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Registration number: 05950064

SKN Electrical Services Limited

Annual Report and Financial Statements

for the Year Ended 31 March 2024

 

SKN Electrical Services Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Statement of Cash Flows

12

Notes to the Financial Statements

13 to 23

 

SKN Electrical Services Limited

Company Information

Directors

Mr S K Naismith

Ms M Folkard

Company secretary

Mr S Vanderdeyl

Registered office

212a Red Bank Road
Bispham
Blackpool
FY2 0HJ

Auditors

Crossley & Davis Chartered Accountants
Ground Floor, Seneca House
Links Point, Amy Johnson Way
Blackpool
Lancashire
FY4 2FF

 

SKN Electrical Services Limited

Strategic Report for the Year Ended 31 March 2024

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

Principal activity

The principal activity of the company is the provision of technical personnel to carry out engineering solutions for the oil, gas, petrochemical and pharmaceutical industries.

Fair review of the business

The financial performance has declined on the previous year, as evidenced in the key financial indicators; operating profit has decreased significantly to £315,492, down from £1,339,853 in the prior year . Turnover has also significantly decreased by 7.2%, and stands at £21,350,625 in the current year, this is due to the following factors:

Whilst sales out of Australia increased on the previous year, this was outweighed by a decrease in turnover in the UK and Baku. The contract with TotalEnergies EP in Denmark put on hold until 2025 by the client, resulting in reduced turnover for 2024 in this sector. Also, Baku turnover was lower than previous year due to 3 major projects coming to an end in 2023. Operating profit decreased due to increases in cost of living; higher rates to personnel and specialised contractors; as well as effects of diminishing economies of scale. The average Brent oil price in 2024 fell to $80 from $94.96 the previous year combined with Windfall tax, 75%, on Operators; increasing the pressure to keep rates low to clients whilst absorbing increased business costs.

Principal risks and uncertainties

The principal risk for the company is contracts not being renewed, and the sector is becoming more competitive generally. The company however has a good reputation in the industry and a strong confidence can be placed on their ability to retain contracts and secure new contracts.

The company is also susceptible to movements in the oil price, as well as economic and political interference in this area; changes in the level of Windfall Tax applied to Operators increasing from 75% to 78%; increasing cost of living; securing competent personnel at increasing costs, with proposed increases in employers NIC.

Approved and authorised by the Board on 31 January 2025 and signed on its behalf by:
 

.........................................
Ms M Folkard
Director

 

SKN Electrical Services Limited

Directors' Report for the Year Ended 31 March 2024

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

Directors of the company

The directors who held office during the year were as follows:

Mr S K Naismith

Ms M Folkard

Future developments

The company will continue with the activities currently being carried out, as they have a strong unique selling point and a good reputation with customers.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Branches outside the United Kingdom

Company branches exist in Azerbajan, Australia and Denmark.

 

SKN Electrical Services Limited

Directors' Report for the Year Ended 31 March 2024

Statement of directors responsibilities
The directors acknowledge their responsibilities 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:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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. Both Directors have taken steps to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

Approved and authorised by the Board on 31 January 2025 and signed on its behalf by:
 

.........................................
Ms M Folkard
Director

 

SKN Electrical Services Limited

Independent Auditor's Report to the Members of SKN Electrical Services Limited

Opinion

We have audited the financial statements of SKN Electrical Services Limited (the 'company') for the year ended 31 March 2024, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and 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 auditor 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 original financial statements were 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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report 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.

 

SKN Electrical Services Limited

Independent Auditor's Report to the Members of SKN Electrical Services Limited

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], 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 Responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

SKN Electrical Services Limited

Independent Auditor's Report to the Members of SKN Electrical Services Limited

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 designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could 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, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, 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.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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.

