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REGISTERED NUMBER: 10839401 (England and Wales)






















GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2023

FOR

ASH CONNECT LIMITED

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Consolidated Profit and Loss Account 8

Consolidated Balance Sheet 9

Company Balance Sheet 10

Consolidated Statement of Changes in Equity 11

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


ASH CONNECT LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31ST DECEMBER 2023







DIRECTORS: D Cooper
J M Green





REGISTERED OFFICE: 83 Cambridge Street
Pimlico
London
SW1V 4PS





REGISTERED NUMBER: 10839401 (England and Wales)





AUDITORS: George Hay & Company
Chartered Accountants
& Statutory Auditors
83 Cambridge Street
London
SW1V 4PS

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

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

REVIEW OF BUSINESS
The principal activity is that of a holding company and the company itself does not carry out a trade.

During the year the company incorporated a new subsidiary, Ash Capital Projects Ltd with a 75% shareholding. The principal activity of the new subsidiary will be to focus on construction projects within central London with the aim of increasing the Group's presence in this area.

Turnover generated from the subsidiary undertakings decreased by £4.91 million (15%) from the previous year. However, the group's overall gross profit margin improved to 14.99 % compared to 9.03% from the 2022 financial year.

Throughout this financial year, Ash Contracting Limited focussed on smaller and less complex jobs within its key market sectors which carry a lower risk and return greater levels of profit when compared to the larger design and build projects. Ash Special Works Ltd, now in its second year of trading, contributed £2.59m to the group's turnover in this financial year, and is expected to continue to grow in 2024 focussing within its targeted areas of small refurbishment projects across the South East.

PRINCIPAL RISKS AND UNCERTAINTIES
The group's key financial instruments comprise of trade debtors and sales retentions, cash at bank and bank loans, trade creditors and subcontractors retentions.

The group is exposed to risks including credit risk, liquidity risk, cash flow risk, market risk, competition risk and laws and regulations risk, all of which arise from the group's normal business activities. The board reviews and agrees policies for managing each of these risks and they are summarised below:

Credit risk
The group monitors credit risk closely and considers that its current policies of credit checks and credit limits meet its objectives of managing exposure to credit risk.

Liquidity risk
The group closely monitors its bank balance and other credit facilities in comparison to its outstanding commitments to ensure it has sufficient funds to meet its obligations as they fall due.

Cash flow risk
Remains low due to the sectors chosen and agreed beneficial payment terms.

Market risk
Demand for the services of the group is cyclical and dependent on the economic environment. Any significant changes to our clients' working practices or a downturn in the economy, could result in the deferment or cancelling of expenditure. The group earns revenues from multiple sectors, and continues to make a concerted effort to strengthen relationships in these sectors.

Competition risk
The group is exposed to competition risk as the industry in which the group operates is mature and highly competitive. The conversion rate from tendering to secured work is maximised by careful selection of customers and suppliers in order to preserve our brand and work collaboratively.

Laws and regulations risk
The group carries out activities in environments which could cause serious injury to its staff, subcontractors and members of the public. The group has an active policy of training employees and commissioning independent third parties to carry out regular site checks. The group is committed to achieving the highest standards on health and safety.

Other risk
Increased corporation tax burden and VAT on private schools are potential risks faced by the company moving forward.


ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31ST DECEMBER 2023

We are endeavouring to make allowances for these risks within the contracts we undertake.





New Subsidiary
The formation of Ash Capital Projects Ltd within the Group was particularly successful and has consolidated the client base.

FINANCIAL KEY PERFORMANCE INDICATORS
The financial key performance indicators used by the group directors to assess the performance of the business are turnover, gross profit margin, net profit before tax and net assets. A brief analysis of these is provided below:

2023 2022
£ £
Turnover 27,057,037 31,985,034
Gross profit margin 14.99% 9.03%
Net profit before tax 1,632,628 746,799
Net assets 2,824,337 1,789,163

During 2023 the overall performance of the group remains encouraging. New business has kept sales levels high and generated another year of high net profit before tax.

The group continues to report a strong net assets position.

