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Registered number: 04826578









Q.F.S. SCAFFOLDING LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
Q.F.S. SCAFFOLDING LIMITED
 
 
COMPANY INFORMATION


Director
K J Clifford 




Company secretary
K Baker



Registered number
04826578



Registered office
Westminster House
Denton Wharf

Mark Lane

Gravesend

Kent

DA12 2PL




Independent auditors
White Hart Associates (London) Limited
Chartered Accountants and Statutory Auditors

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA





 
Q.F.S. SCAFFOLDING LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Director's Report
3 - 4
Independent Auditors' Report
5 - 9
Income Statement
10
Statement of Comprehensive Income
11
Statement of Financial Position
12
Statement of Changes in Equity
13
Statement of Cash Flows
14 - 15
Notes to the Financial Statements
16 - 30


 
Q.F.S. SCAFFOLDING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The directors present their strategic report for the year ended 31 December 2023.

Business review
 
The results of the Company show a loss before tax for the year of £1,840,122 (2022: £621,217). Statutory turnover was £4,190,351 (2022: £6,858,620) with a gross profit achieved of £1,421,344 (2022: £2,859,228). Cash generated by operating activities was £785,828 (2022: £1,144,746).

Key Performance Indicators
The directors are of the opinion that the use of non-financial KPI’s is not necessary to obtain an understanding of the companies performance.  Management monitor the following financial KPI’S at a company level:


.



2023
2022
£
£
Turnover

4,190,351

6,858,620
 
Gross profit margin

33.92%

41.69%
 

Development and performance
 
Trading conditions remained competitive throughout the year. Levels of turnover have decreased, and uncertainty around inflation has impacted costs. The directors do not see this as an issue for long term trading, nor for the going concern of the business. At the date of signing these accounts, there has been an improvement in confidence within the construction industry which is reflected in our order book going forward.

Principal risks and uncertainties
 
The most significant risk and uncertainty facing the business continues to be the general economic climate and the interest rate increase has increased cost pressure and delayed the commencement of projects.
Commercial relationships
The managerial team regularly meets with the Company's clients on commercial and operational levels, building relationships and developing leads and future business opportunities. These regular meetings also assist with monitoring limits and reducing the risk of bad debts.
Credit risk
Regular credit checks are carried out on existing customers, and no new accounts are accepted until and unless a full credit check is undertaken.
 
Page 1

 
Q.F.S. SCAFFOLDING LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


Financial risk management
Risks which may arise ordinarily through the course of the day to day activities are monitored and addressed through Company policies, introduced by the board and implemented by the management team.
Liquidity risk
The parent company continue to support the business, ensuring sufficient funds for operational expenditure and future expansion remain available.


This report was approved by the board on 12 June 2024 and signed on its behalf.



K J Clifford
Director

Page 2

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The director presents his report and the financial statements for the year ended 31 December 2023.

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006He is 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.

The directors are also responsible for the maintenance and integrity of the corporate and financial information included on the Company's website.

Principal activity

The Company's principal activity during the year continued to be that of providing scaffolding services to developers and large building companies.

Results and dividends

The loss for the year, after taxation, amounted to £1,866,218 (2022 - loss £576,970).

Director

The director who served during the year was:

K J Clifford 

Future developments

The Company continues to target new customers and work with ongoing success, whilst maintaining its current strong relationships with its existing customer base.

Page 3

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as  is aware, there is no relevant audit information of which the Company's auditors are unaware, and

 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 auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year-end.

Auditors

The auditorsWhite Hart Associates (London) Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 12 June 2024 and signed on its behalf.
 





K J Clifford
Director

Page 4

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.F.S. SCAFFOLDING LIMITED
 

Opinion


We have audited the financial statements of Q.F.S. Scaffolding Limited (the 'Company') for the year ended 31 December 2023, which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity 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 December 2023 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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.


Page 5

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.F.S. SCAFFOLDING LIMITED (CONTINUED)


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's 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 director 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 Auditors' Report thereon. The director is 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.


Page 6

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.F.S. SCAFFOLDING LIMITED (CONTINUED)


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 Director's 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 director's 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 Director's Responsibilities Statement set out on page 3, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.F.S. SCAFFOLDING LIMITED (CONTINUED)


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 an Auditors' 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:

- We exercise professional judgment and maintain professional scepticism throughout the audit;
- We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the deliberate override of internal control; 
- We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control;
- We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made;
- We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
- We request and review the minutes of management meetings, and assess any matters identified not already provided for or disclosed that may materially impact the financial statements;
- We conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the entity to cease to continue as a going concern.


