REGISTERED NUMBER: 13113517 (England and Wales) |
Adams Holdings (N. Wales) Limited |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 November 2023 |
REGISTERED NUMBER: 13113517 (England and Wales) |
Adams Holdings (N. Wales) Limited |
Group Strategic Report, |
Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 November 2023 |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Contents of the Consolidated Financial Statements |
for the year ended 30 November 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 7 |
Consolidated Statement of Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 |
Adams Holdings (N. Wales) Limited |
Company Information |
for the year ended 30 November 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
Irish Square |
Upper Denbigh Road |
St Asaph |
Denbighshire |
LL17 0RN |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Group Strategic Report |
for the year ended 30 November 2023 |
The directors present their strategic report of the company and the group for the year ended 30 November 2023. |
REVIEW OF BUSINESS |
The Group's consolidated trading is primarily that of the subsidiary operating EvadX Ltd, with its principal activities being that of the design, manufacturing, and installation of steel structures. |
The group has seen a decrease in turnover in the year which is primarily due to the commencement of previously deferred orders from the initial Covid period in 2022. |
Our construction services have a resilient and long standing relationship with the supply chain and the strength of these relationships assisted in managing the customers' expectations, especially around steel prices, from what might otherwise have been a more significant effect. The same can be said for the relationships with customers where the workload volume has increased due to the Group agility and ability to adapt being prepared to flex stock to suit customers' requirements. |
Consistent with our strategy to grow activity, and managing the extra challenge of the running of the business the group are pleased to announce a turnover of £10.7 million and Profit before tax of £1.7m. |
EvadX limited: |
The year ending 30 November 2023 saw a decrease in turnover from £15.060 million in 2022 to £10.792 million. However, the turnover in 2022 was higher than we would normally expect, which was primarily due to the commencement of deferred orders from the Covid period. Therefore, 2023 sees a return to levels we would normally expect. |
High inflation and rising interest rates have proved challenging for may UK businesses however, despite these challenges the net profit increased to £1,773m (2022: £0.872m). |
Our order book remains strong into the new financial year, and we have successfully secured a number of large projects with many more in the pipeline too. |
The company continues to deliver quality steelwork contracts and recognises that it's success could not be achieved without the resilience, determination and dedication of our team. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The group regularly reviews the risks and uncertainties within the business and the principal material risks identified by the company are as follows: |
Competition/maintaining an order book: The majority of the group's turnover is through the traditional procurement process whereby the group submits a tender for the work to be carried out. Competition from other contractors and a downturn in economic conditions would adversely affect the company's ability to secure work. When tendering, careful consideration is also needed due fluctuation in prices and profitability. The group manages the risk by building a strong order book and ensuring contracts are delivered on time, within budget and to the required standard/quality to maintain a good reputation. |
Delays in commencement of projects: Whilst our order book remains strong, delay's in existing projects remains an ongoing risk however, these are closely managed |
Credit risk/insolvency of customers: The group recognises the importance of debtor management and the need to reduce the risk of financial loss due to a counterparty's failure to honour its obligation. To manage the credit risk, customers are subject to credit risk assessments and overdue debtors together with retentions are regularly monitored to keep to a minimum. |
Health and safety: The group's activities are inherently complex and potentially hazardous and failure to meet safety standards or ineffective management could result in the injury or death of employees, members of the public or third parties. The risk is managed by continuously monitoring and management of health, safety and environmental risks. |
