Company registration number 10668769 (England and Wales)
VENTOL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
VENTOL LIMITED
COMPANY INFORMATION
Directors
Mr L Corbett
Mr D M Kenna
Mr L Franks
Mr E C Mordue
Mr A Powell
(Appointed 14 March 2025)
Company number
10668769
Registered office
Unit 1 & 2 Landsberg
Lichfield Road Industrial Estate
Tamworth
B79 7XB
Auditor
Sumer Auditco Limited
The Beehive
Beehive Ring Road
London Gatwick Airport
Gatwick
United Kingdom
RH6 0PA
VENTOL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 34
VENTOL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -
The directors present the strategic report for the year ended 30 June 2024.
Review of the business
The turnover for the year ended 30 June 2024 has increased to £36,874,162 (2023: £23,584,568).
The group has continued to strengthen its portfolio of services, which have been diversified in the previous financial year by making strategic additions to the group. This has included experienced professionals as well as additional office spaces, based both in the north and in London.
Our corporate values of Excellence, Innovation, Integrity and Collaboration continue to align seamlessly with our growth and continue to be intwined within all operations.
Principal risks and uncertainties
As per previous years, there have been numerous opportunities for growth and expansion – however, it is important to acknowledge that these also present potential risks and uncertainties, which continue to be carefully managed within the business.
The availability and pricing of materials has continued to be a challenge for the group throughout the financial year. Rigorous planning has been reviewed and continues to stay in place to ensure that projects are completed on time and within budgets.
Recruitment in the early part of the financial year continued to be a challenge, however, in the latter part of the year we have observed a change in the recruitment market with an increased selection of candidates now seeking work.
As we enter the new financial year with the potential of a new government, the Director team have begun strategically planning for political uncertainties and changes.
Development and performance
The following pages present the group’s results. The Directors are pleased to note that the Gross Margin (GM) has remained steady throughout the financial year.
A proactive approach to Health and Safety has continued to be a focus for the year, further enhancing our current Processes and Compliance team across the group. The group have invested heavily in providing additional Health and Safety training to employees as well as implementing new processes and procedures enhancing our already strong Health and Safety procedures.
Implementation of increased controls and an increased compliance team has also supported increased controls and knowledge of our supply chain.
Employee training and development across the group has been a major focus for the year, with the group making substantial investments into training for employees across a broad range of areas.
Following comprehensive review of our internal software systems in the preceding year, new job management software was implemented at the start of the financial year. Having now had this software implemented over a 12-month period, the group feel that this has streamlined operations and has given the Directors deeper comprehensive reporting.
The group are committed to being as environmentally responsible as possible through all aspects of our operations and have made multiple advancements in our operations to ensure that as a business we have the lowest possible impact on the environment and the communities in which we operate. This includes applying an electric or hybrid company car policy whenever it is operationally practical and operating a paperless environment where operationally possible.
VENTOL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Key performance indicators
The group continues to be deeply committed to its core values, which continue to underpin our Key Performance Indicators (KPIs) in all aspects of the business.
The group have demonstrated commitment to compliance and adherence to industry-standard requirements, further adding to current accreditations and specialist memberships throughout the year.
The group has enhanced its measurement of KPIs throughout the year, utilising the reporting functions of our job management systems. This has provided increased reporting capabilities, enabling Directors to steer the direction of the group and evaluate current performance in all aspects of the business.
A summary of the group’s financial KPIs is detailed below, showing a further year of strong performance.
Future developments
Following the successful implementation of new software systems, further development of reporting and extending the features used on the software to enhance business operations will be a focus for the year moving forward.
Our commitment to the development and knowledge of our team will continue into the new financial year further investing in training and development across all levels of the business.
Mr L Franks
Director
24 March 2025
VENTOL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
The directors present their annual report and financial statements for the year ended 30 June 2024.
