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REGISTERED NUMBER: 05392794 (England and Wales)














Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 31 March 2024

for

ETEC CONTRACT SERVICES LIMITED

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Contents of the Financial Statements
for the year ended 31 March 2024










Page

Company Information 1

Strategic Report 2

Report of the Director 4

Report of the Independent Auditors 6

Statement of Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 14


ETEC CONTRACT SERVICES LIMITED

Company Information
for the year ended 31 March 2024







Director: Mr M D Smith





Registered office: Suite 7, Elmhurst
98-106 High Road
South Woodford
Essex
E18 2QH





Registered number: 05392794 (England and Wales)





Auditors: Cooper Parry Group Limited
Statutory Auditor
New Derwent House
69-73 Theobalds Road
London
WC1X 8TA

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Strategic Report
for the year ended 31 March 2024


The director presents his strategic report for the year ended 31 March 2024.

Business review
Construction activities during the year for the company consisted of continuation and completion of projects started in previous years and of new projects started in the current year. The company worked on preparations for projects starting in 2023 as well as on the progressing improvements in respect of Health and Safety, client satisfaction, efficient programming of works, standardisation of design and processes, BIM and quality control.

The main role of the company is provide principal contracting services to the construction industry in a range of sectors on a nationwide basis.

Whilst the economy in the UK has proven to be challenging, the company has continued to hand over projects on time, within budget and to a high standard of quality. This has resulted in high scores with client satisfaction which in turn allows us to continue our ever growing position in the construction Industry.

Compared to last year, revenue related to our projects increased. This increase is mainly due to the large volume of the projects that are now being executed. In line with previous years, we continued to achieve positive results. Details are included in the accounts.

Principal risks and uncertainties
The key business risks and uncertainties that affect the company relate to the long-term nature and volume of our projects, and the competitive position of the the company relative to key competitors. Delayed start of projects due to budget constraints or other circumstances and factors will also provide uncertainty.

The rising cost of materials and labour has represented a risk in the year and is considered to be an ongoing risk that the company continues to manage. The company is able to manage this impact on a large number of projects as the frameworks these projects are secured through provide mechanisms for dealing with these cost increases. Elsewhere, we continue to utilise our relationships with our Clients and Construction Partners and ensure each project is risk assessed and evaluated in detail to ensure any risk associated with material and labour costs is mitigated and controlled.

The company further aims to standardise design and technical solutions along with processes and procedures where possible. By repetition and constant monitoring and improving design, construction details and costs the company managed to increase the predictability of financial results of projects. Repeating business with both clients and other construction partners will furthermore contribute to this predictability along with securing works on tender portals and frameworks.

Due to budget constraints or other circumstances however, projects can be postponed or even cancelled. The company aims to manage this risk by designing and offering affordable alternatives via value engineering or, when a project is likely to be cancelled, participate on other opportunities or tenders at early notice.

Financial key performance indicators
The company's key performance indicator is turnover, details of which are included in the accounts.

Development and performance
The profit for the year is £885,652 with a net asset position of £3,605,818 as at year end.


ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Strategic Report
for the year ended 31 March 2024

Future developments
In the financial year 2023 the company were again successful in meeting our targets for timely project hand overs, delivery of a good quality of projects, financial results, process improvements and client satisfaction. We are currently working on multiple projects nationwide in various sectors of the construction industry and some of these projects will continue into the financial year 2024 and 2025.

The company continues to focus on works across multiple sectors, including but not limited to Local Authorities, Housing Associations, Schools/Education, Healthcare, Commercial and works for selected blue chip companies and consider this diverse and measured approach to be the most effective means of continuing steady turnover growth and mitigating risk to the business.

Based on projects under construction, orders already secured and a positive pipeline, the company expects the turnover of the company in the financial year 2024 to be around £25 million with a further potential of approx.£10 million for projects tendered throughout the year.

Although uncertainties remain with the current economy, the company is looking forward to the future with confidence. This report was approved by the board and signed on its behalf.

On behalf of the board:





Mr M D Smith - Director


19 December 2024

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Report of the Director
for the year ended 31 March 2024


The director presents his report with the financial statements of the company for the year ended 31 March 2024.

Principal activity
The principal activity of the company in the year under review was that of residential, commercial and leisure main building contractors.

Dividends
The profit for the year is £885,652 and the total amount of dividends paid during the year ended 31 March 2024 is £104,000.

Director
Mr M D Smith held office during the whole of the period from 1 April 2023 to the date of this report.

Financial instruments
The company has effective management of trade debtors and trade creditors by implementing robust review of payables and receivables, diversifying their customer and supplier bases, and maintaining strong relationships. The director aims to mitigate the risks associated with trade debtors and trade creditors in this way. The company's proactive approach ensures that they can navigate potential challenges while supporting the overall financial stability of the company.

