Company registration number 00255476 (England and Wales)
PHOENIX ME LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
PHOENIX ME LIMITED
COMPANY INFORMATION
Directors
Mr Lee Compton
Mr Stewart Crane
Mr Duncan McArthur
Mr Terence Hussey
Mr Dean Marler
Mr S A M O'Connor
(Appointed 31 January 2024)
Mr T P Perkins
(Appointed 31 January 2024)
Secretary
Mr Duncan McArthur
Company number
00255476
Registered office
1st Floor
25 Camperdown Street
London
England
E1 8DZ
Auditor
HJS Accountants Limited
Tagus House
9 Ocean Way
Southampton
Hampshire
United Kingdom
SO14 3TJ
PHOENIX ME LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Profit and loss account
11
Statement of comprehensive income
12
Balance sheet
13
Statement of changes in equity
14
Notes to the financial statements
15 - 27
PHOENIX ME LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The Directors present the strategic report for the year ended 30 September 2024.

Review of the business

 

Phoenix ME Limited operates in the competitive construction industry, providing high-quality Mechanical and Electrical solutions across various market sectors. In 2024, the company demonstrated positive financial performance, marked by significant revenue growth, which reflects strong market demand and effective business operations.

The company has been active in sectors including Data Centres, Life Sciences, Commercial Offices, Hotels and Leisure, and Rail. Turnover has increased to £295 million, with a gross margin of over 10%. We maintain strong relationships with our existing clients, comprising main contractors and end-users in London, as well as from our regional office in Cambridge, established in 2023. This investment in the regional office has allowed us to diversify into a new market, delivering the same high-quality engineering solutions in and around Cambridge that we have provided in London for the past 94 years.

Throughout the 2024 financial year, the business and the industry faced challenges due to the administration of several companies, notably the high-profile downfall of ISG, a significant client at the time. However, the courage and togetherness that define our core values facilitated early re-engagement with end clients on active projects. As a result, the impact of ISG's administration was minimised. All live projects during administration have since been re-engaged under new contracts with either end users or alternative main contractors. The financial implications have been fully accounted for in the financial statements for the year ending September 30, 2024.

The reduction in gross margin on the previous year's financial statements is primarily due to irrecoverable debts from the ISG administration, specifically old retentions and defect liability period debts from recently completed projects. However, this has only affected the net profit margin, which has reduced by 0.5% to 3.8%.

The business is entering the new year with its largest secured order book, totalling £520 million. This substantial order book is expected to drive revenue towards an impressive over £350 million turnover for 2025. Demand in the targeted market sectors remains steady, contributing to continued growth and profitability for the business in the coming financial years.

Market diversification, efficient cost control, effective pricing strategies, and a commitment to innovation provide stability within the forward order book margins. This indicates a positive forecast for the year ending September 2025.

The UK business continues to provide key personnel to the European Division, which is reflected in Phoenix ME (Europe) Limited's prosperous year. This success is also evident in the Group's Consolidated Financial Statements.

PHOENIX ME LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -

Business KPIs and Financial Performance

 

 

 

Principal risks and uncertainties

We remain selective in choosing our customers and uphold our policy to self-insure against insolvency through rigorous quality assurance processes. These processes are applied to all companies that Phoenix ME engages with, ensuring we minimise risk and uncertainty.

We regularly monitor the business's cash flow and liquidity at both the project and company levels, promptly addressing any identified risks or uncertainties, which further supports our liquidity strength.

Financial risk management objectives and policies

The group's strict policy is to closely monitor each project's performance, allowing us to identify any emerging risks early on. The directors review each project in detail on a monthly basis to ensure that we mitigate any unexpected risks as they arise.

PHOENIX ME LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Section 172 Statement

Section 172 of the Companies Act 2006 requires that the Directors act in a way that they consider to be in good faith, would be most likely to promote the success of the Company for the for the benefit of its shareholders and in doing so, have regard to:

 

The Directors have complied with these requirements. A regular strategic board meeting is held with all key decisions taken with a view to the long term health of the Company. Phoenix ME regards the satisfaction and retention of staff, clients and suppliers as a key factor in the continued success of the Company, with decisions being taken that consider the views of all of these stakeholders.

On behalf of the board

Mr Duncan McArthur
Director
4 April 2025
PHOENIX ME LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

The directors present their annual report and financial statements for the year ended 30 September 2024.

Principal activities

The principle activity of the company is Mechanical and Electrical Engineering and Construction Services. Our main work sectors are Commercial, Data Centres, Education, Public sector and some Residential schemes.

