REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
J K R CONTRACTORS LTD. |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
J K R CONTRACTORS LTD. |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
CONTENTS OF THE FINANCIAL STATEMENTS |
for the Year Ended 31 March 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Income Statement | 9 |
Other Comprehensive Income | 10 |
Statement of Financial Position | 11 |
Statement of Changes in Equity | 12 |
Statement of Cash Flows | 13 |
Notes to the Statement of Cash Flows | 14 |
Notes to the Financial Statements | 15 |
J K R CONTRACTORS LTD. |
COMPANY INFORMATION |
for the Year Ended 31 March 2024 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
7 Faraday Court |
First Avenue |
Burton on Trent |
Staffordshire |
DE14 2WX |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
STRATEGIC REPORT |
for the Year Ended 31 March 2024 |
The directors present their strategic report for the year ended 31 March 2024. |
REVIEW OF BUSINESS |
The company continues to specialise in civil engineering including drainage, earth works, road works, hard landscaping, utility installation and various other civil engineering projects throughout the North East of Scotland. |
This financial year has again shown a trading loss before tax amounting to £3,893,001 (2023: £2,489,285 profit). |
The 2024 results include the effect of transactions relating to a restructure during the year which involved the inclusion of the company into a group of companies under the same ownership and management. The results are therefore not directly comparable to 2023. As part of the restructure, intercompany loans of £5,559,184 were written off, as detailed in note 11 to the financial statements. This had a significant impact on the results reported for the year. Aside from the restructure, the company also reported a bad debt of £209,584. Excluding the loan balances written off as a result of the restructure and the bad debt, the company would have reported profits of £1,875,767. |
The restructure also impacted the balance sheet of JKR Contractors Limited with Investment Properties of £5,469,000 being more appropriately positioned within the group. Following the year end the bank loan was repaid, also as part of the restructure arrangement and no bank loans exist within JKR Contractors Limited in the post year end period. |
The JKR group of companies reported net assets for the year ended 31 March 2024 of £21,014,330. |
In relation to the normal trading position of JKR Contractors Limited, the company has maintained the level of revenue in the current year as a result of continuing to build on previous relationships as well as developing new ones. |
The company remains in a strong financial position at the year end, due to a successful year despite challenges across the wider economy in relation to inflation rates and energy prices. The continued buoyancy in the local market following the pandemic, together with the nature of contracts completed in the year have accounted for strong performance in the year. |
In the coming year the company plans to continue develop existing and pursue new relationships to maintain the growth achieved to date. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Risk management is addressed through a framework of policies, procedures and internal controls. All policies are subject to Board approval and ongoing review by management. Compliance with all regulation and legal requirements is a high priority for the company. |
The principal risks and uncertainties for the business continue to relate to the supply of labour and tradesmen. However, the company manage this by recruiting staff based on the demand required. The company continues to monitor these market conditions closely and implement such measures as necessary to mitigate these risks to the company in order to remain competitive. |
A risk which has increased in prominence over the year is potential business failure of the main contractors for whom projects are being carried out. This risk is managed by close monitoring of contract payment terms and consideration when engaging with new customers. |
Financial performance of the company is monitored on an ongoing basis to ensure cash flow remains at desired levels with credit control being managed in relation to credit limits and ageing which ensures sufficient funds are available to meet all liabilities as they fall due. |
FUTURE DEVELOPMENTS |
In the coming year the company plans to continue to develop existing and pursue new relationships to maintain the growth achieved to date. |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
STRATEGIC REPORT |
for the Year Ended 31 March 2024 |
KEY PERFORMANCE INDICATORS |
The main key performance indicators were as follows: |
Gross profit margin - 2024: 20.3% (2023: 20.5%) |
Net profit/(loss) before tax - 2024: £(3,893,001) (2023: £2,489,285) |
Key performance indicators are monitored by the Board throughout the year to ensure they are in line with expectations. |
ON BEHALF OF THE BOARD: |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 March 2024 |
The directors present their report with the financial statements of the company for the year ended 31 March 2024. |
PRINCIPAL ACTIVITIES |
The principal activities of the company in the year under review were those of civil engineering and concrete works. |
DIVIDENDS |
No interim dividends were paid during the year ended 31 March 2024. |
The directors recommend final dividends per share as follows: |
"A" ordinary £1 shares | £2,314.12 |
"B" ordinary £1 shares | £1,713.08 |
"C" ordinary £1 shares | £1,713.08 |
Ordinary £1 shares | £20,087.38 |
The total distribution of dividends for the year ended 31 March 2024 will be £2,210,098. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report. |
POLITICAL DONATIONS AND EXPENDITURE |