Statement of director's responsibilities
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:

-select suitable accounting policies and then apply them consistently;
-make judgements 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 director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Statement as to disclosure of information to auditors
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Report of the Director
for the year ended 31 March 2024


Auditors
The audit business of Haines Watts LLP was acquired by Cooper Parry Group Limited on 14 November 2023.

Haines Watts LLP has resigned as auditor and Cooper Parry Group Limited has been appointed in its place.

The auditors, Cooper Parry Group Limited, will be proposed for re-appointment in accordance with section 485 of the Companies Act 2006.

On behalf of the board:





Mr M D Smith - Director


19 December 2024

Report of the Independent Auditors to the Members of
ETEC Contract Services Limited


Opinion
We have audited the financial statements of ETEC Contract Services Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its profit for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 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 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
ETEC Contract Services Limited


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 Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page four, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the Directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance.

During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

Our procedures in relation to fraud included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

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 Report of the Auditors.

Report of the Independent Auditors to the Members of
ETEC Contract Services Limited


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 a Report of the Auditors 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.




JANE WILLS (Senior Statutory Auditor)
for and on behalf of Cooper Parry Group Limited
Statutory Auditor
New Derwent House
69-73 Theobalds Road
London
WC1X 8TA

19 December 2024

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Statement of Comprehensive
Income
for the year ended 31 March 2024

2024 2023
Notes £    £   

Turnover 3 30,314,462 30,259,350

Cost of sales (28,125,173 ) (26,179,851 )
Gross profit 2,189,289 4,079,499

Administrative expenses (1,600,379 ) (2,074,051 )
Operating profit 6 588,910 2,005,448

Provisions against loans to associated
companies

7

296,285

(1,675,000

)
885,195 330,448

Interest receivable and similar income 27,347 972
912,542 331,420

Interest payable and similar expenses 8 (26,890 ) (21,928 )
Profit before taxation 885,652 309,492

Tax on profit 9 - (5,586 )
Profit for the financial year 885,652 303,906

Other comprehensive income - -
Total comprehensive income for the year 885,652 303,906

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Balance Sheet
31 March 2024

2024 2023
Notes £    £    £    £   
Fixed assets
Intangible assets 11 5,000 10,000
Tangible assets 12 83,704 66,329
88,704 76,329

Current assets
Debtors 13 9,728,506 10,078,562
Cash at bank and in hand 3,608,927 4,852,290
13,337,433 14,930,852
Creditors
Amounts falling due within one year 14 9,649,865 11,876,197
Net current assets 3,687,568 3,054,655
Total assets less current liabilities 3,776,272 3,130,984

Creditors
Amounts falling due after more than one
year

15

170,454

306,818
Net assets 3,605,818 2,824,166

Capital and reserves
Called up share capital 18 300,000 300,000
Retained earnings 19 3,305,818 2,524,166
Shareholders' funds 3,605,818 2,824,166

The financial statements were approved by the director and authorised for issue on 19 December 2024 and were signed by:





Mr M D Smith - Director


ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Statement of Changes in Equity
for the year ended 31 March 2024

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 April 2022 300,000 2,351,760 2,651,760

Changes in equity
Dividends - (131,500 ) (131,500 )
Total comprehensive income - 303,906 303,906
Balance at 31 March 2023 300,000 2,524,166 2,824,166

Changes in equity
Dividends - (104,000 ) (104,000 )
Total comprehensive income - 885,652 885,652
Balance at 31 March 2024 300,000 3,305,818 3,605,818

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Cash Flow Statement
for the year ended 31 March 2024

2024 2023
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (994,099 ) 3,748,638
Interest paid (26,890 ) (21,928 )
Tax paid (86,319 ) (177,850 )
Net cash from operating activities (1,107,308 ) 3,548,860

Cash flows from investing activities
Purchase of tangible fixed assets (34,081 ) (54,065 )
Interest received 27,347 972
Net cash from investing activities (6,734 ) (53,093 )

Cash flows from financing activities
Amount introduced by directors - 7,307
Amount withdrawn by directors (25,321 ) -
Equity dividends paid (104,000 ) (131,500 )
Net cash from financing activities (129,321 ) (124,193 )

(Decrease)/increase in cash and cash equivalents (1,243,363 ) 3,371,574
Cash and cash equivalents at beginning
of year

2

4,852,290

1,480,716

Cash and cash equivalents at end of year 2 3,608,927 4,852,290

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Notes to the Cash Flow Statement
for the year ended 31 March 2024


