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REGISTERED NUMBER: 05076612 (England and Wales)






















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023

FOR

ASH CONTRACTING LIMITED

ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)






CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Profit and Loss Account 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


ASH CONTRACTING LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2023







DIRECTORS: D Clarke
D Cooper
M J Cox
J M Green
R Holmes
C J Hough
P D Seex
P C Tester
A Abdulkareem





REGISTERED OFFICE: 83 Cambridge Street
Pimlico
London
SW1V 4PS





REGISTERED NUMBER: 05076612 (England and Wales)





AUDITORS: George Hay & Company
Chartered Accountants
& Statutory Auditors
83 Cambridge Street
London
SW1V 4PS

ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

The directors present their strategic report for the year ended 31st December 2023.

REVIEW OF BUSINESS
The principal activity of the company continued to be that of construction in the educational, commercial and ecclesiastical sectors.

Turnover has decreased by 17% from the previous year in part due to the targeting of smaller and simpler projects. We have concluded that larger projects, especially if they are design & build are likely to pose more risk and generate less profit for the company and we have adjusted our marketing dynamic accordingly.

The first quarter of 2023 was reasonable. However, the third and fourth quarters of 2023 saw a considerable rise in turnover and profit was good given the level of turnover. Given the healthy profits the company made tax-free bonus payments to staff which accounted for approximately 10% of our profit.

PRINCIPAL RISKS AND UNCERTAINTIES
The company's key financial instruments comprise of trade debtors and sales retentions, cash at bank and bank loans, trade creditors and subcontractors retentions.

The company is exposed to risks including credit risk, liquidity risk, cash flow risk, market risk, competition risk and laws and regulations risk, all of which arise from the company's normal business activities. The board reviews and agrees policies for managing each of these risks and they are summarised below:

Credit risk
The company monitors credit risk closely and considers that its current policies of credit checks and credit limits meet its objectives of managing exposure to credit risk.

Liquidity risk
The company closely monitors its bank balance and other credit facilities in comparison to its outstanding commitments to ensure it has sufficient funds to meet its obligations as they fall due.

Cash flow risk
Remains low due to the sectors chosen and agreed beneficial payment terms.

Market risk
Demand for the services of the company is cyclical and dependent on the economic environment. Any significant changes to our clients' working practices or a downturn in the economy, could result in the deferment or cancelling of expenditure. The company earns revenues from multiple sectors, and continues to make a concerted effort to strengthen relationships in these sectors. However, the VAT changes to Private Education is likely to impact turnover/profit late 2024.

Competition risk
The company is exposed to competition risk as the industry in which the company operates is mature and highly competitive. The conversion rate from tendering to secured work is maximised by careful selection of customers and suppliers in order to preserve our brand and work collaboratively.

Laws and regulations risk
The company carries out activities in environments which could cause serious injury to its staff, subcontractors and members of the public. The company has an active policy of training employees and commissioning independent third parties to carry out regular site checks. The company is committed to achieving the highest standards on health and safety.

Other risk
Increased corporation tax burden and VAT on private schools are potential risks faced by the company moving forward.

We are endeavouring to make allowances for these risks within the contracts we undertake.





ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023


New Subsidiary
The formation of Ash Capital Projects Ltd within the Group was particularly successful and has consolidated the client base.


FINANCIAL KEY PERFORMANCE INDICATORS
The financial key performance indicators used by the directors to assess the performance of the business are turnover, gross profit margin, net profit before tax and net assets. A brief analysis of these is provided below:

2023 2022
£ £
Turnover 25,920,376 31,353,314
Gross profit margin 10.87% 7.21%
Net profit before tax 826,244 349,696
Net assets 1,906,260 1,510,016









ON BEHALF OF THE BOARD:





D Cooper - Director


29th August 2024

ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023

The directors present their report with the financial statements of the company for the year ended 31st December 2023.

DIVIDENDS
The total distribution of dividends for the year ended 31st December 2023 was £10,000 (2022: £91,999).

DIRECTORS
The directors shown below have held office during the whole of the period from 1st January 2023 to the date of this report.

D Clarke
D Cooper
M J Cox
J M Green
R Holmes
C J Hough
P D Seex
P C Tester

Other changes in directors holding office are as follows:

T J Payne - resigned 31st March 2023

A Abdulkareem was appointed as a director after 31st December 2023 but prior to the date of this report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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;
-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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023


AUDITORS
The auditors, George Hay & Company, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D Cooper - Director


29th August 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ASH CONTRACTING LIMITED

Opinion
We have audited the financial statements of Ash Contracting Limited (the 'company') for the year ended 31st December 2023 which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 31st December 2023 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.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ASH CONTRACTING LIMITED


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 Report of the Directors.

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:
- 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 directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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.

Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the company's operations, we identified that the principal risks of non-compliance with laws and regulations relates to construction contracting regulations. We considered the extent to which non-compliance might have a material effect on the financial statements that results in the situation where no further construction services can be provided for. We also considered the relevant laws and regulations that have a direct impact on the preparation of the financial statements such as the income tax.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements, (including the risk of override of controls) and determined there were no principal risks directly impacting the company's revenue and management bias in accounting estimates.

