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Company Registration No. 14667775 (England and Wales)







J.J.SWEENEY HOLDINGS LIMITED

ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 AUGUST 2023




































Riordan O'Sullivan & Co
Chartered Certified Accountants and Statutory Auditors
40 Chamberlayne Road
London
NW10 3JE

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
COMPANY INFORMATION


Directors
J J Sweeney (appointed 16 February 2023)
J P Sweeney (appointed 16 February 2023)
P C Sweeney (appointed 16 February 2023)




Registered number
14667775



Registered office
3 Conqueror Court
Spilsby Road

Romford

RM3 8SB




Independent auditors
Riordan O'Sullivan & Co
Chartered Certified Accountants and Statutory Auditors

40 Chamberlayne Road

London

NW10 3JE




Bankers
Barclays Bank Plc
1 Churchill Place

London

E14 5HP





 
J.J.SWEENEY HOLDINGS LIMITED
 

CONTENTS



Page
Group Strategic Report
 
 
1 - 3
Directors' Report
 
 
4 - 5
Independent Auditors' Report
 
 
6 - 9
Consolidated Profit and Loss Account
 
 
10
Consolidated Balance Sheet
 
 
11
Company Balance Sheet
 
 
12
Consolidated Statement of Changes in Equity
 
 
13
Company Statement of Changes in Equity
 
 
14
Consolidated Statement of Cash Flows
 
 
15
Consolidated Analysis of Net Debt
 
 
16
Notes to the Financial Statements
 
 
17 - 28


 
J.J.SWEENEY HOLDINGS LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 AUGUST 2023

The board presents the strategic report together with the consolidated financial statements of the group for the period from 16 February 2023 to 31 August 2023. 

Principal activities
 
The principal activity of the company is that of an investment holding company.
The principal activity of the sole subsidiary, J.J.Sweeney Limited, was that of joinery and fit out contractors.
All activities are carried out within the United Kingdom.

Headline facts and key performance indicators

The board uses a variety of financial and non-financial KPI’s to measure and manage the group’s operations efficiently. Financial KPI’s include, but are not limited to, turnover, profit margin and balance sheet strength.
The group made profit after tax of £712,732 on turnover of £7,706,819 during the period and the balance sheet strength of the group as at 31 August 2023 was £13,391,023.

The profit and loss account

The profit and loss account of the group for the year is set out on page 10. The results were in line with the expectations of the directors.

Review of the period to August 2023
 
The company was incorporated as an investment holding company on 16 February 2023 and it acquired the entire shareholdings and business of J.J.Sweeney Limited on 17 May 2023.
These are the first consolidated financial statements of the group and include the trading results for the period from 17 May 2023 to 31 August 2023, and therefore comparative figures are not applicable. 
The board is satisfied with the first period group results.

Future prospects

Our current contracts are progressing satisfactorily, however, the directors are forecasting reduced turnover and profits for 2024 due to the challenges presented by the geo political climate, with conflicts in Ukraine and the Middle East, ongoing inflation concerns and persistently high interest rates likely to dampen investment confidence.  This has resulted in delayed starts and the cancellation of certain contracts.
The fundamentals of our business are strong and focussed and our financial strength continues to enable us to invest in our people and resources.
However, we are confident that the strength of the group, with its strong and liquid balance sheet, our dedicated and experienced team, our reputation within our sector to continue the delivery of a consistent, timely and quality service to our valued customers will enable us to generate profit and positive cash flow going forward.

