REGISTERED NUMBER: 02660357 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 November 2023 |
for |
Colne Valley Electrical Limited |
REGISTERED NUMBER: 02660357 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements |
for the Year Ended 30 November 2023 |
for |
Colne Valley Electrical Limited |
Colne Valley Electrical Limited (Registered number: 02660357) |
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 | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows | 16 |
Notes to the Consolidated Financial Statements | 17 |
Colne Valley Electrical Limited |
Company Information |
for the Year Ended 30 November 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Eldo House |
Kempson Way |
Suffolk Business Park |
Bury St Edmunds |
Suffolk |
IP32 7AR |
Colne Valley Electrical Limited (Registered number: 02660357) |
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 directors are satisfied with the group's results for the year which have again been achieved against an ongoing difficult general economic backdrop. The group's position in its marketplace has been strengthened as a result of the mechanical division continuing to broaden and develop its service offering and this has enabled group turnover to increase by 23% to £41.4m. Although the electrical division has been able to maintain its gross profit rate during the year, increasing subcontractor costs and some resource issues at the mechanical division have negatively impacted its gross profit rate. Since the financial year end the group has enhanced its operational resources in order to improve the group's overall profitability. |
The group continues to have strong reserves and remains well placed to deliver its services to some of the country's largest housebuilders involved with residential new build schemes including multi-occupancy apartments throughout London and the South East. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The current economic climate continues to place pressure on costs and at times supply and this is particularly the case with regard to labour. The cost of living crisis is also affecting certain elements of the housing market which creates some uncertainty as to future levels of trading. The group does however operate in some specialist areas of the housing market and these projects are showing more resilience than the sector in general. |
KEY PERFORMANCE INDICATORS |
Financial year | 2023 | 2022 |
£ | £ |
Turnover | 41,386,284 | 33,621,251 |
Gross profit | 3,200,912 | 3,615,032 |
Gross profit rate % | 7.73% | 10.75% |
Profit before tax | 912,703 | 1,596,307 |
Shareholders funds | 8,638,175 | 8,298,487 |
ON BEHALF OF THE BOARD: |
Colne Valley Electrical Limited (Registered number: 02660357) |
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. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of electrical and mechanical installation contractors. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 November 2023 was £253,435 (2022: £620,000). The directors do not propose a final dividend. |
FUTURE DEVELOPMENTS |
In addition to its core activity of providing electrical and mechanical installation services, the group is continuing to develop its design and site services activities. All of these services taken together will enable the group to provide total building services solutions. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 December 2022 to the date of this report. |
FINANCIAL INSTRUMENTS |
The group utilises within its operations financial instruments such as cash, trade debtors, trade creditors and leasing and hire purchase arrangements. Working capital is generally financed through retained earnings. |
POLITICAL DONATIONS AND EXPENDITURE |
No political donations or expenditure were made during the current or prior years. |
LIQUIDITY RISK |
Liquidity risk is managed by the close daily monitoring of trade payables, trade receivables, amounts recoverable on contracts and bank balances. |
INTEREST RATE RISK |
The financing of the group's operations is met mainly through retained profits. The directors therefore consider the group's interest rate risk to be low. |
CREDIT RISK |
The group's credit risk is primarily attributable to amounts recoverable on contracts. This risk is managed by an effective credit control function which closely monitors amounts outstanding and takes appropriate recovery action when necessary. Detailed customer due diligence prior to contract acceptance also mitigates the group's credit risk. |
Colne Valley Electrical Limited (Registered number: 02660357) |
Report of the Directors |
for the Year Ended 30 November 2023 |
