Caseware UK (AP4) 2023.0.135 2023.0.135 2024-03-312024-03-312023-10-0139Electrical contractorsfalsefalse40truefalse 02944618 2023-10-01 2024-03-31 02944618 2022-04-01 2023-09-30 02944618 2024-03-31 02944618 2023-09-30 02944618 2022-04-01 02944618 5 2023-10-01 2024-03-31 02944618 5 2022-04-01 2023-09-30 02944618 d:CompanySecretary1 2023-10-01 2024-03-31 02944618 d:Director1 2023-10-01 2024-03-31 02944618 d:Director2 2023-10-01 2024-03-31 02944618 d:RegisteredOffice 2023-10-01 2024-03-31 02944618 e:PlantMachinery 2023-10-01 2024-03-31 02944618 e:PlantMachinery 2024-03-31 02944618 e:PlantMachinery 2023-09-30 02944618 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-10-01 2024-03-31 02944618 e:MotorVehicles 2023-10-01 2024-03-31 02944618 e:MotorVehicles 2024-03-31 02944618 e:MotorVehicles 2023-09-30 02944618 e:MotorVehicles e:OwnedOrFreeholdAssets 2023-10-01 2024-03-31 02944618 e:OtherPropertyPlantEquipment 2023-10-01 2024-03-31 02944618 e:OtherPropertyPlantEquipment 2024-03-31 02944618 e:OtherPropertyPlantEquipment 2023-09-30 02944618 e:OtherPropertyPlantEquipment e:OwnedOrFreeholdAssets 2023-10-01 2024-03-31 02944618 e:OwnedOrFreeholdAssets 2023-10-01 2024-03-31 02944618 e:CurrentFinancialInstruments 2024-03-31 02944618 e:CurrentFinancialInstruments 2023-09-30 02944618 e:CurrentFinancialInstruments e:WithinOneYear 2024-03-31 02944618 e:CurrentFinancialInstruments e:WithinOneYear 2023-09-30 02944618 e:ReportableOperatingSegment1 2023-10-01 2024-03-31 02944618 e:ReportableOperatingSegment1 2022-04-01 2023-09-30 02944618 f:UnitedKingdom 2023-10-01 2024-03-31 02944618 f:UnitedKingdom 2022-04-01 2023-09-30 02944618 e:UKTax 2023-10-01 2024-03-31 02944618 e:UKTax 2022-04-01 2023-09-30 02944618 e:ShareCapital 2024-03-31 02944618 e:ShareCapital 2023-09-30 02944618 e:RetainedEarningsAccumulatedLosses 2023-10-01 2024-03-31 02944618 e:RetainedEarningsAccumulatedLosses 2024-03-31 02944618 e:RetainedEarningsAccumulatedLosses 2022-04-01 2023-09-30 02944618 e:RetainedEarningsAccumulatedLosses 2023-09-30 02944618 e:RetainedEarningsAccumulatedLosses 2022-04-01 02944618 e:AcceleratedTaxDepreciationDeferredTax 2024-03-31 02944618 e:AcceleratedTaxDepreciationDeferredTax 2023-09-30 02944618 e:TaxLossesCarry-forwardsDeferredTax 2024-03-31 02944618 e:TaxLossesCarry-forwardsDeferredTax 2023-09-30 02944618 d:FRS102 2023-10-01 2024-03-31 02944618 d:Audited 2023-10-01 2024-03-31 02944618 d:FullAccounts 2023-10-01 2024-03-31 02944618 d:PrivateLimitedCompanyLtd 2023-10-01 2024-03-31 02944618 e:WithinOneYear 2024-03-31 02944618 e:WithinOneYear 2023-09-30 02944618 e:BetweenOneFiveYears 2024-03-31 02944618 e:BetweenOneFiveYears 2023-09-30 02944618 g:PoundSterling 2023-10-01 2024-03-31 iso4217:GBP xbrli:pure

