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COMPANY REGISTRATION NUMBER: 04536293
Vision Commercial Kitchens Limited
Financial Statements
30 September 2024
Vision Commercial Kitchens Limited
Financial Statements
Year ended 30 September 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
5
Independent auditor's report to the members
7
Statement of income and retained earnings
11
Statement of financial position
12
Statement of cash flows
13
Notes to the financial statements
14
Vision Commercial Kitchens Limited
Officers and Professional Advisers
The board of directors
J. P. Sharkey
P. J. P. Shea
Registered office
Unit A1
Axis Point
Hill Top Road
Heywood
Lancashire
OL10 2RQ
Auditor
Hill Eckersley & Co
Chartered accountants & statutory auditor
No 1 Pavilion Square
Cricketers Way
Westhoughton
Bolton
BL5 3AJ
Bankers
National Westminster
10 Yorkshire Street
Oldham
Lancashire
OL1 1QT
Vision Commercial Kitchens Limited
Strategic Report
Year ended 30 September 2024
The directors present their strategic report for the year ended 30 September 2024. Business review and principal activities Vision Commercial Kitchens Limited continues to be a leading national provider in the design, supply, installation, and after-sales service of commercial kitchens , including capital replacement equipment. The company's profit for the financial year, before taxation, is £914,934 (2023: £1,148,624). Whilst this represents a reduction from the previous year, it reflects continued strong performance within a challenging economic environment. The business secured and successfully delivered a number of high-profile projects across a broad range of market sectors. Notable examples include the Co-op Live Arena and the Old War Office Hotel. A significant proportion of the annual turnover is generated from repeat business, referrals, and client recommendations, reflecting our reputation for consistent, high-quality service delivery. The company maintains its competitive advantage through ongoing investment in its systems, processes and people, positioning it at the forefront of industry innovation. Future outlook The company operates across multiple sectors including education, healthcare, hospitality, hotels, and retail, providing a balanced and resilient portfolio. Although turnover has softened slightly, strong management and operational flexibility have resulted in improved margins. Ongoing investment in both our people and systems will remain a core priority throughout the next financial year, supporting our strategy for sustainable growth. The business will continue to explore and enter new market sectors where viable opportunities align with our capabilities and strategic direction. While 2025 is expected to present continued challenges, including inflationary pressures and elevated energy costs impacting our client base, the directors remain confident in the business's ability to maintain revenue performance. Competitive pressures are anticipated to increase, but the company's robust financial standing, reputation and strategic agility ensure it is well-positioned to capitalise on future opportunities. Principal risks and uncertainties The company is subject to a number of inherent business risks, including:- Inflationary pressures across labour and materials - Increased market competition - Tariff and import cost volatility - Talent retention challenges - Fluctuations within the construction and hospitality sectors We continuously monitor macroeconomic and geopolitical developments, including the ongoing impact of global conflicts and economic instability. The company actively manages these risks by maintaining strong relationships with clients, suppliers, and employees, and by ensuring flexibility within our commercial and operational strategies. The directors are confident that appropriate risk mitigation measures are in place to ensure continued stability and performance. Financial instruments and financial risk management The company is exposed to typical financial risks such as credit, interest rate, and liquidity risk, particularly within the hospitality sector. However, our diversified client base and integrated service model mitigate these exposures. The company does not engage in speculative financial instruments or hedging activities. Key performance indicators The Directors pro-actively manage the business by way of a number of Key Performance Indicators relating to past/current performance and forward forecasts to identify trends and further opportunities for improvement. The Directors consider their Key Performance Indicators to be; 2024 2023 2022 Gross Profit Percentage 24.00% 20.65% 21.33% Operating Margin Percentage 5.13% 5.84% 7.40% Current Ratio 1.32 1.24 1.16 Shareholders Funds £2,416k £2,209k £1,531k
This report was approved by the board of directors on 24 June 2025 and signed on behalf of the board by:
J. P. Sharkey
Director
Registered office:
Unit A1
Axis Point
Hill Top Road
Heywood
Lancashire
OL10 2RQ
Vision Commercial Kitchens Limited
Directors' Report
Year ended 30 September 2024
The directors present their report and the financial statements of the company for the year ended 30 September 2024 .
Directors
The directors who served the company during the year were as follows:
J. P. Sharkey
P. J. P. Shea
Dividends
Particulars of recommended dividends are detailed in note 12 to the financial statements.
