IRIS Accounts Production v24.2.0.383 06368614 Board of Directors 1.4.23 31.3.24 31.3.24 true false true true false false true true false Auditors Opinion Ordinary 1.00000 Ordinary B 1.00000 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REGISTERED NUMBER: 06368614 (England and Wales)


























STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

FOR

CORRECT CONTRACT SERVICES LIMITED

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Notes to the Financial Statements 12


CORRECT CONTRACT SERVICES LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2024







DIRECTORS: Mr D L Gladwyn
Mr T S Dempsey
Mr A L Denney
Mr M G Fray



SECRETARY: Mr D L Gladwyn



REGISTERED OFFICE: Fleming Court
Leigh Road
Eastleigh
Southampton
Hampshire
SO50 9PD



BUSINESS ADDRESS: Unit 21B Hopkinson Way
West Portway Industrial Estate
Andover
Hampshire
SP10 3ZE



REGISTERED NUMBER: 06368614 (England and Wales)



SENIOR STATUTORY AUDITOR: Graham Taylor



AUDITORS: Langdowns DFK Limited
Statutory Auditor
Fleming Court
Leigh Road
Eastleigh
Southampton
Hampshire
SO50 9PD

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024


The directors present their strategic report for the year ended 31 March 2024.

REVIEW OF BUSINESS
During the year, the company achieved record revenues of £27.9m as a result of continued organic growth across all business areas. Profitability was strong with net profit of £3.5m.

The business continues to develop its long-term contract base with both existing and new customers, and considers its order book to be very strong. The Company is now well established in all sectors of operation and is recognised as a market leader.

Profits continue to be reinvested back into the business to support future growth. This includes increases in the direct labour organisation, administrative support and overall operational capability.

At the year-end the Company had shareholder funds of £3.5m (2023 £0.9m) including a profit and loss reserve of £3.5m (2023 £0.9m). The directors consider the results for the year and the financial position at year-end to be strong.

PRINCIPAL RISKS AND UNCERTAINTIES
The Directors continue to maintain their focus on sustainable growth in all areas of the business. To this end, there is a continual review of business efficiency alongside tight control of working capital.

The supply chain - 2022/23 experienced the highest levels of inflation in the past 30 years, with CPI exceeding 11% at its peak. This combined with certain product shortages has necessitated an expansion of the group supply chain to mitigate any potential effects on daily business delivery. The directors are confident that the current supply base is more than sufficient to meet the demands of future growth.

Work force - there is a labour shortage that is a challenge to the business. In response, a strategy has been devised that is regularly adapted to changing market conditions. As part of this strategy the business has established a network of regional offices that enable it to take advantage of the national labour pool.

Political risk - the primary parties in the UK have reaffirmed their spending commitments on projects such as warmer homes. This will ensure that funds remain available to support investment in insulation alongside other improvements such as solar panels and low carbon heating.

Trading conditions remain positive, and the Directors are confident that the coming financial year will see continued business growth with both new and existing customers across all areas of the business.

FINANCIAL HIGHLIGHTS
2024 2023 2022
Turnover 27,839,345 18,019,639 9,443,546
Gross Profit 8,789,630 4,483,722 2,074,519
GP% 31.57% 24.88% 21.96%
Profit Before Tax 3,453,535 748,218 (75,822 )

ON BEHALF OF THE BOARD:





Mr D L Gladwyn - Director


6 September 2024

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2024


The directors present their report with the financial statements of the company for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the provision of compliance and energy services including whole home retrofit.

DIVIDENDS
The total distribution of dividends for the year ended 31 March 2024 was £38,000 (2023: £126,000).

RESEARCH AND DEVELOPMENT
The company has not directly undertaken any research and development activities.

FUTURE DEVELOPMENTS
The directors aim to maintain the existing management policies which have resulted in the company's present financial position and to ensure that management are well positioned to continue to develop the business.

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

Mr D L Gladwyn
Mr T S Dempsey
Mr A L Denney
Mr M G Fray

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

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

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2024


AUDITORS
The auditors, Langdowns DFK Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mr D L Gladwyn - Director


6 September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CORRECT CONTRACT SERVICES LIMITED


Qualified Opinion
We have audited the financial statements of Correct Contract Services Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion, 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 company's affairs as at 31 March 2024 and of the company's profit for
the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for qualified opinion
This is the first year the company has exceeded statutory thresholds requiring the company to be audited. We were therefore not appointed as auditor of the company until after 31 March 2023 and thus did not observe the counting of physical stocks at the end of that year. We were unable to satisfy ourselves by alternative means concerning the stock and work in progress of £1,535,664 held at 31 March 2023 by using other audit procedures. Consequently we were unable to determine whether any adjustments to this amount at 31 March 2023 was necessary or whether there was any consequential effect on the cost of sales for the year ended 31 March 2024.

