Company registration number 12222572 (England and Wales)
OBJECTIVE HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
OBJECTIVE HOLDINGS LIMITED
COMPANY INFORMATION
Director
Mr M L Bridges
Company number
12222572
Registered office
Engineering House
Westfield Industrial Estate
Second Avenue
RADSTOCK
Banes
BA3 4BH
Auditor
Old Mill Audit Limited
Maltravers House
Petters Way
YEOVIL
Somerset
BA20 1SH
OBJECTIVE HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 4
Director's report
5
Director's responsibilities statement
6
Independent auditor's report
7 - 9
Profit and loss account
10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 25
OBJECTIVE HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The director presents the strategic report for the year ended 30 September 2024.
Fair review of the business
Bridges remains on track to achieve its 2030 goal to be a national UK water contractor. Our trading year to 30th September 2024 saw another year of growth. The business continued to establish its structure making it fit for our 2030 plans.
Our unwavering focus on our purpose ‘to engineer sustainable assets that our valued customers are proud to own and operate’ continues to culturally unite the people of Bridges, whilst relentlessly pursue our three key values;
SAFE PEOPLE - HAPPY PEOPLE – SUSTAINABLE BUSINESS
We took a different approach to our staff survey in 2024 by entering the ‘Sunday Times best places to work’ which takes its barometer from a detailed staff survey. We were delighted that over 75% of Bridges people supported this survey demonstrating a high level of engagement.
The ultimate accolade was to be recognised as one of Sunday Times Best Places to Work in 2024 with the business being recognised in the Sunday Times Best Places to Work Supplement published on Sunday 12th May, aptly named ‘SHINY HAPPY PEOPLE’
SAFE PEOPLE
Our dedicated colleagues at Bridges demonstrate our relentless commitment to safety and our strong safety culture. We have continued our investment in essential training with a record investment in training during the year, ensuring we fully embed our ‘Safety First’ attitudinal approach. This was recognised for another year by maintaining a ‘gold standard’ with our RoSPSA award.
Our strong safety culture is evident now in its fourth year, by our monthly business-wide standdown where all team members join our online, interactive monthly update. Every month a member of the senior leadership team delivers the monthly safety statistics alongside internal and external learning. In addition to this, every month a senior leadership member runs a monthly safety or wellbeing topic to maintain all aspects of safety and wellbeing at the forefront of our thoughts.
As part of our focused business planning, Bridges has consistently developed a ‘safe people plan’, which sets out a timeline of planned improvements and new initiatives that persistently focus on keeping Bridges people safe.
HAPPY PEOPLE
We continue to build on our team of ‘happy people’ fully recognising the challenges that exist in today’s world of both inside and outside of work. Our support network for our people, originates from our people, with our mental health community growing to 18 team members in the year. We have continued with our mind management programme, now approaching its fifth year and also successfully completed the first two cohorts of our in house ‘Authentic Leadership Programme’ alongside successfully completing the first year of our new VIP appraisal system.
We continue to review metrics against our core value ‘happy people’ and we include highlights of this information below:
Staff Retention continues to hold strong – We continue to be above national average for staff retention (88%) and significantly better than our industry average.
OBJECTIVE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
OBJECTIVE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Business sustainability again this year continues to be at the forefront of our colleagues’ minds at Bridges. We want to ensure we have a business that grows sustainably, delivers a fair and sustainable return alongside looking after the people and planet which we serve.
In the Financial Year 2024, we achieved a favourable increase in turnover and gross profit compared to 2023. During this period, we strategically allocated internal investments towards strengthening our administrative infrastructure and workforce. This deliberate approach has resulted in a slight reduction in operating profit relative to 2023, aligning with our long-term revenue forecasts as we transition into AMP8. We anticipate to see further improvements to our operating profit margin over the next few Financial Years, alongside revenue growth.
Our project delivery model supports working with both main contractors and direct to clients, and during this year we have continued to develop our inhouse capabilities to deliver turnkey solutions. This has resulted in our work delivered directly to water companies increasing to 80%.