Disclosure of information in the strategic report
The company has chosen in accordance with s414C(11) Companies Act 2006, to set out its company's strategic report information required by schedule 7 of the Large and Medium sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors report. It has done so in respect of future developments and financial instruments.
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. The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. 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 24 June 2025 and signed on behalf of the board by:
J. P. Sharkey
Director
Registered office:
Unit A1
Axis Point
Hill Top Road
Heywood
Lancashire
OL10 2RQ
Vision Commercial Kitchens Limited
Independent Auditor's Report to the Members of Vision Commercial Kitchens Limited
Year ended 30 September 2024
Opinion
We have audited the financial statements of Vision Commercial Kitchens Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of income and retained earnings, statement of financial position, 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 30 September 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: Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: -the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; -we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the commercial kitchen installation sector; -we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, specifically health and safety legislation; -we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and -identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: -making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and -considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. To address the risk of fraud through management bias and override of controls, we: -tested journal entries to identify unusual transactions; -assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and -investigated the rationale behind significant or unusual transactions. In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: -inquiring of management as to actual and potential litigation and claims; and -reviewing correspondence with the company’s legal advisors. There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to inquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. 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.
Andrew M Nicholls FCA
(Senior Statutory Auditor)
For and on behalf of
Hill Eckersley & Co
Chartered accountants & statutory auditor
No 1 Pavilion Square
Cricketers Way
Westhoughton
Bolton
BL5 3AJ
24 June 2025
Vision Commercial Kitchens Limited
Statement of Income and Retained Earnings
Year ended 30 September 2024
2024
2023
Note
£
£
Turnover
4
17,755,507
19,531,966
Cost of sales
13,494,635
15,499,441
-------------
-------------
Gross profit
4,260,872
4,032,525
Administrative expenses
3,349,534
2,891,079
------------
------------
Operating profit
5
911,338
1,141,446
Other interest receivable and similar income
9
34,216
19,329
Interest payable and similar expenses
10
30,620
12,151
------------
------------
Profit before taxation
914,934
1,148,624
Tax on profit
11
236,133
237,928
---------
------------
Profit for the financial year and total comprehensive income
678,801
910,696
---------
------------
Dividends paid and payable
12
( 471,900)
( 232,600)
Retained earnings at the start of the year
2,109,140
1,431,044
------------
------------
Retained earnings at the end of the year
2,316,041
2,109,140
------------
------------
All the activities of the company are from continuing operations.
Vision Commercial Kitchens Limited
Statement of Financial Position
30 September 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
13
1,112,202
725,216
Current assets
Stocks
14
550,319
307,881
Debtors
15
4,457,723
5,657,807
Cash at bank and in hand
2,484,959
3,147,659
------------
------------
7,493,001
9,113,347
Creditors: amounts falling due within one year
16
5,696,059
7,349,803
------------
------------
Net current assets
1,796,942
1,763,544
------------
------------
Total assets less current liabilities
2,909,144
2,488,760
Creditors: amounts falling due after more than one year
17
462,781
250,013
Provisions
Taxation including deferred tax
18
30,322
29,607
------------
------------
Net assets
2,416,041
2,209,140
------------
------------
Capital and reserves
Called up share capital
21
50,000
50,000
Capital redemption reserve
22
50,000
50,000
Profit and loss account
22
2,316,041
2,109,140
------------
------------
Shareholders funds
2,416,041
2,209,140
------------
------------
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 24 June 2025 , and are signed on behalf of the board by:
J. P. Sharkey
P. J. P. Shea
Director
Director
Company registration number: 04536293
Vision Commercial Kitchens Limited
Statement of Cash Flows
Year ended 30 September 2024
2024
2023
£
£
Cash flows from operating activities
Profit for the financial year
678,801
910,696
Adjustments for:
Depreciation of tangible assets
60,497
47,792
Other interest receivable and similar income
( 34,216)
( 19,329)
Interest payable and similar expenses
30,620
12,151
Tax on profit
236,133
237,928
Accrued expenses/(income)
356,328
( 529,126)
Changes in:
Stocks
( 242,438)
83,560
Trade and other debtors
1,200,084
420,548
Trade and other creditors
( 2,067,899)
330,518
------------
------------
Cash generated from operations
217,910
1,494,738
Interest paid
( 30,620)
( 12,151)
Interest received
34,216
19,329
Tax paid
( 229,573)
( 227,873)
---------
------------
Net cash (used in)/from operating activities
( 8,067)
1,274,043
---------
------------
Cash flows from investing activities
Purchase of tangible assets
( 447,483)
( 55,939)
---------
------------
Net cash used in investing activities
( 447,483)
( 55,939)
---------
------------
Cash flows from financing activities
Proceeds from borrowings
400,084
Repayments of borrowings
( 135,334)
( 102,195)
Dividends paid
( 471,900)
( 232,600)
---------
------------
Net cash used in financing activities
( 207,150)
( 334,795)
---------
------------
Net (decrease)/increase in cash and cash equivalents
( 662,700)
883,309
Cash and cash equivalents at beginning of year
3,147,659
2,264,350
------------
------------
Cash and cash equivalents at end of year
2,484,959
3,147,659
------------
------------
Vision Commercial Kitchens Limited
Notes to the Financial Statements
Year ended 30 September 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Unit A1, Axis Point, Hill Top Road, Heywood, Lancashire, OL10 2RQ.