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 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CORRECT CONTRACT SERVICES LIMITED


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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

Arising solely from the limitation on the scope of our work relating to stock, 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 in relation to which 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 Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CORRECT CONTRACT SERVICES 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.

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:

As part of our audit planning procedures we identify the significant laws and regulations applicable to the company based upon our knowledge of the company, the industry in which it operates and from making enquiries with management. We consider those laws and regulations where non-compliance may have a material effect on the financial statements and those which have a direct impact on the financial statements. We identified that the most significant laws and regulations applicable during the year were compliance with the requirements of the Companies Act 2006, compliance with health and safety regulations and compliance with regulations in connection with gas, electric and heating systems installation.

Audit procedures performed by the engagement team in relation to laws and regulations include making enquiries of management as to any known or suspected instances of non-compliance, maintaining awareness throughout the course of the audit as to any indications of instances of non-compliance, undertaking a review of central records of accidents and incidents, undertaking a review of legal and professional invoices for any indications of instances of non-compliance and undertaking a review of the disclosures in the financial statements to supporting information and to disclosure checklists.

We also consider areas that are at a higher risk of causing material misstatement in the financial statements due to irregularities, including those resulting from fraud and how such fraud may occur. We discuss with senior management the key controls in place to mitigate the risk of fraud and enquire as to whether they are aware of, or suspect, any fraudulent activities having taken place.

Throughout the audit, we maintain an appropriate level of professional scepticism when provided with information and explanations. We consider the appropriateness of significant accounting journals that were processed during the year, assess the reasonableness of any significant accounting estimates and consider whether there were any indications of bias by management during the year that represents a risk of material misstatement due to fraud. We also carry out analytical procedures to identify any unusual or unexpected variances to expectations as these may be an indication of management over-ride or 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 Report of the Auditors.

Other matter
This is the first year the company has exceeded statutory thresholds requiring the company to be audited. The comparative figures of the company for the year ended 31 March 2023 were therefore not audited.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
CORRECT CONTRACT SERVICES 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.




Graham Taylor (Senior Statutory Auditor)
for and on behalf of Langdowns DFK Limited
Statutory Auditor
Fleming Court
Leigh Road
Eastleigh
Southampton
Hampshire
SO50 9PD

9 September 2024

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024 2023
Notes £    £   

TURNOVER 4 27,839,345 18,019,639

Cost of sales 19,049,715 13,535,917
GROSS PROFIT 8,789,630 4,483,722

Administrative expenses 5,290,754 3,689,467
OPERATING PROFIT 6 3,498,876 794,255

Interest receivable and similar income 1,071 379
3,499,947 794,634

Interest payable and similar expenses 7 46,412 46,416
PROFIT BEFORE TAXATION 3,453,535 748,218

Tax on profit 8 874,746 155,733
PROFIT FOR THE FINANCIAL YEAR 2,578,789 592,485

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME FOR
THE YEAR

2,578,789

592,485

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

BALANCE SHEET
31 MARCH 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 507,604 539,304

CURRENT ASSETS
Stocks 11 1,149,474 1,535,664
Debtors 12 7,243,856 5,138,866
Cash at bank and in hand 1,065,567 783,302
9,458,897 7,457,832
CREDITORS
Amounts falling due within one year 13 6,269,533 6,707,150
NET CURRENT ASSETS 3,189,364 750,682
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,696,968

1,289,986

CREDITORS
Amounts falling due after more than one
year

14

(146,496

)

(260,375

)

PROVISIONS FOR LIABILITIES 18 (110,550 ) (130,478 )
NET ASSETS 3,439,922 899,133

CAPITAL AND RESERVES
Called up share capital 19 1,000 1,000
Retained earnings 20 3,438,922 898,133
SHAREHOLDERS' FUNDS 3,439,922 899,133

The financial statements were approved by the Board of Directors and authorised for issue on 6 September 2024 and were signed on its behalf by:





Mr D L Gladwyn - Director


CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 April 2022 1,000 431,648 432,648

Changes in equity
Dividends - (126,000 ) (126,000 )
Total comprehensive income - 592,485 592,485
Balance at 31 March 2023 1,000 898,133 899,133

Changes in equity
Dividends - (38,000 ) (38,000 )
Total comprehensive income - 2,578,789 2,578,789
Balance at 31 March 2024 1,000 3,438,922 3,439,922

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024


1. STATUTORY INFORMATION

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

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


The company's principal place of business is Unit 21B Hopkinson Way, West Portway Industrial Estate, Andover, Hampshire, SP10 3ZE.