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 Auditors' Report.


Page 8

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.F.S. SCAFFOLDING LIMITED (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 Auditors' 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.





M S Caldicott ACA FCCA CTA (Senior Statutory Auditor)
  
for and on behalf of
White Hart Associates (London) Limited
 
Chartered Accountants and Statutory Auditors
  
2nd Floor, Nucleus House
2 Lower Mortlake Road
Richmond
TW9 2JA

12 June 2024
Page 9

 
Q.F.S. SCAFFOLDING LIMITED
 
 
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
4,190,351
6,858,620

Cost of sales
  
(2,769,007)
(3,999,392)

Gross profit
  
1,421,344
2,859,228

Administrative expenses
  
(3,029,762)
(3,300,135)

Operating loss
 5 
(1,608,418)
(440,907)

Interest receivable and similar income
 9 
-
293

Interest payable and similar expenses
 10 
(231,704)
(180,603)

Loss before tax
  
(1,840,122)
(621,217)

Tax on loss
 11 
(26,096)
44,247

Loss for the financial year
  
(1,866,218)
(576,970)

The notes on pages 16 to 30 form part of these financial statements.

Page 10

 
Q.F.S. SCAFFOLDING LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£


Loss for the financial year

  

(1,866,218)
(576,970)

Other comprehensive income
  


Capital contribution movement on intercompany loan
  
134,549
(20,130)

Other comprehensive income for the year
  
134,549
(20,130)

Total comprehensive income for the year
  
(1,731,669)
(597,100)

The notes on pages 16 to 30 form part of these financial statements.

Page 11

 
Q.F.S. SCAFFOLDING LIMITED
REGISTERED NUMBER: 04826578

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
3,050,298
3,545,211

  
3,050,298
3,545,211

Current assets
  

Debtors: amounts falling due within one year
 13 
4,067,395
4,421,975

Cash at bank and in hand
 14 
122,177
-

  
4,189,572
4,421,975

Creditors: amounts falling due within one year
 15 
(1,829,485)
(1,349,105)

Net current assets
  
 
 
2,360,087
 
 
3,072,870

Total assets less current liabilities
  
5,410,385
6,618,081

Creditors: amounts falling due after more than one year
 16 
(2,426,117)
(1,928,240)

Provisions for liabilities
  

Deferred tax
 18 
(330,714)
(304,618)

  
 
 
(330,714)
 
 
(304,618)

Net assets
  
2,653,554
4,385,223


Capital and reserves
  

Called up share capital 
 19 
1,000,000
1,000,000

Other reserves
 20 
291,910
157,361

Profit and loss account
 20 
1,361,644
3,227,862

  
2,653,554
4,385,223


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 12 June 2024.




K J Clifford
Director

The notes on pages 16 to 30 form part of these financial statements.

Page 12

 
Q.F.S. SCAFFOLDING LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Capital contribution reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2022
1,000,000
177,491
3,804,832
4,982,323


Comprehensive income for the year

Loss for the year
-
-
(576,970)
(576,970)

Capital contribution movement on intercompany loan
-
(20,130)
-
(20,130)



At 1 January 2023
1,000,000
157,361
3,227,862
4,385,223


Comprehensive income for the year

Loss for the year
-
-
(1,866,218)
(1,866,218)

Capital contribution movement on intercompany loan
-
134,549
-
134,549


At 31 December 2023
1,000,000
291,910
1,361,644
2,653,554


The notes on pages 16 to 30 form part of these financial statements.

Page 13

 
Q.F.S. SCAFFOLDING LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(1,866,218)
(576,970)

Adjustments for:

Depreciation of tangible assets
519,680
528,064

Loss on disposal of tangible assets
(3,664)
(3,732)

Interest paid
231,704
180,603

Interest received
-
(293)

Taxation charge
26,096
(44,247)

Decrease in debtors
355,268
1,498,936

Increase in amounts owed by groups
(688)
(23,923)

Increase/(decrease) in creditors
120,917
(255,657)

Increase/(decrease) in amounts owed to groups
1,268,184
(230,061)

Capital contribution movement on intercompany loan
134,549
20,130

Corporation tax received
-
51,896

Net cash generated from operating activities

785,828
1,144,746


Cash flows from investing activities

Purchase of tangible fixed assets
(24,806)
(139,341)

Sale of tangible fixed assets
3,702
5,993

Interest received
-
293

HP interest paid
(2,813)
(703)

Net cash from investing activities

(23,917)
(133,758)
Page 14

 
Q.F.S. SCAFFOLDING LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

Repayment of loans
(360,000)
(560,000)

Repayment of finance leases
(33,750)
(8,438)

Interest paid
(228,891)
(179,900)

Net cash used in financing activities
(622,641)
(748,338)

Net increase in cash and cash equivalents
139,270
262,650

Cash and cash equivalents at beginning of year
(17,093)
(279,743)

Cash and cash equivalents at the end of year
122,177
(17,093)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
122,177
-

Bank overdrafts
-
(17,093)

122,177
(17,093)


The notes on pages 16 to 30 form part of these financial statements.

