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COMPANY REGISTRATION NUMBER: 01427132
AIM COMMERCIAL CLEANING LIMITED
FINANCIAL STATEMENTS
31 March 2024
AIM COMMERCIAL CLEANING LIMITED
FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2024
Contents
Pages
Officers and professional advisers
1
Strategic report
2 to 4
Directors' report
5 to 6
Independent auditor's report to the members
7 to 11
Statement of comprehensive income
12
Statement of financial position
13
Statement of changes in equity
14
Statement of cash flows
15
Notes to the financial statements
16 to 24
AIM COMMERCIAL CLEANING LIMITED
OFFICERS AND PROFESSIONAL ADVISERS
The board of directors
Mr J Brown
Mr S Brown
Mr A Sullivan
Mr K Odetayo
Registered office
12 Hatherley Road
Sidcup
Kent
England
DA14 4DT
Auditor
Opass Billings Wilson & Honey LLP
Chartered Certified Accountants & statutory auditor
Numeric House
98 Station Road
Sidcup
Kent
DA15 7BY
Bankers
Barclays Bank Plc
Leicester
Leicestershire
LE87 2BB
AIM COMMERCIAL CLEANING LIMITED
STRATEGIC REPORT
YEAR ENDED 31 MARCH 2024
Introduction The directors present their strategic report to the company for the year ended 31 March 2024 .
Review of the business Background: Founded in 1979, AIM Commercial Cleaning Limited has built a reputation for delivering sustainable, customer-centric cleaning and support services across the UK. As an independent, family-run business, we place great emphasis on ethics, recruiting and retaining a motivated team. This team, supported by a strong management structure, ensures high levels of service and client retention. Goals and Objectives: Our core focus remains on service excellence, which drives client retention and, coupled with a robust sales strategy, facilitates sustainable growth. We are committed to continuous improvement and innovation by reinvesting in our team and systems to remain industry leaders. Over the years, we've grown organically, continually assessing both our clients' needs and the marketplace to ensure our services align with evolving business environments. Strategy: The Directors prioritise managing risk to minimise exposure to external market influences and potential industry trends that could affect profitability. We maintain a balance client portfolio - spanning large, medium and small businesses in various private and public sectors. Our careful risk management has allowed us to successfully navigate transitions over the past three years, ensuring sustainable growth. Strategic Priorities: 1. Organic Growth: Building on our strong reputation and consistent performance 2. Client Retention: Strengthening partnerships through a customer-centric approach 3. Employee Retention: Ensuring AIM remains a great place to work 4. Continuous Improvement: Driving innovation to enhance service and quality 5. Sustainable Outcomes: Achieving progressive environmental and social impact aligned with our clients' goals
Review of the Year The Board is pleased with the year-end results for 2023/24: - Sales revenue increased by 22% to £14,373,498, driven by new business and a 12% rise in Real Living Wage contracts - Gross profit rose by 35%, with the margin increasing to 21.95% from 19.84% - Net trading profit grew from 3% to 5% of turnover New business wins and client retention exceeded targets. Employee retention increased by 9%, driven by the strategies mentioned above. Our operational structure has grown, with each department increasing in size, and several internal promotions, including members from our successful apprenticeship programme. Within operations, we continue future proofing and succession planning through a focus on developing our teams and promoting internally. We have seen recent success in promoting team members from cleaning, housekeeping, or administration roles to supervisory or management positions. Our Carbon Zero programme is progressing well, with an expected full accreditation by the end of the 2024/25 financial year. We've transitioned all vehicles to electric or hybrid, adopted fully renewable energy tariffs, and completed installation of a solar array at HQ which we estimate will generate up to 50% of our power requirements.
