Company registration number 03307983 (England and Wales)
FLANAGAN BUILDING & MAINTENANCE SERVICES LTD
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
PAGES FOR FILING WITH REGISTRAR
FLANAGAN BUILDING & MAINTENANCE SERVICES LTD
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
FLANAGAN BUILDING & MAINTENANCE SERVICES LTD
BALANCE SHEET
AS AT
31 OCTOBER 2023
31 October 2023
- 1 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
4
4,161
Current assets
Debtors
5
8,848,469
10,130,466
Cash at bank and in hand
3,074
12,875
8,851,543
10,143,341
Creditors: amounts falling due within one year
6
(8,811,954)
(10,047,533)
Net current assets
39,589
95,808
Net assets
39,589
99,969
Capital and reserves
Called up share capital
44,444
44,444
Profit and loss reserves
(4,855)
55,525
Total equity
39,589
99,969
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 21 February 2025 and are signed on its behalf by:
Mr P P Flanagan
Director
Company registration number 03307983 (England and Wales)
FLANAGAN BUILDING & MAINTENANCE SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2023
- 2 -
1
Accounting policies
Company information
Flanagan Building & Maintenance Services Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Atlantic House, 143 Sefton Street, Liverpool, England, L8 5SN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 4 ‘Statement of Financial Position’: Reconciliation of the opening and closing number of shares;
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’: Carrying amounts, interest income/expense and net gains/losses for each category of financial instrument; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Flanagan Group Limited. These consolidated financial statements are available from its registered office,
Atlantic House
143 Sefton Street
Liverpool
L8 5SN
1.2
Going concern
The Company is no longer reliant on bank financial support following repayment of the Flanagan Group bank borrowings during the year. The Company has completed several large construction contracts over the past few years and management continues to make appropriate provision for contract remedial work. It has made loans to a related party to allow it to undertake construction contracts in its own right. Management are confident on the profitability of its ongoing operations and recoverability of loans and continue to adopt the going concern basis of accounting in preparing these financial statements.true
FLANAGAN BUILDING & MAINTENANCE SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 3 -
1.3
Turnover
Turnover , which is stated net of value added tax, represents the value of services provided to clients during the year, after provisions for contingencies and anticipated future losses on contracts, including amounts not invoiced. The turnover and pre-tax profit is attributable to the ordinary activities of the Company.
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Research and development expenditure
Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Plant and equipment
25% on reducing balance
Fixtures and fittings
25% on reducing balance
Computers
25% on reducing balance
Motor vehicles
25% on reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Provision is made for obsolete, slow-moving or defective items where appropriate.
1.6
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
FLANAGAN BUILDING & MAINTENANCE SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 4 -
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.7
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
FLANAGAN BUILDING & MAINTENANCE SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
1
Accounting policies
(Continued)
- 5 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.8
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.9
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Exceptional item
In the previous year intercompany balances totalling £1,464,002 were written off to Profit & Loss following debt forgiveness by the company's bankers
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
26
FLANAGAN BUILDING & MAINTENANCE SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 6 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 November 2022
65,029
Disposals
(65,029)
At 31 October 2023
Depreciation and impairment
At 1 November 2022
60,868
Depreciation charged in the year
3,241
Eliminated in respect of disposals
(64,109)
At 31 October 2023
Carrying amount
At 31 October 2023
At 31 October 2022
4,161
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
26,531
Corporation tax recoverable
91,952
Other debtors
8,848,469
10,011,983
8,848,469
10,130,466
6
Creditors: amounts falling due within one year
2023
2022
£
£
Other borrowings
650,000
Trade creditors
59,715
452,969
Amounts owed to group undertakings
121,000
Corporation tax
14,166
Other taxation and social security
13,733
Other creditors
78,219
18,242
Accruals and deferred income
8,538,854
8,912,589
8,811,954
10,047,533
FLANAGAN BUILDING & MAINTENANCE SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
- 7 -
7
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor: Tor Stringfellow FCA
Statutory Auditor:
Williamson & Croft Audit Limited
Date of audit report:
21 February 2025
8
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
5,995
9
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Sales
Sales
2023
2022
£
£
Entities with control, joint control or significant influence over the company
113,203
Other related parties
69,380
Rent payable
2023
2022
£
£
Other related parties
-
6,000
2023
2022
Amounts due to related parties
£
£
Fellow group entities
121,000
-
FLANAGAN BUILDING & MAINTENANCE SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
9
Related party transactions
(Continued)
- 8 -
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Other related parties
8,721,950
9,416,470
Other information
During the year the company rented part of a property owned by a related party. Rent was charged at a commercial rate.
The balance due to directors at year-end was £61,167.
10
Parent company
The ultimate parent company of the reporting entity is Flanagan Group Limited, by virtue of its holding of 100% of the reporting entity's issued share capital.
Flanagan Group Limited is the parent undertaking of the largest (and smallest) group for which group accounts are drawn and of which the reporting company is a member. Copies of the group accounts can be obtained from:
Atlantic House
Liverpool
L8 5SN
11
Prior period adjustment
Reconciliation of changes in equity
1 November
31 October
2021
2022
£
£
Adjustments to prior year
Overstated wages accrual
-
33,767
Equity as previously reported
773,301
66,202
Equity as adjusted
773,301
99,969
Analysis of the effect upon equity
Profit and loss reserves
-
33,767
FLANAGAN BUILDING & MAINTENANCE SERVICES LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2023
11
Prior period adjustment
(Continued)
- 9 -
Reconciliation of changes in loss for the previous financial period
2022
£
Adjustments to prior year
Overstated wages accrual
33,767
Loss as previously reported
(707,099)
Loss as adjusted
(673,332)
Notes to reconciliation
Correction of prior period overstated wages.
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