Company registration number 14034775 (England and Wales)
JADE-ADEN LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
JADE-ADEN LTD
COMPANY INFORMATION
Directors
G P Gibson
(Appointed 8 April 2022)
A Gibson
(Appointed 8 April 2022)
J Gibson
(Appointed 8 April 2022)
S Kirtley
(Appointed 8 April 2022)
Company number
14034775
Registered office
Tower House
Parkstone Road
Poole
Dorset
BH15 2JH
Auditor
Hill Osborne Ltd
Tower House
Parkstone Road
Poole
Dorset
BH15 2JH
Business address
10 Holton Point
Holton Heath Trading Park
Poole
Dorset
BH16 6FL
JADE-ADEN LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 36
JADE-ADEN LTD
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 1 -

The directors present the strategic report for the period ended 30 September 2023.

Review of the business

The company was incorporated on 8 April 2022. The financial statements cover the period from 8 April 2022 to 30 September 2023.

 

The results of the group for the period, as set out on pages 8 to 36, show a profit on ordinary activities before tax of £3,391,297. Turnover for the period is £43,662,464 and gross profit margin is 14.46%.

Principal risks and uncertainties

The principal activity of the group is that of design and build contractors, property developers and industrial roofing and cladding contractors. Over the last few years the primary focus of the company's indirectly held trading subsidiary has been on design and build contracts. However, the directors realise there is a potential risk if there is a general and economic decline.

 

To alleviate this risk the group continues to engage in a wide range of contracts, including industrial roofing and industrial development.

 

All sectors within which the group operates are continually reviewed to ensure that sufficient returns are made.

Given the current workload, both with in-house and contracted developments, the directors are confident of the future order book and the profits that will be achieved.

Development and performance

A management buy out took place on 14 April 2022 whereby the company acquired 100% of the shares in Jade-Aden Services Holdings Ltd and its trading subsidiary Jade-Aden Services Limited.

 

The shareholders' funds of the company total £7,593,414.The directors are satisfied with the performance of the group during the period and are expecting enhanced growth in future years, particularly in industrial development where several projects are ongoing.

Key performance indicators

The group's main growth still continues to be commercial property development and sales, which is complemented from strong growth within both Design and Build, and contracting activities.

 

Strong demand for low carbon buildings, by both investors, and end users remains very high. This market has contributed largely to the overall stronger profits generated.

 

Design and Build projects have been the second biggest growth factor for turnover, with refurbishments contracts adding to the overall group turnover.

 

The main focus for the group is in delivering low carbon, or zero carbon building solutions, throughout all sectors.

 

Whilst operating through one of the construction industry's most volatile inflationary periods, the group has taken a collaborative approach with both clients, suppliers, and contractors, to still achieve cost effective project conclusions.

 

The development sector will still be the focus within the group to achieve the main growth through 2024 and 2025.

Other information and explanations

Health and Safety

The group pursues a rigorous monitoring of its health and safety obligations.

 

Environmental Issues

The group's policy on environmental issues is to assess their impact and incorporate them in the projects it is undertaking.

JADE-ADEN LTD
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 2 -

On behalf of the board

G P Gibson
Director
5 October 2024
JADE-ADEN LTD
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 3 -

The directors present their annual report and financial statements for the period ended 30 September 2023.

Principal activities

The principal activity of the company and group was that of Design and Build, steel frame, and cladding contracts. These remain at the core of the group's activities.

Results and dividends

The results for the period are set out on page 8.

 

The results for the period and the financial position at the period end were considered satisfactory by the directors who expect continued growth in the foreseeable future.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

G P Gibson
(Appointed 8 April 2022)
A Gibson
(Appointed 8 April 2022)
J Gibson
(Appointed 8 April 2022)
S Kirtley
(Appointed 8 April 2022)
Financial instruments

The group's principal financial instruments comprise loan agreements and trade creditors. The main purpose of these instruments is to raise funds for the group's working capital requirement and to finance company operations. Due to the nature of financial instruments used by the group there is no exposure to price risk. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Future developments

Future principal activities of the group will focus on developing land within the South of England, building a range of commercial facilities, for sale, or lease.

