REGISTERED NUMBER: NI634086 (Northern Ireland) |
KONSTRUCTION CONTRACT SERVICES LTD |
Group Strategic Report, Directors' Report and |
Consolidated Financial Statements for the Year Ended 30 June 2024 |
REGISTERED NUMBER: NI634086 (Northern Ireland) |
KONSTRUCTION CONTRACT SERVICES LTD |
Group Strategic Report, Directors' Report and |
Consolidated Financial Statements for the Year Ended 30 June 2024 |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Contents of the Consolidated Financial Statements |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Directors' Report | 4 |
Independent Auditors' Report | 6 |
Consolidated Income Statement | 10 |
Consolidated Statement of Financial Position | 11 |
Company Statement of Financial Position | 12 |
Consolidated Statement of Changes in Equity | 13 |
Company Statement of Changes in Equity | 14 |
Consolidated Statement of Cash Flows | 15 |
Notes to the Consolidated Statement of Cash Flows |
16 |
Notes to the Consolidated Financial Statements | 17 |
KONSTRUCTION CONTRACT SERVICES LTD |
Company Information |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
INDEPENDENT AUDITORS: |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
BANKERS: | Danske Bank |
South Business Centre |
45-48 High Street |
Portadown |
Co. Armagh |
BT62 1LB |
SOLICITORS: |
Embankment House |
Electric Avenue |
Nottingham |
NG2 1AS |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Group Strategic Report |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their strategic report of the Company and the Group for the year ended 30 June 2024. |
REVIEW OF BUSINESS AND FUTURE DEVELOPMENTS |
The group reported a profit for the financial year of £2,176,333 (30/6/23: £3,442,685) on a turnover of £24,819,633 (30/6/23: £36,642,763). At the year end, the group had net assets of £13,060,883 (30/6/23:£12,739,341). |
The directors are committed to long-term creation of shareholder value by increasing the group's market share through organic growth. Whilst the incoming year is significantly challenging, results to date suggest the company have been able to perform well despite testing conditions. |
Key performance indicators |
30/6/24 | 30/6/23 |
Turnover | £24,819,633 | £36,642,763 |
Gross profit | £6,807,539 | £7,227,695 |
Average number of employees | 69 | 68 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Business operations and execution of the group's strategic plan are subject to several risks and uncertainties: |
Inflationary Costs Pressures |
Manufacturers continue to be exposed to pressures created by Brexit, rising energy costs, supply chain disruption and the war in Ukraine. The business remains vigilant to the potential headwinds experienced by all aspects of the project cycle and seeks to mitigate these risks through robust commercial and risk management, on-going dialogue with key stakeholders, including customers and supply chain. |
Project Timing/Delivery |
Macroeconomic uncertainty and geopolitical tensions may result in delays to the commencement of secured projects. Tendered projects are often complex in nature and delivered over a period of many months with significant risks including procurement and delivery aspects. Tender assumptions and the underlying risks inherent in same may not be fully developed or appreciated. Robust internal control mechanisms and supply chain management have been introduced to avoid the pitfalls of substandard performance. |
Human resources |
Recruitment, retention and development of key employees is paramount in the current economic climate, and the business continues to invest in employment training and development, together with appropriate incentive and career progression arrangements. |
Financial Risk Management |
The group's operations expose it to a variety of financial risks that include foreign exchange risk, price risk, credit risk and interest rate risk. |
Given the size of the group, the directors have not delegated the responsibility of monitoring financial risk management to a sub-committee of the board. The policies set by the board of directors are implemented by the group's finance department. |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Group Strategic Report |
FOR THE YEAR ENDED 30 JUNE 2024 |
FOREIGN EXCHANGE RISK |
The group and company are exposed to some foreign exchange risk in the normal course of business, principally on sales recorded in Euros and borrowing denominated in Euros. The foreign exchange risk for the group extends also to subsidiary companies whose functional currency is Euro which require translation to sterling for reporting purposes. While the group and company have not used complex financial instruments to date to hedge foreign exchange exposure; this position is kept constantly under review. |
Price risk |
