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REGISTERED NUMBER: 05447028 (England and Wales)















Strategic Report, Report of the Director and

Financial Statements for the Year Ended 31 July 2024

for

European Active Projects Limited

European Active Projects Limited (Registered number: 05447028)






Contents of the Financial Statements
for the Year Ended 31 July 2024




Page

Company Information 1

Strategic Report 2

Report of the Director 3

Report of the Independent Auditors 4

Income Statement 8

Other Comprehensive Income 9

Balance Sheet 10

Statement of Changes in Equity 11

Cash Flow Statement 12

Notes to the Cash Flow Statement 13

Notes to the Financial Statements 15


European Active Projects Limited

Company Information
for the Year Ended 31 July 2024







DIRECTOR: S M Jones





SECRETARY: Aldbury Secretaries Limited





REGISTERED OFFICE: Unit 1 Steelfields Industrial Estate
Owens Way, Gads Hill
Gillingham
Kent
ME7 2RT





REGISTERED NUMBER: 05447028 (England and Wales)





AUDITORS: Hills Accountants Limited
Greenhill House
First Floor East Wing
Thorpe Road
Peterborough
Cambridgeshire
PE3 6RU

European Active Projects Limited (Registered number: 05447028)

Strategic Report
for the Year Ended 31 July 2024

The director presents his strategic report for the year ended 31 July 2024.

REVIEW OF BUSINESS
The results for the year are set out on page 9 of the financial statements. During the year ended 31 July 2024, the company saw an increase in turnover compared to 31 July 2023, with turnover for the year being £28,687,426 (2023 £27,146,474).

Results show the company growing its profitability and its strong balance sheet along with cash reserves, it is set for a continued path in 2025 with investment and training a key factor.

Health and Safety continues to be a top priority for its employees, customers and all stakeholders for the business. The company has a strong customer focus and customer base for development opportunities in the industry.

In order to maintain the company’s strong position it is intended to strengthen the management team with an extended Board Of Directors to take the company forward, to continue as a going concern and to develop for the forward years.

In the opinion of the directors the uncomplicated nature of the company's business does not warrant an analysis of KPI's to fully understand the company's development, performance or position.

PRINCIPAL RISKS AND UNCERTAINTIES
The company seeks to broaden its customer base and capabilities to limit its exposure to changes in demand. The principal challenge is to remain competitive in a global market place with continual increase in material costs. The directors have maintained a policy of investment to continually improve productivity and to manage its commercial pricing to ensure minimal exposure, whilst remaining competitive.

ON BEHALF OF THE BOARD:





S M Jones - Director


29 April 2025

European Active Projects Limited (Registered number: 05447028)

Report of the Director
for the Year Ended 31 July 2024

The director presents his report with the financial statements of the company for the year ended 31 July 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of support services to the marine and industrial sectors.

DIVIDENDS
No dividends will be distributed for the year ended 31 July 2024.

FUTURE DEVELOPMENTS
With difficult trading conditions expected globally the business looks to operate as efficiently as possible and be pro active with current customers as well as aiming to develop relationships with new customers.

DIRECTOR
S M Jones held office during the whole of the period from 1 August 2023 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES
The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

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

ON BEHALF OF THE BOARD:





S M Jones - Director


29 April 2025

Report of the Independent Auditors to the Members of
European Active Projects Limited

Opinion
We have audited the financial statements of European Active Projects Limited (the 'company') for the year ended 31 July 2024 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
_
In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 July 2024 and of its 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.

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

Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information
The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Report of the Independent Auditors to the Members of
European Active Projects Limited


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of director's remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of director
As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Report of the Independent Auditors to the Members of
European Active Projects Limited


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

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including, but not limited to, fraud and non-compliance with laws and regulations was as follows:

- The engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
- We identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience;
- We focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, employment, quality approval, environmental and health and safety legislation;
- We assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and
- Identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- Making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
- Considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:
- Performed analytical procedures to identify any unusual or unexpected relationships;
- Tested journal entries to identify unusual transactions;
- Reviewed the internal controls in place, specifically around payroll and bank transactions; and
- Assessed whether judgements and assumptions made in determining the accounting estimates around depreciation and stock and work in progress provisions were indicative of potential bias.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Report of the Independent Auditors to the Members of
European Active Projects Limited