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 auditor of the company 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 auditor of the company 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
G P Gibson
S Kirtley
Director
Director
5 October 2024
JADE-ADEN LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

JADE-ADEN LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF JADE-ADEN LTD
- 5 -
Opinion

We have audited the financial statements of Jade-Aden Ltd (the 'parent company') and its subsidiaries (the 'group') for the period ended 30 September 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company 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 group and parent 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 group's and 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 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:

JADE-ADEN LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JADE-ADEN LTD
- 6 -
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 their 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 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 parent 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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

We assess the risk of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures in response to those risks, including obtaining appropriate audit evidence 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 considered the following:

 

Audit response to risks identified

Our procedures to respond to the risks identified included the following:

 

 

In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments and assessed whether judgements made in making accounting estimates are indicative of a potential bias and evaluating the business rationale of significant transactions outside the normal course of business.

JADE-ADEN LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF JADE-ADEN LTD
- 7 -

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.

Lucia Ball (Senior Statutory Auditor)
For and on behalf of Hill Osborne Ltd
9 October 2024
Chartered Accountants
Statutory Auditor
Tower House
Parkstone Road
Poole
Dorset
BH15 2JH
JADE-ADEN LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 8 -
Period
ended
30 September
2023
Notes
£
Turnover
3
43,662,464
Cost of sales
(37,348,242)
Gross profit
6,314,222
Administrative expenses
(2,918,453)
Other operating income
11,841
Operating profit
4
3,407,610
Interest receivable and similar income
8
26,492
Interest payable and similar expenses
9
(42,805)
Profit before taxation
3,391,297
Tax on profit
10
(947,883)
Profit for the financial period
28
2,443,414
Profit for the financial period is all attributable to the owners of the parent company.
JADE-ADEN LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 9 -
Period
ended
30 September
2023
£
Profit for the period
2,443,414
Other comprehensive income
-
Total comprehensive income for the period
2,443,414
Total comprehensive income for the period is all attributable to the owners of the parent company.
JADE-ADEN LTD
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
Notes
£
£
Fixed assets
Goodwill
11
5,682,602
Tangible assets
12
720,496
6,403,098
Current assets
Stocks
16
121,264
Debtors
18
4,831,501
Cash at bank and in hand
5,130,708
10,083,473
Creditors: amounts falling due within one year
19
(5,539,532)
Net current assets
4,543,941
Total assets less current liabilities
10,947,039
Creditors: amounts falling due after more than one year
20
(266,667)
Provisions for liabilities
Provisions
22
2,907,634
Deferred tax liability
23
179,324
(3,086,958)
Net assets
7,593,414
Capital and reserves
Called up share capital
25
1,000
Share premium account
26
149,400
Other reserves
27
4,999,600
Profit and loss reserves
28
2,443,414
Total equity
7,593,414

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 5 October 2024 and are signed on its behalf by:
05 October 2024
G P Gibson
S Kirtley
Director
Director
Company registration number 14034775 (England and Wales)
JADE-ADEN LTD
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2023
30 September 2023
- 11 -
2023
Notes
£
£
Fixed assets
Investments
13
7,562,500
Current assets
Debtors
18
400
Cash at bank and in hand
240
640
Creditors: amounts falling due within one year
19
(7,412,740)
Net current liabilities
(7,412,100)
Net assets
150,400
Capital and reserves
Called up share capital
25
1,000
Share premium account
26
149,400
Total equity
150,400

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the period was £0.

