Company registration number 08179361 (England and Wales)
NGJ HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
NGJ HOLDINGS LIMITED
COMPANY INFORMATION
Directors
B J Lee
L R Lee
Company number
08179361
Registered office
Ashley Head Farm
Ashley Lane
Goosnargh
Preston
PR3 2EE
Auditor
Douglass Grange
Ground Floor, Capricorn House
Capricorn Park
Blakewater Road
Blackburn
Lancashire
BB1 5QR
NGJ HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 32
NGJ HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Review of the business

The group reported a profit for the year ended 31 December 2023 of £2,015,692 (year ended 31 December 2022 £2,567,406).

NGJ Holdings Limited holds several investment properties that have been or are in the process of being developed and let out to tenants. The investment properties consist of both commercial and private properties.

The company also owns sites which are being developed for resale; these are held in stock on the company’s balance sheet. There are 2 development sites at Inglewhite Road. One site has received planning permission, the other site is still going through the planning process. If planning permission is granted on the second site permission for the first site will probably need to be amended. All costs are expected to be recovered whichever route is followed. Construction work on the New Drop site has continued throughout 2022. The original property consists of a public house, a residential cottage and a holiday let.  The public house is being converted into four residential dwellings, the residential cottage is being refurbished and the holiday let is being refurbished and converted back to a residential dwelling.

During the year the Company purchased units at Greenbank Park and two properties at Chaigley Court.

NGJ Holdings Limited owns various items of heavy plant and machinery (cranes, etc.) which are hired out to its subsidiary, Steel Work Construction Limited. The company also provides consultancy services to its subsidiary; the managing director tenders for steel erection contracts on behalf of the subsidiary company. The inter-company trading has been eliminated in the consolidated accounts.

The subsidiary of the group, Steel Work Construction Limited is a Lancashire based firm of steel erectors working throughout the UK who provide fully trained labour and associated plant to erect steel framed structures.

Throughout 2023 the company has continued to carry out erection contracts for some of the UK's leading structural steelwork contractors, and is proud to have been part of the team that has constructed some of the largest steel structure warehouses in the UK.

Safety is the company's top priority. The workforce is fully trained and dedicated to carrying out work safely, efficiently and accurately. All erectors are CSCS, CPCS and IPAF pal+ certified. Supervisors undergo the highest level of training and hold the Crane Supervisor and CITB Site Supervisor's Safety Scheme (SSSTS) certificates.

A new subsidiary company Longridge Building Services Limited was established during the year. This company was dormant throughout the period.

Principal risks and uncertainties

Reputation

Both companies have a good reputation and pride themselves on delivering high quality results. There has been no instance throughout 2023 that could be seen to have a negative impact on the reputation of the companies.

Competition

Steel erection contracts continue to be successfully tendered for in the new fiscal year, ensuring a constant cashflow and the ability to comfortably cover the financial commitments of the group.

Development and performance

The directors monitor the performance of the company by reference to turnover growth and profitability, which has been increasing year on year for the past few years.

 

NGJ HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Key performance indicators

 

Group

Revenue growth

2023 has been a successful year with group turnover increasing by £411,350 (2.39%). Turnover for the next fiscal year is expected to remain at the higher level. Results so far for the 2024 year show this to be the case.

Profit margin

Operating profit in 2023 for the group reduced by 17.0% on the previous fiscal year. Management is expecting operating profit to continue at that level.

NGJ Holdings Limited

Revenue growth

2023 has seen turnover increasing by £84,344 (6.56%). Turnover for the next fiscal year is expected to remain at this level. Results so far in the 2024 year show this to be the case.

Profit margin

Operating profit in 2023 increased by 27.38% on the previous fiscal year. Management is expecting operating profit to continue at that level.

Steel Work Construction Limited

Revenue growth

2023 has seen turnover increasing by only £396k. Turnover for the next fiscal year is expected to return to previous levels. Results so far in the 2024 year show this to be the case.

Profit margin

Operating profit in 2023 fell by 35.8% on the previous fiscal year. Management is expecting gross profit to remain at the lower level.

Increased labour costs have lead to a reduction in gross profit which is reflected in the level of fall in net profit.

The company has received contracts for buildings to be used for waste conversion. There is a possibility this will lead to an increase in business in 2025.