In the previous year, we established a dedicated upfront engineering team focused on early contract development. In this year, we have appointed two Principal Engineers further bolstering our inhouse design capabilities and delivery of turnkey solutions.
The industries in which we work support modern methods of construction, and as a result, systems manufactured in our new facilities were installed across the UK in the Water, Wastewater, Nuclear and Materials Handling sectors. This supported our goal to not only be the leading ‘off site manufacturing’ specialist but also have a focus of an ‘all under one roof’ approach. This approach reduces carbon from vehicle movements and provides our clients one place, where they can visit to view their project progressing off site. Our offering now includes Motor Control Centres, Control Panels, DWI approved fabrications, Ferric/Caustic/Orthophosphoric Dosing Systems, Sample Boards, Electrical off-site components, Packaged skids through to major off site manufactured systems.
We continue to recognise the challenges presented over the next decade across the UK water industry to meet the national environmental programme (NEP/WINNEP), and to this end we have increased our production lines enabling us to double our output of chemical dosing packages to meet the demand across our existing and forecast client base.
Our sustainability roadmap remains on track with a growing fleet of electric vehicles, and we are pleased to have installed and commissioned a solar array of 392 panels at our headquarters ‘Engineering House’ where will are now able to generate an estimated 165,892kwh/year of electricity resulting in avoiding carbon dioxide emissions of 77,346kg/year.
Principal risks and uncertainties
During the year the challenges endured, due to COVID, relating back to the start of the water industry cycle AMP7 had resulted in budgetary overspends due to unprecedented cost increases against the agreed budgets. This resulted in a number of projects being delayed to AMP8 which starts 1st April 2025. Bridges have been fortunate to have secured and designed this work which has given us a fantastic workload in excess of £57m, as we start AMP8.
Materials
The water industry along with many other industries has suffered from material shortages and as we move to the year ahead Bridges has remained focused on strategic relationships to ensure any shortages or delays are understood as early as possible and mitigated.
Labour
As a sector, engineering suffers from being under resourced in all areas and this will be amplified by the enormous, forecasted growth. Bridges will continue to attract new talent in multiple ways including: Apprenticeships, skills boot camps, internal promotions and attracting talent from both inside and outside of our sectors.
Balance Sheet Disclosure commentary:
Subsequent to the reporting date, Bridges (Electrical Engineers) Limited transferred a property with a carrying value of £1,084,140 as at 3 January 2025 to a 100% group entity, Objective Holdings Limited. The transfer was made at net book value, and no gain or loss arose on the transaction.
OBJECTIVE HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
Key performance indicators
The company's key performance indicators during the year were as follows:
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Current assets: current liabilities (current ratio) | | | | |
Mr M L Bridges
Director
7 February 2025
OBJECTIVE HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
The director presents his annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principal activity of the company is letting of commercial property.
Results and dividends
The results for the year are set out on page 10.
Ordinary dividends were paid amounting to £248,000. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr M L Bridges
Auditor
Old Mill Audit Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the business and future developments.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr M L Bridges
Director
7 February 2025
OBJECTIVE HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
OBJECTIVE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OBJECTIVE HOLDINGS LIMITED
- 7 -
Opinion
We have audited the financial statements of Objective Holdings Limited (the 'company') for the year ended 30 September 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:
give a true and fair view of the state of the company's affairs as at 30 September 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.
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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the director with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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:
the information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
OBJECTIVE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OBJECTIVE HOLDINGS LIMITED (CONTINUED)
- 8 -
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 director's 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:
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 remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
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.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We 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 and enquiries with management. 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: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
OBJECTIVE HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF OBJECTIVE HOLDINGS LIMITED (CONTINUED)
- 9 -
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.