Supply Chain: One of the important aspects of the business, is its supply chain management. The group has long standing relationships with its key suppliers to ensure that we achieve the best quality and price whilst also ensuring that we are not over reliant on any one supplier or subcontractor. |
Human Resource: The availability of skilled labour continues to be a risk and the group recognises that a key component to is continued success and to enable it to meet the challenges that it faces is the ability to attract, retain and develop the best people it can. |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Group Strategic Report |
for the year ended 30 November 2023 |
DEVELOPMENT AND PERFORMANCE |
Cash at bank and in hand stood at £2.4 million (2022: £1.3 million) The strong liquidity supported by good financial control enables us to pay our supply chain promptly. |
The directors continue to look ahead and despite the potential of future economic disruptions, the order book is strong and the directors believe the company is well place to achieve sustained profitable growth going forward. |
Increasing raw material prices and the availability of raw materials will have an impact on margins and productivity for many companies however, due to the long standing relationship with our suppliers we are confident this will not cause any issues. |
KEY PERFORMANCE INDICATORS |
We provide high satisfaction level with a real focus on customer through listening, understanding and responding which in turn results in customer loyalty which is critical to a long term relationship and many years of repeated business due to our performance. This work is combined with close management of profitable work with positive cashflow lead by sustainability, innovation and lean operations. We ensure competitiveness by efficiency, cost management and reliable suppliers. There is no doubt that the construction industry is a complex and increasingly challenging sector in which to operate successfully. The Group aspirations for the company remains strong. |
The trading group's financial and key performance indicators during the period were as follows: |
2023 | 2022 | 2021 |
£'000 | £'000 | £'000 |
Turnover | 10,792 | 15,059 | 10,244 |
Gross Profit | 2,815 | 1,777 | 1,586 |
Profit Before Taxation | 1,743 | 865 | 161 |
ON BEHALF OF THE BOARD: |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Report of the Directors |
for the year ended 30 November 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 November 2023. |
DIVIDENDS |
Interim dividends per share were paid during the year as follows: |
Ordinary B £1 | - | £10600 | - 1 December 2022 |
Ordinary C £1 | - | £3400 | - 1 December 2022 |
Ordinary D £1 | - | £3200 | - 1 December 2022 |
The directors recommend a final dividend per share as follows: |
Ordinary B £1 | - | £9000 |
Ordinary C £1 | - | £11350 |
Ordinary D £1 | - | £12950 |
The total distribution of dividends for the year ended 30 November 2023 will be £ 333,000 . |
RESEARCH AND DEVELOPMENT |
The group undertakes research and development activities when providing services to clients. The direct expenditure invested is typically included in the relevant project. |
FUTURE DEVELOPMENTS |
The group continues to promote its reputation for delivering high quality work and our order book remains strong. |
The group continues to look ahead and have move forward in our plans to extend the factory and its operations and hope to begin work within the next 12 months. This will support our growth strategy and hopefully create new jobs for the local area. |
Our plan to install solar panels have been on hold however are hopefully to implement in the next 12 months. This will hopefully cut costs, bring in extra revenue, reduce reliance on rising energy prices and minimise its carbon footprint. Energy prices have been increasing gradually for years and this is expected to continue to rise as fossil fuels (which are traditionally used to generate electricity) become harder to source. By generating their own electricity from solar panels they will reduce their reliance on the National Grid and the fluctuating prices. This should make budgeting and forecasting much more straightforward. |
As the group does not currently operate during the night, the aim is to still put their solar energy to use. They will be installing a solar storage battery alongside the solar panels which will enable them to store any unused electricity. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 December 2022 to the date of this report. |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Report of the Directors |
for the year ended 30 November 2023 |
FINANCIAL INSTRUMENTS |