On behalf of the board

B J Lee
Director
20 September 2024
NGJ HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of structural steelwork contractors, property rental and property development.

Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £460,000. The directors do not recommend payment of a further dividend.

Directors

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

B J Lee
L R Lee
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 auditor of the company 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 auditor of the company is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
B J Lee
Director
20 September 2024
NGJ HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

NGJ HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF NGJ HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of NGJ Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group and parent 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 group's and 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 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.

Opinions on other matters prescribed by the Companies Act 2006

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

NGJ HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NGJ HOLDINGS LIMITED
- 6 -
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 their 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 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 parent company or to cease operations, or have no realistic alternative but to do so.

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 our 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.

 

Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to building regulations, health and safety, and employment law, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as tax legislation and the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks related to revenue recognition. Audit procedures performed included:

 

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

NGJ HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF NGJ HOLDINGS LIMITED
- 7 -

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.

Anthea Grange (Senior Statutory Auditor)
For and on behalf of Douglass Grange
20 September 2024
Chartered Accountants
Statutory Auditor
Ground Floor, Capricorn House
Capricorn Park
Blakewater Road
Blackburn
Lancashire
BB1 5QR
NGJ HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
17,562,744
17,151,394
Cost of sales
(14,366,151)
(13,208,713)
Gross profit
3,196,593
3,942,681
Administrative expenses
(989,788)
(822,430)
Other operating income
612,340
277,375
Operating profit
4
2,819,145
3,397,626
Interest payable and similar expenses
7
(258,610)
(66,266)
Amounts written off investments
8
59,998
400
Profit before taxation
2,620,533
3,331,760
Tax on profit
9
(604,841)
(764,354)
Profit for the financial year
2,015,692
2,567,406
Profit for the financial year is attributable to:
- Owners of the parent company
1,621,803
1,963,957
- Non-controlling interests
393,889
603,449
2,015,692
2,567,406
NGJ HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
2,015,692
2,567,406
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
-
0
-
0
Total comprehensive income for the year
2,015,692
2,567,406
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,621,803
1,963,957
- Non-controlling interests
393,889
603,449
2,015,692
2,567,406
NGJ HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
3,018,890
3,052,270
Investment property
12
6,580,420
4,344,560
9,599,310
7,396,830
Current assets
Stocks
15
3,109,188
2,519,837
Debtors
16
3,497,433
2,999,687
Cash at bank and in hand
2,243,885
2,634,967
8,850,506
8,154,491
Creditors: amounts falling due within one year
17
(4,285,132)
(2,871,500)
Net current assets
4,565,374
5,282,991
Total assets less current liabilities
14,164,684
12,679,821
Creditors: amounts falling due after more than one year
18
(1,371,541)
(1,200,447)
Provisions for liabilities
Deferred tax liability
21
643,781
545,706
(643,781)
(545,706)
Net assets
12,149,362
10,933,668
Capital and reserves
Called up share capital
23
100
100
Profit and loss reserves
10,771,502
9,609,699
Equity attributable to owners of the parent company
10,771,602
9,609,799
Non-controlling interests
1,377,760
1,323,869
12,149,362
10,933,668

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
20 September 2024
B J Lee
Director
Company registration number 08179361 (England and Wales)
NGJ HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
2,072,320
2,259,820
Investment property
12
6,580,420
4,344,560
Investments
13
166
68
8,652,906
6,604,448
Current assets
Stocks
15
3,109,188
2,519,837
Debtors
16
467,112
72,967
Cash at bank and in hand
13,306
16,679
3,589,606
2,609,483
Creditors: amounts falling due within one year
17
(3,342,833)
(1,466,185)
Net current assets
246,773
1,143,298
Total assets less current liabilities
8,899,679
7,747,746
Creditors: amounts falling due after more than one year
18
(1,178,079)
(1,156,852)
Provisions for liabilities
Deferred tax liability
21
448,685
375,174
(448,685)
(375,174)
Net assets
7,272,915
6,215,720
Capital and reserves
Called up share capital
23
100
100
Profit and loss reserves
7,272,815
6,215,620
Total equity
7,272,915
6,215,720

