Company registration number 01586827 (England and Wales)
WJ GROUNDWATER LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
Faulkner House
Victoria Street
Rayner Essex LLP
St Albans
Chartered Accountants
Hertfordshire
AL1 3SE
WJ GROUNDWATER LIMITED
COMPANY INFORMATION
Directors
S D M Harris
R M Fielden
T O L Roberts
G J Holmes
N R Coulter
P D A Judge
P F Turner
G W Daley
(Appointed 1 December 2023)
J P Ireland
(Appointed 2 December 2024)
Secretary
S D M Harris
Company number
01586827
Registered office
Unit 5
Abbotts Business Park
Primrose Hill
Kings Langley
Hertfordshire
WD4 8FR
Auditor
Rayner Essex LLP
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
WJ GROUNDWATER LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
WJ GROUNDWATER LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 1 -

The directors present the strategic report for the year ended 30 April 2024.

Review of the business

The company's principal activity is providing equipment and services to civil engineering contractors and consultants. The company operates primarily in the UK, with smaller branches in Dubai and Ireland.

The directors are pleased with the company's performance. Year-on-year revenue has grown in the core UK market, while revenue from the UAE branch remains minimal due to a focus on securing work through UAE-based subsidiaries of the parent company, WJ Management. Profitability has increased at a higher rate than revenue, reflecting improved operational efficiency and cost management.

Net current assets have risen in line with revenue growth, reaching historically high levels and demonstrating the strength of the company's liquid resources. Net assets have also increased, maintaining a robust Statement of Financial Position and underscoring the company's financial stability.

 

Future developments

Despite challenging conditions in the construction industry, the company anticipates minimal impact on revenue for the year ending April 2025, supported by ongoing major projects. These projects are expected to sustain profitability at healthy levels.

The company remains committed to innovation, continuously researching technological advancements and techniques that can enhance its operations.

Principal risks and uncertainties

The company faces a number of principal risks and uncertainties including credit risk, liquidity risk, and foreign exchange risk:

 

Credit risk

Credit risk applies to financial instruments such as trade receivables. Policies and procedures exist to ensure the management of trade receivables minimises as far as reasonably practicable the company's exposure to credit risk. Tight controls applied to debt collection are in place and cash continues to be collected in accordance with expectation.

 

Liquidity risk

The company seeks to manage financial risk by ensuring that sufficient liquidity is available to meet foreseeable needs and invest cash assets safely and profitably.

 

Foreign exchange risk

The company operates in international markets and it is therefore exposed to currency movements. The company's financial risk management objective is broadly to make neither a trading profit nor loss from expense to currency. The company does not use hedge accounting.

 

Cash flow risk

The company's policy is to ensure that it always has sufficient cash to allow it to meet its liabilities when they become due. This risk is managed through budgeting and forecasts and through regular review of cash.

 

UK Exit from the European Union

The company is impacted by the UK's exit from the European Union and has policies in place to reduce the associated risks. Management will continue to manage business challenges that may arise and ensure minimal impact to the ongoing performance of the business.

WJ GROUNDWATER LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 2 -
Key performance indicators

The company's key performance indicators are turnover, profit before tax and net assets.

 

The directors can report the following KPI's for the year:

 

Turnover - £12,432,602 (2023: £11,658,703)

 

Profit before tax - £1,300,749 (2023: £871,717)

 

Net assets - £14,361,353 (2023: £13,366,432)

 

On behalf of the board

S D M Harris
Director
24 January 2025
WJ GROUNDWATER LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 APRIL 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 April 2024.

Principal activities

The principal activity of the company continued to be that of provision of equipment and services to civil engineering contractors and consultants.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

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

S D M Harris
R M Fielden
T O L Roberts
G J Holmes
N R Coulter
P D A Judge
P F Turner
G W Daley
(Appointed 1 December 2023)
J P Ireland
(Appointed 2 December 2024)
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Research and development

The company invests in research and development activities relevant to the size and nature of its operations with the aim of supporting future development of the company.

 

Existence of branches of the company outside of the United Kingdom

The company has branches outside of the United Kingdom, in Ireland and Dubai.

 

Matters covered in the strategic report

The review of the business and future developments, principal risks and uncertainties and key performance indicators are not shown in the director's report as they are shown in the strategic report in accordance with S414C (11) of the Companies Act 2006.

Future developments

Information on the likely future developments in the business have been included in the Strategic Report on page 1.

