Future Water MJJV Limited is a private company limited by shares incorporated in England and Wales. The registered office is Bankside House, Henfield Road, Small Dole, West Sussex, BN5 9XQ.
The financial statements have been prepared for the year ending 31 December 2023, whereas the comparative period is for the 11 month period from 24 January 2022 to 31 December 2022 and this was due to the previous period being the period of incorporation. As a result, the comparative period amounts presented in these financial statements will not be entirely comparable.
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.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
Basic financial assets, which include other receivables and cash and bank balances, are initially measured at transaction price including transaction costs.
Basic financial liabilities, including trade and other payables are initially recognised at transaction price.
Trade payables 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.
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.
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Revenue derived from construction services include a judgement of the stage of completion at the period end. This judgement is used to determine the amount of revenue and profit to recognise in relation to each contract, which is still ongoing at the end of the reporting period. The stage of completion is calculated based on the assessment of qualified quantity surveyors of the costs incurred for work performed in conjunction with expected final contract costs and overall profitability.
The average monthly number of persons (including directors) employed by the company during the year was
Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights.
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
There is a cross guarantee and indemnity between the companies, J.T. Mackley & Co. Limited, Van Oord Dredging and Marine Contractors B.V, Jones Bros. Ruthin (Civil Engineering) Co. Limited and Jones Bros. Ruthin Co Limited dated 7 July 2023 in relation to one ongoing contract with the guarantors each guaranteeing their respective performance, obligations and liabilities under the shareholder's joint venture agreement within Future Water MJJV Limited.
Van Oord Dredging and Marine Contractors B.V and Jones Bros. Ruthin Co Limited have both entered into parent company guarantees with Portsmouth Water Limited. This is in relation to the design and build contract for the main reservoir works being undertaken. The guarantee covers all works and activities carried out by each respective party's subsidiary company as part of the contract.
During the period, the company incurred subcontractor contract costs totalling £8,032,309 (2022 - £3,925,465) and management charges of £167,954 (2022 - £63,860) from J T Mackley & Co Limited, who own 50% of the issued share capital of the company. At the period end, included in trade payables and other non current payables, were total amounts owed to that company of £2,496,342 (2022 - £1,107,839).
During the period, the company incurred subcontractor contract costs totalling £6,954,958 (2022 - £5,758,549) and management charges of £167,954 (2022 - £63,860) from Jones Bros. Ruthin (Civil Engineering) Co. Limited, who own 50% of the issued share capital of the company. At the period end, included in trade payables and other non current payables, were total amounts owed to that company of £2,071,922 (2022 - £1,513,591).