Company registration number 05704087 (England and Wales)
A C ELECTRICAL (NORTH) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
A C ELECTRICAL (NORTH) LIMITED
COMPANY INFORMATION
Directors
A C Knowles
D Crook
(Appointed 28 March 2024)
A Church
(Appointed 28 March 2024)
D Walsh
(Appointed 28 March 2024)
Company number
05704087
Registered office
Riverside Works
Bridge Street
Dukinfield
SK16 4RX
Auditor
Alexander & Co LLP
Centurion House
129 Deansgate
Manchester
M3 3WR
A C ELECTRICAL (NORTH) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 32
A C ELECTRICAL (NORTH) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Review of the business

We are specialised electrical and building contractors, offering a range of services from contract management, execution to handover.

 

Considering the market uncertainties stemming from the aftermath of Covid, and inflationary effects caused partly by the war in Ukraine, and the UK’s exit from Europe, we have managed to maintain consistent revenue in line with our yearly budgeted target. This achievement can be attributed to our comprehensive risk profiling and credit management practices, which focus on financially strong companies/organisations. Additionally, our excellent client retention rate among such organisations has played a significant role in sustaining our revenue.

 

Client retention rates remain acceptably high at around 90% (90% in 2023), and we have been achieving our budgeted margin range. We continue to meet targets, and we are expanding our customer base. So far, we have not observed any significant reduction in investment that would impact our client base. Furthermore, our public sector contracts have remained stable, as government spending has been allocated accordingly. However, it is important to note that the situation remains volatile, and we are already witnessing positive outcomes from our investment in tendering, with an increase in returned quotes and confirmed contract wards for January 2025 and beyond.

Principal risks and uncertainties

The construction industry inherently carries several risks. Although is it impossible to eliminate all construction risks, AC have implemented robust risk management and internal control systems to manage and mitigate these risks. The directors also acknowledge that construction works can be potentially hazardous and complex necessitating ongoing management and monitoring of health, safety, and environmental risk. To address these concerns, the company retains a full-time Health & Safety manager supported by external consultants. We also maintain an active training program to enhance competences across all staff members.

Plans for the future

As we embark on the new trading period commencing in April 2024, we are confident in our ability to build upon our current success and drive our company forward. In the past twelve months, we have achieved significant growth in turnover, and we are committed to sustaining and replicating these gains in the foreseeable future. However, our primary objective remains focused on ensuring year-on-year profitability.

 

Fleet modernisation:

We have strategic plans to modernize our vehicle fleet, a move aimed at enhancing operational efficiency. This investment will not only improve our transportation capabilities but also reduce our environmental footprint through the adoption of more eco-friendly technologies.

 

Sustainability Initiatives:

In line with our commitment environmental responsibility, we will actively explore and implement sustainable practices throughout our operations. These include initiatives to reduce waste lower energy consumption and increase the use of renewable resources in our processes.

 

Market expansion:

We aim to expand our market presence and reach new customers and regions. The expansion strategy will involve market research, partnerships, and potentially exploring new product lines or services to meet evolving market demands.

 

Talent development:

Our human capital is a key asset. We will continue to invest in the professional growth and development of our employees and apprentices fostering a culture of innovation and excellence that will drive our company’s success.

 

A C ELECTRICAL (NORTH) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

Customer-centric Approach:

To maintain and enhance customer satisfaction we will place a strong emphasis on a customer-centric approach. This includes improve customer services personalised offering and proactive communication.

 

Finance Stability:

We will maintain a robust finance strategy that ensures stability and resilience even in challenging economic conditions. This includes prudent finance management risk investment and diversification of revenue streams.

 

Health and Safety:

The well-being of our employees and stake is paramount. We are committed to maintaining a safe and healthy work environment by implementing stringent health safety protocols. This includes regular safety training, hazard identification, and compliance with all relevant regulations. Our goal to minimise workplace accidents and promote a culture of safety through our organisation. We have recently acquired ISO45001.

 

In summary, as we look ahead, our company remains committed to growth, sustainability, and excellence. We are determined to modernise our operations, increase our production capabilities, and adapt to changing market dynamics. By prioritising profitability, sustainability, and customer satisfaction. We are confident in our ability to achieve our long-term goals.

Key performance indicators

The directors monitor the performance of the company through the use of standard industry key performance indicators to review performance on a contract and company level basis compared to expectations as well as year or year comparison.