Auditor

The auditor, Rayner Essex LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

WJ GROUNDWATER LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 4 -
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.

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.

 

On behalf of the board
S D M Harris
Director
24 January 2025
WJ GROUNDWATER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WJ GROUNDWATER LIMITED
- 5 -
Opinion

We have audited the financial statements of WJ Groundwater Limited (the 'company') for the year ended 30 April 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

WJ GROUNDWATER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WJ GROUNDWATER LIMITED
- 6 -
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.

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:

 

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

 

WJ GROUNDWATER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WJ GROUNDWATER LIMITED
- 7 -

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

 

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

 

 

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

 

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

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

Use of our report

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

Neil Heyes FCA
Senior Statutory Auditor
For and on behalf of Rayner Essex LLP
29 January 2025
Chartered Accountants
Statutory Auditor
Faulkner House
Victoria Street
St Albans
Hertfordshire
AL1 3SE
WJ GROUNDWATER LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 APRIL 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
12,432,602
11,658,703
Cost of sales
(6,139,261)
(6,088,515)
Gross profit
6,293,341
5,570,188
Administrative expenses
(4,787,415)
(4,584,646)
Other operating income
3,438
4,953
Operating profit
5
1,509,364
990,495
Interest receivable and similar income
6
-
0
5
Interest payable and similar expenses
7
(208,615)
(118,783)
Profit before taxation
1,300,749
871,717
Tax on profit
9
(272,508)
(108,595)
Profit for the financial year
1,028,241
763,122

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

WJ GROUNDWATER LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2024
- 9 -
2024
2023
£
£
Profit for the year
1,028,241
763,122
Other comprehensive income
Currency translation (loss)/gain taken to retained earnings
(33,320)
42,051
Total comprehensive income for the year
994,921
805,173
WJ GROUNDWATER LIMITED
BALANCE SHEET
AS AT
30 APRIL 2024
30 April 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
10
2,399,368
2,297,859
Current assets
Debtors
11
15,410,120
15,034,066
Cash at bank and in hand
131,974
12,671
15,542,094
15,046,737
Creditors: amounts falling due within one year
12
(2,928,186)
(3,260,561)
Net current assets
12,613,908
11,786,176
Total assets less current liabilities
15,013,276
14,084,035
Creditors: amounts falling due after more than one year
13
(651,923)
(717,603)
Net assets
14,361,353
13,366,432
Capital and reserves
Called up share capital
18
3,463
3,463
Share premium account
252,607
252,607
Other reserves
1,061,525
1,094,845
Profit and loss reserves
13,043,758
12,015,517
Total equity
14,361,353
13,366,432

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 24 January 2025 and are signed on its behalf by:
S D M Harris
Director
Company registration number 01586827 (England and Wales)
WJ GROUNDWATER LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2024
- 11 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 May 2022
3,463
252,607
1,052,794
11,252,395
12,561,259
Year ended 30 April 2023:
Profit
-
-
-
763,122
763,122
Other comprehensive income:
Currency translation differences
-
-
42,051
-
42,051
Total comprehensive income
-
-
42,051
763,122
805,173
Balance at 30 April 2023
3,463
252,607
1,094,845
12,015,517
13,366,432
Year ended 30 April 2024:
Profit
-
-
-
1,028,241
1,028,241
Other comprehensive income:
Currency translation differences
-
-
(33,320)
-
(33,320)
Total comprehensive income
-
-
(33,320)
1,028,241
994,921
Balance at 30 April 2024
3,463
252,607
1,061,525
13,043,758
14,361,353
WJ GROUNDWATER LIMITED
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 12 -
1
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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Profit recognition

Profit recognition is subject to judgement and is based on assessment of the ongoing profitability of individual contracts. Profits are recognised by the directors when the outcome of the contract can be assessed with reasonable certainty. The profit recognised reflected that part of the total profit expected that fairly represents the profit attributable to turnover certified at the accounting date. Contract reviews are undertaken on a monthly basis by senior staff and directors.

2
Accounting policies
Company information

WJ Groundwater Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 5, Abbotts Business Park, Primrose Hill, Kings Langley, Hertfordshire, WD4 8FR.

2.1
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, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

WJ GROUNDWATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024
2
Accounting policies
(Continued)
- 13 -

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

 

 

The financial statements of the company are consolidated in the financial statements of WJ Management Limited. These consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.

2.2
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.