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




Mr Lee James Hills (Senior Statutory Auditor)
for and on behalf of Hills Accountants Limited
Greenhill House
First Floor East Wing
Thorpe Road
Peterborough
Cambridgeshire
PE3 6RU

29 April 2025

European Active Projects Limited (Registered number: 05447028)

Income Statement
for the Year Ended 31 July 2024

31.7.24 31.7.23
Notes £    £   

TURNOVER 3 28,687,426 27,146,474

Cost of sales 22,338,280 19,253,640
GROSS PROFIT 6,349,146 7,892,834

Administrative expenses 6,139,269 6,907,260
209,877 985,574

Other operating income - 16,205
OPERATING PROFIT 5 209,877 1,001,779

Interest receivable and similar income 1,610 -
211,487 1,001,779

Interest payable and similar expenses 6 14,544 2,207
PROFIT BEFORE TAXATION 196,943 999,572

Tax on profit 7 - 287,452
PROFIT FOR THE FINANCIAL YEAR 196,943 712,120

European Active Projects Limited (Registered number: 05447028)

Other Comprehensive Income
for the Year Ended 31 July 2024

31.7.24 31.7.23
Notes £    £   

PROFIT FOR THE YEAR 196,943 712,120


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

196,943

712,120

European Active Projects Limited (Registered number: 05447028)

Balance Sheet
31 July 2024

31.7.24 31.7.23
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 8 1,064,986 671,114
Investments 9 1 1
1,064,987 671,115

CURRENT ASSETS
Stocks 10 1,161,017 1,181,738
Debtors 11 6,358,712 4,334,262
Cash at bank and in hand 273,108 192,456
7,792,837 5,708,456
CREDITORS
Amounts falling due within one year 12 6,421,882 4,301,477
NET CURRENT ASSETS 1,370,955 1,406,979
TOTAL ASSETS LESS CURRENT
LIABILITIES

2,435,942

2,078,094

CREDITORS
Amounts falling due after more than one
year

13

(374,855

)

(213,950

)

PROVISIONS FOR LIABILITIES 18 (37,228 ) (37,228 )
NET ASSETS 2,023,859 1,826,916

CAPITAL AND RESERVES
Called up share capital 19 50 50
Revaluation reserve 20 180,353 180,353
Retained earnings 20 1,843,456 1,646,513
SHAREHOLDERS' FUNDS 2,023,859 1,826,916

The financial statements were approved by the director and authorised for issue on 29 April 2025 and were signed by:





S M Jones - Director


European Active Projects Limited (Registered number: 05447028)

Statement of Changes in Equity
for the Year Ended 31 July 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 August 2022 50 934,393 180,353 1,114,796

Changes in equity
Total comprehensive income - 712,120 - 712,120
Balance at 31 July 2023 50 1,646,513 180,353 1,826,916

Changes in equity
Total comprehensive income - 196,943 - 196,943
Balance at 31 July 2024 50 1,843,456 180,353 2,023,859

European Active Projects Limited (Registered number: 05447028)

Cash Flow Statement
for the Year Ended 31 July 2024

31.7.24 31.7.23
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 (1,622,188 ) 2,211,541
Interest paid (30 ) (161 )
Interest element of hire purchase payments
paid

(14,514

)

(2,046

)
Tax paid (250,224 ) (15,771 )
Net cash from operating activities (1,886,956 ) 2,193,563

Cash flows from investing activities
Purchase of tangible fixed assets (334,340 ) (380,633 )
Sale of tangible fixed assets 12,430 53,021
Interest received 1,610 -
Net cash from investing activities (320,300 ) (327,612 )

Cash flows from financing activities
Loan repayments in year (100,000 ) (100,000 )
Capital repayments in year (88,755 ) (15,480 )
Net cash from financing activities (188,755 ) (115,480 )

(Decrease)/increase in cash and cash equivalents (2,396,011 ) 1,750,471
Cash and cash equivalents at beginning of
year

2

192,456

(1,558,015

)

Cash and cash equivalents at end of year 2 (2,203,555 ) 192,456

European Active Projects Limited (Registered number: 05447028)

