Company Registration No. 00761378 (England and Wales)
J A RICHARDSON (ELECTRICAL) LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2024
J A RICHARDSON (ELECTRICAL) LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 22
J A RICHARDSON (ELECTRICAL) LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr L Richardson
Mr R I Armstong
Mrs E A Richardson
Mr N Richardson
Secretary
Mrs E A Richardson
Company number
00761378
Registered office
37 St. Michaels Lane
Leeds
United Kingdom
LS6 3BR
Auditor
TC Group
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
J A RICHARDSON (ELECTRICAL) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
The directors present the strategic report for the year ended 31 March 2024.
Fair review of the business
The results for the year, as set out in pages 10 to 22 show a profit before tax of £427,369 (2023 - £2,553,030) with reported shareholders’ funds of £2,716,391 (2023 - £2,811,812).
Company activities
The company provides electrical engineering and contracting services to a wide range of clients in numerous different sectors. Clients range from blue chip PLC businesses through to public sector bodies and owner managed companies.
By providing well managed and engineered solutions with the highest standards of installation whilst also keeping prices competitive, we have developed many long lasting relationships with our clients resulting in a high level of repeat business.
Our many years of experience in the industry have given us a comprehensive understanding of the commercial and engineering risks associated with our activities, which allow us to make well informed decisions about our strategic objectives to grow the business whilst continuing to provide high levels of service to our clients.
We remain committed to our apprentice training program which allows us to develop the skills, culture and values required to enable us to continue to provide our clients with the high technical, installation and service standards on which our business is based.
Strategy
Our strategy is to continue to maintain our high standards of service, whilst keeping overheads at a manageable level giving us the commercial flexibility to allow us to quickly adapt to changing market conditions.
We continue to focus on limiting our exposure to unnecessary or onerous commercial or engineering risks.
We are certified and accredited members of the ECA, JIB, NICEIC, Construction Line (Gold), Safe Contractor and Acclaim SSIPs, and operate an NQA certified quality management system to ISO9001.
Principal risks and uncertainties
The state of the UK economy can have a big impact on the volume of work and profitability of our business. Margins tend to be reduced in periods of low growth and recession so we are continuously trying to insulate ourselves from some of this impact by finding work in niche sectors that may be less susceptible to macro economic forces.
A proportion of our sales are based on government investment. If the present government plans to reduce spending this could have an impact on our business however we are well practised at dealing with this type of situation and have learnt to maintain a level of flexibility to allow us to quickly adapt should the need arise.
Development and performance
The current economic uncertainty in the UK will inevitably have an impact on the volume of sales and the profitablilty in the coming year. We will continue to work towards minimising the impact on the company by seeking to develop existing relationships and looking for new opportunities within our existing areas of expertise.
J A RICHARDSON (ELECTRICAL) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Key performance indicators
Set out below are the KPI's considered key to the company:
2024
2023
2022
Turnover
10,393,153
14,368,427
11,789,912
Annual growth/(fall) in turnover
-27.7%
21.9%
3.9%
Gross profit
2,063,836
4,222,875
3,381,378
Shareholders' funds
2,716,379
2,811,812
2,135,209
Mr N Richardson
Director
19 August 2024
J A RICHARDSON (ELECTRICAL) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
The directors present their annual report and financial statements for the year ended 31 March 2024.
Principal activities
The principal activity of the company was that of electrical contractors.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £517,160. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr L Richardson
Mr R I Armstong
Mrs E A Richardson
Mr N Richardson
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.
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr N Richardson
Director
19 August 2024
J A RICHARDSON (ELECTRICAL) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -
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:
select suitable accounting policies 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 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.
J A RICHARDSON (ELECTRICAL) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J A RICHARDSON (ELECTRICAL) LIMITED
- 6 -
Opinion
We have audited the financial statements of J A Richardson (Electrical) Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:
give a true and fair view of the state of the company's affairs as at 31 March 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.
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.
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 A RICHARDSON (ELECTRICAL) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J A RICHARDSON (ELECTRICAL) 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:
the information given in the 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 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 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:
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 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, 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.
J A RICHARDSON (ELECTRICAL) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J A RICHARDSON (ELECTRICAL) LIMITED
- 8 -
Extent to which the audit was capable of detecting irregularities, including fraud
The objectives of our audit, in respect of 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.
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006), the relevant tax compliance regulations in the UK, health and safety regulations and employment law;
We considered the nature of the industry, the control environment and business performance, including key drivers for management's remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes.
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 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 material 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 all non-compliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
J A RICHARDSON (ELECTRICAL) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J A RICHARDSON (ELECTRICAL) LIMITED
- 9 -
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.
