Company registration number 01492985 (England and Wales)
EJM ENGINEERED SYSTEMS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
EJM ENGINEERED SYSTEMS LIMITED
COMPANY INFORMATION
Directors
M Morton
J Bell
AJ Bowey
C Mann
MJ Morton
P Cable
Secretary
V Morton
Company number
01492985
Registered office
Unit 1a & 1b Thornley Station Industrial Estate
Shotton Colliery
Durham
DH6 2QA
Auditor
Robson Laidler Accountants Limited
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
NE2 1TJ
EJM ENGINEERED SYSTEMS LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 20
EJM ENGINEERED SYSTEMS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

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

Review of the business

The results for the year and financial position of the company are shown in the annexed financial statements.

 

Despite the difficulties of increased purchase costs and interest rates affecting our supplier prices and hence our sales costs, there has still been a high demand for business with contracts running throughout the year and beyond.

 

Notably there has been pressure on margins caused by competitor attempts to secure business from our established clients.

 

The company continues to look for and develop opportunities for growth and investment with all four branches across the UK now operating which will help drive the business forward.

Principal risks and uncertainties

The company has an established approach to Risk Management.

 

The company's activities expose it to a variety of operational financial risks although we carefully vet equipment suppliers, sub-contractors and potential clients.

 

Operational risks on individual contracts are carefully monitored by experienced Contracts Director to ensure that Contract outcomes are in accordance with expectation.

 

Financial risks include the risk of giving credit to customers, liquidity and cash flow on non-formal contracts. Procedures are in place to mitigate each of these risks as far as possible.

Key performance indicators

Turnover totalled £16.8 million has increased by 33% compared to the prior year and realised pre-tax profit (before dividends) of £325,000, which under the current competitive climate is deemed acceptable.

 

On behalf of the board

M Morton
Director
13 January 2025
EJM ENGINEERED SYSTEMS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

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

Principal activities

The principal activity of the company continued to be that of providing high quality industrial refrigeration installations, commercial refrigeration, air conditioning, ventilation and service & maintenance.

Results and dividends

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

Ordinary dividends were paid amounting to £354,500. The directors do not recommend payment of a further dividend.

Directors

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

M Morton
J Bell
AJ Bowey
C Mann
MJ Morton
P Cable
Auditor

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

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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.

EJM ENGINEERED SYSTEMS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
M Morton
P Cable
Director
Director
13 January 2025
EJM ENGINEERED SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EJM ENGINEERED SYSTEMS LIMITED
- 4 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

EJM ENGINEERED SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EJM ENGINEERED SYSTEMS LIMITED (CONTINUED)
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and 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:

 

The risk of material misstatement due to error or fraud has been assessed in conjunction with how internal controls may mitigate any such risk. These controls are reviewed as part of the audit by performing systems walkthroughs to ensure they are operating effectively. Other substantive testing is also performed on all material balances and therefore any instances of non-compliance should be identified or considered as insignificant.

 

The laws and regulations which are considered to be significant to the entity relate to health and safety. Discussions are held with management to determine whether any breaches have occurred as well as legal expenditure being scrutinised for any evidence on non-compliance.

 

The audit was considered capable of identifying irregularities only to the extent of the substantive testing performed and from discussions with management.

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.

EJM ENGINEERED SYSTEMS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EJM ENGINEERED SYSTEMS LIMITED (CONTINUED)
- 6 -
Michael T Moran BA FCA
Senior Statutory Auditor
For and on behalf of Robson Laidler Accountants Limited
4 February 2025
Accountants
Statutory Auditor
Fernwood House
Fernwood Road
Jesmond
Newcastle upon Tyne
NE2 1TJ
EJM ENGINEERED SYSTEMS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
2024
2023
Notes
£
£
Turnover
3
16,827,386
12,642,196
Cost of sales
(15,539,310)
(11,446,835)
Gross profit
1,288,076
1,195,361
Administrative expenses
(968,960)
(729,286)
Operating profit
4
319,116
466,075
Interest receivable and similar income
5,953
1,735
Profit before taxation
325,069
467,810
Tax on profit
7
(154,820)
(108,034)
Profit for the financial year
170,249
359,776

The income statement has been prepared on the basis that all operations are continuing operations.

EJM ENGINEERED SYSTEMS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 JUNE 2024
30 June 2024
- 8 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
9
186,354
223,661
Tangible assets
10
315,562
411,686
501,916
635,347
Current assets
Stocks
11
3,062
7,200
Debtors
12
5,139,067
2,401,056
Investments
13
250
250
Cash at bank and in hand
589,164
514,084
5,731,543
2,922,590
Creditors: amounts falling due within one year
14
(4,671,969)
(1,787,839)
Net current assets
1,059,574
1,134,751
Total assets less current liabilities
1,561,490
1,770,098
Provisions for liabilities
Deferred tax liability
15
35,258
59,615
(35,258)
(59,615)
Net assets
1,526,232
1,710,483
Capital and reserves
Called up share capital
17
25,500
25,500
Profit and loss reserves
1,500,732
1,684,983
Total equity
1,526,232
1,710,483