Page 1

 
J.J.SWEENEY HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023

Principal risks and uncertainties
 
The principal risks for our group include the following:
Pricing and delivery of joinery and fit out contracts 
The pricing and delivery of large and complex joinery and fit out contracts present many challenges, principal amongst them being availability of materials and tradespeople and meeting tight deadlines. Our policy remains to have an experienced team of construction, pre construction, commercial, buyers, surveyors, estimators and resources professionals who carry out an in depth analysis of every tender before submission and to have an experienced team to deliver the contracts we win.
Health and safety risk
Construction can be a higher risk activity. Health and safety remains at the forefront of our management principles. We work hard to eliminate and prevent the recurrence of even the most minor accidents and non injury events. We prioritise investment in health and safety training to maintain, monitor and enhance our Health & Safety performance. 
Our management team 
The success of the group is dependent on recruiting and retaining skilled management, tradespeople and support staff and our employment policy is designed to attract, train and provide a rewarding and challenging career that retains the best people throughout their working life.
Quality workmanship
Construction projects have to be delivered to exacting design, engineering and quality workmanship standards. Our policy remains to have a stable team of skilled and experienced directors, managers, tradespeople and support staff and we are proud of our ability to retain the best people.
Credit risk
The group’s credit risks are mainly attributable to the trade debtors and amounts recoverable on contracts. Our policy remains to have a good mix of long standing blue chip customers and we operate a modern and efficient financial and management reporting system that monitors our customers and our debtors book on a day to day basis. In particular our longstanding monthly Cost Value Reporting system and review meetings cover the operational, commercial and financial performance of every project and help act as an advance warning of any variances. The group does not have a concentration of credit risk with the exposure spread over a number of customers.
Liquidity risk
The group maintains a strong and liquid balance sheet and finances its operations through a mixture of cash reserves in the bank, trade debtors, including amounts receivable from contracts less trade and other creditors. Cashflow forecasts are constantly monitored and updated. The group does not have any complex financial instruments or hedging products and neither does it have any loans or overdrafts. Therefore the directors are confident that they can meet their obligations as they fall due.

Going concern

The Board of Directors is required to consider the group's ability to continue as a going concern over a period of at least 12 months from the date of approval of these financial statements. The directors are confident that the group can continue to trade successfully and continue to provide an excellent and reliable service to our customers for the foreseeable future because we have a satisfactory order book from well established  customers and the group has a £13.39 million balance sheet with strong liquidity and consistent profits. Thus, we continue to adopt the going concern basis in preparing the financial statements.

Page 2

 
J.J.SWEENEY HOLDINGS LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023

Future
 
The Directors look forward with confidence to continue the success of the group into the future.


This report was approved by the board on 16 August 2024 and signed on its behalf.



___________________________
J P Sweeney
Director

Page 3

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 AUGUST 2023

The directors present their report and the financial statements for the year ended 31 August 2023.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK 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 Group will continue in business.

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

Results and dividends

The profit for the year, after taxation, amounted to £712,732.

No dividends were paid during the period and the directors have not proposed a final dividend.

Directors

The directors who served during the year were:

J J Sweeney (appointed 16 February 2023)
J P Sweeney (appointed 16 February 2023)
P C Sweeney (appointed 16 February 2023)

Strategic report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments, principal risks and uncertainties. 

Page 4

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Auditors

Under section 487(2) of the Companies Act 2006Riordan O'Sullivan & Co, Chartered Certified Accountants and Statutory Auditors are deemed to be reappointed as auditors.

This report was approved by the board on 16 August 2024 and signed on its behalf.
 





___________________________
J P Sweeney
Director

Page 5

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF J.J.SWEENEY HOLDINGS LIMITED
 

Opinion


We have audited the financial statements of J.J.Sweeney Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 August 2023, which comprise the Consolidated Profit and Loss Account, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 August 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 6

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF J.J.SWEENEY HOLDINGS LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the 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:


adequate accounting records have not been kept by the parent Company; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 4, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF J.J.SWEENEY HOLDINGS LIMITED (CONTINUED)

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 an Auditors' 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 Group financial statements.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory framework applicable to the group, company and the industry in which it operates, through discussions with directors and senior management and from our commercial knowledge and experience of the construction industry.
We focused on specific laws and regulations which we considered may have a material effect on the financial statements or the operations of the group and company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation.
We assessed the extent of compliance with these laws and regulations through discussions and enquiry with directors and senior management. 
We assessed the susceptibility of the group’s and company's financial statements to material misstatement, including how fraud might occur.
We considered the financial controls in place to mitigate risks of fraud and error, including the risk of management bias or override. We tested the appropriateness of journal entries that appeared unusual as to nature or amount.
Our audit procedures were designed to respond to the risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment or collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations are from financial transactions, the less likely we are to become aware of it.


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 Auditors' Report.


Page 8

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF J.J.SWEENEY HOLDINGS LIMITED (CONTINUED)

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 2006Our 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 Auditors' 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.





