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Company registration number: NI614997
Michael Nugent (ES) Ltd
Financial statements
30 September 2024
Michael Nugent (ES) Ltd
Contents
Directors and other information
Strategic report
Directors report
Independent auditor's report to the members
Statement of income and retained earnings
Statement of financial position
Notes to the financial statements
Michael Nugent (ES) Ltd
Directors and other information
Directors Mr Michael Nugent
Mr Ryan Nugent
Mr Richard Gilmour
Mr Marc Nugent
Company number NI614997
Registered office 2 Tandragee Road
Pomeroy
Dungannon
Co Tyrone
BT70 3DS
Business address 2 Tandragee Road
Pomeroy
Dungannon
Co Tyrone
BT70 3DS
Auditor Corr & Corr
2nd Floor, The Cornmill
Lineside
Coalisland
Co Tyrone
BT71 4LP
Bankers Danske Bank
5-6 Market Square
Dungannon
Co Tyrone
BT70 1AB
Solicitors Doris & MacMahon
63 James Street
Cookstown
Co Tyrone
BT80 8AE
Michael Nugent (ES) Ltd
Strategic report
Year ended 30 September 2024
The directors present their strategic report on the company for the year ended 30th September 2024.
Principal activities
The principal activity of the company is electrical contracts. The company are primarily involved in the construction industry.
Development and Performance
The financial results for the year ended 30 September 2024 were considered satisfactory. The outlook for the 2024/25 year is encouraging.
Results
Please refer to the statement of income and retained earnings for results, which are in line with company budget. The company's financial position at the end of the year shows a profit and loss reserve of £2,688,527 (2023: £2,408,257)
Key Performance Indicators - Financial & Non Financial
The Company director is of the opinion that analysis using key performance indicators is not necessary for an understanding of the development, performance or position of the business.
Principal Risks and Uncertainties
The company risks and uncertainties include euro exchange rates along with the economic recovery in the construction sector.
The company have put in place processes to mitigate any risk and are confident of their ability to continue to trade positively despite the underlying economic conditions.
This report was approved by the board of directors on 21 February 2025 and signed on behalf of the board by:
Mr Michael Nugent
Director
Michael Nugent (ES) Ltd
Directors report
Year ended 30 September 2024
The directors present their report and the financial statements of the company for the year ended 30 September 2024.
Directors
The directors who served the company during the year were as follows:
Mr Michael Nugent
Mr Ryan Nugent
Mr Richard Gilmour
Mr Marc Nugent
Miss Michaela Nugent
Dividends
A dividend in respect of the year ended 30 September 2024 totalling £Nil was paid (2023: £Nil). The profit for the year has been transferred to reserves.
Future developments
The directors are not expecting to make any significant changes in the nature of buisness in the near future. The company's order book is already very strong and post year end trading is strong.
Financial instruments
Where there is significant exposure to fluctuations in the exchange rates of foreign currencies the company enters into appropriate forward contracts to mitigate the risk. The company finances its operations through a mixture of retained profits and cash at bank. The company's exposure to interest rate fluctuations is therefore limited.
Directors responsibilities statement
The directors are responsible for preparing the strategic report, directors 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 comprising FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' 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 the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
- select suitable accounting policies and then apply them consistently;
- make judgments and accounting estimates that are reasonable and prudent; and
- state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Directors Confirmation
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
Independent Auditors
The auditors, Corr & Corr, are deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.
This report was approved by the board of directors on 21 February 2025 and signed on behalf of the board by:
Mr Michael Nugent
Director
Michael Nugent (ES) Ltd
Independent auditor's report to the members of
Michael Nugent (ES) Ltd
Year ended 30 September 2024
Opinion
We have audited the financial statements of Michael Nugent (ES) Ltd (the 'company') for the year ended 30 September 2024 which comprise the statement of income and retained earnings, statement of financial position and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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.
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. 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. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the directors' report has been prepared in accordance with applicable legal requirements.
