Company registration number 03907309 (England and Wales)
ADANA CONSTRUCTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
ADANA CONSTRUCTION LIMITED
CONTENTS
Page
Company information
1
Directors' report
2
Directors' responsibilities statement
3
Strategic report
4 - 5
Independent auditor's report
6 - 9
Statement of income and retained earnings
10
Balance sheet
11
Statement of cash flows
12
Statement of changes in equity
13
Notes to the financial statements
14 - 20
ADANA CONSTRUCTION LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr Jawad Jassim
Mr Zorab Krikor
Secretary
Ms Helen Huxley
Company number
03907309
Registered office
Adana House
140 Higher Hillgate
Stockport
Cheshire
United Kingdom
SK1 3QT
Auditor
Xeinadin Audit Limited
Riverside House, Kings Reach Business Park
Yew Street
Stockport
Cheshire
United Kingdom
SK4 2HD
ADANA CONSTRUCTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

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

Principal activities

The principal activity of the company continued to be that of providing groundworks, hard landscaping, structural

concreting, concrete frameworks and the creation trenches for utilities on construction projects.

Results and dividends

The directors recommend a final dividend payment of £2,800,000 to be made in respect of the financial year end 31 March 2024. This dividend has not been recognised as a liability in the financial statements.

Directors of the company

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr Jawad Jassim
Mr Zorab Krikor
Mr Daniel Tennant
(Resigned 31 July 2024)
Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr Jawad Jassim
Director
28 August 2024
ADANA CONSTRUCTION LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors are responsible for preparing the annual 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 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

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.

ADANA CONSTRUCTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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

Principal activity

The principal activity of the company is that of providing groundworks, hard landscaping, structural concreting, concrete frameworks and the creation trenches for utilities on construction projects.

Fair review of the business

The company has continued its policy of internal investment and continual modernisation of its specialist offerings in ground works, reinforced concrete frames, external works, infrastructures and building modifications.

Over the past few years, we have endured a significant rise in energy costs and unprecedented increases in raw material costs. Adana have managed these risks and adapted its procurement strategies to manage such risks. The company remains extremely profitable, with excellent working capital and anticipates returning to a higher level of turnover and profit by next year. This is further implemented by the increase in staff and turnover secured for the following years with the company growth increasing year on year.

The principal key performance indicators of the company are:

Turnover £64,372,555 (2023: £14,576,323)
Gross margin 13.88% (2023: 21.28%)
Operating profit before tax and dividends £6,751,325 (2023: £1,889,942)
Operating profit before tax and dividends as a percentage 10.49% (2023: 12.97%)
Current assets ratio 1.41 (2023: 2.84)
Cash management (Cash as a percentage of liabilities) 62.07% (2023: 72.26%)
Accrued income management (Accrued income as a percentage of liabilities) 58.49% (2023: 174.30%)

Other risks within our current economic climate such market conditions and events across the globe may impact the construction industry and Adana Construction Ltd have implemented procedures in place if production if works decreases.

Adana have also secured future contracts that will be carried out of the next 48 months which also emphasises the direction of the business.

The financial risk management objective of the company is to ensure that sufficient cash is generated to enable the company to continue to trade profitably in the long term. This objective is achieved by ensuring solid growth in turnover and profits that stem from the provision of a high-quality bespoke service which is subject to continuous development, a stable and highly trained workforce and ongoing investment in appropriate plant and machinery through its associated company Nineveh Plant Hire Ltd.

 

Non-financial KPI's

Adana Construction Ltd aim to reduce the Co2 production from the business which will benefit the local and global environments. In doing this Adana Construction Ltd have already invested in Hybrid vehicles, installing charge points, installing solar panels to our HQ, and looking to invest in future technology to invest in a greener environment. Adana are also researching in the use of electric plant on site to also reduce the Co2 production of the business. As of January 2022, Adana introduced the use of HVO fuel on their fleet of plant which will decrease our Co2 emissions further. Adana have also updated their small plant fleet by increasing the number of battery-operated plants in lieu of plant requiring the use of fossil fuels.

ADANA CONSTRUCTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

Principal risks and uncertainties

The principal risks and uncertainties facing the company mainly relate to pricing pressure from competitors in the marketplace. However, Adana has established itself over recent years as a standout provider of high-quality service and can undertake the most complex projects where others cannot do so or have failed to complete the task. Furthermore, Adana has an exceptional reputation for risk reduction from tender stage through the defect liability period of all its contracts which means an enviable 100% recovery on retentions and often being called in to complete jobs where other contractors have failed to do so. All of this means that Adana does not feel the need to chase work as it finds good works comes to it but it’s well-established procurement routes with both our clients and supply chains established over 23 years the company is also able to mitigate price pressure.