Page 15

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Q.F.S. Scaffolding Limited is a private company limited by shares and incorporated in England under registered number 04826578. Its registered office and principal place of business is at Westminster House, Denton Wharf, Mark Lane, Gravesend, Kent, DA12 2PL.

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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

Company management and the directors, based on the current trading and the forward budgets/forecasts prepared, have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, being at least the following
12 months from the signing of these financial statements.
For this reason, and with the Company continuing to receive the full support of the Group, the directors continue to adopt the going concern basis in the financial statements. 

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Income Statement within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 16

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.4

Revenue

Turnover represents the fair value of consideration received or receivable, net of value added tax, rebates and discounts, of goods provided to customers and work carried out in respect of services provided to customers.
Turnover arises from increases in valuations on contracts and is normally determined by external valuations. It is the gross value of work carried out for the period to the balance sheet date (including retentions) but excludes claims until they are actually certified.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 17

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year 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 reporting 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 reporting 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 reporting date.

 
2.10

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.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Yard improvements
-
over 20 years
Plant and machinery
-
over 1, 2, 3, 4, 5, 10 or 15 years
Motor vehicles
-
over 2 years
Office equipment
-
over 3 years

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.

Page 18

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.14

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.

Page 19

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 20

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgments, 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 according estimates are recognised in the period in which the estimates 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.


4.


Turnover

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


2023
2022
£
£

Services rendered
4,190,351
6,858,620

4,190,351
6,858,620


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
4,190,351
6,858,620

4,190,351
6,858,620



5.


Operating loss

The operating loss is stated after charging:

2023
2022
£
£

Exchange differences
-
291,192

Page 21

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
19,950
19,950


7.


Employees

Staff costs, including director's remuneration, were as follows:


2023
2022
£
£

Wages and salaries
2,998,977
4,033,812

Social security costs
291,202
329,213

Cost of defined contribution scheme
120,903
159,183

3,411,082
4,522,208


The average monthly number of employees, including the director, during the year was as follows:


        2023
        2022
            No.
            No.







Administration
17
19



Distribution and installation
36
45

53
64


8.


Directors' emoluments

2023
2022
£
£

Director's emoluments
-
102,500

Company contributions to defined contribution pension schemes
-
33,462

-
135,962


During the year retirement benefits were accruing to no directors (2022 - 1) in respect of defined contribution pension schemes.

Page 22

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Interest receivable

2023
2022
£
£


Other interest receivable
-
293

-
293


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
35,824
49,137

Other loan interest payable
193,067
130,763

Finance leases and hire purchase contracts
2,813
703

231,704
180,603


11.


Taxation


2023
2022
£
£



Deferred tax


Changes to tax rates
26,096
(44,247)

Total deferred tax
26,096
(44,247)


Taxation on profit/(loss) on ordinary activities
26,096
(44,247)
Page 23

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
11.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(1,840,122)
(621,217)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
(460,031)
(118,031)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
10,284
9,008

Capital allowances for year in excess of depreciation
73,586
18,586

Short-term timing difference leading to deferred tax
26,096
(44,247)

Unrelieved tax losses carried forward
376,161
90,437

Total tax charge for the year
26,096
(44,247)


Factors that may affect future tax charges

Changes to the UK corporation tax rates were substantively enacted as part of Finance Bill 2021 (on 11 March 2021). These include increases to the main rate of tax from 19% to 25% from 1 April 2023 for profits exceeding £50,000. Deferred taxes at the Statement of Financial Position date have been measured using the rates that will be applicable in the periods to which they relate.

