REGISTERED NUMBER: 12477255 (England and Wales) |
UTILITY MANAGEMENT GROUP LTD |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
REGISTERED NUMBER: 12477255 (England and Wales) |
UTILITY MANAGEMENT GROUP LTD |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 | to | 4 |
Report of the Independent Auditors | 5 | to | 8 |
Consolidated Income Statement | 9 |
Consolidated Other Comprehensive Income | 10 |
Consolidated Balance Sheet | 11 |
Company Balance Sheet | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Financial Statements | 17 | to | 29 |
UTILITY MANAGEMENT GROUP LTD |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered accountants |
Statutory auditor |
Abercorn House |
79 Renfrew Road |
Paisley |
Renfrewshire |
PA3 4DA |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
The directors are pleased with the performance of the group during the year. We have successfully delivered a large number of projects and services throughout the period and have continued to invest in our plant and vehicle fleet. This enables us to compete for and deliver various contracts whilst maintaining high levels of customer satisfaction. |
Annual turnover remained consistent, increasing slightly to £19.7m (2023 - £19.6m). The gross profit margin for the year increased to 13.2% (2023 - 12.5%) as a result of our focus on cost control. The group continues to maintain it's underlying strength with net assets increasing to £4.5m (2023 - £3.6m). |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks and uncertainties facing the company are broadly grouped as competitive, legislative and financial instrument risk. |
Competitive Risks |
The company operates in a competitive market with contracts subject to tender. The directors are confident that the pricing and quality of services delivered will maintain high customer retention and attract new clients. |
Legislative Risks |
The company is subject to various legislative conditions. Failure to comply with these standards could materially affect the company's ability to operate. |
Financial Instruments Risk |
The company has established a risk and financial management framework whose primary objectives are to protect the company from events that hinder the achievement of the company's performance objectives. |
The company aims to address these risks by :- |
Continuous training and development of staff |
Maintaining controls in the key areas of labour, plant and transport |
Continual investment and development of operational software |
The continued growth on long term contracts in the capital and maintenance sector |
Continual development of adequate credit lines to support business developments. |
ON BEHALF OF THE BOARD: |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the group in the year under review was that of maintenance and installation in the utility sectors covering electrics, water, telecoms, gas, Local Government maintenance and recycling of building materials being used in the utility sector. |
DIVIDENDS |
The directors recommend that no final dividend be paid. |
Two shareholders waived rights to dividends. |
The total distribution of dividends for the year ended 30 June 2024 was £nil (2023 - £67,500). |
FUTURE DEVELOPMENTS |
At the time of reporting, the company is investing in an in-house training academy. This will enable us to upskill our current and future workforce and ensure that we continue to deliver high quality work with a focus on health and safety. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
CHARITABLE DONATIONS |
During the year £759 (2023 - £6,000) of charitable donations were made. |
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
AUDITORS |
The auditors, Milne Craig, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
UTILITY MANAGEMENT GROUP LTD |
Opinion |
We have audited the financial statements of Utility Management Group Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, 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 30 June 2024 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 |
UTILITY MANAGEMENT GROUP LTD |
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 three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
UTILITY MANAGEMENT GROUP LTD |
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: |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion, |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we consider the following: |
- the nature of the industry and sector, control environment and business performance including the key drivers for Directors' remuneration, bonus levels and performance targets; |
- results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
