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COMPANY REGISTRATION NUMBER: 02316623
AMALGAMATED LIFTS LIMITED
FINANCIAL STATEMENTS
31 December 2024
AMALGAMATED LIFTS LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2024
Contents
Pages
Officers and professional advisers
1
Strategic report
2
Directors' report
3 to 4
Independent auditor's report to the members
5 to 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 to 21
AMALGAMATED LIFTS LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The board of directors
S R Smith (Resigned 26 July 2024)
J Brand
P D Bishop
H Wakabayashi
H Tokuami
M Fujii
Y Uchiyama
Registered office
4 Mulberry Court
Bourne Road
Crayford
Kent
DA1 4BF
Auditor
Opass Billings Wilson & Honey LLP
Chartered Certified Accountants & statutory auditor
Numeric House
98 Station Road
Sidcup
Kent
DA15 7BY
Bankers
National Westminster
Chatham Customer Service Centre
Western Avenue
Waterside
Chatham Maritime
Kent
ME4 4RT
Solicitors
Lewis Townsend
1 Fore Street
London
EC2Y 5EJ
AMALGAMATED LIFTS LIMITED
STRATEGIC REPORT
YEAR ENDED 31 DECEMBER 2024
The Company continues to work in line with its Integrated Management System and adopts all policies put in place in accordance with their strategy. Key performance indicators are used as measurements and there is accountability in place in all departments. The business has three departments (see turnover accounting policy note), each managed with a good top down leadership structure.
Review of Business Turnover for the 12 month period ended 31 December 2024 was £25.4m, the board are pleased with this result compared to the turnover for 9 months to 31 December 2023 of £16.8m. At the period end the business is in a healthy position with a solid order book going into the new year and fixed contracts in place. Further renewals are expected in the new year as well. The balance sheet and cash flow are healthy. The business has always been run in prudent fashion with a calculated approach to risks. In doing this there is safety and security to ensure longevity for the business. Tight cash flow management and good credit rating ensures investment opportunities are readily available and we are prepared for taking on new contracts. There is an aggressive growth strategy in place with a clear vision of what is to be achieved for the future. The progressive outlook from senior management ensures that there is an evolving structure within each department to cater for all types of contract needs and requirements.
Key Performance indicators The directors consider that the key performance indicators of the company are as follows: Turnover £25.4m (December 2023: £16.8m) Operating profit £838,269 (December 2023: £507,155) Net assets £3.59m (December 2023: £2.84m) There are many other Key Performance Indicators set out within the Company's Integrated Management System to ensure the smooth functioning of the business and that all employees are measured against targets. Equally, contracts have Key Performance Indicators set against them to ensure the delivery of service to clients is measured, maintained and improved upon.
Principal Risks and Uncertainties There is still uncertainty in uncontrollable factors, such as the introduction of UKCA only marked equipment scheduled to be in place at some stage and the withdrawal of CE markings not being recognised. This has been postponed but continues to be a potential future uncertainty. Furthermore, the volatility in the UK in relation to inflation and unsettled costs of goods is a risk when pricing for future works and having to keep quotes in place. It is now commonplace that there are longer lead times on materials and this is a risk within the industry to ensure lift reliability. We are mitigating these items by securing strong supplier relations, holding key stock, and passing on the locking of costs to our suppliers where we are being asked to retain our prices.
This report was approved by the board of directors on 13 May 2025 and signed on behalf of the board by:
J Brand
Director
AMALGAMATED LIFTS LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements of the company for the year ended 31 December 2024 .
Directors
The directors who served the company during the year were as follows:
J Brand
P D Bishop
H Wakabayashi
H Tokuami
M Fujii
Y Uchiyama
S R Smith
(Resigned 26 July 2024)
Dividends
The directors do not recommend the payment of a dividend.