Audit procedures performed by the engagement team included:
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Evaluating management's controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual account combinations or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ASH CONTRACTING LIMITED


Use of our report
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 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 a Report of the Auditors 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.




Marino Achilleos FCCA (Senior Statutory Auditor)
for and on behalf of George Hay & Company
Chartered Accountants
& Statutory Auditors
83 Cambridge Street
London
SW1V 4PS

29th August 2024

ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 25,920,376 31,353,314

Cost of sales 23,101,958 29,091,944
GROSS PROFIT 2,818,418 2,261,370

Administrative expenses 1,997,991 2,070,046
820,427 191,324

Other operating income - 166,600
OPERATING PROFIT 6 820,427 357,924

Interest receivable and similar income 19,034 5,070
839,461 362,994

Interest payable and similar expenses 8 13,217 13,298
PROFIT BEFORE TAXATION 826,244 349,696

Tax on profit 9 - (153,409 )
PROFIT FOR THE FINANCIAL YEAR 826,244 503,105

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

826,244

503,105

ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

BALANCE SHEET
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 28,927 39,587

CURRENT ASSETS
Debtors 12 5,074,141 3,882,217
Cash at bank 2,384,168 2,503,453
7,458,309 6,385,670
CREDITORS
Amounts falling due within one year 13 5,362,134 4,673,573
NET CURRENT ASSETS 2,096,175 1,712,097
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,125,102

1,751,684

CREDITORS
Amounts falling due after more than one
year

14

(141,669

)

(241,668

)

PROVISIONS FOR LIABILITIES 18 (77,173 ) -
NET ASSETS 1,906,260 1,510,016

CAPITAL AND RESERVES
Called up share capital 19 107,624 107,624
Share premium 173,976 173,976
Retained earnings 1,624,660 1,228,416
SHAREHOLDER FUNDS 1,906,260 1,510,016

The financial statements were approved by the Board of Directors and authorised for issue on 29th August 2024 and were signed on its behalf by:





D Cooper - Director


ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31ST DECEMBER 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1st January 2022 107,624 1,269,310 173,976 1,550,910

Changes in equity
Dividends - (91,999 ) - (91,999 )
Total comprehensive income - 503,105 - 503,105
Capital contributions to
Employee Ownership Trust - (452,000 ) - (452,000 )
Balance at 31st December 2022 107,624 1,228,416 173,976 1,510,016

Changes in equity
Dividends - (10,000 ) - (10,000 )
Total comprehensive income - 826,244 - 826,244
Capital contributions to
Employee Ownership Trust - (420,000 ) - (420,000 )
Balance at 31st December 2023 107,624 1,624,660 173,976 1,906,260

ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

1. STATUTORY INFORMATION

Ash Contracting Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


The principal trading address is 4 The Courtyard, Birling Road, Ryarsh, West Malling, ME19 5AA.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and
11.48(c);
the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirement of paragraph 33.7.

The information is included in the consolidated financial statements of Ash Connect Limited as at 31 December 2023 and these financial statements may be obtained from 4 The Courtyard, Birling Road, Ryarsh, West Malling, ME19 5AA.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Critical accounting judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated by the directors and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The company makes estimates and assumptions concerning the future. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or the period of the revision and future periods where the revision affects both current and future periods.

The directors consider there to be no significant areas of judgements or key sources of estimation uncertainty.

ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from construction contracts
Revenue and costs are recognised over time with reference to the stage of completion of the contract activity at the balance sheet date where the outcome of a contract can be estimated reliably. This is normally measured by surveys of work performed to date. Variations in contract work and claims are included to the extent that it is highly probable that they will result in revenue and they are capable of being reliably measured.

Where the outcome of a long term contract cannot be estimated reliably, contract revenue where recoverability is probable is recognised to the extent of contract costs incurred. The costs associated with fulfilling a contract are recognised as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 25% reducing balance
Motor vehicles - 25% reducing balance

Financial instruments
The company enters into basic financial transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and investments in non-puttable ordinary shares.

Cash is represented by cash at bank and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

Basic financial instruments that are receivable or payable within one year are initially measured at the undiscounted amount of the consideration expected. If receivable or payable after more than one year, basic financial instruments are initially measured at the present value of the future cash flows and subsequently at amortised cost using the effective interest method. If the arrangement constitutes a financing transaction, the financial instrument is measured initially at the present value of the future cash flows, discounted at a market rate of interest. They are subsequently carried at amortised cost, using the effective interest rate method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an 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.

Financial liabilities and equity instruments are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received.


ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

2. ACCOUNTING POLICIES - continued
Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee ownership trust
Contributions to the Employee Ownership Trust are recognised when paid.