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 13 January 2025 and are signed on its behalf by:
M Morton
P Cable
Director
Director
Company registration number 01492985 (England and Wales)
EJM ENGINEERED SYSTEMS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
25,500
1,774,207
1,799,707
Year ended 30 June 2023:
Profit and total comprehensive income
-
359,776
359,776
Dividends
8
-
(449,000)
(449,000)
Balance at 30 June 2023
25,500
1,684,983
1,710,483
Year ended 30 June 2024:
Profit and total comprehensive income
-
170,249
170,249
Dividends
8
-
(354,500)
(354,500)
Balance at 30 June 2024
25,500
1,500,732
1,526,232
EJM ENGINEERED SYSTEMS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
632,888
697,163
Income taxes paid
(156,541)
(149,756)
Net cash inflow from operating activities
476,347
547,407
Investing activities
Purchase of tangible fixed assets
(61,053)
(257,357)
Proceeds from disposal of tangible fixed assets
8,333
41,250
Interest received
5,953
1,735
Net cash used in investing activities
(46,767)
(214,372)
Financing activities
Dividends paid
(354,500)
(449,000)
Net cash used in financing activities
(354,500)
(449,000)
Net increase/(decrease) in cash and cash equivalents
75,080
(115,965)
Cash and cash equivalents at beginning of year
514,084
630,049
Cash and cash equivalents at end of year
589,164
514,084
EJM ENGINEERED SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
1
Accounting policies
Company information

EJM Engineered Systems Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 1a & 1b Thornley Station Industrial Estate, Shotton Colliery, Durham, DH6 2QA.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover 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.

1.4
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of incorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years

 

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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

Leasehold land and buildings
15% straight line
Equipment
15 - 25% straight line
Motor vehicles
25% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

EJM ENGINEERED SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 12 -
1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Other financial assets

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

EJM ENGINEERED SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
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 and bank loans 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.

Derecognition of financial liabilities

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

1.10
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 income statement 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.

EJM ENGINEERED SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Retirement benefits

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

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Sales of contracts, goods and services
16,827,386
12,642,196
2024
2023
£
£
Other revenue
Interest income
5,953
1,735
EJM ENGINEERED SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
13,250
14,250
Depreciation of owned tangible fixed assets
157,177
124,765
Profit on disposal of tangible fixed assets
(8,333)
(33,750)
Amortisation of intangible assets
37,307
37,307
Operating lease charges
314,465
265,078
5
Employees

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

2024
2023
Number
Number
54
52

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,121,911
2,800,126
Social security costs
402,855
328,938
Pension costs
391,511
372,810
3,916,277
3,501,874
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
446,214
387,932
Company pension contributions to defined contribution schemes
37,753
38,199
483,967
426,131

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

EJM ENGINEERED SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
6
Directors' remuneration
(Continued)
- 16 -
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
119,726
109,386
Company pension contributions to defined contribution schemes
15,215
15,661
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
116,781
90,013
Tax relating to prior year adjustments recognised in profit or loss
62,396
-
0
Total current tax
179,177
90,013
Deferred tax
Origination and reversal of timing differences
(24,357)
18,021
Total tax charge
154,820
108,034

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
325,069
467,810
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
81,267
116,953
Tax effect of expenses that are not deductible in determining taxable profit
1,830
1,536
Adjustments in respect of prior years
62,397
-
0
Effect of change in corporation tax rate
-
0
(19,781)
Permanent capital allowances in excess of depreciation
35,766
(257)
Profit on sale of fixed assets
(2,083)
(8,438)
Deferred Tax
(24,357)
18,021
Taxation charge for the year
154,820
108,034
EJM ENGINEERED SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
8
Dividends
2024
2023
£
£
Final paid
354,500
449,000
9
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
373,073
Amortisation and impairment
At 1 July 2023
149,412
Amortisation charged for the year
37,307
At 30 June 2024
186,719
Carrying amount
At 30 June 2024
186,354
At 30 June 2023
223,661
10
Tangible fixed assets
Leasehold land and buildings
Equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 July 2023
29,217
263,370
591,878
884,465
Additions
-
0
21,557
39,496
61,053
Disposals
-
0
(50,494)
(25,507)
(76,001)
At 30 June 2024
29,217
234,433
605,867
869,517
Depreciation and impairment
At 1 July 2023
9,861
192,593
270,325
472,779
Depreciation charged in the year
4,383
34,926
117,868
157,177
Eliminated in respect of disposals
-
0
(50,494)
(25,507)
(76,001)
At 30 June 2024
14,244
177,025
362,686
553,955
Carrying amount
At 30 June 2024
14,973
57,408
243,181
315,562
At 30 June 2023
19,356
70,777
321,553
411,686
EJM ENGINEERED SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
11
Stocks
2024
2023
£
£
Raw materials and consumables
3,062
7,200
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
3,046,930
1,884,226
Other debtors
2,028,995
471,201
Prepayments and accrued income
63,142
45,629
5,139,067
2,401,056
13
Current asset investments
2024
2023
£
£
Unlisted investments
250
250
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
2,048,015
738,372
Corporation tax
116,781
94,145
Other taxation and social security
710,182
493,599
Other creditors
46,230
35,990
Accruals and deferred income
1,750,761
425,733
4,671,969
1,787,839
15
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
35,258
59,615
EJM ENGINEERED SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
15
Deferred taxation
(Continued)
- 19 -
2024
Movements in the year:
£
Liability at 1 July 2023
59,615
Credit to profit or loss
(24,357)
Liability at 30 June 2024
35,258

