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REGISTERED NUMBER: SC717684 (Scotland)















Group Strategic Report, Report of the Directors and

Consolidated Financial Statements For The Year Ended 31 December 2023

for

TJH1868 Limited

TJH1868 Limited (Registered number: SC717684)






Contents of the Consolidated Financial Statements
For The Year Ended 31 December 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Statement of Comprehensive Income 9

Consolidated Statement of Financial Position 10

Company Statement of Financial Position 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Statement of Cash Flows 14

Notes to the Consolidated Statement of Cash Flows 15

Notes to the Consolidated Financial Statements 16


TJH1868 Limited

Company Information
For The Year Ended 31 December 2023







DIRECTORS: D S Haddow
R Young
T Green





SECRETARY: C Buttar





REGISTERED OFFICE: c/o Thomas Johnstone Limited
Cartside Avenue
Inchinnan Business Park
Inchinnan
Renfrewshire
PA4 9RU





REGISTERED NUMBER: SC717684 (Scotland)





INDEPENDENT AUDITORS: Robb Ferguson
Chartered Accountants & Statutory Auditors
Regent Court
70 West Regent Street
Glasgow
G2 2QZ

TJH1868 Limited (Registered number: SC717684)

Group Strategic Report
For The Year Ended 31 December 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

REVIEW OF BUSINESS
Strong sales in 2022 carried on into 2023 and were further strengthened by securing "anchor" projects of varying sizes within our existing market sectors. By continuing to focus on the needs of our customers we have maximised the sales opportunities available to us. Annual sales of £86.4 million reflect a 46% growth from 2022. This has been delivered by careful recruitment of additional staff and labour, always keeping the guiding principles of the group to the forefront. Our customer care and operational performance continues to be our strongest selling point.

As a result of strong sales, we were able to generate a gross margin percentage return which allowed the group to deliver an operating profit in line with budget expectations. This was achieved against a backdrop of high inflation throughout the construction sector, affecting Subcontractor, Labour, Plant and Material costs. By careful negotiations and risk management we managed to secure projects with favourable terms regarding cost increases. We anticipate a strong first quarter in 2024 which we will build upon.

A lack of skilled trades persons and skilled management teams still restricts growth in our industry. We must be proactive in training and retraining new and not so new recruits. Therefore, we continue to invest in apprenticeships for trades persons of all ages and sponsor undergraduates training to be professionals in the construction sector.

We continue to strive for improvements in our environmental performance as part of our wider corporate social responsibility. We will continue to seek to improve our impact on the environment by taking steps to reduce our energy use. Our programme of investment has led us to install 925 m2 of Solar Panels on our factory roof, supplying most of our energy needs throughout the day. We are also investigating the use of batteries for storage which would further reduce our dependence on "grid" electricity.

We continue to put our people first and this is reflected in our excellent staff retention levels. We aim to make their place of work an enjoyable experience and encourage a good work-life balance.

The Directors continue to believe that our healthy order book and increasing customer base, combined with our stated intent of constant improvement in our practises and procedures provides solid grounds for confidence and that we will continue to grow the business and reduce our effective cost base through innovation and efficiencies.

We have seen two years of sustained growth and continue to be optimistic about the future of the construction market sectors we are in. We believe we are in good shape to seek out and take advantage of opportunities as they arise in 2024.

ON BEHALF OF THE BOARD:





R Young - Director


16 September 2024

TJH1868 Limited (Registered number: SC717684)

Report of the Directors
For The Year Ended 31 December 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

DIVIDENDS
Interim dividends per share were paid as follows:
Ordinary £1 shares £0.25756 - 24 January 2023
Preference £1 shares £0.08050 - 6 April 2023


The directors recommend that no final dividends be paid.

The total distribution of dividends for the year ended 31 December 2023 will be £ 181,319 .

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

D S Haddow
R Young
T Green

STREAMLINED ENERGY AND CARBON REPORTING
Energy and Carbon Report
In accordance with the Companies (Directors Report) and the Energy and Carbon Report Regulations 2018, the group having met the thresholds of large unquoted status in the UK, is now required to report their UK energy use and associated GHG emissions relating to electricity, gas and transport fuel.

