Company registration number 01836048 (England and Wales)
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
COMPANY INFORMATION
Directors
Mr G D Jones
Mr D H Jones
Secretary
Mrs E Jones
Company number
01836048
Registered office
Plas Eirias Business Centre
Abergele Road
Colwyn Bay
LL29 8BF
Auditor
Xeinadin Audit Limited
2 Hilliards Court
Chester Business Park
Chester
Cheshire
CH4 9QP
Bankers
Svenska Handelsbanken
Raymond Court
Princes Drive
Colwyn Bay
LL29 BHT
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Profit and loss account
7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
JENNINGS BUILDING & CIVIL ENGINEERING 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

The company has had a good year, achieving a before taxation profit of £1,548,227. There was an increase in turnover of 20% to £15,337,476 with gross margins slightly increasing from 21% to 22%.

 

The directors consider that this position is acceptable given the current pressures on costs as there have been substantial price increases across the board which have impacted the company's contracts. After payment of a dividend of £117,500 the companies balance sheet stands at £7,958,783, which is an increase of £1,041,093 on the previous year and a very strong financial position with a cash balance of £2,460,400 at the year end.

 

The company has invested £928,557 in property and plant during the year. The company does not have any debt and has cash balances for working capital and any other funding requirements.

 

Principal risks and uncertainties

Forecasting is extremely difficult. Tender enquiries do seem to be slowing down which could be as a result of the upcoming budget. Price pressures are undoubtedly having an impact on margins within the industry.

 

It is unlikely that the company will match the turnover and profit levels during the next financial year.

 

Development and performance

The nature of the work that the company does remains unchanged and the company will continue to focus on its core construction activities.

 

Key performance indicators

The company has a number of internal key performance indicators, both of a financial and non-financial nature and during 2023/​24 these have been met. The company will continue to monitor its performance against these indicators

On behalf of the board

Mr G D Jones
Director
18 November 2024
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

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

Principal activities

The principal activity of the company continued to be that of building and civil engineering contractors.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £117,500. 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:

Mr G D Jones
Mr D H Jones
Auditor

In accordance with the company's articles, a resolution proposing that Xeinadin Audit Limited be reappointed as auditor of the company will be put at a General Meeting.

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. It has done so in respect of performance, risk and future developments.

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.

JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
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 G D Jones
Director
18 November 2024
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
- 4 -
Opinion

We have audited the financial statements of Jennings Building & Civil Engineering Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
- 5 -
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.

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:

· Enquiry of management and those charged with governance around actual and potential litigation and claims;

· Reviewing minutes of meetings of those charged with governance;

· Performing audit work over the risk of management override of controls, including testing of journal entries and

other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the

normal course of business and reviewing accounting estimates for bias;

· Enquiry of management and those charged with governance to identify any instances of non-compliance with

laws and regulations.

The potential effect of these laws and regulations on the financial statements varies considerably.

 

Firstly, the company is subject to laws and regulations that directly affect the financial statements including financial reporting legislation (including related companies legislation), distributable profits legislation and taxation legislation and we assessed the extent of compliance with these laws and regulations as part of our procedures on the related financial statement items.

JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
- 6 -

Secondly, the company is subject to many other laws and regulations where the consequence of non-compliance could have a material effect on amounts or disclosures in the financial statements, for instance the imposition of fines or litigation or the loss of the company’s license to operate. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. Therefore, if a breach of operational regulations is not disclosed to us or evident from relevant correspondence, an audit will not detect that breach.

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

 

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.