1. Reconciliation of profit before taxation to cash generated from operations

2024 2023
£    £   
Profit before taxation 885,652 309,492
Depreciation charges 21,706 12,420
Provision against loan (97,524 ) -
Finance costs 26,890 21,928
Finance income (27,347 ) (972 )
809,377 342,868
Decrease in stocks - 1,616,004
Decrease/(increase) in trade and other debtors 400,869 (5,350,985 )
(Decrease)/increase in trade and other creditors (2,204,345 ) 7,140,751
Cash generated from operations (994,099 ) 3,748,638

2. Cash and cash equivalents

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2024
31.3.24 1.4.23
£    £   
Cash and cash equivalents 3,608,927 4,852,290
Year ended 31 March 2023
31.3.23 1.4.22
£    £   
Cash and cash equivalents 4,852,290 1,480,716


3. Analysis of changes in net funds

At 1.4.23 Cash flow At 31.3.24
£    £    £   
Net cash
Cash at bank and in hand 4,852,290 (1,243,363 ) 3,608,927
4,852,290 (1,243,363 ) 3,608,927
Debt
Debts falling due within 1 year (136,364 ) - (136,364 )
Debts falling due after 1 year (306,818 ) 136,364 (170,454 )
(443,182 ) 136,364 (306,818 )
Total 4,409,108 (1,106,999 ) 3,302,109

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Notes to the Financial Statements
for the year ended 31 March 2024


1. Statutory information

ETEC Contract Services Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. Accounting policies

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Key source of estimation, uncertainty and judgement
The preparation of financial statements in conformity with generally accepted accounting practice requires management to make estimates and judgement that affect the reported amounts of assets and liabilities as well as the disclosure of contingent assets and liabilities at the balance sheet date and the reported amounts of revenues and expenses during the reporting period.

There is estimation uncertainty in calculating depreciation. A full line by line review of fixed assets is carried out by management regularly. Whilst every attempt is made to ensure that the depreciation policy is as accurate as possible, there remains a risk that the policy does not match the useful life of the assets.

There is estimation uncertainty in calculating deferred tax. A full line by line review of deferred tax is carried out by management regularly. Whilst every attempt is made to ensure that the deferred tax is as accurate as possible, there remains a risk that the provisions do not match the actual tax liability when asset is disposed of.

There is estimation uncertainty in calculating bad debt provisions. A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectable.

Turnover
Turnover is generated by providing principal contracting services to the construction industry. Turnover on service contracts is recognised where the outcome of the transaction can be estimated reliably and it is probable that the economic benefits associated with the transaction will flow to the entity. Where this is not the case, turnover is only recognised to the extent of any expenses recognised which are recoverable. Turnover is measured at the fair value of consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2021, is being amortised evenly over its estimated useful life of five years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Fixtures and fittings - 20% on reducing balance

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Notes to the Financial Statements - continued
for the year ended 31 March 2024


2. Accounting policies - continued

Financial instruments
Financial assets and financial liabilities are recognised in the balance sheet when the company becomes a party to the contractual provisions of the instrument.

Trade and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that the company will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank and bank overdrafts.

Financial liabilities and equity instruments issued by the company are classified in accordance with the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Work in progress
Work in progress is accounted for as an asset on a company's balance sheet, similar to raw materials or inventory. This represents work done but not yet billed.

Going concern
The financial statements have been prepared on a going concern basis. The director has reviewed the company's cashflows over the next twelve months from the date of signing the financial statements and considers that, based on the support that is likely to be available, the company will be able to meet its debts as and when they fall due.

3. Turnover

The turnover and profit before taxation are attributable to the one principal activity of the company.

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Notes to the Financial Statements - continued
for the year ended 31 March 2024


4. Employees and directors

20242023
£   £   
Wages and salaries604,896771,624
Social security costs218,500252,509
Other pension costs14,95645,116
838,3521,069,249

The average monthly number of employees during the year was as follows:
20242023
Management and administration9673

5. Directors' emoluments
2024 2023
£    £   
Director's remuneration 6,000 6,000

6. Operating profit

The operating profit is stated after charging:

2024 2023
£    £   
Depreciation - owned assets 16,706 7,420
Goodwill amortisation 5,000 5,000
Auditors' remuneration 10,000 10,000

Services provided by the Company's auditors:

20242023
££
Fees payable for the audit11,50010,000
Fees payable for non-audit14,50011,300

7. Exceptional items
2024 2023
£    £   
Provisions against loans to associated
companies

296,285

(1,675,000

)

This relates to intercompany loans that were written off in the prior year.