ON BEHALF OF THE BOARD:





D Cooper - Director


23rd September 2024

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31ST DECEMBER 2023

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

DIVIDENDS
No dividends for the year ended 31st December 2023 were paid (2022: £Nil).

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

D Cooper
J M Green

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;
- 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, George Hay & Company, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





D Cooper - Director


23rd September 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
ASH CONNECT LIMITED

Opinion
We have audited the financial statements of Ash Connect Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2023 which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 31st 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
ASH CONNECT 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.

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:

Based on our understanding of the group's operations we identified that the principal risks of non-compliance with laws and regulations relate to construction contracting regulations. We considered the extent to which non-compliance might have a material effect on the financial statements that results in the situation where no further construction services can be provided for. We also considered the relevant laws and regulations that have a direct impact on the preparation of the financial statements such as the income tax and deferred tax.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements
(including the risk of override of controls), and determined there were no principal risks directly impacting the group's
revenue and management bias in accounting estimates.

Audit procedures performed by the engagement team included:
- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
- Evaluating management's controls designed to prevent and detect irregularities;
- Identifying and testing journals, in particular journal entries posted with unusual account combinations or with unusual descriptions; and
- Challenging assumptions and judgements made by management in their critical accounting estimates.

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
ASH CONNECT 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.




Marino Achilleos FCCA (Senior Statutory Auditor)
for and on behalf of George Hay & Company
Chartered Accountants
& Statutory Auditors
83 Cambridge Street
London
SW1V 4PS

23rd September 2024

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

CONSOLIDATED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3 27,057,037 31,985,034

Cost of sales 23,000,607 29,095,399
GROSS PROFIT 4,056,430 2,889,635

Administrative expenses 2,429,732 2,134,245
1,626,698 755,390

Other operating income 1,000 -
OPERATING PROFIT 6 1,627,698 755,390

Interest receivable and similar income 19,041 5,073
1,646,739 760,463

Interest payable and similar expenses 8 14,111 13,664
PROFIT BEFORE TAXATION 1,632,628 746,799

Tax on profit 9 136,288 (81,629 )
PROFIT FOR THE FINANCIAL YEAR 1,496,340 828,428

OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,496,340

828,428

Profit attributable to:
Owners of the parent 1,320,848 743,558
Non-controlling interests 175,492 84,870
1,496,340 828,428

Total comprehensive income attributable to:
Owners of the parent 1,320,848 743,558
Non-controlling interests 175,492 84,870
1,496,340 828,428

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

CONSOLIDATED BALANCE SHEET
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 50,865 68,839
Investments 12 - -
50,865 68,839

CURRENT ASSETS
Debtors 13 5,184,788 4,110,378
Cash at bank and in hand 3,371,245 2,751,404
8,556,033 6,861,782
CREDITORS
Amounts falling due within one year 14 5,555,211 4,885,908
NET CURRENT ASSETS 3,000,822 1,975,874
TOTAL ASSETS LESS CURRENT
LIABILITIES

3,051,687

2,044,713

CREDITORS
Amounts falling due after more than one
year

15

(150,177

)

(255,550

)

PROVISIONS FOR LIABILITIES 19 (77,173 ) -
NET ASSETS 2,824,337 1,789,163

CAPITAL AND RESERVES
Called up share capital 20 100 100
Share premium 21 107,623 107,623
Revaluation reserve 21 692,924 692,924
Merger reserve 21 173,976 173,976
Retained earnings 21 1,690,303 789,645
SHAREHOLDER FUNDS 2,664,926 1,764,268

NON-CONTROLLING INTERESTS 159,411 24,895
TOTAL EQUITY 2,824,337 1,789,163

The financial statements were approved by the Board of Directors and authorised for issue on 23rd September 2024 and were signed on its behalf by:





D Cooper - Director


ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

COMPANY BALANCE SHEET
31ST DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 11 - -
Investments 12 107,774 107,699
107,774 107,699

CURRENT ASSETS
Cash at bank 6,362 7,333

CREDITORS
Amounts falling due within one year 14 10,680 7,766
NET CURRENT LIABILITIES (4,318 ) (433 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