DIRECTORS' RESPONSIBILITIES STATEMENT |
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. |
AUDITORS |
The auditors, Knights Lowe Limited, are deemed to be reappointed under section 487(2) of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Colne Valley Electrical Limited |
Qualified opinion |
We have audited the financial statements of Colne Valley Electrical Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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, except for the possible effects of the matter described in the basis for qualified opinion section of our report, the financial statements: |
- give a true and fair view of the state of the group's affairs as at 30 November 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 qualified opinion |
Amounts recoverable on contracts include £442,403 (2022 - £664,980) relating to committed on-site materials which were not part of the measured contract valuations at 30 November 2023 or 30 November 2022 respectively. Owing to the nature of the group's records, we were unable to obtain sufficient appropriate audit evidence regarding the quantities of these materials. Consequently, we were unable to determine whether any adjustments to these amounts were necessary. In addition, were any adjustment to amounts recoverable on contracts to be required, the Strategic Report would also need to be amended. |
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 qualified 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. |
Report of the Independent Auditors to the Members of |
Colne Valley Electrical Limited |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and 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. |
As described in the basis for qualified opinion section of our report, we were unable to satisfy ourselves concerning the quantities of committed on-site materials of £442,403 (2022 - £664,980) included within amounts recoverable on contracts at 30 November 2023 and 30 November 2022 respectively. Accordingly, we were unable to conclude whether or not any amendment to the other information was required in respect of this matter. |
Opinions on other matters prescribed by the Companies Act 2006 |
Except for the possible effects of the matter described in the basis for qualified opinion section of our report, 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 |
Except for the matter described in the basis for qualified opinion section of our report, 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. |
Arising solely from the limitation on the scope of our work relating to amounts recoverable on contracts, referred to above: |
- we have not obtained all the information and explanations that we considered necessary for the purpose of our audit; and |
- we were unable to determine whether adequate accounting records have been kept. |
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: |
- 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. |
Responsibilities of directors |
As explained more fully in the Directors' Responsibilities Statement 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 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. |
Report of the Independent Auditors to the Members of |
Colne Valley Electrical Limited |
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: |
We gained an understanding of the legal and regulatory framework applicable to the group and the sector in which it operates and through discussions with directors and management identified laws and regulations that could reasonably be expected to have a material effect on the financial statements. The outcomes of these discussions were shared with the audit team and consideration given as to where and how fraud may occur in the group. |
The laws and regulations considered as being significant to the group included UK company law and financial reporting standards, Employment Laws, National Inspection Council for Electrical Installation Contracting Certification, Gas Safety Regulations and Health and Safety Regulations. |
We undertook audit procedures in response to the potential risks relating to irregularities which include risks of fraud and non-compliance with laws and regulations. These procedures included enquiry of management concerning any actual or potential claims or litigation, review of licences, review and testing of both journal and other entries in the nominal ledger, and review of transactions around the end of the accounting period, together with undertaking analytical procedures to assist in identifying any unexpected amounts and variances within the financial statements that may be an indication of fraud. |
