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Registered number: SC386496













JAMES JAMIESON CONSTRUCTION LIMITED






ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 
JAMES JAMIESON CONSTRUCTION LIMITED
 

COMPANY INFORMATION


Directors
J Jamieson 
G Cameron 




Company secretary
G Cameron



Registered number
SC386496



Registered office
Ardlethen House, By Ellon
Ellon

Aberdeenshire

AB41 8PF




Independent auditor
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
JAMES JAMIESON CONSTRUCTION LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 23

 
JAMES JAMIESON CONSTRUCTION LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The principal activity of the company is that of site construction works and there have not been any significant changes in the company's principal activities during the period under review.  

Business review
 
The directors are satisfied with the performance of the business in a year. A strong trading performance in the first quarter and the delivery of some significant projects in the second half of the year resulted in the company generating a profit before tax of £671K for the year (2022 - £1,197k).
The market remains challenging in the local economy and in the construction sector in general with a slowdown in activity having an impact on new project opportunities in 2024. The company continues to focus on delivering a high quality service to its customers in order to be successful and maintains a strong base of recurring customers which provides stability and positive prospects for the future. The company retains a strong balance sheet at the year end with external debts reducing in the period.

Principal risks and uncertainties
 
The principal risks facing the group relate to the market conditions and associated impact on pricing. The extraction and construction sectors in the North East of Scotland continue to go through challenging times; however the group is structured in a manner to mitigate any significant short term decrease in activity. Current ongoing economic factors in the UK continue to create significant uncertainties across the business and industry as a whole; however the directors have looked to manage these uncertainties.

Financial key performance indicators
 
The key performance indicators used by management include turnover, gross profit and net profit. Details of these measures are included in the Statement of Comprehensive Income. 


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



J Jamieson
Director

Date: 26 September 2024
Page 1

 
JAMES JAMIESON CONSTRUCTION LIMITED
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

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

Results and dividends

The profit for the year, after taxation, amounted to £646,445 (2022 - £1,086,595).

Directors

The directors who served during the year were:

J Jamieson 
G Cameron 

Future developments

The directors continue to look at opportunities to grow and expand the business.

Disclosure of information to auditor

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditor is unaware; and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Auditor

The auditor, Anderson Anderson & Brown Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





J Jamieson
Director

Date: 26 September 2024
Page 2

 
JAMES JAMIESON CONSTRUCTION LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Strategic report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent; and


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 transactions and disclose with reasonable accuracy at any time the financial position of the company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 3

 
JAMES JAMIESON CONSTRUCTION LIMITED
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JAMES JAMIESON CONSTRUCTION LIMITED
 

Opinion


We have audited the financial statements of James Jamieson Construction Limited (the 'company') for the year ended 31 December 2023, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its 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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Other information


The other information comprises the information included in the annual report other than the financial statements and our Auditor's report thereon. The directors are responsible for the other information contained within the annual reportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Page 4

 
JAMES JAMIESON CONSTRUCTION LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JAMES JAMIESON CONSTRUCTION LIMITED (CONTINUED)

Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of 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 Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


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


Page 5

 
JAMES JAMIESON CONSTRUCTION LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JAMES JAMIESON CONSTRUCTION LIMITED (CONTINUED)

Auditor's responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, Construction and Taxation legislation.

We identified the greatest risk of material impact on the financial statements from irregularities including fraud to be:

Management override of controls to manipulate the company’s key performance indicators to meet targets;
Timing and completeness of revenue recognition;
Existence and valuation of stock;
Management judgement applied in calculating provisions against the carrying value of stock and debtors; and
Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading.
 
Our audit procedures to respond to these risks included:

Testing of journal entries and other adjustments for appropriateness;
Evaluating the business rationale of significant transactions outside the normal course of business;
Reviewing judgements made by management in their calculation of accounting estimates for potential management bias;
Enquiries of management about litigation and claims and inspection of relevant correspondence;
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations;
Reviewing a sample of year end debtor balances to ensure post year end receipts support debtor recoverability; and
Reviewing a sample of construction contracts to ensure revenue recognition appropriate.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 Auditor's report.


Page 6

 
JAMES JAMIESON CONSTRUCTION LIMITED
 

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JAMES JAMIESON CONSTRUCTION LIMITED (CONTINUED)

Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an 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.





Christopher Masson (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson & Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
AB15 8PU

26 September 2024
Page 7

 
JAMES JAMIESON CONSTRUCTION LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

Turnover
 4 
13,646,643
16,265,988

Cost of sales
  
(11,910,375)
(14,084,639)

Gross profit
  
1,736,268
2,181,349

Administrative expenses
  
(1,063,755)
(1,016,129)

Other operating income
 5 
-
30,970

Operating profit
 6 
672,513
1,196,190

Interest receivable and similar income
 9 
20
1,036

Interest payable and similar expenses
 10 
(1,969)
-

Profit before tax
  
670,564
1,197,226

Tax on profit
 11 
(24,119)
(110,631)

Profit for the financial year
  
646,445
1,086,595

There was no other comprehensive income for 2023 (2022 - £nil).