103,456

107,266

CAPITAL AND RESERVES
Called up share capital 20 100 100
Share premium 107,623 107,623
Retained earnings (4,267 ) (457 )
SHAREHOLDER FUNDS 103,456 107,266

Company's (loss)/profit for the financial year (3,620 ) 77,842

The financial statements were approved by the Board of Directors and authorised for issue on 23rd September 2024 and were signed on its behalf by:





D Cooper - Director


ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

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

Called up
share Retained Share Revaluation
capital earnings premium reserve
£    £    £    £   
Balance at 1st January 2022 100 498,087 107,623 692,924

Changes in equity
Total comprehensive income - 743,558 - -
Capital contributions to
Employee Ownership Trust - (452,000 ) - -
100 789,645 107,623 692,924
Acquisition of non-controlling
interest

-

-

-

-
Balance at 31st December 2022 100 789,645 107,623 692,924

Changes in equity
Total comprehensive income - 1,320,848 - -
Capital contributions to
Employee Ownership Trust - (420,190 ) - -
100 1,690,303 107,623 692,924
Acquisition of non-controlling
interest

-

-

-

-
Balance at 31st December 2023 100 1,690,303 107,623 692,924

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

Merger Non-controlling Total
reserve Total interests equity
£    £    £    £   
Balance at 1st January 2022 173,976 1,472,710 - 1,472,710

Changes in equity
Dividends - - (60,000 ) (60,000 )
Total comprehensive income - 743,558 84,870 828,428
Capital contributions to
Employee Ownership Trust - (452,000 ) - (452,000 )
173,976 1,764,268 24,870 1,789,138
Acquisition of non-controlling
interest

-

-

25

25
Balance at 31st December 2022 173,976 1,764,268 24,895 1,789,163

Changes in equity
Dividends - - (41,000 ) (41,000 )
Total comprehensive income - 1,320,848 175,492 1,496,340
Capital contributions to
Employee Ownership Trust - (420,190 ) - (420,190 )
173,976 2,664,926 159,387 2,824,313
Acquisition of non-controlling
interest

-

-

25

25
Balance at 31st December 2023 173,976 2,664,926 159,412 2,824,338

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

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

Called up
share Retained Share Total
capital earnings premium equity
£    £    £    £   
Balance at 1st January 2022 100 (78,299 ) 107,623 29,424

Changes in equity
Total comprehensive income - 77,842 - 77,842
Balance at 31st December 2022 100 (457 ) 107,623 107,266

Changes in equity
Total comprehensive income - (3,620 ) - (3,620 )
Capital contributions to
Employee Ownership Trust - (190 ) - (190 )
Balance at 31st December 2023 100 (4,267 ) 107,623 103,456

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 1,248,206 1,401,449
Interest paid (13,233 ) (13,298 )
Interest element of finance lease payments
paid

(878

)

(366

)
Tax paid (68,940 ) 44,141
Net cash from operating activities 1,165,155 1,431,926

Cash flows from investing activities
Purchase of tangible fixed assets - (11,795 )
Sale of tangible fixed assets 1,971 2,124
Interest received 19,041 5,073
Net cash from investing activities 21,012 (4,598 )

Cash flows from financing activities
Loan repayments in year (100,000 ) (99,999 )
Capital repayments in year (5,374 ) (4,749 )
Amount introduced by directors 213 -
Amount withdrawn by directors - (5,192 )
Share issues in subsidiaries 25 25
Capital contributions to EOT (420,190 ) (452,000 )
Equity dividends paid (41,000 ) (60,000 )
Net cash from financing activities (566,326 ) (621,915 )

Increase in cash and cash equivalents 619,841 805,413
Cash and cash equivalents at beginning of
year

2

2,751,404

1,945,991

Cash and cash equivalents at end of year 2 3,371,245 2,751,404

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
2023 2022
£    £   
Profit before taxation 1,632,628 746,799
Depreciation charges 16,956 18,341
(Profit)/loss on disposal of fixed assets (953 ) 2,061
Increase in provisions 77,173 -
Finance costs 14,111 13,664
Finance income (19,041 ) (5,073 )
1,720,874 775,792
(Increase)/decrease in trade and other debtors (1,074,623 ) 435,247
Increase in trade and other creditors 601,955 190,410
Cash generated from operations 1,248,206 1,401,449