Notes to the Cash Flow Statement
for the Year Ended 31 July 2024

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

31.7.24 31.7.23
£    £   
Profit before taxation 196,943 999,572
Depreciation charges 251,230 172,699
(Profit)/loss on disposal of fixed assets (7,709 ) 15,942
Impairment charges 109,670 -
Finance costs 14,544 2,207
Finance income (1,610 ) -
563,068 1,190,420
Decrease in stocks 20,721 106,371
(Increase)/decrease in trade and other debtors (2,024,449 ) 376,955
(Decrease)/increase in trade and other creditors (181,528 ) 537,795
Cash generated from operations (1,622,188 ) 2,211,541

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 July 2024
31.7.24 1.8.23
£    £   
Cash and cash equivalents 273,108 192,456
Bank overdrafts (2,476,663 ) -
(2,203,555 ) 192,456
Year ended 31 July 2023
31.7.23 1.8.22
£    £   
Cash and cash equivalents 192,456 229,861
Bank overdrafts - (1,787,876 )
192,456 (1,558,015 )


European Active Projects Limited (Registered number: 05447028)

Notes to the Cash Flow Statement
for the Year Ended 31 July 2024

3. ANALYSIS OF CHANGES IN NET DEBT

Other
non-cash
At 1.8.23 Cash flow changes At 31.7.24
£    £    £    £   
Net cash
Cash at bank
and in hand 192,456 80,652 273,108
Bank overdrafts - (2,476,663 ) (2,476,663 )
192,456 (2,396,011 ) (2,203,555 )
Debt
Finance leases (29,479 ) 88,755 (425,154 ) (365,878 )
Debts falling due
within 1 year (100,000 ) - - (100,000 )
Debts falling due
after 1 year (208,333 ) 100,000 - (108,333 )
(337,812 ) 188,755 (425,154 ) (574,211 )
Total (145,356 ) (2,207,256 ) (425,154 ) (2,777,766 )

European Active Projects Limited (Registered number: 05447028)

Notes to the Financial Statements
for the Year Ended 31 July 2024

1. STATUTORY INFORMATION

European Active Projects Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Going concern
The directors have prepared forecasts for the company for a period greater than 12 months from the date of approval of these financial statements. The forecasts take into account known changes in the trading environment, performance, ongoing war in Ukraine and funding requirements during that period.

After making enquiries, the directors have a reasonable expectation that the company has sufficient funds to meet its liabilities as they fall due, allowing the business to continue in operational existence for the foreseeable future. Accordingly, the company continues to adopt the going concern basis of preparing the financial statements.

Critical accounting 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 values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

The directors do not consider that any key judgements have been made in preparing these financial statements.

Key sources of of estimation uncertainty

Useful economic lives and residual values of Tangible fixed assets: The company reviews the estimated useful lives of the Tangible Fixed Assets at the end of each reporting period. During the current period the Directors have concluded that the lives of certain assets required revision. See below under the heading of "Changes in accounting estimate".

European Active Projects Limited (Registered number: 05447028)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

2. ACCOUNTING POLICIES - continued

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebate, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods
Revenue from the sale of goods is recognised when all of the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership to the buyer:
- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due under the transaction; and
- the costs incurred or to be incurred in respect of the transaction can be measure reliably.

Rendering of services
Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
- the amount of revenue can be measured reliably;
- it is probable that the Company will receive the consideration due under the contract;
- the stage of completion of the contract at the end of the reporting period can be measured reliably; and
- the costs incurred and the costs to complete the contract can be measured reliably.

Unbilled revenue is shown as work in progress with the corresponding entry shown as turnover.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Short leasehold - 10% on cost
Plant and machinery - 20% on cost
Motor vehicles - 20% on reducing balance

At each reporting end date, the company reviews the carrying amounts of its tangible 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 impairment. Recoverable amount is the higher of fair value less cost 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. An impairment loss is recognised immediately in the income statement.

Investments in subsidiaries
Investments in subsidiary undertakings are recognised at cost.

Stocks
Stocks and work in progress are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

European Active Projects Limited (Registered number: 05447028)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
Basic financial assets, including trade and other debtors, cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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 assets original effective interest rate. The impairment loss is recognised in profit or loss.