The notes on pages 11 to 23 form part of these financial statements.
Page 8

 
JAMES JAMIESON CONSTRUCTION LIMITED
REGISTERED NUMBER:SC386496

BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 12 
1,840,832
1,915,481

  
1,840,832
1,915,481

Current assets
  

Debtors: amounts falling due within one year
 13 
4,457,839
4,063,462

Cash at bank and in hand
 14 
1,439
1,619

  
4,459,278
4,065,081

Creditors: amounts falling due within one year
 15 
(2,286,244)
(2,637,260)

Net current assets
  
 
 
2,173,034
 
 
1,427,821

Total assets less current liabilities
  
4,013,866
3,343,302

Provisions for liabilities
  

Deferred tax
 17 
(372,124)
(348,005)

  
 
 
(372,124)
 
 
(348,005)

Net assets
  
3,641,742
2,995,297


Capital and reserves
  

Called up share capital 
 18 
1
1

Profit and loss account
 19 
3,641,741
2,995,296

  
3,641,742
2,995,297


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




J Jamieson
Director

Date: 26 September 2024

The notes on pages 11 to 23 form part of these financial statements.
Page 9

 
JAMES JAMIESON CONSTRUCTION LIMITED
 

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


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
1
1,908,701
1,908,702



Profit for the year
-
1,086,595
1,086,595



At 1 January 2023
1
2,995,296
2,995,297



Profit for the year
-
646,445
646,445


At 31 December 2023
1
3,641,741
3,641,742


The notes on pages 11 to 23 form part of these financial statements.
Page 10

 
JAMES JAMIESON CONSTRUCTION LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

James Jamieson Construction Limited (the `company`) is a limited liability company incorporated in Scotland. The registered office is Ardlethen House, By Ellon, Ellon, Aberdeenshire, AB41 8PF. 
The principal activity of the company is that of site construction works.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

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

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of James Jamieson Ardlethen Developments Limited as at 31 December 2023 and these financial statements may be obtained from Ardlethen House, By Ellon, Ellon, Aberdeenshire, AB41 8PF.

 
2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to execute its operation for at least a period of 12 months from the date of approval of these financial statements. In making this assessment the directors have considered forecast results, taking account of contracts in place and expected to be secured. Furthermore the directors have considered sensitivities around revenue levels and are satisfied that in these alternative scenarios there will remain adequate working capital in place.
As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements.

Page 11

 
JAMES JAMIESON CONSTRUCTION LIMITED
 

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

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

  
2.5

Long term contracts

Profit on long-term contacts is taken as the work is carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of the work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer or there is a reasonable degree of certainty that they will be accepted. Full provision is made for losses on all contracts in the year in which they are first foreseen.
Amounts recoverable on contracts are included in debtors and represent turnover recognised in excess of payments on account. The excess of payments on accounts over the value of the work done on individual contracts is included in creditors.

 
2.6

Interest income

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

 
2.7

Finance costs

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

  
2.8

Pensions

Defined contribution pension plan
The company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Page 12

 
JAMES JAMIESON CONSTRUCTION LIMITED
 

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

2.Accounting policies (continued)

 
2.9

Borrowing costs

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

 
2.10

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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

Depreciation is provided on the following basis:

Plant and machinery
-
25%
Motor vehicles
-
25%
Fixtures and fittings
-
25%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 13

 
JAMES JAMIESON CONSTRUCTION LIMITED
 

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

2.Accounting policies (continued)

 
2.12

Debtors

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

 
2.13

Cash and cash equivalents

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

 
2.14

Creditors

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

 
2.15

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 14

 
JAMES JAMIESON CONSTRUCTION LIMITED
 

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

2.Accounting policies (continued)

 
2.16

Financial instruments

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

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

Basic financial assets

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

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

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

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

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

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
 
Page 15

 
JAMES JAMIESON CONSTRUCTION LIMITED
 

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

2.Accounting policies (continued)


2.16
Financial instruments (continued)


Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements, requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Balance Sheet date and the amounts reported during the year for revenue and costs. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following judgements and estimates have had the most significant impact on amounts recognised in the financial statements.
Profit recognition on long term contracts
In assessing  profit on long term contracts that span the period end, an estimate is required for the stage of completion on individual contracts (where the outcome can be assessed with reasonable certainty). The estimate is determined by management making use of all information available at the time, in order to make a reasonable judgement on the stage of completion and the forecast profitability of the overall contract.

Page 16

 
JAMES JAMIESON CONSTRUCTION LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

4.


Turnover

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


2023
2022
£
£

Construction services
13,646,643
16,265,988

13,646,643
16,265,988


Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
13,646,643
16,265,988

13,646,643
16,265,988



5.


Other operating income

2023
2022
£
£

Insurance claims receivable
-
30,970

-
30,970


6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Depreciation on tangible fixed assets
376,740
308,323

(Gain)/Loss on disposal of fixed assets
(49,250)
(3,846)


7.