Key Performance Indicators The Board regularly reviews key operational and financial metrics, including gross margin, debtor days, and cash reserves. We also monitor client and staff retention, health and safety standard, HR performance, and ESG deliverables. For 2023/24, we exceeded our KPIs in all these areas and highlight key metrics below:
2024 2023 Change
£ £ £
Sales Revenue (£) 14,373,498 11,776,935 2,596,563
Gross Profit (£) 3,155,029 2,337,095 817,934
Gross Profit Margin (%) 22 20 2
Net Trading Profit (£) 677,789 349,066 301,880
Net Trading Profit Margin (%) 5 3 2
Summary The Board is optimistic about the future. AIM Commercial Cleaning achieved steady revenue growth despite operational challenges. We believe the cleaning sector will continue to thrive across the UK, and AIM is well-positioned to capitalise on market opportunities as an SME. We remain committed to reinvesting in the business for growth. With our unique culture, expertise, and passion for excellence, we are confident in achieving consistent double-digit growth into 2024/25 and beyond. The Board thanks all employees, clients and partners for their continued support, which contributes to AIM's ongoing success.
Principal Risks and Uncertainties Short-term Risks: 1. Recruitment Shortages: A significant shortage of candidates in the hospitality and services sector. 2. Changing Client Needs: Agile working and remote strategies have changed client cleaning requirements. 3. Inflation: Rising labour and material costs. To address recruitment shortages, we've adapted by offering longer shifts, improved benefits such as the 'Real Living Wage', and have invested in a company-wide recognition and benefit programme, supported by a wellbeing platform. Furthermore, our mobile support division pools trained staff to ensure flexibility and prompt response to client needs. We continue to manage rising costs through a dedicated purchasing team focused on obtaining best-value, sustainable, and ethical products. We maintain open discussions with clients on cost increases, fostering collaboration to find commercially viable solutions. Long-term Risks: 1. Reputation Risk: Mitigated by closely monitoring client and employee satisfaction levels. 2. Financial Risk: Managed through strong credit management and adequate cash reserves. 3. Health & Safety: Ensured through comprehensive training, protective clothing, and eco-friendly products.
This report was approved by the board of directors on 20 May 2025 and signed on behalf of the board by:
Mr A Sullivan
Director
AIM COMMERCIAL CLEANING LIMITED
DIRECTORS' REPORT
YEAR ENDED 31 MARCH 2024
The directors present their report and the financial statements of the company for the year ended 31 March 2024 .
Directors
The directors who served the company during the year were as follows:
Mr J Brown
Mr S Brown
Mr A Sullivan
Mr K Odetayo
Dividends
Particulars of recommended dividends are detailed in note 11 to the financial statements.
Employment of disabled persons
The Company is committed to a policy of equal opportunity with regards to its employment practices and procedures. This includes giving full and fair consideration to applications for employment by the company made by disabled persons, having regard to their particular aptitudes and abilities. Disabled persons employed by the Company are provided suitable training enabling them to develop their career and obtain promotion with the organisation.
Employee involvement
During the year, the policy of providing employees with information about the company has continued through internal media methods in which employees have been encouraged to present their suggestions and views on the Company's performance. Regular meeting are held between local management and employees to allow a free flow of information and ideas.
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 20 May 2025 and signed on behalf of the board by:
Mr A Sullivan
Director
AIM COMMERCIAL CLEANING LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF AIM COMMERCIAL CLEANING LIMITED
YEAR ENDED 31 MARCH 2024
Opinion
We have audited the financial statements of AIM Commercial Cleaning Limited (the 'company') for the year ended 31 March 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 March 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 gross assets and revenue and has been assessed at the levels of £62,000 and £144,000. The key risk areas were considered to be - Threat of management override of controls - Compliance with Employment and Minimum Wage laws - Completeness and recognition of income - Occurrence, accuracy, completeness and cut off of payroll The appropriate audit approach was considered and the following audit work applied to these areas: - Our audit work to test management override involved reviewing journals throughout the year to confirm reasonableness as well as various discussions with management during the audit. - Our audit work in respect of compliance with employee laws involved selecting a sample of employees confirming evidence of right to work in the UK and ensuring that their respective pay levels were in line minimum wage legislation for the period. - Our audit work in respect of income included agreeing a sample of sales contracts through to the sales invoices raised, confirming these had been correctly allocated to the sales and nominal ledgers as well as reviewing sales invoices raised around the year end to confirm that all income had been recorded in the correct period. - Our audit work to test payroll involved a proof in total to confirm wages and salaries per the payroll reports agreed to the financial statements, tracing a sample of employees to identification and personnel records, recalculation of tax due for a chosen month for a sample of employees and a review of wages postings for a chosen month to confirm accuracy of postings to correct period. We performed substantive testing to identify any large fluctuations or significant and unexpected losses which may indicate risk of material misstatements due to fraud. We reviewed the financial statement disclosures and assessed compliance with the following relevant laws and regulations: - Companies Act 2006 - Data Protection Act 2018. - Health and Safety Legislations - Employment & Right to Work Laws - Environmental Laws - Minimum Wage Laws 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.