Basis financial liabilities, including trade and other creditors, and bank loans 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 receipts discounted at a market rate of interest.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Accounts 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

European Active Projects Limited (Registered number: 05447028)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

2. ACCOUNTING POLICIES - continued

Changes in accounting estimate
During the financial year, the company conducted a comprehensive review of the useful lives and residual values of its tangible fixed assets at the balance sheet date. As a result of this review, the following changes in accounting estimates were made:

Useful Lives:

The useful lives of certain categories of assets were revised based upon the directors updated information about their expected economic benefits. The changes are as follows:

Motor vehicles: Decreased from 25% straightline to 20% reducing balance


Impact on Financial Statements:

The changes in accounting estimates have been applied prospectively from the date of the change. The effect of these changes has been to decrease the depreciation expense by £43,191

3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

31.7.24 31.7.23
£    £   
Rendering of services 28,687,426 27,146,474
28,687,426 27,146,474

The analysis of turnover by geographical markets has not been provided as, in the opinion of the directors such disclosure would be seriously prejudicial to the interests of the company.

4. EMPLOYEES AND DIRECTORS
31.7.24 31.7.23
£    £   
Wages and salaries 9,351,665 6,803,112
Social security costs 1,076,665 762,935
Other pension costs 172,705 121,525
10,601,035 7,687,572

The average number of employees during the year was as follows:
31.7.24 31.7.23

Production 218 171
Administration 20 20
238 191

European Active Projects Limited (Registered number: 05447028)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

4. EMPLOYEES AND DIRECTORS - continued

31.7.24 31.7.23
£    £   
Director's remuneration 370,845 330,500
Director's pension contributions to money purchase schemes 51,000 44,000

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

Information regarding the highest paid director is as follows:
31.7.24 31.7.23
£    £   
Emoluments etc 370,845 330,500
Pension contributions to money purchase schemes 51,000 44,000

5. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.7.24 31.7.23
£    £   
Equipment hire 239,339 216,385
Other operating leases 269,852 215,023
Depreciation - owned assets 251,231 172,699
(Profit)/loss on disposal of fixed assets (7,709 ) 15,942
Auditors' remuneration 11,000 9,000

6. INTEREST PAYABLE AND SIMILAR EXPENSES
31.7.24 31.7.23
£    £   
Bank loan interest 30 161
Hire purchase 14,514 2,046
14,544 2,207

7. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
31.7.24 31.7.23
£    £   
Current tax:
UK corporation tax - 250,224

Deferred tax - 37,228
Tax on profit - 287,452

European Active Projects Limited (Registered number: 05447028)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

31.7.24 31.7.23
£    £   
Profit before tax 196,943 999,572
Profit multiplied by the standard rate of corporation tax in the UK of 25%
(2023 - 25%)

49,236

249,893

Effects of:
Expenses not deductible for tax purposes 8,952 28,759
Capital allowances in excess of depreciation (76,760 ) -
Depreciation in excess of capital allowances - 19,157
credit
Marginal rate relief - (47,585 )
Deferred taxation charge - 37,228
Allowable cost deduction (19,403 ) -
Trading losses 37,975 -
Total tax charge - 287,452

8. TANGIBLE FIXED ASSETS
Short Plant and Motor
leasehold machinery vehicles Totals
£    £    £    £   
COST
At 1 August 2023 874,636 492,198 190,208 1,557,042
Additions 141,733 116,144 501,617 759,494
Disposals - - (12,203 ) (12,203 )
At 31 July 2024 1,016,369 608,342 679,622 2,304,333
DEPRECIATION
At 1 August 2023 396,755 376,097 113,076 885,928
Charge for year 52,828 84,062 114,341 251,231
Eliminated on disposal - - (7,482 ) (7,482 )
Impairments 109,670 - - 109,670
At 31 July 2024 559,253 460,159 219,935 1,239,347
NET BOOK VALUE
At 31 July 2024 457,116 148,183 459,687 1,064,986
At 31 July 2023 477,881 116,101 77,132 671,114

The net book value of tangible fixed assets included £389,786 (2023 £26,609) in respect of assets held under hire purchase contracts.