The group are exposed to commodity price risk as a result of its operations. However, given the size of the group and company's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The directors will revisit the appropriateness of this policy should the group and company's operations change in size or nature. |
Credit Risk |
The group has implemented policies that require appropriate credit checks on potential customers before sales are made. The amount of exposure to individual customers is subject to a limit, which is reassessed regularly by the board. |
Interest rate risk |
The group have both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances, which earn interest at a variable rate. Interest bearing liabilities relate to shareholder loans, bank overdrafts and loans and obligations under hire purchase and finance lease agreements, which bear interest at market rates. |
Environment |
The group and company recognise their corporate responsibility to carry out their operations whilst minimizing the environmental impacts. The directors' continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible. |
Health and Safety |
The group and company are committed to achieving the highest practicable standards in health and safety management and strive to make all sites and offices safe environments for employees and customers alike. |
Human Resources/Employees |
The most important resource of the group and company are the people employed: their knowledge and experience is crucial to meeting customer requirements. In this current economic climate, it is vitally important that the retention of key staff is achieved. The group and company continue to invest in employment training and development and have introduced appropriate incentive and career progression arrangements. |
ON BEHALF OF THE BOARD: |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Directors' Report |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their report with the financial statements of the Company and the Group for the year ended 30 June 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the Group in the year under review was that of designing and installation of specialist industrial flooring. The principle activity of the company was that of a holding company. |
DIVIDENDS |
Interim dividends totalling £1,777,764 (2023: £1,176,000) were paid out during the year. The directors have not proposed a final dividend (2023: £Nil). |
RESEARCH AND DEVELOPMENT |
The group is currently undertaking research and development projects covering new products and process improvement. |
FUTURE DEVELOPMENTS |
The section on future developments, which is detailed in the Strategic report, is included in the report by cross-reference. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
CHARITABLE CONTRIBUTIONS |
The group made charitable contributions amounting to £42,564 (2023: £6,689) during the year, principally for the benefit of the local communities in which the group operates. No donations for political purposes were made during the year (2023: £Nil). |
EMPLOYEES |
Applications for employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoming disabled every effort is made to ensure that their employment with the group and company continues and the appropriate training is arranged. It is the policy of the group and company that the training, career development and promotion of a disabled person should, as far as possible, be identical to that of a person who does not suffer from a disability. |
Consultation with employees or their representatives has continued at all levels, with the aim of ensuring that their views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the financial and economic performance of the group and company. |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Directors' Report |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS' RESPONSIBILITIES STATEMENT |
The directors are responsible for preparing the Group Strategic Report, the 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Group and of the profit or loss of the Group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's and the Group's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the Group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
AUDITORS |
The auditors, CavanaghKelly, have indicated their willingness to continue in office in accordance with the provision of Section 485 of the Companies Act 2006. |
ON BEHALF OF THE BOARD: |
Independent Auditors' Report to the Members of |
Konstruction Contract Services Ltd |
Opinion |
We have audited the financial statements of Konstruction Contract Services Ltd (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2024 which comprise the Consolidated Income Statement, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the Group's and of the Parent Company affairs as at 30 June 2024 and of the Group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group 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 Group's and the Parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report thereon. |
