Company registration number 01980263 (England and Wales)
SKERRITT ELECTRICAL LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
SKERRITT ELECTRICAL LTD
COMPANY INFORMATION
Directors
Mr S A Hall
Mr M J Boere
(Appointed 12 July 2024)
Mr J-M Bianchi
(Appointed 12 July 2024)
Mr H T Simpson
(Appointed 12 July 2024)
Company number
01980263
Registered office
1087 Kingsbury Road
Castle Vale
Birmingham
B35 6AJ
Auditor
Edwards
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
SKERRITT ELECTRICAL LTD
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 21
SKERRITT ELECTRICAL LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -

The directors present the strategic report for the year ended 31 October 2024.

Review of the business

The company reports a 6% decrease in turnover while maintaining profitability at 2023 levels. The company has made a satisfactory profit and the directors therefore believe the company's position at the year end to be satisfactory.

Principal risks and uncertainties

The directors have assessed the main risk facing the company continues to be competitive pressure on price and margins. The directors remain committed to mitigating this risk and developing the business further by consistently delivering the very highest standards and best possible service to its customers.

Key performance indicators

Key performance indicators are used to measure and evaluate company performance against targets and monitor various activities throughout the group. The main key performance indicators employed in the group are:

 

 

The board monitor these monthly against budgets.

On behalf of the board

Mr S A Hall
Director
4 March 2025
SKERRITT ELECTRICAL LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -

The directors present their annual report and financial statements for the year ended 31 October 2024.

Principal activities
The principal activity of the company continued to be that of electrical contractors.
Results and dividends

The results for the year are set out on page 8.

Ordinary dividends were paid amounting to £256,650. 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 S J Hulse
(Resigned 12 July 2024)
Mr S A Hall
Mr M J Atkins
(Appointed 9 January 2024 and resigned 12 July 2024)
Mrs J K Alders
(Appointed 9 January 2024 and resigned 12 July 2024)
Mrs S P Gaunt
(Deceased 9 January 2024)
Mr M J Boere
(Appointed 12 July 2024)
Mr J-M Bianchi
(Appointed 12 July 2024)
Mr H T Simpson
(Appointed 12 July 2024)
Financial instruments

The company makes use of financial instruments principally through its operational bank accounts but does not consider there is any exposure to foreign exchange risk as there is no export trading.

Research and development

Research and development activities are undertaken with the prospect of gaining new technical knowledge and understanding, and are expected to continue at a similar level in the year ended 31 October 2024.

Auditor

In accordance with the company's articles, a resolution proposing that Edwards be reappointed as auditor of the company will be put at a General Meeting.

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 company’s auditor 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 company’s auditor is aware of that information.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

SKERRITT ELECTRICAL LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
On behalf of the board
Mr S A Hall
Director
4 March 2025
SKERRITT ELECTRICAL LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 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 company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

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.

SKERRITT ELECTRICAL LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKERRITT ELECTRICAL LTD
- 5 -
Opinion

We have audited the financial statements of Skerritt Electrical Ltd (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information 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:

SKERRITT ELECTRICAL LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKERRITT ELECTRICAL LTD (CONTINUED)
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We obtained an understanding of the legal and regulatory frameworks within which the Company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, taxation legislation, Health & Safety compliance, ISO regulatory compliance and off-payroll working regulations.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be in the following areas: the override of controls by management, revenue journals, inappropriate treatment of non-routine transactions and areas of estimation uncertainty specifically relating to long term contract accounting. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, review and discussion of non-routine transactions, sample testing on the posting of journals and review of accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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.

SKERRITT ELECTRICAL LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SKERRITT ELECTRICAL LTD (CONTINUED)
- 7 -

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Robert Kempson ACA (Senior Statutory Auditor)
For and on behalf of Edwards, Statutory Auditor
Chartered Accountants
34 High Street
Aldridge
Walsall
West Midlands
WS9 8LZ
4 March 2025
SKERRITT ELECTRICAL LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
23,656,065
25,161,710
Cost of sales
(19,334,283)
(20,820,033)
Gross profit
4,321,782
4,341,677
Distribution costs
(361,833)
(412,654)
Administrative expenses
(2,268,105)
(2,243,212)
Operating profit
5
1,691,844
1,685,811
Interest receivable and similar income
8
1,683
292
Profit before taxation
1,693,527
1,686,103
Tax on profit
9
(441,403)
(389,523)
Profit for the financial year
1,252,124
1,296,580

The statement of comprehensive income has been prepared on the basis that all operations are continuing operations.