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 5 October 2024 and are signed on its behalf by:
05 October 2024
G P Gibson
S Kirtley
Director
Director
Company registration number 14034775 (England and Wales)
JADE-ADEN LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 12 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 8 April 2022
-
-
-
-
-
Period ended 30 September 2023:
Profit and total comprehensive income
-
-
-
2,443,414
2,443,414
Issue of share capital
25
1,000
149,400
-
-
150,400
Fair value adjustment on consolidation
-
-
4,999,600
-
4,999,600
Balance at 30 September 2023
1,000
149,400
4,999,600
2,443,414
7,593,414
JADE-ADEN LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 13 -
Share capital
Share premium account
Total
Notes
£
£
£
Balance at 8 April 2022
-
-
-
Period ended 30 September 2023:
Profit and total comprehensive income
-
-
-
0
Issue of share capital
25
1,000
149,400
150,400
Balance at 30 September 2023
1,000
149,400
150,400
JADE-ADEN LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 14 -
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
34
9,143,302
Interest paid
(42,805)
Income taxes paid
(1,375,023)
Net cash inflow/(outflow) from operating activities
7,725,474
Investing activities
Purchase of business
(1,238,991)
Purchase of tangible fixed assets
(802,155)
Proceeds from disposal of tangible fixed assets
19,833
Repayment of loans
(373,279)
Interest received
26,492
Net cash used in investing activities
(2,368,100)
Financing activities
Repayment of borrowings
(226,666)
Net cash used in financing activities
(226,666)
Net increase in cash and cash equivalents
5,130,708
Cash and cash equivalents at beginning of period
-
Cash and cash equivalents at end of period
5,130,708
JADE-ADEN LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 15 -
2023
Notes
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
35
240
Net increase in cash and cash equivalents
240
Cash and cash equivalents at beginning of period
-
Cash and cash equivalents at end of period
240
JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 16 -
1
Accounting policies
Company information

Jade-Aden Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Tower House, Parkstone Road, Poole, Dorset, BH15 2JH. The principal place of business is 10 Holton Point, Holton Heath Trading Park, Poole, Dorset, BH16 6FL.

 

The group consists of Jade-Aden Ltd and all of its subsidiaries.

1.1
Reporting period

The financial statements are presented for the period 8 April 2022 to 30 September 2023. The financial statement reporting period has been lengthened so as to align the period end date with fellow group companies.

1.2
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.3
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.4
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Jade-Aden Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 September 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 17 -

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.5
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.6
Turnover

Turnover represents a combination of contract work invoiced during the year together with completed development sales. Invoices and applications for payment are made at regular stages throughout a contract. Turnover is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.7
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 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.8
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.

JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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:

Plant and equipment
20% straight line
Motor vehicles
25% reducing balance

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 recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.10
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 19 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.11
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.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
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 revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The stage of completion is normally measured by the proportion that contract costs incurred for work performed to date bear to the estimated total contract costs, except where this would not be representative of the stage of completion..

Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.13
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.14
Financial instruments

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

 

Financial assets and liabilities are offset and 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.

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 group 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.

JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 21 -
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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

 

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

 

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 group's contractual obligations expire or are discharged or cancelled.

1.15
Equity instruments

Equity instruments issued by the group 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 group.

1.16
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 22 -
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.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.17
Provisions

Provisions are recognised when the group has a legal or constructive present obligation as a result of a past event, it is probable that the group will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.18
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.

1.19
Retirement benefits

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

1.20
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Construction contracts

A significant portion of the group's activities are undertaken through long-term construction contracts, the group is required to make estimates in accounting for revenue and profit margin. These estimates may depend upon the outcome of future events and may need to be revised as circumstances change.

Contract provisions

The details of the group's contract provisions is detailed in note 22 to the financial statements. Management has recognised contract provisions based on its best estimate of future cost obligations.