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 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 the audit: |
- | the information given in the Group 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 Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements. |
Independent Auditors' Report to the Members of |
Konstruction Contract Services Ltd |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the Parent Company 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 set out on page five, 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 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 Group's and the Parent 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 Group or the Parent Company or to cease operations, or have no realistic alternative but to do so. |
Independent Auditors' Report to the Members of |
Konstruction Contract Services Ltd |
Auditors' 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 Auditors' 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. |
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The objectives of our audit in respect of fraud are to assess the risk of material misstatement due to fraud, design and implement appropriate responses to those assessed risks and to respond appropriately to instances of fraud or suspected fraud identified during the course of our audit. However, the primary responsibility for the prevention and detection of fraud rests with management and those charged with governance of the company. |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following: |
- | We obtained understanding of the legal and regulatory requirements applicable to the company’s financial statements and considered the most significant are the Companies Act 2006, Financial Reporting Standards (FRS102) and UK taxation legislation; |
- | We have assessed the risk of material misstatement of the financial statements, including risk of material misstatement due to fraud and how it might occur by holding discussions with management and those charged with governance; |
- | We enquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations; |
- | Understanding the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; and |
- | Discussions amongst the audit engagement team regarding how fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion we identified the following potential areas where fraud may occur: timing of revenue recognition and management override. |
The audit response to risks identified included: |
- | Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the relevant laws and regulations above; |
- | Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risk of material misstatement due to fraud; |
- | In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments, assessing whether the judgements made in making accounting estimates are reasonable and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
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 Auditors' Report. |
Independent Auditors' Report to the Members of |
Konstruction Contract Services Ltd |
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. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
36-38 Northland Row |
Dungannon |
Co. Tyrone |
BT71 6AP |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Consolidated |
Income Statement |
FOR THE YEAR ENDED 30 JUNE 2024 |
30/6/24 | 30/6/23 |
Notes | £ | £ |
TURNOVER | 5 | 24,819,633 | 36,642,763 |
Cost of sales | (18,012,094 | ) | (29,415,068 | ) |
GROSS PROFIT | 6,807,539 | 7,227,695 |
Administrative expenses | (2,687,330 | ) | (2,273,260 | ) |
4,120,209 | 4,954,435 |
Other operating income | - | (2 | ) |
OPERATING PROFIT | 7 | 4,120,209 | 4,954,433 |
Exceptional item | 8 | (1,246,136 | ) | (503,341 | ) |
2,874,073 | 4,451,092 |
Finance income | 440 | 1,873 |
2,874,513 | 4,452,965 |
Finance costs | 9 | (81,709 | ) | (54,985 | ) |
PROFIT BEFORE TAXATION | 2,792,804 | 4,397,980 |
Tax on profit | 10 | (616,471 | ) | (955,295 | ) |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME |
FX translation differences | (77,095 | ) | (10,998 | ) |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
(77,095 |
) |
(10,998 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
2,099,238 |
3,431,687 |
Profit attributable to: |
Owners of the parent | 2,176,333 | 3,442,685 |
Total comprehensive income attributable to: |
Owners of the parent | 2,099,238 | 3,431,687 |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Consolidated Statement of Financial Position |
30 JUNE 2024 |
30/6/24 | 30/6/23 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Tangible assets | 13 | 1,807,210 | 1,846,073 |
Investments | 14 | - | - |
1,807,210 | 1,846,073 |
CURRENT ASSETS |
Stocks | 15 | 343,420 | 565,562 |
Receivables: amounts falling due within one year |
16 |
8,524,264 |
14,583,271 |
