Company registration number 02770746 (England and Wales)
HIGHADMIT PROJECTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
HIGHADMIT PROJECTS LIMITED
COMPANY INFORMATION
Directors
Mr M Tuchli
Mrs M H Tuchli
Mr N Tuchli
Mr D Wells
Mr M Lewis
Secretary
Mrs M H Tuchli
Company number
02770746
Registered office
The Old Courthouse
Heol Y Gyfraith
Talbot Green
Pontyclun
CF72 8AJ
Auditor
UHY Hacker Young
Bradbury House
Mission Court
Newport
Gwent
United Kingdom
NP20 2DW
HIGHADMIT PROJECTS 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
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 24
HIGHADMIT PROJECTS 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

There has not been any changes in the principal activities of the company in the year under review. The directors expect revenues to continue to grow and results to improve.

 

As shown in the profit and loss account, the company's revenue increased by 63.9% compared with 2022, to £18,405,399 from £11,226,408.

 

The operating profit was £486,372 for the year to 31 December 2023 compared to £623,354 for the year to 31 December 2022.

 

At 31 December 2023 the company had net current assets of £2,782,177 (2022: £3,086,170) and net assets of £3,364,630 (2022: £3,423,445) as shown on the balance sheet.

 

Highadmit Projects Ltd. has seen an increase in turnover compared to the previous financial year. This was predominantly due to projects coming to fruition from the previous year and expansion of our customer base, which has further strengthened our position moving into the next financial year.

 

The business has established an exceptional reputation within the industry and accepts reoccurring orders from numerous clients, taking immense pride in our relationships with prestigious building services and consulting engineers, both newly forged and pre-existing. Our company has been performing exceptionally well in the current market, thanks to our loyal customers and dedicated staff. We have secured a number of new contracts and projects which will boost our revenue and profitability in the coming months. Our order book is full of high-quality and high-value orders that reflect our reputation and expertise in the industry – which is a remarkable achievement considering the challenging economic conditions. We are confident that we will continue to grow and deliver outstanding results for our stakeholders.

 

Highadmit Projects Ltd. continues to develop its workforce through its long-standing apprenticeship scheme, proving a productive and effective way to grow and develop our motivated, skilled and qualified workforce. Staff members have been awarded professional membership of the chartered institute of building services engineers (CIBSE) which is a globally recognized governing body. Staff members have recently been enrolled in renewable technology courses.

 

We have successfully delivered a large number of prestigious projects across industrial, commercials and institutional sectors, these include:

 

    SAP3 UWE – A 900 Bed Student accommodation.

    Holyrood – Primary School.

    Crown Place Nottingham – A 430 Bed Student accommodation.

Portsoken House – Large office refurbishment, central London.

BAMC – British airways Facility.

    Elm Park – Primary School

    Stonebow phase 2 – Hospital

 

A significant investment has been made in the completion of the office extension, with further developments planned in the near future.

 

HIGHADMIT PROJECTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Principal risks and uncertainties

The company operates in a highly competitive market which is a continuing risk to the company and could result in losing sales to its key competitors. The company manages this risk by focusing on quality of service.

 

The company's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The company does not use derivative financial instruments for speculative purposes.

 

Cash flow risk

The company has no interest bearing assets and few interest bearing liabilities which minimises the uncertainty of cash flows.

 

Credit Risk

The company's principal financial assets are cash, and trade and other receivables.

 

The company's credit risk is primarily attributed to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful receivables.

 

The company has no significant concentration of credit risk, with exposure spread over a large number of counterparties and customers.

 

Liquidity risk

The company manages the liquidity risk by monitoring working capital and ensuring there are sufficient funds to meet payments.

Key performance indicators

The Board regards the key measures of operating effectiveness to be sales growth and margins. However, the performance of individual contracts is also regarded as a key indicator of performance. Each contract is assessed individually with a number of large contracts per year. The company is satisfied with the contract performance in the year with no real issues noted. The contracts largely ran to budget and on time which means that the company hit its targets and the customers were generally delighted.

On behalf of the board

Mr N Tuchli
Director
26 September 2024
HIGHADMIT PROJECTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the company in the year under review was that of electrical installation.