3
Turnover and other revenue
2023
£
Turnover analysed by class of business
Contract revenue arising on construction services
43,572,131
Sale of goods
90,333
43,662,464
2023
£
Other revenue
Interest income
26,492
4
Operating profit
2023
£
Operating profit for the period is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
256,620
Profit on disposal of tangible fixed assets
(11,538)
Amortisation of intangible assets
973,848
Operating lease charges
220,815
JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 24 -
5
Auditor's remuneration
2023
Fees payable to the company's auditor and associates:
£
For audit services
Audit of the financial statements of the group and company
5,000
Audit of the financial statements of the company's subsidiaries
40,213
45,213

The auditor's remuneration represent fees covering an18 month period.

6
Employees

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

Group
Company
2023
2023
Number
Number
37
-
0

Their aggregate remuneration comprised:

Group
Company
2023
2023
£
£
Wages and salaries
2,276,897
-
0
Social security costs
245,714
-
Pension costs
112,481
-
0
2,655,815
-
0
7
Directors' remuneration
2023
£
Remuneration for qualifying services
326,425
Company pension contributions to defined contribution schemes
8,986
335,411
JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
7
Directors' remuneration
(Continued)
- 25 -
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
£
Remuneration for qualifying services
97,334
8
Interest receivable and similar income
2023
£
Interest income
Interest on bank deposits
25,139
Other interest income
1,353
Total income
26,492
2023
Investment income includes the following:
£
Interest on financial assets not measured at fair value through profit or loss
25,139
9
Interest payable and similar expenses
2023
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
42,183
Other finance costs:
Interest on finance leases and hire purchase contracts
138
Other interest
484
Total finance costs
42,805
10
Taxation
2023
£
Current tax
UK corporation tax on profits for the current period
813,352
Deferred tax
Origination and reversal of timing differences
134,531
Total tax charge
947,883
JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
10
Taxation
(Continued)
- 26 -

The actual charge for the period can be reconciled to the expected charge/(credit) for the period based on the profit or loss and the standard rate of tax as follows:

2023
£
Profit before taxation
3,391,297
Expected tax charge based on the standard rate of corporation tax in the UK of 21.01%
712,511
Tax effect of expenses that are not deductible in determining taxable profit
7,831
Permanent capital allowances in excess of depreciation
93,010
Deferred tax adjustments in respect of prior years
134,531
Taxation charge
947,883
11
Intangible fixed assets
Group
Goodwill
£
Cost
At 8 April 2022
-
0
Additions - business combinations
6,656,450
At 30 September 2023
6,656,450
Amortisation and impairment
At 8 April 2022
-
0
Amortisation charged for the period
973,848
At 30 September 2023
973,848
Carrying amount
At 30 September 2023
5,682,602
The company had no intangible fixed assets at 30 September 2023.
JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 27 -
12
Tangible fixed assets
Group
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 8 April 2022
-
0
-
0
-
0
Additions
287,705
514,449
802,154
Business combinations
63,226
120,031
183,257
Disposals
-
0
(44,096)
(44,096)
At 30 September 2023
350,931
590,384
941,315
Depreciation and impairment
At 8 April 2022
-
0
-
0
-
0
Depreciation charged in the period
81,943
174,677
256,620
Eliminated in respect of disposals
-
0
(35,801)
(35,801)
At 30 September 2023
81,943
138,876
220,819
Carrying amount
At 30 September 2023
268,988
451,508
720,496
The company had no tangible fixed assets at 30 September 2023.
13
Fixed asset investments
Group
Company
2023
2023
Notes
£
£
Investments in subsidiaries
14
-
0
7,562,500
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 8 April 2022
-
Additions
7,562,500
At 30 September 2023
7,562,500
Carrying amount
At 30 September 2023
7,562,500
14
Subsidiaries

Details of the company's subsidiaries at 30 September 2023 are as follows:

JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
14
Subsidiaries
(Continued)
- 28 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Jade-Aden Services Limited
England and Wales
Ordinary
-
100.00
Jade-Aden Services Holdings Limited
England and Wales
Ordinary
100.00
-
Holton Point Management Limited
England and Wales
Ordinary
-
100.00

The registered office address of Jade-Aden Services Limited and Jade-Aden Services Holdings Limited is Tower House, Parkstone Road, Poole, Dorset, BH15 2JH.