Principal activities
The principal activity of the company and group continued to be that of supplying and installing fire and security systems.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr L Corbett
Mr D M Kenna
Mr L Franks
Mr E C Mordue
Mr A Powell
(Appointed 14 March 2025)
Auditor
The auditor, Sumer Auditco Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Strategic report
The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the review of the business and principal risks and uncertainties.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr L Franks
Director
24 March 2025
VENTOL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, 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;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the ;
prepare the on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
VENTOL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VENTOL LIMITED
- 5 -
Opinion
We have audited the financial statements of Ventol Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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 the parent company's 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.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
The information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
VENTOL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VENTOL LIMITED
- 6 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
adequate accounting records have not been kept 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, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The key procedures we undertook to detect irregularities including fraud during the course of the audit included:
Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.
Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.
Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates.
Specifically review the calculations of work in progress, including valuation and stage of completion, to confirm that management's estimates are reasonable and valued in accordance with the applicable financial reporting framework.
Assessing the extent of compliance, or lack of, with the relevant laws and regulations.
Testing key income lines, in particular cut-off, for evidence of management bias.
Reviewing fixed assets for impairment, and challenging any assumptions made in this assessment.
Obtaining confirmation of material bank and loan balances.
Documenting and verifying all significant related party balances and transactions, and ensuring all balances are recoverable.
Reviewing consolidation adjustments for completeness and evidence of management bias, and confirming their accuracy.
VENTOL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VENTOL LIMITED
- 7 -
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation from the events and transactions reflected in the financial statements, as we will be less likely to be aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Mr Martin Bradley FCCA (Senior Statutory Auditor)
For and on behalf of Sumer Auditco Limited, Statutory Auditor
Chartered Accountants
The Beehive
Beehive Ring Road
London Gatwick Airport
Gatwick
RH6 0PA
United Kingdom
25 March 2025
VENTOL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
36,874,162
23,584,568
Cost of sales
(25,088,274)
(16,532,881)
Gross profit
11,785,888
7,051,687
Administrative expenses
(8,391,843)
(5,342,652)
Operating profit
4
3,394,045
1,709,035
Interest receivable and similar income
8
6,587
2,212
Interest payable and similar expenses
9
(26,308)
(11,378)
Profit before taxation
3,374,324
1,699,869
Tax on profit
10
(928,263)
(369,737)
Profit for the financial year
2,446,061
1,330,132
Profit for the financial year is attributable to:
- Owners of the parent company
2,400,089
1,282,145
- Non-controlling interests
45,972
47,987
2,446,061
1,330,132
Total comprehensive income for the year is attributable to:
- Owners of the parent company
2,400,089
1,282,145
- Non-controlling interests
45,972
47,987
2,446,061
1,330,132
The profit and loss account has been prepared on the basis that all operations are continuing operations.
VENTOL LIMITED
GROUP BALANCE SHEET
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
134,603
151,971
Tangible assets
13
499,569
306,356
634,172
458,327
Current assets
Stocks
17
2,579,895
1,493,518
Debtors
18
6,467,658
3,729,337
Cash at bank and in hand
1,558,449
1,383,318
10,606,002
6,606,173
Creditors: amounts falling due within one year
19
(6,112,982)
(4,265,147)
Net current assets
4,493,020
2,341,026
Total assets less current liabilities
5,127,192
2,799,353
Creditors: amounts falling due after more than one year
20
(53,083)
(102,083)
Provisions for liabilities
Deferred tax liability
22
105,727
57,949
(105,727)
(57,949)
Net assets
4,968,382
2,639,321
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
4,487,080
2,203,991
Equity attributable to owners of the parent company
4,487,180
2,204,091
Non-controlling interests
481,202
435,230
Total equity
4,968,382
2,639,321
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved by the board of directors and authorised for issue on
24 March 2025
24 March 2025
and are signed on its behalf by:
Mr L Franks
Director
Company registration number 10668769 (England and Wales)
VENTOL LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
410,178
209,805
Investments
14
517,983
517,983
928,161
727,788
Current assets
Stocks
17
1,237,435
585,395
Debtors
18
5,408,228
3,260,715
Cash at bank and in hand
347,992
150,326
6,993,655
3,996,436
Creditors: amounts falling due within one year
19
(3,735,370)
(2,378,438)
Net current assets
3,258,285
1,617,998
Total assets less current liabilities
4,186,446
2,345,786
Provisions for liabilities
Deferred tax liability
22
100,519
50,296
(100,519)
(50,296)
Net assets
4,085,927
2,295,490
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
4,085,827
2,295,390
Total equity
4,085,927
2,295,490
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £1,790,437 (2023 - £1,501,069 profit).