During the year the company has made various charitable donations to local charities. There were no political donations made. |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen to set out in the review of the business information required to be stated in relation to the director's report, specifically, likely future developments of the business. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 of 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 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 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. |
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 company'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 company's auditors are aware of that information. |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
REPORT OF THE DIRECTORS |
for the Year Ended 31 March 2024 |
AUDITORS |
The auditors, NUVO Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
J K R CONTRACTORS LTD. |
Opinion |
We have audited the financial statements of J K R Contractors Ltd. (the 'company') for the year ended 31 March 2024 which comprise the Income Statement, Other Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity, Statement of Cash Flows and Notes to the 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 company's affairs as at 31 March 2024 and of its loss 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors 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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
J K R CONTRACTORS LTD. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company, focusing on provisions of those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks identified include: |
- UK GAAP |
- Companies Act 2006 |
- Corporation Tax legislation |
- VAT legislation |
- Health and Safety legislation |
We gained an understanding of how the company is complying with these laws and regulations by: |
- enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims; |
- enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
- reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
We assessed the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. The following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error: |
- reviewing the level of and reasoning behind the company's procurement of legal and professional services; |
- performing audit procedures over the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business and reviewing judgements made by the management in their calculation of accounting estimates for potential management bias. |
Our audit procedures were designed to respond to the risk of material misstatement in the financial statements, recognising that the risk of not detecting a material risk due to fraud is higher than the risk of not detecting one resulting from error as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. |
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 Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
J K R CONTRACTORS 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 a Report of the Auditors 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 |
7 Faraday Court |
First Avenue |
Burton on Trent |
Staffordshire |
DE14 2WX |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
INCOME STATEMENT |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(3,924,635 | ) | 2,536,129 |
Other operating income |
OPERATING (LOSS)/PROFIT | 6 | ( |
) |
Interest receivable and similar income |
(3,641,296 | ) | 2,667,230 |
Interest payable and similar expenses | 8 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 9 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
OTHER COMPREHENSIVE INCOME |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
(LOSS)/PROFIT FOR THE YEAR | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
STATEMENT OF FINANCIAL POSITION |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 |
Investment property | 13 |
CURRENT ASSETS |
Stocks | 14 |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 17 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 21 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Non distributable reserves | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
STATEMENT OF CHANGES IN EQUITY |
for the Year Ended 31 March 2024 |
Called up | Non |
share | Retained | distributable | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 April 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - | ( |
) | ( |
) | ( |
) |
Balance at 31 March 2024 |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
STATEMENT OF CASH FLOWS |
for the Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of hire purchase payments paid | ( |
) | ( |
) |
Tax paid | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Sale of investment property |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) |
Amount introduced by directors | 85,679 | 139,248 |
Amount withdrawn by directors | (129,622 | ) | (1,250 | ) |
Amounts loaned to associates | ( |
) |
Government grants |
Amounts loaned to group companies | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 337,100 |
Cash and cash equivalents at end of year | 2 | 138,418 | 658,957 |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
NOTES TO THE STATEMENT OF CASH FLOWS |
for the Year Ended 31 March 2024 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Loss/(profit) on disposal of fixed assets | ( |
) |
Government grants | ( |
) |
Finance costs | 251,705 | 177,945 |
Finance income | (16,673 | ) | (3,866 | ) |
(2,855,540 | ) | 3,419,936 |
Increase in stocks | ( |
) | ( |
) |
Decrease in trade and other debtors |
Decrease in trade and other creditors | ( |
) | ( |
) |
Cash generated from operations |
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 31 March 2024 |
31.3.24 | 1.4.23 |
£ | £ |
Cash and cash equivalents | 138,418 | 658,957 |
Year ended 31 March 2023 |
31.3.23 | 1.4.22 |
£ | £ |