Debtors: amounts falling due after more than one year |
16 |
833,124 |
1,473,887 |
Cash at bank and in hand | 6,011,796 | 5,160,984 |
15,712,604 | 21,783,704 |
PAYABLES |
Amounts falling due within one year | 17 | (2,784,671 | ) | (9,109,416 | ) |
NET CURRENT ASSETS | 12,927,933 | 12,674,288 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
14,735,143 |
14,520,361 |
PAYABLES |
Amounts falling due after more than one year |
18 |
(563,748 |
) |
(695,573 |
) |
PROVISIONS FOR LIABILITIES | 21 | (1,110,512 | ) | (1,085,447 | ) |
NET ASSETS | 13,060,883 | 12,739,341 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 240 | 240 |
Retained earnings | 13,060,643 | 12,739,101 |
SHAREHOLDERS' FUNDS | 13,060,883 | 12,739,341 |
The financial statements were approved by the Board of Directors and authorised for issue on 25 February 2025 and were signed on its behalf by: |
Jacqueline O'Reilly - Director |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Company Statement of Financial Position |
30 JUNE 2024 |
30/6/24 | 30/6/23 |
Notes | £ | £ |
NON-CURRENT ASSETS |
Tangible assets | 13 |
Investments | 14 |
CURRENT ASSETS |
Receivables: amounts falling due within one year |
16 |
Debtors: amounts falling due after more than one year |
16 |
Cash at bank and in hand |
PAYABLES |
Amounts falling due within one year | 17 | ( |
) | ( |
) |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PAYABLES |
Amounts falling due after more than one year |
18 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's loss for the financial year | (326,535 | ) | (100,651 | ) |
The financial statements were approved by the Board of Directors and authorised for issue on |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Consolidated Statement of Changes in Equity |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 | 240 | 10,483,414 | 10,483,654 |
Changes in equity |
Profit for the year | - | 3,442,685 | 3,442,685 |
Other comprehensive income | - | (10,998 | ) | (10,998 | ) |
Total comprehensive income | - | 3,431,687 | 3,431,687 |
Dividends | - | (1,176,000 | ) | (1,176,000 | ) |
Balance at 30 June 2023 | 240 | 12,739,101 | 12,739,341 |
Changes in equity |
Profit for the year | - | 2,176,333 | 2,176,333 |
Other comprehensive income | - | (77,027 | ) | (77,027 | ) |
Total comprehensive income | - | 2,099,306 | 2,099,306 |
Dividends | - | (1,777,764 | ) | (1,777,764 | ) |
Balance at 30 June 2024 | 240 | 13,060,643 | 13,060,883 |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Company Statement of Changes in Equity |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 June 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 30 June 2024 |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Consolidated Statement of Cash Flows |
FOR THE YEAR ENDED 30 JUNE 2024 |
30/6/24 | 30/6/23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 4,034,280 | 3,156,404 |
Interest paid | (10,940 | ) | (15,552 | ) |
Interest element of hire purchase payments paid |
(70,769 |
) |
(39,433 |
) |
Tax paid | (921,826 | ) | (299,037 | ) |
Net cash from operating activities | 3,030,745 | 2,802,382 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (184,736 | ) | (241,274 | ) |
Sale of tangible fixed assets | 131,152 | 65,625 |
Sale of fixed asset investments | - | 857,854 |
Interest received | 802 | 1,873 |
Net cash from investing activities | (52,782 | ) | 684,078 |
Cash flows from financing activities |
Capital repayments in year | (272,292 | ) | (211,605 | ) |
Amount introduced by directors | - | (963,482 | ) |
Amount withdrawn by directors | - | 2,147,689 |
Equity dividends paid | (1,777,764 | ) | (1,176,000 | ) |
Net cash from financing activities | (2,050,056 | ) | (203,398 | ) |
Increase in cash and cash equivalents | 927,907 | 3,283,062 |
Cash and cash equivalents at beginning of year |
2 |
5,160,984 |
1,888,920 |
Effect of foreign exchange rate changes | (77,095 | ) | (10,998 | ) |
Cash and cash equivalents at end of year |
2 |
6,011,796 |
5,160,984 |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Statement of Cash Flows |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30/6/24 | 30/6/23 |
£ | £ |
Profit before taxation | 2,792,804 | 4,397,980 |
Depreciation charges | 265,073 | 477,991 |
Profit on disposal of fixed assets | (74,180 | ) | (65,625 | ) |
Warranty provision movement | (145,218 | ) | 68,749 |
Finance costs | 81,709 | 54,985 |
Finance income | (440 | ) | (1,873 | ) |
2,919,748 | 4,932,207 |
Decrease/(increase) in stocks | 222,142 | (337,522 | ) |
Decrease/(increase) in trade and other debtors | 6,699,769 | (6,992,053 | ) |
(Decrease)/increase in trade and other creditors | (5,807,379 | ) | 5,553,772 |
Cash generated from operations | 4,034,280 | 3,156,404 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
Year ended 30 June 2024 |
30/6/24 | 1/7/23 |
£ | £ |
Cash and cash equivalents | 6,011,796 | 5,160,984 |
Year ended 30 June 2023 |
