Registered number:
FOR THE YEAR ENDED 31 JANUARY 2024
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
COMPANY INFORMATION
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
CONTENTS
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
The directors present their Strategic Report for the year ended 31 January 2024.
We are pleased to report another excellent trading year, with profit before tax at £3.9m, just below the previous year £4.0m.
The Company considers its key performance indicators to be order intake, turnover, margin and staff levels. After a record year ended 31 January 2023, installation order intake reduced from £35.1m to £28.9m, which compares with £29.0m for year ended 31 January 2022. Trading turnover decreased from £49.9m to £47.7m which compares with £44.3m for year ended 31 January 2022. The Service and Maintenance part of the Company continued to grow from £14.0m turnover (2022) through £15.9m (2023) to £18.8m. Overall trading gross profit margin decreased from 20.6% to 19.9%, compared to 19.2% in 2022. Average staff levels increased from 227 to 243. The Company does not trade outside of the United Kingdom so is not affected by overseas trade arrangements. The Company continues its policy of investing in training in its bespoke City & Guilds accredited Training Centre in King’s Lynn to enhance the quality of front-line staff to meet the needs of a demanding customer base. The Training Centre provides courses for our engineering staff at all levels of experience. The Company continues its policy of investing in vehicles, tools and IT equipment for employees in all parts of the business, from engineers working at client sites to office based staff at our 11 Branches, Head Office, CAD Office and Training Centre. During the year the company’s Directors and the Directors of Overhall Investments Limited (formerly Adcock Group Holdings Limited) entered into discussions with Bowmer and Kirkland Limited, agreed Heads of Terms and went through a due diligence process which concluded in Overhall Investments Limited selling the entire share capital of the Company to Bowmer and Kirkland Limited on 1 March 2024. On that date Mark Townsend and Michelle Mucklestone were appointed as Directors, and Phillip and Sandra Prior resigned as Directors. After 44 years with the Company, the last 10 as Managing Director, Nigel Claydon retired on 31 August 2024. On 1 September 2024 Paul Brant, after 39 years with the company, the last 10 as Deputy Managing Director, was promoted to Managing Director. On the same day, Jonpaul Simpkins was appointed Director.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
Personnel risk
The Company seeks to attract and retain good quality staff through its processes for training, working conditions and total remuneration packages. Health and safety risk The Company takes its responsibilities for health and safety of its staff seriously and has a dedicated SHEQ Manager. The Company maintains appropriate standards by way of training and compliance with legal requirements. Adcock Refrigeration and Air Conditioning Limited is certified to ISO 9001, 14001, 27001 and 45001. Liquidity risk The Company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. The Company had cash at bank and in hand of £3.1m at year end (2023: £3.0m). Credit risk The Company’s principal financial assets are cash and trade debtors, with the main risk arising from its trade debtors. In order to manage credit risk management run credit checks for new and existing customers, require stage payment from customers and request advance payment from customers where required.
Aspire - Seeking continuous improvement, aiming to deliver an outstanding client experience every day.
Dedicated - Delivering on our promises to both colleagues and customers because we are accountable and believe in our values. Courteous - Treat colleagues and customers with respect and undertake all tasks with honesty, transparency and integrity. Openness - Communicating honestly and as openly as possible while actively encouraging and listening to different opinions and perspectives. Caring - Creating a healthy, safe and environmentally aware culture where we care for our colleagues, customers, communities and the environment. Knowledgeable - As a team we will continue to strive to develop each other, our service and our business. “We are a family business and have family values at our core; we respect one another and always treat others as we would like to be treated ourselves. We expect the highest moral and ethical standards from everyone involved with our business.” John Adcock - Founder
This report was approved by the board and signed on its behalf.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JANUARY 2024
The directors present their report and the financial statements for the year ended 31 January 2024.
The directors who served during the year were:
The profit for the year, after taxation, amounted to £2,912,832 (2023 - £3,366,828).
The dividends declared during the year amounted to £1,800,000 (2023 - £2,800,000).
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
The directors are responsible for preparing the Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.
The directors are responsible for the maintenance and integrity of the corporate and financial information included on the Company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
We are committed to energy efficiency across our business and seek to reduce greenhouse gas emissions where possible. Our energy usage occurs within the United Kingdom and is summarised below:
Note: t/CO2e = tonnes of carbon dioxide equivalent Our intensity ratio is tonnes of carbon dioxide equivalent emitted per million pounds of turnover. We have followed the March 2019 Government Environmental Reporting Guidelines when compiling these numbers. We report on an ‘operational control’ basis, meaning our data covers energy use from our own offices and vehicle fleet. We are certified to ISO 14001 and continue to improve our measurement and management processes for emissions and energy consumption. All new company cars are fully electric, with charging points installed at all Group owned trading premises. We have solar panels which generated 58 MWH of green electricity during the year, half of which is exported to the National Grid.
Details of the Company’s financial risk management objectives and policies, including its use of financial instruments and the key risks to which it is exposed are included in the Strategic Report.
