First Floor North |
40 Oxford Road |
High Wycombe |
Buckinghamshire |
HP11 2EE |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
STATEMENT OF COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
125,889 | 426,946 |
Other operating income | 4 |
OPERATING PROFIT and |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
STATEMENT OF FINANCIAL POSITION |
31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 14 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 15 |
Capital redemption reserve | 16 |
Retained earnings | 16 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 JANUARY 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 February 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 January 2024 |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
2 |
507,509 |
Cash and cash equivalents at end of year |
2 |
752,906 |
924,894 |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
NOTES TO THE STATEMENT OF CASH FLOWS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation |
Depreciation charges |
Loss on disposal of fixed assets |
Provision for future losses | 3,410 | - |
168,863 | 463,736 |
(Increase)/decrease in stocks | ( |
) |
Decrease/(increase) in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 31 January 2024 |
31.1.24 | 1.2.23 |
£ | £ |
Cash and cash equivalents | 752,906 | 924,894 |
Year ended 31 January 2023 |
31.1.23 | 1.2.22 |
£ | £ |
Cash and cash equivalents | 924,894 | 507,509 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.2.23 | Cash flow | At 31.1.24 |
£ | £ | £ |
Net cash |
Cash at bank | 924,894 | (171,988 | ) | 752,906 |
924,894 | ( |
) | 752,906 |
Total | 924,894 | (171,988 | ) | 752,906 |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 JANUARY 2024 |
1. | GENERAL INFORMATION |
Optima Installations Limited is a company limited by shares and incorporated in England and Wales. The Registered Office is First Floor North, 40 Oxford Road, High Wycombe, Buckinghamshire, HP11 2EE. The principal place of business is Courtyard House, West End Road, High Wycombe, Buckinghamshire, HP11 2QB. The principal activity of the company during the year was that of the provision of skilled labour to the construction industry. |
The presentation currency of these financial statements is sterling (£), being the currency of the primary economic environment in which the company operates, its functional currency. All amounts in the financial statements have been rounded to the nearest £1 unless otherwise stated. |
The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Significant judgements and estimates |
The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the date of the financial statements. If in the future such estimates and assumptions, which are based on management's best judgement at the date of the financial statements, deviate from the actual circumstances, the original estimates and assumptions will be modified as appropriate in the year in which the circumstances change. |
Turnover and margin recognition |
The company's turnover and margin recognition policies are central to how the company values the work it has carried out each year. |
These policies require forecasts to be made of the outcomes of construction and service contracts, which require assessments and judgements to be made on contract programmes; changes in the scope of work; and changes in costs |
Management bases its judgements of costs and turnover and its assessment of the expected outcome of each contract on the latest available information. This information includes detailed contract valuations and forecasts of the costs to complete. The estimates of the contract positions and the profit or loss earned to date are updated regularly and significant changes are highlighted through established internal review procedures. The impact of any change in the accounting estimates is then reflected in the financial statements. |
Stock provisioning |
Stocks are carried at the lower of cost and net realisable value. Management review stock for evidence of impairment and make due allowance in respect of items identified as being impaired. |
Depreciation of tangible fixed assets |
Depreciation is provided in order to write off the cost less estimated residual value of each asset over its estimated useful life. |
Management reassess the depreciation methods, useful lives and residual values where there is an indication of a significant change in the pattern by which the company expects to consume an asset's future economic benefits. |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover is measured at the fair value of the consideration receivable for goods and services provided, net of trade discounts and value added tax. |
Turnover from construction and service activities represents the value of work carried out during the year, including amounts not invoiced. |
Where the outcome of individual contracts can be estimated reliably, turnover and costs are recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to agreements with the customer. |
Where the outcome of the contracts cannot be reliably estimated, turnover is recognised only to the extent of the contract costs recognised that it is probable will be recoverable. |
No margin is recognised until the outcome of the contact can be estimated with reasonable certainty. |
Provision is made for all known or expected losses on individual contracts once such losses are foreseen. |
Turnover in respect of variations to contracts is recognised when it is probable it will be agreed by the customer. |
Tangible fixed assets |
Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. The company assesses at each reporting date whether tangible fixed assets are impaired. |
Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life: |
Plant and machinery | - | reducing balance - 25% |
Fixtures and fittings | - | straight line - 25% |
Motor vehicles | - | straight line - 25% |
Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since the last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for impaired items. |
Work in progress |
Work in progress is valued on the basis of direct costs plus attributable overheads based on normal level of activity. Provision is made for any foreseeable losses where appropriate. No element of profit is included in the valuation of work in progress. |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Tax on the profit or loss 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 directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income. |
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years. |
Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. Differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met are not provided for. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense. |
Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Transactions denominated in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Monetary assets and liabilities at the year end denominated in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Exchange differences are taken into account in arriving at the operating profit. |
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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the statement of financial position. 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 the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments issued by the company |
Financial instruments issued by the company are treated as equity only to the extent that they meet the following two conditions: |
(a) they include no contractual obligations upon the company to deliver cash or other financial assets or to exchange financial assets or financial liabilities with another party under conditions that are potentially unfavourable to the company; and |