30/6/23 | 1/7/22 |
£ | £ |
Cash and cash equivalents | 5,160,984 | 2,199,230 |
Bank overdrafts | - | (310,310 | ) |
5,160,984 | 1,888,920 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1/7/23 | Cash flow | At 30/6/24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 5,160,984 | 850,812 | 6,011,796 |
5,160,984 | 850,812 | 6,011,796 |
Debt |
Finance leases | (960,998 | ) | 173,847 | (787,151 | ) |
(960,998 | ) | 173,847 | (787,151 | ) |
Total | 4,199,986 | 1,024,659 | 5,224,645 |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Financial Statements |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Konstruction Contract Services Limited is a private company, limited by shares, registered within the United Kingdom. The company's registered number and registered office address can be found on the Company Information page. |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These group and company financial statements are prepared on a going concern basis, under the historical cost convention. |
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group and company accounting policies. |
The following accounting policies have been applied consistently throughout the year. |
Financial Reporting Standard 102 - reduced disclosure exemptions |
The Group has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": |
• | the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c); |
• | the requirements of paragraphs 12.26, 12.27, 12.29(a), 12.29(b) and 12.29A; |
• | the requirement of paragraph 33.7. |
Basis of consolidation |
The consolidated income statement, consolidated statement of changes in equity, consolidated balance sheet and consolidated statement of cash flows are the financial statements of the company and its subsidiary's undertakings made up to 30 June 2024. Inter-company transactions, balances and cash flows between group companies are eliminated on consolidation. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. |
Investments in Subsidiaries and Associates |
Investments in subsidiary unlisted company shares are valued at cost less impairment. |
Investments |
Investments comprise investments in unquoted equity instruments which are measured at fair value. Changes in fair value are recognised in the income statement. Where fair value cannot be measured reliably, then the investment is carried at cost less impairment. |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Revenue |
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: |
Sale of goods |
Revenue from the sale of goods is recognised when all of the following conditions are satisfied: |
- the significant risks and rewards of ownership have been transferred to the buyer; |
- the group retains no continuing involvement or control over the goods; |
- the amount of revenue can be measured reliably; |
- it is probable that future economic benefits will flow through the group |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
Rendering of services and contracting |
Revenue from a contract to provide services is recognised in the period in which the serves are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: |
- the amount of revenue can be measured reliably; |
- it is probable that the group will receive the consideration due under the contract; |
- the stage of completion of the contract at the end of the reporting period can be measured |
reliably, and; |
- the costs incurred and the costs to complete the contract can be measured reliably. |
Property, plant and equipment |
Property, Plant and Equipment under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
The group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Income Statement during the period in which they are incurred. |
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives. The estimated useful lives range as follows: |
Plant and Machinery | - 20% straight line |
Fixtures and Fittings | - 20% straight line |
The asset's residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or there is an indication of a significant change since the last reporting date. |
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within the Income Statement. |
Inventories |
Stocks are valued at the lower of cost and net realisable value. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition. Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling. |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
(i) Functional and presentation currency |
The group financial statements are presented in pound sterling. |
The company's functional and presentation currency is pound sterling. |
(ii) Transactions and balances |
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. |
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. |
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the profit and loss account. |
