JPR Mechanical And Electrical Services Limited
Annual report and financial statements
For the year ended 31 January 2024
JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Company information
Directors
Mr J Moran
Mrs S Moran
Company number
01087200
Registered office
North Street
Stoke on Trent
Staffordshire
ST4 7SA
Auditor
DJH Audit Limited
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
JPR Mechanical And Electrical Services Limited
Contents
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25
JPR Mechanical And Electrical Services Limited
Strategic report
For the year ended 31 January 2024
- 1 -

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

Review of the business

The Directors are pleased to report that the company generated an increase in turnover from £17,752,295 to £18,828,975 with subsequent after-tax profit levels of £1,305,246 for the 31st January 2024 year end.

 

The company enters a new financial year with a positive outlook and strong order book for the foreseeable future.

 

Raw material costs have stabilized, which has positively affected operating profit margins. There were no struggles with buying the appropriate materials and materials were delivered on time.

 

During the year, the company implemented internal infrastructure and recruitment measures in order to put it in a good shape for the year ahead. Senior management in the security department was transformed, which has resulted in a profit-making department as opposed to a loss-making in previous years.

 

Prompt payments were made to suppliers and HMRC.

 

The company maintains its commitment and implementation to apprentice training which is considered essential to future growth and prosperity.

Principal risks and uncertainties

Operating in the construction sector the company is exposed to protracted payment terms with customers and working capital management issues. The safety of the company's employees whilst on-site is a particular concern too.

 

The management of the company offset these risks by having strict credit terms with new customers and by developing strong relationships with customers to ensure contract terms are adhered to and problems are headed-off before they become significant. The health and safety of the workforce at construction sites is paramount to the company and our operational risk manager assesses all risks which the workforce may be exposed to before and during our onsite work.

 

Due to global economic conditions resulting in uncertainty in copper costs and fuel prices, the Directors will strive to ensure that these are closely monitored.

JPR Mechanical And Electrical Services Limited
Strategic report (continued)
For the year ended 31 January 2024
- 2 -
Key performance indicators

The directors assess the financial performance of the company by reviewing key financial benchmarks, namely, gross profit percentage, the level of net current assets and net cash.

 

Gross profit percentage is the measure of gross profit compared with turnover as a percentage and measures the company's ability to maintain a healthy contract price of services provided against managing costs of providing these services.

 

            2024        2023

Gross profit %        24.65%        14.43%

 

Net current assets is the measure of working capital in the business and demonstrates the company's ability to settle short-term debts and obligations as and when they fall due.

 

            2024        2023

Net current assets    £2,798,356    £1,980,885

 

Net cash is the total amount of cash held in the business less the amount of any structured debt. This measure shows the cash in the business in excess of any debt finance.

 

            2024        2023

Net cash        £1,254,510    £352,975

 

Financial statement risks

The financial instrument risks affecting the company relate to cashflow risk, credit risk and liquidity risk.

 

Cashflow risk is the risk that sufficient levels of cash do not flow into the business to allow working capital requirements to be met in a timely manner. The management of the timing of cash inflows and cash outflows is achieved with the close involvement of management with customer and supplier relationships. Management also reviews financial information on a regular basis to determine whether further measures are needed to ensure sufficient cash inflows to the business.

 

Credit risk is the risk that the company will not receive full settlement on amounts due from customers. This risk is managed through continually monitored credit procedures including having regular dialogue with customers during the conduct of the business.

 

Liquidity risk is the risk that the company will not have sufficient funds to carry out its short and longer- term objectives. Historically, the company has managed its funding requirements through the retention of cash arising from its operating activities without the need to raise cash through debt finance.

Future developments

The company has a strong order book for the current trading year. However the Directors are conscious of global economic certainties in particular fuel and energy prices and the effects that these will have on the UK economy.

JPR Mechanical And Electrical Services Limited
Strategic report (continued)
For the year ended 31 January 2024
- 3 -

On behalf of the board

Mr J Moran
Director
3 October 2024
JPR Mechanical And Electrical Services Limited
Directors' report
For the year ended 31 January 2024
- 4 -

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

Principal activities

The principal activity of the company continued to be that of mechanical, electrical, data services, CCTV and security and maintenance engineers.