- any matters we identified having obtained and reviewed the Group's documentation of their policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any |
instances of non-compliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, |
suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and |
regulations; |
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
As a result of these procedures, we consider the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the margin recognition and revenue recognised on a percentage completion basis. In common with all audits under ISAs(UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory framework that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosure in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, tax legislation and Health and Safety legislation. |
In addition to the above, our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provision of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management concerning actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- reading minutes of meeting of those charged with governance; |
- in addressing the fraud risk in revenue recognised on a percentage completion basis, we have tested a sample of revenue recorded in the year through agreement to the contract, agreement to WIP records, agreement to WASP system (which records photographic evidence of stage of completion) and bank statements; and |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
UTILITY MANAGEMENT GROUP LTD |
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. |
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. |
for and on behalf of |
Chartered accountants |
Statutory auditor |
Abercorn House |
79 Renfrew Road |
Paisley |
Renfrewshire |
PA3 4DA |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
CONSOLIDATED |
INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 19,735,899 | 19,623,401 |
Cost of sales | (17,121,284 | ) | (17,162,388 | ) |
GROSS PROFIT | 2,614,615 | 2,461,013 |
Administrative expenses | (1,204,013 | ) | (1,218,261 | ) |
OPERATING PROFIT | 1,410,602 | 1,242,752 |
Interest receivable and similar income | 42,305 | 4,327 |
1,452,907 | 1,247,079 |
Amounts written off investments | 4 | - | (4 | ) |
1,452,907 | 1,247,075 |
Interest payable and similar expenses | 5 | (96,991 | ) | (81,540 | ) |
PROFIT BEFORE TAXATION | 6 | 1,355,916 | 1,165,535 |
Tax on profit | 7 | (426,158 | ) | (371,959 | ) |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 929,758 | 793,576 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
CONSOLIDATED |
OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 929,758 | 793,576 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
929,758 |
793,576 |
Total comprehensive income attributable to: |
Owners of the parent | 929,758 | 793,576 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
CONSOLIDATED BALANCE SHEET |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 | 1,664,680 | 1,958,447 |
Tangible assets | 11 | 2,087,898 | 1,829,687 |
Investments | 12 | - | - |
3,752,578 | 3,788,134 |
CURRENT ASSETS |
Stocks | 13 | 932,822 | 1,377,033 |
Debtors | 14 | 1,977,564 | 3,123,081 |
Cash at bank | 2,367,407 | 1,445,339 |
5,277,793 | 5,945,453 |
CREDITORS |
Amounts falling due within one year | 15 | 3,150,195 | 4,865,546 |
NET CURRENT ASSETS | 2,127,598 | 1,079,907 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,880,176 |
4,868,041 |
CREDITORS |
Amounts falling due after more than one year |
16 |
(858,354 |
) |
(845,361 |
) |
PROVISIONS FOR LIABILITIES | 21 | (503,941 | ) | (434,557 | ) |
NET ASSETS | 4,517,881 | 3,588,123 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 150,000 | 150,000 |
Share premium | 23 | 2,400,000 | 2,400,000 |
Retained earnings | 23 | 1,967,881 | 1,038,123 |
SHAREHOLDERS' FUNDS | 4,517,881 | 3,588,123 |
The financial statements were approved by the Board of Directors and authorised for issue on 27 September 2024 and were signed on its behalf by: |
David Joseph Grier - Director |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
COMPANY BALANCE SHEET |
30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 10 |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 14 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 3,550 | 787,288 |
The financial statements were approved by the Board of Directors and authorised for issue on |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 July 2022 | 150,000 | 312,047 | 2,400,000 | 2,862,047 |
Changes in equity |
Dividends | - | (67,500 | ) | - | (67,500 | ) |
Total comprehensive income | - | 793,576 | - | 793,576 |
Balance at 30 June 2023 | 150,000 | 1,038,123 | 2,400,000 | 3,588,123 |