The requirement also calls for an intensity ratio.

For group reporting purposes the methods adopted in the calculations of the total greenhouse gas emissions incorporate the GHG Protocol Corporate Standard, the 2019 HM Government Environmental Reporting Guidelines and the 2023 UK Government Conversion Factors.

Information surrounding Business travel and power consumption have been sourced internally from invoices and receipts and converted accordingly to CO2e utilising UK Government GHG Conversion Factors.

Our adopted intensity metric has been defined as tonnes of CO2e per £1million of Sales Revenue.

The group in the latter part of 2023 invested in Solar Panels installation to our Manufacturing Facility Roof at our Inchinnan premises. The extent of the benefit and improvement impact should become more evident in 2024's Energy reduction measures. New Energy Efficient Boilers were also installed during 2023.

The group has in previous years implemented a raft of initiatives to reduce our carbon footprint some of which include, the changing of all lights to LED, introducing PIR sensors for controlled lighting in various areas, introducing EV charging points and insulation to our Factory roof.

2023
UK Energy Use kWh 858,919.46
Associated Greenhouse Gas
Emissions

TCO2e

390.21
Intensity Ratio TCO2e per £M Sales Revenue 4.5

As 2023 is the first year of disclosure requirements, there is no comparative figure for 2022.

Energy Reduction Measures Planned for 2024 surround the following:
- Monitoring of solar generation export back to the Grid, for battery storage feasibility study.
- Full year benefits from Solar Panel Investment.
- Additional Awareness, briefings and training for all employees.


TJH1868 Limited (Registered number: SC717684)

Report of the Directors
For The Year Ended 31 December 2023

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

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

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- state whether applicable accounting standards have been followed, subject to any material departures disclosed and
explained in the financial statements;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

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

ON BEHALF OF THE BOARD:





R Young - Director


16 September 2024

Report of the Independent Auditors to the Members of
TJH1868 Limited

Opinion
We have audited the financial statements of TJH1868 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the Group 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
TJH1868 Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Report of the Independent Auditors to the Members of
TJH1868 Limited


Auditors' responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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:
- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- We identified the laws and regulations applicable to the company through discussions with directors and other
management, and from our wider knowledge and experience;
- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006 and FRS 102;
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of
management and inspecting legal correspondence; and
- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to
instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of
actual, suspected and alleged fraud; and
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations

Audit response to risks identified
To address the risk of fraud through management bias and override of controls, we:
- Performed analytical procedures to identify any unusual or unexpected relationships;
- Tested journal entries to identify unusual transactions;
- Assessed whether judgements and assumptions made in determining the accounting estimates set out were indicative of potential bias; and
- Investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
- Agreeing financial statement disclosures to underlying supporting documentation;
- Reading the minutes of meetings of those charged with governance;
- Enquiring of management as to actual and potential litigation and claims; and
- Requesting correspondence with HMRC, Companies House and the company's legal advisors.

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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
TJH1868 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.




Janice Alexander CA (Senior Statutory Auditor)
for and on behalf of Robb Ferguson
Chartered Accountants & Statutory Auditors
Regent Court
70 West Regent Street
Glasgow
G2 2QZ

19 September 2024

TJH1868 Limited (Registered number: SC717684)

Consolidated
Statement of Comprehensive
Income
For The Year Ended 31 December 2023

Period
16.12.21
Year Ended to
31.12.23 31.12.22
as restated
Notes £    £   

TURNOVER 86,455,559 55,336,071

Cost of sales 72,937,708 47,656,271
GROSS PROFIT 13,517,851 7,679,800

Administrative expenses 9,822,296 7,060,580
3,695,555 619,220

Other operating income 112,716 138,467
OPERATING PROFIT 4 3,808,271 757,687

Interest receivable and similar income 159,460 -
3,967,731 757,687

Interest payable and similar expenses 5 97,208 101,394
PROFIT BEFORE TAXATION 3,870,523 656,293