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.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: Income recognition The company uses the percentage-of-completion method to account for its contract revenue. The stage of completion is measured by reference to the contract costs incurred to date compared to the estimated total costs for the contract. Significant assumptions are required to estimate the total contract costs and the recoverable variation works that affect the stage of completion and the contract revenue respectively. In making these estimates, management has relied on past experience and the experience of its project managers. Recoverability of receivables Management reviews its loans and receivables for objective evidence of impairment at each month end. Significant financial difficulties of the debtor, the probability that the debtor will enter bankruptcy, and default or significant delay in payments are considered objective evidence that a receivable is impaired. In determining this, management makes judgement as to whether there is observable data indicating that there has been a significant change in the payment ability of the debtor, or whether there have been significant changes with adverse effect in the market, economic or legal environment in which the debtor operates in. Where there is objective evidence of impairment, management makes judgements as to whether an impairment loss should be recorded as an expense. In determining this, management uses estimates based on historical loss experience for assets with similar credit risk characteristics. The methodology and assumptions used for estimating both the amount and timing of future cash flows are reviewed regularly to reduce any differences between the estimated loss and actual loss experience.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, usually on despatch of the goods, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably. Where the outcome of construction contracts can be reliably estimated, contract revenue and contract costs are recognised by reference to the stage of completion of the contract activity as at the period end. Where the outcome of construction contracts cannot be estimated reliably, revenue is recognised to the extent of contract costs incurred that it is probable will be recoverable, and contract costs are recognised as an expense in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is expensed immediately, with a corresponding provision for an onerous contract being recognised. The entity uses the percentage of completion method to determine the amounts to be recognised in the period. The stage of completion is measured by reference to the contract costs incurred up to the end of the reporting period as a percentage of total estimated costs for each contract. Costs incurred for work performed to date do not include costs relating to future activity, such as for materials or prepayments. 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.
Foreign currencies
Foreign currency transactions are initially recorded in the functional currency, by applying the spot exchange rate as at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the exchange rate ruling at the reporting date, with any gains or losses being taken to the profit and loss account.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
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 & equipment
-
33% straight line
Fixtures & fittings
-
10% - 33% 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. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
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
A financial asset or a financial liability is recognised only when the entity becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
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
1,618,182
1,609,395
Construction contracts
16,137,325
17,922,571
-------------
-------------
17,755,507
19,531,966
-------------
-------------
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
60,497
47,792
Impairment of trade debtors
(3,324)
47,301
Foreign exchange differences
5,339
( 4,790)
--------
--------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
10,750
9,500
--------
-------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Administrative staff
51
47
Management staff
4
4
----
----
55
51
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
2,187,071
1,881,028
Social security costs
238,208
200,759
Other pension costs
172,743
140,049
------------
------------
2,598,022
2,221,836
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
25,124
24,785
Company contributions to defined contribution pension plans
38,471
35,190
--------
--------
63,595
59,975
--------
--------
9. Other interest receivable and similar income
2024
2023
£
£
Interest on cash and cash equivalents
34,216
19,329
--------
--------
10. Interest payable and similar expenses
2024
2023
£
£
Interest on banks loans and overdrafts
30,620
12,151
--------
--------
11. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
235,418
255,549
Adjustments in respect of prior periods
( 25,976)
---------
---------
Total current tax
235,418
229,573
---------
---------
Deferred tax:
Origination and reversal of timing differences
715
1,645
Impact of change in tax rate
6,710
----
-------
Total deferred tax
715
8,355
---------
---------
Tax on profit
236,133
237,928
---------
---------
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 25 %).