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on
24 March 2025
24 March 2025
and are signed on its behalf by:
Mr L Franks
Director
Company registration number 10668769 (England and Wales)
VENTOL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 July 2022
100
1,397,197
1,397,297
326,952
1,724,249
Year ended 30 June 2023:
Profit and total comprehensive income
-
1,282,145
1,282,145
47,987
1,330,132
Dividends
11
-
(415,000)
(415,000)
-
(415,000)
Acquisition of subsidiary
-
-
-
40
40
Purchase of shares in subsidiary from non-controlling interest
-
(60,351)
(60,351)
60,251
(100)
Balance at 30 June 2023
100
2,203,991
2,204,091
435,230
2,639,321
Year ended 30 June 2024:
Profit and total comprehensive income
-
2,400,089
2,400,089
45,972
2,446,061
Dividends
11
-
(117,000)
(117,000)
-
(117,000)
Balance at 30 June 2024
100
4,487,080
4,487,180
481,202
4,968,382
VENTOL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 July 2022
100
1,119,321
1,119,421
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
1,501,069
1,501,069
Dividends
11
-
(325,000)
(325,000)
Balance at 30 June 2023
100
2,295,390
2,295,490
Year ended 30 June 2024:
Profit and total comprehensive income
-
1,790,437
1,790,437
Balance at 30 June 2024
100
4,085,827
4,085,927
VENTOL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 13 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
1,059,749
904,703
Interest paid
(26,308)
(11,378)
Income taxes paid
(333,708)
(4,469)
Net cash inflow from operating activities
699,733
888,856
Investing activities
Purchase of tangible fixed assets
(336,775)
(182,502)
Proceeds from disposal of tangible fixed assets
23,081
28,474
Purchase of subsidiaries, net of cash acquired
40
Repayment of loans
(51,495)
-
Interest received
6,587
2,212
Net cash used in investing activities
(358,602)
(151,776)
Financing activities
Repayment of bank loans
(49,000)
(49,000)
Payment of finance leases obligations
-
(16,760)
Dividends paid to equity shareholders
(117,000)
(415,000)
Net cash used in financing activities
(166,000)
(480,760)
Net increase in cash and cash equivalents
175,131
256,320
Cash and cash equivalents at beginning of year
1,383,318
1,126,998
Cash and cash equivalents at end of year
1,558,449
1,383,318
VENTOL LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
484,881
395,775
Interest paid
(14,485)
Income taxes paid
(260,548)
(87,504)
Net cash inflow from operating activities
209,848
308,271
Investing activities
Purchase of tangible fixed assets
(296,280)
(150,564)
Proceeds from disposal of tangible fixed assets
28,474
Purchase of subsidiaries
(160)
Interest received
4,098
Dividends received
280,000
210,000
Net cash (used in)/generated from investing activities
(12,182)
87,750
Financing activities
Dividends paid to equity shareholders
(325,000)
Net cash used in financing activities
-
(325,000)
Net increase in cash and cash equivalents
197,666
71,021
Cash and cash equivalents at beginning of year
150,326
79,305
Cash and cash equivalents at end of year
347,992
150,326
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
1
Accounting policies
Company information
Ventol Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Unit 1 & 2 Landsberg, Lichfield Road Industrial Estate, Tamworth, B79 7XB.
The group consists of Ventol Limited and all of its subsidiaries.
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.