(b) where the instrument will or may be settled in the company's own equity instruments, it is either a non-derivative that includes no obligation to deliver a variable number of the company's own equity instruments or is a derivative that will be settled by the company's exchanging a fixed amount of cash or other financial assets for a fixed number of its own equity instruments. |
To the extent that this definition is not met, the proceeds of issue are classified as a financial liability. Where the instrument so classified takes the legal form of the company's own shares, the amounts presented in these financial statements for called up share capital and share premium account exclude amounts in relation to those shares. |
Basic financial instruments |
Trade and other debtors and creditors |
Trade and other debtors are recognised initially at transaction price less attributable transaction costs. Trade and other creditors are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors. If the arrangement constitutes a financing transaction, for example if payment is deferred beyond normal business terms, then it is measured at the present value of future payments discounted at a market rate of instrument for a similar debt instrument. |
Construction contract debtors |
Construction contract debtors represent the gross unbilled amount for contract work performed to date. They are measured at cost plus profit recognised to date less a provision for foreseeable losses and less progress billings. Variations are included in contract revenue when they are reliably measurable and it is probable that the customer will approve the variation itself and the revenue arising from the variation. Claims are included in contract revenue only when they are reliably measurable and negotiations have reached an advanced stage such that it is probable that the customer will accept the claim. Cost includes all expenditure related directly to specific projects and an allocation of fixed and variable overheads incurred in the company's contract activities based on normal operating capacity. |
Construction contract debtors are presented as part of debtors in the statement of financial position. If payments received from customers exceed the income recognised, then the difference is presented as accruals and deferred income in the statement of financial position. |
Interest-bearing borrowings classified as basic financial instruments |
Interest-bearing borrowings are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest-bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses. |
Cash and cash equivalents |
Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the company's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statement. |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the principal activities of the company. |
An analysis of turnover by geographical market is given below: |
2024 | 2023 |
£ | £ |
United Kingdom |
4. | OTHER OPERATING INCOME |
2024 | 2023 |
£ | £ |
Rents receivable |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Number of production staff |
Number of administrative staff |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Loss on disposal of fixed assets |
Auditors' remuneration |
Auditors' remuneration for services other than audit is disclosed in the consolidated group financial statements. |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Deferred tax: |
Origination and reversal of |
timing differences | ( |
) |
Tax on profit |
UK corporation tax was charged at 19%) in 2023. |
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: |
2024 | 2023 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Depreciation in excess of capital allowances |
Adjustments to tax charge in respect of previous periods | ( |
) |
Changes in rates of taxation | ( |
) |
Total tax charge | 34,317 | 88,590 |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
7. | TAXATION - continued |
Factors that may affect future tax charges |
For periods commencing 1 April 2023 the corporation tax main rate increased to 25%, with the small profits rate remaining at 19%. |
Deferred tax balances have been recognised at the rate at which it is expected that the future benefit will be received. |
8. | DIVIDENDS |
2024 | 2023 |
£ | £ |
Interim |
9. | TANGIBLE FIXED ASSETS |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 February 2023 |
Additions |
Disposals | ( |
) | ( |
) |
Transfers | 4,756 | - | - | 4,756 |
At 31 January 2024 |
DEPRECIATION |
At 1 February 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
Transfers | 1,246 | - | - | 1,246 |
At 31 January 2024 |
NET BOOK VALUE |
At 31 January 2024 |
At 31 January 2023 |
Transfers represent the original cost and accumulated depreciation on assets transferred from/(to) other group companies. |
10. | STOCKS |
2024 | 2023 |
£ | £ |
Work-in-progress |
Finished goods |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Amounts owed by group undertakings |
Other debtors |
VAT |
Prepayments and accrued income |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade creditors |
14. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Excess of taxation allowances |
over depreciation |
Other provisions |
Deferred | Onerous |
tax | contracts |
£ | £ |
Balance at 1 February 2023 |
Provided during year |
Credit to Statement of Comprehensive Income during year | ( |
) |
Balance at 31 January 2024 |
Onerous contracts |
Where it is probable that total contract costs will exceed total contract revenue on a construction contract, a provision for the expected loss has been be recognised as an expense. |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
15. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 |
16. | RESERVES |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 February 2023 | 1,817,192 | 4,500 | 1,821,692 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 31 January 2024 | 1,687,192 | 4,500 | 1,691,692 |
Retained earnings is a distributable reserve which records retained earnings and accumulated losses. |
The capital redemption reserve is a non-distributable reserve and represents the nominal value of shares that have been issued, but then repurchased by the company. |
17. | CONTINGENT LIABILITIES |
Cross guarantee |
This company, Hexa Group Holdings Limited, Optima Investments Limited, Optima Contracting Limited and Optima Products Limited have entered into a composite accounting agreement, dated 18 October 2019, in which each participating company has provided a guarantee to the bank. Under the terms of the agreement and the guarantees, the bank is authorised to allow set-off of balances between the companies involved. |
18. | RELATED PARTY DISCLOSURES |
Group companies |
This company is a wholly-owned subsidiary within a group. It has therefore taken advantage of the exemptions provided within Financial Reporting Standard 102, from disclosure of transactions entered into with other members of the group. |
Transactions with key management personnel |
2024 | 2023 |
£ | £ |
Total compensation of key management personnel, including directors |
Other related parties transactions |
There were no other transactions that require disclosure under Financial Reporting Standard 102. |
OPTIMA INSTALLATIONS LIMITED (REGISTERED NUMBER: 03328830) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 JANUARY 2024 |
19. | ULTIMATE PARENT COMPANY |
The directors consider and |
The largest group in which this company's information is consolidated is that of financial statements to 31 January 2024. The principal place of business for this company is: |
Courtyard House |
West End Road |
High Wycombe |
Buckinghamshire |
HP11 2QB |
The smallest group in which this company's information is consolidated is that of financial statements to 31 January 2024. The principal place of business for this company is: |
Courtyard House |
West End Road |
High Wycombe |
Buckinghamshire |
HP11 2QB |
Copies of the consolidated financial statements of Contracting Limited can be obtained from: |
First Floor North |
40 Oxford Road |
High Wycombe |
Buckinghamshire |
England |
HP11 2EE |