The group use various financial instruments including bank loans, cash reserves, hire purchase, finance leases, trade debtors, trade supplier accounts to allow the company to operate effectively. |
The existence of these financial instruments could expose the group to a number of risks which are described in more detail below. |
The main risks arising from the group's financial instruments are liquidity risk, interest rate risk and credit risk. |
Liquidity risk |
The group manages financial risk by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The group's liquidity position is reviewed regularly by the directors and the cashflow is forecast regularly to provide up-to-date and accurate information on the group's current cash position. Cash holdings has been further improved during the year. |
Interest rate risk |
The group finances its operations through a mixture of retained profits, bank loan and asset finance borrowings. The group's exposure to interest rate fluctuation is managed using both fixed and floating facilities. |
Credit risk |
The group's principal financial assets are trade debtors and other receivables. The group manages credit risk regularly reviews credit rating information regarding organisations in conjunction with debt ageing and collection history. |
STRATEGIC REPORT |
The review of the business, future developments, key performance indicators and principal risks and uncertainties are included within the strategic report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information. |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Report of the Directors |
for the year ended 30 November 2023 |
AUDITORS |
The auditors, Salisbury & Company Business Solutions Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Adams Holdings (N. Wales) Limited |
Opinion |
We have audited the financial statements of Adams Holdings (N. Wales) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 November 2023 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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. |
Report of the Independent Auditors to the Members of |
Adams Holdings (N. Wales) Limited |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 group's and 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 group or the parent 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: |
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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned in accordance with ISA (UK). |
We obtained an understanding of the legal and regulatory frameworks applicable to the company and the industry in which it operates through our general commercial and sector experience and discussions with management. We determined that the following laws and regulations were most significant: The Companies Act 2006, FRS 102 the 'Financial Reporting Standards applicable in the UK and Republic of Ireland' and relevant UK tax legislation. In addition, we concluded that there are certain laws and regulations that may have an effect on the determination of the amounts and disclosures within the financial statements such as Health and Safety laws and regulations. |
We accessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included: |
- Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations or fraud; |
- Obtain an understanding of the internal controls that management have in place to prevent and detect fraud; |
- Challenging assumptions and judgements made by management in its significant accounting estimates; |
- Reviewing the financial statement disclosures and assessing the appropriateness of the accounting policies used; |
- Identifying and testing journal entries, in particular manual or unusual entries; |
- Obtaining third party confirmations of all the companies banking arrangements; |
- Performing analytical procedures to identify any unusual or unexpected relationships; |
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting. |
The assessment of the appropriateness of the collective competence and capabilities of the engagement team included consideration of the engagements team's knowledge of the industry in which the client operates in and understanding of, and practical experience with, audit engagements of a similar nature and complexity through appropriate training and participation. |
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment. |
Our audit procedures are designed to detect material misstatement. We are not responsible for preventing non-compliance or fraud and cannot be expected to detect non-compliance with all laws and regulations. |
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 |
Adams Holdings (N. Wales) 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. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
Irish Square |
Upper Denbigh Road |
St Asaph |
Denbighshire |