Results and dividends

The results for the year are set out on Page 12.

No ordinary dividends were paid. The directors do not recommend payment of a final 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 Lee Compton
Mr Stewart Crane
Mr Alan Tarrant
(Resigned 1 October 2023)
Mr Duncan McArthur
Mr Terence Hussey
Mr Dean Marler
Mr S A M O'Connor
(Appointed 31 January 2024)
Mr T P Perkins
(Appointed 31 January 2024)
Research and development

The company has carried out innovative energy and cost saving engineering for mechanical and electrical design which has resulted in R&D tax credits.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Future developments

The company will continue to invest in growing sales through its existing customer base and exploring new customers.

PHOENIX ME LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
Auditor

The auditors, HJS Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

 

 

Energy and carbon report
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
235,912
220,793
- Electricity purchased
202,637
187,386
- Fuel consumed for transport
59,416
651,029
497,965
1,059,208
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
43.15
40.39
- Fuel consumed for owned transport
9.53
23.58
52.68
63.97
Scope 2 - indirect emissions
- Electricity purchased
43.10
41.27
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the company
7.05
132.24
Total gross emissions
102.83
237.48
Intensity ratio
CO2e per £m turnover
0.35
1.42
Quantification and reporting methodology

Our report includes scope 1 and scope 2 measures for our head office, Cambridge office and our warehouse.

 

For this year’s SECR report Phoenix ME have employed an external consultant to help aid the calculation of carbon emissions. The company has also accounted this year for the renewable energy that is procured for the London office, the carbon emissions are therefore reported for both location-based and market-based.

Intensity measurement

The financial year turnover was £295m giving relative emissions of 0.35tCO2e/​£m turnover.

Measures taken to improve energy efficiency

The following actions have been taken in order to improve energy and carbon savings

PHOENIX ME LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company'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 risks.

Statement of disclosure to auditor

Each of the directors in office at the date of approval of this annual report confirms that:

 

Other Risks

Price

This year prices have eased a little and we have been securing work at slightly better margins although there are still signs that some competitors are being aggressive with their pricing. With a strong order book we are able to decline any business that is too competitive.

 

In order to maintain the balance of winning work at reasonable margins we have to manage our relationships better than ever and ensure that we maintain an excellent performance throughout the life of the contract and during the tender process. We have commenced a process of customer feedback on every project at various stages to enable us to focus on improving our service level. Ensuring we have the right supply chain and constantly monitoring operational and overhead costs enables us to work effectively in the market.

 

Credit

The company is exposed to credit risk on its trade and other receivables due to the credit terms offered to its customers, this risk is managed as set out in the accounting policy notes (Note 1). In the opinion of the directors there is no particular credit risk in any one customer. It is confirmed that the fair value of trade receivables is not materially different from the carrying value. Trade receivables are not interest bearing.

 

Liquidity

The company has policies that require appropriate credit checks on potential customers before sales are made.

 

Cash Flow

Financial management of our projects is critical to improving our cash flow so careful review of both upstream and downstream accounts is essential ensuring that our accounts are paid in line with terms. Our board spends a great deal of their time managing this well. The company is exposed to exchange rate risk due to their work overseas. To reduce this risk the company forward buys foreign exchange contracts to offset the income being received and reduce the impact of adverse exchange rate movements.

 

Financial risk management objectives and policies

Risks are a constant agenda item and are formally and regularly reviewed by the Board with appropriate processes in place to monitor and mitigate them.

On behalf of the board
Mr Duncan McArthur
Director
4 April 2025
PHOENIX ME LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -

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.

PHOENIX ME LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PHOENIX ME LIMITED
- 8 -
Opinion

We have audited the financial statements of Phoenix ME Limited (the 'company') for the year ended 30 September 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:

PHOENIX ME LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PHOENIX ME LIMITED (CONTINUED)
- 9 -
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.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulatory principles, such as Employment Law and Health & Safety regulations. We also considered the laws and regulations which have a direct impact on the financial statements such as the Companies Act 2006.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and judgmental areas of the financial statements.

Audit procedures performed by the audit engagement team included:

 

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or though collusion.

PHOENIX ME LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PHOENIX ME LIMITED (CONTINUED)
- 10 -

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.