The trading results of group undertakings are translated into sterling at the average exchange rates for the year. The assets and liabilities of overseas undertakings are translated at the exchange rates ruling at the year end. Exchange adjustments arising from the retranslation of opening net investments and from the translation of the profits or losses at average rates are recognised in "Other comprehensive income" |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to the income statement on a straight line basis over the period of the lease. |
Where the group enters into a lease which entails taking substantially all the risks and rewards of ownership of an asset, the lease is treated as a "finance lease". The asset is recorded in the balance sheet as a tangible fixed asset and is depreciated over its estimated useful economic life or the term of the lease, whichever is shorter. Future instalments under such leases, net of finance charges, are included within creditors. Rentals payable are apportioned between the finance element, which is charged to the consolidated Income statement, and the capital element which reduces the outstanding obligation for future instalments. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Financial instruments |
The group have chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. |
(i) Financial assets |
Basic financial assets, including trade and other receivables, cash and bank balances and amounts owed by related parties are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. |
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 the income statement. |
If there is 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. |
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions. |
(ii) Financial liabilities |
Basic financial liabilities, including trade and other payables, bank loans and overdrafts and amounts owed to related parties 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates. |
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. |
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires. |
(iii) Offsetting |
Financial assets and liabilities are offset and 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. |
Finance costs |
Finance costs are charged to the Income statement and retained earnings over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ACCOUNTING POLICIES - continued |
Dividends |
Dividends are recognised when they become legally payable. Interim dividends are recognised when paid. Final dividends are recognised when approved by the shareholders at an annual general meeting. |
Share capital |
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds. |
Cash and cash equivalents |
Cash and cash equivalents includes cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. |
Government grants |
Grants that relate to specific capital expenditure are treated as deferred income which is then credited to the Profit and loss account over the related asset's useful economic life. Other grants are credited to the consolidated Income statement account when receivable. |
Warranty provision |
Provisions for warranty related costs are recognised based on experience of the costs of making good claims under warranty. The future cash flows are estimated based on a number of factors, including historical claim and cost experience, the duration of the warranty coverage and the nature of the product sold. The estimate for warranty related costs is reviewed annually and adjusted as appropriate through cost of sales. |
4. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
(a) Critical judgements in applying the company's accounting policies |
There are no critical judgements in applying the company accounting policies. |
(b) Critical accounting estimates and assumptions |
Warranty Provision |
The group offers a warranty for any faulty goods sold. Provision is made for potential claims under warranty for goods which have been returned. Management review the level of sales and the number of warranty claims made of a regular basis in order to calculate the provision for future claims for goods sold. |
5. | TURNOVER |
No analysis of turnover is presented as the directors consider such disclosure to be seriously prejudicial to the company interests. |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
6. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries | 2,710,902 | 3,534,645 |
Social security costs | 274,455 | 352,685 |
Other pension costs | 56,329 | 278,764 |
3,041,686 | 4,166,094 |
The average number of employees during the year was as follows: |
2024 | 2023 |
Sales and Administration | 9 | 8 |
Direct | 60 | 60 |
69 | 68 |
The directors of the group are considered to be key management. |
30/6/24 | 30/6/23 |
£ | £ |
Directors' remuneration | 21,600 | 19,800 |
There are no employees within the parent company. |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery | 706,373 | 829,599 |
Rent payable | 35,064 | 33,527 |