Tax on profit 6 963,254 96,159
PROFIT FOR THE FINANCIAL YEAR 2,907,269 560,134

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,907,269

560,134

Profit attributable to:
Owners of the parent 2,907,269 560,134

Total comprehensive income attributable to:
Owners of the parent 2,907,269 560,134

TJH1868 Limited (Registered number: SC717684)

Consolidated Statement of Financial Position
31 December 2023

2023 2022
as restated
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 329,711 371,398
Tangible assets 11 2,229,128 2,062,818
Investments 12 - -
2,558,839 2,434,216

CURRENT ASSETS
Stocks 13 39,269 33,047
Debtors 14 15,457,338 13,917,541
Cash at bank and in hand 12,323,910 2,996,701
27,820,517 16,947,289
CREDITORS
Amounts falling due within one year 15 25,345,512 15,969,051
NET CURRENT ASSETS 2,475,005 978,238
TOTAL ASSETS LESS CURRENT
LIABILITIES

5,033,844

3,412,454

CREDITORS
Amounts falling due after more than one
year

16

(644,709

)

(1,807,000

)

PROVISIONS FOR LIABILITIES 20 (105,757 ) (48,026 )
NET ASSETS 4,283,378 1,557,428

CAPITAL AND RESERVES
Called up share capital 21 971,429 971,429
Share premium 22 25,865 25,865
Retained earnings 22 3,286,084 560,134
SHAREHOLDERS' FUNDS 4,283,378 1,557,428

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by:





R Young - Director


TJH1868 Limited (Registered number: SC717684)

Company Statement of Financial Position
31 December 2023

2023 2022
as restated
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 10 - -
Tangible assets 11 - -
Investments 12 5,166,953 5,166,953
5,166,953 5,166,953

CREDITORS
Amounts falling due within one year 15 3,524,950 2,362,659
NET CURRENT LIABILITIES (3,524,950 ) (2,362,659 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,642,003

2,804,294

CREDITORS
Amounts falling due after more than one
year

16

644,709

1,807,000
NET ASSETS 997,294 997,294

CAPITAL AND RESERVES
Called up share capital 21 971,429 971,429
Share premium 22 25,865 25,865
SHAREHOLDERS' FUNDS 997,294 997,294

Company's profit for the financial year 181,319 -

The financial statements were approved by the Board of Directors and authorised for issue on 16 September 2024 and were signed on its behalf by:





R Young - Director


TJH1868 Limited (Registered number: SC717684)

Consolidated Statement of Changes in Equity
For The Year Ended 31 December 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   

Changes in equity
Increase in share capital 971,429 - 25,865 997,294
Total comprehensive income - 560,134 - 560,134
Balance at 31 December 2022 971,429 560,134 25,865 1,557,428

Changes in equity
Dividends - (181,319 ) - (181,319 )
Total comprehensive income - 2,907,269 - 2,907,269
Balance at 31 December 2023 971,429 3,286,084 25,865 4,283,378

TJH1868 Limited (Registered number: SC717684)

Company Statement of Changes in Equity
For The Year Ended 31 December 2023

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   

Changes in equity
Increase in share capital 971,429 - 25,865 997,294
Balance at 31 December 2022 971,429 - 25,865 997,294

Changes in equity
Dividends - (181,319 ) - (181,319 )
Total comprehensive income - 181,319 - 181,319
Balance at 31 December 2023 971,429 - 25,865 997,294

TJH1868 Limited (Registered number: SC717684)

Consolidated Statement of Cash Flows
For The Year Ended 31 December 2023

Period
16.12.21
Year Ended to
31.12.23 31.12.22
as restated
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 10,680,127 439,548
Interest paid (97,208 ) (101,394 )
Tax paid 554,921 -
Net cash from operating activities 11,137,840 338,154

Cash flows from investing activities
Purchase of intangible fixed assets - (416,875 )
Purchase of tangible fixed assets (313,689 ) (2,203,840 )
Cash on acquisition - 3,076,137
Interest received 159,460 -
Net cash from investing activities (154,229 ) 455,422