Stephanie Baker BA(Hons) ACA (Senior Statutory Auditor)
For and on behalf of Xeinadin Audit Limited
18 November 2024
Chartered Accountants
Statutory Auditor
2 Hilliards Court
Chester Business Park
Chester
Cheshire
CH4 9QP
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
15,337,476
12,745,527
Cost of sales
(12,008,066)
(10,021,446)
Gross profit
3,329,410
2,724,081
Administrative expenses
(1,996,381)
(2,076,855)
Other operating income
135,218
245,382
Operating profit
4
1,468,247
892,608
Interest receivable and similar income
7
79,980
36,425
Profit before taxation
1,548,227
929,033
Tax on profit
8
(389,634)
(283,399)
Profit for the financial year
1,158,593
645,634

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

JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
£
£
Profit for the year
1,158,593
645,634
Other comprehensive income
-
-
Total comprehensive income for the year
1,158,593
645,634
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
3,413,067
2,849,795
Investment property
11
787,500
787,500
4,200,567
3,637,295
Current assets
Stocks
12
19,718
24,386
Debtors
13
4,600,540
4,387,639
Cash at bank and in hand
2,460,400
1,732,529
7,080,658
6,144,554
Creditors: amounts falling due within one year
14
(2,795,645)
(2,497,483)
Net current assets
4,285,013
3,647,071
Total assets less current liabilities
8,485,580
7,284,366
Provisions for liabilities
Deferred tax liability
15
526,797
366,676
(526,797)
(366,676)
Net assets
7,958,783
6,917,690
Capital and reserves
Called up share capital
17
50,000
50,000
Non-distributable profits reserve
18
105,319
105,319
Distributable profit and loss reserves
7,803,464
6,762,371
Total equity
7,958,783
6,917,690

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 18 November 2024 and are signed on its behalf by:
Mr G D Jones
Director
Company registration number 01836048 (England and Wales)
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Non-distri-butable profits
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 April 2022
50,000
-
0
6,368,606
6,418,606
Year ended 31 March 2023:
Profit and total comprehensive income
-
105,319
540,315
645,634
Dividends
9
-
-
(146,550)
(146,550)
Balance at 31 March 2023
50,000
105,319
6,762,371
6,917,690
Year ended 31 March 2024:
Profit and total comprehensive income
-
-
1,158,593
1,158,593
Dividends
9
-
-
(117,500)
(117,500)
Balance at 31 March 2024
50,000
105,319
7,803,464
7,958,783
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
1,759,623
640,165
Income taxes paid
(119,538)
(26,777)
Net cash inflow from operating activities
1,640,085
613,388
Investing activities
Purchase of tangible fixed assets
(940,157)
(531,615)
Proceeds from disposal of tangible fixed assets
65,463
-
0
Purchase of investment property
-
0
(586,075)
Interest received
79,980
36,425
Net cash used in investing activities
(794,714)
(1,081,265)
Financing activities
Dividends paid
(117,500)
(146,550)
Net cash used in financing activities
(117,500)
(146,550)
Net increase/(decrease) in cash and cash equivalents
727,871
(614,427)
Cash and cash equivalents at beginning of year
1,732,529
2,346,956
Cash and cash equivalents at end of year
2,460,400
1,732,529
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
1
Accounting policies
Company information

Jennings Building & Civil Engineering Limited is a private company limited by shares incorporated in England and Wales. The registered office is Plas Eirias Business Centre, Abergele Road, Colwyn Bay, LL29 8BF.

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.

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 represents net invoiced sales of construction services, excluding value added tax. Recognition of turnover is included within the construction contracts accounting policy.

1.4
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:

Plant and equipment
Various rates reducing balance
Fixtures and fittings
20% reducing balance
Motor vehicles
20% reducing balance
Freehold land and buildings
Straight line over 25 years, land not depreciated

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.

1.5
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.6
Impairment of fixed assets

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

JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -

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

 

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

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

1.7
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.

1.8
Construction contracts

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

 

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

 

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

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.

JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
1.9
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.

1.10
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
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, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

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

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

JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
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 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, 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.

1.13
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.

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

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.

JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
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.

Revenue and margin recognition

The company's revenue recognition and margin recognition policies are central to how the company values the work it has carried out in each financial year. These policies require forecasts to be made of the outcomes of construction contracts, which require assessments and judgements to be made. The company reviews and when necessary revises the estimates of revenue and costs as the contract progresses.