Registered number: 02944618









AJS LTD









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 MARCH 2024

 
AJS LTD
 
 
COMPANY INFORMATION


Directors
PJ O'Connor 
Mrs S H O'Connor 




Company secretary
Mrs S H O'Connor



Registered number
02944618



Registered office
Farley House
Kinvara Business Park

22-42 Freshwater Road

Dagenham

Essex

RM8 1RY




Independent auditor
Barnes Roffe LLP
Chartered Accountants  
Statutory Auditor

Leytonstone House

Leytonstone

London

E11 1GA





 
AJS LTD
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditor's report
 
5 - 8
Statement of income and retained earnings
 
9
Balance sheet
 
10
Statement of cash flows
 
11
Analysis of net debt
 
12
Notes to the financial statements
 
13 - 23

 
AJS LTD
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2024

Introduction
 
The directors' present their strategic report for the period ended 31 March 2024. The strategic report includes discussion of significant matters that impact the development and performance of the business for the year.

Business review
 
The principal activity of the Company continues to be that of installation, upgrades and repairs, compliance testing, PPM and certification. Our clients are drawn from public and private sectors and include housing, commercial and retail. 
The Directors are pleased with the results for the period which are in line with expectations and are positive in their outlook for the coming financial year based on this year’s strong financial performance and the current pipeline. 
Future developments
The Company plans to continue to build on its strong foundations by continuing to train and increase knowledge, so it can deliver a quality service without compromise.
The Company has established a strong committed order book and remains positive about the future outlook.
The Directors aim to continue to focus on the growth of the Company and to build on its strong reputation within the Fire & Security and Electrical sectors.

Principal risks and uncertainties
 
The concern around inflation, the impact on costs and the shortage of labour continue to be a challenge but the directors feel they are well placed and have the systems and controls in place to mitigate these risks.
Competition in the market place as always continues to be a risk to the Company, with price pressure to secure new business and successfully retender existing contracts increasing the threat of margin erosion. 
The Company meets its day-to-day working capital requirements through its cash flow, and forecasts show that the Company will be able to operate within the level of its current facilities.

Financial key performance indicators
 
We consider that our key financial performance indicators are those that communicate the financial performance and strength of the company, these being turnover and gross profit:
- Turnover £10.086m (2023 - £30.779m)
- Gross profit £2.389m (2023 - £745k)
- Gross profit percentage 23.7% (2023 - 2.4%)    


 

Page 1

 
AJS LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024


This report was approved by the board on 28 August 2024 and signed on its behalf.



PJ O'Connor
Director
Page 2

 
AJS LTD
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2024

The directors present their report and the financial statements for the period ended 31 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the period, after taxation, amounted to £662,340 (2023 - loss £2,522,036).

The directors do not recommend the payment of a final dividend.

Directors

The directors who served during the period were:

PJ O'Connor 
Mrs S H O'Connor 

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Page 3

 
AJS LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2024

Post balance sheet events

There have been no significant events affecting the Company since the year end which haven't already been reflected in the accounts. 

This report was approved by the board on 28 August 2024 and signed on its behalf.
 





PJ O'Connor
Director

Page 4

 
AJS LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AJS LTD
 

Opinion


We have audited the financial statements of AJS Ltd (the 'Company') for the period ended 31 March 2024, which comprise the Statement of income and retained earnings, the Balance sheet, the Statement of cash flows and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 March 2024 and of its profit for the period 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 Auditor's 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 United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
AJS LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AJS LTD (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
AJS LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AJS LTD (CONTINUED)


Auditor's 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 an Auditor's report 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.


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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
Ensuring that the engagement team collectively had the appropriate competence, capabilities and skills to identify non-compliance with applicable laws and regulations;
We identified the laws and regulations applicable to the company through discussions with directors, and from our commercial knowledge and experience of the relevant sector;
The specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, are as follows - Companies Act 2006, FRS 102, Employment legislation and Tax legislation;
We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
Laws and regulations were communicated within the audit team at the planning meeting, and the audit team remained alert to instances of non-compliance throughout the audit.
 
We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
 
Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; 
Considering the internal controls in place to mitigate risks of fraud and non- compliance with laws and regulations;
Reviewing the financial statements and testing the disclosures against supporting documentation;
Performing analytical procedures to identify any unusual or unexpected trends or anomalies;
Inspecting and testing journal entries to identify unusual or unexpected transactions; and
Assessing whether judgement and assumptions made in determining significant accounting estimates were indicative of management bias.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's report.


