Company registration number 00439056 (England and Wales)
J MILLS (CONTRACTORS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
J MILLS (CONTRACTORS) LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Statement of income and retained earnings
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 23
J MILLS (CONTRACTORS) LIMITED
COMPANY INFORMATION
- 1 -
Directors
Dr P R Noall
Mr S G Hughes-Solomon
Mr P Noall
Mr G Owen
Company number
00439056
Registered office
8 Brindley Road
City Park
Old Trafford
Manchester
England
M16 9HQ
Auditor
Xeinadin Audit Limited
Riverside House, Kings Reach Business Park
Yew Street
Stockport
Cheshire
United Kingdom
SK4 2HD
J MILLS (CONTRACTORS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

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

Review of the business

 

Highlights: The year ending June 2024 was marked by challenges from external economic factors and rising operational costs. Despite these, J Mills maintained a solid foundation for future growth, supported by a resilient Maintenance division. Overall profitability was significantly reduced compared to FY23, but the company remains well-positioned to capitalise on expected demand in FY25.

 

Contracts Division: The Contracts division was impacted by wider economic events, including the July 2024 general election and investor uncertainty. This slowdown led to deferred projects, reducing immediate turnover and profitability. However, this latent demand means substantial opportunities in FY25.

 

Maintenance Division: The Maintenance division remained relatively stable, providing consistent revenue. Slight dips in demand affected both turnover and gross profit margins. Efficient operations and a commitment to client satisfaction helped mitigate the full impact of these challenges.

 

Cost Pressures and Profitability: Rising operational costs significantly affected overall company profitability. Key areas of increase included people-related expenses, vehicle costs, professional services, and insurance. These costs placed additional pressure on margins, reducing net profitability.

 

Key Performance Indicators (KPIs):

 

Principal Risks and Uncertainties: J Mills continues to face risks including increased complexity and demands, an uncertain economic environment, and evolving client needs and industry standards. The company remains committed to monitoring and addressing these risks, ensuring readiness to adapt and seize new opportunities.

 

Summary and Conclusion:

FY24 brought challenges with reduced Contracts demand and rising costs. However, stable Maintenance performance and expected FY25 demand offer opportunities to grow the client base and strengthen operations. J Mills Contractors is well-prepared to seize these opportunities and achieve growth.

On behalf of the board

Peter Noall
Director
27 January 2025
J MILLS (CONTRACTORS) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

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

Principal activities

The principal activity of the company is split into two activities. Firstly, large commercial refurbishment

and small commercial works. Secondly, responsive and planned preventative maintenance.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £258,306. 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:

Dr P R Noall
Mr S G Hughes-Solomon
Mr P Noall
Mr G Owen
Financial instruments

Objectives and policies

The company holds or issues financial instruments in order to achieve three main objectives, being:

i) to finance its operations;

ii) to manage its exposure to interest, credit and liquidity risks arising from its operations and from its sources of finance; and

iii) for trading purposes.

In addition various financial instruments (e.g. trade debtors, trade creditors, accruals and

prepayments) arise directly from the company's operations.

Transactions in financial instruments result in the company assuming or transferring to another party one or more of the financial risks described below.

Price risk, credit risk, liquidity risk and cash flow risk

 

Interest rate risk

The company manages the interest rate risk by agreeing terms of finance with hire purchase

providers in advance and also managing the invoice finacing facility so as to not draw down unused amounts.

 

Credit risk

The company monitors credit risk closely and considers that its current policies of credit checks meets its objectives of managing exposure to credit risk.

The company has no significant concentrations of credit risk. Amounts shown in the balance sheet best represent the maximum credit risk exposure in the event other parties fail to perform their obligations under financial instruments.

 

Liquidity risk

Working capital and liquidity is managed as part of day to day business routines such as the company has no significant concentrations of liquidity risk. Working capital facilities like the invoice financing allows to maintain a good level of liquid funds.

Auditor

The auditor, Xeinadin Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

J MILLS (CONTRACTORS) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
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
Dr P R Noall
Mr S G Hughes-Solomon
Director
Director
27 January 2025
J MILLS (CONTRACTORS) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

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.

