Company registration number 13866349 (England and Wales)
FUTURE WATER MJJV LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
FUTURE WATER MJJV LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 5
FUTURE WATER MJJV LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Current assets
Trade and other receivables
4
3,764,494
451,094
Cash and cash equivalents
3,076,913
4,565,906
6,841,407
5,017,000
Current liabilities
5
(6,235,301)
(4,762,354)
Net current assets
606,106
254,646
Non-current liabilities
6
(604,106)
(252,646)
Net assets
2,000
2,000
Equity
Called up share capital
7
2,000
2,000

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

These financial statements have been prepared and delivered 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 11 July 2024 and are signed on its behalf by:
Mr B A Hamer
Director
Company registration number 13866349 (England and Wales)
FUTURE WATER MJJV LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
1
Accounting policies
Company information

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.

1.1
Reporting period

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.

1.2
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

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.

1.3
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. The directors have considered relevant information, including the company’s principal risks and uncertainties, the annual budget, forecast future cash flows and the impact of subsequent events in making their assessment. Based on these assessments and having regard to the resources available to the entity, the directors have concluded that there is no material uncertainty and that they can continue to adopt the going concern basis in preparing the annual report and financial statements.true

1.4
Revenue

Revenue is recognised at the fair value of the consideration received or receivable for construction services provided in the normal course of business, and is shown net of VAT and trade discounts.

Revenue from contracts for the provision of construction 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.

1.5
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

FUTURE WATER MJJV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 3 -

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.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include deposits held at call with banks.

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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include other receivables and cash and bank balances, are initially measured at transaction price including transaction costs.

Basic financial liabilities

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.

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.

FUTURE WATER MJJV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Construction contracts

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.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was 4 (2022 - 2).

4
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Other receivables
3,764,494
451,094
5
Current liabilities
2023
2022
£
£
Trade payables
5,375,276
3,061,456
Taxation and social security
359,844
979,477
Other payables
500,181
721,421
6,235,301
4,762,354
6
Non-current liabilities
2023
2022
£
£
Other payables
604,106
252,646
FUTURE WATER MJJV LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
7
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
2,000
2,000
2,000
2,000

Ordinary shares have attached to them full voting, dividend and capital distribution (including on winding up) rights.

8
Audit report information

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.

Senior Statutory Auditor:
Robert Dowling FCA
Statutory Auditor:
Sumer Audit
Date of audit report:
11 July 2024
Sumer Audit is the trading name of Sumer Auditco Limited
9
Financial commitments, guarantees and contingent liabilities

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.

10
Related party transactions

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).

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