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,517,195 (2022 - £1,361,615 profit).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 20 September 2024 and are signed on its behalf by:
20 September 2024
B J Lee
Director
Company registration number 08179361 (England and Wales)
NGJ HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 January 2022
100
8,155,742
8,155,842
1,040,420
9,196,262
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,963,957
1,963,957
603,449
2,567,406
Dividends
10
-
(510,000)
(510,000)
(320,000)
(830,000)
Balance at 31 December 2022
100
9,609,699
9,609,799
1,323,869
10,933,668
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,621,803
1,621,803
393,889
2,015,692
Dividends
10
-
(460,000)
(460,000)
(340,000)
(800,000)
Disposal of shares in subsidiary to non-controlling interest
-
-
-
2
2
Balance at 31 December 2023
100
10,771,502
10,771,602
1,377,760
12,149,362
NGJ HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
5,364,005
5,364,105
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
1,361,615
1,361,615
Dividends
10
-
(510,000)
(510,000)
Balance at 31 December 2022
100
6,215,620
6,215,720
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,517,195
1,517,195
Dividends
10
-
(460,000)
(460,000)
Balance at 31 December 2023
100
7,272,815
7,272,915
NGJ HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
2,172,117
3,021,662
Interest paid
(258,610)
(66,266)
Income taxes paid
(629,838)
(813,480)
Net cash inflow from operating activities
1,283,669
2,141,916
Investing activities
Purchase of tangible fixed assets
(411,595)
(550,877)
Proceeds on disposal of tangible fixed assets
386,356
5,417
Purchase of investment property
(2,073,432)
(761,299)
Proceeds on disposal of investment property
159,519
-
Proceeds on disposal of subsidiaries
60,000
400
Receipts arising from loans made
(358,708)
-
Repayment of loans
10,000
10,000
Net cash used in investing activities
(2,227,860)
(1,296,359)
Financing activities
Proceeds from borrowings
95,000
255,000
Proceeds of new bank loans
1,712,014
-
Repayment of bank loans
(36,937)
(41,593)
Payment of finance leases obligations
(381,519)
(430,438)
Dividends paid to equity shareholders
(460,000)
(510,000)
Dividends paid to non-controlling interests
(340,000)
(320,000)
Net cash generated from/(used in) financing activities
588,558
(1,047,031)
Net decrease in cash and cash equivalents
(355,633)
(201,474)
Cash and cash equivalents at beginning of year
2,599,518
2,800,992
Cash and cash equivalents at end of year
2,243,885
2,599,518
Relating to:
Cash at bank and in hand
2,243,885
2,634,967
Bank overdrafts included in creditors payable within one year
-
(35,449)
NGJ HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
855,045
971,129
Interest paid
(243,019)
(58,689)
Income taxes paid
(147,943)
(65,311)
Net cash inflow from operating activities
464,083
847,129
Investing activities
Purchase of tangible fixed assets
(33,255)
(409,118)
Proceeds on disposal of tangible fixed assets
130,878
-
0
Purchase of investment property
(2,073,432)
(761,299)
Proceeds on disposal of investment property
159,519
-
0
Purchase of subsidiaries
(100)
-
0
Proceeds on disposal of subsidiaries
60,000
500
Receipts arising from loans made
(358,708)
-
0
Dividends received
660,000
680,000
Net cash used in investing activities
(1,455,098)
(489,917)
Financing activities
Proceeds from borrowings
95,000
255,000
Proceeds of new bank loans
1,712,014
-
Repayment of bank loans
(36,937)
(41,593)
Payment of finance leases obligations
(286,986)
(295,281)
Dividends paid to equity shareholders
(460,000)
(510,000)
Net cash generated from/(used in) financing activities
1,023,091
(591,874)
Net increase/(decrease) in cash and cash equivalents
32,076
(234,662)
Cash and cash equivalents at beginning of year
(18,770)
215,892
Cash and cash equivalents at end of year
13,306
(18,770)
Relating to:
Cash at bank and in hand
13,306
16,679
Bank overdrafts included in creditors payable within one year
-
(35,449)
NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

NGJ Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Ashley Head Farm, Ashley Lane, Goosnargh, Preston, PR3 2EE.

 

The group consists of NGJ Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company NGJ Holdings Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.3
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.4
Turnover

Turnover comprises lease of heavy plant, erection of steelwork constructions, rental income from investment properties, disposal of development properties and sales of services of the director provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue from plant hire is recognised on a straight line basis over the period of the rental.

 

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

 

Property rental income is recognised in the period to which it relates.

Revenue from the sale of development property is recognised on completion and sale of the properties.

NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
nil
Plant and equipment
25% reducing balance
Fixtures and fittings
15% straight line
Motor vehicles
25% reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.6
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in the profit and loss account. Investment property is not depreciated.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Stocks

Stocks are development properties that are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

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.

Classification of financial liabilities

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

NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

1.15
Retirement benefits

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

NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Investment property valuation

Determining the fair value of investment properties requires an estimation of the current market values within the property market. The fair value calculation requires the entity to estimate the future cash flows expected to arise from the investment properties and a suitable discount rate in order to calculate present value. The fair value of the investment properties at the balance sheet date was £6,580,420 after a fair value adjustment of £269,991 was recognised during 2023.

Stock valuation

Determining the lower of cost and net realisable value of development properties requires an estimation of the current market values within the property market. Development properties are initially recognised at cost. The stock value at the balance sheet date was £3,109,188. The net realisable value of the current development properties is expected to be higher than current costs, therefore no reduction in stock value has been required in 2023.

Depreciation

Depreciation is considered a key estimate for which management review on an annual basis to ensure that the assets are being depreciated over their estimated useful economic lives. The net book value of fixed assets at the reporting date was £3,018,890 after a depreciation charge of £628,904 was recognised during 2023.

3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Property sales
157,000
141,958
Construction
16,804,755
16,306,240
Haulage
600,989
703,196
17,562,744
17,151,394
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange gains
-
(3,756)
Fees payable to the group's auditor for the audit of the group's financial statements
10,750
7,000
Depreciation of owned tangible fixed assets
628,904
664,214
Profit on disposal of tangible fixed assets
(1,601)
(402)
Profit on disposal of investment property
(51,956)
-
Fair value gain on investment properties
(269,991)
(107,232)
Operating lease charges
3,000
13,217
NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 22 -
5
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
6
6
2
2
Construction
58
64
-
-
Total
64
70
2
2

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,609,644
3,250,227
30,910
29,408
Social security costs
397,930
366,510
1,815
1,669
Pension costs
71,383
65,333
-
0
-
0
4,078,957
3,682,070
32,725
31,077
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
30,910
29,408
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
197,782
25,492
Other interest on financial liabilities
1,567
-
199,349
25,492
Other finance costs:
Interest on finance leases and hire purchase contracts
59,261
40,774
Total finance costs
258,610
66,266
NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
8
Amounts written off investments
2023
2022
£
£
Gain on disposal of fixed asset investments
59,998
400
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
506,765
627,836
Deferred tax
Origination and reversal of timing differences
98,076
5,547
Changes in tax rates
-
0
130,971
Total deferred tax
98,076
136,518
Total tax charge
604,841
764,354

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:

2023
2022
£
£
Profit before taxation
2,620,533
3,331,760
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
655,133
633,034
Tax effect of expenses that are not deductible in determining taxable profit
3,498
4,916
Gains not taxable
(15,000)
(76)
Effect of change in corporation tax rate
(31,875)
130,970
Deferred tax adjustments in respect of prior years
-
0
(400)
Enhanced capital allowances
(3,365)
(4,090)
Indexatio allowance on chargeable gains
(3,550)
-
0
Taxation charge
604,841
764,354
10
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
460,000
510,000
NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
11
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
743,900
4,799,189
178,280
930,260
6,651,629
Additions
-
0
532,050
-
0
448,229
980,279
Disposals
-
0
(189,478)
-
0
(329,745)
(519,223)
At 31 December 2023
743,900
5,141,761
178,280
1,048,744
7,112,685
Depreciation and impairment
At 1 January 2023
-
0
3,064,019
134,260
401,080
3,599,359
Depreciation charged in the year
-
0
469,550
26,740
132,614
628,904
Eliminated in respect of disposals
-
0
(44,463)
-
0
(90,005)
(134,468)
At 31 December 2023
-
0
3,489,106
161,000
443,689
4,093,795
Carrying amount
At 31 December 2023
743,900
1,652,655
17,280
605,055
3,018,890
At 31 December 2022
743,900
1,735,170
44,020
529,180
3,052,270
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2023
743,900
4,258,986
178,280
5,181,166
Additions
-
0
335,000
-
0
335,000
Disposals
-
0
(130,878)
-
0
(130,878)
At 31 December 2023
743,900
4,463,108
178,280
5,385,288
Depreciation and impairment
At 1 January 2023
-
0
2,787,086
134,260
2,921,346
Depreciation charged in the year
-
0
381,240
26,740
407,980
Eliminated in respect of disposals
-
0
(16,358)
-
0
(16,358)
At 31 December 2023
-
0
3,151,968
161,000
3,312,968
Carrying amount
At 31 December 2023
743,900
1,311,140
17,280
2,072,320
At 31 December 2022
743,900
1,471,900
44,020
2,259,820
NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
12
Investment property
Group
Company
2023
2023
£
£
Fair value
At 1 January 2023
4,344,560
4,344,560
Additions through external acquisition
2,073,432
2,073,432
Disposals
(107,563)
(107,563)
Net gains or losses through fair value adjustments
269,991
269,991
At 31 December 2023
6,580,420
6,580,420

