Company registration number 04838546 (England and Wales)
ELECOMM LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
ELECOMM LIMITED
COMPANY INFORMATION
Directors
C Thomas
M P Mansell
L D Wareham
J M Wolvin
(Appointed 5 August 2024)
Secretary
M P Mansell
Company number
04838546
Registered office
C4 Beighton Link Business Park
Old Colliery Way
Sheffield
United Kingdom
S20 1DJ
Auditor
Hart Shaw LLP
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
ELECOMM LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 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 - 26
ELECOMM LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

At Elecomm we continue to deliver a huge variety of projects across the UK and Ireland, many having a positive impact on the lives of many individuals and communities during delivery and when completed, our portfolio of delivered works covers food retailers, health care, hospitals, logistic warehouses, education, accommodation and retirement living which we all take enormous pride in.

 

Elecomm remains very much a family focussed company, our values, ethos, and culture are moulded around these factors, we focus on our colleagues/clients and part of our vision must be to continue to ensure that we re-invest in our resources, particularly in the training of our people and the continual development of our Health & Safety culture.

 

Elecomm is a sector leading, independent business that embeds respect and honesty into everything we do, and we are committed to prudent management to ensure the long-term prosperity of the business, our operations are transparent and accountable, and we balance corporate, ethical, and environmental principles with sound business practice for sustainable commercial success.

 

As we continue to be a leader in the provision of Data/IT Services and Building Services Engineering, we are more focussed than ever to maintain our current position and in order to do this we must continue to invest in the right people to deliver the quality that we and our clients expect and whilst we must strive to maintain our current market offer we must always be pushing our innovation boundaries.

 

The financial Year 2023/2024 saw Elecomm achieve a much improved trading/operating profit of £1,153,587 which confirms that the corrective measures implemented in 2022 by the Executive Board Directors were the right decisions. We continue to monitor and improve our onsite operations, our commercial/financial strategy and our delivery efficiencies which continues to enhance our trading performance.

 

The continual focus within the business of delivering total client satisfaction has enabled it to maintain and build relationships with existing clients whilst at the same time strengthening our new client base.

 

Elecomm has had a strong start to the new financial year and the Directors are confident that the business is well placed to achieve its forecast.

 

ELECOMM LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Principal risks and uncertainties

General; We are continuing to monitor the fluctuation with regards to the cost of labour and materials and the directors continue to assess any potential risks facing the business and adapt to the changes despite the challenging economic conditions, the business has delivered a strong performance, with growth in revenue which is planned to continue with a strong pipeline of work throughout the financial year into 2025.

 

Financial; Elecomm has a diverse client base and works across a variety of business sectors, the business looks to mitigate financial/credit risk through regularly assessing and monitoring of our New/Existing key clients to protect Elecomm from potential bad debt.

 

Health and Safety, Quality and Environment; These elements continue to form part of our primary focus for the business, and they are at the heart of all we do, our In-house HSQE team promotes best practice throughout all our operations. The health and safety of all employees, customers and general public is of vital importance to the company and we constantly strive to achieve the highest standards supported by effective process and procedures, risk is managed through maintaining rigorous health and safety policies, the training of staff and regular site audits.

Human Resources; The company recognises that a key component to its success, and to enable it to meet the challenges that it faces, is the ability to attract, retain and develop the best people it can. The company has an excellent history in retaining its employees and will strive to continue to do this by ensuring staff development and training is encouraged at all levels by creating a work culture and environment that enables this to flourish.

 

Supply Chain; An important facet of the business is the company's supply chain for products and materials, the company has long standing and synergistic relationships with its key suppliers. Our procurement department works closely with all suppliers in order to ensure we achieve the best quality and price whilst minimising risk by ensuring that we are not over reliant upon any particular supplier. Recognising the importance of the supply chain, the company continues to hold an annual supply chain award, with awards being issued for Quality, Environmental awareness, and Health & Safety.

 

3 Year Strategy Plan; We are currently in our second year of our 3 year strategy plan, the structure alterations carried out in 2022 have significantly strengthened our Business and our trading position, we continue to grow with strength to secure a sustainable future and business for all to benefit from.

 

On behalf of the board

L D Wareham
Director
1 October 2024
ELECOMM LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities
The principal activity of the company continued to be that of electrical engineers and associated activities.
Results and dividends

The results for the year are set out on page 9.

Ordinary interim dividends were paid amounting to £650,000.

Directors

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

C Thomas
M P Mansell
L D Wareham
J M Wolvin
(Appointed 5 August 2024)
Auditor

The auditor, Hart Shaw LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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
L D Wareham
Director
1 October 2024
ELECOMM LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 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.