On 1 March 2024, the entire share capital of the Company was acquired by Bowmer and Kirkland Limited, who became the ultimate parent undertaking at that date.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JANUARY 2024
Under section 487(2) of the Companies Act 2006, Peters Elworthy & Moore will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
We have audited the financial statements of Adcock Refrigeration and Air Conditioning Limited (the 'Company') for the year ended 31 January 2024, which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' 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.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
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.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED (CONTINUED)
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 Auditors' 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.
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.
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:
∙The engagement partner ensured that the engagement team had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙We identified the laws and regulations applicable to the Company through discussions with the Directors and other management, and from our commercial knowledge and experience of the UK construction services and repairs and maintenance industry;
∙We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company including Financial Reporting Standard 102, the Companies Act 2006 and taxation legislation. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items;
∙We obtained an understanding of the Company's policies and procedures on compliance with laws and regulations, including documentation of any instances of non-compliance;
∙We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting correspondence available;
∙We considered the provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the Company’s ability to operate or to avoid material penalty; and
∙identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.
∙We understood how the Company is complying with those legal and regulatory requirements by making enquiries of management and inspecting correspondence available; and
∙Identified laws and regulations were communicated within the audit team and the team remained alert to instances of non-compliance throughout the audit.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED (CONTINUED)
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud and considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
We discussed among the audit engagement team regarding the opportunities and incentives that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of fraud through management bias and override of controls. In addressing this risk of fraud through management override of controls we:
∙Tested the appropriateness of journal entries to identify unusual transactions;
∙Designed procedures to identify unexpected and unusual journal entries and performed testing to confirm the validity of such postings;
∙Assessed whether judgements and assumptions made in determining the accounting estimates set out in the accounting policy, as disclosed in Note 3, were indicative of potential bias; and
∙Evaluated the business rationale of any significant transactions that were unusual or outside the normal course of business.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙Agreeing financial statement disclosures to underlying supporting documentation;
∙Enquiring of management as to actual and potential litigation and claims; and
∙Reading the minutes of meetings of those charged with governance.
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 from those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants
Statutory Auditors
Salisbury House
Station Road
CB1 2LA
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JANUARY 2024
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
REGISTERED NUMBER: 01307597
BALANCE SHEET
AS AT 31 JANUARY 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 15 to 27 form part of these financial statements.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JANUARY 2024
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
Adcock Refrigeration and Air Conditioning Limited is a private Company limited by shares and registered in England and Wales. Its registered head office is located at High Edge Court, Church Street, Heage, Belper, DE56 2BW. Its principal place of business is located at Units K & L South Cambridgeshire Business Park, Babraham Road, Sawston, Cambridge, CB22 3JH.
2.ACCOUNTING POLICIES
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Overhall Investments Limited (previously known as Adcock Group Holdings Limited) as at 31 January 2024 and these financial statements may be obtained from UK Companies House.
The directors have considered the financial position of the Company and believe it is well placed to manage its business risks successfully. The directors have considered the impact of the current turbulent socio-economic environment and completed a detailed forecast based on different scenarios. At the date of signature of these financial statements, they have a reasonable expectation that the Company has adequate resources to continue operating for a period of at least 12 months from the date of signing these accounts. Thus they continue to adopt the going concern basis of preparation for these financial statements.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
2.ACCOUNTING POLICIES (CONTINUED)
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
2.ACCOUNTING POLICIES (CONTINUED)
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
2.ACCOUNTING POLICIES (CONTINUED)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using both the straight-line method and reducing balance basis.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
2.ACCOUNTING POLICIES (CONTINUED)
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Profit and Loss Account. The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. Amounts recoverable under contracts: The company undertakes a number of long term contracts, the majority of which are undertaken on a fixed price basis. At the end of the reporting period, management make an assessment of the work carried out to date, based on actual costs incurred compared to estimated total costs. Profit is recognised in line with actual costs incurred.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
12.TAXATION (CONTINUED)
The closing deferred tax position has been calculated at 25.00% (2023 - 25.00%) in accordance with the rates enacted at the year end. In the UK Budget Statement on 3 March 2021, the Chancellor annouced the intention for Corporation Tax to rise to a headline rate of 25.00% from 1 April 2023, which was subsequently enacted into law when the Finance Act 2021 was given Royal Assent on 10 June 2021.
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
Capital redemption reserve
Profit and loss account
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ADCOCK REFRIGERATION AND AIR CONDITIONING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JANUARY 2024
The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £928,977 (2023 - £759,365). Contributions totalling £114,853 (2023 - £104,363) were payable to the fund at the reporting date and are included in creditors.
At the year end the immediate and ultimate parent undertaking was Overhall Investments Limited (formerly known as Adcock Group Holdings Limited), a company incorporated in England and Wales, which holds 100% of the Company's issued share capital. The consolidated financial statements of Overhall Investments Limited are available from UK Companies House.
At the year end the ultimate controlling party is the John Adcock Will Trust and the Beryl Adcock Will Trust. The Trustees of both Trusts are Phillip Prior, Sandra Prior and Paul Chubbock. On 1 March 2024, the entire share capital of the Company was acquired by Bowmer and Kirkland Limited, who became the ultimate parent undertaking of the Company at that date.
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