Auditor's remuneration

During the year, the company obtained the following services from the company's auditor:


2023
2022
£
£

Fees payable to the company's auditor for the audit of the company's financial statements
15,400
14,000

Page 17

 
JAMES JAMIESON CONSTRUCTION LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

8.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
2,222,114
2,064,292

Social security costs
233,523
235,291

Cost of defined contribution scheme
40,639
40,427

2,496,276
2,340,010


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


        2023
        2022
            No.
            No.







Directors
2
2



Staff
36
36

38
38


9.


Interest receivable

2023
2022
£
£


Other interest receivable
20
1,036

20
1,036


10.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
1,969
-

1,969
-
Page 18

 
JAMES JAMIESON CONSTRUCTION LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

11.


Taxation


2023
2022
£
£

Deferred tax


Origination and reversal of timing differences
23,342
110,631

Adjustments in respect of prior periods
777
-


Taxation on profit on ordinary activities
24,119
110,631

Factors affecting tax charge for the year/period

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 23.52% (2022 - 19%). The differences are explained below:    

2023
2022
£
£


Profit on ordinary activities before tax
670,564
1,182,997


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022 - 19%)
157,720
224,769

Effects of:


Fixed asset differences
(226)
(38,321)

Expenses not deductible for tax purposes
5,262
18,548

Adjustments to tax charge in respect of prior periods
777
-

Group relief claimed
(140,796)
(120,916)

Remeasurement of deferred tax for changes in tax rates
1,382
26,551

Total tax charge for the year
24,119
110,631

Page 19

 
JAMES JAMIESON CONSTRUCTION LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Tangible fixed assets





Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 January 2023
100,000
3,741,633
540,483
123,381
4,505,497


Additions
-
228,873
148,122
4,846
381,841


Disposals
-
(391,000)
-
-
(391,000)



At 31 December 2023

100,000
3,579,506
688,605
128,227
4,496,338



Depreciation


At 1 January 2023
-
2,147,527
324,637
117,852
2,590,016


Charge for the year on owned assets
-
306,397
67,771
2,572
376,740


Disposals
-
(311,250)
-
-
(311,250)



At 31 December 2023

-
2,142,674
392,408
120,424
2,655,506



Net book value



At 31 December 2023
100,000
1,436,832
296,197
7,803
1,840,832



At 31 December 2022
100,000
1,594,106
215,846
5,529
1,915,481

Page 20

 
JAMES JAMIESON CONSTRUCTION LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

13.


Debtors

2023
2022
£
£


Trade debtors
504,221
973,890

Amounts owed by group undertakings
2,816,821
1,350,200

Other debtors
665,798
944,041

Prepayments and accrued income
470,999
795,331

4,457,839
4,063,462


Amounts due by group companies are interest free and repayable on demand.


14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,439
1,619

Less: bank overdrafts
(389,799)
(220,913)

(388,360)
(219,294)



15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank overdrafts
389,799
220,913

Trade creditors
610,544
1,095,389

Other taxation and social security
666,448
203,208

Other creditors
9,720
9,846

Accruals and deferred income
609,733
1,107,904

2,286,244
2,637,260



16.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets measured at fair value through profit or loss
1,439
1,619




Financial assets measured at fair value through profit or loss comprise cash at bank.

Page 21

 
JAMES JAMIESON CONSTRUCTION LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


Deferred taxation




2023


£






At beginning of year
(348,005)


Charged to profit or loss
(24,119)



At end of year
(372,124)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
372,295
348,209

Short term timing differences
(171)
(204)

372,124
348,005


18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1 (2022 - 1) Ordinary shares share of £1.00
1
1



19.


Reserves

Profit and loss account

Profit and loss reserves represent cumulative distributable reserves.


20.


Contingent liabilities

The company has entered into a cross corporate guarantee with other group companies in respect of borrowings with the groups bank. Aggregate amounts outstanding by the group under this guarantee at the Balance Sheet date total £700,000 (2022 - £1,300,000). The company has provided a bond and floating charge over the assets of the company as part of this guarantee.
Page 22

 
JAMES JAMIESON CONSTRUCTION LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023


21.


Pension commitments

The company contributes to a defined contribution pension scheme. The pension charge for the year represents contributions payable by the company to the funds and amounted to £40,639 (2022 - £40,427). The contributions outstanding at year end were £1,823 (2022 - £nil).


22.


Commitments under operating leases

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

2023
2022

£
£


Not later than 1 year
2,187
2,900

Later than 1 year and not later than 5 years
1,641
-

3,828
2,900


23.


Related party transactions

The company is a wholly owned subsidiary of James Jamieson Ardlethen Developments Limited and has taken advantage of the exemption given by section 33A of FRS102, which allows exemption from disclosure of related party transactions with other group companies on the basis that the company is a 100% subsidiary. 
During the prior year, loans were granted to a related individual of £101,027. The loan was repaid in full in the current year. Interest was charged in the year of £nil (2022 - £1,036).


24.


Controlling party

The company's ultimate parent company is James Jamieson Ardlethen Developments Limited, a company incorporated in Scotland. 


Page 23