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2023
31.12.23 1.1.23
£    £   
Cash and cash equivalents 3,371,245 2,751,404
Year ended 31st December 2022
31.12.22 1.1.22
£    £   
Cash and cash equivalents 2,751,404 1,945,991


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 2,751,404 619,841 3,371,245
2,751,404 619,841 3,371,245
Debt
Finance leases (19,256 ) 5,374 (13,882 )
Debts falling due within 1 year (100,000 ) - (100,000 )
Debts falling due after 1 year (241,668 ) 99,999 (141,669 )
(360,924 ) 105,373 (255,551 )
Total 2,390,480 725,214 3,115,694

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31ST DECEMBER 2023

1. STATUTORY INFORMATION

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

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


The principal trading address is 4 The Courtyard, Birling Road, Ryarsh, West Malling, ME19 5AA.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
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.

Financial Reporting Standard 102 - reduced disclosure exemptions
In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available under FRS 102:

- Only one reconciliation of the number of shares outstanding at the beginning and end of the year has been presented as the reconciliation for the group and the parent company would be identical;

- No statement of cash flows has been presented for the parent company;

- Disclosures in respect of the parent company's financial instruments have not been presented as equivalent disclosures have been provided in respect of the group as a whole; and

- No disclosures have been given for the aggregate remuneration of the key management personnel of the parent company as their remuneration is included in the totals for the group as a whole.

Basis of consolidation
The consolidated financial statements present the results of the company and its subsidiary ("the Group") as they formed a single entity. Intercompany transactions and balances between the group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the merger accounting method. In the balance sheet, the acquiree's identifiable assets and liabilities are initially recognised at their book values. The results of acquired operations are included in the consolidated profit and loss account from the beginning of the accounting period in which the purchase was completed and the comparatives restated accordingly.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Critical accounting judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated by the directors of the group and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The group makes estimates and assumptions concerning the future. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or the period of the revision and future periods where the revision affects both current and future periods.

The directors of the group consider there to be no significant areas of judgements or key sources of estimation uncertainty.

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

Revenue from construction contracts
Revenue and costs are recognised over time with reference to the stage of completion of the contract activity at the balance sheet date where the outcome of a contract can be estimated reliably. This is normally measured by surveys of work performed to date. Variations in contract work and claims are included to the extent that it is highly probable that they will result in revenue and they are capable of being reliably measured.

Where the outcome of a long term contract cannot be estimated reliably, contract revenue where recoverability is probable is recognised to the extent of contract costs incurred. The costs associated with fulfilling a contract are recognised as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Tangible fixed assets
Tangible fixed assets are initially measured at cost. After initial recognition fixed assets are measured at cost less any accumulated depreciation and impairment.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Plant and machinery - 25% reducing balance
Motor vehicles - 25% reducing balance

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

2. ACCOUNTING POLICIES - continued

Financial instruments
The group enters into basic financial transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and investments in non-puttable ordinary shares.

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

Basic financial instruments that are receivable or payable within one year are initially measured at the undiscounted amount of the consideration expected. If receivable or payable after more than one year, basic financial instruments are initially measured at the present value of the future cash flows and subsequently at amortised cost using the effective interest method. If the arrangement constitutes a financing transaction, the financial instrument is measured initially at the present value of the future cash flows, discounted at a market rate of interest. They are subsequently carried at amortised cost, using the effective interest rate method.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Financial liabilities and equity instruments are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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

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

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.

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

2. ACCOUNTING POLICIES - continued

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.