SKERRITT ELECTRICAL LTD
BALANCE SHEET
AS AT
31 OCTOBER 2024
31 October 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
23,170
33,473
Current assets
Stocks
12
725,177
3,757,859
Debtors
13
2,278,918
1,660,406
Cash at bank and in hand
4,186,506
3,240,459
7,190,601
8,658,724
Creditors: amounts falling due within one year
14
(4,239,828)
(6,420,199)
Net current assets
2,950,773
2,238,525
Total assets less current liabilities
2,973,943
2,271,998
Provisions for liabilities
Deferred tax liability
15
5,400
7,800
(5,400)
(7,800)
Net assets
2,968,543
2,264,198
Capital and reserves
Called up share capital
17
95
108
Capital redemption reserve
13
-
0
Profit and loss reserves
2,968,435
2,264,090
Total equity
2,968,543
2,264,198

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 4 March 2025 and are signed on its behalf by:
Mr S A Hall
Director
Company registration number 01980263 (England and Wales)
SKERRITT ELECTRICAL LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 10 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 November 2022
108
-
0
1,564,461
1,564,569
Year ended 31 October 2023:
Profit and total comprehensive income
-
-
1,296,580
1,296,580
Dividends
10
-
-
(596,951)
(596,951)
Balance at 31 October 2023
108
-
0
2,264,090
2,264,198
Year ended 31 October 2024:
Profit and total comprehensive income
-
-
1,252,124
1,252,124
Dividends
10
-
-
(256,650)
(256,650)
Own shares acquired
17
(13)
13
(291,129)
(291,129)
Balance at 31 October 2024
95
13
2,968,435
2,968,543
SKERRITT ELECTRICAL LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
2,092,640
1,776,546
Income taxes paid
(596,877)
(180,049)
Net cash inflow from operating activities
1,495,763
1,596,497
Investing activities
Purchase of tangible fixed assets
(3,620)
(32,946)
Interest received
1,683
292
Net cash used in investing activities
(1,937)
(32,654)
Financing activities
Purchase of own shares
(291,129)
-
0
Dividends paid
(256,650)
(596,951)
Net cash used in financing activities
(547,779)
(596,951)
Net increase in cash and cash equivalents
946,047
966,892
Cash and cash equivalents at beginning of year
3,240,459
2,273,567
Cash and cash equivalents at end of year
4,186,506
3,240,459
SKERRITT ELECTRICAL LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 12 -
1
Accounting policies
Company information

Skerritt Electrical Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 1087 Kingsbury Road, Castle Vale, Birmingham, B35 6AJ.

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
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.

1.3
Turnover

The turnover shown in the profit and loss account represents amounts due on contracts completed during the year adjusted for turnover attributable to long term work in progress, exclusive of value added tax.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings leasehold
straight line over the life of the lease
Plant and machinery
20% straight line
Fixtures, fittings & equipment
20% straight line
Computer equipment
33.33% 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 credited or charged to profit or loss.

1.5
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.

SKERRITT ELECTRICAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -

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. Costs are presented as stocks provided it is probable they will be recovered.

1.6
Cash at bank and in hand

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.

1.7
Financial instruments

The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with 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.

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.

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 company 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.

SKERRITT ELECTRICAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities

Basic financial liabilities, being creditors, 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.

 

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

 

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.

1.10
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

SKERRITT ELECTRICAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit and 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 lease asset are consumed.

2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

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.

Long-term contracts

The amount of profit attributable to the stage of completion of a long term contract is recognised when the outcome of the contract can be foreseen with reasonable certainty. Turnover for such contracts is stated at the cost appropriate to their stage of completion plus attributable profits, less amounts recognised in previous years. Provision is made for any losses as soon as they are foreseen.

 

Contract work in progress is stated at cost incurred, less those transferred to the profit and loss account, after deducting foreseeable losses and payments on account not matched with turnover.

3
Turnover

Turnover represents UK sales from the company's core business of electrical contracting.