Our audit procedures were designed to respond to risks of material misstatement in the financial statements. There are however inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. The risk of not detecting irregularities resulting from fraud is higher than the risk of not detecting irregularities resulting from an error, as fraud may involve deliberate concealment. There is therefore an unavoidable risk that material misstatements may not be detected, even though the audit has been undertaken in accordance with applicable auditing standards. |
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 |
Colne Valley Electrical 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 |
Eldo House |
Kempson Way |
Suffolk Business Park |
Bury St Edmunds |
Suffolk |
IP32 7AR |
Colne Valley Electrical Limited (Registered number: 02660357) |
Consolidated |
Income Statement |
for the Year Ended 30 November 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 41,386,284 | 33,621,251 |
Cost of sales | 38,185,372 | 30,006,219 |
GROSS PROFIT | 3,200,912 | 3,615,032 |
Administrative expenses | 2,303,851 | 2,028,191 |
897,061 | 1,586,841 |
Other operating income | 4 | 5,000 | 6,000 |
OPERATING PROFIT | 6 | 902,061 | 1,592,841 |
Interest receivable and similar income | 12,765 | 3,755 |
914,826 | 1,596,596 |
Interest payable and similar expenses | 7 | 2,123 | 289 |
PROFIT BEFORE TAXATION | 912,703 | 1,596,307 |
Tax on profit | 8 | 213,829 | 325,789 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 490,212 | 916,976 |
Non-controlling interests | 208,662 | 353,542 |
698,874 | 1,270,518 |
Colne Valley Electrical Limited (Registered number: 02660357) |
Consolidated |
Other Comprehensive Income |
for the Year Ended 30 November 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 698,874 | 1,270,518 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
698,874 |
1,270,518 |
Total comprehensive income attributable to: |
Owners of the parent | 490,212 | 916,976 |
Non-controlling interests | 208,662 | 353,542 |
698,874 | 1,270,518 |
Colne Valley Electrical Limited (Registered number: 02660357) |
Consolidated Statement of Financial Position |
30 November 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 287,788 | 324,780 |
Investments | 12 | 573,119 | 573,119 |
860,907 | 897,899 |
CURRENT ASSETS |
Debtors | 13 | 10,752,488 | 9,769,116 |
Cash at bank and in hand | 3,792,683 | 4,212,736 |
14,545,171 | 13,981,852 |
CREDITORS |
Amounts falling due within one year | 14 | 6,338,936 | 6,246,923 |
NET CURRENT ASSETS | 8,206,235 | 7,734,929 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 9,067,142 | 8,632,828 |
PROVISIONS FOR LIABILITIES | 16 | 66,582 | 77,706 |
NET ASSETS | 9,000,560 | 8,555,122 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 50 | 50 |
Capital redemption reserve | 18 | 50 | 50 |
Retained earnings | 18 | 8,638,075 | 8,298,387 |
SHAREHOLDERS' FUNDS | 8,638,175 | 8,298,487 |
NON-CONTROLLING INTERESTS | 362,385 | 256,635 |
TOTAL EQUITY | 9,000,560 | 8,555,122 |
The financial statements were approved by the Board of Directors and authorised for issue on 30 August 2024 and were signed on its behalf by: |
K T Barber - Director |
Colne Valley Electrical Limited (Registered number: 02660357) |
Company Statement of Financial Position |
30 November 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 16 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 243,094 | 482,405 |
The financial statements were approved by the Board of Directors and authorised for issue on |
Colne Valley Electrical Limited (Registered number: 02660357) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 November 2023 |
Called up | Capital |
share | Retained | redemption |
capital | earnings | reserve |
£ | £ | £ |
Balance at 1 December 2021 | 50 | 8,001,411 | 50 |
Changes in equity |
Profit for the year | - | 916,976 | - |
Total comprehensive income | - | 916,976 | - |
Dividends | - | (620,000 | ) | - |
Balance at 30 November 2022 | 50 | 8,298,387 | 50 |
Changes in equity |
Profit for the year | - | 490,212 | - |
Total comprehensive income | - | 490,212 | - |
Dividends | - | (150,524 | ) | - |
Balance at 30 November 2023 | 50 | 8,638,075 | 50 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 December 2021 | 8,001,511 | (96,907 | ) | 7,904,604 |
Changes in equity |
Profit for the year | 916,976 | 353,542 | 1,270,518 |
Total comprehensive income | 916,976 | 353,542 | 1,270,518 |
Dividends | (620,000 | ) | - | (620,000 | ) |
Balance at 30 November 2022 | 8,298,487 | 256,635 | 8,555,122 |
Changes in equity |