 

The registered office of Holton Point Management Limited is 10 Holton Point, Holton Heath Trading Park, Poole, Dorset, BH16 6FL.

The subsidiary companies are accounted for under the acquisition method of accounting.

The financial statements of each of the company's subsidiaries are prepared for the accounting year ended 30 September 2023. This is a different period to the consolidated accounts of Jade-Aden Ltd which cover the period 8 April 2022 to 30 September 2023.

15
Financial instruments
Group
Company
2023
2023
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
3,026,630
400
Carrying amount of financial liabilities
Measured at amortised cost
4,828,373
7,412,740
16
Stocks
Group
Company
2023
2023
£
£
Work in progress
108,175
-
Finished goods and goods for resale
13,089
-
0
121,264
-
17
Construction contracts
Group
Company
2023
2023
£
£
Contracts in progress at the reporting date
Gross amounts owed by contract customers included in debtors
1,345,024
-
0
Retentions held by customers
922,851
-
JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 29 -
18
Debtors
Group
Company
2023
2023
Amounts falling due within one year:
£
£
Trade debtors
2,651,513
-
0
Gross amounts owed by contract customers
1,345,024
-
0
Corporation tax recoverable
395,261
-
0
Other debtors
375,117
400
Prepayments and accrued income
64,586
-
0
4,831,501
400
19
Creditors: amounts falling due within one year
Group
Company
2023
2023
Notes
£
£
Bank loans
21
160,000
-
0
Trade creditors
2,570,028
-
0
Amounts owed to group undertakings
-
0
7,412,740
Corporation tax payable
578,627
-
0
Other taxation and social security
399,199
-
Other creditors
357,752
-
0
Accruals and deferred income
1,473,926
-
0
5,539,532
7,412,740
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2023
Notes
£
£
Bank loans and overdrafts
21
266,667
-
0
21
Loans and overdrafts
Group
Company
2023
2023
£
£
Bank loans
426,667
-
0
Payable within one year
160,000
-
0
Payable after one year
266,667
-
0

The group's total bank borrowing is fully secured by a debenture incorporating a fixed and floating charge.

JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
21
Loans and overdrafts
(Continued)
- 30 -

The bank borrowing is being repaid in monthly instalments, the final repayment date is 13 May 2026. The interest rate on the loan is Base rate + 2.11%.

22
Provisions for liabilities
Group
Company
2023
2023
£
£
2,907,634
-
Movements on provisions:
Group
£
Additional provisions in the period
3,049,994
Reversal of provision
(142,360)
At 30 September 2023
2,907,634

Contract provisions include estimated defect provisions on contracts, including design and build contracts. The provisions have been made to rectify any potential additional future rectification works identified, should they be deemed necessary.

23
Deferred taxation

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

Liabilities
2023
Group
£
Accelerated capital allowances
179,324
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the period:
£
£
Asset at 8 April 2022
-
-
Charge to profit or loss
134,531
-
Other
44,793
-
Liability at 30 September 2023
179,324
-
JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
23
Deferred taxation
(Continued)
- 31 -

The Finance Act 2021 was substantially enacted in May 2021 and has increased the corporation tax rate to from 19% to 25% with effect from 1 April 2023. The deferred taxation balances have been measured using the rates expected to apply in the reporting periods when the timing differences reverse.

24
Retirement benefit schemes
2023
Defined contribution schemes
£
Charge to profit or loss in respect of defined contribution schemes
112,481

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

25
Share capital
Group and company
2023
2023
Ordinary share capital
Number
£
Issued and fully paid
Ordinary A shares of £1 each
600
600
Ordinary B shares of £1 each
400
400
1,000
1,000

During the period the company issued 600 ordinary A shares of £1 each and 400 ordinary B shares of £1 each.