Results and dividends

The results for the year are set out on page 8, a fair review of business is set out in the strategic report on page 1.

Ordinary dividends were paid amounting to £420,052. 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:

Mr M Tuchli
Mrs M H Tuchli
Mr N Tuchli
Mr D Wells
Mr M Lewis
Post reporting date events

In January 2023, the company's entire share capital was acquired by Highadmit Building Services Limited as part of a re-organisation.

Auditor

UHY Hacker Young have expressed their willingness to continue in office as auditor and appropriate arrangements have been put in place for them to be deemed reappointed as auditor in the absence of an Annual General Meeting.

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 company’s auditor 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 company’s auditor 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
Mr N Tuchli
Director
26 September 2024
HIGHADMIT PROJECTS 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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

HIGHADMIT PROJECTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF HIGHADMIT PROJECTS LIMITED
- 5 -
Opinion

We have audited the financial statements of Highadmit Projects Limited (the 'company') for the year ended 31 December 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 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:

HIGHADMIT PROJECTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHADMIT PROJECTS LIMITED
- 6 -
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:

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 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.

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:

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

HIGHADMIT PROJECTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF HIGHADMIT PROJECTS LIMITED
- 7 -

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial statements, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities 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.

Mr John Griffiths (Senior Statutory Auditor)
For and on behalf of UHY Hacker Young
26 September 2024
Chartered Accountants
Statutory Auditor
Newport
Gwent
United Kingdom
HIGHADMIT PROJECTS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
18,405,399
11,226,408
Cost of sales
(15,666,956)
(8,913,658)
Gross profit
2,738,443
2,312,750
Administrative expenses
(2,252,071)
(1,689,396)
Operating profit
4
486,372
623,354
Interest receivable and similar income
7
23,695
596
Interest payable and similar expenses
8
(11,773)
(8,662)
Profit before taxation
498,294
615,288
Tax on profit
9
(137,057)
(102,121)
Profit for the financial year
361,237
513,167

The profit and loss account has been prepared on the basis that all operations are continuing operations.

HIGHADMIT PROJECTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
361,237
513,167
Other comprehensive income
-
-
Total comprehensive income for the year
361,237
513,167
HIGHADMIT PROJECTS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
765,547
531,418
Current assets
Stocks
12
12,443
11,771
Debtors
14
3,308,617
5,076,274
Cash at bank and in hand
1,665,226
1,001,511
4,986,286
6,089,556
Creditors: amounts falling due within one year
15
(2,204,109)
(3,003,386)
Net current assets
2,782,177
3,086,170
Total assets less current liabilities
3,547,724
3,617,588
Creditors: amounts falling due after more than one year
16
(81,919)
(125,439)
Provisions for liabilities
Deferred tax liability
19
101,175
68,704
(101,175)
(68,704)
Net assets
3,364,630
3,423,445
Capital and reserves
Called up share capital
21
100
100
Profit and loss reserves
3,364,530
3,423,345
Total equity
3,364,630
3,423,445

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 26 September 2024 and are signed on its behalf by:
Mr N Tuchli
Director
Company registration number 02770746 (England and Wales)
HIGHADMIT PROJECTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2022
100
3,202,981
3,203,081
Year ended 31 December 2022:
Profit and total comprehensive income
-
513,167
513,167
Dividends
10
-
(292,803)
(292,803)
Balance at 31 December 2022
100
3,423,345
3,423,445
Year ended 31 December 2023:
Profit and total comprehensive income
-
361,237
361,237
Dividends
10
-
(420,052)
(420,052)
Balance at 31 December 2023
100
3,364,530
3,364,630
HIGHADMIT PROJECTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
1,519,196
415,070
Interest paid
(11,773)
(8,662)
Income taxes paid
(90,097)
(131,830)
Net cash inflow from operating activities
1,417,326
274,578
Investing activities
Purchase of tangible fixed assets
(309,599)
(113,357)
Proceeds from disposal of tangible fixed assets
-
0
18,000
Repayment of loans
(1,245)
167
Interest received
23,695
596
Net cash used in investing activities
(287,149)
(94,594)
Financing activities
Repayment of bank loans
(30,625)
(14,260)
Payment of finance leases obligations
(15,785)
36,065
Dividends paid
(420,052)
(292,803)
Net cash used in financing activities
(466,462)
(270,998)
Net increase/(decrease) in cash and cash equivalents
663,715
(91,014)
Cash and cash equivalents at beginning of year
1,001,511
1,092,525
Cash and cash equivalents at end of year
1,665,226
1,001,511
HIGHADMIT PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
1
Accounting policies
Company information