Kumar Perumal (Senior Statutory Auditor)
for and on behalf of
Riordan O'Sullivan & Co
Chartered Certified Accountants and Statutory Auditors
40 Chamberlayne Road
London
NW10 3JE

16 August 2024
Page 9

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 AUGUST 2023

3 months ended 31 August 2023
Note
£

  

Turnover
 4 
7,706,819

Cost of sales
  
(6,494,035)

Gross profit
  
1,212,784

Administrative expenses
  
(375,429)

Operating profit
 5 
837,355

Interest receivable and similar income
 9 
105,300

Interest payable and similar expenses
 10 
(1,155)

Profit before tax
  
941,500

Taxation
 11 
(228,768)

Profit for the financial year
  
712,732

Profit for the year attributable to:
  

Owners of the parent
  
712,732

Page 10

 
J.J.SWEENEY HOLDINGS LIMITED
REGISTERED NUMBER:14667775

CONSOLIDATED BALANCE SHEET
AS AT 31 AUGUST 2023

2023
Note
£

Fixed assets
  

Tangible assets
 12 
385,736

  
385,736

Current assets
  

Debtors
 14 
8,817,497

Cash at bank and in hand
  
9,575,077

  
18,392,574

Creditors: amounts falling due within one year
 15 
(5,319,264)

Net current assets
  
 
 
13,073,310

Total assets less current liabilities
  
13,459,046

Provisions for liabilities
  

Deferred tax
 17 
(68,023)

  
 
 
(68,023)

Net assets
  
13,391,023


Capital and reserves
  

Called up share capital 
 18 
5,000

Consolidated reserves
 19 
12,673,291

Profit and loss account
 19 
712,732

Equity attributable to owners of the parent company
  
13,391,023


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 August 2024.




___________________________
J P Sweeney
___________________________
P C Sweeney
Director
Director

The notes on pages 17 to 28 form part of these financial statements.

Page 11

 
J.J.SWEENEY HOLDINGS LIMITED
REGISTERED NUMBER:14667775

COMPANY BALANCE SHEET
AS AT 31 AUGUST 2023

2023
Note
£

Fixed assets
  

Investments
 13 
5,000

Current assets
  

Debtors
 14 
1,565,233

Creditors: amounts falling due within one year
 15 
(1,565,233)

Net current assets
  
 
 
-

Net assets
  
5,000


Capital and reserves
  

Called up share capital 
 18 
5,000

  
5,000


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 August 2024.


___________________________
J P Sweeney
___________________________
P C Sweeney
Director
Director

The notes on pages 17 to 28 form part of these financial statements.

Page 12

 
J.J.SWEENEY HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023


Called up share capital
Consolidated reserve
Profit and loss account
Total equity

£
£
£
£



Profit for the year
-
-
712,732
712,732

Acquisition of subsidiary
-
12,673,291
-
12,673,291

Shares issued
5,000
-
-
5,000


At 31 August 2023
5,000
12,673,291
712,732
13,391,023

The notes on pages 17 to 28 form part of these financial statements.

Page 13

 
J.J.SWEENEY HOLDINGS LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 AUGUST 2023


Called up share capital
Total equity

£
£

Shares issued
5,000
5,000


At 31 August 2023
5,000
5,000

The notes on pages 17 to 28 form part of these financial statements.

Page 14

 
J.J.SWEENEY HOLDINGS LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 AUGUST 2023

2023
£

Cash flows from operating activities

Profit for the financial year
712,732

Adjustments for:

Depreciation of tangible assets
18,615

Profit on disposal of tangible assets
(6,269)

Interest paid
1,155

Interest received
(105,300)

Taxation charge
228,768

Increase in debtors
(687,367)

Decrease in creditors
(267,185)

Corporation tax paid
(634,635)

Net cash generated from operating activities

(739,486)


Cash flows from investing activities

Purchase of tangible fixed assets
(307,370)

Sale of tangible fixed assets
15,693

Cash acquired at acquisition
10,502,095

Interest received
105,300

Net cash from investing activities

10,315,718

Cash flows from financing activities

Interest paid
(1,155)

Net cash used in financing activities
(1,155)

Cash and cash equivalents at the end of year
9,575,077


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
9,575,077


The notes on pages 17 to 28 form part of these financial statements.

Page 15

 
J.J.SWEENEY HOLDINGS LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 AUGUST 2023




Cash flows
Acquisition of subsidiaries
At 31 August 2023
£

£

£

Cash at bank and in hand

(927,018)

10,502,095

9,575,077

Debt due within 1 year

(1,565,233)

-

(1,565,233)


(2,492,251)
10,502,095
8,009,844

The notes on pages 17 to 28 form part of these financial statements.