Profit for the year | 490,212 | 208,662 | 698,874 |
Total comprehensive income | 490,212 | 208,662 | 698,874 |
Dividends | (150,524 | ) | (102,911 | ) | (253,435 | ) |
Balance at 30 November 2023 | 8,638,175 | 362,386 | 9,000,561 |
Colne Valley Electrical Limited (Registered number: 02660357) |
Company Statement of Changes in Equity |
for the Year Ended 30 November 2023 |
Called up | Capital |
share | Retained | redemption | 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 |
Colne Valley Electrical Limited (Registered number: 02660357) |
Consolidated Statement of Cash Flows |
for the Year Ended 30 November 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 181,072 | 1,368,719 |
Interest paid | (2,123 | ) | - |
Interest element of hire purchase or finance lease rental payments paid |
- |
(289 |
) |
Tax paid | (269,495 | ) | (234,283 | ) |
Net cash from operating activities | (90,546 | ) | 1,134,147 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (93,648 | ) | (129,243 | ) |
Sale of tangible fixed assets | 4,811 | 6,550 |
Interest received | 12,765 | 3,755 |
Net cash from investing activities | (76,072 | ) | (118,938 | ) |
Cash flows from financing activities |
Capital repayments in year | - | (1,631 | ) |
Equity dividends paid | (253,435 | ) | (620,000 | ) |
Net cash from financing activities | (253,435 | ) | (621,631 | ) |
(Decrease)/increase in cash and cash equivalents | (420,053 | ) | 393,578 |
Cash and cash equivalents at beginning of year |
2 |
4,212,736 |
3,819,158 |
Cash and cash equivalents at end of year | 2 | 3,792,683 | 4,212,736 |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Statement of Cash Flows |
for the Year Ended 30 November 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 912,703 | 1,596,307 |
Depreciation charges | 89,429 | 92,217 |
Loss/(profit) on disposal of fixed assets | 36,400 | (3,855 | ) |
Finance costs | 2,123 | 289 |
Finance income | (12,765 | ) | (3,755 | ) |
1,027,890 | 1,681,203 |
Increase in trade and other debtors | (983,372 | ) | (3,149,310 | ) |
Increase in trade and other creditors | 136,554 | 2,836,826 |
Cash generated from operations | 181,072 | 1,368,719 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 November 2023 |
30.11.23 | 1.12.22 |
£ | £ |
Cash and cash equivalents | 3,792,683 | 4,212,736 |
Year ended 30 November 2022 |
30.11.22 | 1.12.21 |
£ | £ |
Cash and cash equivalents | 4,212,736 | 3,819,158 |
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 | 4,212,736 | (420,053 | ) | 3,792,683 |
4,212,736 | (420,053 | ) | 3,792,683 |
Total | 4,212,736 | (420,053 | ) | 3,792,683 |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 November 2023 |
1. | STATUTORY INFORMATION |
Colne Valley Electrical Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
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. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
These financial statements consolidate the results of the company and all material subsidiary undertakings. These are adjusted, where appropriate, to conform to group accounting policies. Further details of the company's subsidiaries, including those excluded from the consolidation, are given at note 12. |
Significant judgements and estimates |
In applying the group's accounting policies the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. In preparing these financial statements the directors have made the following significant judgements and estimates:- |
Investment in subsidiaries |
The directors consider on an annual basis whether there is any indication of impairment in respect of investments in subsidiaries. Where an indication of impairment is identified, the directors estimate the recoverable values of the subsidiaries in order to determine any necessary impairment provisions. The recoverable values of subsidiaries is a source of significant estimation uncertainty. |
Tangible fixed assets |
Tangible fixed assets are depreciated over their estimated useful economic lives taking into account, where relevant, their estimated residual values. Useful economic lives and residual values are re-assessed annually and amended as considered necessary to reflect economic utilisation and physical condition of the assets. |
Amounts recoverable on contracts |
In determining the carrying value of amounts recoverable on contracts, the directors regularly review each contract using their experience and detailed contract data in order to determine whether any amounts are considered irrecoverable. Such amounts are written off as identified. |
Turnover |