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

We have audited the financial statements of Elecomm Limited (the 'company') for the year ended 31 March 2024 which comprise 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:

ELECOMM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELECOMM 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud and the audit response

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:

At the planning stage we identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience and through discussion with the directors and other management, as required by auditing standards. The potential effect of any laws and regulation on the financial statements can vary considerably. There are laws and regulations that directly affect the financial statements (e.g. the Companies Act) as well as many other operational laws and regulations where the consequences of non-compliance could have a material effect on amounts or disclosures in the financial statements. Owing to the size, nature and complexity of the organisation and the applicable laws and regulations to which it must adhere, the risk of material misstatement was deemed to be low, therefore the procedures performed by the audit team were limited to:

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

We have assessed the overall susceptibility of the financial statements to material misstatement due to fraud. Management override is the most likely way in which fraud might present itself and as such is inherently high risk on any audit. Management override, which may cause there to be a material misstatement within the financial statements, may present itself in a number of ways, for example:

 

In order to reduce the risk of material misstatement to an acceptable level, numerous audit procedures were performed including:

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected material misstatements in the financial statements, even though we have performed our audit in accordance with auditing standards. Furthermore, as with all audits, there is a higher risk of irregularities (especially those relating to fraud) being undetected, as these may involve the override of internal controls, collusion, intentional omissions and misrepresentations etc. We are not responsible for preventing non-compliance or fraud and therefore cannot be expected to detect all instances of such. Our audit was not designed to identify misstatements or other irregularities that would not be considered to be material to the financial statements.

ELECOMM LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ELECOMM LIMITED
- 8 -

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.

Tim Dawson
Senior Statutory Auditor
For and on behalf of Hart Shaw LLP
4 October 2024
Chartered Accountants
Statutory Auditor
Europa Link
Sheffield Business Park
Sheffield
S9 1XU
ELECOMM LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
23,072,015
19,861,044
Cost of sales
(16,268,535)
(14,108,658)
Gross profit
6,803,480
5,752,386
Administrative expenses
(5,649,893)
(4,891,585)
Other operating income
-
0
7,000
Operating profit
4
1,153,587
867,801
Interest receivable and similar income
7
17,695
4,860
Interest payable and similar expenses
8
(6,908)
(3,410)
Profit before taxation
1,164,374
869,251
Tax on profit
9
(325,819)
(168,052)
Profit for the financial year
838,555
701,199

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

ELECOMM LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
193,447
230,117
Current assets
Stocks
13
322,106
243,709
Debtors
14
6,626,816
4,971,592
Cash at bank and in hand
126,234
539,421
7,075,156
5,754,722
Creditors: amounts falling due within one year
15
(5,038,647)
(3,948,826)
Net current assets
2,036,509
1,805,896
Total assets less current liabilities
2,229,956
2,036,013
Creditors: amounts falling due after more than one year
16
(103,155)
(118,567)
Provisions for liabilities
Deferred tax liability
18
41,000
20,200
(41,000)
(20,200)
Net assets
2,085,801
1,897,246
Capital and reserves
Called up share capital
21
108
108
Profit and loss reserves
2,085,693
1,897,138
Total equity
2,085,801
1,897,246

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 1 October 2024 and are signed on its behalf by:
L D Wareham
Director
Company registration number 04838546 (England and Wales)
ELECOMM LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2022
108
1,449,439
1,449,547
Year ended 31 March 2023:
Profit and total comprehensive income
-
701,199
701,199
Dividends
10
-
(253,500)
(253,500)
Balance at 31 March 2023
108
1,897,138
1,897,246
Year ended 31 March 2024:
Profit and total comprehensive income
-
838,555
838,555
Dividends
10
-
(650,000)
(650,000)
Balance at 31 March 2024
108
2,085,693
2,085,801
ELECOMM LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
26
421,512
(33,728)
Income taxes (paid)/refunded
(137,803)
36,314
Net cash inflow from operating activities
283,709
2,586
Investing activities
Purchase of tangible fixed assets
(32,271)
(64,369)
(Issue) / repayment of director loans
(10,000)
10,756
Interest received
17,695
4,860
Net cash used in investing activities
(24,576)
(48,753)
Financing activities
Repayment of bank loans
-
0
(500,000)
Payment of finance leases obligations
(15,412)
(7,706)
Interest paid
(6,908)
(3,410)
Dividends paid
(650,000)
(253,500)
Net cash used in financing activities
(672,320)
(764,616)
Net decrease in cash and cash equivalents
(413,187)
(810,783)
Cash and cash equivalents at beginning of year
539,421
1,350,204
Cash and cash equivalents at end of year
126,234
539,421
ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information

Elecomm Limited is a private company, limited by shares and incorporated in England and Wales. The registered office is C4 Beighton Link Business Park, Old Colliery Way, Sheffield, United Kingdom, S20 1DJ.