4
Exceptional costs included in administrative expenses
2024
2023
£
£
Expenditure
Exceptional costs related to the sale of business
49,925
-
5
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
15,950
14,000
Depreciation of tangible fixed assets
13,923
10,658
Operating lease charges
261,861
238,290
SKERRITT ELECTRICAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 16 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Administration
6
6
Contracts
4
5
Directors
5
3
Estimators
2
2
Operatives
20
19
Technical
4
3
Total
41
38

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,305,327
2,299,490
Social security costs
256,605
264,708
Pension costs
200,232
145,908
2,762,164
2,710,106
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
335,294
367,624
Company pension contributions to defined contribution schemes
69,740
26,069
405,034
393,693

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2023 - 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
137,320
163,299
Company pension contributions to defined contribution schemes
42,814
11,577
SKERRITT ELECTRICAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 17 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Other interest income
1,683
292
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
308,838
384,323
Group tax relief
134,965
-
0
Total current tax
443,803
384,323
Deferred tax
Origination and reversal of timing differences
(2,400)
5,200
Total tax charge
441,403
389,523

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
1,693,527
1,686,103
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
423,382
421,526
Tax effect of expenses that are not deductible in determining taxable profit
17,517
9,871
Other non-reversing timing differences
316
(41,837)
Other permanent differences
188
188
Enhanced capital allowances
-
0
(225)
Taxation charge for the year
441,403
389,523
10
Dividends
2024
2023
£
£
Final paid
256,650
596,951
SKERRITT ELECTRICAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
11
Tangible fixed assets
Land and buildings leasehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 November 2023
141,643
11,656
58,837
92,022
304,158
Additions
-
0
-
0
208
3,412
3,620
At 31 October 2024
141,643
11,656
59,045
95,434
307,778
Depreciation and impairment
At 1 November 2023
141,643
11,255
46,853
70,934
270,685
Depreciation charged in the year
-
0
97
3,434
10,392
13,923
At 31 October 2024
141,643
11,352
50,287
81,326
284,608
Carrying amount
At 31 October 2024
-
0
304
8,758
14,108
23,170
At 31 October 2023
-
0
401
11,984
21,088
33,473
12
Stocks
2024
2023
£
£
Work in progress
725,177
3,757,859
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
1,840,949
1,210,066
Other debtors
402,465
398,736
Prepayments and accrued income
35,504
51,604
2,278,918
1,660,406
SKERRITT ELECTRICAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 19 -
14
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
3,652,374
4,975,385
Amounts owed to group undertakings
134,965
-
0
Corporation tax
96,262
384,301
Other taxation and social security
83,285
90,788
Other creditors
36,227
435,157
Accruals and deferred income
236,715
534,568
4,239,828
6,420,199
15
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
5,400
7,800
2024
Movements in the year:
£
Liability at 1 November 2023
7,800
Credit to profit or loss
(2,400)
Liability at 31 October 2024
5,400
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
200,232
145,908

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

 

There were outstanding contributions of £12,305 (2023: £10,991) payable to the fund at the year end.

SKERRITT ELECTRICAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
81
81
81
81
Ordinary B shares of £1 each
14
27
14
27
95
108
95
108

The rights attached to each category of share can be found in the company's Articles of Association.

 

On 28 February 2024, the company re-purchased 13 Ordinary B shares for a total consideration of £291,129. These shares were subsequently cancelled.

18
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2024
2023
£
£
Within one year
188,538
162,682
Between two and five years
206,464
183,935
395,002
346,617
19
Related party transactions

Any directors or senior employees who have authority and responsibility for controlling the activities of the company are considered to be key management personnel. Total remuneration in respect of these individuals is £405,034 (2023: £393,693).

 

At the year end, loan accounts due to the directors amounted to £Nil (2023: £413,678). These loans were unsecured, interest free and repayable on demand.

20
Ultimate controlling party

From 12 July 2024, the company's immediate parent undertaking is TSG Solutions Holding SAS, a company incorporated in France. The ultimate parent undertaking and controlling party is TSG Solutions Group SAS.

SKERRITT ELECTRICAL LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
21
Cash generated from operations
2024
2023
£
£
Profit after taxation
1,252,124
1,296,580
Adjustments for:
Taxation charged
441,403
389,523
Investment income
(1,683)
(292)
Depreciation and impairment of tangible fixed assets
13,923
10,658
Movements in working capital:
Decrease/(increase) in stocks
3,032,682
(2,428,072)
(Increase)/decrease in debtors
(618,512)
366,221
(Decrease)/increase in creditors
(2,027,297)
2,141,928
Cash generated from operations
2,092,640
1,776,546
22
Analysis of changes in net funds
1 November 2023
Cash flows
31 October 2024
£
£
£
Cash at bank and in hand
3,240,459
946,047
4,186,506
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