J MILLS (CONTRACTORS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF J MILLS (CONTRACTORS) LIMITED
- 6 -
Opinion

We have audited the financial statements of J Mills (Contractors) Limited (the 'company') for the year ended 30 June 2024 which comprise the statement of income and retained earnings, the balance sheet 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:

J MILLS (CONTRACTORS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J MILLS (CONTRACTORS) LIMITED
- 7 -
Matters on which we are required to report by exception

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

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

J MILLS (CONTRACTORS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF J MILLS (CONTRACTORS) LIMITED
- 8 -

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

 

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

 

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

 

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

 

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

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

Use of our report

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

Philip Jones BA Hons (FCCA)
Senior Statutory Auditor
For and on behalf of Xeinadin Audit Limited
27 January 2025
Accountants
Statutory Auditor
Riverside House, Kings Reach Business Park
Yew Street
Stockport
Cheshire
United Kingdom
SK4 2HD
J MILLS (CONTRACTORS) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 30 JUNE 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
13,010,663
14,671,000
Cost of sales
(10,122,616)
(10,601,486)
Gross profit
2,888,047
4,069,514
Administrative expenses
(2,603,550)
(2,184,199)
Exceptional item
4
-
0
(851,800)
Operating profit
9
284,497
1,033,515
Interest receivable and similar income
7
40,868
14,045
Interest payable and similar expenses
8
(4,822)
(202)
Profit before taxation
320,543
1,047,358
Tax on profit
10
(81,129)
(366,350)
Profit for the financial year
239,414
681,008
Retained earnings brought forward
6,217,372
5,975,580
Dividends
11
(258,306)
(439,216)
Retained earnings carried forward
6,198,480
6,217,372

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

J MILLS (CONTRACTORS) LIMITED
BALANCE SHEET
AS AT
30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,324,462
20,928
Current assets
Stocks
13
344,534
316,680
Debtors
14
7,164,520
7,302,897
Cash at bank and in hand
1,339,324
2,472,952
8,848,378
10,092,529
Creditors: amounts falling due within one year
15
(2,424,629)
(3,376,582)
Net current assets
6,423,749
6,715,947
Total assets less current liabilities
7,748,211
6,736,875
Creditors: amounts falling due after more than one year
16
(1,268,594)
(517,313)
Provisions for liabilities
Deferred tax liability
278,947
-
0
(278,947)
-
Net assets
6,200,670
6,219,562
Capital and reserves
Called up share capital
18
1,200
1,200
Other reserves
990
990
Profit and loss reserves
6,198,480
6,217,372
Total equity
6,200,670
6,219,562

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 27 January 2025 and are signed on its behalf by:
Dr P R Noall
Mr S G Hughes-Solomon
Director
Director
Company registration number 00439056 (England and Wales)
J MILLS (CONTRACTORS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 July 2022
1,200
990
5,975,580
5,977,770
Year ended 30 June 2023:
Profit and total comprehensive income
-
-
681,008
681,008
Dividends
11
-
-
(439,216)
(439,216)
Balance at 30 June 2023
1,200
990
6,217,372
6,219,562
Year ended 30 June 2024:
Profit and total comprehensive income
-
-
239,414
239,414
Dividends
11
-
-
(258,306)
(258,306)
Balance at 30 June 2024
1,200
990
6,198,480
6,200,670
J MILLS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
1
Accounting policies
Company information

The company is a private company limited by share capital, incorporated in the UK.

 

The principal activity of the Company is split into two activities. Firstly, large commercial refurbishment and small commercial works. Secondly, responsive and planned preventative maintenance.

 

The address of its registered office is:

8 Brindley Road

City Park

Old Trafford

Manchester

M16 9HQ

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

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

 

 

The financial statements of the company are consolidated in the financial statements of Marplace (Number 754) Limited. These consolidated financial statements are available from its registered office, 8 Brindley Road, City Park, Old Trafford, Manchester, England, M16 9HQ.

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.

J MILLS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 13 -
1.3
Turnover

For the large commercial refurbishment works, revenue is recognised according to the stage of completion.

For work carried out where an independent valuation has not been obtained; work in progress is provided along with the estimated profit margin.

Contract work in progress is valued at the anticipated net sales value of work done after provision for contingencies.

The profit recognised is dependent upon the completeness of the particular project.

 

For the responsive and planned preventative maintenance work, revenue is recognised upon completion of services.

 

Retentions are recognised upon completion of the project within revenue.

 

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:

Plant and equipment
25% Straight line basis
Fixtures and fittings
15% Reducing balance basis
Computers
25% Straight line basis
Motor vehicles
25% Straight line basis

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
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

J MILLS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
1.6
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.

1.7
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.

J MILLS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
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.

J MILLS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
Derecognition of financial liabilities

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

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.

1.12
Retirement benefits

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

J MILLS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
1.13
Leases

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

 

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

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

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, UK
13,010,663
14,671,000
2024
2023
£
£
Other revenue
Interest income
40,868
14,045
4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional item
-
851,800

The exceptional item disclosed in the income statement relates to the previously disclosed financial contribution to the Plumbing & Mechanical Services (UK) Industry Pension Scheme which came to light during 2019. In December 2023, the parties agreed the financial contribution for the sum of £851,800.