Stuart Grimster FCA
Senior Statutory Auditor
For and on behalf of Old Mill Audit Limited
7 February 2025
Statutory Auditor
Maltravers House
Petters Way
YEOVIL
Somerset
BA20 1SH
OBJECTIVE HOLDINGS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
196,250
165,000
Administrative expenses
(27,059)
(21,710)
Operating profit
4
169,191
143,290
Interest receivable and similar income
7
150,785
810,850
Interest payable and similar expenses
8
(119,019)
(102,810)
Profit before taxation
200,957
851,330
Tax on profit
9
(17,839)
(10,830)
Profit for the financial year
183,118
840,500
The profit and loss account has been prepared on the basis that all operations are continuing operations.
OBJECTIVE HOLDINGS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
£
£
Profit for the year
183,118
840,500
Other comprehensive income
-
-
Total comprehensive income for the year
183,118
840,500
OBJECTIVE HOLDINGS LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
1,790,779
1,809,178
Investments
12
250
250
1,791,029
1,809,428
Current assets
Debtors
14
947,455
939,897
Cash at bank and in hand
27,121
33,702
974,576
973,599
Creditors: amounts falling due within one year
15
(207,978)
(123,573)
Net current assets
766,598
850,026
Total assets less current liabilities
2,557,627
2,659,454
Creditors: amounts falling due after more than one year
16
(1,463,416)
(1,500,361)
Net assets
1,094,211
1,159,093
Capital and reserves
Called up share capital
18
250
250
Profit and loss reserves
1,093,961
1,158,843
Total equity
1,094,211
1,159,093
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 7 February 2025
Mr M L Bridges
Director
Company registration number 12222572 (England and Wales)
OBJECTIVE HOLDINGS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 13 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
250
978,343
978,593
Year ended 30 September 2023:
Profit and total comprehensive income
-
840,500
840,500
Dividends
10
-
(660,000)
(660,000)
Balance at 30 September 2023
250
1,158,843
1,159,093
Year ended 30 September 2024:
Profit and total comprehensive income
-
183,118
183,118
Dividends
10
-
(248,000)
(248,000)
Balance at 30 September 2024
250
1,093,961
1,094,211
OBJECTIVE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
1
Accounting policies
Company information
Objective Holdings Limited is a private company limited by shares incorporated in England and Wales. The registered office is Engineering House, Westfield Industrial Estate, Second Avenue, RADSTOCK, Banes, BA3 4BH.
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.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Bridges TopCo Limited. These consolidated financial statements are available from its registered office, Engineering House Second Avenue, Westfield Industrial Estate, Radstock, Banes, BA3 4BH.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
1.2
Going concern
Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
OBJECTIVE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue comprises rents received or receivable on freehold property.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold buildings
1% straight line
Freehold land is not depreciated.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
OBJECTIVE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
OBJECTIVE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
OBJECTIVE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.9
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.
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 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.
1.11
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
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
OBJECTIVE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
3
Turnover and other revenue
2024
2023
£
£
Other revenue
Interest income
2,785
850
Dividends received
148,000
810,000
Rental income
196,250
165,000
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
18,399
14,712
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
2,710
2,500
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Directors
1
1
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
2,785
850
Income from fixed asset investments
Income from shares in group undertakings
148,000
810,000
Total income
150,785
810,850
OBJECTIVE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 20 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
119,019
102,810
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
17,839
10,830
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
200,957
851,330
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
50,239
187,378
Tax effect of income not taxable in determining taxable profit
(37,000)
(178,267)
Deferred tax adjustments in respect of prior years
171
Tax at marginal rate
(1,675)
Fixed asset differences
4,600
3,238
Other differences
(15)
Taxation charge for the year
17,839
10,830
10
Dividends
2024
2023
£
£
Interim paid
248,000
660,000
OBJECTIVE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 21 -
11
Tangible fixed assets
Freehold buildings
£
Cost
At 1 October 2023 and 30 September 2024
1,839,829
Depreciation and impairment
At 1 October 2023
30,651
Depreciation charged in the year
18,399
At 30 September 2024
49,050
Carrying amount
At 30 September 2024
1,790,779
At 30 September 2023
1,809,178
12
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
13
250
250
13
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Bridges (Electrical Engineers) Limited
Engineering House Second Avenue, Westfield Industrial Estate, Radstock, Banes, BA3 4BH
Ordinary, Ordinary A, Ordinary B
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Bridges (Electrical Engineers) Limited
3,840,509
1,612,312
OBJECTIVE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
879,080
829,740
Other debtors
54,350
95,307
Prepayments and accrued income
14,025
14,850
947,455
939,897
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
17
40,845
44,743
Amounts owed to group undertakings
157,793
68,000
Corporation tax
9,340
10,830
207,978
123,573
The bank loan of £40,845 (2023 - £44,743) is secured by way of a fixed and floating charge in favour of Lloyds Bank Commercial Financial Limited. The fixed charge is secured over the freehold land and buildings.