 

Due to the current economic pressures and disruption with the supply of materials Adana have adjusted the business to ensure procurement strategies are adjusted in line with the demand of the market. This flexibility within Adana shows strength and emphasises the capabilities to deliver for our clients.

 

Within the year of 2023 Adana have added Cyber Crime insurance to our policies to counteract any possible impacts on our IT systems. Adana also have cyber security across all networks and virtual working has not been implemented.

 

Health, Safety & Retention of Employees

Adana pride ourselves on the established core staff. Many of the Adana staff have been working with the business for over 10 years. This commitment of staff allows Adana to plan works and labour allocation with ease.

 

Financial instruments

The company has a normal level of exposure to price, credit, liquidity and cashflow risks arising from trading activities which are all conducted in sterling. The company does not enter into any formally designated hedging arrangements.

 

 

Approved by the Board on 28 August 2024 and signed on its behalf by:

Mr Jawad Jassim
Director
ADANA CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ADANA CONSTRUCTION LIMITED
- 6 -
Opinion

We have audited the financial statements of Adana Construction Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

 

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

 

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

Other information

The 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 report. 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. 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.

ADANA CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ADANA CONSTRUCTION LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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.

ADANA CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ADANA CONSTRUCTION LIMITED
- 8 -
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:

 

We assessed the susceptibility of the company’s financial statements to material misstatement,

including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

    

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

ADANA CONSTRUCTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ADANA CONSTRUCTION LIMITED
- 9 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 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.

Philip Jones BA Hons (FCCA) (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited
29 August 2024
Accountants
Statutory Auditor
Riverside House, Kings Reach Business Park
Yew Street
Stockport
Cheshire
United Kingdom
SK4 2HD
ADANA CONSTRUCTION LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
64,372,555
14,576,323
Cost of sales
(55,316,411)
(11,474,676)
Gross profit
9,056,144
3,101,647
Administrative expenses
(2,237,732)
(1,211,705)
Profit before taxation
6,818,412
1,889,942
Tax on profit
7
(1,784,699)
(340,130)
Profit for the financial year
5,033,713
1,549,812
Retained earnings brought forward
3,476,586
2,776,774
Dividends
8
(2,800,000)
(850,000)
Retained earnings carried forward
5,710,299
3,476,586

The profit and loss account has been prepared on the basis that all operations are continuing operations.

ADANA CONSTRUCTION LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Current assets
Debtors
9
11,163,336
4,001,824
Cash at bank and in hand
8,709,296
1,365,592
19,872,632
5,367,416
Creditors: amounts falling due within one year
10
(14,161,333)
(1,889,830)
Net current assets
5,711,299
3,477,586
Capital and reserves
Called up share capital
12
1,000
1,000
Profit and loss reserves
5,710,299
3,476,586
Total equity
5,711,299
3,477,586
The financial statements were approved by the board of directors and authorised for issue on 28 August 2024 and are signed on its behalf by:
Mr Jawad Jassim
Director
Company registration number 03907309 (England and Wales)
ADANA CONSTRUCTION LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
15
11,004,442
(491,367)
Income taxes paid
(860,738)
(214,146)
Net cash inflow/(outflow) from operating activities
10,143,704
(705,513)
Financing activities
Dividends paid
(2,800,000)
(850,000)
Net cash used in financing activities
(2,800,000)
(850,000)
Net increase/(decrease) in cash and cash equivalents
7,343,704
(1,555,513)
Cash and cash equivalents at beginning of year
1,365,592
2,921,105
Cash and cash equivalents at end of year
8,709,296
1,365,592
ADANA CONSTRUCTION LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
1,000
2,776,774
2,777,774
Year ended 31 March 2023:
Profit and total comprehensive income
-
1,549,812
1,549,812
Dividends
8
-
(850,000)
(850,000)
Balance at 31 March 2023
1,000
3,476,586
3,477,586
Year ended 31 March 2024:
Profit and total comprehensive income
-
5,033,713
5,033,713
Dividends
8
-
(2,800,000)
(2,800,000)
Balance at 31 March 2024
1,000
5,710,299
5,711,299
ADANA CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
1
Accounting policies
Company information

The company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:Adana House, 140, Higher Hilgate, Stockport, Cheshire, SK1 3QT.