 

The turnover of the company was £13.7m (2023 - £13.1m restated). Despite growth in turnover, profit margins have decreased, with the gross profit margin falling from 28.4% in 2023 to 21.9% in the reporting year. Profit before tax of the group was 14.4% of turnover in 2023, falling to 6.7% in 2024 (company: 6.3% versus 14.9% in 2023). Margins reported are still within the expected range set for the business. The directors anticipate that the year 24 – 25 will see an increase in turnover and an increase in profits.

Payment policy

While the company does not adhere to specific payment code, it is our company policy to make payments in accordance with the terms and conditions agreed upon between the company and its suppliers.

On behalf of the board

A C Knowles
Director
15 October 2024
A C ELECTRICAL (NORTH) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Principal activities

The principal activity of the company and group continued to be that of electrical contractors.

Results and dividends

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

Ordinary dividends were paid amounting to £193,000. The directors do not recommend payment of a further dividend.

Directors

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

A C Knowles
D Crook
(Appointed 28 March 2024)
A Church
(Appointed 28 March 2024)
D Walsh
(Appointed 28 March 2024)
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 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.

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.

A C ELECTRICAL (NORTH) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
On behalf of the board
A C Knowles
Director
15 October 2024
A C ELECTRICAL (NORTH) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF A C ELECTRICAL (NORTH) LIMITED
- 5 -
Opinion

We have audited the financial statements of A C Electrical (North) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 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 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:

A C ELECTRICAL (NORTH) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A C ELECTRICAL (NORTH) LIMITED
- 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.

Capability of the audit in detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company, we identified that the principal risks of non-compliance with laws and regulations related to breaches of the legal and regulatory framework that the company operates in. We considered the extent to which non-compliance might have a material effect on the financial statements. The key laws and regulations we considered in this context included UK Companies Act 2006, employment law, health and safety and tax legislation.

We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to the posting of inappropriate journal entries to manipulate financial results and potential management bias in accounting estimates.

A C ELECTRICAL (NORTH) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A C ELECTRICAL (NORTH) LIMITED
- 7 -

As a result of the above, our audit procedures performed included:

There are inherent limitations in the audit procedures described above. The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK).

We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors of A C Electrical (North) Ltd.

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.

Other matters which we are required to address

In the previous accounting period the directors of the company took advantage of the exemption from audit under section 477 of the Companies Act 2006, relating to small companies. Therefore the prior period financial statements were not subject to audit.

 

Our audit work gives us comfort that the opening balances do not contain misstatements that materially affect the current period's financial statements.

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.

A C ELECTRICAL (NORTH) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF A C ELECTRICAL (NORTH) LIMITED
- 8 -
Emma Ball (Senior Statutory Auditor)
For and on behalf of Alexander & Co LLP
15 October 2024
Chartered Accountants
Statutory Auditor
Centurion House
129 Deansgate
Manchester
M3 3WR
A C ELECTRICAL (NORTH) LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
as restated
Notes
£
£
Turnover
3
13,651,917
13,120,150
Cost of sales
(10,656,330)
(9,393,390)
Gross profit
2,995,587
3,726,760
Administrative expenses
(2,155,824)
(1,893,137)
Other operating income
2,088
6,720
Operating profit
4
841,851
1,840,343
Interest receivable and similar income
8
68,723
27,553
Interest payable and similar expenses
9
-
0
27,755
Profit before taxation
910,574
1,895,651
Tax on profit
10
(257,953)
(351,823)
Profit for the financial year
652,621
1,543,828
Profit for the financial year is all attributable to the owners of the parent company.
A C ELECTRICAL (NORTH) LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
as restated
£
£
Profit for the year
652,621
1,543,828
Other comprehensive income
-
-
Total comprehensive income for the year
652,621
1,543,828
Total comprehensive income for the year is all attributable to the owners of the parent company.
A C ELECTRICAL (NORTH) LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 11 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
12
5,900
17,202
Tangible assets
13
472,563
564,407
478,463
581,609
Current assets
Stocks
16
-
6,567
Debtors falling due after more than one year
17
543,497
607,512
Debtors falling due within one year
17
3,846,588
2,186,098
Cash at bank and in hand
1,773,795
1,584,658
6,163,880
4,384,835
Creditors: amounts falling due within one year
18
(2,760,346)
(1,538,047)
Net current assets
3,403,534
2,846,788
Total assets less current liabilities
3,881,997
3,428,397
Provisions for liabilities
Deferred tax liability
19
71,343
77,364
(71,343)
(77,364)
Net assets
3,810,654
3,351,033
Capital and reserves
Called up share capital
21
10
10
Profit and loss reserves
3,810,644
3,351,023
Total equity
3,810,654
3,351,033