Results and dividends

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

Ordinary dividends were paid amounting to £324,827 (2023 - £306,000). The directors do not recommend payment of a final dividend.

Directors

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

Mr J Moran
Mrs S Moran
Statement of directors' responsibilities

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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report.

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.

JPR Mechanical And Electrical Services Limited
Directors' report (continued)
For the year ended 31 January 2024
- 5 -
Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
Mr J Moran
Director
3 October 2024
JPR Mechanical And Electrical Services Limited
Independent auditor's report
To the members of JPR Mechanical and Electrical Services Limited
- 6 -
Opinion

We have audited the financial statements of JPR Mechanical and Electrical Services Limited (the 'company') for the year ended 31 January 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity 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.

JPR Mechanical And Electrical Services Limited
Independent auditor's report (continued)
To the members of JPR Mechanical and Electrical Services Limited
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

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

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.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities,

including fraud and non-compliance with laws and regulations, was as follows:

 

JPR Mechanical And Electrical Services Limited
Independent auditor's report (continued)
To the members of JPR Mechanical and Electrical Services Limited
- 8 -

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

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

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

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

 

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Stacey Parr FCCA
Senior Statutory Auditor
For and on behalf of DJH Audit Limited
3 October 2024
Accountants
Statutory Auditor
The Glades
Festival Way
Festival Park
Stoke-on-Trent
Staffordshire
ST1 5SQ
JPR Mechanical And Electrical Services Limited
Statement of comprehensive income
For the year ended 31 January 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
18,828,975
17,752,295
Cost of sales
(14,186,794)
(15,191,147)
Gross profit
4,642,181
2,561,148
Administrative expenses
(2,812,299)
(2,220,477)
Other operating income
3,000
-
0
Operating profit
4
1,832,882
340,671
Interest receivable and similar income
56
-
0
Interest payable and similar expenses
7
(15,438)
(17,520)
Profit before taxation
1,817,500
323,151
Tax on profit
8
(512,254)
(62,952)
Profit for the financial year
1,305,246
260,199
JPR Mechanical And Electrical Services Limited
Statement of financial position
As at 31 January 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
42,817
42,984
Tangible assets
11
191,019
139,654
233,836
182,638
Current assets
Stocks
12
6,000
6,000
Debtors
13
4,758,225
3,805,430
Cash at bank and in hand
1,254,510
693,555
6,018,735
4,504,985
Creditors: amounts falling due within one year
14
(3,220,379)
(2,524,100)
Net current assets
2,798,356
1,980,885
Total assets less current liabilities
3,032,192
2,163,523
Creditors: amounts falling due after more than one year
15
-
0
(136,232)
Provisions for liabilities
Deferred tax liability
17
58,459
33,977
(58,459)
(33,977)
Net assets
2,973,733
1,993,314
Capital and reserves
Called up share capital
19
255
255
Capital redemption reserve
20
510
510
Profit and loss reserves
21
2,972,968
1,992,549
Total equity
2,973,733
1,993,314

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 3 October 2024 and are signed on its behalf by:
Mr J Moran
Director
Company registration number 01087200 (England and Wales)
JPR Mechanical And Electrical Services Limited
Statement of changes in equity
For the year ended 31 January 2024
- 11 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 February 2022
255
510
2,038,350
2,039,115
Year ended 31 January 2023:
Profit and total comprehensive income
-
-
260,199
260,199
Dividends
9
-
-
(306,000)
(306,000)
Balance at 31 January 2023
255
510
1,992,549
1,993,314
Year ended 31 January 2024:
Profit and total comprehensive income
-
-
1,305,246
1,305,246
Dividends
9
-
-
(324,827)
(324,827)
Balance at 31 January 2024
255
510
2,972,968
2,973,733
JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements
For the year ended 31 January 2024
- 12 -
1
Accounting policies
Company information

JPR Mechanical and Electrical Services Limited is a private company limited by shares incorporated in England and Wales. The registered office is North Street, Stoke on Trent, Staffordshire, ST4 7SA.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention, the principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of JPR Group Holdings Limited. These consolidated financial statements are available from its registered office, North Street, Stoke-on-Trent, Staffordshire, ST4 7SA.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with group entities where the relationship is one of being wholly owned.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

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

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on despatch 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.

JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 13 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.

 

Where the outcome of a long-term contract can be estimated reliably, revenue 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. Amounts recoverable are included in debtors and are valued, inclusive of profit, at work executed at contract price plus variances.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately. Any work invoiced in advance of the work being complete s recorded in creditors.

 

Where the outcome of a long-term 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 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.

 

Contracts are valued based on managements judgment and the profit margin each individual contract is expected to attain.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

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

Software
20% straight line
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 of assets less their residual values over their useful lives on the following bases:

Plant and equipment
33% straight line
Fixtures and fittings
20% reducing balance
Computers
33% 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 credited or charged to profit or loss.

JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 14 -
1.6
Impairment of fixed assets

At each reporting period end date, the company 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).

Recoverable amount is the higher of fair value less costs to sell and value in use.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

1.7
Stocks

Stocks are stated at the lower of cost and net realisable value (estimated selling price less costs to complete and sell). Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and at bank.

1.9
Financial instruments

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

 

Financial instruments are recognised in the company's statement of financial position 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.

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.

JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 15 -
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.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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.

JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

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

1.10
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.

1.11
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 income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Employee benefits

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

 

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

 

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.

1.13
Retirement benefits

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

1.14
Leases

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.

JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
1
Accounting policies
(Continued)
- 17 -
1.15
Government grants

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

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.

Valuation of contracts

Management review each construction contract ongoing at the year end in order to obtain an accurate valuation of the work completed to date and therefore any profits or losses on contract to recognise. Management recognise profits on contracts once the outcome can be measured with reasonable certainty. Management will review the level of work completed and the costs incurred on each individual contract at the year end and estimate the profit margin that the company expects to make on each contract. The contract valuation will be adjusted based on this, with any increases in valuations of contracts being recorded in debtors and any reductions in valuations of contracts being recorded in creditors. Any anticipated future losses are provided for in full. Uncertainties in the valuation of individual contracts relate to the actual value of work to be completed on the contracts and therefore the actual profit expected to be made each contract.

Critical judgements in applying the Company's accounting policies

 

In the directors' opinion there are no critical judgements that they have made in applying the company's accounting policies and that have had a significant effect on the amounts recognised in the financial statements.

JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 18 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Mechanical and electrical engineering work
18,828,975
17,752,295
2024
2023
£
£
Other revenue
Interest income
56
-
Grants received
3,000
-
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(3,000)
-
Fees payable to the company's auditor for the audit of the company's financial statements
15,000
18,770
Depreciation of owned tangible fixed assets
66,103
53,074
Profit on disposal of tangible fixed assets
(8,833)
(6,178)
Amortisation of intangible assets
13,391
10,746
Operating lease charges
95,130
288,412
5
Employees

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

2024
2023
Number
Number
Operatives
92
86
Management
29
28
Directors
2
2
Total
123
116
JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
5
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,043,933
4,767,818
Social security costs
463,497
450,472
Pension costs
227,281
140,367
5,734,711
5,358,657
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
27,816
22,793
Company pension contributions to defined contribution schemes
103,000
24,000
130,816
46,793

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
6,768
17,520
Other interest
8,670
-
0
15,438
17,520
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
423,978
51,793
Adjustments in respect of prior periods
63,794
-
0
Total current tax
487,772
51,793
Deferred tax
Origination and reversal of timing differences
24,482
11,159
Total tax charge
512,254
62,952
JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
8
Taxation
(Continued)
- 20 -