Cash flows from financing activities
New loans in year - 2,500,000
Loan repayments in year (1,475,083 ) (296,875 )
Equity dividends paid (181,319 ) -
Net cash from financing activities (1,656,402 ) 2,203,125

Increase in cash and cash equivalents 9,327,209 2,996,701
Cash and cash equivalents at beginning of
year

2

2,996,701

-

Cash and cash equivalents at end of year 2 12,323,910 2,996,701

TJH1868 Limited (Registered number: SC717684)

Notes to the Consolidated Statement of Cash Flows
For The Year Ended 31 December 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
Period
16.12.21
Year Ended to
31.12.23 31.12.22
as restated
£    £   
Profit before taxation 3,870,523 656,293
Depreciation charges 189,066 186,499
Finance costs 97,208 101,394
Finance income (159,460 ) -
3,997,337 944,186
(Increase)/decrease in stocks (6,222 ) 4,953
Increase in trade and other debtors (1,539,797 ) (3,693,541 )
Increase in trade and other creditors 8,228,809 3,183,950
Cash generated from operations 10,680,127 439,548

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 12,323,910 2,996,701
Period ended 31 December 2022
31.12.22 16.12.21
as restated
£    £   
Cash and cash equivalents 2,996,701 -


3. ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.23 Cash flow At 31.12.23
£    £    £   
Net cash
Cash at bank and in hand 2,996,701 9,327,209 12,323,910
2,996,701 9,327,209 12,323,910
Debt
Debts falling due within 1 year (396,125 ) 312,792 (83,333 )
Debts falling due after 1 year (1,807,000 ) 1,162,291 (644,709 )
(2,203,125 ) 1,475,083 (728,042 )
Total 793,576 10,802,292 11,595,868

TJH1868 Limited (Registered number: SC717684)

Notes to the Consolidated Financial Statements
For The Year Ended 31 December 2023

1. STATUTORY INFORMATION

TJH1868 Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the General Information page.

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


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
The nature of the group's operations and principal activities are set out in the report of the directors.

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. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

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

Basis of consolidation
TJH1868 Limited financial statements consolidate the financial statements of the Company and its subsidiary undertakings drawn up to 31 December each year. The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed.

Significant judgements and estimates
In the application of the group's accounting policies the directors and management are required to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the period end date, and the amounts reported for revenues and expenses during the period.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, and in future periods should it affect future periods.

Management consider that the following have the most significant effect on the amounts recognised in the financial statements:

- Financial outcome of individual construction contracts - all long-term contracts are reviewed on a monthly basis, with particular attention to contract stage of completion, costs to date and costs still to be incurred. Movement in margin is recognised when prudent to do so but immediately in the event there is a foreseeable loss.

TJH1868 Limited (Registered number: SC717684)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date. This is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred.

Where it is probable that contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Goodwill
Goodwill representing the excess of the cost of the acquisition of subsidiary undertakings over the fair value of the assets acquired and other purchased goodwill, is capitalised in the year of acquisition. Goodwill is written off over a period of 10 years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Property and improvements - 2.5% on cost
Fixed plant and equipment - 10% on cost
Computer equipment - 25% on cost

Stocks
Stocks are valued at the lower of cost and net realisable value. Costs include materials whilst net realisable value based on the estimated selling price less further costs estimated to be incurred to completion and disposal. Provision is made for obsolete or slow-moving items where appropriate.

Financial instruments
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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 statement of financial position date.


TJH1868 Limited (Registered number: SC717684)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

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

For defined contribution schemes the amount charged to the income statement in respect of pension costs is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the statement of financial position.

Financial instruments
Basic financial instruments are recognised at amortised cost, except for investments in non-convertible preference and non-puttable ordinary shares which are measured at fair value, with changes recognised in profit or loss. Derivative financial instruments are initially recorded at cost and thereafter at fair value with changes recognised in profit or loss.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Loans and borrowings that are classified as payable or receivable within one year on initial recognition are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

Investments
Investments held as fixed assets are stated at cost less provision for any permanent diminution in value.

Impairment of assets
Assets, other than those measured at fair value, are assessed for indicators of impairment at each statement of financial position date. If there is objective evidence of impairment, an impairment loss is recognised in the income statement.