LL17 0RN |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Consolidated |
Statement of Comprehensive |
Income |
for the year ended 30 November 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 3 | 10,791,681 | 15,059,527 |
Cost of sales | (7,976,590 | ) | (13,282,513 | ) |
GROSS PROFIT | 2,815,091 | 1,777,014 |
Administrative expenses | (1,063,725 | ) | (989,401 | ) |
1,751,366 | 787,613 |
Other operating income | - | 104,615 |
OPERATING PROFIT | 5 | 1,751,366 | 892,228 |
Interest receivable and similar income | 2,015 | - |
1,753,381 | 892,228 |
Interest payable and similar expenses | 6 | (10,695 | ) | (26,378 | ) |
PROFIT BEFORE TAXATION | 1,742,686 | 865,850 |
Tax on profit | 7 | (5,049 | ) | (161,487 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,737,637 |
Prior year adjustment | 97,830 |
TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT |
802,193 |
Profit attributable to: |
Owners of the parent | 1,737,637 | 704,363 |
Total comprehensive income attributable to: |
Owners of the parent | 1,737,637 | 802,193 |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Consolidated Balance Sheet |
30 November 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 | 288,600 | 171,699 |
Investments | 11 | - | - |
288,600 | 171,699 |
CURRENT ASSETS |
Stocks | 12 | 44,877 | 3,000 |
Debtors | 13 | 2,438,118 | 2,453,398 |
Cash at bank and in hand | 2,433,022 | 1,301,918 |
4,916,017 | 3,758,316 |
CREDITORS |
Amounts falling due within one year | 14 | 2,223,261 | 2,217,238 |
NET CURRENT ASSETS | 2,692,756 | 1,541,078 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
2,981,356 |
1,712,777 |
CREDITORS |
Amounts falling due after more than one year |
15 |
(62,735 |
) |
(220,365 |
) |
PROVISIONS FOR LIABILITIES | 19 | (60,073 | ) | (38,501 | ) |
NET ASSETS | 2,858,548 | 1,453,911 |
CAPITAL AND RESERVES |
Called up share capital | 20 | 10,030 | 10,030 |
Merger relief reserve | 21 | 2,989,970 | 2,989,970 |
Merger reserve | 21 | (2,989,970 | ) | (2,989,970 | ) |
Retained earnings | 21 | 2,848,518 | 1,443,881 |
SHAREHOLDERS' FUNDS | 25 | 2,858,548 | 1,453,911 |
The financial statements were approved by the Board of Directors and authorised for issue on 28 August 2024 and were signed on its behalf by: |
Mrs B L Griffin - Director |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Company Balance Sheet |
30 November 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS/(LIABILITIES) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 19 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Merger relief reserve | 21 |
Retained earnings | 21 | ( |
) |
SHAREHOLDERS' FUNDS | 25 |
Company's profit for the financial year | 611,739 | 296,962 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Consolidated Statement of Changes in Equity |
for the year ended 30 November 2023 |
Called up | Merger |
share | Retained | relief | Merger | Total |
capital | earnings | reserve | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 December 2021 | 10,030 | 950,688 | 2,989,970 | (2,989,970 | ) | 960,718 |
Prior year adjustment | - | 97,830 | - | - | 97,830 |
As restated | 10,030 | 1,048,518 | 2,989,970 | (2,989,970 | ) | 1,058,548 |
Changes in equity |
Dividends | - | (309,000 | ) | - | - | (309,000 | ) |
Total comprehensive income | - | 704,363 | - | - | 704,363 |
Balance at 30 November 2022 | 10,030 | 1,443,881 | 2,989,970 | (2,989,970 | ) | 1,453,911 |
Changes in equity |
Dividends | - | (333,000 | ) | - | - | (333,000 | ) |
Total comprehensive income | - | 1,737,637 | - | - | 1,737,637 |
Balance at 30 November 2023 | 10,030 | 2,848,518 | 2,989,970 | (2,989,970 | ) | 2,858,548 |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Company Statement of Changes in Equity |
for the year ended 30 November 2023 |
Called up | Merger |
share | Retained | relief | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 1 December 2021 | ( |
) |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 November 2022 | ( |
) |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 November 2023 |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Consolidated Cash Flow Statement |
for the year ended 30 November 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,996,366 | 1,133,470 |
Interest paid | (10,695 | ) | (26,378 | ) |
Tax paid | (130,734 | ) | (39,155 | ) |
Net cash from operating activities | 1,854,937 | 1,067,937 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (178,289 | ) | (163,125 | ) |
Sale of tangible fixed assets | 3,350 | 4,750 |
Interest received | 2,015 | - |
Net cash from investing activities | (172,924 | ) | (158,375 | ) |
Cash flows from financing activities |
New loans in year | - | 109,487 |
Loan repayments in year | (187,501 | ) | (306,496 | ) |
Capital repayments in year | (20,130 | ) | - |
