Company registration number 07252278 (England and Wales)
CITYSIDE ELECTRICAL CO LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
CITYSIDE ELECTRICAL CO LTD
COMPANY INFORMATION
Directors
Mr Lee Compton
Mr Duncan McArthur
Secretary
Mr Duncan McArthur
Company number
07252278
Registered office
1st Floor
25 Camperdown Street
London
England
E1 8DZ
Auditor
HJS Accountants Limited
Tagus House
9 Ocean Way
Southampton
Hampshire
United Kingdom
SO14 3TJ
CITYSIDE ELECTRICAL CO LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Profit and loss account
11
Group statement of comprehensive income
12
Group balance sheet
13
Company balance sheet
14
Group statement of changes in equity
15
Company statement of changes in equity
16
Group statement of cash flows
17
Company statement of cash flows
18
Notes to the financial statements
19 - 36
CITYSIDE ELECTRICAL CO LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -
The Directors present the strategic report for the year ended 30 September 2024.
The group has continued to operate within the Data Centre, Life Science, Commercial Offices and Hotel and Leisure sectors.
Review of the business
Cityside Electrical Co Limited operates in the competitive construction industry, providing high-quality Mechanical and Electrical solutions across various market sectors. In 2024, the group demonstrated positive financial performance, marked by significant revenue growth, which reflects strong market demand and effective business operations.
The group has been active in sectors including Data Centres, Life Sciences, Commercial Offices, Hotels and Leisure, and Rail. Turnover has increased to £323 million, with a gross margin of over 11%. We maintain strong relationships with our existing clients, comprising main contractors and end-users in London, as well as from our regional office in Cambridge, established in 2023. This investment in the regional office has allowed us to diversify into a new market, delivering the same high-quality engineering solutions in and around Cambridge that we have provided in London for the past 94 years.
The group’s European business successfully completed its first project in the financial year ending September 2024, which included data centre fit-out projects in the Netherlands. The business collaborated with a well-established UK client of the Parent Company to ensure that the quality of the Phoenix installation matched the high standards typically associated with the group.
The ongoing growth and investment within the data centre sector in the European market present opportunities for the group. Previous experience in the European market has equipped the group to deliver projects that meet the high standards that underpin the group’s core values. The group has now established a subsidiary in Norway to support the delivery of a significant Data Centre.
Throughout the 2024 financial year, the group and the industry faced challenges due to the administration of several companies, notably the high-profile downfall of ISG, a significant client at the time. However, the courage and togetherness that define our core values facilitated early re-engagement with end clients on active projects. As a result, the impact of ISG's administration was minimised. All live projects during administration have since been re-engaged under new contracts with either end users or alternative main contractors. The financial implications have been fully accounted for in the financial statements for the year ending September 30, 2024.
The reduction in gross margin on the previous year's financial statements is primarily due to irrecoverable debts from the ISG administration, specifically old retentions and defect liability period debts from recently completed projects.
The group is entering the new year with its largest secured order book, totalling £800 million. This substantial order book is expected to drive revenue towards an impressive over £400 million turnover for 2025. Demand in the targeted market sectors remains steady, contributing to continued growth and profitability for the business in the coming financial years. This forward orderbook represents further growth in the UK market, continuing work in the Netherlands and a sizeable Data Centre in Norway.
Market diversification, efficient cost control, effective pricing strategies, and a commitment to innovation provide stability within the forward order book margins. This indicates a positive forecast for the year ending September 2025.
CITYSIDE ELECTRICAL CO LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Principal risks and uncertainties
We continue to be selective with our customer base and also maintain our policy to credit insure against insolvency.
A thorough quality assurance process is undertaken for all companies that the group trade with to ensure risk and uncertainty is avoided throughout.
Cashflow and liquidity of the business are monitored at a project and group level on a regular basis, with any risks and uncertainty addressed when identified.
Financial risk management objectives and policies
A strict policy of the group is to closely monitor the performance of each project so that we have sight of any emerging risks very early. Each project is reviewed in detail monthly by the Directors to ensure that we mitigate any unexpected risks as they occur.
Key performance indicators
Forward Orderbook secured September 2024 of £800m
Average staff number up to 458 from 388
Staff retention rate of 90%
Accident Frequency Rate down to 0.65 from 0.67
Turnover Growth:
Profitability:
Gross profit increased from £25.0m in 2023 to £37.5m in 2024.