Investment property comprises various properties of varying use. The fair value of these investment properties has been arrived at on the basis of a valuation carried out at 31 December 2023 by the director Mr B Lee. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

The historical cost of the investment property is £6,033,931 (2022: £4,068,061).

13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
166
68
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023
68
Additions
100
Disposals
(2)
At 31 December 2023
166
Carrying amount
At 31 December 2023
166
At 31 December 2022
68
NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 26 -
14
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Address
Class of
% Held
shares held
Direct
Steel Works Construction Limited
1
Ordinary shares
66.00
Longridge Building Services Limited
2
Ordinary shares
100.00

Registered office addresses (all UK unless otherwise indicated):

1
Unit 5 Chapel Hill Industrial Estate, Longridge, Preston PR3 3BU
2
Ashley Head Farm, Ashley Lane, Goosnargh, Preston, PR3 2EE
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Steel Works Construction Limited
4,876,513
1,158,497
Longridge Building Services Limited
100
-
15
Stock
Group
Company
2023
2022
2023
2022
£
£
£
£
Development property
3,109,188
2,519,837
3,109,188
2,519,837
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
2,861,817
2,767,854
105,404
16,967
Corporation tax recoverable
70,502
13,098
-
0
-
0
Other debtors
531,207
190,044
361,708
56,000
Prepayments and accrued income
33,907
28,691
-
0
-
0
3,497,433
2,999,687
467,112
72,967
NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
1,751,238
73,389
1,751,238
73,389
Obligations under finance leases
20
289,042
311,192
214,494
259,183
Other borrowings
19
650,000
555,000
650,000
555,000
Trade creditors
826,083
964,083
123,998
122,607
Amounts owed to group undertakings
-
0
-
0
390,858
249,765
Corporation tax payable
174,169
239,837
174,169
147,942
Other taxation and social security
209,500
226,490
16,391
26,181
Other creditors
292,426
406,959
-
0
3,328
Accruals and deferred income
92,674
94,550
21,685
28,790
4,285,132
2,871,500
3,342,833
1,466,185
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
521,515
559,736
521,515
559,736
Obligations under finance leases
20
850,026
640,711
656,564
597,116
1,371,541
1,200,447
1,178,079
1,156,852
Amounts included above which fall due after five years are as follows:
Payable by instalments
-
165,554
-
165,554
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
2,272,753
597,676
2,272,753
597,676
Bank overdrafts
-
0
35,449
-
0
35,449
Other loans
650,000
555,000
650,000
555,000
2,922,753
1,188,125
2,922,753
1,188,125
Payable within one year
2,401,238
628,389
2,401,238
628,389
Payable after one year
521,515
559,736
521,515
559,736

The bank loans are secured by fixed charges over the company's investments properties.

The other loans are secured by a charge over the property New Drop Inn

NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
353,803
340,136
264,440
285,414
In two to five years
954,027
640,970
734,989
595,048
In over five years
5,838
86,097
-
0
86,097
1,313,668
1,067,203
999,429
966,559
Less: future finance charges
(174,600)
(115,300)
(128,371)
(110,260)
1,139,068
951,903
871,058
856,299

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The leases are secured on the assets financed

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
507,159
477,720
Fair value gains on investment property
136,622
67,986
643,781
545,706
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
312,063
307,188
Fair value gains on investment property
136,622
67,986
448,685
375,174
NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Deferred taxation
(Continued)
- 29 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
545,706
375,174
Charge to profit or loss
98,075
73,511
Liability at 31 December 2023
643,781
448,685