Amount introduced by directors | 333,001 | 309,000 |
Amount withdrawn by directors | (343,279 | ) | (310,519 | ) |
Equity dividends paid | (333,000 | ) | (309,000 | ) |
Net cash from financing activities | (550,909 | ) | (507,528 | ) |
Increase in cash and cash equivalents | 1,131,104 | 402,034 |
Cash and cash equivalents at beginning of year |
2 |
1,301,918 |
899,884 |
Cash and cash equivalents at end of year | 2 | 2,433,022 | 1,301,918 |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Notes to the Consolidated Cash Flow Statement |
for the year ended 30 November 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 1,742,686 | 865,850 |
Depreciation charges | 57,642 | 32,206 |
Loss/(profit) on disposal of fixed assets | 397 | (4,750 | ) |
Amounts owed to participating interest | - | 149,843 |
Finance costs | 10,695 | 26,378 |
Finance income | (2,015 | ) | - |
1,809,405 | 1,069,527 |
(Increase)/decrease in stocks | (41,877 | ) | 471,156 |
Decrease/(increase) in trade and other debtors | 237,076 | (49,575 | ) |
Decrease in trade and other creditors | (8,238 | ) | (357,638 | ) |
Cash generated from operations | 1,996,366 | 1,133,470 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 November 2023 |
30/11/23 | 1/12/22 |
£ | £ |
Cash and cash equivalents | 2,433,022 | 1,301,918 |
Year ended 30 November 2022 |
30/11/22 | 1/12/21 |
£ | £ |
Cash and cash equivalents | 1,301,918 | 899,884 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/12/22 | Cash flow | At 30/11/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,301,918 | 1,131,104 | 2,433,022 |
1,301,918 | 1,131,104 | 2,433,022 |
Debt |
Finance leases | (102,994 | ) | 20,130 | (82,864 | ) |
Debts falling due within 1 year | (50,000 | ) | 50,000 | - |
Debts falling due after 1 year | (137,500 | ) | 137,500 | - |
(290,494 | ) | 207,630 | (82,864 | ) |
Total | 1,011,424 | 1,338,734 | 2,350,158 |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Notes to the Consolidated Financial Statements |
for the year ended 30 November 2023 |
1. | STATUTORY INFORMATION |
Adams Holdings (N. Wales) Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The presentational and function currency of these financial statements is pound sterling. Monetary amounts in these financial statements are rounded to the nearest £. |
Significant judgements and estimates |
Estimates and judgments are continually evaluated 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. The resulting accounting estimates will by definition, seldom equal the related actual results. In the opinion of the directors there are no estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. |
The estimates and judgements which have significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows: |
- Work in Progress |
Determining the valuation of construction and development contracts requires judgment regarding the stage of completion of contracts at the year end. The judgements are based on the work that has been completed and work that has already been agreed and billed. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
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 contracts for the provision of 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 sales raised to date against costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliable, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered. |
Tangible fixed assets |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Stocks |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 November 2023 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
Long-term contracts |
Profit on long-term contracts is recognised as the work is carried out if the financial outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related contract costs as contract activity progress. |
Contract costs are recognised as the higher of actual cost to date or costs as a proportion of final costs, using the reference of turnover to date as a proportion of final turnover. |
Revenue derived from variations on contracts are recognised only when they have been accepted by the customer. |
Full provision is made for losses on all contracts in the year in which they are first foreseen. |
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. |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
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. |
Debtors |
Short term debtors are measured at transaction price, less any impairment. |
Creditors |
Short term trade creditors are measured at the transaction price. Other financial liabilities, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost. |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 November 2023 |
2. | ACCOUNTING POLICIES - continued |