Operating profit improved from £6.0m to £15.8m, indicating better cost management within the administrative expenses.
Net profit after tax rose from £4.7m in 2023 to £11.4m in 2024, a 244.5% increase.
Cost Management:
Cost of sales increased by 96% to £285.1m, which is in line with the turnover growth.
Administrative expenses increased by 121% to £23.3m, suggesting controlled overhead costs.
Asset Growth:
Total assets increased to £128.5m from £85.2m in 2023.
Cash at bank improved significantly from £14.1m to £30.2m, enhancing liquidity.
Liabilities Management:
Short-term liabilities rose to £80.8m from £49.0m, reflecting business expansion.
Long-term liabilities slightly decreased from £1.3m to £1.0m.
Equity Growth:
Section 172 Statement
Section 172 of the Companies Act 2006 requires that the directors act in a way that they consider to be in good faith, would be most likely to promote the success of the group for the for the benefit of its shareholders and in doing so have regard to:
• The likely consequences of any decision in the long term;
• The interests of the Group’s employees;
• The need to foster the Group’s business relationships with suppliers, customers and others;
• The impact of the Group’s operations on the community and the environment;
• The desire of the group to maintain a reputation for high standards of business conduct;
• The need to act fairly between members of the Group
The Directors have complied with these requirements. A regular strategic board meeting is held with all key decisions taken with a view to the long term health of the Group. The group regards the satisfaction and retention of staff, clients and suppliers as a key factor in the continued success of the Group, with decisions being taken that consider the views of all of these stakeholders.
CITYSIDE ELECTRICAL CO LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -
Mr Duncan McArthur
Director
25 June 2025
CITYSIDE ELECTRICAL CO LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -
The Directors present their annual report and financial statements for the year ended 30 September 2024.
Principal activities
The principle activity of the group is Mechanical and Electrical Engineering and Construction Services. Our main work sectors are Commercial, Data Centres, Education, Public sector and some Residential schemes.
Results and dividends
The results for the year are set out on page 11.
No interim dividend was paid. The directors do not recommend payment of a final dividend.
Directors
The Directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr Lee Compton
Mr Duncan McArthur
Research and development
The group has carried out innovative energy and cost saving engineering for mechanical and electrical design which has resulted in R&D tax credits. At the time of signing the accounts the R&D claim for 2024 is not finalised so has been omitted.
Disabled persons
Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.
Employee involvement
The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.
Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.
Future developments
The group will continue to invest in growing sales through it’s existing customer base and exploring new customers.
Auditor
The auditors, HJS Accountants Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting
CITYSIDE ELECTRICAL CO LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
Energy and carbon report
2024
2023
Energy consumption
kWh
kWh
Aggregate of energy consumption in the year
- Gas combustion
235,912
220,793
- Electricity purchased
202,637
187,386
- Fuel consumed for transport
59,416
651,029
497,965
1,059,208
2024
2023
Emissions of CO2 equivalent
metric tonnes
metric tonnes
Scope 1 - direct emissions
- Gas combustion
43.15
40.39
- Fuel consumed for owned transport
9.53
23.58
52.68
63.97
Scope 2 - indirect emissions
- Electricity purchased
43.10
41.27
Scope 3 - other indirect emissions
- Fuel consumed for transport not owned by the group
7.05
132.24
Total gross emissions
102.83
237.48
Intensity ratio
Tonnes CO2e per £m turnover
0.32
1.42
Quantification and reporting methodology
Our report includes scope 1 and scope 2 measures for our head office, Cambridge office and our warehouse.
For this year’s SECR report the group have employed an external consultant to help aid the calculation of carbon emissions. The group has also accounted this year for the renewable energy that is procured for the London office, the carbon emissions are therefore reported for both location-based and market-based.
Intensity measurement
The financial year turnover was £323m giving relative emissions of 0.32tCO2e/£m turnover.
Measures taken to improve energy efficiency
The following actions have been taken in order to improve energy and carbon savings:
Ensure aircon and space heater put on appropriate timers
Introduced PIR lighting
Ensured all lighting/heating/aircon are turned off when the storage room is not in use
Ensured skylights are regularly cleaned to allow natural lighting in the storage room
CITYSIDE ELECTRICAL CO LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
On behalf of the board
Mr Duncan McArthur
Director
25 June 2025
CITYSIDE ELECTRICAL CO LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 7 -
The Directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the Directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
CITYSIDE ELECTRICAL CO LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CITYSIDE ELECTRICAL CO LTD
- 8 -
Opinion
We have audited the financial statements of Cityside Electrical Co Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 30 September 2024 and of the group's 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.