TJH1868 Limited (Registered number: SC717684)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

3. EMPLOYEES AND DIRECTORS
Period
16.12.21
Year Ended to
31.12.23 31.12.22
as restated
£    £   
Wages and salaries 10,120,266 7,945,860
Social security costs 787,979 1,012,363
Other pension costs 637,159 426,296
11,545,404 9,384,519

The average number of employees during the year was as follows:
Period
16.12.21
Year Ended to
31.12.23 31.12.22
as restated

Office and administration 89 84
Production 120 115
209 199

The average number of employees by undertakings that were proportionately consolidated during the year was 209 (2022 - 199 ) .

Period
16.12.21
Year Ended to
31.12.23 31.12.22
as restated
£    £   
Directors' remuneration 515,557 541,053
Directors' pension contributions to money purchase schemes 120,000 110,001

Information regarding the highest paid director is as follows:
Period
16.12.21
Year Ended to
31.12.23 31.12.22
as restated
£    £   
Emoluments etc 176,185 183,432
Pension contributions to money purchase schemes 40,000 36,667

TJH1868 Limited (Registered number: SC717684)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

4. OPERATING PROFIT

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

Period
16.12.21
Year Ended to
31.12.23 31.12.22
as restated
£    £   
Hire of plant and machinery 1,366,961 1,002,129
Operating lease income (112,716 ) (115,794 )
Depreciation - owned assets 147,379 141,022
Goodwill amortisation 41,687 45,477
Auditors' remuneration 20,350 20,865
Operating lease costs - property 152,479 139,333
Operating lease costs - other 422,241 363,653

5. INTEREST PAYABLE AND SIMILAR EXPENSES
Period
16.12.21
Year Ended to
31.12.23 31.12.22
as restated
£    £   
Bank overdraft & loan interest 97,208 101,394

6. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
Period
16.12.21
Year Ended to
31.12.23 31.12.22
as restated
£    £   
Current tax:
UK corporation tax 905,523 114,974

Deferred tax 57,731 (18,815 )
Tax on profit 963,254 96,159

UK corporation tax has been charged at 23.50 % (2022 - 19 %).

TJH1868 Limited (Registered number: SC717684)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

6. TAXATION - continued

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:

Period
16.12.21
Year Ended to
31.12.23 31.12.22
as restated
£    £   
Profit before tax 3,870,523 656,293
Profit multiplied by the standard rate of corporation tax in the UK of
23.500 % (2022 - 19 %)

909,573

124,696

Effects of:
Timing difference (41,828 ) 19,188
Deferred tax movement 57,731 (18,815 )
Income & expenses not deductible for tax purposes 37,778 (28,910 )

Total tax charge 963,254 96,159

7. INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


8. DIVIDENDS
Period
16.12.21
Year Ended to
31.12.23 31.12.22
as restated
£    £   
Ordinary shares of £1 each
Interim 150,000 -
Preference shares of £1 each
Interim 31,319 -
181,319 -

9. PRIOR YEAR ADJUSTMENT

During the year the company made a prior year adjustment to restate the bank loans excluded from the 2022 Statement of Financial Position. These loans are held in the name of the company and not that of its subsidiary (Thomas Johnstone Limited) and as such recognised on the Statement of Financial Position.The value of the prior year adjustment was £2,203,125 with no impact on reserves.

TJH1868 Limited (Registered number: SC717684)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

10. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 January 2023
and 31 December 2023 416,875
AMORTISATION
At 1 January 2023 45,477
Amortisation for year 41,687
At 31 December 2023 87,164
NET BOOK VALUE
At 31 December 2023 329,711
At 31 December 2022 371,398

11. TANGIBLE FIXED ASSETS

Group
Property Fixed
and plant and Computer
improvements equipment equipment Totals
£    £    £    £   
COST
At 1 January 2023 1,826,000 278,235 99,605 2,203,840
Additions - 268,460 45,229 313,689
At 31 December 2023 1,826,000 546,695 144,834 2,517,529
DEPRECIATION
At 1 January 2023 41,750 50,475 48,797 141,022
Charge for year 45,750 61,441 40,188 147,379
At 31 December 2023 87,500 111,916 88,985 288,401
NET BOOK VALUE
At 31 December 2023 1,738,500 434,779 55,849 2,229,128
At 31 December 2022 1,784,250 227,760 50,808 2,062,818