Page 7

 
AJS LTD
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AJS LTD (CONTINUED)


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 2006Our 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 an Auditor's report 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.





Andrew May ACCA (Senior statutory auditor)
for and on behalf of
Barnes Roffe LLP
Chartered Accountants  
Statutory Auditor
Leytonstone House
Leytonstone
London
E11 1GA

2 September 2024
Page 8

 
AJS LTD
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE PERIOD ENDED 31 MARCH 2024

Period to 31 March 2024
Period to 30 September 2023
Note
£
£

  

Turnover
 4 
10,086,067
30,778,897

Cost of sales
  
(7,697,102)
(30,033,842)

Gross profit
  
2,388,965
745,055

Administrative expenses
  
(1,551,722)
(3,979,271)

Operating profit/(loss)
  
837,243
(3,234,216)

Interest receivable and similar income
 8 
54,042
60,906

Interest payable and similar charges
 9 
(5,168)
(9,998)

Profit/(loss) before tax
  
886,117
(3,183,308)

Tax on profit/(loss)
 10 
(223,777)
661,272

Profit/(loss) after tax
  
662,340
(2,522,036)

  

Retained earnings at the beginning of the period
  
4,137,251
6,659,287

Profit/(loss) for the period
  
662,340
(2,522,036)

Retained earnings at the end of the period
  
4,799,591
4,137,251
The notes on pages 13 to 23 form part of these financial statements.
Page 9

 
AJS LTD
REGISTERED NUMBER: 02944618

BALANCE SHEET
AS AT 31 MARCH 2024

31 March
30 September
2024
2023
                                                                        Note
£
£

Fixed assets
  

Tangible assets
 11 
38,948
45,871

  
38,948
45,871

Current assets
  

Stocks
 12 
43,462
21,000

Debtors: amounts falling due within one year
 13 
10,955,913
10,628,719

Cash at bank and in hand
 14 
7,783,320
8,989,011

  
18,782,695
19,638,730

Creditors: amounts falling due within one year
 15 
(14,022,050)
(15,547,348)

Net current assets
  
 
 
4,760,645
 
 
4,091,382

Total assets less current liabilities
  
4,799,593
4,137,253

  

Net assets
  
4,799,593
4,137,253


Capital and reserves
  

Called up share capital 
  
2
2

Profit and loss account
  
4,799,591
4,137,251

  
4,799,593
4,137,253


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 28 August 2024.




PJ O'Connor
Director

The notes on pages 13 to 23 form part of these financial statements.
Page 10

 
AJS LTD
 

STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2024

Period to 31 March 2024
Period to 30 September 2023
£
£

Cash flows from operating activities

Profit/(loss) for the financial period
662,340
(2,522,036)

Adjustments for:

Depreciation of tangible assets
6,923
24,406

Interest paid
5,168
9,998

Interest received
(54,042)
(60,906)

Taxation charge
223,777
(661,272)

(Increase) in stocks
(22,462)
(3,600)

(Increase) in debtors
(76,471)
(3,448,556)

(Decrease)/increase in creditors
(1,525,298)
9,646,085

Corporation tax (paid)
(474,500)
(363,626)

Net cash generated from operating activities

(1,254,565)
2,620,493


Cash flows from investing activities

Purchase of tangible fixed assets
-
(1,999)

Interest received
54,042
60,906

Net cash from investing activities

54,042
58,907

Cash flows from financing activities

Interest paid
(5,168)
(9,998)

Net cash used in financing activities
(5,168)
(9,998)

Net (decrease)/increase in cash and cash equivalents
(1,205,691)
2,669,402

Cash and cash equivalents at beginning of period
8,989,011
6,319,609

Cash and cash equivalents at the end of period
7,783,320
8,989,011


Cash and cash equivalents at the end of period comprise:

Cash at bank and in hand
7,783,320
8,989,011

7,783,320
8,989,011


The notes on pages 13 to 23 form part of these financial statements.