Changes in equity |
Total comprehensive income | - | 929,758 | - | 929,758 |
Balance at 30 June 2024 | 150,000 | 1,967,881 | 2,400,000 | 4,517,881 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 June 2023 |
Changes in equity |
Total comprehensive income | - | - |
Balance at 30 June 2024 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 2,268,464 | 2,118,548 |
Interest paid | (4,365 | ) | (34,295 | ) |
Interest element of hire purchase payments paid |
(92,626 |
) |
(47,245 |
) |
Tax paid | (177,324 | ) | (51,523 | ) |
Net cash from operating activities | 1,994,149 | 1,985,485 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (963,351 | ) | (240,053 | ) |
Sale of tangible fixed assets | 109,283 | 157,936 |
Interest received | 42,305 | 4,327 |
Net cash from investing activities | (811,763 | ) | (77,790 | ) |
Cash flows from financing activities |
New loans in year | - | 150,000 |
Loan repayments in year | (160,006 | ) | (699,777 | ) |
Capital repayments in year | 51,178 | (305,783 | ) |
Amount introduced by directors | - | 151,490 |
Amount withdrawn by directors | (151,490 | ) | - |
Equity dividends paid | - | (67,500 | ) |
Net cash from financing activities | (260,318 | ) | (771,570 | ) |
Increase in cash and cash equivalents | 922,068 | 1,136,125 |
Cash and cash equivalents at beginning of year |
2 |
1,445,339 |
309,214 |
Cash and cash equivalents at end of year | 2 | 2,367,407 | 1,445,339 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
Profit before taxation | 1,355,916 | 1,165,535 |
Depreciation charges | 975,714 | 771,875 |
Profit on disposal of fixed assets | (86,092 | ) | (71,984 | ) |
Finance costs | 96,991 | 81,540 |
Finance income | (42,305 | ) | (4,327 | ) |
2,300,224 | 1,942,639 |
Decrease/(increase) in stocks | 444,211 | (385,847 | ) |
Decrease/(increase) in trade and other debtors | 1,145,517 | (1,230,651 | ) |
(Decrease)/increase in trade and other creditors | (1,621,488 | ) | 1,792,407 |
Cash generated from operations | 2,268,464 | 2,118,548 |
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 30 June 2024 |
30/6/24 | 1/7/23 |
£ | £ |
Cash and cash equivalents | 2,367,407 | 1,445,339 |
Year ended 30 June 2023 |
30/6/23 | 1/7/22 |
£ | £ |
Cash and cash equivalents | 1,445,339 | 309,214 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1/7/23 | Cash flow | At 30/6/24 |
£ | £ | £ |
Net cash |
Cash at bank | 1,445,339 | 922,068 | 2,367,407 |
1,445,339 | 922,068 | 2,367,407 |
Debt |
Finance leases | (1,373,509 | ) | (51,178 | ) | (1,424,687 | ) |
Debts falling due within 1 year | (159,690 | ) | 149,597 | (10,093 | ) |
Debts falling due after 1 year | (21,100 | ) | 10,411 | (10,689 | ) |
(1,554,299 | ) | 108,830 | (1,445,469 | ) |
Total | (108,960 | ) | 1,030,898 | 921,938 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Utility Management Group Ltd is a |
The nature of the Company's operations and its principal activities are set out in the Directors Report on page 2. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 £. |
Going concern |
At 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. |
Critical accounting judgements and key sources of estimation uncertainty |
In preparing these financial statements, the directors have made the following judgements: |
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. |
Assets are considered for indications of impairment. If required an impairment review will be carried out and a decision made on possible impairment. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit. |
Bad debts are provided for where objective evidence of the need for a provision exists. |
Inventories are assessed for evidence of obsolescence and a provision is made against any inventory unlikely to be sold, or where stock is sold post year end at a loss. |
Turnover |
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. Consideration is given to the point at which the Company is entitled to receive the income, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Revenue from the provision of services is recognised in the period in which the services are provided 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; |
- the costs incurred can be measured reliably. |
Goodwill |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Leasehold improvements | - |
Plant and machinery | - |
Motor vehicles | - |
Stocks and work in progress |
Stocks and work in progress are valued at the lower of cost and net realisable value, after making allowances for obsolete and slow moving items. |
Cost includes all direct expenditure and an appropriate proportion of fixed and variable overheads. |
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. |
