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COMPANY REGISTRATION NUMBER: 02989979
CBL Cable Contractors Limited
Financial Statements
31 May 2024
CBL Cable Contractors Limited
Financial Statements
year ended 31 May 2024
Contents
Pages
Officers and professional advisers
1
Strategic report
2 to 3
Directors' report
4 to 5
Independent auditor's report to the members
6 to 9
Profit and loss account
10
Balance sheet
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14 to 22
CBL Cable Contractors Limited
Officers and Professional Advisers
The board of directors
Mr B K Goodchild
Mr A P Shipley
Mr A W Haygarth
Registered office
Bensway House
Usworth Road
Hartlepool
TS25 1PD
Auditor
Chipchase Manners
Chartered accountants & statutory auditors
384 Linthorpe Road
Middlesbrough
TS5 6HA
Bankers
Virgin Money
The team at Virgin Money
Sunderland
United Kingdom
SR43 4JB
Solicitors
Endeavour Partnership LLP
Tobias House
St Mark's Court
Teesdale Business Park
Stockton-on-Tees
TS17 6QW
CBL Cable Contractors Limited
Strategic Report
year ended 31 May 2024
Principal activity: The principal activity of the company during the year was the provision of support services to industry. Business environment: The company has reasonable prospects given its proven background in providing support to high-value cabling projects. The company's turnover has returned to a normal level following a particularly successful year ending 31 May 2023. The company continues to fulfil long-term contracts with customers, and is confident that this will continue in the future, as well as acquiring new customers. The company continues to generate profits following a difficult period during the COVID-19 pandemic. The directors are confident that this will continue to the fact that the provision of cabling services is an industry which is likely to consistently see high demand in the coming years, as infrastructure is improved across the UK and overseas. Strategy: The company's objectives remain unchanged from the beginning of the period, being the achievement of sustainable growth. Three main elements comprise the methods of being successful in this endeavour. 1. Expansion of services to new and existing customers. 2. Investment in infrastructure and new business opportunities. 3. Recruitment and retaining of key people who are experts in their field. People: The recruitment and retention of employees is important to the success of the company. Policies have been implemented to attract candidates with the appropriate skill sets who can add to the competitive advantage and to retain those employees once they are recruited. Our key measure of this success is employee retention in which we have good results, as seen in the 'key performance indicators' section below. Key performance indicators: The board of directors monitors progress on the company's progress using the key performance indicators below. Performance during the year, together with comparative data from the previous accounting year is set out in the table below:
2024 2023
£ £
Turnover 12,299,556 13,874,311
Gross profit margin (%) 11 13
Return on invested capital (%) 5 12
Average number of production staff 171 124
Turnover: Net proceeds from the provision of cabling services in the year. Gross margin: The ratio of gross profit to sales expressed as a percentage. Return on invested capital: The ratio of net profit before tax to net assets expressed as a percentage. Average number of site workers: The number of site-based operatives paid each week averaged across the year.
This report was approved by the board of directors on 24 February 2025 and signed on behalf of the board by:
Mr B K Goodchild
Director
CBL Cable Contractors Limited
Directors' Report
year ended 31 May 2024
The directors present their report and the financial statements of the company for the year ended 31 May 2024 .
Directors
The directors who served the company during the year were as follows:
Mr B K Goodchild
Mr A P Shipley
Mr A W Haygarth
Dividends
No dividends have been paid during the year (2023: nil). The EBITDA figure for 2022 was £374,824 (2023: (£408,634)).
Employee involvement
The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters more likely to affect employees' interests. Information on matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance. There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Disclosure of information in the strategic report
The key business risks and uncertainties affecting the company are considered to relate to competition both locally and nationally, employee retention and the changing regulatory framework in which it operates. Further discussion of these risks and uncertainties is provided in the strategic report.
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 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; - 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. Auditor
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.