......................................
Mr S D Mondy (Senior Statutory Auditor)
For and on behalf of Crossley & Davis Chartered Accountants, Statutory Auditor

Ground Floor, Seneca House
Links Point, Amy Johnson Way
Blackpool
Lancashire
FY4 2FF

31 January 2025

 

SKN Electrical Services Limited

Profit and Loss Account for the Year Ended 31 March 2024

Note

2024
£

2023
£

Turnover

3

21,350,625

22,997,931

Cost of sales

 

(15,607,235)

(16,972,081)

Gross profit

 

5,743,390

6,025,850

Administrative expenses

 

(5,462,447)

(4,685,996)

Other operating income

4

34,549

-

Operating profit

6

315,492

1,339,854

Other interest receivable and similar income

8

478

823

Interest payable and similar expenses

9

83,200

(29,248)

   

83,678

(28,425)

Profit before tax

 

399,170

1,311,429

Tax on profit

13

(105,326)

(278,200)

Profit for the financial year

 

293,844

1,033,229

The above results were derived from continuing operations.

 

SKN Electrical Services Limited

Statement of Comprehensive Income for the Year Ended 31 March 2024

2024
£

2023
£

Profit for the year

293,844

1,033,229

Deficit on property, plant and equipment revaluation

-

(491,940)

Total comprehensive income for the year

293,844

541,289

 

SKN Electrical Services Limited

(Registration number: 05950064)
Balance Sheet as at 31 March 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

14

654,994

634,647

Investment property

15

347,291

347,291

 

1,002,285

981,938

Current assets

 

Stocks

16

2,484,003

1,341,010

Debtors

17

6,316,800

7,077,355

Cash at bank and in hand

 

414,199

833,036

 

9,215,002

9,251,401

Creditors: Amounts falling due within one year

19

(1,740,339)

(2,057,494)

Net current assets

 

7,474,663

7,193,907

Total assets less current liabilities

 

8,476,948

8,175,845

Provisions for liabilities

20

(45,921)

(38,662)

Net assets

 

8,431,027

8,137,183

Capital and reserves

 

Called up share capital

100

100

Revaluation reserve

(491,940)

(491,940)

Retained earnings

8,922,867

8,629,023

Shareholders' funds

 

8,431,027

8,137,183

Approved and authorised by the Board on 31 January 2025 and signed on its behalf by:
 

.........................................
Ms M Folkard
Director

 

SKN Electrical Services Limited

Statement of Changes in Equity for the Year Ended 31 March 2024

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 April 2023

100

(491,940)

8,629,023

8,137,183

Profit for the year

-

-

293,844

293,844

At 31 March 2024

100

(491,940)

8,922,867

8,431,027

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

At 1 April 2022

100

-

7,595,794

7,595,894

Profit for the year

-

-

1,033,229

1,033,229

Other comprehensive income

-

(491,940)

-

(491,940)

Total comprehensive income

-

(491,940)

1,033,229

541,289

At 31 March 2023

100

(491,940)

8,629,023

8,137,183

 

SKN Electrical Services Limited

Statement of Cash Flows for the Year Ended 31 March 2024

Note

2024
£

2023
£

Cash flows from operating activities

Profit for the year

 

293,844

1,033,229

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

6

54,197

70,074

Profit on disposal of tangible assets

5

-

(405)

Finance income

8

(478)

(823)

Finance costs

9

3,382

3,128

Income tax expense

13

105,326

278,200

Rounding correction

 

(1)

-

 

456,270

1,383,403

Working capital adjustments

 

(Increase)/decrease in stocks

16

(1,142,993)

1,132,853

Decrease/(increase) in trade debtors

17

759,043

(2,206,251)

Decrease in trade creditors

19

(27,474)

(545,026)

Cash generated from operations

 

44,846

(235,021)

Income taxes (paid)/received

13

(386,236)

2,488

Net cash flow from operating activities

 

(341,390)

(232,533)

Cash flows from investing activities

 

Interest received

8

478

823

Acquisitions of tangible assets

(74,543)

(1,025)

Proceeds from sale of tangible assets

 

-

2,001

Net cash flows from investing activities

 

(74,065)

1,799

Cash flows from financing activities

 

Interest paid

9

(3,382)

(3,128)

Net decrease in cash and cash equivalents

 

(418,837)

(233,862)

Cash and cash equivalents at 1 April

 

833,036

1,066,897

Cash and cash equivalents at 31 March

 

414,199

833,035

Out of balance to Cash and cash equivalents category (adjusted for overdrafts)

 

-

(1)

 

SKN Electrical Services Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
212a Red Bank Road
Bispham
Blackpool
FY2 0HJ

The principal place of business is:
12 Albyn Terrace
Aberdeen
AB10 1YP

These financial statements were authorised for issue by the Board on 31 January 2025.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The financial statements have been prepared on a going concern basis.