Basic financial assets |
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transactions costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised. |
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. |
Classification of financial liabilities |
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. |
Basic financial liabilities |
Basic financial liabilities, including creditors, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date. |
Deferred tax is recognised in respect of all timing differences at the reporting date, except as otherwise indicated. |
Deferred tax assets are only 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. |
If and when all conditions for retaining tax allowances for the cost of a fixed asset have been met, the deferred tax is reversed. |
Deferred tax is calculated using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference. |
With the exception of changes arising on the initial recognition of a business combination, the tax expense (income) is presented either in profit or loss, other comprehensive income or equity depending on the transaction that resulted in the tax expense (income). |
Deferred tax liabilities are presented within provisions for liabilities and deferred tax assets within debtors. |
Deferred tax assets and deferred tax liabilities are offset only if the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously. |
Leases |
Assets held under finance leases, hire purchase contracts and other similar arrangements, which confer rights and obligations similar to those attached to owned assets, are capitalised as tangible fixed assets at the fair value of the leased asset (or, if lower, the present value of the minimum lease payments as determined at the inception of the lease) and are depreciated over the shorter of the lease terms and their useful lives. The capital elements of future lease obligations are recorded as liabilities, while the interest elements are charged to the profit and loss account over the period of the leases to produce a constant periodic rate of interest on the remaining balance of the liability. |
Rentals under operating leases are charged on a straight-line basis over the lease term, even if the payments are not made on such a basis. Benefits received and receivable as an incentive to sign an operating lease are similarly spread on a straight-line basis over the lease term. |
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. |
Cash and cash equivalents |
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and other short-term liquid investments with original maturities of three months or less. |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Impairment of assets |
Assets, other than those measured at fair value, are assessed for indicators of impairment at each balance sheet date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss as described below. |
Non-financial assets |
An asset is impaired where there is objective evidence that, as a result of one or more events that occurred after initial recognition, the estimated recoverable value of the asset has been reduced. The recoverable amount of an asset is the higher of its fair value less costs to sell and its value in use. |
Where indicators exist for a decrease in impairment loss, the prior impairment loss is tested to determine reversal. An impairment loss is reversed on an individual impaired asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. |
Financial assets |
For financial assets carried at amortised cost, the amount of impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate. |
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date. |
Where indicators exist for a decrease in impairment loss, and the decrease can be related objectively to an event occurring after the impairment was recognised, the prior impairment loss is tested to determine reversal. |
An impairment loss is reversed on an individual impaired financial asset to the extent that the revised recoverable value does not lead to a revised carrying amount higher than the carrying value had no impairment been recognised. |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,936,102 | 3,338,579 |
Social security costs | 293,965 | 327,051 |
Other pension costs | 121,492 | 76,460 |
3,351,559 | 3,742,090 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Direct labour | 49 | 61 |
Supervisors and backup office staff | 23 | 24 |
Accounts/Clerical | 5 | 5 |
Directors | 4 | 4 |
2024 | 2023 |
£ | £ |
Directors' remuneration | 317,083 | 315,692 |
Directors' pension contributions to money purchase schemes | 72,394 | 25,830 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | EMPLOYEES AND DIRECTORS - continued |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc | 122,500 | 120,339 |