Turnover represents the fair value of services provided under contracts with customers to the extent that there is a right to consideration. Services which have been measured yet not yet invoiced at the Statement of Financial Position date are included as amounts recoverable on contracts. Contract amounts considered irrecoverable are written off as identified. |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost less any provisions for impairments. |
Financial instruments |
The group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, bank facilities and loans with related parties. |
Debt instruments that are payable or receivable within one year, such as trade payables or receivables, are measured at the undiscounted amount of the cash or other consideration expected to be paid or received. Debt instruments that are repayable or receivable after one year are initially measured at the present value of the future cash flows and subsequently at amortised cost using the effective interest method. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each financial year for evidence of impairment. If objective evidence of impairment is found an impairment loss is recognised in the Income Statement. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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 statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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. |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
3. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
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 the 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 group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
4. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Rents received | 5,000 | 6,000 |
5. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 2,916,591 | 2,662,744 |
Social security costs | 276,306 | 254,830 |
Other pension costs | 336,279 | 134,772 |
3,529,176 | 3,052,346 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Directors | 8 | 8 |
Electricians and plumbers | 52 | 38 |
Office and administration | 22 | 23 |
2023 | 2022 |
£ | £ |
Directors' remuneration | 222,452 | 235,297 |
Directors' pension contributions to money purchase schemes | 161,324 | 46,334 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
5. | EMPLOYEES AND DIRECTORS - continued |
Information regarding the highest paid director is as follows: |
2023 | 2022 |
£ | £ |
Emoluments etc | 137,400 | 119,720 |
Pension contributions to money purchase schemes | - | 6,334 |
6. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Equipment hire | 270,084 | 216,786 |
Depreciation - owned assets | 89,429 | 92,216 |
Loss/(profit) on disposal of fixed assets | 36,400 | (3,855 | ) |
Auditors' remuneration | 25,400 | 24,200 |
Auditors' remuneration for non audit work | 4,500 | 4,000 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
HMRC interest paid | 2,123 | - |
Hire purchase interest | - | 289 |
2,123 | 289 |
8. | 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 | 224,953 | 236,632 |
Deferred tax | (11,124 | ) | 89,157 |
Tax on profit | 213,829 | 325,789 |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
8. | TAXATION - continued |
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 | 912,703 | 1,596,307 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2022 - 19 %) |
228,176 |
303,298 |
Effects of: |
Expenses not deductible for tax purposes | 7,276 | 6,303 |
Tax losses generated | 50 | 229 |
Effect of different tax rate used for deferred tax | - | 16,465 |
Marginal relief | (19,470 | ) | - |
Effect of Super Deduction allowances claimed | (115 | ) | (506 | ) |
Effect on deferred tax of non qualifying asset | (2,088 | ) | - |
Total tax charge | 213,829 | 325,789 |
Group relief has been claimed and £100,172 of the tax charge represents the payment to group companies for surrendered tax losses. |
9. | INDIVIDUAL INCOME STATEMENT |
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. |
10. | DIVIDENDS |
2023 | 2022 |
£ | £ |
Ordinary shares of 1 each |
Interim | 150,524 | 620,000 |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
11. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 December 2022 | 35,260 | 4,085 | 61,113 |
Additions | - | - | 10,635 |
Disposals | - | - | - |
At 30 November 2023 | 35,260 | 4,085 | 71,748 |
DEPRECIATION |
At 1 December 2022 | 24,822 | 1,787 | 35,967 |
Charge for year | 2,088 | 574 | 7,745 |
Eliminated on disposal | - | - | - |
At 30 November 2023 | 26,910 | 2,361 | 43,712 |
NET BOOK VALUE |
At 30 November 2023 | 8,350 | 1,724 | 28,036 |
At 30 November 2022 | 10,438 | 2,298 | 25,146 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 December 2022 | 789,623 | 4,109 | 894,190 |