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
17
1,463,416
1,500,361
The bank loan of £1,463,416 (2023 - £1,500,361) is secured by way of a fixed and floating charge in favour of Lloyds Bank Commercial Financial Limited. The fixed charge is secured over the freehold land and buildings.
Amounts included above which fall due after five years are as follows:
Payable by instalments
1,095,751
1,321,382
OBJECTIVE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 23 -
17
Loans and overdrafts
2024
2023
£
£
Bank loans
1,504,261
1,545,104
Payable within one year
40,845
44,743
Payable after one year
1,463,416
1,500,361
The long-term loans are secured by fixed and floating charges over the freehold land and buildings. The loan duration remaining is 17 years. The rate of interest payable on the loan will be Base Rate plus an interest margin of 2.58% per annum.
18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
100
100
100
100
Ordinary B shares of £1 each
50
50
50
50
Ordinary shares of £1 each
100
100
100
100
250
250
250
250
Ordinary shares carry unrestricted rights to vote, receive dividends and to receive repayment of capital invested on the winding up of the company.
Ordinary 'A' and 'B' shares carry rights to receive dividends and to receive repayment of capital invested on the winding up of the company.
19
Financial commitments, guarantees and contingent liabilities
This company is acting as a guarantor for Bridges (Electrical Engineers) Limited, a subsidiary of this company. At 30 September 2024, Bridges (Electrical Engineers) Limited had bank loans and overdrafts totalling £557,505 (2023 - £785,365) which are covered by this guarantee.
OBJECTIVE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 24 -
20
Operating lease commitments
Lessor
At the reporting end date the company had contracted with tenants for the following minimum lease payments:
2024
2023
£
£
Within one year
240,000
165,000
Between two and five years
260,000
13,750
500,000
178,750
21
Events after the reporting date
On 3 January 2025 this entity acquired property with a carrying value of £1,084,140 from Bridges (Electrical Engineers) Limited, a 100% group entity. The transfer was undertaken at net book value, and no gain or loss arose on the transaction.
22
Related party transactions
2024
2023
Amounts due to related parties
£
£
Entities with control, joint control or significant influence over the company
157,793
68,000
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Entities over which the entity has control, joint control or significant influence
879,080
829,740
Other related parties
54,350
95,307
Other information
Advantage has been taken of the exemption available under Section 33.1A - Related Party Disclosures not to disclose inter-group transactions on the grounds that the company is a wholly owned subsidiary in a group that prepares publicly available consolidated accounts.
OBJECTIVE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
23
Directors' transactions
Advances or credits have been granted by the company to its directors as follows:
This loan is unsecured and has no repayment terms.
Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
Directors Loan
2.25
95,307
81,965
2,785
(125,707)
54,350
95,307
81,965
2,785
(125,707)
54,350
24
Ultimate controlling party
The company is controlled by Bridges TopCo Limited by virtue of it being a 100% subsidiary. The ultimate controlling party is Mr M L Bridges. The results of Objective Holdings Limited are included in the consolidated financial statements of Bridges TopCo Limited which are available from companies house or their registered office: Engineering House, Second Avenue, Westfield Industrial Estate, Radstock, BA3 4BH.
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