Determing the useful economic lives of tangible fixed assets

The company depreciates tangible assets over their estimated useful lives based on historic performance. The actual lives can vary.

3
Turnover and other revenue

All turnover arose within the United Kingdom.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
13,700
13,050
Depreciation of owned tangible fixed assets
365,885
337,070
(Profit)/loss on disposal of tangible fixed assets
(54,463)
3,200
Operating lease charges
37,561
36,322
5
Employees

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

2024
2023
Number
Number
Management and Administration
27
28
Labour
54
50
Total
81
78
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,242,584
3,123,394
Social security costs
341,309
325,324
Pension costs
199,683
153,808
3,783,576
3,602,526
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
168,488
150,238
Company pension contributions to defined contribution schemes
123,522
83,522
292,010
233,760

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

7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
79,980
36,425
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
79,980
36,425
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
229,513
119,538
Deferred tax
Origination and reversal of timing differences
160,121
163,861
Total tax charge
389,634
283,399
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
(Continued)
- 19 -

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
1,548,227
929,033
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
387,057
176,516
Tax effect of expenses that are not deductible in determining taxable profit
-
0
549
Permanent capital allowances in excess of depreciation
(235,399)
(122,178)
Depreciation on assets not qualifying for tax allowances
91,471
64,043
Profit on disposal of assets
(13,616)
608
Deferred tax
160,121
163,861
Taxation charge for the year
389,634
283,399
9
Dividends
2024
2023
£
£
Final paid
117,500
146,550
10
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Motor vehicles
Freehold land and buildings
Total
£
£
£
£
£
Cost
At 1 April 2023
2,680,839
270,799
1,284,459
1,522,950
5,759,047
Additions
323,380
109,527
495,650
11,600
940,157
Disposals
(148,790)
-
0
(126,317)
-
0
(275,107)
At 31 March 2024
2,855,429
380,326
1,653,792
1,534,550
6,424,097
Depreciation and impairment
At 1 April 2023
1,744,289
183,164
895,899
85,900
2,909,252
Depreciation charged in the year
200,435
31,300
110,150
24,000
365,885
Eliminated in respect of disposals
(144,690)
-
0
(119,417)
-
0
(264,107)
At 31 March 2024
1,800,034
214,464
886,632
109,900
3,011,030
Carrying amount
At 31 March 2024
1,055,395
165,862
767,160
1,424,650
3,413,067
At 31 March 2023
936,550
87,635
388,560
1,437,050
2,849,795
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
11
Investment property
2024
£
Fair value
At 1 April 2023 and 31 March 2024
787,500

Investment property comprises of commercial property let out to third parties. The fair value of the investment property has been arrived at on the basis of a valuation carried out by St David's Commercial Estate Agents, who are not connected with the company, on 31 March 2023. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. The directors consider the valuation unchanged at 31 March 2024.

12
Stocks
2024
2023
£
£
Raw materials and consumables
19,718
24,386
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,161,582
2,669,360
Gross amounts owed by contract customers
191,519
320,221
Other debtors
1,247,439
1,398,058
4,600,540
4,387,639
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,214,086
1,806,041
Corporation tax
229,513
119,538
Other taxation and social security
117,176
124,719
Other creditors
234,870
447,185
2,795,645
2,497,483
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
15
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
491,691
331,570
Investment property
35,106
35,106
526,797
366,676
2024
Movements in the year:
£
Liability at 1 April 2023
366,676
Charge to profit or loss
160,121
Liability at 31 March 2024
526,797
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
199,683
153,808

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.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
22,800
22,800
22,800
22,800
Ordinary B of £1 each
15,200
15,200
15,200
15,200
Ordinary C of £1 each
7,000
7,000
7,000
7,000
Ordinary D of £1 each
5,000
5,000
5,000
5,000
50,000
50,000
50,000
50,000
JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
18
Non-distributable profits reserve
2024
2023
£
£
At the beginning of the year
105,319
-
Non distributable profits in the year
-
105,319
At the end of the year
105,319
105,319
19
Events after the reporting date