Angela Trainor
Senior Statutory Auditor
For and on behalf of HJS Accountants Limited
4 April 2025
Chartered Accountants and Statutory Auditor
Tagus House
9 Ocean Way
Southampton
Hampshire
United Kingdom
SO14 3TJ
PHOENIX ME LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£'000
£'000
Turnover
3
295,275
170,175
Cost of sales
(264,522)
(144,413)
Gross profit
30,753
25,762
Administrative expenses
(21,715)
(18,582)
Other operating income
1,250
-
0
Operating profit
4
10,288
7,180
Interest receivable and similar income
8
383
222
Profit before taxation
10,671
7,402
Tax on profit
9
(2,881)
(1,043)
Profit for the financial year
7,790
6,359

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PHOENIX ME LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
2024
2023
£'000
£'000
Profit for the year
7,790
6,359
Other comprehensive income
-
-
Total comprehensive income for the year
7,790
6,359
PHOENIX ME LIMITED
BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 13 -
2024
2023
Notes
£'000
£'000
£'000
£'000
Fixed assets
Tangible assets
10
59
160
Investments
11
252
252
311
412
Current assets
Stocks
13
91
91
Debtors falling due after more than one year
14
1,098
3,256
Debtors falling due within one year
14
89,920
69,698
Cash at bank and in hand
22,368
12,990
113,477
86,035
Creditors: amounts falling due within one year
15
(67,894)
(48,052)
Net current assets
45,583
37,983
Total assets less current liabilities
45,894
38,395
Creditors: amounts falling due after more than one year
16
(1,005)
(1,296)
Provisions for liabilities
(21)
(21)
Net assets
44,868
37,078
Capital and reserves
Called up share capital
19
5,022
5,022
Profit and loss reserves
39,846
32,056
Total equity
44,868
37,078
The financial statements were approved by the board of directors and authorised for issue on 4 April 2025 and are signed on its behalf by:
Mr Duncan McArthur
Director
Company Registration No. 00255476
PHOENIX ME LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
Share capital
Profit and loss reserves
Total
£'000
£'000
£'000
Balance at 1 October 2022
5,022
25,697
30,719
Year ended 30 September 2023:
Profit and total comprehensive income
-
6,359
6,359
Balance at 30 September 2023
5,022
32,056
37,078
Year ended 30 September 2024:
Profit and total comprehensive income
-
7,790
7,790
Balance at 30 September 2024
5,022
39,846
44,868
PHOENIX ME LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
1
Accounting policies
Company information

Phoenix ME Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1st Floor, 25 Camperdown Street, London, England, E1 8DZ.

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 £'000.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

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.

PHOENIX ME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Turnover

Construction contracts

All revenue is derived from construction contracts.

 

Contract revenue is measured at the fair value of the consideration received or receivable and includes the initial amount of revenue agreed in the contract, plus variations, claims and incentive payments to the extent that it is probable that they will result in revenue and they are capable of being measured reliably. Revenue is stated net of discounts, VAT and other sales related taxes.

 

Interest income

Interest income is accrued on a time basis in accordance with the effective interest rate method.

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:

Fixtures, fittings & equipment
25% Straight line
Computer equipment
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 credited or charged to profit or loss.

1.5
Fixed asset investments

Investment in subsidiaries is held at cost less any provision for impairment.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

Tangible fixed assets are reviewed annually by the directors for impairment. Any impairment is taken to the profit and loss account.

1.7
Stocks

Stocks are stated at the lower of cost and net realisable value. Cost is on the FIFO basis. Net realisable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution.

 

The provision for obsolete and slow moving stock is determined by reviews of stock, its ageing and rate of sale. Provisions are made which enable such obsolete stock and slow moving stock to be sold at no loss.

PHOENIX ME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 17 -
1.8
Construction contracts

When the outcome of a construction contract can be estimated reliably, contract revenue and costs are recognised by reference to the degree of completion of each contract, as measured by quantity surveyors.

 

Incentive payments and variations arising from construction contracts are included where they have been agreed with the client.

 

When 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 these costs will be recoverable.

The principal estimation technique used by the company in attributing profit on contracts to a particular period is the preparation of forecasts on a contract by contract basis. These focus on revenues and costs to complete and enable an assessment to be made of the final out turn of each contract. Consistent contract review procedures are in place in respect of contract forecasting.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised immediately. Contract costs are recognised as expenses in the period within which they have incurred.

Where costs incurred plus recognised profits less recognised losses exceed progress billings, the balance is shown as due from customers on construction contracts within trade and other receivables. Where progress billings exceed costs incurred plus recognised profits less recognised losses, the balance is shown as due to customers on construction contracts within trade and other payables.

1.9
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.

1.10
Financial instruments

The company only enters into Basic financial instrument transactions.