This report was approved by the board of directors on 24 February 2025 and signed on behalf of the board by:
Mr B K Goodchild
Director
CBL Cable Contractors Limited
Independent Auditor's Report to the Members of CBL Cable Contractors Limited
year ended 31 May 2024
Opinion
We have audited the financial statements of CBL Cable Contractors Limited (the 'company') for the year ended 31 May 2024 which comprise the profit and loss account, balance sheet, statement of changes in equity, statement of cash flows and the related notes, 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 31 May 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of 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: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: The objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud or error. It is also our objective to obtain sufficient appropriate audit evidence regarding the risks we have assessed and respond as appropriate to them. Even though an audit is planned and performed in accordance with the ISAs (UK), an audit has an unavoidable risk that material misstatements in the financial statements may not be detected. In identifying and assessing the risk of material misstatement in respect of irregularities, including fraud, our audit procedures included the following: - We obtained an understanding of the legal and regulatory frameworks applicable to the company and the environment in which they operate. - We obtained an understanding of how the company ensures their compliance with the applicable legal and regulatory frameworks through inquiries to the management and those charged with ensuring such compliance within the company. We corroborated our inquiries through a review of transactions within the financial statements that were linked to compliance with laws and regulations. We also reviewed any available board minutes. - We assessed the susceptibility of the company's financial statements to material misstatement with regards to how fraud might occur. Audit procedures performed by the team included: - Identifying and assessing the effectiveness of controls the management of the company has in place to detect and prevent possible fraud; - Understanding how those involved with ensuring compliance considered and addressed the potential override of controls or undue influence over the financial reports; - Challenging any major assumptions and judgements that the management used in any significant accounting estimates; - Reviewing journal entries made with emphasis placed on those with unusual combinations and those around the accounting year end: and - Assessing the extent of compliance with applicable laws and regulations. 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 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.
Martin Firth BA (Hons) FCA
(Senior Statutory Auditor)
For and on behalf of
Chipchase Manners
Chartered accountants & statutory auditors
384 Linthorpe Road
Middlesbrough
TS5 6HA
24 February 2025
CBL Cable Contractors Limited
Profit and Loss Account
year ended 31 May 2024
2024
2023
Note
£
£
Turnover
4
12,299,556
13,874,311
Cost of sales
( 10,921,684)
( 12,107,232)
-------------
-------------
Gross profit
1,377,872
1,767,079
Administrative expenses
( 1,126,608)
( 1,449,108)
------------
------------
Operating profit
5
251,264
317,971
Other interest receivable and similar income
9
866
Interest payable and similar expenses
10
( 129,957)
( 90,799)
------------
------------
Profit before taxation
121,307
228,038
Tax on profit
11
( 7,371)
( 130,122)
---------
---------
Profit for the financial year
113,936
97,916
---------
---------
Revaluation of tangible assets
106,517
Tax relating to components of other comprehensive income
( 18,840)
----
---------
Other comprehensive income for the year
87,677
---------
---------
Total comprehensive income for the year
113,936
185,593
---------
---------
All the activities of the company are from continuing operations.
CBL Cable Contractors Limited
Balance Sheet
31 May 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
12
729,269
712,177
Current assets
Debtors
13
3,716,853
3,116,438
Cash at bank and in hand
190,663
410,916
------------
------------
3,907,516
3,527,354
Creditors: amounts falling due within one year
14
( 2,316,894)
( 2,044,781)
------------
------------
Net current assets
1,590,622
1,482,573
------------
------------
Total assets less current liabilities
2,319,891
2,194,750
Creditors: amounts falling due after more than one year
15
( 236,839)
( 223,297)
Provisions
Taxation including deferred tax
17
( 79,316)
( 81,653)
------------
------------
Net assets
2,003,736
1,889,800
------------
------------
Capital and reserves
Called up share capital
20
100
100
Revaluation reserve
21
87,677
87,677
Profit and loss account
21
1,915,959
1,802,023
------------
------------
Shareholders funds
2,003,736
1,889,800
------------
------------
These financial statements were approved by the board of directors and authorised for issue on 24 February 2025 , and are signed on behalf of the board by:
Mr B K Goodchild
Director
Company registration number: 02989979
CBL Cable Contractors Limited
Statement of Changes in Equity
year ended 31 May 2024
Called up share capital
Revaluation reserve
Profit and loss account
Total
Note
£
£
£
£
At 1 June 2022
100
1,704,107
1,704,207
Profit for the year
97,916
97,916
Other comprehensive income for the year:
Revaluation of tangible assets
12
106,517
106,517
Tax relating to components of other comprehensive income
11
( 18,840)
( 18,840)
----
---------
------------
------------
Total comprehensive income for the year
87,677
97,916
185,593
At 31 May 2023
100
87,677
1,802,023
1,889,800
Profit for the year
113,936
113,936
----
---------
------------
------------
Total comprehensive income for the year
113,936
113,936
----
---------
------------
------------
At 31 May 2024
100
87,677
1,915,959
2,003,736
----
---------
------------
------------
CBL Cable Contractors Limited
Statement of Cash Flows
year ended 31 May 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
113,936
97,916
Adjustments for:
Depreciation of tangible assets
123,560
90,663