Highadmit Projects Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Old Courthouse, Heol Y Gyfraith, Talbot Green, Pontyclun, CF72 8AJ.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

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.

1.4
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:

Land and buildings Freehold
2% - 10% straight line
Plant and machinery
15% reducing balance
Fixtures, fittings & equipment
15% reducing balance
Motor vehicles
15% reducing balance
1.5
Stocks

Stocks 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.

HIGHADMIT PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 14 -

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.

1.6
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

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

 

Debtors and creditors with no stated interest rate and receivables or payables within one year are recorded at transaction price. Any loss arising from impairment are recognised in the profit and loss account in other administration expenses.

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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

HIGHADMIT PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

1.7
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 company’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.

 

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 when the company has 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.

1.8
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.9
Retirement benefits

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

HIGHADMIT PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.10
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 leases asset are consumed.

1.11
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 company’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Revenue recognition

As noted in 1.3 above, revenue from contracts is recognised by reference to the stage of completion, this inevitably involves the directors making estimates about the total anticipated costs of contracts and the future costs; these estimates can have a significant effect on revenue recognition and profit.

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.

Recoverability of retention balances

Management regularly reviews retention balances and makes provision for balances that it believes will not be recovered. The assessment of retention recovery requires management's best estimate based on knowledge of the underlying contracts and past history of recovery.

HIGHADMIT PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Contract sales
18,405,399
11,226,408
2023
2022
£
£
Other revenue
Interest income
23,695
596
4
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
8,912
8,913
Depreciation of owned tangible fixed assets
38,700
19,737
Depreciation of tangible fixed assets held under finance leases
36,770
36,717
(Profit)/loss on disposal of tangible fixed assets
-
14,763
Operating lease charges
54,747
45,542
5
Employees

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

2023
2022
Number
Number
Productive labour
40
40
Admin & management
18
22
Total
58
62

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,991,728
1,824,468
Social security costs
172,569
152,878
Pension costs
78,415
73,755
2,242,712
2,051,101
HIGHADMIT PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
43,000
43,000
Company pension contributions to defined contribution schemes
22,692
21,928
65,692
64,928
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
23,695
596
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
23,695
596
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,931
2,698
Other finance costs:
Interest on finance leases and hire purchase contracts
8,842
5,964
11,773
8,662
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
104,586
90,097
Deferred tax
Origination and reversal of timing differences
32,471
12,024
Total tax charge
137,057
102,121
HIGHADMIT PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
9
Taxation
(Continued)
- 19 -

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
498,294
615,288
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
117,199
116,905
Tax effect of expenses that are not deductible in determining taxable profit
19,863
7,357
Research and development tax credit
-
0
(18,565)
Depreciation in excess of capital allowances
(5)
(3,576)
Taxation charge for the year
137,057
102,121
10
Dividends
2023
2022
£
£
Final paid
420,052
292,803
11
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2023
225,420
27,154
100,297
414,263
767,134
Additions
146,761
-
0
15,925
146,913
309,599
At 31 December 2023
372,181
27,154
116,222
561,176
1,076,733
Depreciation and impairment
At 1 January 2023
19,901
24,999
64,639
126,177
235,716
Depreciation charged in the year
12,436
324
5,872
56,838
75,470
At 31 December 2023
32,337
25,323
70,511
183,015
311,186
Carrying amount
At 31 December 2023
339,844
1,831
45,711
378,161
765,547
At 31 December 2022
205,519
2,155
35,658
288,086
531,418
HIGHADMIT PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Tangible fixed assets
(Continued)
- 20 -