Page 11

 
AJS LTD
 

ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 31 MARCH 2024




At 1 October 2023
Cash flows
At 31 March 2024
£

£

£

Cash at bank and in hand

8,989,011

(1,205,691)

7,783,320


8,989,011
(1,205,691)
7,783,320

The notes on pages 13 to 23 form part of these financial statements.
Page 12

 
AJS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

1.


General information

AJS Ltd ("the Company") is a private company limited by shares, incorporated in England and Wales, its registered office is Farley House, Kinvara Business Park, 22-42 Freshwater Road, Dagenham, Essex, RM8 1RY.
The principal activity of the company continued to be that of electrical contractors.
The financial statements are reporting for the 6 month period ended 31 March 2024. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The following principal accounting policies have been applied:

 
2.2

Going concern

The directors are not aware of any circumstances likely to arise which may cause the going concern basis to be inappropriate.

  
2.3

Revenue

Turnover is measured by reference to the stage of completion of the contract activity.
The company recognises revenue when the amount of revenue can be measured reliably, when it is probable that future economic benefits will flow to the company and when specific criteria have been met as described below.
Long term contracts
Profit on long term contracts is taken as the work carried out if the final 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 costs as contract activity progresses. Turnover is recognised relative to the stage of completion of the contract. Revenues 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.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Page 13

 
AJS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.5

Research and development

In the research phase of an internal project it is not possible to demonstrate that the project will generate future economic benefits and hence all expenditure on research shall be recognised as an expense when it is incurred. Intangible assets are recognised from the development phase of a project if and only if certain specific criteria are met in order to demonstrate the asset will generate probable future economic benefits and that its cost can be reliably measured. The capitalised development costs are subsequently amortised on a straight-line basis over their useful economic lives, which range from 3 to 6 years.
If it is not possible to distinguish between the research phase and the development phase of an internal project, the expenditure is treated as if it were all incurred in the research phase only.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Current and deferred taxation

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 14

 
AJS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

2.Accounting policies (continued)

 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the Company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on a reducing balance basis.

Depreciation is provided on the following basis:

Plant and machinery
-
25% reducing balance
Motor vehicles
-
25% reducing balance
Other fixed assets
-
25% reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.9

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

  
2.10

Financial instruments

The Company 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.

Page 15

 
AJS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

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.
a) Critical judgments in applying accounting policies
The company does not consider there to be any critical judgments in applying accounting policies.
b) Critical accounting estimates and assumptions
The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The 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 are addressed below.
i) Impairment of debtors
The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors, and historical experience. See note 13 for the net carrying amount of the debtors.
 ii) Contracts
The Company applies a general policy of recognising profit on contracts only when the final outcome can be assessed with reasonable certainty. In doing so the directors have made key assumptions regarding the future costs to complete the contracts.


4.


Turnover

An analysis of turnover by class of business is as follows:


6 month period to 31 March 2024
18 month period to 30 September 2023
£
£

Contract revenue
10,086,067
30,778,897


Analysis of turnover by country of destination:

6 month period to 31 March 2024
18 month period to 30 September 2023
£
£

United Kingdom
10,086,067
30,778,897


Page 16

 
AJS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

5.


Auditor's remuneration

During the period, the Company obtained the following services from the Company's auditor:


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
13,000
13,000

6.


Employees

Staff costs, including directors' remuneration, were as follows:


6 month period to 31 March 2024
18 month period to 30 September 2023
£
£

Wages and salaries
1,538,708
5,204,252

Social security costs
78,221
244,702

Cost of defined contribution scheme
17,657
58,411

1,634,586
5,507,365


The average monthly number of employees, including the directors, during the period was as follows:


        2024
        2023
            No.
            No.







Directors
2
2



Managers
7
7



Administration
15
18



Site workers
15
13

39
40


7.


Directors' remuneration

6 month period to 31 March 2024
18 month period to 30 September 2023
£
£

Directors' emoluments
15,269
45,435


Page 17

 
AJS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

8.


Interest receivable and similar income

6 month period to 31 March 2024
18 month period to 30 September 2023
£
£


Other interest
54,042
60,906


9.