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 15 October 2024 and are signed on its behalf by:
15 October 2024
A C Knowles
Director
Company registration number 05704087 (England and Wales)
A C ELECTRICAL (NORTH) LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
12
5,900
8,850
Tangible assets
13
244,773
232,992
Investments
14
29,721
29,721
280,394
271,563
Current assets
Stocks
16
-
6,567
Debtors falling due after more than one year
17
543,497
607,512
Debtors falling due within one year
17
3,938,950
2,462,679
Cash at bank and in hand
1,758,269
1,559,296
6,240,716
4,636,054
Creditors: amounts falling due within one year
18
(2,706,125)
(1,538,047)
Net current assets
3,534,591
3,098,007
Total assets less current liabilities
3,814,985
3,369,570
Provisions for liabilities
Deferred tax liability
19
14,395
14,395
(14,395)
(14,395)
Net assets
3,800,590
3,355,175
Capital and reserves
Called up share capital
21
10
10
Profit and loss reserves
3,800,580
3,355,165
Total equity
3,800,590
3,355,175

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 year was £638,415 (2023 - £1,656,516 profit).

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 15 October 2024 and are signed on its behalf by:
15 October 2024
A C Knowles
Director
Company registration number 05704087 (England and Wales)
A C ELECTRICAL (NORTH) LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
10
1,994,045
1,994,055
Year ended 31 March 2023:
Profit and total comprehensive income
-
1,543,828
1,543,828
Dividends
11
-
(186,850)
(186,850)
Balance at 31 March 2023
10
3,351,023
3,351,033
Year ended 31 March 2024:
Profit and total comprehensive income
-
652,621
652,621
Dividends
11
-
(193,000)
(193,000)
Balance at 31 March 2024
10
3,810,644
3,810,654
A C ELECTRICAL (NORTH) LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
10
1,885,499
1,885,509
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
1,656,516
1,656,516
Dividends
11
-
(186,850)
(186,850)
Balance at 31 March 2023
10
3,355,165
3,355,175
Year ended 31 March 2024:
Profit and total comprehensive income
-
638,415
638,415
Dividends
11
-
(193,000)
(193,000)
Balance at 31 March 2024
10
3,800,580
3,800,590
A C ELECTRICAL (NORTH) LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
2024
2023
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from/(absorbed by) operations
23
760,488
(190,867)
Interest paid
-
0
27,755
Income taxes paid
(475,000)
(220,478)
Net cash inflow/(outflow) from operating activities
285,488
(383,590)
Investing activities
Purchase of tangible fixed assets
(59,963)
(523,014)
Proceeds from disposal of tangible fixed assets
21,749
15,800
Repayment of loans
66,140
-
Interest received
68,723
27,553
Net cash generated from/(used in) investing activities
96,649
(479,661)
Financing activities
Dividends paid to equity shareholders
(193,000)
(186,850)
Net cash used in financing activities
(193,000)
(186,850)
Net increase/(decrease) in cash and cash equivalents
189,137
(1,050,101)
Cash and cash equivalents at beginning of year
1,584,658
2,634,759
Cash and cash equivalents at end of year
1,773,795
1,584,658
A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
1
Accounting policies
Company information

A C Electrical (North) Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Riverside Works, Bridge Street, Dukinfield, SK16 4RX.

 

The group consists of A C Electrical (North) Limited and all of its subsidiaries.

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.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Prior period error

The comparative figures at 31 March 2023 have been restated due to the audit of the opening balances. As a result, the profit after tax as shown in the profit and loss account for the year ended 31 March 2023 has increased by £145,563, and the net assets of the company as at that date increased accordingly.

A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
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 A C Electrical (North) Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 31 March 2024. 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.

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

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 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.

Contract revenue is recognised according to stage of completion of each project. Stage of completion is determined by reference to proportion of costs incurred to budget, amounts billed in advance/arrears are recognised in deferred/accrued income.

A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
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 5-20 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.

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:

Freehold land and buildings
10% Straight line
Plant and equipment
25% Straight line
Fixtures and fittings
25% Straight line
Computers
33% Straight line
Motor vehicles
25% Straight line

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

A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -

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.