Additions | 81,113 | 1,900 | 93,648 |
Disposals | (283,282 | ) | - | (283,282 | ) |
At 30 November 2023 | 587,454 | 6,009 | 704,556 |
DEPRECIATION |
At 1 December 2022 | 506,070 | 764 | 569,410 |
Charge for year | 77,825 | 1,197 | 89,429 |
Eliminated on disposal | (242,071 | ) | - | (242,071 | ) |
At 30 November 2023 | 341,824 | 1,961 | 416,768 |
NET BOOK VALUE |
At 30 November 2023 | 245,630 | 4,048 | 287,788 |
At 30 November 2022 | 283,553 | 3,345 | 324,780 |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
11. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements | Fixtures |
to | and | Motor |
property | 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 |
12. | FIXED ASSET INVESTMENTS |
Group |
Shares in |
group |
undertakings |
£ |
COST |
At 1 December 2022 |
and 30 November 2023 | 573,119 |
NET BOOK VALUE |
At 30 November 2023 | 573,119 |
At 30 November 2022 | 573,119 |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
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 |
The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Subsidiaries |
Colne Valley Electrical (South) Limited |
Registered office: 5 Grange Way, Colchester, Essex, United Kingdom, CO2 8HG |
Nature of business: Electrical contractors |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Subsidiary's results for the years ended 30 November 2023 and 30 November 2022 have been consolidated within these financial statements. |
Colne Valley Electrical (North) Limited |
Registered office: 5 Grange Way, Colchester, Essex, United Kingdom, CO2 8HG |
Nature of business: Electrical contractors |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Subsidiary's results for the years ended 30 November 2023 and 30 November 2022 have been consolidated within these financial statements. |
Colne Valley Mechanical Limited |
Registered office: 5 Grange Way, Colchester, Essex, United Kingdom, CO2 8HG |
Nature of business: Mechanical installation |
% |
Class of shares: | holding |
Ordinary | 50.00 |
Due to the fact that Colne Valley Electrical Limited exercises control over Colne Valley Mechanical Limited, it has been treated as a subsidiary. Accordingly its results for the years ended 30 November 2023 and 30 November 2022 have been consolidated within these financial statements. |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Colne Valley Aviation Limited |
Registered office: 5 Grange Way, Colchester, Essex, United Kingdom, CO2 8HG |
Nature of business: Holding company |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Subsidiary's results for the years ended 30 November 2023 and 30 November 2022 have been consolidated within these financial statements. |
Colne Valley Site Services Limited |
Registered office: 5 Grange Way, Colchester, Essex, United Kingdom, CO2 8HG |
Nature of business: Dormant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
Subsidiary's results for the years ended 30 November 2023 and 30 November 2022 have been consolidated within these financial statements. |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
Subsidiaries excluded from consolidation |
Registered office: 5 Grange Way, Colchester, Essex, United Kingdom, CO2 8HG |
Nature of business: As detailed below |
% |
Class of shares: | holding |
As detailed below |
Under section 405 of the Companies Act 2006, the directors have chosen not to consolidate the results of the subsidiaries listed below since they are not material individually, or collectively, for the purpose of giving a true and fair view. |
Anglian Flight Centres Limited |
Nature of business: Aviation and flying instruction |
Shareholding: 100% Ordinary |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | (26,783 | ) | (107,755 | ) |
Profit / (loss) for the year | 80,972 | 32,745 |
Bulldog Aviation Limited |
Nature of business: Aviation |
Shareholding: 100% Ordinary |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | (71,069 | ) | 26,165 |
Profit / (loss) for the year | (97,234 | ) | 15,367 |
Anglian Warbirds Limited |
Nature of business: Dormant |
Shareholding: 100% Ordinary |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 1 | 1 |
Aero Anglia Limited |
Nature of business: Repair and maintenance of aircraft |
Shareholding: 100% Ordinary and 100% Ordinary B |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves | 137,292 | 9,205 |
Profit / (loss) for the year | 128,087 | 16,467 |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
12. | FIXED ASSET INVESTMENTS - continued |