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.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Ventol Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
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.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
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.
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
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:
Leasehold improvements
20% straight line
Plant and equipment
20-25% straight line
Fixtures and fittings
20-25% straight line
Computers
33% straight line
Motor vehicles
25% straight line
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 recognised in the profit and loss account.
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.11
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 and incentive payments 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.
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.
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
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.
1.12
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
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.
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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.
If there is a 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.
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
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 group 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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.15
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 21 -
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
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 if, and only if, there is 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.
1.16
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.
1.17
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.18
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 leased asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Stage of completion of work in progress
In determining the amounts of income and profits/losses on work in progress to be recognised in the financial year, the directors consider factors such as costs incurred to date, estimated costs to complete, labour hours, any associated risks and past experience of similar contracts. The total amount of work in progress recognised for the group and parent at 30 June 2024 is detailed in the stock and work in progress note of these financial statements.
Accruals
Accrued expenditure is recognised where certain costs relate partly to the current and future year. The directors are required to estimate the proportion of this expenditure which relates to the current year. this is done on a straight line basis based on the number of days in the current and future period.
Accrued expenditure as also recognised for any future costs which relate to work carried out in the current year. These are reserved based on future invoices, and directors' estimates of the total costs expected to be invoiced.
The net amount of accrued expenditure is shown within the creditors note in these financial statements.
Revenue recognition for long term contracts
Where an item of revenue relates partly to both the current and future years, the directors are required to estimate the proportion of income which relates to the current year.
This is done on a straight line basis, based on the number of working days in the current and future period, with the amount recognised in the current year calculated on a pro-rata basis.
The net amount of income deferred and gross amounts owed to contract customers deferred into a future period is shown within the creditors note in these financial statements.
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Electrical & mechanical services
36,874,162
23,584,568
2024
2023
£
£
Other revenue
Interest income
6,587
2,212
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 23 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
143,562
99,903
(Profit)/loss on disposal of tangible fixed assets
(23,081)
7,303
Amortisation of intangible assets
17,368
17,368
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,750
8,250
Audit of the financial statements of the company's subsidiaries
17,500
13,500
27,250
21,750
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
14
4
4
4
Staff
110
88
68
47
Total
124
92
72
51
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,458,924
3,983,263
4,173,544
2,158,001
Social security costs
780,768
463,684
510,936
233,816
Pension costs
267,387
109,927
162,729
36,250
7,507,079
4,556,874
4,847,209
2,428,067
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
740,459
478,538
Company pension contributions to defined contribution schemes
9,525
7,263
749,984
485,801
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 4 (2023 - 4).
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
283,820
185,299
Company pension contributions to defined contribution schemes
3,150
1,950
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
6,587
2,212
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
11,823
11,340
Other finance costs:
Interest on finance leases and hire purchase contracts
-
38
Other interest
14,485
-
Total finance costs
26,308
11,378
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
880,485
334,072
Adjustments in respect of prior periods
(6,336)
Total current tax
880,485
327,736
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
2024
2023
£
£
(Continued)
- 25 -
Deferred tax
Origination and reversal of timing differences
47,778
42,001
Total tax charge
928,263
369,737
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
3,374,324
1,699,869
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
843,581
348,403
Tax effect of expenses that are not deductible in determining taxable profit
81,286
21,847
Adjustments in respect of prior years
(6,336)
Effect of change in corporation tax rate
(547)
Group relief
(20,166)
Permanent capital allowances in excess of depreciation
(43,835)
(16,012)
Deferred tax movement
47,778
42,001
Taxation charge
928,263
369,737
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Interim paid
325,000
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
173,681
Amortisation and impairment
At 1 July 2023
21,710
Amortisation charged for the year
17,368
At 30 June 2024
39,078
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
12
Intangible fixed assets
(Continued)
- 26 -
Carrying amount
At 30 June 2024
134,603
At 30 June 2023
151,971
The company had no intangible fixed assets at 30 June 2024 or 30 June 2023.