Future developments
Following successive periods of fast paced growth in a calculated manner, the forthcoming year is one of consolidating our position and focusing on profitability and structure. There has been a recent improvement to structure in line with our growth and the next phase is to ensure this continues our success.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, directors' 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 the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 13 May 2025 and signed on behalf of the board by:
J Brand
Director
AMALGAMATED LIFTS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AMALGAMATED LIFTS LIMITED
YEAR ENDED 31 DECEMBER 2024
Opinion
We have audited the financial statements of Amalgamated Lifts Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, 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 FRS 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 December 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We identify and assess the key risk areas of material misstatement and then design and perform audit procedures in relation to those risks. Materiality has been calculated based on the average of the income, profit for the year and gross assets and has been assessed at a level of £200,000. The key risk areas were considered to be recognition of income on long term contracts, debtors and management overrride. The appropriate audit approaches were considered and applied to these areas. - Our audit work to test the long-term contracts involved reviewing sales invoices during the year to ensure the invoices agree to the surveyor's valuations ensuring the invoices are raised on a timely manner and are accurate. - Our audit work to test the debtors involved reviewing sales invoices during the year to ensure the invoices agree to the surveyor's valuations ensuring the invoices are raised on a timely manner and are accurate. - Our audit work to test management override involved reviewing journals throughout the year as well as various discussions with management during the audit. We performed analytical procedures to identify any unusual or unexpected ratios or variances that may indicate risks of material misstatement due to fraud. We reviewed the financial statement disclosures and assessed compliance with the following relevant laws and regulations; - Companies Act 2006. - Health and Safety at work Act 1974. - Data Protection Act 2018. Irregularities which result from fraud are inherently more difficult to detect than irregularities which result from error, however there have never been any instances of fraud encountered with the company and there are controls in place through the segregation of duties and regular reviews of management accounts which reduce the risk of fraud through management override. All audit team members were made aware of the relevant laws & regulations applicable to the company together with potential fraud risks and remained alert to any indications of fraud non compliance with the laws & regulations throughout the audit. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report
This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Philip Benson Woodman FCCA
(Senior Statutory Auditor)
For and on behalf of
Opass Billings Wilson & Honey LLP
Chartered Certified Accountants & statutory auditor
Numeric House
98 Station Road
Sidcup
Kent
DA15 7BY
13 May 2025
AMALGAMATED LIFTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 DECEMBER 2024
Period from
Year to
1 Apr 23 to
31 Dec 24
31 Dec 23
Note
£
£
Turnover
4
25,432,504
16,833,864
Cost of sales
19,728,678
13,079,708
--------------
--------------
Gross profit
5,703,826
3,754,156
Administrative expenses
4,865,557
3,247,001
------------
------------
Operating profit
5
838,269
507,155
Interest payable and similar expenses
9
14,901
6,954
------------
------------
Profit before taxation
823,368
500,201
Tax on profit
10
70,739
41,606
----------
----------
Profit for the financial year and total comprehensive income
752,629
458,595
----------
----------
All the activities of the company are from continuing operations.
AMALGAMATED LIFTS LIMITED
STATEMENT OF FINANCIAL POSITION
31 December 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
11
1,895,421
1,648,324
Current assets
Debtors
12
8,819,129
6,123,295
Cash at bank and in hand
567,548
340,592
------------
------------
9,386,677
6,463,887
Creditors: amounts falling due within one year
13
7,056,052
4,922,145
------------
------------
Net current assets
2,330,625
1,541,742
------------
------------
Total assets less current liabilities
4,226,046
3,190,066
Creditors: amounts falling due after more than one year
14
470,994
258,382
Provisions
16
164,958
94,219
------------
------------
Net assets
3,590,094
2,837,465
------------
------------
Capital and reserves
Called up share capital
19
547
547
Capital redemption reserve
20
519
519
Profit and loss account
20
3,589,028
2,836,399
------------
------------
Shareholders funds
3,590,094
2,837,465
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 13 May 2025 , and are signed on behalf of the board by:
J Brand
Director
Company registration number: 02316623
AMALGAMATED LIFTS LIMITED
STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 DECEMBER 2024
Called up share capital
Capital redemption reserve
Profit and loss account
Total
£
£
£
£
At 1 April 2023
547
519
2,377,804
2,378,870
Profit for the year
458,595
458,595
----
----
------------
------------
Total comprehensive income for the year
458,595
458,595
At 31 December 2023
547
519
2,836,399
2,837,465
Profit for the year
752,629
752,629
----
----
------------
------------
Total comprehensive income for the year
752,629
752,629
----
----
------------
------------
At 31 December 2024
547
519
3,589,028
3,590,094
----
----
------------
------------
AMALGAMATED LIFTS LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 DECEMBER 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
752,629
458,595
Adjustments for:
Depreciation of tangible assets
287,541
166,503
Interest payable and similar expenses
14,901
6,954
Loss on disposal of tangible assets
6,274
1,507
Tax on profit
70,739
41,606
Accrued expenses/(income)
841,574
( 1,541,230)
Changes in:
Trade and other debtors
( 2,695,834)
( 396,614)
Trade and other creditors
1,259,572
1,221,633
------------
------------
Cash generated from operations
537,396
( 41,046)
Interest paid
( 14,901)
( 6,954)
----------
--------
Net cash from/(used in) operating activities
522,495
( 48,000)
----------
--------
Cash flows from investing activities
Purchase of tangible assets
( 574,560)
( 339,725)
Proceeds from sale of tangible assets
33,648
20,758
----------
----------
Net cash used in investing activities
( 540,912)
( 318,967)
----------
----------
Cash flows from financing activities
Payments of finance lease liabilities
245,373
75,373
----------
----------
Net cash from financing activities
245,373
75,373
----------
----------
Net increase/(decrease) in cash and cash equivalents
226,956
( 291,594)
Cash and cash equivalents at beginning of year
340,592
632,186
----------
----------
Cash and cash equivalents at end of year
567,548
340,592
----------
----------
AMALGAMATED LIFTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 DECEMBER 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 4 Mulberry Court, Bourne Road, Crayford, Kent, DA1 4BF.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Debtors
Debtors are initially recorded at fair value and are assessed for impairment at each year end date. If any impairments exist the debtors are re-measured to the present value of the expected future cash inflows
Creditors
Creditors are initially recorded at fair value and are then re-measured to the present value of the expected future cash outflows.