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 group and parent 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 group's and parent 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The Directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
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.
CITYSIDE ELECTRICAL CO LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CITYSIDE ELECTRICAL CO LTD
- 9 -
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company 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 parent 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 parent company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
The capability of the audit in detecting irregularities, including fraud. 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.
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to breaches of UK regulatory principles, such as Employment Law and Health & Safety regulations. We also considered the laws and regulations which have a direct impact on the financial statements such as the Companies Act 2006.
We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to management bias in accounting estimates and judgmental areas of the financial statements.
Audit procedures performed by the audit engagement team included:
Discussions with senior management, including consideration of known or suspected instances of noncompliance with laws and regulations or instances of fraud;
Identifying and testing journal entries based on risk criteria;
Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;
Testing transactions entered into outside of the normal course of the company's business;
Reviewing any potential litigation or claims against the entity which indicate any potential noncompliance issues.
CITYSIDE ELECTRICAL CO LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CITYSIDE ELECTRICAL CO LTD
- 10 -
There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or though collusion.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
Angela Trainor (Senior Statutory Auditor)
For and on behalf of HJS Accountants Limited, Statutory Auditor
Chartered Accountants
Tagus House
9 Ocean Way
Southampton
Hampshire
SO14 3TJ
United Kingdom
25 June 2025
CITYSIDE ELECTRICAL CO LTD
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£ 000's
£ 000's
Turnover
3
322,577
170,383
Cost of sales
(285,057)
(145,405)
Gross profit
37,520
24,978
Administrative expenses
(23,325)
(19,223)
Other operating income
1,250
-
Operating profit
4
15,445
5,755
Interest receivable and similar income
8
389
198
Interest payable and similar expenses
9
(2)
Profit before taxation
15,834
5,951
Tax on profit
10
(4,399)
(1,275)
Profit for the financial year
11,435
4,676
Profit for the financial year is all attributable to the owner of the parent company.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
CITYSIDE ELECTRICAL CO LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 12 -
2024
2023
£ 000's
£ 000's
Profit for the year
11,435
4,676
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
Total comprehensive income for the year
11,435
4,676
Total comprehensive income for the year is all attributable to the owner of the parent company.
CITYSIDE ELECTRICAL CO LTD
GROUP BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 13 -
2024
2023
Notes
£ 000's
£ 000's
£ 000's
£ 000's
Fixed assets
Goodwill
12
845
1,441
Tangible assets
13
58
159
903
1,600
Current assets
Stocks
17
91
91
Debtors falling due after more than one year
18
1,122
3,330
Debtors falling due within one year
18
97,089
67,632
Cash at bank and in hand
30,168
14,141
128,470
85,194
Creditors: amounts falling due within one year
19
(80,507)
(49,049)
Net current assets
47,963
36,145
Total assets less current liabilities
48,866
37,745
Creditors: amounts falling due after more than one year
20
(1,005)
(1,304)
Provisions for liabilities
21
(21)
(21)
Net assets
47,840
36,420
Capital and reserves
Called up share capital
23
8
8
Equity reserve
(45)
(30)
Capital redemption reserve
2
2
Profit and loss reserves
47,875
36,440
Total equity
47,840
36,420
The financial statements were approved by the board of directors and authorised for issue on 25 June 2025 and are signed on its behalf by:
25 June 2025
Mr Duncan McArthur
Director
CITYSIDE ELECTRICAL CO LTD
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 14 -
2024
2023
Notes
£ 000's
£ 000's
£ 000's
£ 000's
Fixed assets
Investments
14
30,073
30,073
30,073
30,073
Current assets
Debtors
18
1,292
8,184
Cash at bank and in hand
908
748
2,200
8,932
Creditors: amounts falling due within one year
19
(2,390)
(9,284)
Net current liabilities
(190)
(352)
Net assets
29,883
29,721
Capital and reserves
Called up share capital
23
8
8
Capital redemption reserve
2
2
Profit and loss reserves
29,873
29,711
Total equity
29,883
29,721
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £162,000 (2023 - £565,000 profit).