Other interest receivable and similar income
( 866)
Interest payable and similar expenses
129,957
90,799
Gains on disposal of tangible assets
( 55,626)
( 22,861)
Tax on profit
7,371
130,122
Accrued income
( 9,686)
( 47,702)
Changes in:
Trade and other debtors
( 600,415)
41,745
Trade and other creditors
273,041
13,110
---------
---------
Cash generated from operations
( 17,862)
392,926
Interest paid
( 129,957)
( 90,799)
Interest received
866
Tax paid
( 9,708)
( 116,153)
---------
---------
Net cash (used in)/from operating activities
( 157,527)
186,840
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 224,783)
( 284,597)
Proceeds from sale of tangible assets
139,757
46,000
---------
---------
Net cash used in investing activities
( 85,026)
( 238,597)
---------
---------
Cash flows from financing activities
Proceeds from loans from group undertakings
( 163,610)
Payments of finance lease liabilities
22,300
176,555
---------
---------
Net cash from financing activities
22,300
12,945
---------
---------
Net decrease in cash and cash equivalents
( 220,253)
( 38,812)
Cash and cash equivalents at beginning of year
410,916
449,728
---------
---------
Cash and cash equivalents at end of year
190,663
410,916
---------
---------
CBL Cable Contractors Limited
Notes to the Financial Statements
year ended 31 May 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Bensway House, Usworth Road, Hartlepool, TS25 1PD.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Long term contracts
Amounts recoverable on long term contracts, which are included in debtors are stated at the net sales value of the work done after provisions for contingencies and anticipated future losses on contracts, less amounts received as progress payments on account. Excess progress payments are included in creditors as payments received on account.
Disclosure exemptions
Disclosures in respect of financial instruments have not been presented as none that were considered to be non-basic in nature were in use in the year.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. 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.
Revenue recognition
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. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, 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.
Tangible assets
Tangible assets are initially recorded at cost, and 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 equity, 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 equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity 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:
Freehold property
-
Held at valuation
Plant and machinery
-
25% reducing balance
Motor vehicles
-
25% reducing balance
Impairment of fixed assets
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. For the purposes of impairment testing, 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 largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Finance leases and hire purchase contracts
Assets obtained under hire purchase contracts and finance leases are capitalised as tangible assets and depreciated over the shorter of the lease term and there useful lives. Obligations under such agreements are included in creditors net of the finance charge allocated in future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce constant periodic rates of charge on the net obligations outstanding in each period. Rentals payable under operating leases are charged against income on a straight line basis over the lease term.
Provisions
Provisions are uncertain in timing or amount, and are recognised when there is a present obligation as a result of a past event and the outflow of economic benefit is probable and can be estimated reliably. Judgement is involved in determining whether an obligation exists, and in estimating the probability, timing and amount of any outflows.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided.
4. Turnover
Turnover arises from:
2024
2023
£
£
Rendering of services
12,299,556
13,874,311
-------------
-------------
The turnover is attributable to the one principal activity of the company. An analysis of turnover by the geographical markets that substantially differ from each other is given below:
2024
2023
£
£
United Kingdom
12,299,556
10,844,232
Overseas
3,030,079
-------------
-------------
12,299,556
13,874,311
-------------
-------------
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Depreciation of tangible assets
123,560
90,663
Gains on disposal of tangible assets
( 55,626)
( 22,861)
Impairment of trade debtors
64,533
103,027
---------
---------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
14,500
13,500
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
171
124
Administrative staff
11
19
----
----
182
143
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
7,949,814
8,859,832
Social security costs
721,914
853,044
Other pension costs
147,858
158,489
------------
------------
8,819,586
9,871,365
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
148,656
148,656
Company contributions to defined contribution pension plans
6,000
6,000
---------
---------
154,656
154,656
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
1
1
----
----
9. Other interest receivable and similar income
2024
2023
£
£
Bank interest received
866
----
----
10. Interest payable and similar expenses
2024
2023
£
£
Interest on obligations under finance leases and hire purchase contracts
32,561
21,748
Interest on factoring and taxation
97,396
69,051
---------
--------
129,957
90,799
---------
--------
11. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
9,708
39,346
Double taxation relief
( 39,346)
-------
--------
Total UK current tax
9,708
Foreign current tax expense
116,153
-------
Total current tax
9,708
-------
---------
Deferred tax:
Origination and reversal of timing differences
( 2,337)
13,969
-------
---------
Tax on profit
7,371
130,122
-------
---------
Tax recognised as other comprehensive income or equity
The aggregate current and deferred tax relating to items recognised as other comprehensive income or equity for the year was £Nil
(2023: £ 18,840 ).
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 20 %).