Cash and cash equivalents | 658,957 | 337,100 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.4.23 | Cash flow | At 31.3.24 |
£ | £ | £ |
Net cash |
Cash at bank | 658,957 | (520,539 | ) | 138,418 |
658,957 | ( |
) | 138,418 |
Debt |
Finance leases | (1,843,567 | ) | 314,147 | (1,529,420 | ) |
Debts falling due within 1 year | (133,917 | ) | (2,385,755 | ) | (2,519,672 | ) |
Debts falling due after 1 year | (2,503,009 | ) | 2,503,009 | - |
(4,480,493 | ) | 431,401 | (4,049,092 | ) |
Total | (3,821,536 | ) | (89,138 | ) | (3,910,674 | ) |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
NOTES TO THE FINANCIAL STATEMENTS |
for the Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
J K R Contractors Ltd. is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Related party exemption |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Turnover |
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. |
Turnover is only recognised on a construction contract where the outcome can be estimated reliably. Variations to, and claims arising in respect of, construction contracts are included in revenue to the extent that they have been agreed with the customer. Turnover and costs are recognised by reference to the stage of completion of contract activity at the balance sheet date. This is normally measured by surveys of work performed to date. An estimate of the profit attributable to work completed is recognised once the outcome of the contract can be assessed with reasonable certainty. Contracts are only treated as construction contracts when they have been specifically negotiated for the construction of a development or property. When it is probable that the total costs on a construction contract will exceed contract revenue, the expected loss is recognised as an expense in the profit & loss account immediately. |
Amounts recoverable on construction contracts are included in trade receivables and stated at cost plus attributable profit less any foreseeable losses. The costs on contracts not yet taken to the profit and loss account less related foreseeable losses and payments on account are shown in stocks and work in progress. Payments received in excess of amounts recoverable on construction contracts are included in payments on account within creditors. |
Tangible fixed assets |
Freehold property | - |
Wind Turbine | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Land, included within freehold property, is considered to have an infinite useful life and is therefore not depreciated. |
The assets' residual values and useful lives are reviewed and adjusted, if appropriate, at the end of each reporting period. The effect of any change is accounted for prospectively. |
Investment property |
Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss. |
Stocks |
Work in progress, including land, is valued at the lower of cost and net realisable value. |
Costs include raw materials, consumables and direct labour. Net realisable value is based on estimated selling price less anticipated costs to completion. Provision is made for all foreseeable losses. |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
3. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
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. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Construction contracts |
Amounts recoverable on construction contracts, which are included in debtors, are stated at the net sales value of the work done after provision for contingencies and anticipated future losses on contracts, less amounts received as progress payments on contracts, less amounts received as progress payments on account. |
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. Cost 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. |
4. | TURNOVER |
The turnover and loss (2023 - profit) before taxation are attributable to the principal activities of the company. |
Contract revenue recognised in the period is £32,288,911 (2023: £32,010,092) . |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
2024 | 2023 |
Engineers | 6 | 5 |
Estimators | 4 | 3 |
Surveyors | 5 | 5 |
Buyers | 1 | 1 |
Admin & Finance | 5 | 3 |
Contracts manager | 4 | 4 |
H & S Officer | 2 | 1 |
Operational staff | 99 | 107 |
Directors | 7 | 7 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
2024 | 2023 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
6. | OPERATING (LOSS)/PROFIT |
The operating loss (2023 - operating profit) is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss/(profit) on disposal of fixed assets | ( |
) |
7. | AUDITORS' REMUNERATION |
2024 | 2023 |
£ | £ |
Fees payable to the company's auditors for the audit of the company's financial statements |
12,950 |
12,500 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Hire purchase |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Prior year CT over/(under) provision | (3,541 | ) | - |
Prior year adjustment | 412 | - |
Total current tax |
Deferred tax | ( |
) |
Tax on (loss)/profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of (2023 - |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Utilisation of tax losses | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) |
Deferred tax on accelerated capital allowances | ( |
) |
Deferred tax on revaluation of properties |
Loss carried forward |
Losses surrendered from Group | ( |
) |
Intercompany loan write off |
Total tax charge | 139,704 | 461,641 |
10. | DIVIDENDS |
2024 | 2023 |
£ | £ |
"A" ordinary shares of £1 each |
Final | 115,706 | 153,847 |
"B" ordinary shares of £1 each |
Final | 42,827 | 59,192 |
"C" ordinary shares of £1 each |
Final | 42,827 | 59,192 |
Ordinary shares of £1 each |
Final | 2,008,738 | - |
2,210,098 | 272,231 |
11. | EXCEPTIONAL ITEMS |
During the year to 31 March 2024, loan balances totalling £5,559,184 (2023: £nil) were written off as part of a group restructure. |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