The financial statements were approved by the board of directors and authorised for issue on 25 June 2025 and are signed on its behalf by:
25 June 2025
Mr Duncan McArthur
Director
Company registration number 07252278 (England and Wales)
CITYSIDE ELECTRICAL CO LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
Share capital
Equity reserve
Capital redemption reserve
Profit and loss reserves
Total
Notes
£ 000's
£ 000's
£ 000's
£ 000's
£ 000's
Balance at 1 October 2022
8
2
32,244
32,254
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
-
4,676
4,676
Dividends
11
-
-
-
(480)
(480)
Other movements
-
(30)
-
-
(30)
Balance at 30 September 2023
8
(30)
2
36,440
36,420
Year ended 30 September 2024:
Profit and total comprehensive income for the year
-
-
-
11,435
11,435
Other movements
-
(15)
-
-
(15)
Balance at 30 September 2024
8
(45)
2
47,875
47,840
CITYSIDE ELECTRICAL CO LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£ 000's
£ 000's
£ 000's
£ 000's
Balance at 1 October 2022
8
2
29,626
29,636
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
-
565
565
Dividends
11
-
-
(480)
(480)
Balance at 30 September 2023
8
2
29,711
29,721
Year ended 30 September 2024:
Profit and total comprehensive income
-
-
162
162
Balance at 30 September 2024
8
2
29,873
29,883
CITYSIDE ELECTRICAL CO LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
2024
2023
Notes
£ 000's
£ 000's
£ 000's
£ 000's
Cash flows from operating activities
Cash generated from/(absorbed by) operations
29
12,692
(11,280)
Interest paid
(2)
Income taxes paid
(3,431)
(1,149)
Net cash inflow/(outflow) from operating activities
9,261
(12,431)
Investing activities
Purchase of tangible fixed assets
-
(77)
Proceeds from disposal of investments
-
2,000
Repayment of loans
6,378
(729)
Interest received
389
198
Net cash generated from investing activities
6,767
1,392
Financing activities
Dividends paid to equity shareholders
(480)
Net cash used in financing activities
-
(480)
Net increase/(decrease) in cash and cash equivalents
16,028
(11,519)
Cash and cash equivalents at beginning of year
14,140
25,659
Cash and cash equivalents at end of year
30,168
14,140
CITYSIDE ELECTRICAL CO LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
2024
2023
Notes
£ 000's
£ 000's
£ 000's
£ 000's
Cash flows from operating activities
Cash (absorbed by)/generated from operations
30
(6,739)
7,510
Interest paid
(2)
Income taxes paid
(66)
Net cash (outflow)/inflow from operating activities
(6,739)
7,442
Investing activities
Repayment of loans
6,893
(6,930)
Interest received
6
Net cash generated from/(used in) investing activities
6,899
(6,930)
Financing activities
Dividends paid to equity shareholders
-
(480)
Net cash used in financing activities
-
(480)
Net increase in cash and cash equivalents
160
32
Cash and cash equivalents at beginning of year
748
716
Cash and cash equivalents at end of year
908
748
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 19 -
1
Accounting policies
Company information
Cityside Electrical Co Ltd (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1st Floor, 25 Camperdown Street, London, England, E1 8DZ.
The group consists of Cityside Electrical Co Ltd and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.
Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Cityside Electrical Co Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 30 September 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -
Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.
If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.
Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.
1.4
Going concern
At the time of approving the financial statements, the Directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.5
Turnover
Construction contracts
Revenue is derived from construction contracts.
Contract revenue is measured at the fair value of the consideration received or receivable and includes the initial amount of revenue agreed in the contract, plus variations, claims and incentive payments to the extent that it is probable that they will result in revenue and they are capable of being measured reliably. Revenue is stated net of discounts, VAT and other sales related taxes.
Interest income
Interest income is accrued on a time basis in accordance with the effective interest rate method.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.7
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
25% straight line and reducing balance
Computers
33% straight line
Motor vehicles
25% straight line and reducing balance
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.8
Fixed asset investments
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.
Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.
Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.
In the parent company financial statements, investments in associates are accounted for at cost less impairment.
Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.
1.9
Impairment of fixed assets
Tangible fixed assets are reviewed annually by the directors for impairment. Any impairment is taken to the profit and loss account.