Interest payable and similar charges

6 month period to 31 March 2024
18 month period to 30 September 2023
£
£


Other interest
5,168
9,998


10.


Taxation


2024
2023
£
£

Corporation tax


Adjustments in respect of previous periods
-
(363,625)


Total current tax
-
(363,625)

Deferred tax


Origination and reversal of timing differences
223,777
(297,647)

Total deferred tax
223,777
(297,647)


Taxation on profit/(loss) on ordinary activities
223,777
(661,272)
Page 18

 
AJS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024
 
10.Taxation (continued)


Factors affecting tax charge for the period

The tax assessed for the period is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
886,117
(3,183,308)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
221,529
(795,827)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,673
18,532

Depreciation for period/year in excess of capital allowances
575
1,772

Differences in respect of changes in corporation tax rates
-
114,251

Total tax charge for the period
223,777
(661,272)


Factors that may affect future tax charges

The Company has tax losses carried forward amounting to £297,147 (2023 - £1,187,972)

Page 19

 
AJS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

11.


Tangible fixed assets







Plant and machinery
Motor vehicles
Computer and office equipment
Total

£
£
£
£



Cost or valuation


At 1 October 2023
61,495
45,488
286,767
393,750



At 31 March 2024

61,495
45,488
286,767
393,750



Depreciation


At 1 October 2023
48,253
38,552
261,074
347,879


Charge for the period on owned assets
1,868
991
4,064
6,923



At 31 March 2024

50,121
39,543
265,138
354,802



Net book value



At 31 March 2024
11,374
5,945
21,629
38,948



At 30 September 2023
13,242
6,936
25,693
45,871

Page 20

 
AJS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

12.


Stocks

31 March
30 September
2024
2023
£
£

Spare parts
43,462
21,000



13.


Debtors

31 March
30 September
2024
2023
£
£


Trade debtors
2,247,299
1,823,369

Other debtors
6,000,000
6,000,000

Sales rententions
21,708
22,894

Prepayments and accrued income
29,882
27,088

Amounts recoverable on long term contracts
1,739,834
2,088,901

Corporation tax repayable
838,481
363,981

Deferred taxation
78,709
302,486

10,955,913
10,628,719



14.


Cash and cash equivalents

31 March
30 September
2024
2023
£
£

Cash at bank and in hand
7,783,320
8,989,011



15.


Creditors: Amounts falling due within one year

31 March
30 September
2024
2023
£
£

Trade creditors
13,289,448
13,310,520

Other taxation and social security
290,355
186,710

Other creditors
19,454
1,458,627

Accruals and deferred income
422,793
591,491

14,022,050
15,547,348


Page 21

 
AJS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

16.


Deferred taxation






2024


£






At beginning of year
302,486


Credited to profit or loss
(223,777)



At end of year
78,709

The deferred tax asset is made up as follows:

31 March
30 September
2024
2023
£
£


Accelerated capital allowances
4,422
5,493

Tax losses carried forward
74,287
296,993

78,709
302,486


17.


Pension commitments

The Company operates a defined contributions 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 and amounted to £17,657 (2023 - £58,411). Contributions totalling £8,521 (2023 - £8,750) were payable to the fund at the balance sheet date and are included in creditors.


18.


Commitments under operating leases

At 31 March 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

31 March
30 September
2024
2023
£
£


Not later than 1 year
219,381
217,958

Later than 1 year and not later than 5 years
290,893
482,893

510,274
700,851

Page 22

 
AJS LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2024

19.


Related party transactions

During the period the company hired equipment and vehicles and was charged a management charge by a company under the common control of a director totalling £449,754 (2023 - £4,805,193).
During the period the company paid rental charges of £115,200 (
2023 - £345,600) to a company under the common control of a director. 
During the period the company made purchases of £1,189,834 (
2023 - (£350,365)) and sales of £6,485 (2023 - £689,034) to companies under the common control of a director. 
At the year end the company was owed £6,000,000 
(2023 - £6,000,000) by companies under the common control of a director. 


20.


Controlling party

The company considers P J O'Connor to be the ultimate controlling party.
 
Page 23