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.

A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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
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.

1.13
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.

A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -
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.

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.

A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
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.

1.15
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.

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.

1.16
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.

1.17
Retirement benefits

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

1.18
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 leased asset are consumed.

A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 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.

Inatngible assets

Intangible fixed assets are amortised over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. Residual value assessments consider issues such as future market conditions and the remaining life of the asset.

3
Turnover and other revenue
2024
2023    restated
£
£
Turnover analysed by class of business
Electrical contracting
13,651,917
13,120,150
2024
2023
£
£
Other revenue
Interest income
68,723
27,553
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Fees payable to the group's auditor for the audit of the group's financial statements
24,000
-
Depreciation of owned tangible fixed assets
151,807
86,302
Profit on disposal of tangible fixed assets
(21,749)
(15,800)
Amortisation of intangible assets
11,302
11,301
Operating lease charges
157,548
163,485
A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
19,000
-
Audit of the financial statements of the company's subsidiaries
5,000
-
24,000
-
6
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
5
3
4
2
Administration
14
14
15
15
Labour
47
45
47
45
Total
66
62
66
62

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,476,015
2,363,337
2,476,015
2,363,337
Social security costs
245,465
231,343
245,465
231,343
Pension costs
239,623
306,036
239,623
306,036
2,961,103
2,900,716
2,961,103
2,900,716
7
Directors' remuneration
2024
2023
£
£
Company pension contributions to defined contribution schemes
105,000
40,000

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 1).

 

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
51,851
12,000
Other interest income
16,872
15,553
Total income
68,723
27,553
9
Interest payable and similar expenses
2024
2023
£
£
Other interest
-
(27,755)
10
Taxation
2024
2023     restated
£
£
Current tax
UK corporation tax on profits for the current period
263,974
290,484
Adjustments in respect of prior periods
-
0
(1,746)
Total current tax
263,974
288,738
Deferred tax
Origination and reversal of timing differences
(6,021)
63,085
Total tax charge
257,953
351,823

The corporation tax rate increased from 19% to 25% from 1 April 2023.

A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
10
Taxation
(Continued)
- 26 -

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
910,574
1,895,651
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
227,644
360,174
Tax effect of expenses that are not deductible in determining taxable profit
8,735
8,705
Adjustments in respect of prior years
-
0
(1,746)
Effect of change in corporation tax rate
19,885
2,368
Permanent capital allowances in excess of depreciation
-
(24,304)
Depreciation on assets not qualifying for tax allowances
2,579
1,535
Amortisation on assets not qualifying for tax allowances
-
0
561
Deferred tax adjustments in respect of prior years
-
0
4,530
Unrecognised deferred tax
(890)
-
0
Taxation charge
257,953
351,823
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
193,000
186,850
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
100,756
Amortisation and impairment
At 1 April 2023
83,554
Amortisation charged for the year
11,302
At 31 March 2024
94,856
Carrying amount
At 31 March 2024
5,900
At 31 March 2023
17,202
A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Intangible fixed assets
(Continued)
- 27 -
Company
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
59,000
Amortisation and impairment
At 1 April 2023
50,150
Amortisation charged for the year
2,950
At 31 March 2024
53,100
Carrying amount
At 31 March 2024
5,900
At 31 March 2023
8,850

The goodwill relates to the company's incorporation and is being amortised over the directors' estimate of its useful economic life of 20 years. The goodwill has a carrying value of £5,900 (2023: £8,850) and has a remaining amortisation period of 2 years.

The goodwill in the group relates to the goodwill as discussed above, in addition to goodwill generated on consolidation from elimination of investment in subsidiary. The goodwill generated on consolidation is being amortised over the directors' estimate of it's useful life of 5 years. The goodwill on consolidation has a carrying value of £0 (2023: £8,351). The remaining amortisation period is 0 years.