Judgements and key sources of estimation uncertainty
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The company makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. Specifically, management make judgements relating to work in progress. The value of work in progress is based on the percentage of work completed on each individual project and includes staff time, production costs and other third party costs not yet billed but considered as receivables. Specific mark ups are applied to individual projects to calculate expected gross margin. These mark ups are applied using previous experience and director expertise and are reviewed and adjusted accordingly throughout the life of a project.
Revenue recognition
Turnover represents the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes in respect of installation, maintenance and repair of elevator lifts. Installation revenue Turnover is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for its performance under these contracts. It is measured at the fair value of the right to consideration, which represents amounts chargeable to clients, including expenses and disbursements but excluding value added tax. Profit is recognised on long term work in progress contracts if the final outcome can be assessed with reasonable certainty by including in the profit and loss account, turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract. Turnover not billed to clients is included in debtors and any payments on account in excess of the relevant amount of turnover are included in creditors. Maintenance revenue Turnover is derived from contracts which are primarily invoiced in advance. Turnover is recognised evenly over the period of the contract. Repair revenue Turnover is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
Income tax
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.
Foreign currencies
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Freehold property
-
2% straight line
Plant and machinery
-
33% straight line
Motor vehicles
-
25% reducing balance
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Finance leases and hire purchase contracts
Assets held under hire purchase contracts which transfer to the company substantially all the benefits and risks of ownership of the assets are treated as if the assets had been purchased outright. The assets are included in fixed assets and the capital element of the repayments is shown as a liability in the Balance Sheet. The interest element is shown as a charge in the Income Statement.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
The company operates a defined contribution scheme for the benefit of its directors and senior employees. The assets of the fund are held separately from the assets of the company in an independently managed scheme. The costs of the scheme are charged to the Profit and Loss Account as they fall due.
4. Turnover
Turnover arises from:
Period from
Year to
1 Apr 23 to
31 Dec 24
31 Dec 23
£
£
Rendering of services
11,793,477
8,415,226
Construction contracts
13,639,027
8,418,638
--------------
--------------
25,432,504
16,833,864
--------------
--------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
Period from
Year to
1 Apr 23 to
31 Dec 24
31 Dec 23
£
£
Depreciation of tangible assets
287,541
166,503
Loss on disposal of tangible assets
6,274
1,507
Impairment of trade debtors
10,710
Foreign exchange differences
( 148)
( 328)
----------
----------
6. Auditor's remuneration
Period from
Year to
1 Apr 23 to
31 Dec 24
31 Dec 23
£
£
Fees payable for the audit of the financial statements
16,400
16,400
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Directors
3
3
Administration
38
34
Engineers
85
80
----
----
126
117
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
Period from
Year to
1 Apr 23 to
31 Dec 24
31 Dec 23
£
£
Wages and salaries
6,663,356
4,226,271
Social security costs
726,338
498,686
Other pension costs
173,733
98,343
------------
------------
7,563,427
4,823,300
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
Period from
Year to
1 Apr 23 to
31 Dec 24
31 Dec 23
£
£
Remuneration
335,942
289,500
Company contributions to defined benefit pension plans
3,600
2,627
----------
----------
339,542
292,127
----------
----------
Remuneration of the highest paid director in respect of qualifying services:
Period from
Year to
1 Apr 23 to
31 Dec 24
31 Dec 23
£
£
Aggregate remuneration
195,314
107,438
----------
----------
9. Interest payable and similar expenses
Period from
Year to
1 Apr 23 to
31 Dec 24
31 Dec 23
£
£
Interest on obligations under finance leases and hire purchase contracts
14,901
6,954
--------
-------
10. Tax on profit
Major components of tax expense
Period from
Year to
1 Apr 23 to
31 Dec 24
31 Dec 23
£
£
Deferred tax:
Origination and reversal of timing differences
70,739
41,606
--------
--------
Tax on profit
70,739
41,606
--------
--------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 25 %).