TJH1868 Limited (Registered number: SC717684)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

12. FIXED ASSET INVESTMENTS

Company
Unlisted
investments
£   
COST
At 1 January 2023
and 31 December 2023 5,166,953
NET BOOK VALUE
At 31 December 2023 5,166,953
At 31 December 2022 5,166,953


13. STOCKS

Group
2023 2022
as restated
£    £   
Raw materials & consumables 39,269 33,047

14. DEBTORS

Group
2023 2022
as restated
£    £   
Amounts falling due within one year:
Trade debtors 7,524,587 6,499,869
Amounts recoverable on contracts 4,631,460 5,096,771
Other debtors & prepayments 299,001 82,591
12,455,048 11,679,231

Amounts falling due after more than one year:
Trade debtors 1,949,864 2,238,310
Amounts recoverable on contract 1,052,426 -
3,002,290 2,238,310

Aggregate amounts 15,457,338 13,917,541

TJH1868 Limited (Registered number: SC717684)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

15. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
as restated as restated
£    £    £    £   
Bank loans and overdrafts (see note 17) 83,333 396,125 83,333 396,125
Trade creditors 7,975,383 4,798,493 - -
Amounts owed to group undertakings - - 3,441,617 1,966,534
Tax 2,069,019 608,575 - -
Social security and other taxes 427,968 443,522 - -
VAT 3,162,842 994,168 - -
Other creditors 11,626,967 8,728,168 - -
25,345,512 15,969,051 3,524,950 2,362,659

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group Company
2023 2022 2023 2022
as restated as restated
£    £    £    £   
Bank loans (see note 17) 644,709 1,807,000 644,709 1,807,000

17. LOANS

An analysis of the maturity of loans is given below:

Group Company
2023 2022 2023 2022
as restated as restated
£    £    £    £   
Amounts falling due within one year or on demand:
Bank loans 83,333 396,125 83,333 396,125
Amounts falling due between one and two years:
Bank loans 83,333 395,833 83,333 395,833
Amounts falling due between two and five years:
Bank loans 249,999 1,270,832 249,999 1,270,832
Amounts falling due in more than five years:
Repayable by instalments
Bank loans 311,377 140,335 311,377 140,335

18. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

TJH1868 Limited (Registered number: SC717684)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

Group
Non-cancellable operating leases
2023 2022
as restated
£    £   
Within one year 362,279 365,230
Between one and five years 732,278 781,664
In more than five years 12,667 164,667
1,107,224 1,311,561

19. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
as restated
£    £   
Bank loans 728,042 1,187,500

A floating charge over the whole of the assets of the group and a first ranking standard security over the property at Cartside Avenue, Inchinnan is held by the group's bank.

20. PROVISIONS FOR LIABILITIES

Group
2023 2022
as restated
£    £   
Deferred tax 105,757 48,026

Group
Deferred
tax
£   
Balance at 1 January 2023 48,026
Balance on acquisition
Movement in provision 57,731
Balance at 31 December 2023 105,757

21. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: as restated
£    £   
582,387 Ordinary £1 582,387 582,387
389,042 Preference £1 389,042 389,042
971,429 971,429

TJH1868 Limited (Registered number: SC717684)

Notes to the Consolidated Financial Statements - continued
For The Year Ended 31 December 2023

22. RESERVES

Group
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2023 560,134 25,865 585,999
Profit for the year 2,907,269 2,907,269
Dividends (181,319 ) (181,319 )
At 31 December 2023 3,286,084 25,865 3,311,949

Company
Retained Share
earnings premium Totals
£    £    £   

At 1 January 2023 - 25,865 25,865
Profit for the year 181,319 181,319
Dividends (181,319 ) (181,319 )
At 31 December 2023 - 25,865 25,865