2.3
Turnover

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

 

Revenue on contracts arises from increases in valuations on contracts and is recognised based on surveys of work performed and certified by the customer. Amounts not certified are shown as amounts recoverable on contracts in debtors.

 

Profit on contracts is calculated in accordance with accounting standards and industry practice. Profit recognition is based on an assessment of the overall profitability on individual contracts and is recognised when the outcome of a contract can be assessed with reasonable certainty. The profit recognised reflects that part of the total profit currently estimated to fairly represent the profit attributable to work certified at the Balance Sheet date. Any adjustments required to reflect the stage of completion to the Balance Sheet date are processed through cost of sales. The assessment of the final outcome of each contract is determined by regular review of the revenue and costs to complete that contract. Provision is made for losses incurred or foreseen in bringing the contract to completion as soon as they become apparent.

 

The company also rents surplus office space at its head office in Kings Langley. Rental income is recognised for the period to which the rental income relates.

2.4
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.

WJ GROUNDWATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
2
Accounting policies
(Continued)
- 14 -

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

Freehold land and buildings
not provided
Plant and equipment
33% on reducing balance and 33%-100% on cost
Computers
33% on cost
Motor vehicles
25%-33% on cost

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.

2.5
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.

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.

2.6
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.

2.7
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.

WJ GROUNDWATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
2
Accounting policies
(Continued)
- 15 -
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.

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.

WJ GROUNDWATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
2
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

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

2.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

2.9
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.

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.

2.10
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.

2.11
Retirement benefits

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

WJ GROUNDWATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
2
Accounting policies
(Continued)
- 17 -
2.12
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

 

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Services
12,432,602
11,658,703
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
12,446,798
11,455,963
Rest of the World
(14,196)
202,740
12,432,602
11,658,703
2024
2023
£
£
Other revenue
Interest income
-
5
4
Employees

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

2024
2023
Number
Number
Administration
13
12
Contract/engineering
66
63
Total
79
75
WJ GROUNDWATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
4
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
4,238,688
3,747,954
Pension costs
171,138
143,496
4,409,826
3,891,450
5
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Exchange losses
25,042
264,233
Fees payable to the company's auditor for the audit of the company's financial statements
36,000
33,027
Depreciation of owned tangible fixed assets
281,930
362,907
Depreciation of tangible fixed assets held under finance leases
180,458
126,634
Profit on disposal of tangible fixed assets
(76,830)
(13,494)
Operating lease charges
70,487
117,091
6
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
-
0
5
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
195,726
109,126
Interest on finance leases and hire purchase contracts
12,889
9,657
208,615
118,783
8
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
317,299
233,925
Company pension contributions to defined contribution schemes
13,379
10,533
330,678
244,458
WJ GROUNDWATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
8
Directors' remuneration
(Continued)
- 19 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
164,509
120,689
Company pension contributions to defined contribution schemes
5,523
5,064
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
272,508
108,595

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
1,300,749
871,717
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.80%)
325,187
172,600
Tax effect of expenses that are not deductible in determining taxable profit
201
1,529
Tax effect of utilisation of tax losses not previously recognised
-
0
(150,000)
Adjustments in respect of prior years
(8,177)
1,496
Permanent capital allowances in excess of depreciation
(60,971)
(25,781)
Research and development tax credit
-
0
9,110
Profits of overseas divisions not taxable in UK
16,268
103,187
Change in tax rates
-
0
(3,546)
Taxation charge for the year
272,508
108,595
WJ GROUNDWATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 20 -
10
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2023
1,584,220
6,142,871
23,754
717,694
8,468,539
Additions
-
0
538,692
4,924
21,938
565,554
Disposals
-
0
(69,253)
-
0
(36,950)
(106,203)
At 30 April 2024
1,584,220
6,612,310
28,678
702,682
8,927,890
Depreciation and impairment
At 1 May 2023
-
0
5,628,946
14,334
527,400
6,170,680
Depreciation charged in the year
-
0
394,050
2,817
65,521
462,388
Eliminated in respect of disposals
-
0
(67,596)
-
0
(36,950)
(104,546)
At 30 April 2024
-
0
5,955,400
17,151
555,971
6,528,522
Carrying amount
At 30 April 2024
1,584,220
656,910
11,527
146,711
2,399,368
At 30 April 2023
1,584,220
513,925
9,420
190,294
2,297,859