 

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.

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.

PHOENIX ME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 18 -

Trade receivables are amounts due from customers for services performed in the ordinary course of business. If collection is expected in one year or less (or in the normal operating cycle of the business if longer), they are classified as current assets. If not, they are presented as non-current assets.

 

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision for 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. The impairment loss 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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

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.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Derecognition of financial liabilities

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

PHOENIX ME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.11
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.12
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.13
Taxation

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

Current tax

The current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period.

Deferred tax

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit, and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally recognised for all taxable temporary differences and deferred tax assets are recognised to the extent that it is probable that taxable profits will be available against which deductible temporary differences can be utilised. Such assets and liabilities are not recognised if the temporary differences arise from initial recognition of goodwill or from the initial recognition (other than in a business combination) 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 balance sheet 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 which the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, 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 balances have not been discounted.

1.14
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.

1.15
Retirement benefits

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

PHOENIX ME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
1.16
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.17
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

1.18

Research and development

Research expenditure is written off to the statement of financial position in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.

1.19

Capital Management

The group manages its equity as capital. Equity comprises the items detailed within the principal accounting policy for equity and financial details can be found in the balance sheet. The group adheres to the capital maintenance requirements set out in the Companies Act.

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.

 

Construction contracts

The main area of estimation uncertainty are the construction contracts. Firstly profit is only recognised when the outcome of the project can be reliably estimated. There is uncertainty here that the outcome is incorrectly considered to be profitable.

 

Secondly when the project outcome can be reliably estimated the stage of completion is based on the billing to date and costs are recognised in order to include profit at the forecast overall margin on the job. There is some uncertainty over estimating future costs and any additional work or extras which may occur.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2024
2023
£'000
£'000
Turnover analysed by class of business
Construction contracts
295,275
170,175
PHOENIX ME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
3
Turnover and other revenue
(Continued)
- 21 -
2024
2023
£'000
£'000
Turnover analysed by geographical market
United Kingdom
295,275
170,175
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£'000
£'000
Exchange losses/(gains)
8
(2)
Depreciation of owned tangible fixed assets
101
158
Operating lease charges
866
1,260
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£'000
£'000
For audit services
Audit of the financial statements of the company
36
34
6
Employees

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

2024
2023
Number
Number
Contracting
362
319
Administration
58
54
Total
420
373

Their aggregate remuneration comprised:

2024
2023
£'000
£'000
Wages and salaries
44,225
30,136
Social security costs
5,493
3,757
Pension costs
2,025
1,413
51,743
35,306
PHOENIX ME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 22 -
7
Directors' remuneration
2024
2023
£'000
£'000
Remuneration for qualifying services
6,526
3,409
Company pension contributions to defined contribution schemes
26
33
6,552
3,442
Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£'000
£'000
Remuneration for qualifying services
-
1,267
8
Interest receivable and similar income
2024
2023
£'000
£'000
Interest income
Interest on bank deposits
383
222
9
Taxation
2024
2023
£'000
£'000
Current tax
UK corporation tax on profits for the current period
2,881
1,659
Adjustments in respect of prior periods
-
0
(583)
Total current tax
2,881
1,076
Deferred tax
Origination and reversal of timing differences
-
0
(33)
Total tax charge
2,881
1,043
PHOENIX ME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
9
Taxation
(Continued)
- 23 -

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
£'000
£'000
Profit before taxation
10,671
7,402
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.88%)
2,668
1,694
Tax effect of expenses that are not deductible in determining taxable profit
215
42
Tax effect of income not taxable in determining taxable profit
-
0
(71)
Adjustments in respect of prior years
-
0
(583)
Effect of change in corporation tax rate
-
0
(29)
Depreciation on assets not qualifying for tax allowances
-
0
23
Other permanent differences
(2)
(33)
Taxation charge for the year
2,881
1,043
10
Tangible fixed assets
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£'000
£'000
£'000
£'000
Cost
At 1 October 2023 and 30 September 2024
392
348
89
829
Depreciation and impairment
At 1 October 2023
311
317
41
669
Depreciation charged in the year
68
11
22
101
At 30 September 2024
379
328
63
770
Carrying amount
At 30 September 2024
13
20
26
59
At 30 September 2023
81
31
48
160
11
Fixed asset investments
2024
2023
Notes
£'000
£'000
Investments in joint ventures
12
1
1
Unlisted investments
251
251
252
252
PHOENIX ME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
11
Fixed asset investments
(Continued)
- 24 -

The company has not designated any financial assets that are not classified as financial assets at fair value through profit or loss.