More information on impairment movements in the year is given in note .
13
Tangible fixed assets
Group
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 July 2023
204,161
241,012
76,799
241,477
213,270
976,719
Additions
135,307
314
1,351
199,803
336,775
Disposals
(33,984)
(33,984)
At 30 June 2024
204,161
376,319
77,113
242,828
379,089
1,279,510
Depreciation and impairment
At 1 July 2023
178,966
118,560
69,240
215,550
88,047
670,363
Depreciation charged in the year
8,956
56,700
2,486
11,817
63,603
143,562
Eliminated in respect of disposals
(33,984)
(33,984)
At 30 June 2024
187,922
175,260
71,726
227,367
117,666
779,941
Carrying amount
At 30 June 2024
16,239
201,059
5,387
15,461
261,423
499,569
At 30 June 2023
25,195
122,452
7,559
25,927
125,223
306,356
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
13
Tangible fixed assets
(Continued)
- 27 -
Company
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 July 2023
205,371
125,557
330,928
Additions
132,781
163,499
296,280
At 30 June 2024
338,152
289,056
627,208
Depreciation and impairment
At 1 July 2023
93,230
27,893
121,123
Depreciation charged in the year
53,176
42,731
95,907
At 30 June 2024
146,406
70,624
217,030
Carrying amount
At 30 June 2024
191,746
218,432
410,178
At 30 June 2023
112,141
97,664
209,805
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
517,983
517,983
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
517,983
Carrying amount
At 30 June 2024
517,983
At 30 June 2023
517,983
15
Subsidiaries
Details of the company's subsidiaries at 30 June 2024 are as follows:
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
15
Subsidiaries
(Continued)
- 28 -
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Ventol Building Services Limited
Unit 1 & 2 Landsberg, Lichfield Road Industrial Estate, Tamworth, Staffordshire, United Kingdom, B79
Ordinary share capital
100.00
-
JP New Co Limited
102 Tettenhall Road, Wolverhampton, England, WV6 0BW
Ordinary share capital
70.00
-
R J Stearn Limited
32 Vincent Avenue, Regent Business Park, Crownhill, Milton Keynes, England, MK 0AB
Ordinary share capital
-
70.00
Velway Projects & Maintenance Limited
Unit 11/12 Nostell Business Park, Nostell, Wakefield, England, WF4 1AB
Ordinary share capital
60.00
-
16
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
5,930,888
3,673,737
5,115,115
3,224,048
Equity instruments measured at cost less impairment
-
-
517,983
517,823
Carrying amount of financial liabilities
Measured at amortised cost
2,891,023
2,592,010
1,430,496
1,028,595
Loan commitments measured at cost less impairment
103,086
155,995
4,912
479,676
17
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
2,317,297
1,089,200
1,102,280
421,768
Finished goods and goods for resale
262,598
404,318
135,155
163,627
2,579,895
1,493,518
1,237,435
585,395
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
5,394,209
3,590,242
4,054,387
2,741,691
Corporation tax recoverable
349
Amounts owed by group undertakings
580,000
433,789
Other debtors
985,192
83,495
722,781
48,568
Prepayments and accrued income
88,257
55,251
51,060
36,667
6,467,658
3,729,337
5,408,228
3,260,715
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
18
Debtors
(Continued)
- 29 -
Included within trade debtors or factored debts of £3,003,769 (2023: £2,086,076)
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
21
49,000
49,000
Trade creditors
2,580,210
2,308,228
1,902,082
1,212,641
Gross amounts owed to contract customers
306,747
196,837
Amounts owed to group undertakings
42,505
Corporation tax payable
880,500
334,072
540,014
260,548
Other taxation and social security
862,687
344,334
710,501
262,013
Deferred income
185,923
159,481
Other creditors
311,816
288,694
51,186
180,262
Accruals and deferred income
936,099
584,501
531,587
420,469
6,112,982
4,265,147
3,735,370
2,378,438
Included within other creditors is an invoice discounting arrangement amounting to £1,003 (2023: £4,912). The security given is a fixed and floating charge dated 26 November 2018 upon the parent company's assets.