Page 16

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

1.


General information

J.J.Sweeney Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3 Conqueror Court, Spilsby Road, Harold Hill, Romford, RM3 8SB. 
The group consists of J.J Sweeney Holdings Limited and its wholly owned subsidiary, J.J. Sweeney Limited which was acquired on 17 May 2023.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and Loss Account in these financial statements.

The financial statements are prepared in sterling, which is the functional currency of the group.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The group financial statements consolidate the financial statements of the company and its subsidiary undertaking using acquisition accounting at the balance sheet date. A subsidiary is an entity that is controlled by another entity, known as the parent. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. The results of subsidiary undertakings acquired or disposed of during a financial period are included from, or to, the effective date of acquisition or disposal. All financial statements are made up to 31 August each year. Intra group balance, sales and profits are eliminated fully on consolidation. Uniform accounting policies have been adopted across the group.

 
2.3

Going concern

The Directors' Report and the Strategic Report sets out the group's business activities, and highlights the factors which may impact on its financial performance, market position and future prospects.
The Strategic Report also provides information in relation to the group's financial and liquidity position, details of its financial instruments, management of capital and exposure to credit and liquidity risk.
The group has a strong balance sheet and a substantial order book for the twelve months from the date of approval of these financial statements and its forecasts indicate that it will continue to generate profit and positive cash flows for the foreseeable future.
As a consequence, the directors believe that the group has adequate resources to continue in operational existence and that it is well placed to continue to manage its business risks successfully. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 17

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.4

Turnover

Turnover from contracting activities is recognised at the fair value of the consideration received or receivable in the normal course of business, and is shown net of VAT. The fair value of  consideration  takes  into  account trade discounts, settlement discounts and volume rebates.

 
2.5

Operating leases

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.6

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.7

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.8

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.9

Taxation

The tax expense represents the sum of the tax currently payable.
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 group’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 liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Page 18

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Plant and machinery
-
4 years
Motor vehicles
-
4 years
Fixtures and fittings
-
5 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.11

Construction contracts

Amounts recoverable on contracts, including work-in-progress, are shown within debtors and are stated at  the net sales value of the work done after provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Turnover and related costs are recorded as contract activity progresses. An appropriate proportion of the anticipated contract profit or loss is recognised as the contract activity progresses commensurate with performance and anticipated final outcome. Excess progress payments are included in creditors as payments received on account.

 
2.12

Cash and cash equivalents

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


 
2.13

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 19

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

2.Accounting policies (continued)

 
2.14

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 
2.15

Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at  the discretion of the group.


3.


Judgements in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements under FRS 102 requires management to make estimates and assumptions that affect amounts recognised for assets and liabilities at the balance sheet date and the amounts of revenue and expenses incurred during the year. Actual outcome may therefore differ from these estimates and assumptions. The estimates and assumptions that have the most significant impact on the carrying values of assets and liabilities of the group within the next financial year are detailed as follows: 
Construction contracts   
Recognition of revenue and profit on long term contracts requires management judgement regarding the anticipated final outcome of individual contracts and of the proportion of works completed at the balance sheet date. Management undertakes detailed reviews on a monthly basis in order to exercise judgement over the outcome of each contract and the associated risks and opportunities.


4.


Turnover

The total turnover of the group for the year has been derived from its principal activity wholly undertaken in the UK.


5.


Operating profit

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

2023
£

Exchange differences
2,304

Depreciation of tangible fixed assets
18,615

Profit on disposal of tangible fixed assets
(6,269)

Operating lease charges
23,062

Page 20

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

6.


Auditors' remuneration

2023
£

Fee payable to the group's auditors in respect of:


Audit services
14,000

Accountancy and taxation services
21,000

35,000


7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Company
2023
2023
£
£


Wages and salaries
389,744
-

Social security costs
45,066
-

Pension costs
5,933
-

440,743
-


The average monthly number of employees, including the directors, during the year was as follows:



Group
Company
        2023
        2023
            No.
            No.







Directors
3
3



Admin/ Technical
15
-



Construction
11
-

29
3


8.


Directors' remuneration

2023
£

Directors' emoluments
42,628

Pension costs
330

42,958


Page 21

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

9.


Interest receivable

2023
£


Bank interest receivable
105,300


10.


Interest payable and similar expenses

2023
£


Other interest payable
1,155


11.