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
1,817,500
323,151
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
454,375
61,399
Tax effect of expenses that are not deductible in determining taxable profit
1,058
1,858
Effect of change in corporation tax rate
(5,429)
-
0
Under/(over) provided in prior years
63,794
-
0
Capital allowances in excess of depreciation
-
0
(11,464)
Movement in deferred taxation provision
-
0
11,159
Deferred tax adjustments in respect of current years
(1,544)
-
0
Taxation charge for the year
512,254
62,952
9
Dividends
2024
2023
£
£
Interim paid
324,827
306,000
JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 21 -
10
Intangible fixed assets
Software
£
Cost
At 1 February 2023
53,730
Additions
13,224
At 31 January 2024
66,954
Amortisation and impairment
At 1 February 2023
10,746
Amortisation charged for the year
13,391
At 31 January 2024
24,137
Carrying amount
At 31 January 2024
42,817
At 31 January 2023
42,984
11
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2023
220,787
46,774
53,712
475,439
796,712
Additions
-
0
-
0
-
0
123,710
123,710
Disposals
-
0
-
0
-
0
(53,919)
(53,919)
At 31 January 2024
220,787
46,774
53,712
545,230
866,503
Depreciation and impairment
At 1 February 2023
213,475
27,969
53,712
361,902
657,058
Depreciation charged in the year
5,012
4,143
-
0
56,948
66,103
Eliminated in respect of disposals
-
0
-
0
-
0
(47,677)
(47,677)
At 31 January 2024
218,487
32,112
53,712
371,173
675,484
Carrying amount
At 31 January 2024
2,300
14,662
-
0
174,057
191,019
At 31 January 2023
7,312
18,805
-
0
113,537
139,654
JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 22 -
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
6,000
6,000
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,765,531
2,488,410
Gross amounts owed by contract customers
1,410,852
1,172,030
Other debtors
97,981
81,987
Prepayments and accrued income
306,929
63,003
4,581,293
3,805,430
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
176,932
-
0
Total debtors
4,758,225
3,805,430

Trade Debtors includes retentions of £630,436 (2023: £591,460)

14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
-
0
204,348
Trade creditors
1,321,071
1,071,157
Amounts owed to group undertakings
250,326
275,499
Corporation tax
423,978
51,793
Other taxation and social security
131,254
230,763
Other creditors
71,781
57,260
Accruals and deferred income
1,021,969
633,280
3,220,379
2,524,100
JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 23 -
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
16
-
0
136,232
16
Loans and overdrafts
2024
2023
£
£
Bank loans
-
0
340,580
Payable within one year
-
0
204,348
Payable after one year
-
0
136,232

The bank loans were secured by fixed and floating charges over the assets of the company and its parent JPR Group Holdings Limited.

17
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
58,459
34,701
Other timing differences
-
(724)
58,459
33,977
2024
Movements in the year:
£
Liability at 1 February 2023
33,977
Charge to profit or loss
24,482
Liability at 31 January 2024
58,459

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 24 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
227,281
140,367

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

 

At the period end the creditor liability was £25 (2023 - £3,809).

19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary C of £1 each
153
153
153
153
Ordinary D of £1 each
102
102
102
102
255
255
255
255

Each ordinary share has full voting rights, full dividend rights and the right to participate in distributions on winding up.

20
Capital redemption reserve

Capital redemption reserve is made up of the share capital that has been repurchased by the company.

21
Profit and loss reserves

Profit and loss reserves are made up of accumulated profits less accumulated losses and distributions to shareholders.

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
69,820
71,423
Between two and five years
50,966
-
0
120,786
71,423
JPR Mechanical and Electrical Services Limited
JPR Mechanical And Electrical Services Limited
Notes to the financial statements (continued)
For the year ended 31 January 2024
- 25 -
23
Related party transactions
Transactions with related parties

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

Pension scheme

During the year, the company paid rent of £60,500 (2023 - £38,759) to a pension scheme under common control.

24
Ultimate controlling party

The parent company is JPR Group Holdings Limited which owns 100% of the ordinary share capital. JPR Group Holdings Limited is incorporated in England. Copies of the group accounts of JPR Group Holdings Limited are available from JPR Group Holdings Limited, North Street, Stoke on Trent, Staffordshire, United Kingdom, ST4 7SA.

The ultimate controlling party is Mr J Moran who owns a majority shareholding in JPR Group Holdings Limited.

25
Prior period adjustment

A prior period error was noted regarding the classification of amounts recoverable on contracts which were incorrectly classified as trade debtors and prepayments. As such, amounts recoverable on contracts have increased by £1,172,030 and trade debtors and prepayments have decreased by £872,469 and £299,561 respectively. The reclassification has had no impact on profit or net assets.

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