Provisions for liabilities |
Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. |
Retentions |
Retention recognition policy follows that of BIM51520 - include retentions within turnover, provide for the |
estimated cost of remedial work, and make provision for any debt impairment. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
All turnover arose within the United Kingdom. |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,272,378 | 1,289,734 |
Social security costs | 121,843 | 132,247 |
Other pension costs | 113,351 | 72,940 |
1,507,572 | 1,494,921 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 3 | 3 |
Management and admin | 11 | 10 |
Workshop and site crew | 29 | 40 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 26,364 | 26,416 |
2023 | 2022 |
£ | £ |
Director pension contributions | 88,000 | 48,000 |
5. | OPERATING PROFIT |
The operating profit is stated after charging: |
2023 | 2022 |
£ | £ |
Hire of plant and machinery | 490,432 | 701,060 |
Other operating leases | 40,193 | 44,185 |
Depreciation - owned assets | 57,641 | 27,456 |
Loss on disposal of fixed assets | 397 | - |
Auditors' remuneration | 12,563 | 11,350 |
Auditors' remuneration for non audit work | 7,013 | 5,542 |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 November 2023 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 10,628 | 26,378 |
Other interest | 67 | - |
10,695 | 26,378 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 205,273 | 130,734 |
R&D tax credit | (221,796 | ) | - |
Total current tax | (16,523 | ) | 130,734 |
Deferred tax | 21,572 | 30,753 |
Tax on profit | 5,049 | 161,487 |
UK corporation tax was charged at 19 %) in 2022. |
Reconciliation of total tax charge 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 | 1,742,686 | 865,850 |
Profit multiplied by the standard rate of corporation tax in the UK of 23 % (2022 - 19 %) |
400,818 |
164,512 |
Effects of: |
Capital allowances in excess of depreciation | (27,856 | ) | (34,173 | ) |
Utilisation of tax losses | (19,617 | ) | (507 | ) |
R&D tax credit | (369,960 | ) | - |
Loss on disposal | 91 | 902 |
consolidation |
Movement on deferred tax | 21,573 | 30,753 |
Total tax charge | 5,049 | 161,487 |
The planned increased in corporation tax rates will see the company's profits taxed at the 25%. |
8. | INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 November 2023 |
9. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary B shares of £1 each |
Interim | 90,000 | 95,000 |
Ordinary C shares of £1 each |
Interim | 113,500 | 102,000 |
Ordinary D shares of £1 each |
Interim | 129,500 | 112,000 |
333,000 | 309,000 |
10. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 December 2022 | 204,191 | 27,296 | 9,803 | 241,290 |
Additions | 166,450 | 11,839 | - | 178,289 |
Disposals | (2,740 | ) | - | (4,345 | ) | (7,085 | ) |
At 30 November 2023 | 367,901 | 39,135 | 5,458 | 412,494 |
DEPRECIATION |
At 1 December 2022 | 57,546 | 7,756 | 4,289 | 69,591 |
Charge for year | 51,387 | 5,487 | 767 | 57,641 |
Eliminated on disposal | (1,437 | ) | - | (1,901 | ) | (3,338 | ) |
At 30 November 2023 | 107,496 | 13,243 | 3,155 | 123,894 |
NET BOOK VALUE |
At 30 November 2023 | 260,405 | 25,892 | 2,303 | 288,600 |
At 30 November 2022 | 146,645 | 19,540 | 5,514 | 171,699 |
Company |
Fixtures |
Plant and | and | Motor |
machinery | fittings | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 December 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 30 November 2023 |
DEPRECIATION |
At 1 December 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 November 2023 |
11. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 December 2022 |
and 30 November 2023 |
NET BOOK VALUE |
At 30 November 2023 |
At 30 November 2022 |
Investment in Subsidiary: |
EvadX Limited |
Registered office: Unit 9 Tir Llwyd Enterprise Park, Kinmel Bay, Clwyd, LL18 5JZ |
Nature of business: Manufacture of metal structures and parts of structures |
% |
Class of shares | holding |
Ordinary A Shares | 100% |
Ordinary B Shares | 100% |
Ordinary C Shares | 100% |
Ordinary D Shares | 100% |
12. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 3,000 | 3,000 |
Work-in-progress | 41,877 | - |
44,877 | 3,000 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 388,646 | 565,405 |
Applications/retentions | 1,305,244 | 1,480,722 | - | - |
Bad debt provision | (7,769 | ) | (27,851 | ) | - | - |
Amounts owed by participating interests | 262,913 | 262,913 | - | - |
Other debtors | 2,800 | - |
R&D tax refund | 221,796 | - |
VAT | 119,877 | 30,993 |
Prepayments and accrued income | 144,611 | 141,216 |
2,438,118 | 2,453,398 |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 November 2023 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 16) | - | 50,000 |