2024
2023
£
£
Profit on ordinary activities before taxation
914,934
1,148,624
---------
------------
Profit on ordinary activities by rate of tax
228,734
287,156
Adjustment to tax charge in respect of prior periods
( 25,976)
Effect of expenses not deductible for tax purposes
4,879
1,069
Effect of capital allowances and depreciation
2,520
3,708
Effect of different UK tax rates on some earnings
(28,029)
---------
------------
Tax on profit
236,133
237,928
---------
------------
12. Dividends
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year):
2024
2023
£
£
Dividends on equity shares
471,900
232,600
---------
---------
13. Tangible assets
Land and buildings
Plant and machinery
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 October 2023
812,479
148,205
240,894
1,201,578
Additions
398,025
21,463
27,995
447,483
Disposals
( 10,496)
( 5,048)
( 15,544)
------------
---------
---------
------------
At 30 September 2024
1,210,504
159,172
263,841
1,633,517
------------
---------
---------
------------
Depreciation
At 1 October 2023
227,494
105,264
143,604
476,362
Charge for the year
19,519
25,500
15,478
60,497
Disposals
( 10,496)
( 5,048)
( 15,544)
------------
---------
---------
------------
At 30 September 2024
247,013
120,268
154,034
521,315
------------
---------
---------
------------
Carrying amount
At 30 September 2024
963,491
38,904
109,807
1,112,202
------------
---------
---------
------------
At 30 September 2023
584,985
42,941
97,290
725,216
------------
---------
---------
------------
14. Stocks
2024
2023
£
£
Finished goods and goods for resale
550,319
307,881
---------
---------
15. Debtors
2024
2023
£
£
Trade debtors
3,637,913
4,770,865
Prepayments and accrued income
588,716
517,164
Directors loan account
20,000
20,000
Other debtors
211,094
349,778
------------
------------
4,457,723
5,657,807
------------
------------
16. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
156,982
105,000
Trade creditors
3,881,221
5,983,510
Accruals and deferred income
1,182,754
826,426
Corporation tax
235,418
229,573
Social security and other taxes
121,061
186,784
Other creditors
118,623
18,510
------------
------------
5,696,059
7,349,803
------------
------------
17. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
462,781
250,013
---------
---------
The Company's bank loan is secured against the Freehold Property.
The company has a loan agreement which is repayable over 180 months. The loan will be repaid in April 2039. Interest is charged on the loan at 3.75% above Base rate.
18. Provisions
Deferred tax (note 19)
£
At 1 October 2023
29,607
Additions
715
--------
At 30 September 2024
30,322
--------
19. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 18)
30,322
29,607
--------
--------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
30,322
29,607
--------
--------
20. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 172,743 (2023: £ 140,049 ).
The pension liability outstanding at the year end, included within accruals, is £ 27.925 (2023: £ 429 ).
21. Called up share capital
Authorised share capital
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
100,000
100,000
100,000
100,000
---------
---------
---------
---------
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
50,000
50,000
50,000
50,000
--------
--------
--------
--------
22. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses . Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company.
23. Analysis of changes in net debt
At 1 Oct 2023
Cash flows
At 30 Sep 2024
£
£
£
Cash at bank and in hand
3,147,659
(662,700)
2,484,959
Debt due within one year
(105,000)
(51,982)
(156,982)
Debt due after one year
(250,013)
(212,768)
(462,781)
------------
---------
------------
2,792,646
( 927,450)
1,865,196
------------
---------
------------
24. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
90,762
70,608
Later than 1 year and not later than 5 years
141,690
119,671
---------
---------
232,452
190,279
---------
---------
25. Directors' advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
Balance brought forward and outstanding
2024
2023
£
£
J. P. Sharkey
10,000
10,000
P. J. P. Shea
10,000
10,000
--------
--------
20,000
20,000
--------
--------
Loans to Directors are repayable on demand. No interest has been charged on the loans.
26. Controlling party
The company was not under the control of any one individual throughout the current or previous year.