On 1st November 2024 Jennings Building and Civil Engineering Limited underwent a corporate restructure, grouping the company with it’s associated companies Jennings Logistics Limited and J Wood and Sons Limited, the final structure being Jennings Building and Civil Engineering Limited sits above it’s subsidiaries Jennings Logistics Limited and J Wood and Sons Limited, the trade and assets of both Jennings Logistics Limited and J Wood and Sons Limited were transferred to Jennings Building and Civil Engineering Limited with the subsidiaries eventually becoming dormant with the intention of striking off the subsidiaries leaving Jennings Building and Civil Engineering Limited as a standalone company.

 

JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
20
Related party transactions
Transactions with related parties

Work Panel Limited

The director of Jennings Building & Civil Engineering Limited is also a director of Work Panel Limited. At the year end balance of £279 (2023 - £816) which was included in trade debtors. There was an additional intercompany debtor at year the end of £750,000 (2023 - £750,000). The company rents property owned by Work Panel Limited and the amount charged and paid during the year was £37,561 (2023 - £36,322). During the year the company charged Work Panel Limited service charges of £6,089 (2023 - £2,473).

 

Windjen (Blaen Bowi) Limited

Jennings Building & Civil Engineering Limited and Windjen (Blaen Bowi) Limited are related by common control. At the year end Jennings owed Windjen £100,000 (2023 - £200,000). During the year Jennings Building & Civil Engineering Limited charged Windjen (Blaen Bowi) Limited service charges totalling £70,000 (2023 - £65,750).

 

Jennings Logistics Limited

Jennings Building & Civil Engineering Limited and Jennings Logistics Limited are related by common control. The amount due from Jennings Logistics Limited at the year end is £258,674 (2023 - 258,674) which is included in other debtors.

 

J Wood & Sons (NW) Limited

J Wood & Sons (NW) Limited is 100% owned by Jennings Logistics Limited which in turn is related by common control to Jennings Building & Civil Engineering Limited. During the year Jennings Building & Civil Engineering Limited charged J Wood & Sons (NW) Limited service charges totalling £216,108 (2023 - £384,283). The amount due from J Wood & Sons (NW) Limited at the year end is £16,659 (2023 - £43,646) which is included in trade debtors. The amount due to J Wood & Sons (NW) Limited at the year end is £62,094 (2022 - £59,309) which is included in trade creditors. In addition, the loan balance outstanding from J Wood & Sons (NW) Ltd is £100,000 (2023 - £200,000).

 

Mr Dewi Jones

Mr Dewi Jones is a shareholder.

At the year end Mr Dewi Jones was owed £44,090 from the company (2023 - £36,034) in the form of a shareholder's loan account. This amount is included in other creditors. There are no repayment terms and no interest is charged on the loan. There is also a balance in trade creditors owed to Dewi Jones for £1,770.

 

Dividends

A final dividend of £117,500 (2023 - £146,550) was paid to shareholders of the company.

21
Ultimate controlling party

The ultimate controlling party of Jennings Building & Civil Engineering Limited is Mr Dewi Jones by virtue of his majority shareholding.

JENNINGS BUILDING & CIVIL ENGINEERING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
22
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
1,158,593
645,634
Adjustments for:
Taxation charged
389,634
283,399
Investment income
(79,980)
(36,425)
(Gain)/loss on disposal of tangible fixed assets
(54,463)
3,200
Fair value gain on investment properties
-
0
(140,425)
Depreciation and impairment of tangible fixed assets
365,885
337,070
Decrease in provisions
-
0
(20,000)
Movements in working capital:
Decrease/(increase) in stocks
4,668
(14,118)
Increase in debtors
(212,901)
(606,592)
Increase in creditors
188,187
188,422
Cash generated from operations
1,759,623
640,165
23
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
1,732,529
727,871
2,460,400
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