Peter Hart (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
19 August 2024
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
J A RICHARDSON (ELECTRICAL) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
Turnover
10,393,153
14,368,427
Cost of sales
(8,329,317)
(10,145,552)
Gross profit
2,063,836
4,222,875
Administrative expenses
(1,705,889)
(1,675,982)
Other operating income
6,137
Operating profit
3
357,947
2,553,030
Interest receivable and similar income
6
77,433
Interest payable and similar expenses
7
(8,011)
Profit before taxation
427,369
2,553,030
Tax on profit
8
(5,630)
(511,365)
Profit for the financial year
421,739
2,041,665
The profit and loss account has been prepared on the basis that all operations are continuing operations.
J A RICHARDSON (ELECTRICAL) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
386,956
406,491
Current assets
Stocks
11
807,319
1,403,906
Debtors
12
2,530,399
3,549,825
Cash at bank and in hand
1,254,754
1,217,724
4,592,472
6,171,455
Creditors: amounts falling due within one year
13
(2,172,577)
(3,670,125)
Net current assets
2,419,895
2,501,330
Total assets less current liabilities
2,806,851
2,907,821
Provisions for liabilities
Deferred tax liability
14
90,460
96,009
(90,460)
(96,009)
Net assets
2,716,391
2,811,812
Capital and reserves
Called up share capital
16
15,003
15,003
Profit and loss reserves
2,701,388
2,796,809
Total equity
2,716,391
2,811,812
The financial statements were approved by the board of directors and authorised for issue on 19 August 2024 and are signed on its behalf by:
Mr N Richardson
Director
Company Registration No. 00761378
J A RICHARDSON (ELECTRICAL) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
15,003
2,120,206
2,135,209
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
2,041,665
2,041,665
Dividends
9
-
(1,365,062)
(1,365,062)
Balance at 31 March 2023
15,003
2,796,809
2,811,812
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
421,739
421,739
Dividends
9
-
(517,160)
(517,160)
Balance at 31 March 2024
15,003
2,701,388
2,716,391
J A RICHARDSON (ELECTRICAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information
J A Richardson (Electrical) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 37 St. Michaels Lane, Leeds, United Kingdom, LS6 3BR.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
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
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
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 A RICHARDSON (ELECTRICAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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:
Plant and equipment
25% reducing balance
Fixtures and fittings & equipment
25% 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
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash and cash equivalents
Cash and cash equivalents 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, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
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. Financial assets classified as receivable within one year are not amortised.
J A RICHARDSON (ELECTRICAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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.
Basic financial liabilities
Basic financial liabilities including creditors 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.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
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 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.
J A RICHARDSON (ELECTRICAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
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.
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.
J A RICHARDSON (ELECTRICAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Contract Accounting
The company engages in contracts of variable lengths and complexity. As a result it is necessary to estimate the likely and profitability at completion of individual contracts. When considering this outcome, the directors will consider the latest income and expenditure position on all on-going contracts in determining the likely and recoverable position. The carrying value of all the contracts is included in stock on the balance sheet.
3
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
17,028
19,200
Depreciation of owned tangible fixed assets
128,359
99,674
Operating lease charges
55,000
55,000
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
63
64
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,979,632
3,699,836
Social security costs
259,422
-
Pension costs
101,377
66,521
3,340,431
3,766,357
J A RICHARDSON (ELECTRICAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
5
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
59,185
56,943
Company pension contributions to defined contribution schemes
11,947
10,579
71,132
67,522
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
77,433
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
77,433
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
8,011
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
37,117
476,694
Adjustments in respect of prior periods
(25,938)
Total current tax
11,179
476,694
Deferred tax
Origination and reversal of timing differences
(5,549)
34,671
Total tax charge
5,630
511,365
J A RICHARDSON (ELECTRICAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