Of the deferred tax liability set out above relating to accelerated capital allowances, £125,849 re group and £69,181 re company is expected to reverse within 12 months. The deferred tax liability relating to the investment properties is not expected to reverse within 12 months

22
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
71,383
65,333

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
24
Non-distributable profits reserve
Group
Company
2023
2022
2023
2022
£
£
£
£
At the beginning of the year
207,373
137,106
207,373
137,106
Non distributable profits in the year
202,494
70,267
202,494
70,267
At the end of the year
409,867
207,373
409,867
207,373
NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
25
Related party transactions
Transactions with related parties

Steel Work Construction Limited

The company owns 66% of the issued share capital of Steel Work Construction Limited

During the year the company charged Steel Work Construction Limited for hire of equipment and consultancy fees totaling £1,264,300 (2022 - £1,144,600). No amounts were outstanding at the year end (2022 - £nil)

At 31 December 2023 the company owed Steel Work Construction Limited a loan in the amount of £390,858 (2022 - £249,765). The loan is interest free and repayable on demand

26
Directors' transactions

Loans were advanced to directors as detailed below. The loan is unsecured, interest free and repayable on demand.

 

Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
B J Lee -
-
-
358,708
358,708
-
358,708
358,708
27
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
2,015,692
2,567,406
Adjustments for:
Taxation charged
604,841
764,354
Finance costs
258,610
66,266
Gain on disposal of tangible fixed assets
(1,601)
(402)
Gain on disposal of investment property
(51,956)
-
Fair value gain on investment properties
(269,991)
(107,232)
Depreciation and impairment of tangible fixed assets
628,904
664,214
Gain on sale of investments
(59,998)
(400)
Movements in working capital:
Increase in stocks
(589,351)
(1,309,074)
(Increase)/decrease in debtors
(91,634)
33,497
(Decrease)/increase in creditors
(271,399)
343,033
Cash generated from operations
2,172,117
3,021,662
NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
28
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
1,517,195
1,361,615
Adjustments for:
Taxation charged
247,681
271,159
Finance costs
243,019
58,689
Investment income
(660,000)
(680,000)
Gain on disposal of tangible fixed assets
(16,358)
-
Gain on disposal of investment property
(51,956)
-
Fair value gain on investment properties
(269,991)
(107,232)
Depreciation and impairment of tangible fixed assets
407,980
433,365
Gain on sale of investments
(59,998)
(400)
Movements in working capital:
Increase in stocks
(589,351)
(1,309,074)
(Increase)/decrease in debtors
(35,437)
673,514
Increase in creditors
122,261
269,493
Cash generated from operations
855,045
971,129
29
Analysis of changes in net funds/(debt) - group
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
2,634,967
(391,082)
-
2,243,885
Bank overdrafts
(35,449)
35,449
-
-
0
2,599,518
(355,633)
-
2,243,885
Borrowings excluding overdrafts
(1,152,676)
(1,770,077)
-
(2,922,753)
Obligations under finance leases
(951,903)
381,519
(568,684)
(1,139,068)
494,939
(1,744,191)
(568,684)
(1,817,936)
NGJ HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
30
Analysis of changes in net debt - company
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
16,679
(3,373)
-
13,306
Bank overdrafts
(35,449)
35,449
-
-
0
(18,770)
32,076
-
13,306
Borrowings excluding overdrafts
(1,152,676)
(1,770,077)
-
(2,922,753)
Obligations under finance leases
(856,299)
286,986
(301,745)
(871,058)
(2,027,745)
(1,451,015)
(301,745)
(3,780,505)
NGJ HOLDINGS LIMITED
MANAGEMENT INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023
NGJ HOLDINGS LIMITED
PARENT COMPANY PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
2023
2022
£
£
Turnover
1,370,902
1,286,558
Cost of sales
(549,963)
(436,954)
Gross profit
820,939
849,604
Administrative expenses
(195,782)
(115,916)
Other operating income
662,740
277,375
Operating profit
1,287,897
1,011,063
Interest receivable and similar income
660,000
680,000
Interest payable and similar expenses
(243,019)
(58,689)
Amounts written off investments
59,998
400
Profit before taxation
1,764,876
1,632,774
Tax on profit
(247,681)
(271,159)
Profit for the financial year
1,517,195
1,361,615
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