J MILLS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
5
Employees

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

2024
2023
Number
Number
Production
34
33
Administration and support
7
5
Other departments
16
16
Total
57
54

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,409,072
2,301,434
Social security costs
239,121
237,243
Pension costs
179,853
165,672
2,828,046
2,704,349
6
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
254,352
237,289
Company pension contributions to defined contribution schemes
36,240
25,500
290,592
262,789

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

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
210,588
147,112
Company pension contributions to defined contribution schemes
14,300
14,300
J MILLS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 19 -
7
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
40,868
14,045
8
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
4,822
-
Other interest
-
0
202
4,822
202
9
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
12,669
12,300
Depreciation of owned tangible fixed assets
98,559
5,168
Loss on disposal of tangible fixed assets
5,446
-
Operating lease charges
333,762
258,456
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(197,818)
366,350
Deferred tax
Origination and reversal of timing differences
278,947
-
0
Total tax charge
81,129
366,350

The tax rate on profit before tax for the year is the same as the standard rate of corporation tax in the UK which has been applied at 25% for the reconciliation. The corporation tax rate increased on the 1st April 2023 to 25% for profits exceeding £250,000, and a marginal rate for profits between £50,000 and £250,000. Profits £50,000 and below remained at 19%.

 

The reconciliation below includes a line to reflect the differential in the tax rate that has been applied from 1st April 2023.

J MILLS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
(Continued)
- 20 -

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
320,543
1,047,358
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
80,136
198,998
Tax effect of expenses that are not deductible in determining taxable profit
47,317
151,231
Effect of change in corporation tax rate
-
0
15,668
Permanent capital allowances in excess of depreciation
151,494
453
Tax losses
(197,442)
-
0
Other
(376)
-
0
Taxation charge for the year
81,129
366,350
11
Dividends
2024
2023
£
£
Final paid
258,306
439,216
12
Tangible fixed assets
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 July 2023
-
0
49,512
33,956
-
0
83,468
Additions
6,660
-
0
13,688
1,387,191
1,407,539
Disposals
-
0
(18,813)
(13,648)
-
0
(32,461)
At 30 June 2024
6,660
30,699
33,996
1,387,191
1,458,546
Depreciation and impairment
At 1 July 2023
-
0
30,767
31,773
-
0
62,540
Depreciation charged in the year
500
3,435
2,477
92,147
98,559
Eliminated in respect of disposals
-
0
(13,367)
(13,648)
-
0
(27,015)
At 30 June 2024
500
20,835
20,602
92,147
134,084
Carrying amount
At 30 June 2024
6,160
9,864
13,394
1,295,044
1,324,462
At 30 June 2023
-
0
18,746
2,182
-
0
20,928
J MILLS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 21 -
13
Stocks
2024
2023
£
£
Raw materials and consumables
2,000
2,000
Work in progress
342,534
314,680
344,534
316,680
14
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,628,902
2,373,494
Corporation tax recoverable
197,442
-
0
Other debtors
502,195
466,893
Prepayments and accrued income
159,220
21,063
2,487,759
2,861,450
2024
2023
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
4,676,761
4,441,447
Total debtors
7,164,520
7,302,897
15
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Obligations under finance leases
279,305
-
0
Trade creditors
984,877
1,433,033
Corporation tax
-
0
366,350
Other taxation and social security
301,133
626,305
Other creditors
662,509
658,305
Accruals and deferred income
196,805
292,589
2,424,629
3,376,582
J MILLS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 22 -
16
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
923,719
-
0
Other creditors
344,875
517,313
1,268,594
517,313
17
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
179,853
165,672

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

18
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
of £1 each
1,200
1,200
1,200
1,200
19
Credit Facility

The company has a card facility with the following details as of the reporting date:

 

Facility Type: Revolving credit card facility

Credit Limit: GBP 79,000.00

Review Date: 5 September 2024

Expiry Date: Not applicable (open-ended facility)

 

There are no specific covenants or collateral requirements associated with this facility. This facility is subject to an annual review, with the next review date set for 5 September 2024.

20
Financial commitments, guarantees and contingent liabilities

There is an inter-company guarantee in place with the parent company Marplace (Number 754) Limited. There is an unlimited security on the guarantee in favour of National Westminster Bank PLC.

J MILLS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
21
Capital commitments

Contract Hire Vehicles

The balance of the commitment due within one year is £0 (2023: £156,510), the remaining balance is all due after one year, but within five years.

 

The total amount contracted for but not provided in the financial statements was £0 (2023: £161,689).

 

Other Financial Commitments

Property Lease:

The total amount of other financial commitments not provided in the financial statements was £36,000 (2023: £36,000).

22
Ultimate controlling party

J Mills (Contractors) Limited is a subsidiary of Marplace (Number 754) Limited.

The registered office and address where copies of the group consolidated accounts can be obtained from for Marplace (Number 754) Limited is:

8 Brindley Road, City Park, Old Trafford, Manchester, M16 9HQ.

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