Pension contributions to money purchase schemes | 6,823 | 6,975 |
4. | AMOUNTS WRITTEN OFF INVESTMENTS |
2024 | 2023 |
£ | £ |
Amounts w/o invs | - | 4 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank interest | 1,279 | 20,837 |
Interest on tax | - | (1,091 | ) |
Loan | 3,086 | 14,549 |
Hire purchase | 92,626 | 47,245 |
96,991 | 81,540 |
6. | PROFIT BEFORE TAXATION |
The profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases | 171,000 | 169,057 |
Depreciation - owned assets | 139,743 | 105,871 |
Depreciation - assets on hire purchase contracts | 542,206 | 372,238 |
Profit on disposal of fixed assets | (86,092 | ) | (71,984 | ) |
Goodwill amortisation | 293,767 | 293,767 |
Auditors remuneration | 18,000 | 17,000 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax | 356,774 | 177,324 |
Deferred tax | 69,384 | 194,635 |
Tax on profit | 426,158 | 371,959 |
UK corporation tax has been charged at 25 % (2023 - 20.50 %). |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
Profit before tax | 1,355,916 | 1,165,535 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 20.496 %) |
338,979 |
238,888 |
Effects of: |
Expenses not deductible for tax purposes | 87,179 | 35,890 |
Changes in deferred tax rates | - | 97,181 |
deferred tax |
Total tax charge | 426,158 | 371,959 |
8. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
9. | DIVIDENDS |
2024 | 2023 |
£ | £ |
A Ordinary Shares shares of £1 each |
Interim | - | 67,500 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
10. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 2,937,670 |
AMORTISATION |
At 1 July 2023 | 979,223 |
Amortisation for year | 293,767 |
At 30 June 2024 | 1,272,990 |
NET BOOK VALUE |
At 30 June 2024 | 1,664,680 |
At 30 June 2023 | 1,958,447 |
11. | TANGIBLE FIXED ASSETS |
Group |
Leasehold | Plant and | Motor |
improvements | machinery | vehicles | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2023 | 156,800 | 1,511,001 | 2,195,601 | 3,863,402 |
Additions | - | 177,457 | 785,894 | 963,351 |
Disposals | - | (137,400 | ) | (189,818 | ) | (327,218 | ) |
At 30 June 2024 | 156,800 | 1,551,058 | 2,791,677 | 4,499,535 |
DEPRECIATION |
At 1 July 2023 | 67,982 | 1,044,099 | 921,634 | 2,033,715 |
Charge for year | 17,855 | 218,868 | 445,226 | 681,949 |
Eliminated on disposal | - | (114,209 | ) | (189,818 | ) | (304,027 | ) |
At 30 June 2024 | 85,837 | 1,148,758 | 1,177,042 | 2,411,637 |
NET BOOK VALUE |
At 30 June 2024 | 70,963 | 402,300 | 1,614,635 | 2,087,898 |
At 30 June 2023 | 88,818 | 466,902 | 1,273,967 | 1,829,687 |
The net book value of tangible fixed assets includes £ 3,405,606 (2023 - £ 3,115,175 ) in respect of assets held under hire purchase contracts. |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: Foundry Park, Lows Lane, Stanton-By-Dale, Derbyshire, DE7 4QU |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Foundry Park, Lows Lane, Stanton-By-Dale, Derbyshire, DE7 4QU |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
Registered office: Foundry Park, Lows Lane, Stanton-By-Dale, Derbyshire, DE7 4QU |
Nature of business: |
% |
Class of shares: | holding |
2024 | 2023 |
£ | £ |
Aggregate capital and reserves |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | STOCKS |
Group |
2024 | 2023 |
£ | £ |
Raw materials | 240,701 | 580,109 |
Work-in-progress | 692,121 | 796,924 |
932,822 | 1,377,033 |
14. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Trade debtors | 1,734,745 | 2,829,513 |
Amounts owed by group undertakings | - | - |
VAT | 2,935 | 1,000 |
Prepayments and accrued income | 239,884 | 292,568 |
1,977,564 | 3,123,081 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2024 | 2023 | 2024 | 2023 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 17) | 10,093 | 9,690 |
Other loans (see note 17) | - | 150,000 |
Hire purchase contracts (see note 18) | 577,022 | 549,248 |
Trade creditors | 1,133,004 | 2,174,771 |
Tax | 356,893 | 177,443 |
Social security and other taxes | 393,684 | 744,028 |
Other creditors | 30,819 | 50,924 |
Directors' current accounts | - | 151,490 | - | - |
Accruals and deferred income | 648,680 | 857,952 |
3,150,195 | 4,865,546 |
16. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
2024 | 2023 |
£ | £ |
Bank loans (see note 17) | 10,689 | 21,100 |
Hire purchase contracts (see note 18) | 847,665 | 824,261 |
858,354 | 845,361 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
17. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 10,093 | 9,690 |
Other loans | - | 150,000 |