Hire purchase contracts (see note 17) | 20,129 | 20,129 |
Trade creditors | 1,521,499 | 1,907,892 |
Amounts owed to group undertakings | - | - |
Tax | 205,273 | 130,734 |
Social security and other taxes | 37,696 | 28,954 |
VAT | - | - | - | 594 |
Other creditors | 315,006 | 578 |
Directors' loan accounts | 769 | 11,047 | - | - |
Accruals and deferred income | 121,489 | 46,604 |
Accrued expenses | 1,400 | 21,300 |
2,223,261 | 2,217,238 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2023 | 2022 |
£ | £ |
Bank loans (see note 16) | - | 137,500 |
Hire purchase contracts (see note 17) | 62,735 | 82,865 |
62,735 | 220,365 |
16. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | - | 50,000 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | - | 50,000 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 87,500 |
17. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 20,129 | 20,129 |
Between one and five years | 62,735 | 82,865 |
82,864 | 102,994 |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 November 2023 |
17. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | - | 36,878 |
Between one and five years | - | 64,790 |
- | 101,668 |
18. | SECURED DEBTS |
An unlimited debenture dated 10/12/2012 incorporating a fixed and floating charge on EvadX Limited. |
Other facilities covered by the debenture |
Commercial Charge Card |
Electronic funds transfer (P C Pay) |
Electronic funds transfer (Telepay) |
19. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax | 60,073 | 38,501 | 39,904 | 14,010 |
Group |
Deferred |
tax |
£ |
Balance at 1 December 2022 | 38,501 |
Provided during year | 21,572 |
Balance at 30 November 2023 | 60,073 |
Company |
Deferred |
tax |
£ |
Balance at 1 December 2022 |
Provided during year |
Balance at 30 November 2023 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid |
Number: | Class: | Nominalvalue: | £ |
10,000 | Ordinary A | £1 | 10,000 |
10 | Ordinary B | £1 | 10 |
10 | Ordinary C | £1 | 10 |
10 | Ordinary D | £1 | 10 |
10,030 |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 November 2023 |
21. | RESERVES |
Group |
Merger |
Retained | relief | Merger |
earnings | reserve | reserve | Totals |
£ | £ | £ | £ |
At 1 December 2022 | 1,443,881 | 2,989,970 | (2,989,970 | ) | 1,443,881 |
Profit for the year | 1,737,637 | 1,737,637 |
Dividends | (333,000 | ) | (333,000 | ) |
At 30 November 2023 | 2,848,518 | 2,989,970 | (2,989,970 | ) | 2,848,518 |
Company |
Merger |
Retained | relief |
earnings | reserve | Totals |
£ | £ | £ |
At 1 December 2022 | ( |
) | 2,927,885 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 November 2023 | 3,206,624 |
22. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund. |
23. | RELATED PARTY DISCLOSURES |
The property at Tir Llwyd Enterprise Park is owned by the pension company, which is controlled by the directors. |
During the year, rent of £86,250 (2022: £62,500) was invoiced from the pension company. |
As at 30th November 2023 £NIL (2022:£NIL) rent was outstanding and included within trade creditors. |
Mr R T Adams, Mr S G Adams and Mrs B L Griffin are also directors of Adams Properties (N.Wales) Limited. |
During the year Adams Properties (N.Wales) Limited rented machinery to Evadx Ltd, the total amount of rent paid during the year was £6,440 (2022: £12,000). |
During the year Evadx Ltd paid expenses of £644 (2022: £NIL) on behalf of Adams Properties (N.Wales) Limited. |
During the year Evadx Ltd received £644 (2022: £NIL) from Adams Properties (N.Wales) Limited. |
During the year Evadx Ltd loaned £NIL (2022: £NIL) to Adams Properties (N.Wales) Limited. |
As at 30th November 2023 the total amount outstanding was £262,913 (2022: £262,913). |
24. | ULTIMATE CONTROLLING PARTY |
Ultimate control of the company lies with the directors and their families who, between them, own the issued share capital. |
Adams Holdings (N. Wales) Limited (Registered number: 13113517) |
Notes to the Consolidated Financial Statements - continued |
for the year ended 30 November 2023 |
25. | RECONCILIATION OF MOVEMENTS IN SHAREHOLDERS' FUNDS |
Group |
2023 | 2022 |
£ | £ |
Profit for the financial year | 1,737,637 | 704,363 |
Dividends | (333,000 | ) | (309,000 | ) |
Purchase of subsidiary shares |
Merger relief reserve |
Net addition to shareholders' funds | 1,404,637 | 395,363 |
Opening shareholders' funds | 1,453,911 | 1,058,548 |
Closing shareholders' funds | 2,858,548 | 1,453,911 |
Company |
2023 | 2022 |
£ | £ |
Profit for the financial year |
Dividends | ( |
) | ( |
) |
Purchase of subsidiary shares |
Merger relief reserve |
Net addition/(reduction) to shareholders' funds | 278,739 | (12,038 | ) |
Opening shareholders' funds | 2,937,915 | 2,949,953 |
Closing shareholders' funds | 3,216,654 | 2,937,915 |