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Construction Services 25,920,376 31,353,314
25,920,376 31,353,314

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 25,920,376 31,353,314
25,920,376 31,353,314

ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,659,185 3,030,843
Social security costs 320,908 467,039
Other pension costs 145,755 162,775
3,125,848 3,660,657

The average number of employees during the year was as follows:
2023 2022

Production staff 27 40
Administrative staff 16 29
Management 8 8
51 77

5. DIRECTORS' EMOLUMENTS
2023 2022
£    £   
Directors' remuneration 672,382 669,579
Directors' pension contributions to money purchase schemes 93,627 91,312

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 7 7

Information regarding the highest paid director is as follows:
2023 2022
£    £   
Emoluments etc 150,465 126,112
Pension contributions to money purchase schemes 1,321 1,321

6. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery 517,457 680,900
Other operating leases 13,889 19,393
Depreciation - owned assets 9,642 14,303
(Profit)/loss on disposal of fixed assets (953 ) 2,061

7. AUDITORS' REMUNERATION
2023 2022
£    £   
Fees payable to the company's auditors for the audit of the company's
financial statements

16,000

11,575

ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 144 385
Bank loan interest 13,073 12,913
13,217 13,298

9. TAXATION

Analysis of the tax credit
The tax credit on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax - (153,409 )
Tax on profit - (153,409 )

Reconciliation of total tax credit included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Profit before tax 826,244 349,696
Profit multiplied by the standard rate of corporation tax in the UK of
23.500% (2022 - 19%)

194,167

66,442

Effects of:
Expenses not deductible for tax purposes 11,586 8,219
Depreciation in excess of capital allowances 1,315 2,392
Utilisation of tax losses (202,595 ) (85,342 )
Adjustments to tax charge in respect of previous periods - (95,778 )
Loss carryback - reclaim of tax paid - (49,342 )
Group relief on non-trading income (4,473 ) -

Total tax credit - (153,409 )

10. DIVIDENDS
2023 2022
£    £   
Ordinary shares of £1 each
Interim 10,000 91,999

ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

11. TANGIBLE FIXED ASSETS
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1st January 2023 60,833 190,387 251,220
Disposals (833 ) (5,095 ) (5,928 )
At 31st December 2023 60,000 185,292 245,292
DEPRECIATION
At 1st January 2023 54,798 156,835 211,633
Charge for year 1,481 8,161 9,642
Eliminated on disposal (722 ) (4,188 ) (4,910 )
At 31st December 2023 55,557 160,808 216,365
NET BOOK VALUE
At 31st December 2023 4,443 24,484 28,927
At 31st December 2022 6,035 33,552 39,587

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 2,552,646 1,251,551
Accrued income and amounts
recoverable on contracts 1,498,297 1,573,280
Other debtors 44,822 81,803
Directors' current accounts 1,358 1,571
Prepayments 15,328 10,413
Sales retention control 961,690 963,599
5,074,141 3,882,217

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 100,000 100,000
Trade creditors 283,844 197,971
Amounts owed to group undertakings 232,828 -
Social security and other taxes 145,264 149,439
VAT 2,133,554 1,924,751
Other creditors 19,523 17,827
Subcontractor invoices 1,673,594 1,724,474
Subcontractors retention
control 751,602 546,260
Accruals 21,925 12,851
5,362,134 4,673,573

ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 15) 141,669 241,668

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans - within 1 year 100,000 100,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 100,000 100,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 41,669 141,668

16. LEASING AGREEMENTS
Minimum lease payments fall due as follows:


Non-cancellable operating
leases
2023 2022
£ £
Net obligations repayable:
Within one year 45,000 45,000
Between one and five years 16,383 61,383
61,383 106,383


17. SECURED DEBTS

The following secured debts are included within creditors:

2023 2022
£    £   
Bank loans 241,669 341,668

The bank loans are secured by way of a fixed and floating charge over all assets of the group with negative pledge over the properties.

The finance lease creditor was secured on the assets they related to.

18. PROVISIONS FOR LIABILITIES
2023 2022
£    £   
Other provisions 77,173 -

ASH CONTRACTING LIMITED (REGISTERED NUMBER: 05076612)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

18. PROVISIONS FOR LIABILITIES - continued

Contract
defect
provisions
£   
Provided during year 77,173
Balance at 31st December 2023 77,173

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
107,624 Ordinary £1 107,624 107,624

20. OTHER FINANCIAL COMMITMENTS

The parent company, Ash Connect Limited, was acquired by Ash Connect EOT Limited on behalf of the Ash Connect Employee Ownership Trust for a total sum of £5,574,000. The total consideration consisted of initial payments, made by Ash Connect Limited and are included in it's 2021, 2022 & 2023 financial statements, and an element of deferred consideration which will be paid in monthly instalments by this company.The obligation to make future payments of the deferred consideration lies with the trust and so the liability for future payments has not been recognised by the group.

21. RELATED PARTY DISCLOSURES

Other related parties
2023 2022
£    £   
Other income - 166,600
Purchases 2,340,846 92,292
Amount due from related parties - 69,586
Amount due to related party (232,828 ) -

22. ULTIMATE CONTROLLING PARTY AND PARENT UNDERTAKING

The Ash Connect Employee Ownership Trust is the ultimate controlling party by virtue of its ownership of Ash Connect Limited

The immediate parent undertaking is Ash Connect Limited.

The smallest and largest group for which consolidated accounts are prepared which include the results of this company is that headed by Ash Connect Limited and these financial statements may be obtained from 4 The Courtyard, Birling Road, Ryarsh, West Malling, ME19 5AA.