A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 28 -
13
Tangible fixed assets
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
260,448
11,227
68,598
30,215
610,776
981,264
Additions
30,703
-
0
-
0
5,940
23,320
59,963
Disposals
-
0
-
0
(29,853)
(13,675)
(125,933)
(169,461)
At 31 March 2024
291,151
11,227
38,745
22,480
508,163
871,766
Depreciation and impairment
At 1 April 2023
70,438
11,227
38,961
16,870
279,361
416,857
Depreciation charged in the year
30,571
-
0
9,687
6,952
104,597
151,807
Eliminated in respect of disposals
-
0
-
0
(29,853)
(13,675)
(125,933)
(169,461)
At 31 March 2024
101,009
11,227
18,795
10,147
258,025
399,203
Carrying amount
At 31 March 2024
190,142
-
0
19,950
12,333
250,138
472,563
At 31 March 2023
190,010
-
0
29,637
13,345
331,415
564,407
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 April 2023
260,448
11,227
68,598
30,215
-
0
370,488
Additions
30,703
-
0
-
0
5,940
23,320
59,963
Disposals
-
0
-
0
(29,853)
(13,675)
-
0
(43,528)
At 31 March 2024
291,151
11,227
38,745
22,480
23,320
386,923
Depreciation and impairment
At 1 April 2023
70,438
11,227
38,961
16,870
-
0
137,496
Depreciation charged in the year
30,571
-
0
9,687
6,952
972
48,182
Eliminated in respect of disposals
-
0
-
0
(29,853)
(13,675)
-
0
(43,528)
At 31 March 2024
101,009
11,227
18,795
10,147
972
142,150
Carrying amount
At 31 March 2024
190,142
-
0
19,950
12,333
22,348
244,773
At 31 March 2023
190,010
-
0
29,637
13,345
-
0
232,992
A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 29 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
29,721
29,721
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023 and 31 March 2024
29,721
Carrying amount
At 31 March 2024
29,721
At 31 March 2023
29,721
15
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
M W Hire Ltd
Riverside Works, Dukinfield, England, SK16 4RX
Business support services
Ordinary shares
100.00
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
-
6,567
-
6,567
A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
17
Debtors
Group
Company
2024
2023    restated
2024
2023    restated
Amounts falling due within one year:
£
£
£
£
Trade debtors
3,442,833
1,787,203
3,442,833
1,787,203
Amounts owed by group undertakings
-
-
92,362
337,475
Other debtors
322,119
216,399
322,119
183,005
Prepayments and accrued income
81,636
182,496
81,636
154,996
3,846,588
2,186,098
3,938,950
2,462,679
Amounts falling due after more than one year:
Amounts owed by undertakings in which the company has a participating interest
543,497
607,512
543,497
607,512
Total debtors
4,390,085
2,793,610
4,482,447
3,070,191
18
Creditors: amounts falling due within one year
Group
Company
2024
2023    restated
2024
2023    restated
£
£
£
£
Trade creditors
1,346,577
672,353
1,346,577
672,353
Corporation tax payable
77,738
288,764
37,684
288,764
Other taxation and social security
273,679
62,675
264,512
62,675
Other creditors
316,066
125,603
316,066
125,603
Accruals and deferred income
746,286
388,652
741,286
388,652
2,760,346
1,538,047
2,706,125
1,538,047
19
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
71,343
77,364
A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
19
Deferred taxation
(Continued)
- 31 -
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
14,395
14,395
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 April 2023
77,364
14,395
Credit to profit or loss
(6,021)
-
Liability at 31 March 2024
71,343
14,395
20
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
239,623
306,036

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.

21
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
8
8
9
9
Ordinary A shares of £1 each
1
1
1
1
Ordinary B shares of £1 each
1
1
-
-
10
10
10
10

All shares have equal voting rights.

A C ELECTRICAL (NORTH) LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
22
Operating lease commitments
Lessee

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
2024
2023
2024
2023
£
£
£
£
Within one year
140,334
140,468
140,334
140,468
Between two and five years
270,260
411,330
270,260
411,330
410,594
551,798
410,594
551,798
23
Cash generated from/(absorbed by) group operations
2024
2023   restated
£
£
Profit for the year after tax
652,621
1,543,828
Adjustments for:
Taxation charged
257,953
351,823
Finance costs
-
0
(27,755)
Investment income
(68,723)
(27,553)
Gain on disposal of tangible fixed assets
(21,749)
(15,800)
Amortisation and impairment of intangible assets
11,302
11,301
Depreciation and impairment of tangible fixed assets
151,807
86,302
Movements in working capital:
Decrease in stocks
6,567
10,085
Increase in debtors
(1,662,615)
(877,139)
Increase/(decrease) in creditors
1,433,325
(1,245,959)
Cash generated from/(absorbed by) operations
760,488
(190,867)
24
Analysis of changes in net funds - group
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,584,658
189,137
1,773,795
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