(Continued)
- 19 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
427,369
2,553,030
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
106,842
485,076
Tax effect of expenses that are not deductible in determining taxable profit
13,471
16,526
Adjustments in respect of prior years
(83,614)
Group relief
(103)
Permanent capital allowances in excess of depreciation
521
(11,389)
Under/(over) provided in prior years
(25,938)
Deferred tax adjustments in respect of prior years
(5,549)
21,152
Taxation charge for the year
5,630
511,365
9
Dividends
2024
2023
£
£
Final paid
517,160
1,365,062
J A RICHARDSON (ELECTRICAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings & equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
236,053
366,946
475,976
1,078,975
Additions
2,185
16,288
95,968
114,441
Disposals
(26,680)
(26,680)
At 31 March 2024
238,238
383,234
545,264
1,166,736
Depreciation and impairment
At 1 April 2023
168,441
290,660
213,383
672,484
Depreciation charged in the year
17,444
24,595
86,320
128,359
Eliminated in respect of disposals
(21,063)
(21,063)
At 31 March 2024
185,885
315,255
278,640
779,780
Carrying amount
At 31 March 2024
52,353
67,979
266,624
386,956
At 31 March 2023
67,612
76,286
262,593
406,491
11
Stocks
2024
2023
£
£
Work in progress
792,329
1,381,445
Finished goods and goods for resale
14,990
22,461
807,319
1,403,906
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,011,649
3,105,981
Amounts owed by group undertakings
280,921
226,619
Other debtors
80
Prepayments and accrued income
237,829
217,145
2,530,399
3,549,825
J A RICHARDSON (ELECTRICAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
13
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
1,126,872
1,718,733
Corporation tax
37,117
333,136
Other taxation and social security
108,735
303,712
Other creditors
16,082
83,488
Accruals and deferred income
883,771
1,231,056
2,172,577
3,670,125
14
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
90,460
96,009
2024
Movements in the year:
£
Liability at 1 April 2023
96,009
Credit to profit or loss
(5,549)
Liability at 31 March 2024
90,460
15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
101,377
66,521
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 A RICHARDSON (ELECTRICAL) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
16
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
15,000
15,000
15,000
15,000
Ordinary B share of £1 each
1
1
1
1
Ordinary C share of £1 each
1
1
1
1
Ordinary D share of £1 each
1
1
1
1
15,003
15,003
15,003
15,003
17
Operating lease commitments
Lessee
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
2023
£
£
Within one year
56,526
55,000
Between two and five years
4,883
In over five years
61,409
55,000
18
Ultimate controlling party
The ultimate controlling party is L Richardson.
19
Related party transactions
During the year the company paid rent of £55,000 (2023: £55,000) to Mr L Richardson.
2024-03-312023-04-01falseCCH SoftwareCCH Accounts Production 2024.100Mr L RichardsonMr R I ArmstongMr N RichardsonMr Nicholas RichardsonMrs E A Richardsonfalsefalse007613782023-04-012024-03-3100761378bus:Director12023-04-012024-03-3100761378bus:Director22023-04-012024-03-3100761378bus:CompanySecretaryDirector12023-04-012024-03-3100761378bus:Director32023-04-012024-03-3100761378bus:CompanySecretary12023-04-012024-03-3100761378bus:Director42023-04-012024-03-3100761378bus:RegisteredOffice2023-04-012024-03-31007613782024-03-31007613782022-04-012023-03-3100761378core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3100761378core:RetainedEarningsAccumulatedLosses2023-04-012024-03-31007613782023-03-3100761378core:PlantMachinery2024-03-3100761378core:FurnitureFittings2024-03-3100761378core:MotorVehicles2024-03-3100761378core:PlantMachinery2023-03-3100761378core:FurnitureFittings2023-03-3100761378core:MotorVehicles2023-03-3100761378core:CurrentFinancialInstrumentscore:WithinOneYear2024-03-3100761378core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3100761378core:CurrentFinancialInstruments2024-03-3100761378core:CurrentFinancialInstruments2023-03-3100761378core:ShareCapital2024-03-3100761378core:ShareCapital2023-03-3100761378core:RetainedEarningsAccumulatedLosses2024-03-3100761378core:RetainedEarningsAccumulatedLosses2023-03-3100761378core:ShareCapital2022-03-3100761378core:RetainedEarningsAccumulatedLosses2022-03-31007613782022-03-3100761378core:ShareCapitalOrdinaryShares2024-03-3100761378core:ShareCapitalOrdinaryShares2023-03-3100761378core:PlantMachinery2023-04-012024-03-3100761378core:FurnitureFittings2023-04-012024-03-3100761378core:MotorVehicles2023-04-012024-03-3100761378core:UKTax2023-04-012024-03-3100761378core:UKTax2022-04-012023-03-310076137812023-04-012024-03-310076137812022-04-012023-03-3100761378core:PlantMachinery2023-03-3100761378core:FurnitureFittings2023-03-3100761378core:MotorVehicles2023-03-31007613782023-03-3100761378core:WithinOneYear2024-03-3100761378core:WithinOneYear2023-03-3100761378core:BetweenTwoFiveYears2024-03-3100761378core:BetweenTwoFiveYears2023-03-3100761378core:MoreThanFiveYears2024-03-3100761378core:MoreThanFiveYears2023-03-3100761378bus:PrivateLimitedCompanyLtd2023-04-012024-03-3100761378bus:FRS1022023-04-012024-03-3100761378bus:Audited2023-04-012024-03-3100761378bus:FullAccounts2023-04-012024-03-31xbrli:purexbrli:sharesiso4217:GBP