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 on 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.

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. See accounting policy for construction contracts for further details.

 

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 3 years.

1.5
Tangible fixed assets

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

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

Leasehold improvements
20% straight line
Plant and machinery
20% - 25% straight line
Fixtures, fittings and equipment
20% - 25% straight line
Computer equipment
33.3% straight line
Motor vehicles
10% - 15% straight line

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

ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -

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

1.6
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.

1.7
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

 

Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the value of work performed to date, in most cases this is valued by quantity surveyors. Income is accrued as necessary to include the value of un-invoiced work performed. Where contract costs have been invoiced in excess of the stage of completion costs are presented as stocks. Un-invoiced costs are accrued where necessary to bring costs in line with the stage of completion

1.8
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 transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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 receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

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.

ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Equity instruments

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

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.10
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.

1.11
Employee benefits

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

 

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

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits

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

1.13
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -

When the terms and conditions of equity-settled share-based payments at the time they were granted are subsequently modified, the fair value of the share-based payment under the original terms and conditions and under the modified terms and conditions are both determined at the date of the modification. Any excess of the modified fair value over the original fair value is recognised over the remaining vesting period in addition to the grant date fair value of the original share-based payment. The share-based payment expense is not adjusted if the modified fair value is less than the original fair value.

 

Cancellations or settlements (including those resulting from employee redundancies) are treated as an acceleration of vesting and the amount that would have been recognised over the remaining vesting period is recognised immediately.

1.14
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.

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.

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.

Accrued income

The company has profit making contracts which were in progress at the year end, for which work had been completed but not yet invoiced. In accordance with the accounting policy and the standards mentioned above, the company has accrued the revenue for which it is entitled to on these contracts to ensure sufficient revenue has been recognised in accordance with the stage of completion method. At the year end, the amount of accrued revenue totalled £1,643,409 (2023: £1,042,282).

Accrued contract costs

As described above there are contracts in progress at the year end, for which income has been accrued. Likewise, costs are accrued to bring the contract in line with managements expectation of the closing margin on the contract. There have been costs accrued on these contracts which were in progress at the year end for which costs totalled £1,386,744 (2023: £1,211,144).

ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
3
Turnover and other revenue

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

2024
2023
£
£
Turnover analysed by class of business
Rendering of services
23,072,015
19,861,044
2024
2023
£
£
Other significant revenue
Interest income
17,695
4,860
Grants received
-
7,000
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(7,000)
Fees payable to the company's auditor for the audit of the company's financial statements
20,500
17,000
Depreciation of owned tangible fixed assets
50,035
46,114
Depreciation of tangible fixed assets held under finance leases
18,906
11,028
(Profit)/loss on disposal of tangible fixed assets
-
1,423
Operating lease charges
98,753
87,145
5
Employees

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

2024
2023
Number
Number
Engineers
42
41
Office
80
78
Total
122
119

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,678,275
5,037,485
Social security costs
621,429
571,220
Pension costs
375,045
295,379
6,674,749
5,904,084
ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 19 -
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
148,187
313,351
Company pension contributions to defined contribution schemes
144,976
100,318
293,163
413,669

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023: 7)

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
n/a
95,656
Company pension contributions to defined contribution schemes
n/a
10,475
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
17,543
4,392
Other interest income
152
468
Total income
17,695
4,860
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
17,543
4,392
8
Interest payable and similar expenses
2024
2023
£
£
Other finance costs:
Interest on finance leases and hire purchase contracts
6,908
3,410
ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
304,719
137,652
Adjustments in respect of prior periods
300
-
0
Total current tax
305,019
137,652
Deferred tax
Origination and reversal of timing differences
20,800
30,400
Total tax charge
325,819
168,052

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:

2024
2023
£
£
Profit before taxation
1,164,374
869,251
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
291,094
165,158
Tax effect of expenses that are not deductible in determining taxable profit
4,270
2,335
Adjustments in respect of prior years
300
-
0
Effect of change in corporation tax rate
5,415
-
0
Deferred tax adjustments in respect of prior years
24,740
559
Taxation charge for the year
325,819
168,052
10
Dividends
2024
2023
£
£
Interim paid
650,000
253,500
ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
11
Intangible fixed assets
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
147,793
Amortisation and impairment
At 1 April 2023 and 31 March 2024
147,793
Carrying amount
At 31 March 2024
-
0
At 31 March 2023
-
0
12
Tangible fixed assets
Leasehold improvements
Plant and machinery
Fixtures, fittings and equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
4,150
53,570
10,653
155,612
155,661
379,646
Additions
-
0
-
0
465
31,806
-
0
32,271
Disposals
-
0
(8,486)
(4,025)
(37,418)
-
0
(49,929)
At 31 March 2024
4,150
45,084
7,093
150,000
155,661
361,988
Depreciation and impairment
At 1 April 2023
2,213
39,441
5,721
91,126
11,028
149,529
Depreciation charged in the year
830
6,344
2,287
40,574
18,906
68,941
Eliminated in respect of disposals
-
0
(8,486)
(4,025)
(37,418)
-
0
(49,929)
At 31 March 2024
3,043
37,299
3,983
94,282
29,934
168,541
Carrying amount
At 31 March 2024
1,107
7,785
3,110
55,718
125,727
193,447
At 31 March 2023
1,937
14,129
4,932
64,486
144,633
230,117