12
Joint ventures

Details of the company's joint ventures at 30 September 2024 are as follows:

Name of undertaking
Registered office
Interest
% Held
held
Direct
Price Phoenix HS2 JV Limited
Central House, 25 Camperdown Street, London, England, E1 8DZ
Ordinary
50.00
13
Stocks
2024
2023
£'000
£'000
Finished goods and goods for resale
91
91
14
Debtors
2024
2023
Amounts falling due within one year:
£'000
£'000
Trade debtors
21,567
26,448
Gross amounts owed by contract customers
44,351
25,621
Amounts owed by group undertakings
18,880
11,443
Other debtors
4,016
5,538
Prepayments and accrued income
1,106
648
89,920
69,698
2024
2023
Amounts falling due after more than one year:
£'000
£'000
Trade debtors
1,098
3,256
Total debtors
91,018
72,954

Trade debtors disclosed above are measured at amortised cost.

An allowance has been made for estimated irrecoverable amounts from construction contracts of £213,966 (2023: £213,966).

PHOENIX ME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
15
Creditors: amounts falling due within one year
2024
2023
£'000
£'000
Trade creditors
46,605
17,049
Amounts owed to group undertakings
339
596
Corporation tax
2,386
1,473
Other taxation and social security
1,408
1,079
Other creditors
476
409
Accruals and deferred income
16,680
27,446
67,894
48,052

Included within trade creditors are retentions held totalling £10.911,231 (2023 - £5,081,014).

16
Creditors: amounts falling due after more than one year
2024
2023
£'000
£'000
Trade creditors
1,005
1,296

Included within trade creditors due in more than one year is retentions totalling £1,097,766 (2023: £1,296,849).

17
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£'000
£'000
Accelerated capital allowances
21
21
There were no deferred tax movements in the year.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£'000
£'000
Charge to profit or loss in respect of defined contribution schemes
2,025
1,413

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 contributions of £344,186 (2023 - £259,158) owed to the scheme at the balance sheet date.

PHOENIX ME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£'000
£'000
Issued and fully paid
Ordinary of £1 each
5,022,000
5,022,000
5,022
5,022

The company has one class of ordinary share which carry no right to fixed income.

 

20
Financial commitments, guarantees and contingent liabilities

The company is party to a cross guarantee as security for the bank borrowings of the group.

 

The bank has a fixed and floating charge over the investments, property and assets of Cityside Electrical Co Ltd, Phoenix ME Limited and PhoenixTrescray Ltd.

21
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
£'000
£'000
Within one year
780
611
Between two and five years
658
920
In over five years
48
-
0
1,486
1,531

Operating lease payments represent rentals payable by the company for its office premises and storage facilities.

 

 

 

 

 

PHOENIX ME LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
22
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Management charges
2024
2023
£'000
£'000
Entities under common control
880
780
2024
2023
Amounts due from related parties
£'000
£'000
Entities under common control
18,880
3,675
Other information

The company has taken advantage of the exemption available under FRS 102 paragraph 33.1a whereby it has not disclosed transactions with any wholly owned subsidiary undertaking of the group.

 

23
Ultimate controlling party

The immediate and ultimate parent company is Cityside Electrical Co Ltd which owns 100% of the share capital. Its registered office is 1st Floor, 25 Camperdown Street, London, E1 8DZ. Cityside Electrical Co Ltd is also the ultimate parent company.

 

The largest and smallest group in which the company is consolidated is Cityside Electrical Co Ltd. Copies of the consolidated financial statements can be obtained from 25 Camperdown Street, London, E1 8DZ, the registered office of Cityside Electrical Co Ltd.

 

The ultimate controlling party is that of the director, Mr Lee Compton, due to his shareholding in Cityside Electrical Co Ltd.

24
Post balance sheet events

In the year ended 30 September 2023 the company made an insurance claim. At the reporting date it had been agreed that an interim payment of £1,250,000 less the excess fees of £250,000 was to be paid. This was paid post year end and has been recorded in these financial statements. At the date of signing no further payments nor closure of the claim had been agreed so no additional provisions have been included in the financial statements but it is anticipated that it will be settled in the next financial year.

 

The company is working with R&D specialists to finalise the 2024 R&D claim. At the time of signing the financial statements the value of the R&D claim cannot be quantified but the specialist have confirmed that the company has a justified claims. Funds are expected to be received during the next financial year.

 

On 14 October 2024 the company entered into a new lease with an annual commitment of £78,000.

 

 

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