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Motor vehicles
208,366
245,137

Freehold land and buildings with a carrying amount of £159,613 (2022 - £163,241) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

12
Stocks
2023
2022
£
£
Finished goods and goods for resale
12,443
11,771
13
Financial instruments
2023
2022
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
1,724,917
2,647,286
Carrying amount of financial liabilities
Measured at amortised cost
2,033,761
3,003,889
14
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
242,092
1,376,418
Gross amounts owed by contract customers
1,465,387
2,067,075
Other debtors
1,564,712
1,391,670
Prepayments and accrued income
36,426
241,111
3,308,617
5,076,274
HIGHADMIT PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 21 -
15
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
17
13,704
17,040
Obligations under finance leases
18
50,491
50,045
Trade creditors
758,012
1,759,916
Corporation tax
104,586
90,097
Other taxation and social security
147,681
34,839
Other creditors
1,113,885
979,741
Accruals and deferred income
15,750
71,708
2,204,109
3,003,386
16
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
17
13,218
40,507
Obligations under finance leases
18
68,701
84,932
81,919
125,439
17
Loans and overdrafts
2023
2022
£
£
Bank loans
26,922
57,547
Payable within one year
13,704
17,040
Payable after one year
13,218
40,507

The long-term loans are secured by fixed charges over the property held in the accounts.

18
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
50,491
50,045
In two to five years
68,701
84,932
119,192
134,977
HIGHADMIT PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Finance lease obligations
(Continued)
- 22 -

Finance lease payments represent rentals payable by the company 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. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

19
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
104,724
68,704
Provisions
(3,549)
-
101,175
68,704
2023
Movements in the year:
£
Liability at 1 January 2023
68,704
Charge to profit or loss
32,471
Liability at 31 December 2023
101,175

The deferred tax liability set out above is expected to reverse in future years and relates to accelerated capital allowances that are expected to mature within the same period.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
78,415
73,755

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

At the year end the company had outstanding pension contributions of £14,147 (2022: £10,054), this amount being included within creditors due within one year.

HIGHADMIT PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
28
28
28
28
Ordinary B of £1 each
25
25
25
25
Ordinary C of £1 each
5
5
5
5
Ordinary D of £1 each
5
5
5
5
Ordinary E of £1 each
5
5
5
5
Ordinary F of £1 each
5
5
5
5
Ordinary G of £1 each
27
27
27
27
100
100
100
100
22
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
37,649
17,281
Between two and five years
60,541
13,883
98,190
31,164
23
Related party transactions

Included within other debtors is £782,600 (2022: £832,600) owed by MT Properties (South Wales) Limited, a company owned by Mekola Tuchli and Maria Tuchli.

24
Directors' transactions

Dividends totalling £0 (2022 - £249,200) were paid in the year in respect of shares held by the company's directors.

25
Ultimate controlling party

The company is ultimately controlled by Mekola Tuchli by virtue of his shareholding.

In January 2023, the company's Parent undertaking and Ultimate Parent became Highadmit Building Services Holdings Limited. Highadmit Building Services Holdings Limited is registered in England and Wales; it is the parent of the smallest and largest group that prepares group financial statements and of which the company is a member. Copies of the group financial statements can be obtained from the company's registered office.

HIGHADMIT PROJECTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
26
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
361,237
513,167
Adjustments for:
Taxation charged
137,057
102,121
Finance costs
11,773
8,662
Investment income
(23,695)
(596)
(Gain)/loss on disposal of tangible fixed assets
-
14,763
Depreciation and impairment of tangible fixed assets
75,470
56,454
Movements in working capital:
(Increase)/decrease in stocks
(672)
672
Decrease/(increase) in debtors
1,768,902
(1,304,708)
(Decrease)/increase in creditors
(810,876)
1,024,535
Cash generated from operations
1,519,196
415,070
27
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
1,001,511
663,715
1,665,226
Borrowings excluding overdrafts
(57,547)
30,625
(26,922)
Obligations under finance leases
(134,977)
15,785
(119,192)
808,987
710,125
1,519,112
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