Page 24

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets





Yard improvements
Plant and machinery
Total

£
£
£



Cost or valuation


At 1 January 2023
475,439
8,278,414
8,753,853


Additions
-
24,806
24,806


Disposals
-
(53,733)
(53,733)



At 31 December 2023

475,439
8,249,487
8,724,926



Depreciation


At 1 January 2023
232,226
4,976,416
5,208,642


Charge for the year on owned assets
24,283
495,398
519,681


Disposals
-
(53,695)
(53,695)



At 31 December 2023

256,509
5,418,119
5,674,628



Net book value



At 31 December 2023
218,930
2,831,368
3,050,298



At 31 December 2022
243,213
3,301,998
3,545,211




The net book value of land and buildings may be further analysed as follows:


2023
2022
£
£

Freehold
218,930
243,213

218,930
243,213


Page 25

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           12.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
28,125
65,625

28,125
65,625


13.


Debtors

2023
2022
£
£


Trade debtors
3,827,123
4,177,139

Amounts owed by group undertakings
149,090
148,402

Other debtors
48,697
52,331

Prepayments and accrued income
42,485
44,103

4,067,395
4,421,975



14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
122,177
-

Bank overdrafts
-
(17,093)

122,177
(17,093)


Page 26

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
-
17,093

Bank loans
360,000
360,000

Trade creditors
154,094
236,182

Amounts owed to group undertakings
835,264
450,270

Other taxation and social security
72,584
68,619

Obligations under finance lease and hire purchase contracts
25,312
33,750

Other creditors
24,260
22,291

Accruals and deferred income
357,971
160,900

1,829,485
1,349,105



16.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
510,000
870,000

Net obligations under finance leases and hire purchase contracts
-
25,312

Amounts owed to group undertakings
1,916,117
1,032,928

2,426,117
1,928,240


Page 27

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Loans


Analysis of the maturity of loans is given below:


2023
2022
£
£

Amounts falling due within one year

Bank loans
360,000
360,000


360,000
360,000

Amounts falling due 1-2 years

Bank loans
360,000
360,000


360,000
360,000

Amounts falling due 2-5 years

Bank loans
150,000
510,000


150,000
510,000


870,000
1,230,000


Bank loans represent a loan from the Company's bankers Lloyds Bank Plc, amounting to £1,800,000 and drawn down in May 2020, supported by the Coronavirus Business Interruption Loan Scheme (CBILS). The loan is for a 6 year term with no capital repayments for the the first 12 months. There is also no interest payable for the first 12 months and an interest rate of 2.56% per annum charged over the base rate thereafter.

Page 28

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Deferred taxation




2023
2022


£

£






At beginning of year
(304,618)
(348,865)


Charged to profit or loss
(26,096)
44,247



At end of year
(330,714)
(304,618)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(481,812)
(551,158)

Tax losses carried forward
151,098
246,540

(330,714)
(304,618)


19.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000,000 (2022 - 1,000,000) Ordinary shares of £1.00 each
1,000,000
1,000,000



20.


Reserves

Other reserves

The capital contribution reserve is an equity account created to recognise the difference in the intercompany loan received from the immediate holding company, Westminster Gulf W.L.L., on its restatement at amortised cost as required under FRS 102. The actual terms of the loan are that it is repayable in equal annual instalments, at an interest rate of 4% per annum, by 31 December 2026 (previously 31 December 2025). It is considered however that an interest rate of 9.5% per annum more accurately represents a market rate of interest and the balance at each year-end has thus been restated to reflect this.

Profit and loss account

The profit and loss account represents the net distributable reserves of the company at the date of the statement of financial position.

Page 29

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


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 £120,903 (2022: £159,183). Contributions totalling £1,432 (2022: £1,493) were payable to the fund at the reporting date.


22.


Commitments under operating leases

At 31 December 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
159,934
244,822

Later than 1 year and not later than 5 years
265,765
356,504

Later than 5 years
70,708
127,293

496,407
728,619


23.Finance lease commitments

The Company did not have any finance lease committments existing at the reporting date in respect of contracts entered into but whose inception occurs after the reporting date.


24.


Related party transactions

The Company has taken advantage of the exemption from disclosing transaction with the group companies on the basis that the company is a wholly owned member.


25.


Mortgages and charges

A debenture created by the Company on 30 March 2023, for securing all monies due or to become due from the Company to Lloyds Bank Plc on any account whatsoever, was registered at Companies House on 30 March 2023.


26.


Controlling party

The immediate holding company is Westminster Gulf W.L.L., a company registered in the Kingdom of Bahrain and located at P.O. Box 31238, Diraz, Bahrain.
The ultimate holding company is Mohammed Jalal and Sons Co. W.L.L., a company registered in the Kingdom of Bahrain. Copies of the consolidated accounts may be obtained from P.O. Box 113, Manama, Bahrain. In the opinion of the directors, there is no ultimate controlling party of the Westminster group.

 
Page 30