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 where the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and the returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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: Based on our understanding of the company and industry, we identified the principal risks of non-compliance with laws and regulations relating to Michael Nugent (ES) Ltd, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined the principal risks. Audit procedures performed to assess and review these risks include:-All of the systems and information systems of the company was documented in full at the planning stage of the audit with a specific focus on the sales and income aspects of the system.- Based on documentation of systems and information systems, walk through testing, controls testing and detailed analytical review risk was formally assessed in relation to completeness of income.- Review and assessment of significant journal entries during the year.- Review of trading results and projections with intercompany balances to assess recoverability.- Discussion with management.There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
- Conclude on the appropriateness of the directors use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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 auditors 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.
Paul Corr (Senior Statutory Auditor)
For and on behalf of
Corr & Corr
Chartered Accountants and Statutory Auditors
2nd Floor, The Cornmill
Lineside
Coalisland
Co Tyrone
BT71 4LP
21 February 2025
Michael Nugent (ES) Ltd
Statement of income and retained earnings
Year ended 30 September 2024
2024 2023
Note £ £
Turnover 4 25,598,941 11,055,952
Cost of sales ( 23,601,635) ( 9,439,742)
_______ _______
Gross profit 1,997,306 1,616,210
Administrative expenses ( 1,788,220) ( 1,267,219)
Other operating income 5 4,500 26,000
_______ _______
Operating profit 6 213,586 374,991
Other interest receivable and similar income 8 - 449
Interest payable and similar expenses 9 ( 2,110) -
Profit before taxation 211,476 375,440
Tax on profit 10 68,794 ( 99,785)
_______ _______
Profit for the financial year and total comprehensive income 280,270 275,655
_______ _______
Retained earnings at the start of the year 2,408,257 2,132,602
_______ _______
Retained earnings at the end of the year 2,688,527 2,408,257
_______ _______
All the activities of the company are from continuing operations.
Michael Nugent (ES) Ltd
Statement of financial position
30 September 2024
2024 2023
Note £ £ £ £
Fixed assets
Tangible assets 11 57,950 60,857
_______ _______
57,950 60,857
Current assets
Stocks 12 3,480,220 741,448
Debtors 13 3,519,869 3,745,879
Cash at bank and in hand 812,773 1,028,272
_______ _______
7,812,862 5,515,599
Creditors: amounts falling due
within one year 14 ( 5,130,538) ( 3,111,952)
_______ _______
Net current assets 2,682,324 2,403,647
_______ _______
Total assets less current liabilities 2,740,274 2,464,504
Creditors: amounts falling due
after more than one year 15 - ( 4,500)
Provisions for liabilities 16 ( 41,639) ( 41,639)
_______ _______
Net assets 2,698,635 2,418,365
_______ _______
Capital and reserves
Called up share capital 20 1,000 1,000
Share premium account 21 9,108 9,108
Profit and loss account 21 2,688,527 2,408,257
_______ _______
Shareholders funds 2,698,635 2,418,365
_______ _______
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
These financial statements were approved by the board of directors and authorised for issue on 21 February 2025 , and are signed on behalf of the board by:
Mr Michael Nugent
Director
Company registration number: NI614997
Michael Nugent (ES) Ltd
Notes to the financial statements
Year ended 30 September 2024
1. General information
The company is a private company limited by shares, registered in Northern Ireland. The address of the registered office is 2 Tandragee Road, Pomeroy, Dungannon, Co Tyrone, BT70 3DS.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the going concern basis under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. The financial statements are prepared in sterling which is the functional and presentation currency of the entity.
Going concern
The Company made a profit during the year ended 30 September 2024 and at that date the Company's assets exceeded its liabilities. After making enquiries, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Reduced disclosures
In accordance with FRS 102, the Company has taken advantage of the 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' - Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; 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; - The requirement of Section 33 Related Party Disclosures paragraph 33.7.This information is included in the consolidated financial statements of Michael Nugent Ltd as at 30th September 2024 and these financial statements may be obtained from Companies House
Judgements and key sources of estimation uncertainty
The preparation of the financial statements in conformance with FRS 102 requires management to make judgements, estimates and assumptions that affect the amounts reported. Management believes that the estimates, assumptions and judgements upon which it relies are reasonable based on the information available at the time that those estimates, assumptions and judgements are made. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss accounts.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a deduction to the expense over the lease term, on a straight-line basis.
Tangible assets
tangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in capital and reserves, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fittings fixtures and equipment - 25 % reducing balance
Motor vehicles - 25 % reducing balance
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.