8. Interest payable and similar expenses
2024 2023
£    £   
Bank loan interest 26,890 21,928

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Notes to the Financial Statements - continued
for the year ended 31 March 2024


9. Taxation

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax - 86,319
Tax - prior year adjustment - (80,733 )

Tax on profit - 5,586

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Profit before tax 885,652 309,492
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

221,413

77,373

Effects of:
Expenses not deductible for tax purposes 24,253 3,105
Capital allowances in excess of depreciation (8,683 ) (12,773 )
Adjustments to tax charge in respect of previous periods (74,071 ) (80,733 )
Provision against loans to associates 98,850 418,750
R&D enhanced deduction (261,762 ) (400,136 )
Total tax charge - 5,586

10. Dividends
2024 2023
£    £   
Ordinary shares of £1 each
Interim 104,000 131,500

11. Intangible fixed assets
Goodwill
£   
Cost
At 1 April 2023
and 31 March 2024 25,000
Amortisation
At 1 April 2023 15,000
Amortisation for year 5,000
At 31 March 2024 20,000
Net book value
At 31 March 2024 5,000
At 31 March 2023 10,000

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Notes to the Financial Statements - continued
for the year ended 31 March 2024


12. Tangible fixed assets
Fixtures
and
fittings
£   
Cost
At 1 April 2023 95,381
Additions 34,081
At 31 March 2024 129,462
Depreciation
At 1 April 2023 29,052
Charge for year 16,706
At 31 March 2024 45,758
Net book value
At 31 March 2024 83,704
At 31 March 2023 66,329

13. Debtors: amounts falling due within one year
2024 2023
£    £   
Trade debtors 5,851,666 5,936,457
Amounts owed by associates 1,096,094 861,361
Work in progress 2,706,977 3,130,230
Other debtors 65,100 -
Retentions - 763
Directors' loan accounts 8,669 136,964
Prepayments and accrued income - 12,787
9,728,506 10,078,562

14. Creditors: amounts falling due within one year
2024 2023
£    £   
Bank loans and overdrafts (see note 16) 136,364 136,364
Trade creditors 2,929,583 3,642,678
Amounts owed to associates 28,958 75,669
Tax - 86,319
Social security and other taxes 131,435 120,652
VAT 906,072 791,132
Other accruals 5,491,947 6,921,330
Accruals and deferred income 25,506 102,053
9,649,865 11,876,197

15. Creditors: amounts falling due after more than one year
2024 2023
£    £   
Bank loans (see note 16) 170,454 306,818

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Notes to the Financial Statements - continued
for the year ended 31 March 2024


16. Loans

An analysis of the maturity of loans is given below:

2024 2023
£    £   
Amounts falling due within one year or on demand:
Bank loans 136,364 136,364

Amounts falling due between two and five years:
Bank loans - 2-5 years 170,454 306,818

Bank loans are secured by a Debenture and a floating charge over the assets of the company by Lloyds Bank

17. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£    £   
Within one year 32,081 -
Between one and five years 125,852 -
157,933 -

18. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
50,000 Ordinary £1 50,000 50,000
250,000 Preference £1 250,000 250,000
300,000 300,000

The ordinary shares have rights to voting and dividends. The shares are not redeemable.

The preference shares have no voting rights and no rights to dividends. Upon winding up, preference shares are to be repaid first, with ordinary shares for repayment thereafter. Any residue is to be repaid to the holders of ordinary shares.They are redeemable at the option of the company.

19. Reserves
Retained
earnings
£   

At 1 April 2023 2,524,166
Profit for the year 885,652
Dividends (104,000 )
At 31 March 2024 3,305,818

ETEC CONTRACT SERVICES LIMITED (REGISTERED NUMBER: 05392794)

Notes to the Financial Statements - continued
for the year ended 31 March 2024


20. Director's advances, credits and guarantees

The following advances and credits to a director subsisted during the years ended 31 March 2024 and 31 March 2023:

2024 2023
£    £   
Mr M D Smith
Balance outstanding at start of year 144,270 200,917
Amounts advanced 1,706 7,444
Amounts repaid (137,307 ) (64,091 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year 8,669 144,270

The balance on the directors' loan account is repayable on demand. Interest amounting to £2,756 was paid on the balance in the year.

21. Related party disclosures

As at 31 March 2024, a total amount of £1,096,094 (2023: £861,361) is due from companies related by virtue of common ownership.

As at 31 March 2024, a total amount of £28,958 (2023: £75,669) is due to companies related by virtue of common ownership. All the companies are connected by virtue of having M Smith as a common director.

During the year, a dividend of £104,000 (2023: £131,500) was paid to the director.

22. Controlling party

The company is under the control of Michael Smith by virtue of his 100% shareholding.