Period from
Year to
1 Apr 23 to
31 Dec 24
31 Dec 23
£
£
Profit on ordinary activities before taxation
823,368
500,201
----------
----------
Profit on ordinary activities by rate of tax
195,342
125,050
Effect of expenses not deductible for tax purposes
12,942
8,287
Effect of capital allowances and depreciation
( 61,507)
( 54,359)
Utilisation of tax losses
( 27,858)
( 1,714)
Effect of deferred taxation
70,739
41,606
Utilisation of tax losses from group companies
(118,919)
(77,264)
----------
----------
Tax on profit
70,739
41,606
----------
----------
11. Tangible assets
Freehold property
Plant and machinery
Motor vehicles
Total
£
£
£
£
Cost
At 1 January 2024
1,103,363
179,839
1,346,955
2,630,157
Additions
68,135
20,762
485,663
574,560
Disposals
( 66,062)
( 175,103)
( 241,165)
------------
----------
------------
------------
At 31 December 2024
1,171,498
134,539
1,657,515
2,963,552
------------
----------
------------
------------
Depreciation
At 1 January 2024
198,850
137,014
645,969
981,833
Charge for the year
22,814
31,627
233,100
287,541
Disposals
( 62,908)
( 138,335)
( 201,243)
------------
----------
------------
------------
At 31 December 2024
221,664
105,733
740,734
1,068,131
------------
----------
------------
------------
Carrying amount
At 31 December 2024
949,834
28,806
916,781
1,895,421
------------
----------
------------
------------
At 31 December 2023
904,513
42,825
700,986
1,648,324
------------
----------
------------
------------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Motor vehicles
£
At 31 December 2024
752,817
----------
At 31 December 2023
585,934
----------
12. Debtors
2024
2023
£
£
Trade debtors
5,266,474
2,671,984
Amounts owed by customers on construction contracts
2,716,289
2,769,488
Prepayments and accrued income
513,649
360,153
Other debtors
322,717
321,670
------------
------------
8,819,129
6,123,295
------------
------------
13. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
4,248,582
3,074,568
Accruals and deferred income
1,797,659
956,085
Corporation tax
2
2
Social security and other taxes
846,875
754,199
Obligations under finance leases and hire purchase contracts
158,803
126,042
Other creditors
4,131
11,249
------------
------------
7,056,052
4,922,145
------------
------------
14. Creditors: amounts falling due after more than one year
2024
2023
£
£
Obligations under finance leases and hire purchase contracts
470,994
258,382
----------
----------
15. Finance leases and hire purchase contracts
The total future minimum lease payments under finance leases and hire purchase contracts are as follows:
2024
2023
£
£
Not later than 1 year
158,803
126,042
Later than 1 year and not later than 5 years
470,994
258,382
----------
----------
629,797
384,424
----------
----------
16. Provisions
Deferred tax (note 17)
£
At 1 January 2024
94,219
Additions
70,739
----------
At 31 December 2024
164,958
----------
17. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 16)
164,958
94,219
----------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
164,958
94,219
----------
--------
18. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 170,133 (2023: £ 95,716 ).
19. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
547
547
547
547
----
----
----
----
20. Reserves
Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.
21. Analysis of changes in net debt
At 1 Jan 2024
Cash flows
At 31 Dec 2024
£
£
£
Cash at bank and in hand
340,592
226,956
567,548
Debt due within one year
(126,042)
(32,761)
(158,803)
Debt due after one year
(258,382)
(212,612)
(470,994)
----------
----------
----------
( 43,832)
( 18,417)
( 62,249)
----------
----------
----------
22. Controlling party
The immediate parent company is Fujitec UK Limited, a company incorporated in England & Wales with its registered office at 4 Mulberry Court Bourne Road, Crayford, Dartford, DA1 4BF. The company's ultimate parent company is Fujitec Co. Limited, incorporated in Japan. It has included the company and its parent in its group accounts, copies of which are available from its registered office: Big Wing, Hikone, Shiga 522-8588, Japan. Fujitec Co. Limited is a public company listed on the Japanese stock exchange and as such has no controlling party.