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
The financial statements have been prepared under the historical cost convention.

The company prepares its financial statements under Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council. The previous financial statements, for the year ended 31 March 2023, were prepared in accordance with FRS 102 including the provisions of Section 1A "Small Entities". The current financial statements, for the year ended 31 March 2024, have been prepared in accordance with FRS 102, but not including the provisions of Section 1A "Small Entities" due to the current size of Correct Contract Services Limited.

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

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d).

Significant judgements and estimates
In the application of the Company's accounting policies, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and the underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The company receives revenue through contracts that span over a period of time and over the year end. The company has a policy to review each contract at the year end to determine level of completion and profitability. Using actual and forecast information the company is able to determine the level of revenue to include for each contract at the year end and calculate any year end debtors, creditors and work-in-progress that should be included in the Balance Sheet. Some of the contracts are carried out over a long period of time and therefore management have to use their skills and knowledge of the industry to make the judgements and estimates on each contract.

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

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


3. ACCOUNTING POLICIES - continued

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Improvements to property - 20% straight line
Plant and machinery - 20% straight line
Fixtures and fittings - 20% straight line
Motor vehicles - 20% straight line
Equipment - Straight line over 3 years

All fixed assets are initially recorded at cost.

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. Raw materials and consumables are valued on the basis of purchase cost. Work in progress is valued on the basis of direct costs of labour and parts.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the 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.

Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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 applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

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

Debtors and creditors receivable / payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the Income Statement in administrative expenses.

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


3. ACCOUNTING POLICIES - continued

Provisions
Provisions are recognised when the Company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefit will be required to settle the obligation and a reliable estimate can be made.

4. TURNOVER

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

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

2024 2023
£    £   
Rendering of services 27,839,345 18,019,639
27,839,345 18,019,639

Turnover, consists entirely of revenues arising from one class of business in the United Kingdom.

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 5,619,382 4,450,669
Social security costs 553,354 432,651
Other pension costs 96,470 75,268
6,269,206 4,958,588

The average number of employees during the year was as follows:
2024 2023

Direct 82 75
Admin 79 52
161 127

The key management personnel of the company are considered to be the directors.

2024 2023
£    £   
Directors' remuneration 303,355 74,706

Information regarding the highest paid director for the year ended 31 March 2024 is as follows:
2024
£   
Emoluments etc 96,690

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


6. OPERATING PROFIT

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

20242023

££
Depreciation220,297193,709
(Profit) / Loss on disposal of fixed assets(13,558)483
Operating leases - land and buildings168,73490,073
Auditors' remuneration10,000-

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Bank interest 6,808 11,528
Loan interest 15,499 9,679
Other interest payable - 8,022
Hire purchase 24,105 17,187
46,412 46,416

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax 894,674 72,558

Deferred tax (19,928 ) 83,175
Tax on profit 874,746 155,733

UK corporation tax has been charged at 25% (2023 - 19%).

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

2024 2023
£    £   
Profit before tax 3,453,535 748,218
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 19%)

863,384

142,161

Effects of:
Expenses not deductible for tax purposes 10,545 6,932
Capital allowances in excess of depreciation - (31,829 )
Depreciation in excess of capital allowances 20,164 -
Utilisation of tax losses - (22,073 )
Other temporary timing differences 581 (22,633 )
Deferred tax (19,928 ) 83,175
Total tax charge 874,746 155,733

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


9. DIVIDENDS
2024 2023
£    £   
Ordinary shares of £1 each
Interim 38,000 126,000

10. TANGIBLE FIXED ASSETS
Improvements Fixtures
to Plant and and
property machinery fittings
£    £    £   
COST
At 1 April 2023 30,957 15,334 32,898
Additions 12,330 - 7,100
Disposals - - -
At 31 March 2024 43,287 15,334 39,998
DEPRECIATION
At 1 April 2023 26,647 12,613 21,446
Charge for year 3,580 859 3,702
Eliminated on disposal - - -
At 31 March 2024 30,227 13,472 25,148
NET BOOK VALUE
At 31 March 2024 13,060 1,862 14,850
At 31 March 2023 4,310 2,721 11,452

Motor
vehicles Equipment Totals
£    £    £   
COST
At 1 April 2023 882,314 192,623 1,154,126
Additions 89,391 82,720 191,541
Disposals (45,515 ) - (45,515 )
At 31 March 2024 926,190 275,343 1,300,152
DEPRECIATION
At 1 April 2023 407,832 146,284 614,822
Charge for year 170,220 41,936 220,297
Eliminated on disposal (42,571 ) - (42,571 )
At 31 March 2024 535,481 188,220 792,548
NET BOOK VALUE
At 31 March 2024 390,709 87,123 507,604
At 31 March 2023 474,482 46,339 539,304

The net book value of plant and machinery assets, included in the above, which are held under hire purchase contracts are £262,050 (2023: £306,807).