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

2024
2023
£
£
Motor vehicles
125,727
144,633
ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
13
Stocks
2024
2023
£
£
Contract work in progress
222,326
111,850
Finished goods and goods for resale
99,780
131,859
322,106
243,709
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,806,549
3,752,109
Other debtors
10,008
8
Prepayments and accrued income
1,810,259
1,219,475
6,626,816
4,971,592

Included within trade debtors is an amount of £2,475,433 (2023 - £1,938,707 ) which is subject to an invoice discount agreement.

15
Creditors: amounts falling due within one year
2024
2023
£
£
Obligations under finance leases
17
15,412
15,412
Trade creditors
1,692,631
1,483,515
Corporation tax
303,321
136,105
Other taxation and social security
403,584
606,329
Other creditors
113,058
83,925
Accruals and deferred income
2,510,641
1,623,540
5,038,647
3,948,826
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
17
103,155
118,567
ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
22,320
22,320
In two to five years
113,517
135,838
135,837
158,158
Less: future finance charges
(17,270)
(24,179)
118,567
133,979

Finance lease payments represent rentals payable by the company for certain items of motor vehicles. 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.

18
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
41,000
20,200
2024
Movements in the year:
£
Liability at 1 April 2023
20,200
Charge to profit or loss
20,800
Liability at 31 March 2024
41,000

The deferred tax liability set out above is expected to reverse in line with the writing down of the accelerated capital allowances and their associated fixed assets.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
375,045
295,379

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.

ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
20
Share-based payment transactions

The company grants equity settled share based payments to employees which have a vesting period of up to 2 years service. The share options granted are for ordinary shares only.

Number of share options
Weighted average exercise price
2024
2023
2024
2023
Number
Number
£
£
Outstanding at 1 April 2023
54
96
244.47
244.47
Forfeited
-
0
(42)
-
0
244.47
Outstanding at 31 March 2024
54
54
244.47
244.47
Exercisable at 31 March 2024
54
54
244.47
244.47

The weighted average share price at the date of exercise for share options exercised during the year was £0 (2023 - £0).

The options outstanding at 31 March 2024 had an exercise price of £244.47, and a remaining contractual life of 7 years.

 

The equity instruments were valued by combining adjusted net profit and adjusted net asset value.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
1,080
1,080
108
108
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:

2024
2023
£
£
Within one year
57,748
46,535
Between two and five years
55,606
14,994
113,354
61,529
ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
23
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Purchases
2024
2023
2024
2023
£
£
£
£
Other related parties
-
0
382
501,926
476,284

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Other related parties
27,380
25,447
24
Directors' transactions

Dividends totalling £650,000 (2023 - £253,500) were paid in the year in respect of shares held by the company's directors.

Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Directors loan
-
8
10,000
10,008
8
10,000
10,008
25
Consolidation accounting exemption

Elecomm Limited had one wholly owned UK subsidiary up until 30 December 2023 when it entered voluntary liquidation. Therefore, under Section 405 of the Companies Act 2006, it may be excluded from consolidation as its inclusion is not material for the purpose of giving a true and fair view.

 

Under Section 402, as Elecomm Limited's only subsidiary has been excluded from consolidation, it is exempt from the requirement to prepare group accounts.

 

ELECOMM LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 26 -
26
Cash generated from/(absorbed by) operations
2024
2023
£
£
Profit for the year after tax
838,555
701,199
Adjustments for:
Taxation charged
325,819
168,052
Finance costs
6,908
3,410
Investment income
(17,695)
(4,860)
(Gain)/loss on disposal of tangible fixed assets
-
1,423
Depreciation and impairment of tangible fixed assets
68,941
57,142
Movements in working capital:
(Increase)/decrease in stocks
(78,397)
610,213
Increase in debtors
(1,645,224)
(551,210)
Increase/(decrease) in creditors
922,605
(1,019,097)
Cash generated from/(absorbed by) operations
421,512
(33,728)
27
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
539,421
(413,187)
126,234
Obligations under finance leases
(133,979)
15,412
(118,567)
405,442
(397,775)
7,667
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