Other matters
In the previous accounting period, the company was eligible for audit exemption under section 477 of the Companies Act 2006. Therefore, the prior period financial statements were not subject to 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
20 May 2025
AIM COMMERCIAL CLEANING LIMITED
STATEMENT OF COMPREHENSIVE INCOME
YEAR ENDED 31 MARCH 2024
2024
2023
Note
£
£
Turnover
4
14,373,498
11,776,935
Cost of sales
11,218,469
9,439,840
-------------
-------------
Gross profit
3,155,029
2,337,095
Administrative expenses
2,504,083
1,988,029
------------
------------
Operating profit
5
650,946
349,066
Other interest receivable and similar income
29,555
Interest payable and similar expenses
9
2,712
747
------------
------------
Profit before taxation
677,789
348,319
Tax on profit
10
170,254
66,876
---------
---------
Profit for the financial year and total comprehensive income
507,535
281,443
---------
---------
All the activities of the company are from continuing operations.
AIM COMMERCIAL CLEANING LIMITED
STATEMENT OF FINANCIAL POSITION
31 March 2024
2024
2023
Note
£
£
£
Fixed assets
Tangible assets
12
6,371
381,698
Current assets
Stocks
13
12,032
13,805
Debtors
14
2,836,046
2,540,831
Cash at bank and in hand
3,348,435
2,949,453
------------
------------
6,196,513
5,504,089
Creditors: amounts falling due within one year
15
3,325,708
3,507,355
------------
------------
Net current assets
2,870,805
1,996,734
------------
------------
Total assets less current liabilities
2,877,176
2,378,432
Creditors: amounts falling due after more than one year
16
12,463
22,848
Provisions
Taxation including deferred tax
18
1,593
------------
------------
Net assets
2,863,120
2,355,584
------------
------------
Capital and reserves
Called up share capital
21
167,818
167,817
Profit and loss account
2,695,302
2,187,767
------------
------------
Shareholders funds
2,863,120
2,355,584
------------
------------
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 20 May 2025 , and are signed on behalf of the board by:
Mr A Sullivan
Director
Company registration number: 01427132
AIM COMMERCIAL CLEANING LIMITED
STATEMENT OF CHANGES IN EQUITY
YEAR ENDED 31 MARCH 2024
Called up share capital
Profit and loss account
Total
£
£
£
At 1 April 2022
167,817
2,142,900
2,310,717
Profit for the year
281,443
281,443
---------
------------
------------
Total comprehensive income for the year
281,443
281,443
Dividends paid and payable
11
( 236,576)
( 236,576)
---------
------------
------------
Total investments by and distributions to owners
( 236,576)
( 236,576)
At 31 March 2023
167,817
2,187,767
2,355,584
Profit for the year
507,535
507,535
---------
------------
------------
Total comprehensive income for the year
507,535
507,535
Issue of shares
1
1
----
----
----
Total investments by and distributions to owners
1
1
---------
------------
------------
At 31 March 2024
167,818
2,695,302
2,863,120
---------
------------
------------
AIM COMMERCIAL CLEANING LIMITED
STATEMENT OF CASH FLOWS
YEAR ENDED 31 MARCH 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
507,535
281,443
Adjustments for:
Depreciation of tangible assets
2,124
14,128
Other interest receivable and similar income
( 29,555)
Interest payable and similar expenses
2,712
747
Gains on disposal of tangible assets
( 3,096)
Tax on profit
170,254
66,876
Accrued expenses
143,835
292,816
Changes in:
Stocks
1,773
4,995
Trade and other debtors
( 295,215)
( 595,119)
Trade and other creditors
209,236
101,967
---------
---------
Cash generated from operations
712,699
164,757
Interest paid
( 2,712)
( 747)
Interest received
29,555
Tax paid
( 69,671)
( 95,093)
---------
---------
Net cash from operating activities
669,871
68,917
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 8,495)
Proceeds from sale of tangible assets
3,096
Transfer of property to holding company
381,698
---------
---------
Net cash from investing activities
373,203
3,096
---------
---------
Cash flows from financing activities