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2024
2023
£
£
Plant and equipment
199,625
181,628
Motor vehicles
134,599
168,191
334,224
349,819
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,577,052
2,707,108
Gross amounts owed by contract customers
163,811
160,533
Amounts owed by group undertakings
11,424,115
10,704,384
Other debtors
781,866
873,588
Prepayments and accrued income
114,259
184,681
15,061,103
14,630,294
Deferred tax asset (note 16)
196,627
196,627
15,257,730
14,826,921
WJ GROUNDWATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
11
Debtors
(Continued)
- 21 -
2024
2023
Amounts falling due after more than one year:
£
£
Trade debtors
152,390
207,145
Total debtors
15,410,120
15,034,066
12
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
1,320,621
1,547,092
Obligations under finance leases
15
291,169
271,434
Trade creditors
844,287
1,056,577
Corporation tax
150,162
(42,550)
Other taxation and social security
120,256
109,293
Other creditors
39,741
65,371
Accruals and deferred income
161,950
253,344
2,928,186
3,260,561
13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
14
292,687
377,219
Obligations under finance leases
15
223,428
185,651
Other creditors
135,808
154,733
651,923
717,603
14
Loans and overdrafts
2024
2023
£
£
Bank loans
403,658
488,190
Bank overdrafts
1,209,650
1,436,121
1,613,308
1,924,311
Payable within one year
1,320,621
1,547,092
Payable after one year
292,687
377,219
WJ GROUNDWATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
14
Loans and overdrafts
(Continued)
- 22 -

Bank loans are secured by way of a fixed and floating charge over all assets held by the company, a first legal charge over the freehold property of the company and a composite company unlimited multilateral guarantee given by WJ Management Limited and WJ Groundwater Limited.

Bank loans relate to various term loans. The first with a carrying amount of £109,616 is repayable by August 2026. The second with a carrying value of £292,687 is repayable by November 2028.

15
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
291,169
271,434
In two to five years
223,428
185,651
514,597
457,085

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 3 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Hire purchase contracts are secured on the assets concerned and by way of composite company unlimited multilateral guarantee

 

16
Deferred taxation

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

Assets
Assets
2024
2023
Balances:
£
£
Fixed asset timing differences
(30,192)
(30,192)
Short term timing differences
72,034
72,034
Losses and other deductions
154,785
154,785
196,627
196,627
There were no deferred tax movements in the year.

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

WJ GROUNDWATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 23 -
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
171,138
143,496

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.

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
3,463
3,463
3,463
3,463
19
Financial commitments, guarantees and contingent liabilities

Letters of guarantees issued £140,924 (2023: £140,924).

20
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
124,957
59,545
Between two and five years
52,729
93,869
177,686
153,414
Lessor

The operating leases represent a lease of property to third parties. The lease was negotiated over terms of 1.5 years and rentals are fixed for 6 months. There is an option in place for the lessor to extend the lease terms to May 2024.

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

2024
2023
£
£
Within one year
-
0
13,500
WJ GROUNDWATER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2024
- 24 -
21
Capital commitments

Amounts contracted for but not provided in the financial statements:

2024
2023
£
£
Acquisition of tangible fixed assets
-
259,056
22
Related party transactions

The company has transacted with LDD-WJ Groundwater Limited, a company incorporated in Israel. WJ Management Limited, the parent of WJ Groundwater Limited, has a 50% shareholding in this entity.

 

During the year WJ Groundwater Limited has provided goods and services totalling £NIL (2023: £78,502). As at 30 April 2024, £525,609 (2023: £538,509) was owed to WJ Groundwater Limited by LDD-WJ Groundwater Limited.

 

The company has taken advantage of FRS 102 section 33.1A to not disclose transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.

 

During the year the following transactions were entered into with the following related parties which share a common shareholder. All transactions were entered into at arm's length:

 

Sales to partially owned subsidiaries - £135,895 (2023: £276,533)

Purchases from partially owned subsidiaries - £86,338 (2023: £38,297)

Amounts due from partially owned subsidiaries - £4,630,957 (2023: £5,848,449)

23
Ultimate controlling party

The company's ultimate parent undertaking is WJ Management Limited, a company incorporated in England and Wales.

 

The results of the company are included in the consolidated financial statements of WJ Management Limited and are available from Companies House, Crown Way, Cardiff, CF4 3UZ.

24
Directors' transactions

At the year end there was a balance of £506 (2023: £NIL) payable to WJ Groundwater in respect of one of the company directors.

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