Management has considered the consequences of Covid -19, along with other events and conditions, and have determined that Covid 19 does not create a material uncertainity that casts significant doubt upon the entity's ability to continue as a going concern.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

 

SKN Electrical Services Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

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

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Plant and machinery

20% straight line

Motor vehicles

25% reducing balance

Equipment

25% reducing balance

Software

33% straight line

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined by the directors. The values take into account observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

 

SKN Electrical Services Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay furter contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

SKN Electrical Services Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2024
£

2023
£

Sale of goods

21,350,625

22,997,931

The analysis of the company's Turnover for the year by market is as follows:

2024
£

2023
£

UK

16,493,287

17,701,480

Europe

3,170,838

5,018,057

Rest of world

1,686,500

278,394

21,350,625

22,997,931

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2024
£

2023
£

Miscellaneous other operating income

34,549

-

5

Other gains and losses

The analysis of the company's other gains and losses for the year is as follows:

2024
£

2023
£

Gain on disposal of Tangible assets

-

405

6

Operating profit

Arrived at after charging/(crediting)

2024
£

2023
£

Depreciation expense

54,197

70,074

Profit on disposal of property, plant and equipment

-

(405)

7

Government grants

Included within other operating income are government grants receivable. The grants relate to the job
retention scheme. Government grants have been recognised on an
accruals basis.

The amount of grants recognised in the financial statements was £Nil (2023 - £Nil).

 

SKN Electrical Services Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

8

Other interest receivable and similar income

2024
£

2023
£

Interest income on bank deposits

478

294

Other finance income

-

529

478

823

9

Interest payable and similar expenses

2024
£

2023
£

Interest on bank overdrafts and borrowings

839

237

Interest expense on other finance liabilities

2,543

2,891

Foreign exchange (losses)/gains

(86,582)

26,120

(83,200)

29,248

10

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2024
£

2023
£

Wages and salaries

3,524,791

2,681,697

Social security costs

185,699

140,792

Pension costs, defined contribution scheme

66,982

39,451

Other employee expense

82,745

54,067

3,860,217

2,916,007

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2024
No.

2023
No.

Production

60

59

Administration and support

30

17

90

76

 

SKN Electrical Services Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

11

Directors' remuneration

The directors' remuneration for the year was as follows:

2024
£

2023
£

Remuneration

293,583

299,583

Contributions paid to money purchase schemes

2,642

2,641

296,225

302,224

In respect of the highest paid director:

2024
£

2023
£

Remuneration

195,000

151,583

Benefits under long-term incentive schemes (excluding shares)

1,321

1,321

12

Auditors' remuneration

2024
£

2023
£

Audit of the financial statements

9,000

8,100


 

The company entered into a liability limitation agreement with the auditor on the 3rd February 2021. The liability of the auditor in respect of any claim or claims made by the company is limited to £4,000,000 inclusive of interest and costs.

13

Taxation

Tax charged/(credited) in the profit and loss account

2024
£

2023
£

Current taxation

UK corporation tax

53,883

243,399

Foreign tax

44,184

35,313

Total current income tax

98,067

278,712

Deferred taxation

Arising from origination and reversal of timing differences

7,259

(512)

Tax expense in the income statement

105,326

278,200

 

SKN Electrical Services Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2023 - the same as the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

2024
£

2023
£

Profit before tax

399,170

1,311,429

Corporation tax at standard rate

99,793

249,171

Tax (decrease)/increase from effect of capital allowances and depreciation

(5,087)

13,058

Tax increase/(decrease) from other short-term timing differences

7,259

(512)

Effect of expense not deductible in determining taxable profit (tax loss)

3,361

6,020

Effect of foreign tax rates

-

10,463

Total tax charge

105,326

278,200

Deferred tax

Deferred tax assets and liabilities

2024

Asset
£

Liability
£

Excess of taxation allowances over depreciation on fixed assets

-

45,921

-

45,921

2023

Asset
£

Liability
£

Excess of taxation allowances over depreciation on fixed assets

-

38,662

-

38,662

 