Proceeds from issue of ordinary shares
1
Proceeds from loans from group undertakings
549,758
Repayments of loans from group undertakings
( 634,799)
Payments of finance lease liabilities
( 9,294)
32,142
Dividends paid
( 236,576)
---------
---------
Net cash (used in)/from financing activities
( 644,092)
345,324
---------
---------
Net increase in cash and cash equivalents
398,982
417,337
Cash and cash equivalents at beginning of year
2,949,453
2,532,116
------------
------------
Cash and cash equivalents at end of year
3,348,435
2,949,453
------------
------------
AIM COMMERCIAL CLEANING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
YEAR ENDED 31 MARCH 2024
1. General information
The company is a private company limited by shares, registered in England & Wales. The address of the registered office is 12 Hatherley Road, Sidcup, Kent, DA14 4DT, England.
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. If any impairments exist the debtors are remeasured to the present value of the expected future cash inflows.
Creditors
Creditors are initially recorded at fair value and then remeasure to the present value of the expected cash outflows.
Judgements and key sources of estimation uncertainty
There are no significant estimates or assumptions made that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Turnover is shown net of value added tax, returns, rebates and discounts. Revenue is recognised for the rendering of services by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expense recognised will be be recovered. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
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
-
15% reducing balance
Fixtures and fittings
-
15% reducing balance
Motor vehicles
-
25% straight line
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.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell.
Finance leases and hire purchase contracts
Assets, obtained under hire purchase contracts and finance leases, are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period. Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account on a straight line basis.
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
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2024
2023
£
£
Rendering of services
14,373,498
11,776,935
-------------
-------------
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:
2024
2023
£
£
Depreciation of tangible assets
2,124
14,128
Gains on disposal of tangible assets
( 3,096)
Impairment of trade debtors
4,300
22,588
-------
--------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
15,595
--------
----
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Production staff
794
766
Administrative staff
37
37
----
----
831
803
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
10,151,633
8,064,853
Social security costs
528,308
405,138
Other pension costs
127,600
85,058
-------------
------------
10,807,541
8,555,049
-------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
696,262
252,052
Company contributions to defined contribution pension plans
5,500
1,200
---------
---------
701,762
253,252
---------
---------
The number of directors who accrued benefits under company pension plans was as follows:
2024
2023
No.
No.
Defined contribution plans
2
2
----
----
Remuneration of the highest paid director in respect of qualifying services:
2024
2023
£
£
Aggregate remuneration
215,975
120,079
---------
---------
9. Interest payable and similar expenses
2024
2023
£
£
Interest on obligations under finance leases and hire purchase contracts
2,712
747
-------
----
10. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
167,855
68,865
Adjustments in respect of prior periods
806
---------
--------
Total current tax
168,661
68,865
---------
--------
Deferred tax:
Origination and reversal of timing differences
1,593
( 1,989)
---------
--------
Tax on profit
170,254
66,876
---------
--------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 19 %).