1.10
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.11
Construction contracts
When the outcome of a construction contract can be estimated reliably, contract revenue and costs are recognised by reference to the degree of completion of each contract, as measured by quantity surveyors.
Incentive payments and variations arising from construction contracts are included where they have been agreed with the client.
When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable these costs will be recoverable.
The principal estimation technique used by the company in attributing profit on contracts to a particular period is the preparation of forecasts on a contract by contract basis. These focus on revenues and costs to complete and enable an assessment to be made of the final out turn of each contract. Consistent contract review procedures are in place in respect of contract forecasting.
When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised immediately. Contract costs are recognised as expenses in the period within which they have incurred.
Where costs incurred plus recognised profits less recognised losses exceed progress billings, the balance is shown as due from customers on construction contracts within trade and other receivables. Where progress billings exceed costs incurred plus recognised profits less recognised losses, the balance is shown as due to customers on construction contracts within trade and other payables.
1.12
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.13
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 23 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 24 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
1.14
Equity instruments
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
1.15
Derivatives
Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.
1.16
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.17
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 25 -
1.18
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.19
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
1.20
Foreign exchange
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
1.21
Research expenditure is written off to the statement of financial position in the year in which it is incurred. Development expenditure is written off in the same way unless the directors are satisfied as to the technical, commercial and financial viability of individual projects. In this situation, the expenditure is deferred and amortised over the period during which the company is expected to benefit.
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Construction contracts
The main area of estimation uncertainty are the construction contracts. Firstly profit is only recognised when the outcome of the project can be reliably estimated. There is uncertainty here that the outcome is incorrectly considered to be profitable.
Secondly when the project outcome can be reliably estimated the stage of completion is based on the billing to date and costs are recognised in order to include profit at the forecast overall margin on the job. There is some uncertainty over estimating future costs and any additional work or extras which may occur.
3
Turnover and other revenue
An analysis of the group's turnover is as follows:
2024
2023
£ 000's
£ 000's
Turnover analysed by class of business
Electrical engineering
322,577
170,383
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
3
Turnover and other revenue
(Continued)
- 26 -
2024
2023
£ 000's
£ 000's
Turnover analysed by geographical market
UK
304,387
170,383
Europe
18,190
-
322,577
170,383
2024
2023
£ 000's
£ 000's
Other revenue
Interest income
389
198
4
Operating profit
2024
2023
£ 000's
£ 000's
Operating profit for the year is stated after charging/(crediting):
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
37
(2)
Depreciation of owned tangible fixed assets
101
158
Amortisation of intangible assets
596
600
Operating lease charges
939
1,287
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£ 000's
£ 000's
For audit services
Audit of the financial statements of the group and company
20
19
Audit of the financial statements of the company's subsidiaries
45
43
65
62
For other services
All other non-audit services
20
19
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Contracting
400
334
-
-
Admin
58
54
-
-
Total
458
388
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£ 000's
£ 000's
£ 000's
£ 000's
Wages and salaries
47,196
31,162
Social security costs
5,493
3,883
-
13
Pension costs
2,025
1,498
54,714
36,543
13
7
Directors' remuneration
2024
2023
£ 000's
£ 000's
Remuneration for qualifying services
6,525
3,516
Company pension contributions to defined contribution schemes
26
33
6,551
3,549
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£ 000's
£ 000's
Remuneration for qualifying services
2,521
1,113
Company pension contributions to defined contribution schemes
-
4
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 28 -
8
Interest receivable and similar income
2024
2023
£ 000's
£ 000's
Interest income
Interest on bank deposits
389
198
2024
2023
Investment income includes the following:
£ 000's
£ 000's
Interest on financial assets not measured at fair value through profit or loss
389
198
9
Interest payable and similar expenses
2024
2023
£ 000's
£ 000's
Other finance costs:
Other interest
-
2
10
Taxation
2024
2023
£ 000's
£ 000's
Current tax
UK corporation tax on profits for the current period
2,940
1,891
Adjustments in respect of prior periods
(4)
(583)
Total UK current tax
2,936
1,308
Foreign current tax on profits for the current period
1,463
Total current tax
4,399
1,308
Deferred tax
Origination and reversal of timing differences
(33)
Total tax charge
4,399
1,275
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Taxation
(Continued)
- 29 -
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£ 000's
£ 000's
Profit before taxation
15,834
5,951
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.00%)
3,959
1,369
Tax effect of expenses that are not deductible in determining taxable profit
374
42
Tax effect of income not taxable in determining taxable profit
486
Adjustments in respect of prior years
(4)
(583)
Effect of change in corporation tax rate
-
(29)
Depreciation on assets not qualifying for tax allowances
23
Other permanent differences
(1,393)
(33)
Effect of overseas tax rates
1,463
Taxation charge
4,399
1,275
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£ 000's
£ 000's
Final paid
-
480
12
Intangible fixed assets
Group
Goodwill
£ 000's
Cost
At 1 October 2023 and 30 September 2024
5,965
Amortisation and impairment
At 1 October 2023
4,524
Amortisation charged for the year
596
At 30 September 2024
5,120
Carrying amount
At 30 September 2024
845
At 30 September 2023
1,441
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
12
Intangible fixed assets
(Continued)
- 30 -
More information on impairment movements in the year is given in note .