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
21
53,083
102,083
21
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
102,083
151,083
Payable within one year
49,000
49,000
Payable after one year
53,083
102,083
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
22
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
105,727
57,949
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
100,519
50,296
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
57,949
50,296
Charge to profit or loss
47,778
50,223
Liability at 30 June 2024
105,727
100,519
Of the group deferred tax liability set out above, £43,623 is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
Of the company deferred tax liability set out above, £39,079 is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
267,387
109,927
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
100
100
100
100
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
25
Operating lease commitments
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
397,586
239,222
247,606
172,090
Between two and five years
414,619
186,913
236,408
116,689
812,205
426,135
484,014
288,779
26
Related party transactions
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Other related parties
543,483
289,418
1,150,569
619,576
Company
Entities over which the company has control, joint control or significant influence
598,517
920,785
2,539,071
3,761,235
Other related parties
150,466
286,186
723,043
322,705
Interest receivable
2024
2023
£
£
Group
Other related parties
4,067
-
Company
Other related parties
4,067
-
The following amounts were outstanding at the reporting end date:
Amounts due to related parties
2024
2023
£
£
Group
Other related parties
182,380
76,966
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
26
Related party transactions
(Continued)
- 32 -
Company
Entities over which the company has control, joint control or significant influence
224,832
128,495
Other related parties
85,279
30,033
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£
£
Group
Other related parties
484,265
110,921
Company
Entities with control, joint control or significant influence over the company
350,000
Other related parties
455,347
110,921
Other information
The company has taken advantage of the exemption under paragraph 33.1A of FRS102 relating to subsidiaries where 100% of the voting rights are controlled within the group not to disclose transactions and balances between the company and fellow group undertakings.
The company has an omnibus guarantee and set off agreements dated 5 June 2024 in favour of this group's banking arrangements, along with its fellow group companies Ventol Limited, Ventol Building Services Limited, Velway Prjojects & Maintenance Limited and JP New Co Limited, and also along with various other related companies not part of the group.
27
Directors' transactions
Dividends totalling £0 (2023 - £159,250) were paid in the year in respect of shares held by the company's directors.
28
Controlling party
The ultimate controlling party is Gary Mordue, who owns the majority of the issued share capital.
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 33 -
29
Cash generated from group operations
2024
2023
£
£
Profit after taxation
2,446,061
1,330,132
Adjustments for:
Taxation charged
928,263
369,737
Finance costs
26,308
11,378
Investment income
(6,587)
(2,212)
(Gain)/loss on disposal of tangible fixed assets
(23,081)
7,303
Amortisation and impairment of intangible assets
17,368
17,368
Depreciation and impairment of tangible fixed assets
143,562
99,903
Movements in working capital:
Increase in stocks
(1,086,377)
(800,651)
Increase in debtors
(2,687,174)
(806,653)
Increase in creditors
1,274,964
580,304
Increase in deferred income
26,442
98,094
Cash generated from operations
1,059,749
904,703
30
Cash generated from operations - company
2024
2023
