Company Registration No. 11006781 (England and Wales)
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
COMPANY INFORMATION
Directors
Mr L Richardson
Mr R I Armstong
Mrs E A Richardson
Mr N Richardson
Company number
11006781
Registered office
37 St. Michaels Lane
Leeds
United Kingdom
LS6 3BR
Auditor
TC Group
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 27
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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 9 to 27 show a profit before tax of £427,353 (2023 - £2,552,636) with reported shareholders’ funds of £2,716,379 (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.

CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Key performance indicators

We set out below the KPI’s which are key to the company:                            

2024
2023
2022
Turnover
10,393,153
14,368,427
11,789,913
Annual growth/(fall) in turnover
27.7%
21.9%
3.9%
Gross Profit
2,063,836
4,222,875
3,381,376
Shareholders' funds
2,716,379
2,811,812
2,135,209

On behalf of the board

Mr N Richardson
Director
19 August 2024
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of a holding company.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The directors do not recommend payment of a final 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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Mr N Richardson
Director
19 August 2024
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
- 5 -
Opinion

We have audited the financial statements of J A Richardson (Holdings) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
- 6 -

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

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:

 

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 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 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. 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.

CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
- 7 -
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:

 

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.

CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
- 8 -

Our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Peter Hart (Senior Statutory Auditor)
For and on behalf of TC Group
19 August 2024
Statutory Auditor
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
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
(1,705,905)
(1,676,376)
Other operating income
-
6,137
Operating profit
3
357,931
2,552,636
Interest receivable and similar income
6
77,433
-
0
Interest payable and similar expenses
7
(8,011)
-
0
Profit before taxation
427,353
2,552,636
Tax on profit
8
(5,630)
(511,365)
Profit for the financial year
421,723
2,041,271
Profit for the financial year is all attributable to the owners of the parent company.
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
386,956
406,491
Current assets
Stocks
13
807,319
1,403,906
Debtors
14
2,249,478
3,323,206
Cash at bank and in hand
2,392,473
3,119,945
5,449,270
7,847,057
Creditors: amounts falling due within one year
15
(3,029,387)
(5,345,727)
Net current assets
2,419,883
2,501,330
Total assets less current liabilities
2,806,839
2,907,821
Provisions for liabilities
Deferred tax liability
16
90,460
96,009
(90,460)
(96,009)
Net assets
2,716,379
2,811,812
Capital and reserves
Called up share capital
18
15,007
15,003
Profit and loss reserves
2,701,372
2,796,809
Total equity
2,716,379
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:
19 August 2024
Mr N Richardson
Director
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
11
15,003
15,003
Current assets
Cash at bank and in hand
1,137,719
1,902,221
Creditors: amounts falling due within one year
15
(1,137,731)
(1,902,221)
Net current liabilities
(12)
-
Net assets
14,991
15,003
Capital and reserves
Called up share capital
18
15,007
15,003
Profit and loss reserves
(16)
-
Total equity
14,991
15,003

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £517,144 (2023 - £1,364,667 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

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:
19 August 2024
Mr N Richardson
Director
Company Registration No. 11006781
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
GROUP 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
-
2,041,271
2,041,271
Dividends
9
-
(1,364,668)
(1,364,668)
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
-
421,723
421,723
Issue of share capital
18
4
-
4
Dividends
9
-
(517,160)
(517,160)
Balance at 31 March 2024
15,007
2,701,372
2,716,379
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
15,003
-
0
15,003
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
1,364,668
1,364,668
Dividends
9
-
(1,364,668)
(1,364,668)
Balance at 31 March 2023
15,003
-
0
15,003
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
517,144
517,144
Issue of share capital
18
4
-
4
Dividends
9
-
(517,160)
(517,160)
Balance at 31 March 2024
15,007
(16)
14,991
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
136,284
1,903,535
Interest paid
(8,011)
-
0
Income taxes paid
(307,198)
(143,558)
Net cash (outflow)/inflow from operating activities
(178,925)
1,759,977
Investing activities
Purchase of tangible fixed assets
(114,441)
(204,422)
Proceeds on disposal of tangible fixed assets
5,617
29,167
Interest received
77,433
-
0
Net cash used in investing activities
(31,391)
(175,255)
Financing activities
Proceeds from issue of shares
4
-
Dividends paid to equity shareholders
(517,161)
(1,364,668)
Net cash used in financing activities
(517,157)
(1,364,668)
Net (decrease)/increase in cash and cash equivalents
(727,473)
220,054
Cash and cash equivalents at beginning of year
3,119,945
2,899,891
Cash and cash equivalents at end of year
2,392,473
3,119,945
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
1
Accounting policies
Company information

J A Richardson (Holdings) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 37 St. Michaels Lane, Leeds, United Kingdom, LS6 3BR.