13
Tangible fixed assets
Group
Fixtures and fittings
Computers
Motor vehicles
Total
£ 000's
£ 000's
£ 000's
£ 000's
Cost
At 1 October 2023 and 30 September 2024
392
348
89
829
Depreciation and impairment
At 1 October 2023
312
316
42
670
Depreciation charged in the year
68
11
22
101
At 30 September 2024
380
327
64
771
Carrying amount
At 30 September 2024
12
21
25
58
At 30 September 2023
80
32
47
159
The company had no tangible fixed assets at 30 September 2024 or 30 September 2023.
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£ 000's
£ 000's
£ 000's
£ 000's
Investments in subsidiaries
15
30,073
30,073
Movements in fixed asset investments
Company
Shares in subsidiaries
£ 000's
Cost or valuation
At 1 October 2023 and 30 September 2024
30,073
Carrying amount
At 30 September 2024
30,073
At 30 September 2023
30,073
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
15
Subsidiaries
Details of the company's subsidiaries at 30 September 2024 are as follows:
Name of undertaking
Address
Class of
% Held
shares held
Direct
Indirect
Phoenix ME Limited
1
Ordinary
100.00
-
Phoenixtrescray Ltd
1
Ordinary
0
100.00
Phoenix ME (Europe) Limited
2
Ordinary
0
100.00
Registered office addresses (all UK unless otherwise indicated):
1
First Floor, 25 Camperdown Street, London, England, E1 8DZ
2
29 Earslfort Terrace, Dublin 2, Ireland
16
Joint ventures
Details of joint ventures at 30 September 2024 are as follows:
Name of undertaking
Registered office
Interest
% Held
held
Direct
Indirect
Price Phoenix HS2 JV Limited
Central House, 25 Camperdown Street, London, England, E1 8DZ
Ordinary
0
50.00
17
Stocks
Group
Company
2024
2023
2024
2023
£ 000's
£ 000's
£ 000's
£ 000's
Finished goods and goods for resale
91
91
18
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£ 000's
£ 000's
£ 000's
£ 000's
Trade debtors
28,768
27,022
Gross amounts owed by contract customers
47,844
25,780
Other debtors
19,367
14,178
1,292
8,184
Prepayments and accrued income
1,110
652
97,089
67,632
1,292
8,184
Amounts falling due after more than one year:
Trade debtors
1,122
3,330
Total debtors
98,211
70,962
1,292
8,184
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 32 -
19
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£ 000's
£ 000's
£ 000's
£ 000's
Trade creditors
51,842
17,684
Amounts owed to group undertakings
1,577
8,562
Corporation tax payable
2,675
1,707
215
161
Other taxation and social security
3,568
1,682
598
561
Other creditors
5,086
422
Accruals and deferred income
17,336
27,554
80,507
49,049
2,390
9,284
Included within trade creditors are retentions held totalling £7,077,834 (2023 - £5,081,014 ).
20
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
£ 000's
£ 000's
£ 000's
£ 000's
Trade creditors
1,005
1,304
Included within trade creditors due in more than one year is retentions held totalling £1,004,738 (2023 - £1,304,109).
21
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
Liabilities
Liabilities
2024
2023
Group
£ 000's
£ 000's
Accelerated capital allowances
21
21
The company has no deferred tax assets or liabilities.