£
£
Profit after taxation
1,790,437
1,501,069
Adjustments for:
Taxation charged
590,237
304,508
Finance costs
14,485
Investment income
(284,098)
(210,000)
(Gain)/loss on disposal of tangible fixed assets
-
7,303
Depreciation and impairment of tangible fixed assets
95,907
55,103
Movements in working capital:
Increase in stocks
(652,040)
(236,260)
Increase in debtors
(2,147,512)
(1,010,096)
Increase/(decrease) in creditors
1,077,465
(15,852)
Cash generated from operations
484,881
395,775
VENTOL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 34 -
31
Analysis of changes in net funds - group
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
1,383,318
175,131
1,558,449
Borrowings excluding overdrafts
(151,083)
49,000
(102,083)
1,232,235
224,131
1,456,366
32
Analysis of changes in net funds - company
1 July 2023
Cash flows
30 June 2024
£
£
£
Cash at bank and in hand
150,326
197,666
347,992
2024-06-302023-07-01falsefalseCCH SoftwareCCH Accounts Production 2024.310Mr L CorbettMr D M KennaMr L FranksMr E C MordueMr A Powellfalse10668769bus:Consolidated2023-07-012024-06-30106687692023-07-012024-06-3010668769bus:Director12023-07-012024-06-3010668769bus:Director22023-07-012024-06-3010668769bus:Director32023-07-012024-06-3010668769bus:Director42023-07-012024-06-3010668769bus:Director52023-07-012024-06-3010668769bus:RegisteredOffice2023-07-012024-06-30106687692024-06-3010668769bus:Consolidated2024-06-3010668769bus:Consolidated2022-07-012023-06-3010668769dpl:Item1bus:Consolidated2023-07-012024-06-3010668769dpl:Item1bus:Consolidated2022-07-012023-06-30106687692022-07-012023-06-3010668769core:Goodwillbus:Consolidated2024-06-3010668769core:Goodwillbus:Consolidated2023-06-3010668769bus:Consolidated2023-06-30106687692023-06-3010668769core:LeaseholdImprovementsbus:Consolidated2024-06-3010668769core:PlantMachinerybus:Consolidated2024-06-3010668769core:FurnitureFittingsbus:Consolidated2024-06-3010668769core:ComputerEquipmentbus:Consolidated2024-06-3010668769core:MotorVehiclesbus:Consolidated2024-06-3010668769core:LeaseholdImprovementsbus:Consolidated2023-06-3010668769core:PlantMachinerybus:Consolidated2023-06-3010668769core:FurnitureFittingsbus:Consolidated2023-06-3010668769core:ComputerEquipmentbus:Consolidated2023-06-3010668769core:MotorVehiclesbus:Consolidated2023-06-3010668769core:PlantMachinery2024-06-3010668769core:MotorVehicles2024-06-3010668769core:PlantMachinery2023-06-3010668769core:MotorVehicles2023-06-30106687692023-06-3010668769bus:Consolidated2023-06-3010668769core:CurrentFinancialInstrumentsbus:Consolidated2024-06-3010668769core:CurrentFinancialInstrumentsbus:Consolidated2023-06-3010668769core:Non-currentFinancialInstrumentsbus:Consolidated2024-06-3010668769core:Non-currentFinancialInstrumentsbus:Consolidated2023-06-3010668769core:CurrentFinancialInstruments2024-06-3010668769core:CurrentFinancialInstruments2023-06-3010668769core:ShareCapitalbus:Consolidated2024-06-3010668769core:ShareCapitalbus:Consolidated2023-06-3010668769core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-06-3010668769core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-06-3010668769core:Non-controllingInterestsbus:Consolidated2024-06-3010668769core:Non-controllingInterestsbus:Consolidated2023-06-3010668769core:ShareCapital2024-06-3010668769core:ShareCapital2023-06-3010668769core:RetainedEarningsAccumulatedLosses2024-06-3010668769core:RetainedEarningsAccumulatedLosses2023-06-3010668769core:ShareCapitalbus:Consolidated2022-06-3010668769core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-06-3010668769core:Non-controllingInterests2022-06-3010668769bus:Consolidated2022-06-3010668769core:ShareCapital2022-06-3010668769core:RetainedEarningsAccumulatedLosses2022-06-30106687692022-06-3010668769core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-07-012023-06-3010668769core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