12. | TANGIBLE FIXED ASSETS |
Freehold | Wind | Plant and |
property | Turbine | machinery |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Fixtures |
and | Motor | Computer |
fittings | vehicles | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
12. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and | Motor |
machinery | vehicles | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
Transfer to ownership | (854,700 | ) | - | (854,700 | ) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
Transfer to ownership | (442,380 | ) | - | (442,380 | ) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
13. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 April 2023 |
Disposals | ( |
) |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
14. | STOCKS |
2024 | 2023 |
£ | £ |
Work-in-progress |
15. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Amounts owed by related parties | - | 6,768,276 |
Directors' current accounts | 321,192 | 317,452 |
VAT |
Prepayments and accrued income |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
15. | DEBTORS - continued |
2024 | 2023 |
£ | £ |
Amounts falling due after more than one year: |
Trade debtor retentions |
Other debtors |
Aggregate amounts |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 18) |
Hire purchase contracts (see note 19) |
Trade creditors |
Corporation tax | ( |
) |
Social security and other taxes |
Other creditors |
Directors' current accounts | 280,922 | 321,125 |
Accruals and deferred income |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 18) |
Hire purchase contracts (see note 19) |
Accruals and deferred income |
The company was advanced a loan of £200,000 in November 2018. The loan is repayable in 48 monthly installments. The rate of interest is 2.79% per annum over the Base Rate. This loan was repaid in full during the year. |
The company was advanced a loan of £1,435,000 in November 2018. The loan is repayable in 60 monthly installments. The rate of interest is 2.75% per annum over the Base Rate. |
The company was advanced a loan of £1,635,000 in November 2018. The loan is repayable in 60 monthly installments. The rate of interest is fixed at 4.56% per annum. |
18. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans less than 1 year |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
20. | SECURED DEBTS |
A bond and floating charge is held by The Royal Bank of Scotland over all the assets of the company. |
A standard security is held by The Royal Bank of Scotland in respect of the ground at Backhill of Coldwells. |
A standard security is held by The Royal Bank of Scotland in respect of the farmland and buildings at Cairnfechel Farm, Udny. |
21. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax | 1,206,267 | 1,430,491 |
Deferred |
tax |
£ |
Balance at 1 April 2023 |
Provided during year | ( |
) |
Balance at 31 March 2024 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
50 | "A" ordinary | £1 | - | 50 |
25 | "B" ordinary | £1 | - | 25 |
25 | "C" ordinary | £1 | - | 25 |
100 | Ordinary | £1 | 100 | - |
100 | 100 |
All share classes carry full voting rights. |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
23. | RESERVES |
Non |
Retained | distributable |
earnings | reserves | Totals |
£ | £ | £ |
At 1 April 2023 | 15,691,699 |
Deficit for the year | ( |
) | ( |
) |
Dividends | ( |
) | ( |
) |
Revaluation | 746,078 | (746,078 | ) | - |
At 31 March 2024 | 9,448,896 |
24. | PENSION COMMITMENTS |
The company's defined contribution pension cost for the year was £447,361 (2023: £480,398). Outstanding contributions as at the year end totalled £59,158 (2023: £51,423) in relation to employers and employees contributions. |
25. | ULTIMATE PARENT COMPANY |
The company is controlled by the parent company, JKR Group (Holdings) Limited, a company registered in Scotland. The accounts of JKR Group (Holdings) Limited, which reflect the consolidation of the company, are available from its registered office at Backhill of Coldwells, Arthrath, Ellon, Aberdeenshire, United Kingdom, AB41 8YX. |
26. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 March 2024 and 31 March 2023: |
2024 | 2023 |
£ | £ |
Balance outstanding at start of year | ( |
) | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) | ( |
) |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
Balance outstanding at start of year |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year |
J K R CONTRACTORS LTD. (REGISTERED NUMBER: SC316582) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
for the Year Ended 31 March 2024 |
26. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES - continued |
Balance outstanding at start of year | ( |
) | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) | ( |
) |
Balance outstanding at start of year | ( |
) | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) |
Balance outstanding at start of year | ( |
) | ( |
) |
Amounts advanced |
Amounts repaid | ( |
) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | ( |
) |
These loans are interest free and there are no fixed repayment terms. |
27. | RELATED PARTY DISCLOSURES |
During the year, a total of key management personnel compensation of £ |
28. | POST BALANCE SHEET EVENTS |
In the post year end period, the company has received an amount of £2.5m from a group company to partially repay an intercompany loan. This amount has been used to repay the bank loan balance in full. |
In October 2024, the company has entered into an agreement to purchase an asset amounting to £342,500. |
In March 2025, the company has committed to enter into agreements to purchase two assets amounting to £219,000. |
29. | ULTIMATE CONTROLLING PARTY |
The company is ultimately controlled by Audrey Taylor, James Taylor, Kevin Taylor and Ryan Taylor by virtue of their shareholding in the parent company, JKR Group (Holdings) Limited. |