10,093 | 159,690 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 10,689 | 10,062 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | - | 11,038 |
18. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year | 577,022 | 549,248 |
Between one and five years | 847,665 | 824,261 |
1,424,687 | 1,373,509 |
Group |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year | 163,284 | 147,600 |
Between one and five years | 488,709 | 577,200 |
In more than five years | - | 49,500 |
651,993 | 774,300 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
2024 | 2023 |
£ | £ |
Hire purchase contracts | 1,424,687 | 1,373,509 |
Hire purchase creditors hold security over the assets financed. |
20. | FINANCIAL INSTRUMENTS |
The carrying amount for each category of financial instrument is as follows: |
2024 | 2023 |
£ | £ |
Financial assets |
Financial assets that are debt instruments measured at amortised cost | 1,734,745 | 2,829,513 |
Cash and cash equivalents | 2,367,407 | 1,445,339 |
4,102,152 | 4,274,852 |
Financial liabilities |
Financial liabilities measured at amortised cost | 2,578,473 | 3,880,560 |
21. | PROVISIONS FOR LIABILITIES |
Group |
2024 | 2023 |
£ | £ |
Deferred tax | 503,941 | 434,557 |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2023 | 434,557 |
Origination and reversal of |
timing differences | 69,384 |
Balance at 30 June 2024 | 503,941 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
21. | PROVISIONS FOR LIABILITIES - continued |
Provision has been made for all deferred tax assets in respect of accelerated capital allowances, short term timing differences arising from transactions and events recognised in the financial statements of the current year and previous years. |
Deferred taxation provided for at 25% (2023: 25%) in the financial statements is set out below: |
2024 | 2023 |
£ | £ |
Accelerated capital allowances | 504,981 | 436,153 |
Other timing differences | (1,040 | ) | (1,596 | ) |
503,941 | 434,557 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary Shares | £1 | 50,000 | 50,000 |
A Ordinary Shares | £1 | 100,000 | 100,000 |
150,000 | 150,000 |
The Ordinary Shares and A Ordinary Shares in issue, rank pari passu in all respects, save that on a Share Sale or a return on capital on liquidation, capital reduction or otherwise, the proceeds available for distribution among the shareholders (being consideration payable to the shareholders in the cash of a Share Sale, or the assets of the Company remaining after the payment of its liabilities in all other cases) will be distributed in the following order and priority: |
a) first, in paying to the holders of A Ordinary Shares in respect of each A Ordinary Share held the Issue Price of that A Ordinary Share; and |
b) second, in distributing the balance among all shareholders pro rata to the number of shares held, as if they all constituted shares of the same class. |
23. | RESERVES |
Group |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 July 2023 | 1,038,123 | 2,400,000 | 3,438,123 |
Profit for the year | 929,758 | 929,758 |
At 30 June 2024 | 1,967,881 | 2,400,000 | 4,367,881 |
UTILITY MANAGEMENT GROUP LTD (REGISTERED NUMBER: 12477255) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
23. | RESERVES - continued |
Company |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
At 1 July 2023 | 3,620,228 |
Profit for the year |
At 30 June 2024 | 3,623,778 |
24. | PENSION COMMITMENTS |
The company operates a defined contribution pension scheme. During the year the company made contributions of £121,492 to the scheme (2023- £76,460). At the year end, there is a balance of £9,039 (2023 - £14,518) included in creditors relating to pension contributions. |
25. | RELATED PARTY DISCLOSURES |
Included in other loans at 30 June 2024 is a loan of £nil (2023: £150,000) from Grier Property Developments Limited. |
During the year Billie Hammond made a loan to the group of £nil (2023: £151,490). |
During the year the group paid loan interest of £1,543 (2023: £9,775) to Grier Property Developments Limited and £1,543 (2023: £4,775) to Billie Hammond. |
During the year the group paid consultancy fees of £nil (2023 - £30,300) to Grier Property Developments Limited. |
Grier Property Developments Limited is a company related through one of the directors. |
During the year the group paid consultancy fees of £25,500 (2023 - £nil) to Craig Investment Leasing Company Limited. |
Craig Investment Leasing Company Limited is a company related through one of the directors. |
Total remuneration of key management excluding directors who have authority and responsibility for planning, directing and controlling the activities of the company is £222,107 (2023 - £99,352). This figure excludes directors. |