2024
2023
£
£
Profit on ordinary activities before taxation
121,307
228,038
---------
---------
Profit on ordinary activities by rate of tax
30,327
45,553
Effect of expenses not deductible for tax purposes
( 25,551)
1,349
Effect of capital allowances and depreciation
4,932
( 7,556)
Foreign tax expense
116,153
Double taxation relief
(39,346)
Deferred taxation movement
(2,337)
13,969
---------
---------
Tax on profit
7,371
130,122
---------
---------
12. Tangible assets
Freehold property
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 June 2023
335,000
122,146
494,880
952,026
Additions
14,955
209,828
224,783
Disposals
( 166,990)
( 166,990)
---------
---------
---------
------------
At 31 May 2024
335,000
137,101
537,718
1,009,819
---------
---------
---------
------------
Depreciation
At 1 June 2023
81,038
158,811
239,849
Charge for the year
14,015
109,545
123,560
Disposals
( 82,859)
( 82,859)
---------
---------
---------
------------
At 31 May 2024
95,053
185,497
280,550
---------
---------
---------
------------
Carrying amount
At 31 May 2024
335,000
42,048
352,221
729,269
---------
---------
---------
------------
At 31 May 2023
335,000
41,108
336,069
712,177
---------
---------
---------
------------
Tangible assets held at valuation
The freehold property owned by the company was revalued by Greig Cavey Commercial Ltd, an independent valuer, on 19 June 2023. In the directors' opinion, the value of the freehold property has not changed materially since the valuation date.
In respect of tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the assets had been carried under the historical cost model are as follows:
Freehold property
£
At 31 May 2024
Aggregate cost
259,640
Aggregate depreciation
(36,350)
---------
Carrying value
223,290
---------
At 31 May 2023
Aggregate cost
259,640
Aggregate depreciation
(31,157)
---------
Carrying value
228,483
---------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Plant and machinery
Motor vehicles
Total
£
£
£
At 31 May 2024
11,216
333,442
344,658
--------
---------
---------
At 31 May 2023
318,298
318,298
--------
---------
---------
13. Debtors
2024
2023
£
£
Trade debtors
3,533,243
2,884,877
Corporation tax repayable
7,815
17,523
Directors loan account
23,000
23,000
Other debtors
152,795
191,038
------------
------------
3,716,853
3,116,438
------------
------------
14. Creditors: amounts falling due within one year
2024
2023
£
£
Factoring advance
889,774
947,641
Trade creditors
379,259
266,766
Accruals and deferred income
238,176
247,862
Social security and other taxes
400,008
129,805
Obligations under finance leases and hire purchase contracts
73,206
64,448
Amounts owed to related parties
256,749
334,285
Other creditors
79,722
53,974
------------
------------
2,316,894
2,044,781
------------
------------
15. Creditors: amounts falling due after more than one year
2024
2023
£
£
Obligations under finance leases and hire purchase contracts
236,839
223,297
---------
---------
16. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
73,206
64,448
Later than 1 year and not later than 5 years
236,839
223,297
---------
---------
310,045
287,745
---------
---------
17. Provisions
Deferred tax (note 18)
£
At 1 June 2023
81,653
Charge against provision
( 2,337)
--------
At 31 May 2024
79,316
--------
18. Deferred tax
The deferred tax included in the balance sheet is as follows:
2024
2023
£
£
Included in provisions (note 17)
79,316
81,653
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
60,476
62,813
Revaluation of tangible assets
18,840
18,840
--------
--------
79,316
81,653
--------
--------
19. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 141,858 (2023: £ 152,489 ).
20. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
100
100
100
100
----
----
----
----
21. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses. Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.
22. Analysis of changes in net debt
At 1 Jun 2023
Cash flows
At 31 May 2024
£
£
£
Cash at bank and in hand
410,916
(220,253)
190,663
Debt due within one year
(64,448)
(8,758)
(73,206)
Debt due after one year
(223,297)
(13,542)
(236,839)
---------
---------
---------
123,171
( 242,553)
( 119,382)
---------
---------
---------
23. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
Balance brought forward and outstanding
2024
2023
£
£
Mr A W Haygarth
23,000
23,000
--------
--------
24. Related party transactions
Beaver Management Services Limited are a related party by virtue of having directors in common. During the year, CBL Cable Contractors Limited had sales in the year totalling £93,813 (2023: £28,109) and purchases in the year totalling £36,200 (2023: £160,593) with this related party. The balance owed to this related party at the year end was £256,749 (2023: £334,285). All related party transactions were undertaken under normal commercial terms on an arms-length basis.
25. Controlling party
The ultimate controlling party at the year end was Mrs B Goodchild, by virtue of her shareholding.