-07-012024-06-3010668769core:Non-controllingInterestsbus:Consolidated2022-07-012023-06-3010668769core:Goodwill2023-07-012024-06-3010668769core:LeaseholdImprovements2023-07-012024-06-3010668769core:PlantMachinery2023-07-012024-06-3010668769core:FurnitureFittings2023-07-012024-06-3010668769core:ComputerEquipment2023-07-012024-06-3010668769core:MotorVehicles2023-07-012024-06-3010668769dpl:Item12023-07-012024-06-3010668769dpl:Item12022-07-012023-06-3010668769core:UKTaxbus:Consolidated2023-07-012024-06-3010668769core:UKTaxbus:Consolidated2022-07-012023-06-3010668769bus:Consolidated12023-07-012024-06-3010668769bus:Consolidated12022-07-012023-06-3010668769bus:Consolidated22023-07-012024-06-301066876932023-07-012024-06-3010668769core:Goodwillbus:Consolidated2023-06-3010668769core:Goodwillbus:Consolidated2023-07-012024-06-3010668769core:LeaseholdImprovementsbus:Consolidated2023-06-3010668769core:PlantMachinerybus:Consolidated2023-06-3010668769core:FurnitureFittingsbus:Consolidated2023-06-3010668769core:ComputerEquipmentbus:Consolidated2023-06-3010668769core:MotorVehiclesbus:Consolidated2023-06-3010668769core:PlantMachinery2023-06-3010668769core:MotorVehicles2023-06-3010668769core:LeaseholdImprovementsbus:Consolidated2023-07-012024-06-3010668769core:PlantMachinerybus:Consolidated2023-07-012024-06-3010668769core:FurnitureFittingsbus:Consolidated2023-07-012024-06-3010668769core:ComputerEquipmentbus:Consolidated2023-07-012024-06-3010668769core:MotorVehiclesbus:Consolidated2023-07-012024-06-3010668769core:Subsidiary12023-07-012024-06-3010668769core:Subsidiary22023-07-012024-06-3010668769core:Subsidiary32023-07-012024-06-3010668769core:Subsidiary42023-07-012024-06-3010668769core:Subsidiary112023-07-012024-06-3010668769core:Subsidiary212023-07-012024-06-3010668769core:Subsidiary312023-07-012024-06-3010668769core:Subsidiary412023-07-012024-06-3010668769dpl:Item12024-06-3010668769core:WithinOneYearbus:Consolidated2024-06-3010668769core:WithinOneYearbus:Consolidated2023-06-3010668769core:CurrentFinancialInstrumentscore:WithinOneYear2024-06-3010668769core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-3010668769core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-06-3010668769core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-06-3010668769core:Non-currentFinancialInstrumentscore:AfterOneYear2024-06-3010668769core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-3010668769core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-06-3010668769core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-06-3010668769core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated12024-06-3010668769core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated12023-06-3010668769core:CurrentFinancialInstrumentscore:WithinOneYear22024-06-3010668769core:CurrentFinancialInstrumentscore:WithinOneYear22023-06-3010668769core:Non-currentFinancialInstruments2024-06-3010668769core:Non-currentFinancialInstruments2023-06-3010668769core:OtherRelatedPartiesbus:Consolidated2023-07-012024-06-3010668769core:OtherRelatedPartiesbus:Consolidated2022-07-012023-06-3010668769core:AllSubsidiaries2023-07-012024-06-3010668769core:AllSubsidiaries2022-07-012023-06-3010668769core:OtherRelatedParties2023-07-012024-06-3010668769core:OtherRelatedParties2022-07-012023-06-3010668769core:OtherRelatedPartiesbus:Consolidated2024-06-3010668769core:OtherRelatedPartiesbus:Consolidated2023-06-3010668769core:AllSubsidiaries2024-06-3010668769core:AllSubsidiaries2023-06-3010668769core:OtherRelatedParties2024-06-3010668769core:OtherRelatedParties2023-06-3010668769bus:PrivateLimitedCompanyLtd2023-07-012024-06-3010668769bus:FRS1022023-07-012024-06-3010668769bus:Audited2023-07-012024-06-3010668769bus:ConsolidatedGroupCompanyAccounts2023-07-012024-06-3010668769bus:FullAccounts2023-07-012024-06-30xbrli:purexbrli:sharesiso4217:GBP