2024
2023
£
£
Profit on ordinary activities before taxation
677,789
348,319
---------
---------
Profit on ordinary activities by rate of tax
169,448
66,181
Adjustment to tax charge in respect of prior periods
806
Effect of capital allowances and depreciation
( 1,593)
2,684
Effect of deferred tax movements in the year
1,593
( 1,989)
---------
---------
Tax on profit
170,254
66,876
---------
---------
11. Dividends
2024
2023
£
£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )
236,576
----
---------
12. Tangible assets
Land and buildings
Motor vehicles
Total
£
£
£
Cost
At 1 April 2023
503,040
503,040
Additions
8,495
8,495
Transfers
( 503,040)
( 503,040)
---------
-------
---------
At 31 March 2024
8,495
8,495
---------
-------
---------
Depreciation
At 1 April 2023
121,342
121,342
Charge for the year
2,124
2,124
Transfers
( 121,342)
( 121,342)
---------
-------
---------
At 31 March 2024
2,124
2,124
---------
-------
---------
Carrying amount
At 31 March 2024
6,371
6,371
---------
-------
---------
At 31 March 2023
381,698
381,698
---------
-------
---------
13. Stocks
2024
2023
£
£
Raw materials and consumables
12,032
13,805
--------
--------
14. Debtors
2024
2023
£
£
Trade debtors
2,758,759
2,499,219
Prepayments and accrued income
77,286
41,612
Other debtors
1
------------
------------
2,836,046
2,540,831
------------
------------
15. Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
287,266
407,336
Amounts owed to group undertakings
627,959
1,262,758
Accruals and deferred income
567,151
423,316
Corporation tax
167,855
68,865
Social security and other taxes
901,892
690,786
Obligations under finance leases and hire purchase contracts
10,385
9,294
Other creditors
763,200
645,000
------------
------------
3,325,708
3,507,355
------------
------------
16. Creditors: amounts falling due after more than one year
2024
2023
£
£
Obligations under finance leases and hire purchase contracts
12,463
22,848
--------
--------
17. 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
9,294
9,294
Later than 1 year and not later than 5 years
13,554
22,848
--------
--------
22,848
32,142
--------
--------
18. Provisions
Deferred tax (note 19)
£
At 1 April 2023
Additions
1,593
-------
At 31 March 2024
1,593
-------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 18)
1,593
-------
----
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
1,593
-------
----
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 122,100 (2023: £ 83,858 ).
21. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
A shares of £ 1 each
155,565
155,565
155,565
155,565
B shares of £ 1 each
12,252
12,252
12,252
12,252
C shares of £ 1 each
1
1
---------
---------
---------
---------
167,818
167,818
167,817
167,817
---------
---------
---------
---------
22. Analysis of changes in net debt
At 1 Apr 2023
Cash flows
At 31 Mar 2024
£
£
£
Cash at bank and in hand
2,949,453
398,982
3,348,435
Debt due within one year
(1,272,052)
633,708
(638,344)
Debt due after one year
(22,848)
10,385
(12,463)
------------
------------
------------
1,654,553
1,043,075
2,697,628
------------
------------
------------
23. Charges on assets
There is a fixed and floating charge held by Lloyds TSB Commercial Finance Limited over the undertaking and all property and assets present and future including goodwill bookdebts uncalled capital buildings fixtures fixed plant and machinery.
There is also a first fixed charge held by Lloyds TSB Commercial Finance Limited on all book and other debts under an agreement dated 13/8/99, floating charge on all proceeds of book and other debts under or in connection with any agreement or contract for the sale and purchase of debts or under or in connection with any bill of exchange or other negotiable instrument.
24. Related party transactions
During the year payments were made to the following companies for consultancy fees: SIA Services Limited - £86,166 Coffers Limited - £8,900 These companies are related as a director from this company is also a director of the above companies .
25. Controlling party
The company's ultimate parent company is AIM House Investments Limited registered in England. The ultimate controlling party is Mr J Brown , a director. Copies of the consolidated financial statements can be obtained from Numeric House, 98 Station Road, Sidcup, Kent, DA15 7BY.