European Active Projects Limited (Registered number: 05447028)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

9. FIXED ASSET INVESTMENTS
Shares in
group
undertakings
£   
COST
At 1 August 2023
and 31 July 2024 1
NET BOOK VALUE
At 31 July 2024 1
At 31 July 2023 1

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Pier Rigging and Testing Limited
Registered office: Berth 5 Chatham Docks, Gillingham Gate, Chatham, Kent, United Kingdom
Nature of business: Manufacture of lifting and handling equipment
%
Class of shares: holding
Ordinary 100.00
30.9.23 30.9.22
£    £   
Aggregate capital and reserves 8,974 (28,657 )
Profit/(loss) for the year 37,631 (16,703 )

10. STOCKS
31.7.24 31.7.23
£    £   
Stocks 597,154 413,545
Work-in-progress 563,863 768,193
1,161,017 1,181,738

11. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.24 31.7.23
£    £   
Trade debtors 5,324,012 3,804,064
Amounts owed by group undertakings 10,436 70,000
Other debtors 458,470 362,580
Prepayments and accrued income 565,794 97,618
6,358,712 4,334,262

European Active Projects Limited (Registered number: 05447028)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
31.7.24 31.7.23
£    £   
Bank loans and overdrafts (see note 14) 2,576,663 100,000
Hire purchase contracts (see note 15) 99,356 23,862
Trade creditors 1,559,829 2,406,163
Tax - 250,224
Social security and other taxes 1,129,977 872,116
Other creditors 25,341 6,256
Deferred income 201,825 -
Accrued expenses 828,891 642,856
6,421,882 4,301,477

13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
31.7.24 31.7.23
£    £   
Bank loans (see note 14) 108,333 208,333
Hire purchase contracts (see note 15) 266,522 5,617
374,855 213,950

14. LOANS

An analysis of the maturity of loans is given below:

31.7.24 31.7.23
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 2,476,663 -
Bank loans 100,000 100,000
2,576,663 100,000

Amounts falling due between one and two years:
Bank loans - 1-2 years 100,000 100,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 8,333 108,333

15. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
31.7.24 31.7.23
£    £   
Net obligations repayable:
Within one year 99,356 23,862
Between one and five years 266,522 5,617
365,878 29,479

European Active Projects Limited (Registered number: 05447028)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

15. LEASING AGREEMENTS - continued

Non-cancellable operating leases
31.7.24 31.7.23
£    £   
Within one year 136,858 215,502
Between one and five years 122,442 281,330
259,300 496,832

16. SECURED DEBTS

The following secured debts are included within creditors:

31.7.24 31.7.23
£    £   
Factoring account 2,476,663 -
Bank loans 208,333 308,333
2,684,996 308,333

Included in 'Bank loans and overdrafts' is an amount of £2,476,663 (2023 £Nil) owing to a debt factoring company which is secured against the trade debtors of the company.

17. FINANCIAL INSTRUMENTS



31.7.24 31.7.23
£ £


Financial assets measured at amortised cost
Trade debtors 5,324,012 3,804,064
Other debtors 458,470 362,580
Amounts owed by group undertakings 10,436 70,000
Prepayments 565,794 97,618


Financial liabilities measured at amortised cost
Bank loans and overdrafts 308,333 308,333
Hire purchase contracts 365,878 29,479
Trade creditors 1,559,829 2,406,164


18. PROVISIONS FOR LIABILITIES
31.7.24 31.7.23
£    £   
Deferred tax
Accelerated capital allowances 37,228 37,228

European Active Projects Limited (Registered number: 05447028)

Notes to the Financial Statements - continued
for the Year Ended 31 July 2024

18. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 August 2023 37,228
Balance at 31 July 2024 37,228

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 31.7.24 31.7.23
value: £    £   
50 Ordinary £1 50 50

20. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 August 2023 1,646,513 180,353 1,826,866
Profit for the year 196,943 196,943
At 31 July 2024 1,843,456 180,353 2,023,809

21. RELATED PARTY DISCLOSURES

Entities over which the entity has control, joint control or significant influence
31.7.24 31.7.23
£    £   
Amount due from related party 10,436 70,000

As at 31 July 2024 the company was owed £10,436 (2023 £70,000) from its wholly owned subsidiary, Pier Rigging and Testing Limited.

Other related parties

As at 31 July 2024 the company was owed £337,000 (2023 £217,000) from LWJ Consultancy UK Limited.

During the financial year the company paid management fees amounting to £Nil (2023 £1,401,667) to LWJ Consultancy UK Limited, a company controlled by S Jones who is the controlling director and shareholder of European Active Projects Limited.

22. ULTIMATE CONTROLLING PARTY

The controlling party is S M Jones.

The ultimate controlling party is S M Jones.