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


11. STOCKS
2024 2023
£    £   
Stocks 1,149,474 1,535,664

Stocks includes £561,583 (2023: £655,465) of raw materials and consumables and £587,891 (2023: £880,199) of work in progress.

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Trade debtors 6,671,241 4,849,373
Amounts owed by group undertakings 251,095 137,695
Other debtors 421 10,399
Prepayments and accrued income 321,099 141,399
7,243,856 5,138,866

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Bank loans and overdrafts (see note 15) 50,000 50,000
Hire purchase contracts (see note 16) 122,110 124,169
Trade creditors 2,759,910 2,959,979
Tax 894,674 72,827
Social security and other taxes 243,805 184,341
VAT 691,449 657,919
Other creditors 647 1,386
Pension control 21,892 16,288
Directors' current accounts 22,740 56,162
Accruals and deferred income 1,462,306 2,584,079
6,269,533 6,707,150

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Bank loans (see note 15) 70,835 120,835
Hire purchase contracts (see note 16) 75,661 139,540
146,496 260,375

15. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 50,000 50,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 50,000 50,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 20,835 70,835

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 122,110 124,169
Between one and five years 75,661 139,540
197,771 263,709

Non-cancellable operating leases
2024 2023
£    £   
Within one year 108,050 78,450
Between one and five years 442,006 140,400
In more than five years 453,333 -
1,003,389 218,850

17. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£    £   
Bank loans 120,835 170,835
Hire purchase contracts 197,771 263,709
318,606 434,544

Hire purchase contracts are secured over the assets acquired under the agreements.

80% of the bank loans are secured by the Government (being part of the Coronavirus Business Interruption Loan Scheme).

18. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax
Accelerated capital allowances 110,550 130,478

Deferred
tax
£   
Balance at 1 April 2023 130,478
Movement in year (19,928 )
Balance at 31 March 2024 110,550

Deferred tax has been charged at 25% (2023: 25%).

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
950 Ordinary £1 950 1,000
(2023 - 1,000 )
50 Ordinary B £1 50 -
1,000 1,000

During the year 50 Ordinary shares of £1 each were re-designated into 50 Ordinary B shares of £1 each.

The Ordinary shares and Ordinary B shares rank pari passu in all respects except the Ordinary B shares have no rights to dividend distributions.

20. RESERVES
Retained
earnings
£   

At 1 April 2023 898,133
Profit for the year 2,578,789
Dividends (38,000 )
At 31 March 2024 3,438,922

21. ULTIMATE PARENT COMPANY

CCS TAD Limited is regarded by the directors as being the company's ultimate parent company.

The parent undertaking of the smallest and largest group within which this company belongs and for which group accounts are prepared is CCS TAD Limited, registered at Fleming Court, Leigh Road, Eastleigh, Southampton, Hampshire SO50 9PD. Group accounts will be available from the Registrar of Companies.

22. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 March 2024 and 31 March 2023:

2024 2023
£    £   
Mr D L Gladwyn
Balance outstanding at start of year - -
Amounts advanced 1,142 1,556
Amounts repaid (1,142 ) (1,556 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

Mr A L Denney
Balance outstanding at start of year - -
Amounts advanced 2,326 2,415
Amounts repaid (2,326 ) (2,415 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

The loans were unsecured and interest free with no specified repayment date.

CORRECT CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 06368614)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


23. RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity
2024 2023
£    £   
Dividend paid to parent 38,000 126,000
Amount due from related party 192,775 132,775

Key management personnel of the entity or its parent (in the aggregate)
2024 2023
£    £   
Interest paid to related party 3,240 2,909
Amount due to related party 22,740 56,162

The directors of the company are considered to be the key management personnel of the company and their remuneration is detailed in note 5.

Other related parties
2024 2023
£    £   
Purchases 51,583 66,750
Amount due from related party 58,320 4,920
Amount due to related party 3,333 5,388

24. ULTIMATE CONTROLLING PARTY

The controlling party is Mr D L Gladwyn.

Mr D L Gladwyn controls the company by virtue of the fact that he controls the majority of the voting rights of the parent company, CCS TAD Limited.