Depreciation - owned assets | 265,073 | 477,991 |
Profit on disposal of fixed assets | (74,180 | ) | (65,625 | ) |
Auditors' remuneration | 28,600 | 27,200 |
Foreign exchange differences | 51,869 | 196,253 |
8. | EXCEPTIONAL ITEMS |
30/6/24 | 30/6/23 |
£ | £ |
Exceptional item | (1,246,136 | ) | (503,341 | ) |
The exceptional item in the financial statements relates to the provision of a Related Party |
balance amounting to £1,246,136, recoverability of which is uncertain. This balance was not connected to the core business undertakings of the group. |
9. | FINANCE COSTS |
30/6/24 | 30/6/23 |
£ | £ |
Bank Interest | 10,940 | 15,552 |
Hire purchase interest | 70,769 | 39,433 |
81,709 | 54,985 |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
10. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30/6/24 | 30/6/23 |
£ | £ |
Current tax: |
UK corporation tax | 443,185 | 637,713 |
Adjustments in respect of |
previous periods | 3,003 | 182,738 |
Total current tax | 446,188 | 820,451 |
Deferred tax: |
Deferred tax | 170,283 | 137,681 |
Adjustment in respect of prior |
periods | - | (2,837 | ) |
Total deferred tax | 170,283 | 134,844 |
Tax on profit | 616,471 | 955,295 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30/6/24 | 30/6/23 |
£ | £ |
Profit before tax | 2,792,804 | 4,397,980 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 19 %) |
698,201 |
835,616 |
Effects of: |
Expenses not deductible for tax purposes | 282,469 | 88,151 |
Adjustments to tax charge in respect of previous periods | 3,003 | 179,904 |
Impact on non UK tax rates | (365,151 | ) | (74,441 | ) |
Movement in unrecognised deferred tax | (2,051 | ) | (66,421 | ) |
Impact of super deduction | - | (31,885 | ) |
Impact of rate change | - | 24,371 |
Total tax charge | 616,471 | 955,295 |
Tax effects relating to effects of other comprehensive income |
30/6/24 |
Gross | Tax | Net |
£ | £ | £ |
FX translation differences | (77,095 | ) | - | (77,095 | ) |
30/6/23 |
Gross | Tax | Net |
£ | £ | £ |
FX translation differences | (10,998 | ) | - | (10,998 | ) |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
11. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
12. | DIVIDENDS |
30/6/24 | 30/6/23 |
£ | £ |
Ordinary Share Capital shares of £1 each |
Interim | 1,777,764 | 1,176,000 |
13. | PROPERTY, PLANT AND EQUIPMENT |
Group |
Fixtures |
Short | Plant and | and |
leasehold | machinery | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2023 | 192,732 | 4,285,579 | 312,913 | 4,791,224 |
Additions | - | 232,502 | 50,680 | 283,182 |
Disposals | - | (187,076 | ) | - | (187,076 | ) |
At 30 June 2024 | 192,732 | 4,331,005 | 363,593 | 4,887,330 |
DEPRECIATION |
At 1 July 2023 | - | 2,752,951 | 192,200 | 2,945,151 |
Charge for year | - | 219,536 | 45,537 | 265,073 |
Eliminated on disposal | - | (130,104 | ) | - | (130,104 | ) |
At 30 June 2024 | - | 2,842,383 | 237,737 | 3,080,120 |
NET BOOK VALUE |
At 30 June 2024 | 192,732 | 1,488,622 | 125,856 | 1,807,210 |
At 30 June 2023 | 192,732 | 1,532,628 | 120,713 | 1,846,073 |
The net book value of assets held under finance leases or hire purchase contracts at the year end was £1,091,425 (2023: £1,091,425). The depreciation charged in the year for these assets was £176,485 (2023: £164,050). |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | PROPERTY, PLANT AND EQUIPMENT - continued |
Company |
Fixtures |
Short | Plant and | and |
leasehold | machinery | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 July 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 June 2024 |
DEPRECIATION |
At 1 July 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The net book value of assets held under finance leases or hire purchase contracts at the year end was £478,300 (2023: £448,434). The depreciation charged in the year for these assets was £37,660 (2023: £49,729). |
14. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The shares held in the subsidiary company, Konfloor Limited, which is registered and incorporated in Northern Ireland, represents a 100% holding of the issued share capital. Konfloor Limited is involved in the contracting of industrial flooring. The registered address of Konfloor Limited is Suite D, Armagh Business Park, 50 Hamiltonsbawn Road, Co. Armagh. |
The shares held in the subsidiary company, Konfloor (Irl) Limited, which is registered and incorporated in Republic of Ireland, represents a 100% equity holding of shares. Konfloor (Irl) Limited is involved in the contracting of industrial flooring. The registered address of Konfloor (Irl) Limited is Unit 7, Emyvale Enterprise Centre, Mill Road, Co.Monaghan. |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
15. | STOCKS |
Group |
30/6/24 | 30/6/23 |
£ | £ |
Inventories | 343,420 | 299,516 |
Work-in-progress | - | 266,046 |
343,420 | 565,562 |
The company had no inventories or work-in-progress at the 30 June 30/6/24 (30/6/23: £Nil). |
16. | RECEIVABLES |