Hire purchase and finance leases
Assets held under finance leases are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Government grants
Government grants are recognised at the fair value of the asset received or receivable. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received. Government grants are recognised using the accrual model and the performance model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income and not deducted from the carrying amount of the asset. Under the performance model, where the grant does not impose specified future performance-related conditions on the recipient, it is recognised in income when the grant proceeds are received or receivable. Where the grant does impose specified future performance-related conditions on the recipient, it is recognised in income only when the performance-related conditions have been met. Where grants received are prior to satisfying the revenue recognition criteria, they are recognised as a liability.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
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 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 instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.Debt instruments are subsequently measured at amortised cost.Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
Cash
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short term liquid investments with maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
Share Capital
Ordinary shares are classified as equity.
4. Turnover
Turnover arises from:
2024 2023
£ £
Sale of goods 25,598,941 11,055,952
_______ _______
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Other operating income
2024 2023
£ £
Government grant income 4,500 26,000
_______ _______
6. Operating profit
Operating profit is stated after charging/(crediting):
2024 2023
£ £
Depreciation of tangible assets 16,336 20,193
(Gain)/loss on disposal of tangible assets 3,154 -
Operating lease rentals - 355
Foreign exchange differences 1,921 11
Fees payable for the audit of the financial statements 5,301 3,900
_______ _______
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024 2023
Administrative staff 28 24
Operatives 10 9
_______ _______
38 33
_______ _______
The aggregate payroll costs incurred during the year were:
2024 2023
£ £
Wages and salaries 2,112,915 1,790,840
Social security costs 178,554 160,400
Other pension costs 129,762 108,198
_______ _______
2,421,231 2,059,438
_______ _______
8. Other interest receivable and similar income
2024 2023
£ £
Other interest receivable and similar income - 449
_______ _______
9. Interest payable and similar expenses
2024 2023
£ £
Other loans made to the company:
Finance leases and hire purchase contracts 2,110 -
_______ _______
2,110 -
_______ _______
10. Tax on profit
Major components of tax income/expense
2024 2023
£ £
Current tax:
UK current tax expense 53,481 86,483
Adjustments in respect of previous periods ( 122,275) -
_______ _______
Deferred tax:
Origination and reversal of timing differences - 13,302
_______ _______
Tax on profit ( 68,794) 99,785
_______ _______
Reconciliation of tax income/expense
The tax assessed on the profit for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25.00 % (2023: 22.00%).
2024 2023
£ £
Profit before taxation 211,476 375,440
_______ _______
Profit multiplied by rate of tax 52,869 82,597
Adjustments in respect of prior periods ( 122,275) -
Effect of capital allowances and depreciation 612 3,854
Rounding on tax charge - 32
Deferred Tax - 13,302
_______ _______
Tax on profit ( 68,794) 99,785
_______ _______
Factors affecting future tax expense
The main rate of corporation tax increased on 1st April 2023 from 19% to 25% for companies with taxable profits in excess of £250,000. The deferred tax liability has been calculated based on the increased main rate of corporation tax.
11. Tangible assets
Fixtures, fittings and equipment Motor vehicles Total
£ £ £
Cost
At 1 October 2023 2,187 124,859 127,046
Additions - 17,000 17,000
Disposals - ( 15,150) ( 15,150)
_______ _______ _______
At 30 September 2024 2,187 126,709 128,896
_______ _______ _______
Depreciation
At 1 October 2023 477 65,712 66,189
Charge for the year 428 15,909 16,337
Disposals - ( 11,580) ( 11,580)
_______ _______ _______
At 30 September 2024 905 70,041 70,946
_______ _______ _______
Carrying amount
At 30 September 2024 1,282 56,668 57,950
_______ _______ _______
At 30 September 2023 1,710 59,147 60,857
_______ _______ _______
12. Stocks
2024 2023
£ £
Raw materials - 1,250
Work in progress 3,480,220 740,198
_______ _______
3,480,220 741,448
_______ _______
The total closing work in progress shown in the accounts has been valued based on the lower of cost and net realisable value.