The deferred tax liability set out above is expected to reverse and relates to accelerated capital allowances that are expected to mature within the same period.

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
391,511
372,810

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of £1 each
25,500
25,500
25,500
25,500
18
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
177,588
194,298
Between two and five years
113,748
217,884
291,336
412,182
EJM ENGINEERED SYSTEMS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 20 -
19
Cash generated from operations
2024
2023
£
£
Profit for the year after tax
170,249
359,776
Adjustments for:
Taxation charged
154,820
108,034
Investment income
(5,953)
(1,735)
Gain on disposal of tangible fixed assets
(8,333)
(33,750)
Amortisation and impairment of intangible assets
37,307
37,307
Depreciation and impairment of tangible fixed assets
157,177
124,765
Movements in working capital:
Decrease in stocks
4,138
7,001
(Increase)/decrease in debtors
(2,738,011)
1,258,009
Increase/(decrease) in creditors
2,861,494
(1,162,244)
Cash generated from operations
632,888
697,163
20
Analysis of changes in net funds
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
514,084
75,080
589,164
2024-06-302023-07-01falseCCH SoftwareCCH Accounts Production 2024.210M MortonJ BellAJ BoweyC MannMJ MortonP CableV Mortonfalsefalse014929852023-07-012024-06-3001492985bus:Director12023-07-012024-06-3001492985bus:Director22023-07-012024-06-3001492985bus:Director32023-07-012024-06-3001492985bus:Director42023-07-012024-06-3001492985bus:Director52023-07-012024-06-3001492985bus:Director62023-07-012024-06-3001492985bus:CompanySecretary12023-07-012024-06-3001492985bus:RegisteredOffice2023-07-012024-06-30014929852024-06-30014929852022-07-012023-06-3001492985core:RetainedEarningsAccumulatedLosses2022-07-012023-06-3001492985core:RetainedEarningsAccumulatedLosses2023-07-012024-06-3001492985core:Goodwill2024-06-3001492985core:Goodwill2023-06-30014929852023-06-3001492985core:LandBuildingscore:LeasedAssetsHeldAsLessee2024-06-3001492985core:FurnitureFittings2024-06-3001492985core:MotorVehicles2024-06-3001492985core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-06-3001492985core:FurnitureFittings2023-06-3001492985core:MotorVehicles2023-06-3001492985core:CurrentFinancialInstrumentscore:WithinOneYear2024-06-3001492985core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3001492985core:CurrentFinancialInstruments2024-06-3001492985core:CurrentFinancialInstruments2023-06-3001492985core:ShareCapital2024-06-3001492985core:ShareCapital2023-06-3001492985core:RetainedEarningsAccumulatedLosses2024-06-3001492985core:RetainedEarningsAccumulatedLosses2023-06-3001492985core:ShareCapital2022-06-3001492985core:RetainedEarningsAccumulatedLosses2022-06-30014929852023-06-30014929852022-06-3001492985core:Goodwill2023-07-012024-06-3001492985core:LandBuildingscore:LongLeaseholdAssets2023-07-012024-06-3001492985core:FurnitureFittings2023-07-012024-06-3001492985core:MotorVehicles2023-07-012024-06-3001492985core:UKTax2023-07-012024-06-3001492985core:UKTax2022-07-012023-06-300149298512023-07-012024-06-300149298512022-07-012023-06-300149298522023-07-012024-06-300149298522022-07-012023-06-3001492985core:Goodwill2023-06-3001492985core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-06-3001492985core:FurnitureFittings2023-06-3001492985core:MotorVehicles2023-06-3001492985core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-07-012024-06-3001492985core:CurrentFinancialInstrumentscore:UnlistedNon-exchangeTraded2024-06-3001492985core:CurrentFinancialInstrumentscore:UnlistedNon-exchangeTraded2023-06-3001492985core:WithinOneYear2024-06-3001492985core:WithinOneYear2023-06-3001492985core:BetweenTwoFiveYears2024-06-3001492985core:BetweenTwoFiveYears2023-06-3001492985bus:PrivateLimitedCompanyLtd2023-07-012024-06-3001492985bus:FRS1022023-07-012024-06-3001492985bus:Audited2023-07-012024-06-3001492985bus:FullAccounts2023-07-012024-06-30xbrli:purexbrli:sharesiso4217:GBP