26
Share premium account
Group
Company
2023
2023
£
£
At the beginning of the period
-
0
-
0
Issue of new shares
149,400
149,400
At the end of the period
149,400
149,400

The share premium account is in connection with the issue of the ordinary A shares in the period.

27
Other reserves
2023
Group
£
At the beginning of the period
-
Other movements
4,999,600
At the end of the period
4,999,600
JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
27
Other reserves
(Continued)
- 32 -
2023
Company
£
At the beginning and end of the period
-

On 14 April 2022, a management buyout took place whereby the company acquired the Jade-Aden Services Holdings Limited Group. The fair value of the acquisition was £12,500,000. Other reserves represents the fair value of the share exchange component of the consideration.

28
Profit and loss reserves
Group
Company
2023
2023
£
£
At the beginning of the period
-
-
Profit for the period
2,443,414
-
0
At the end of the period
2,443,414
-
0
29
Acquisition of a business

On 14 April 2022 the group acquired 100 percent of the issued capital of Jade-Aden Services Holdings Limited Group.

Book Value
Adjustments
Fair Value
Net assets acquired
£
£
£
Property, plant and equipment
183,256
-
183,256
Investments
2
-
2
Inventories
836,083
-
836,083
Trade and other receivables
7,837,677
-
7,837,677
Cash and cash equivalents
2,823,509
-
2,823,509
Borrowings
(653,333)
-
(653,333)
Trade and other payables
(4,180,088)
-
(4,180,088)
Tax liabilities
(762,012)
-
(762,012)
Provisions
(151,225)
-
(151,225)
Deferred tax
(27,818)
-
(27,818)
Total identifiable net assets
5,906,051
-
5,906,051
Goodwill
6,656,449
Total consideration
12,562,500
JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
29
Acquisition of a business
(Continued)
- 33 -
The consideration was satisfied by:
£
Cash
4,062,500
Issue of shares
5,000,000
Deferred consideration
3,500,000
12,562,500
Contribution by the acquired business for the reporting period included in the group statement of comprehensive income since acquisition:
£
Turnover
43,662,664
Profit after tax
2,443,414
30
Financial commitments, guarantees and contingent liabilities

The group has given an unlimited debenture in favour of Lloyds Banking Group PLC.

 

The group has given a guarantee in favour of Stage Light Sound Ltd.

 

The group has given a guarantee limited to £800,000 to a connected company in respect of the group's bank borrowing.

31
Operating lease commitments

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

Group
Company
2023
2023
£
£
Within one year
43,836
-
Between two and five years
175,344
-
In over five years
140,641
-
359,821
-
32
Related party transactions
JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
32
Related party transactions
(Continued)
- 34 -

The group made sales to entities under the control of a director totalling £659,053. The amount owing from the entities at 30 September 2023 is £3,984.

 

The group made purchases from entities under the control of a director totalling £894,099. The amount owing to the entities at 30 September 2023 is £146,530.

 

The group made sales to entities over which a director has significant influence totalling £225,321. The amount owing by these entities at 30 September 2023 is £nil.

 

The group made purchases from entities over which one of the directors has significant influence totalling £1,872,114. The amount owing to these entities at 30 September 2023 is £218,426.

 

During the period the group made sales to a director in respect of a build contract totalling £334,051.

 

Included in work in progress at the balance sheet date are development costs totalling £8,186 in respect of works carried out for a director.

 

During the period the group made purchases from a director totalling £5,208.