SKN Electrical Services Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

14

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Other tangible assets
 £

Total
£

Cost or valuation

At 1 April 2023

534,560

1,042,388

303,184

1,880,132

Additions

-

74,543

-

74,543

At 31 March 2024

534,560

1,116,931

303,184

1,954,675

Depreciation

At 1 April 2023

54,560

887,741

303,184

1,245,485

Charge for the year

8,691

45,505

-

54,196

At 31 March 2024

63,251

933,246

303,184

1,299,681

Carrying amount

At 31 March 2024

471,309

183,685

-

654,994

At 31 March 2023

480,000

154,647

-

634,647

Included within the net book value of land and buildings above is £471,309 (2023 - £480,000) in respect of freehold land and buildings.
 

Revaluation

The fair value of the company's Land and buildings was revalued on 18 October 2022 by an independent valuer.
The property at 12 Albyn Terrace Abedeen, was independently valued in October 2022 by Chartered Surveyors, Graham + Sibbald LLP.
The Market Value that they determined was £480,000, and the property has been revalued in the financial statements.

Had this class of asset been measured on a historical cost basis, the carrying amount would have been £952,380 (2023 - £970,910).

15

Investment properties

2024
£

At 1 April

347,291

At 31 March

347,291

 

SKN Electrical Services Limited

Notes to the Financial Statements for the Year Ended 31 March 2024


The investment property was purchased in August 2018 for open market value in an arms length transaction, and has since been fully refurbished in the years to 31st March 2020. The property has not been independently valued since its purchase, but the historic cost plus the refurbishment expenses is considered by the directors to materially equal the fair value of this investment property.

16

Stocks

2024
£

2023
£

Work in progress

2,484,003

1,341,010

17

Debtors

Current

Note

2024
£

2023
£

Trade debtors

 

4,386,590

5,883,020

Other debtors

 

1,894,963

1,182,644

Prepayments

 

35,247

10,179

Income tax asset

13

-

1,512

   

6,316,800

7,077,355

Details of non-current trade and other debtors

£422,000 (2023 -£330,000) of other debtors is classified as non current. The loan is to J G Kelley (Fleetwood) Ltd

18

Cash and cash equivalents

2024
£

2023
£

Cash at bank

414,199

833,036

19

Creditors

Note

2024
£

2023
£

Due within one year

 

Trade creditors

 

1,323,596

1,064,212

Social security and other taxes

 

93,211

93,008

Other payables

 

85,393

184,571

Accruals

 

104,734

292,617

Corporation Tax

13

133,405

423,086

 

1,740,339

2,057,494

 

SKN Electrical Services Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

20

Provisions for liabilities

Deferred tax
£

Total
£

At 1 April 2023

38,662

38,662

Increase (decrease) in existing provisions

7,259

7,259

At 31 March 2024

45,921

45,921

21

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £66,982 (2023 - £39,451).

22

Share capital

Allotted, called up and fully paid shares

2024

2023

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

       
 

SKN Electrical Services Limited

Notes to the Financial Statements for the Year Ended 31 March 2024

23

Dividends

Final dividends paid

2024
£

2023
£

Final dividend of £Nil per each Ordinary shares

-

-

 

 

24

Related party transactions

There were transactions with Y & R Engineering Ltd, which is owned or part owned by one or more of the shareholders of SKN Electrical Services Limited. Services provided by this company was at arms length and invoiced at market rates.

On 15th July 2019 a loan of £200,000 was made to J G Kelley Fleetwood Ltd. The majority of shares in this company are owned by the ultimate controlling parties of SKN Electical Services Limited. There is no interest payable on this loan and it is unsecured. A further £130,000 was loaned to this company in the year ended 31st March 2023. Additional loans totalling £92,000 were made to this company in the year ended 31st March 2024. As at the year end the total outstanding loan amount was £422,000 and is deemed to be fully recoverable.

The ultimate controlling parties of SKN Electrical Services Limited were Stuart Kerr Naismith and Meriol Folkard.

Summary of transactions with other related parties

There are loan balances owing to related parties as at 31 March 2024 totalling £287,418 (2023 : £484,166 ). These amounts are unsecured.

There were services invoiced by related parties during the year ended 31 March 2024 totalling £ nil (2022 : £nil).