Taxation


2023
£

Corporation tax


Current tax on profits for the period
211,762


Deferred tax


Origination and reversal of timing differences
17,006


Total tax charge for the period
228,768
Page 22

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than the standard rate of corporation tax in the UK of 25%. The differences are explained below:

2023
£


Profit on ordinary activities before tax
941,500


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25%
235,375

Effects of:


Expenses not deductible for tax purposes
31,518

Difference in capital allowances and depreciation
(12,854)

Origination and reversal of timing differences
17,006

Non-taxable income
(6,409)

Profit on disposal of fixed assets
(1,567)

Effect of change in corporation tax rate
(34,301)

Total tax charge for the year
228,768

Page 23

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

12.


Tangible fixed assets

Group






Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


Additions
140,996
165,707
667
307,370


Business combination
161,063
148,822
141,092
450,977


Disposals
(33,855)
(26,927)
-
(60,782)



At 31 August 2023

268,204
287,602
141,759
697,565



Depreciation


Charge for the period
6,047
7,990
4,578
18,615


Business combination
147,378
90,165
107,029
344,572


Disposals
(33,855)
(17,503)
-
(51,358)



At 31 August 2023

119,570
80,652
111,607
311,829



Net book value



At 31 August 2023
148,634
206,950
30,152
385,736

Page 24

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

13.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


Additions
5,000



At 31 August 2023
5,000





Fixed asset investment represents the acquisition of the entire ordinary share capital of J.J Sweeney Ltd, a joinery and fit out contractors incorporated in England and Wales.



14.


Debtors

Group
Company
2023
2023
£
£


Amounts recoverable on long-term contracts
1,036,146
-

Trade debtors
134,186
-

Amounts owed by group undertaking
-
1,565,233

Amounts owed by related undertakings
7,231,478
-

Other debtors
273,082
-

Prepayments and accrued income
142,605
-

8,817,497
1,565,233


Other debtors represents VAT recoverable of £273,082.
Amounts owed by group and related undertakings are unsecured, interest free and payable on demand.

Page 25

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

15.


Creditors: Amounts falling due within one year

Group
Company
2023
2023
£
£

Trade creditors
1,692,779
-

Corporation tax
545,017
-

Other taxation and social security
104,286
-

Other creditors
1,587,622
1,565,233

Accruals and deferred income
1,389,560
-

5,319,264
1,565,233



16.


Financial instruments

Group
Company
2023
2023
£
£

Financial assets

Financial assets measured at fair value through profit or loss
9,575,077
-

Financial assets that are debt instruments measured at amortised cost
8,401,810
1,565,233

17,976,887
1,565,233


Financial liabilities

Financial liabilities measured at amortised cost
(4,669,961)
(1,565,233)

Page 26

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

17.


Deferred taxation


Group



2023


£






Charged to profit or loss
17,006


Arising on business combination
51,017



At end of year
68,023






Group
2023
£

Accelerated capital allowances
68,023


18.


Share capital

2023
£
Allotted, called up and fully paid


5,000 Ordinary shares shares of £1.00 each
5,000




19.


Reserves

Consolidated reserve

The company acquired the entire shareholdings of J.J.Sweeney Limited on 17 May 2023 via a share for share exchange. These acquisitions resulted in the following consolidated reserve:
 


£

Tangible fixed assets
106,405

Trade and other debtors
8,130,130

Cash and cash equivalent
10,502,095

Trade and other creditors
(6,060,339)


12,678,291

Consideration
(5,000)


Consolidated reserves
12,673,291

Page 27

 
J.J.SWEENEY HOLDINGS LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2023

20.


Pension commitments

The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £5,933. Contributions totalling £1,905 were payable to the fund at the balance sheet date.


21.


Commitments under operating leases

At 31 August 2023 the group had future annual minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
Group
£


Not later than 1 year
98,500

Later than 1 year and not later than 5 years
98,500


22.


Related party transactions

The group is related to Sweeney Estates Limited and Sweenvest Properties Limited by virtue of being under common control. 
During the period the group paid rent of £17,812 to a related entity.
Key management personnel
The remuneration of key management personnel, who are also directors, is disclosed in note 8.


23.


Post balance sheet events

There were no events since the year end which materially affected the group.


24.


Controlling party

J.J.Sweeney Holdings Limited is controlled by the directors of the group by virtue of their shareholdings.

Page 28