33
Directors' transactions
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Loan
2.12
43,645
15,837
852
(21,106)
39,228
Loan
-
-
334,051
-
-
334,051
43,645
349,888
852
(21,106)
373,279
JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 35 -
34
Cash generated from/(absorbed by) group operations
2023
£
Profit for the period after tax
2,443,414
Adjustments for:
Taxation charged
947,883
Finance costs
42,805
Investment income
(26,492)
Gain on disposal of tangible fixed assets
(11,538)
Amortisation and impairment of intangible assets
973,848
Depreciation and impairment of tangible fixed assets
256,620
Increase in provisions
2,756,409
Movements in working capital:
Decrease in stocks
714,819
Decrease in debtors
7,837,116
Decrease in creditors
(6,791,582)
Cash generated from/(absorbed by) operations
9,143,302
35
Cash generated from/(absorbed by) operations - company
2023
£
Profit for the period after tax
-
Movements in working capital:
Increase in creditors
240
Cash generated from/(absorbed by) operations
240
36
Analysis of changes in net funds - group
8 April 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
-
5,130,708
5,130,708
Borrowings excluding overdrafts
-
(426,667)
(426,667)
-
4,704,041
4,704,041
JADE-ADEN LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 SEPTEMBER 2023
- 36 -
37
Analysis of changes in net funds - company
8 April 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
-
240
240
2023-09-302022-04-08falseCCH SoftwareCCH Accounts Production 2024.210G P GibsonA GibsonJ GibsonS Kirtleyfalsefalse14034775bus:Consolidated2022-04-082023-09-30140347752022-04-082023-09-3014034775bus:Director12022-04-082023-09-3014034775bus:Director22022-04-082023-09-3014034775bus:Director32022-04-082023-09-3014034775bus:Director42022-04-082023-09-3014034775bus:RegisteredOffice2022-04-082023-09-30140347752023-09-3014034775bus:Consolidated2023-09-3014034775core:Goodwillbus:Consolidated2023-09-3014034775core:PlantMachinerybus:Consolidated2023-09-3014034775core:MotorVehiclesbus:Consolidated2023-09-3014034775core:ShareCapitalbus:Consolidated2023-09-3014034775core:SharePremiumbus:Consolidated2023-09-3014034775core:OtherMiscellaneousReservebus:Consolidated2023-09-3014034775core:ShareCapital2023-09-3014034775core:SharePremium2023-09-3014034775core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-09-3014034775core:SharePremiumbus:Consolidated2022-04-0714034775core:SharePremium2022-04-0714034775core:RetainedEarningsAccumulatedLosses2023-09-3014034775core:ShareCapitalbus:Consolidated2022-04-082023-09-3014034775core:SharePremiumbus:Consolidated2022-04-082023-09-3014034775core:ShareCapital2022-04-082023-09-3014034775core:SharePremium2022-04-082023-09-3014034775core:Goodwill2022-04-082023-09-3014034775core:PlantMachinery2022-04-082023-09-3014034775core:MotorVehicles2022-04-082023-09-3014034775core:UKTaxbus:Consolidated2022-04-082023-09-3014034775core:Goodwillbus:Consolidated2022-04-0714034775core:Goodwillbus:Consolidated2022-04-082023-09-3014034775core:PlantMachinerybus:Consolidated2022-04-0714034775core:MotorVehiclesbus:Consolidated2022-04-0714034775bus:Consolidated2022-04-0714034775core:PlantMachinerybus:Consolidated2022-04-082023-09-3014034775core:MotorVehiclesbus:Consolidated2022-04-082023-09-3014034775core:CurrentFinancialInstrumentsbus:Consolidated2023-09-3014034775core:CurrentFinancialInstruments2023-09-3014034775core:WithinOneYearbus:Consolidated2023-09-3014034775core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-3014034775core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-09-3014034775core:Non-currentFinancialInstrumentscore:AfterOneYear2023-09-3014034775core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-09-3014034775bus:PrivateLimitedCompanyLtd2022-04-082023-09-3014034775bus:FRS1022022-04-082023-09-3014034775bus:Audited2022-04-082023-09-3014034775bus:ConsolidatedGroupCompanyAccounts2022-04-082023-09-3014034775bus:FullAccounts2022-04-082023-09-30xbrli:purexbrli:sharesiso4217:GBP