 

The group consists of J A Richardson (Holdings) Limited and all of its subsidiaries.

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.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company J A Richardson (Holdings) Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

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

 

 

 

CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.5
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.

1.6
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.

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
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 recognised in the profit and loss account.

1.7
Fixed asset investments

Investment in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit and loss.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
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.

1.10
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.

1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
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.

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 group 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
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.

 

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 if, and only if, there is 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.

1.14
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.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.16
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 leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
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:
Depreciation of owned tangible fixed assets
128,359
99,674
Operating lease charges
55,000
55,000
4
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
19,200
19,410
5
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
63
64
-
0
-
0
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,979,632
3,699,836
-
0
-
0
Social security costs
259,422
-
-
-
Pension costs
101,377
66,521
-
0
-
0
3,340,431
3,766,357
-
0
-
0
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
77,433
-
0

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)
-
0
Total current tax
11,179
476,694
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
2024
2023
£
£
(Continued)
- 23 -
Deferred tax
Origination and reversal of timing differences
(5,549)
34,671
Total tax charge
5,630
511,365
9
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
517,160
1,364,668
10
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
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
-
0
-
0
(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
-
0
-
0
(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
The company had no tangible fixed assets at 31 March 2024 or 31 March 2023.
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
15,003
15,003
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
15,003
Carrying amount
At 31 March 2024
15,003
At 31 March 2023
15,003
12
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
J.A. Richardson (Electrical) Limited
37 St Michaels Lane, Leeds, LS6 3BR, United Kingdom
Ordinary
100
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
792,329
1,381,445
-
-
Finished goods and goods for resale
14,990
22,461
-
0
-
0
807,319
1,403,906
-
-
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,011,649
3,105,981
-
0
-
0
Other debtors
-
80
-
0
-
0
Prepayments and accrued income
237,829
217,145
-
0
-
0
2,249,478
3,323,206
-
-
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
1,126,872
1,718,733
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
280,921
226,619
Corporation tax payable
37,117
333,136
-
0
-
0
Other taxation and social security
108,735
303,712
-
-
Other creditors
872,892
1,759,090
856,810
1,675,602
Accruals and deferred income
883,771
1,231,056
-
0
-
0
3,029,387
5,345,727
1,137,731
1,902,221
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
90,460
96,009
The company has no deferred tax assets or liabilities.
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
16
Deferred taxation
(Continued)
- 26 -
Group
Company
2024
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
-
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
101,377
66,521

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

18
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
15,000 Ordinary shares of £1 each
15,000
15,000
15,000
15,000
1 Ordinary B share of £1 each
1
1
1
1
1 Ordinary C share of £1 each
1
1
1
1
1 Ordinary D share of £1 each
1
1
1
1
1 Ordinary E share of £1 each
1
-
1
-
1 Ordinary F share of £1 each
1
-
1
-
1 Ordinary G share of £1 each
1
-
1
-
1 Ordinary H share of £1 each
1
-
1
-
15,007
15,003
15,007
15,003
CONSOLIDATED RECORD FOR J A RICHARDSON (HOLDINGS) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
19
Operating lease commitments
Lessee

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

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
56,526
55,000
-
-
Between two and five years
4,883
-
-
-
61,409
55,000
-
-
20
Controlling party

The ultimate controlling party is L Richardson.

21
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
421,723
2,041,271
Adjustments for:
Taxation charged
5,630
511,365
Finance costs
8,011
-
0
Investment income
(77,433)
-
0
Depreciation and impairment of tangible fixed assets
128,359
99,674
Movements in working capital:
Decrease/(increase) in stocks
596,587
(242,717)
Decrease/(increase) in debtors
1,073,728
(1,636,905)
(Decrease)/increase in creditors
(2,020,321)
1,130,847
Cash generated from operations
136,284
1,903,535
22
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
3,119,945
(727,472)
2,392,473
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