At 30 November 2023 the net book value of shares in group undertakings which have not been consolidated in these financial statements was £573,119 (2022: £573,119). The original cost of the shares acquired directly or indirectly by the subsidiary Colne Valley Aviation Limited was as follows:- |
£ |
Bulldog Aviation Limited | 946,299 |
Anglian Flight Centres Limited | 453,700 |
Anglian Warbirds Limited | 1 |
Aero Anglia Limited | 120,000 |
In addition legal fees of £46,796 were incurred in respect of the acquisitions above. |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 3,744,595 | 4,031,244 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on |
contracts | 4,473,668 | 3,021,719 |
Other debtors | 1,731,819 | 1,696,987 |
Corporation tax | 7,689 | 7,688 |
VAT | 661,442 | 881,595 |
Prepayments | 133,275 | 129,883 |
10,752,488 | 9,769,116 |
Included in other debtors as at 30 November 2023 is £1,318,927 (2022: £1,533,319) owed by three subsidiaries not consolidated within these financial statements (see also note 19). The figures for 2023 and 2022 are stated after provisions for impairment of £55,877. |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade creditors | 4,909,547 | 5,218,042 |
Amounts owed to group undertakings | - | - |
Corporation tax | 124,780 | 169,321 |
Social security and other taxes | 194,425 | 179,156 |
VAT | - | - | 50,148 | - |
Other creditors | 352,640 | 100 |
Directors' current accounts | 179,158 | 179,158 | - | - |
Accruals | 578,386 | 501,146 |
6,338,936 | 6,246,923 |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 66,000 | 66,000 |
Between one and five years | 162,740 | 228,740 |
228,740 | 294,740 |
16. | PROVISIONS FOR LIABILITIES |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Deferred tax |
Accelerated capital allowances | 66,582 | 77,706 |
Group |
Deferred |
tax |
£ |
Balance at 1 December 2022 | 77,706 |
Provided during year | (11,124 | ) |
Balance at 30 November 2023 | 66,582 |
Company |
Deferred |
tax |
£ |
Balance at 1 December 2022 |
Provided during year | ( |
) |
Balance at 30 November 2023 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1 | 50 | 50 |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
18. | RESERVES |
Group |
Capital |
Retained | redemption |
earnings | reserve | Totals |
£ | £ | £ |
At 1 December 2022 | 8,298,387 | 50 | 8,298,437 |
Profit for the year | 490,212 | - | 490,212 |
Dividends | (150,524 | ) | - | (150,524 | ) |
At 30 November 2023 | 8,638,075 | 50 | 8,638,125 |
19. | RELATED PARTY DISCLOSURES |
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. |
The company operates from premises owned by a pension scheme in which a director has an interest. The lease commenced on 19 May 2017 and has an annual rent of £66,000. |
A s at 30 November 2023, £179,158 (2022: £179,158) was owed to a director. This balance is interest free and repayable on demand. |
During the year ended 30 November 2023, a total of key management personnel compensation of £912,270 (2022: £872,741) was paid. |
The following intercompany loans are interest free and are repayable on demand. |
As at 30 November 2023 £1,105,355 (2022: £1,333,141) was owed by Bulldog Aviation Limited to Colne Valley Aviation Limited. Bulldog Aviation Limited is not consolidated within these financial statements. |
As at 30 November 2023 £133,343 (2022: £119,947) was owed by Anglian Flight Centres Limited to Colne Valley Aviation Limited. Anglian Flight Centres Limited is not consolidated within these financial statements. |
As at 30 November 2023 £136,107 (2022: £136,107) was owed by Aero Anglia Limited to Colne Valley Aviation Limited. Aero Anglia Limited is not consolidated within these financial statements |
As at 30 November 2023 £2,779,241 (2022: £1,098,039) was owed by Colne Valley Mechanical Limited to fellow group companies. These amounts are removed when preparing the consolidated group financial statements. |
As at 30 November 2023 £40,722 (2022: £97,365) was owed by Anglian Flight Centres Limited to Aero Anglia Limited. |
As at 30 November 2023 £2,459 (2022: £36,693) was owed by Bulldog Aviation Limited to Anglian Flight Centres Limited. |
As at 30 November 2023 £13,232 (2022: £nil) was owed by Aero Anglia Limited to Bulldog Aviation Limited. |
Colne Valley Electrical Limited (Registered number: 02660357) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 November 2023 |
20. | POST BALANCE SHEET EVENTS |
On 27 June 2024 Colne Valley Aviation Limited and its subsidiaries were demerged from the group headed up by Colne Valley Electrical Limited. The directors estimate that the demerger will decrease the group's net assets by £2.5m. |
21. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is K T Barber. |