13. Debtors
2024 2023
£ £
Trade debtors 891,531 441,737
Amounts owed by group undertakings 2,404,374 3,047,630
Other debtors 223,964 256,512
_______ _______
3,519,869 3,745,879
_______ _______
Amounts due from related undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
14. Creditors: amounts falling due within one year
2024 2023
£ £
Bank loans and overdrafts 4,991 3,298
Trade creditors 4,459,443 2,681,946
Amounts owed to group undertakings 199,856 -
Accruals and deferred income 296,515 260,701
Corporation tax 53,481 86,034
Social security and other taxes 115,975 79,973
Other creditors 277 -
_______ _______
5,130,538 3,111,952
_______ _______
15. Creditors: amounts falling due after more than one year
2024 2023
£ £
Accruals and deferred income - 4,500
_______ _______
16. Provisions
Deferred tax (note 17) Total
£ £
At 1 October 2023 and 30 September 2024 41,639 41,639
_______ _______
17. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024 2023
£ £
Included in provisions (note 16) 41,639 41,639
_______ _______
The deferred tax account consists of the tax effect of timing differences in respect of:
2024 2023
£ £
Accelerated capital allowances 41,639 41,639
_______ _______
18. Employee benefits
The amount recognised in profit or loss in relation to defined contribution plans was £ 129,762 (2023: £ 108,198 ).
19. Government grants
2024 2023
£ £
At start of year 4,500 19,500
Grants received or receivable (-) (-)
Released to the profit or loss (4,500) (15,000)
_______ _______
At end of year - 4,500
_______ _______
The amounts recognised in the financial statements for government grants are as follows:
2024 2023
£ £
Recognised in creditors:
Deferred government grants due after more than one year - 4,500
_______ _______
Recognised in other operating income:
Government grants recognised directly in income 4,500 26,000
_______ _______
20. Called up share capital
Issued, called up and fully paid
2024 2023
No £ No £
Ordinary shares of £ 1.00 each 900 900 900 900
'A' Ordinary shares of £ 1.00 each 100 100 100 100
_______ _______ _______ _______
1,000 1,000 1,000 1,000
_______ _______ _______ _______
Both the Ordinary Shares and 'A' Ordinary Shares Carry Full Voting Rights, Rights to Participate in Income and Capital Distributions and are Non-Redeemable Shares.
21. Reserves
Called up share capital represents the nominal value of shares that have been issued. Profit & Loss reserve represents cumulative profit or losses, net of dividends paid.Share premium includes any premiums received on issue of share capital. Any transaction costs associatied with the issuing of shares are deducted from share premium.
22. Contingent assets and liabilities
There is a contingent liability to repay certain government grants received under the terms of the letter of offer from Invest Northern Ireland if the company fails to achieve and maintain the specified conditions. In the opinion of the directors, the terms of the letter of offer hvae been complied with an no such repayment is expected.
23. Limitation of auditors liability
The terms of agreement regarding the limitation of the auditors liability are set out in the engagement letter, in accordance with Section 538 Companies Act 2006.
24. Related party transactions
The company has taken advantage of the exemption under FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" not to disclose transactions with entities that are part of the group
25. Key management personnel
The total remuneration of the directors and other employees who are considered to be key management personnel was Nil (2023 - Nil).
26. Controlling party
The company is a wholly owned subsidiary of Michael Nugent Ltd, a company registered in Northern Ireland.The director regards Michael Nugent Ltd, a company registered in Northern Ireland (NI040434), whose registered office address is 2 Tandragee Road, Pomeroy, Co Tyrone, BT70 3DS, as the ultimate parent company.The consolidated financial statements of this Group are available at:Companies HouseThe Linenhall32-38 Linenhall StreetBelfastMichael Nugent Ltd is under the control of its shareholders, Mr & Mrs Michael & Brenda Nugent who are therefore deemed to be the ultimate controlling party.
27. Going Concern
Going Concern is not considered to be an issue. The Company made a profit during the year ended 30 September 2024 and at that date the Company's assets exceeded its liabilities. After making enquiries, the directors have reasonable expectations that the Company has adequate resources to continue in operational existence for the foreseeable future.
28. Critical judgements and estimation uncertainty
There are no critical judgements in applying the company's accounting policies. There are no critical accounting estimates and assumptions.