 

1.1
Accounting convention

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

 

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

 

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

 

1.2
Going concern

The financial statements have been prepared on a going concern basis.true

1.3
Revenue Recognition
Turnover comprises the fair value of the consideration received or receivable for the work carried out
in relation to the agreed contracts with the clients. Turnover is shown net of sales/value added tax,
returns, rebates and discounts. Adana Construction Limited issue Self Billing invoices after the work
agreed is complete. The work completed to date is accrued and recognised at the point of the work
being carried out. Retentions are recognised in turnover when the work has been carried out in
accordance with each contract.
The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

1.4
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly
liquid investments that are readily convertible to a known amount of cash and are subject to an
insignificant risk of change in value.
ADANA CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
1.5
Financial instruments
Basic financial instruments

Accrued income is the amount due from customers for services performed in the ordinary course of businesses.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

 

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.6
Taxation
The tax expense for the period comprises current tax. Tax is recognised in profit or loss, except that a
change attributable to an item of income or expense recognised as other comprehensive income is
also recognised directly in other comprehensive income.
Current tax
The current income tax charge is calculated on the basis of tax rates and laws that have been
enacted or substantively enacted by the reporting date in the countries where the company operates
and generates taxable income.
1.7
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

ADANA CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.8
Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

 

2
Judgements and key sources of estimation uncertainty

In the application of the company’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. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

The critical judgements made by management that have a significant effect on the amounts

recognised in the financial statements are described below.

 

Critical judgement - operating leases

The company has entered into number of operating leases which it obtains the use of. The

classification of such leases as operating or finance lease requires the company to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

 

3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Groundworks, structural concreting and building modification
services on construction
58,801,422
13,117,365
Increase/(Decrease) in accrued income
5,571,133
1,458,958
64,372,555
14,576,323
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administration and support
15
14
Construction
55
50
Total
70
64
ADANA CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
4
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,341,405
2,950,975
Social security costs
529,186
362,847
Pension costs
64,211
58,898
4,934,802
3,372,720
5
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
9,859
9,276
Operating lease charges
9,087,946
2,371,892
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
940,432
449,823
Company pension contributions to defined contribution schemes
2,642
2,642
943,074
452,465
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
816,063
334,077
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
1,783,097
359,136
Adjustments in respect of prior periods
1,602
(19,006)
Total current tax
1,784,699
340,130
ADANA CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Taxation
(Continued)
- 18 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
6,818,412
1,889,942
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
1,704,603
359,089
Tax effect of expenses that are not deductible in determining taxable profit
78,495
-
0
Under/(over) provided in prior years
1,601
(18,959)
Taxation charge for the year
1,784,699
340,130
8
Dividends
2024
2023
£
£
Final paid
2,800,000
850,000
9
Debtors
2024
2023
Amounts falling due within one year:
£
£
Retentions
1,168,989
510,063
Other debtors
1,717,460
166,768
Prepayments and accrued income
8,276,887
3,324,993
11,163,336
4,001,824
10
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
10,740,636
895,705
Corporation tax
1,283,097
359,136
Other taxation and social security
662,728
114,737
Amounts due to related parties
1,342,913
383,391
Accruals and deferred income
131,959
136,861
14,161,333
1,889,830
ADANA CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
11
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
64,211
58,898

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £64,211 (2023 - £58,898). Contributions totalling £11,370 (2023 - £8,412) were payable to the scheme at the end of the year and are included in creditors.

 

12
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
1,000
1,000
1,000
1,000
13
Operating lease commitments
Lessee

The amount of non-cancellable operating lease payments recognised as an expense during the year was £63,000 (2023 - £59,500).

 

The outstanding lease commitments as at 31 March 2023 related to a lease agreement that was subsequently amended after the period to only cover a period of one year.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
63,000
59,500
Between two and five years
-
0
297,500
In over five years
-
0
178,500
63,000
535,500
ADANA CONSTRUCTION LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
14
Related party transactions

Summary of transactions with other related parties

There is a related party balance at 31st March 2024 for £150,000 owing to a company with a related party member (2023: £150,000).

 

Also during the year, the company obtained hire from a limited company who is under the same common control as of some directors and shareholders in Adana Construction Ltd. The amount of hire in the year was £4,719,998 (2023: £1,645,745) The balance owed to the limited company at the end of the year was £1,189,414 (2023: £233,391)

 

Some of the directors jointly own the building which Adana Construction Ltd carries out its trade and during the year rent was paid for £63,000 (2023: £59,500).

 

15
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
5,033,713
1,549,812
Adjustments for:
Taxation charged
1,784,699
340,130
Movements in working capital:
Increase in debtors
(7,161,512)
(812,997)
Increase/(decrease) in creditors
11,347,542
(1,568,312)
Cash generated from/(absorbed by) operations
11,004,442
(491,367)
16
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,365,592
7,343,704
8,709,296
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