3. TURNOVER

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

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

2023 2022
£    £   
Construction Services 27,057,037 31,985,034
27,057,037 31,985,034

An analysis of turnover by geographical market is given below:

2023 2022
£    £   
United Kingdom 27,057,037 31,985,034
27,057,037 31,985,034

4. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 2,885,092 3,076,603
Social security costs 340,982 468,836
Other pension costs 308,455 162,775
3,534,529 3,708,214

The average number of employees during the year was as follows:
2023 2022

Production staff 30 41
Administrative staff 15 28
Management 9 9
54 78

5. DIRECTORS' EMOLUMENTS
2023 2022
£    £   
Directors' remuneration 107,663 101,890
Directors' pension contributions to money purchase schemes 88,039 84,708

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

5. DIRECTORS' EMOLUMENTS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

6. OPERATING PROFIT

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

2023 2022
£    £   
Hire of plant and machinery 584,949 687,090
Other operating leases 20,144 23,710
Depreciation - owned assets 16,956 18,341
(Profit)/loss on disposal of fixed assets (953 ) 2,061

7. AUDITORS' REMUNERATION

Fees payable to the group's auditors for the audits of the Parent and Subsidiaries are as follows:

2023 2022
£ £

Parent - Ash Connect Limited 6,975 6,975
Subsidiary - Ash Special Works Ltd 8,500 -
Subsidiary - Ash Contracting Limited 16,000 11,575
Total auditors' remuneration 31,475 18,550

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank interest 144 385
Bank loan interest 13,073 12,913
Other interest payable 16 -
Hire purchase 878 366
14,111 13,664

9. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2023 2022
£    £   
Current tax:
UK corporation tax 136,288 (81,629 )
Tax on profit 136,288 (81,629 )

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

9. TAXATION - continued

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

2023 2022
£    £   
Profit before tax 1,632,628 746,799
Profit multiplied by the standard rate of corporation tax in the UK of
23.520 % (2022 - 19 %)

383,994

141,892

Effects of:
Expenses not deductible for tax purposes 13,322 8,643
Income not taxable for tax purposes (2,352 ) -
Capital allowances in excess of depreciation - (4,391 )
Depreciation in excess of capital allowances 3,035 -
Utilisation of tax losses (202,595 ) (82,653 )
Adjustments to tax charge in respect of previous periods - (95,778 )

Loss carryback - reclaim of tax paid - (49,342 )

forward
Effects of elimination of intercompany transactions (57,846 ) -
Group relief - losses surrendered (1,270 ) -
Total tax charge/(credit) 136,288 (81,629 )

10. INDIVIDUAL PROFIT AND LOSS ACCOUNT

As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements.


ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

11. TANGIBLE FIXED ASSETS

Group
Plant and Motor
machinery vehicles Totals
£    £    £   
COST
At 1st January 2023 60,833 223,677 284,510
Disposals (833 ) (5,095 ) (5,928 )
At 31st December 2023 60,000 218,582 278,582
DEPRECIATION
At 1st January 2023 54,798 160,873 215,671
Charge for year 1,481 15,475 16,956
Eliminated on disposal (722 ) (4,188 ) (4,910 )
At 31st December 2023 55,557 172,160 227,717
NET BOOK VALUE
At 31st December 2023 4,443 46,422 50,865
At 31st December 2022 6,035 62,804 68,839

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

2023 2022
£ £
Motor vehicles 14,122 18,830

These same assets are pledged as security for the finance lease creditor.

12. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1st January 2023 107,699
Additions 75
At 31st December 2023 107,774
NET BOOK VALUE
At 31st December 2023 107,774
At 31st December 2022 107,699

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

12. FIXED ASSET INVESTMENTS - continued

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Ash Contracting Limited
Registered office: 83 Cambridge Street, Pimlico, London, SW1V 4PS
Nature of business: Construction
%
Class of shares: holding
Ordinary 100.00
2023 2022
£    £   
Aggregate capital and reserves 1,906,260 1,510,016
Profit for the year 826,244 503,145

Ash Special Works Ltd
Registered office: 83 Cambridge Street, Pimlico, London, SW1V 4PS Company number: 13863721
Nature of business: Construction
%
Class of shares: holding
Ordinary A 75.00
2023 2022
£    £   
Aggregate capital and reserves 667,040 279,579
Profit for the year 428,461 339,479

Ash Capital Projects Ltd
Registered office: 83 Cambridge Street, Pimlico, London, SW1V 4PS Company number: 15132550
Nature of business: Construction
%
Class of shares: holding
Ordinary A 75.00
2023
£   
Aggregate capital and reserves 273,607
Profit for the year 273,507

The figures reported for Ash Capital Projects Ltd are based on interim results.


ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2023 2022
£    £   
Trade debtors 2,552,646 1,288,069
Accrued income and amounts
recoverable on contracts 1,594,499 1,764,452
Other debtors 44,822 81,803
Directors' current accounts 1,358 1,571
Prepayments 16,743 10,413
Sales retention control 974,720 964,070
5,184,788 4,110,378

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 16) 100,000 100,000 - -
Finance leases (see note 17) 5,374 5,374 - -
Trade creditors 357,034 229,201 - -
Tax 136,288 68,940 - -
Social security and other taxes 164,045 153,502 - -
VAT 2,217,579 1,940,941 - -
Other creditors 22,883 17,902 150 75
Subcontractor invoices 1,724,340 1,796,828 - -
Subcontractors retention
control 760,051 546,260 - -
Accruals and deferred income 67,617 26,960 10,530 7,691
5,555,211 4,885,908 10,680 7,766

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

Group
2023 2022
£    £   
Bank loans (see note 16) 141,669 241,668
Finance leases (see note 17) 8,508 13,882
150,177 255,550

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

16. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 100,000 100,000
Amounts falling due between one and two years:
Bank loans 100,000 100,000
Amounts falling due between two and five years:
Bank loans 41,669 141,668

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Finance leases
2023 2022
£ £
Net obligations repayable:
Within one year 5,374 5,374
Between one and five years 8,508 13,882
13,882 19,256



Non-cancellable operating
leases
2023 2022
£ £
Net obligations repayable:
Within one year 45,000 45,000
Between one and five years 16,383 61,383
61,383 106,383


ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

18. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Bank loans 241,669 341,668
Finance leases 13,882 19,256
255,551 360,924

The bank loans are secured by way of a fixed and floating charge over all assets of the group with negative pledge over the properties.

The finance lease creditor is secured on the assets they relate to.

19. PROVISIONS FOR LIABILITIES

Group
2023 2022
£    £   
Other provisions 77,173 -

Aggregate amounts 77,173 -

20. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
60 Ordinary 'A' £1 60 60
40 Ordinary 'B' £1 40 40
100 100

21. RESERVES

Group
Retained Share Revaluation Merger
earnings premium reserve reserve Totals
£    £    £    £    £   

At 1st January 2023 789,645 107,623 692,924 173,976 1,764,168
Profit for the year 1,320,848 1,320,848
Capital contributions to
Employee Ownership Trust (420,190 ) - - - (420,190 )
At 31st December 2023 1,690,303 107,623 692,924 173,976 2,664,826

ASH CONNECT LIMITED (REGISTERED NUMBER: 10839401)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31ST DECEMBER 2023

21. RESERVES - continued

Company
Retained Share
earnings premium Totals
£    £    £   

At 1st January 2023 (457 ) 107,623 107,166
Deficit for the year (3,620 ) (3,620 )
Capital contributions to
Employee Ownership Trust (190 ) - (190 )
At 31st December 2023 (4,267 ) 107,623 103,356


22. OTHER FINANCIAL COMMITMENTS

Ash Connect Limited was acquired by Ash Connect EOT on behalf of the Ash Connect Employee Ownership Trust for a total sum of £5,574,000.The total consideration consisted of initial payments, made by this company and included in these financial statements, and an element of deferred consideration which will be paid in monthly instalments by Ash Contracting Limited, the subsidiary trading company.The obligation to make future payments of the deferred consideration lies with the trust and so the liability for future payments has not been recognised by the group.

23. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31st December 2023 and 31st December 2022:

2023 2022
£    £   
D Cooper
Balance outstanding at start of year 1,571 -
Amounts advanced - 1,571
Amounts repaid (213 ) -
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 1,358 1,571

24. ULTIMATE CONTROLLING PARTY

The controlling party is Ash Connect EOT Limited.

The Ash Connect Employee Ownership Trust is the ultimate controlling party by virtue of its ownership of Ash
Connect EOT Limited