Group | Company |
30/6/24 | 30/6/23 | 30/6/24 | 30/6/23 |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade receivables | 5,018,802 | 10,356,852 |
Amounts owed by group undertakings | - | - |
Other receivables | 949,987 | 2,177,981 |
Directors' current accounts | 2,514,734 | 2,016,163 | 2,514,734 | 2,016,163 |
Prepayments and accrued income | 40,741 | 32,275 |
8,524,264 | 14,583,271 |
Amounts falling due after more than | one year: |
Other debtors | 833,124 | 1,473,887 |
Aggregate amounts | 9,357,388 | 16,057,158 |
The amounts owed by group undertakings are interest free and receivable on demand. |
17. | PAYABLES: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30/6/24 | 30/6/23 | 30/6/24 | 30/6/23 |
£ | £ | £ | £ |
Hire purchase contracts (see note 19) | 223,403 | 265,425 |
Trade payables | 2,212,218 | 8,016,341 |
Amounts owed to group undertakings | - | - |
Corporation Tax | 115,019 | 590,657 |
Social security and other taxes | 105,933 | 123,575 |
Other payables | 10,291 | 13,108 |
Accruals and deferred income | 117,807 | 100,310 |
2,784,671 | 9,109,416 |
The amounts owed to group undertakings are interest free and payable on demand. |
18. | PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR |
Group | Company |
30/6/24 | 30/6/23 | 30/6/24 | 30/6/23 |
£ | £ | £ | £ |
Hire purchase contracts (see note 19) | 563,748 | 695,573 |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
18. | PAYABLES: AMOUNTS FALLING DUE AFTER ONE YEAR - continued |
Hire purchase balances are secured against the assets to which they relate. |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase | contracts |
30/6/24 | 30/6/23 |
£ | £ |
Net obligations repayable: |
Within one year | 223,403 | 265,425 |
Between one and five years | 563,748 | 695,573 |
787,151 | 960,998 |
Company |
Hire purchase | contracts |
30/6/24 | 30/6/23 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Hire purchase and finance leases are secured by the assets to which they relate. |
20. | FINANCIAL INSTRUMENTS |
2024 | 2023 |
£ | £ |
Financial assets |
Financial assets that are debt instruments measured at amortised cost |
8,379,463 |
14,008,720 |
Financial liabilities |
Financial liabilities measured at amortised cost |
(3,127,468 |
) |
(9,090,757 |
) |
Financial assets measured at amortised cost comprise of trade debtors, other debtors and director's current accounts. |
Financial liabilities measured at amortised cost comprise of bank overdraft, trade creditors, other creditors, accruals and obligations under finance lease and hire purchase agreements. |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
21. | PROVISIONS FOR LIABILITIES |
Group | Company |
30/6/24 | 30/6/23 | 30/6/24 | 30/6/23 |
£ | £ | £ | £ |
Deferred tax | 399,539 | 229,256 | 248,283 | 52,341 |
Other provisions |
Warranty provision | 710,973 | 856,191 | - | - |
Aggregate amounts | 1,110,512 | 1,085,447 | 248,283 | 52,341 |
Group |
Deferred tax |
£ |
Balance at 1 July 2023 | 229,256 |
Provided during year | 170,283 |
Balance at 30 June 2024 | 399,539 |
Company |
Deferred tax |
£ |
Balance at 1 July 2023 |
Movement | 195,942 |
Balance at 30 June 2024 |
The provision for deferred tax relates to accelerated capital allowances. |
22. | CALLED UP SHARE CAPITAL |
Allotted, Issued and fully paid Number: |
Class |
Nominal Value |
2024 |
2023 |
£ | £ |
240 | Ordinary Share Capital | £1 | - | 240 |
40 | A Ordinary Share Capital | £1 | 40 | - |
40 | B Ordinary Share Capital | £1 | 40 | - |
40 | C Ordinary Share Capital | £1 | 40 | - |
40 | D Ordinary Share Capital | £1 | 40 | - |
40 | E Ordinary Share Capital | £1 | 40 | - |
40 | F Ordinary Share Capital | £1 | 40 | - |
23. | PENSION COMMITMENTS |
The group operates a defined contribution scheme for certain employees. The assets of the scheme are held separately from those of the group and company in an independently administered fund. |
24. | ULTIMATE CONTROLLING PARTY |
As none of the shareholders hold a majority shareholding there is deemed to be no ultimate controlling party. |
KONSTRUCTION CONTRACT SERVICES LTD (REGISTERED NUMBER: NI634086) |
Notes to the Consolidated Financial Statements - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
25. | RELATED PARTY TRANSACTIONS |
The directors have identified the following transactions, which fall to be disclosed under the terms of paragraph 33, 1A from the provisions of FRS102 "Related Party Disclosures". |
Dividends of £1,777,764 (2023: £1,176,000) were paid to the directors by virtue of their shareholding in the company. |
Included within debtors due within one year (note 16) is a balance of £2,514,734 (2023: £2,016,163) owed by the directors to the group. Amounts owed by directors are interest free and payable on demand. |
The exceptional item as detailed in note 8 relates to an irrecoverable debt in respect of a balance outstanding from a party related through common directors. |