There were no deferred tax movements in the year.
The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£ 000's
£ 000's
Charge to profit or loss in respect of defined contribution schemes
2,025
1,498
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
There were contributions of £344,186 (2023: £269,601) owed to the scheme at the balance sheet date.
23
Share capital
Group and company
2024
2023
Ordinary share capital
£ 000's
£ 000's
Issued and fully paid
7,800 Ordinary of £1 each
8
8
The company has one class of ordinary shares which carry no right to fixed income.
24
Financial commitments, guarantees and contingent liabilities
The company is party to a cross guarantee as security for the bank borrowings of the group.
The bank has a fixed and floating charge over the investments, property and assets of Cityside Electrical Co Ltd, Phoenix ME Limited and PhoenixTrescray Ltd.
25
Operating lease commitments
Lessee
At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
Group
Company
2024
2023
2024
2023
£ 000's
£ 000's
£ 000's
£ 000's
Within one year
780
611
-
-
Between two and five years
658
920
-
-
In over five years
48
-
-
-
1,486
1,531
-
-
Operating lease payments represent rentals payable by the company for its office premises and storage facilities.
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 34 -
26
Related party transactions
Remuneration of key management personnel
The remuneration of key management personnel is as follows.
2024
2023
£ 000's
£ 000's
Aggregate compensation
6,552
4,067
Transactions with related parties
During the year the group entered into the following transactions with related parties:
Sale of services
2024
2023
£ 000's
£ 000's
Group
Entities over which key management has control, joint control or significant influence
880
78
The following amounts were outstanding at the reporting end date:
Amounts due from related parties
2024
2023
Balance
Balance
£ 000's
£ 000's
Group
Entities over which key management has control, joint control or significant influence
12,944
5,110
Other information
The company has taken advantage of the exemption available under FRS 102 paragraph 33.1a whereby it has not disclosed transactions with any wholly owned subsidiary undertaking of the group.
27
Controlling party
The ultimate controlling party is that of the director, Mr L Compton, due to his majority shareholding.
28
Directors' transactions
Dividends totalling £nil (2023 - £480,000) were paid in the year in respect of shares held by the company's directors.
Advances or credits have been granted by the group to its directors as follows:
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 35 -
29
Cash generated from/(absorbed by) group operations
2024
2023
£ 000's
£ 000's
Profit for the year after tax
11,435
4,676
Adjustments for:
Taxation charged
4,399
1,275
Finance costs
2
Investment income
(389)
(198)
Amortisation and impairment of intangible assets
596
600
Depreciation and impairment of tangible fixed assets
101
158
Movements in working capital:
Increase in debtors
(33,641)
(7,293)
Increase/(decrease) in creditors
30,191
(10,500)
Cash generated from/(absorbed by) operations
12,692
(11,280)
30
Cash (absorbed by)/generated from operations - company
2024
2023
£ 000's
£ 000's
Profit after taxation
162
565
Adjustments for:
Taxation charged
54
159
Finance costs
2
Investment income
(6)
Movements in working capital:
Increase in debtors
(1)
(49)
(Decrease)/increase in creditors
(6,948)
6,833
Cash (absorbed by)/generated from operations
(6,739)
7,510
31
Analysis of changes in net funds - group
1 October 2023
Cash flows
30 September 2024
£ 000's
£ 000's
£ 000's
Cash at bank and in hand
14,140
16,028
30,168
CITYSIDE ELECTRICAL CO LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 36 -
32
Analysis of changes in net funds - company
1 October 2023
Cash flows
30 September 2024
£ 000's
£ 000's
£ 000's
Cash at bank and in hand
748
160
908
33
Contingent asset
During the financial year ending 30 September 2023 one of the the companies in the group made an insurance claim, at the time of signing the financial statements for the year ended 30 September 2024, the claim had not yet been finalised and no funds on account had been received, discussions with the insurance company continued into 2024. During the year £1.25 million was received in relation to this claim. The directors believe the the claim should be in excess of £2 million and that it will be settled in the next financial year.
As noted in the directors report, one of the the companies in the group is working with R&D specialists to finalise the 2024 R&D claim. At the time of signing the financial statements the value of the R&D claim cannot be quantified but the specialists have confirmed that the company has a justified claim. Funds are expected to be received during the next financial year.
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