Company registration number 01112562 (England and Wales)
J. HOPKINS (CONTRACTORS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
J. HOPKINS (CONTRACTORS) LIMITED
COMPANY INFORMATION
Director
Mr N C Hopkins
Secretary
Mrs M C Hopkins
Company number
01112562
Registered office
Westinghouse Road
Trafford Park
Manchester
M17 1LP
Auditor
MHA
80 Mosley Street
Manchester
M2 3FX
J. HOPKINS (CONTRACTORS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 25
J. HOPKINS (CONTRACTORS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 1 -
The director presents the strategic report for the year ended 31 October 2024.
Review of the business
The main activities of the company continued to be structural highway maintenance, civil engineering and the extraction and sale of recycled aggregate.
2024 was a year of consolidation and concentrating on improving operational performance rather than growth. Although turnover for the year was down marginally at £28,216k (2023: £28,501k), gross profit was up 22% at £4,732k (2023: £3,873k) as the business restructured it’s delivery models for contracts and brought more of its delivery in house. The net result was operating profit increased 52% to £1,171k (2023: £768k) while closing cash for the year increased 13% to £1,395k (2023: £1,232k).
The process of monitoring operational performance and improving profitability while delivering value for money to our clients will continue for 2025.
The director is pleased to report an operating profit of £1,171k (2023: £768k).
Principal risks and uncertainties
The director is aware of the need to provide a quality service to the customer base at a competitive price and will manage the impact of such risks without eroding the company’s competitive position.
Price risk
Material costs have the potential to increase with short notice and as such a policy is adopted to recover these costs increases as soon as practical through the various contract mechanisms. The Company will maintain it's competitive position by mitigating these where possible with tight cost controls.
Credit risk
Credit risk is the risk of financial loss to the company if a customer fails to meet its contractual obligations of payment. Customers are assessed for financial reliability using external rating agencies.
Liquidity risk
Liquidity risk arises from the company's management of working capital and the finance charges and principal repayments on its debt instruments. It is the risk that the company will encounter difficulty in meeting its financial obligations as they fall due.
At the end of the financial year, cash flow projections indicate that the company expects to have sufficient liquid resources to meet its obligations under all reasonably expected circumstances.
Development and performance
Its people continue to be a key factor in the success of the business and the director will ensure the business has the necessary talent, with the appropriate training and skills sets, to deliver it's strategy whilst maintaining its focus on health, safety and customer service.
Key performance indicators
The key performance indicators used by the director to monitor the business are as follows:
2024 2023
Turnover: £28.2m £28.5m
Gross profit %: 16.7% 13.6%
Net current assets: £11.3m £11.2m
J. HOPKINS (CONTRACTORS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 2 -
Future developments
The director expects 2025 to be a year of steady growth as the business targets new geographical areas and clients.
Mr N C Hopkins
Director
30 June 2025
J. HOPKINS (CONTRACTORS) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 3 -
The director presents his annual report and financial statements for the year ended 31 October 2024.
Principal activities
The principal activity of the company continued to be that of structural highway maintenance, civil engineering and the extraction and sale of recycled aggregate.
Results and dividends
The results for the year are set out on page 8.
Ordinary dividends were paid amounting to £85,000. The director does not recommend payment of a further dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
Mr N C Hopkins
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of fair review of business, principle risks and uncertainties.
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 company’s auditor is unaware. Additionally, the director has individually have taken all the necessary steps that they ought to have taken as a director in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mr N C Hopkins
Director
30 June 2025
J. HOPKINS (CONTRACTORS) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 OCTOBER 2024
- 4 -
The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
J. HOPKINS (CONTRACTORS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF J. HOPKINS (CONTRACTORS) LIMITED
- 5 -
Opinion
We have audited the financial statements of J. Hopkins (Contractors) Limited (the 'company') for the year ended 31 October 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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 company's affairs as at 31 October 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is 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.
J. HOPKINS (CONTRACTORS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF J. HOPKINS (CONTRACTORS) LIMITED (CONTINUED)
- 6 -
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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
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 director's report.
Matters on which we are required to report by exception
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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines 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 director is responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
Auditor 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, is detailed below:
enquiries with management, about any known or suspected instances of non-compliance with laws and regulations or fraud within the business;
challenging assumptions and judgements made by management in their key accounts estimates;
auditing the risk of management override of controls, including thorough testing journal entries and other adjustments made by management for appropriateness;
reviewing board minutes and legal and professional expenditure to identify any evidence of ongoing litigation or enquiries; and
auditing the risk of fraud and management override of revenue by incorporating data analytics into our sampling of source entries and testing specific transactions to determine the completeness of revenue.
J. HOPKINS (CONTRACTORS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF J. HOPKINS (CONTRACTORS) LIMITED (CONTINUED)
- 7 -
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including
those leading to a material misstatement in the financial statements or non-compliance with regulation. This
risk increases the more that compliance with a law or regulation is removed from the events and transactions
reflected in the financial statements, as we will be less likely to become aware of instances of noncompliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 member 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 member those matters we are required to state to the member 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 member, for our audit work, for this report, or for the opinions we have formed.
Lee Van Houplines FCA
Senior Statutory Auditor
For and on behalf of MHA, Statutory Auditor
Manchester, United Kingdom
30 June 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
J. HOPKINS (CONTRACTORS) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 OCTOBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
28,215,591
28,501,942
Cost of sales
(23,483,493)
(24,628,160)
Gross profit
4,732,098
3,873,782
Administrative expenses
(3,560,919)
(3,105,577)
Operating profit
4
1,171,179
768,205
Interest receivable and similar income
21,279
3,862
Interest payable and similar expenses
7
(182,771)
(221,939)
Profit before taxation
1,009,687
550,128
Tax on profit
8
(295,472)
(140,609)
Profit for the financial year
714,215
409,519
The profit and loss account has been prepared on the basis that all operations are continuing operations.
J. HOPKINS (CONTRACTORS) LIMITED
BALANCE SHEET
AS AT 31 OCTOBER 2024
31 October 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
10
2,766
Tangible assets
11
4,761,903
4,033,331
4,761,903
4,036,097
Current assets
Stocks
12
253,932
201,248
Debtors falling due after more than one year
13
417,568
474,722
Debtors falling due within one year
13
17,444,408
17,750,167
Cash at bank and in hand
1,395,958
1,232,692
19,511,866
19,658,829
Creditors: amounts falling due within one year
14
(8,226,620)
(8,424,964)
Net current assets
11,285,246
11,233,865
Total assets less current liabilities
16,047,149
15,269,962
Creditors: amounts falling due after more than one year
15
(1,136,923)
(1,210,843)
Provisions for liabilities
Deferred tax liability
18
1,117,033
895,141
(1,117,033)
(895,141)
Net assets
13,793,193
13,163,978
Capital and reserves
Called up share capital
20
1,000
1,000
Profit and loss reserves
13,792,193
13,162,978
Total equity
13,793,193
13,163,978
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved and signed by the director and authorised for issue on 30 June 2025
Mr N C Hopkins
Director
Company registration number 01112562 (England and Wales)
J. HOPKINS (CONTRACTORS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 November 2022
1,000
12,819,959
12,820,959
Year ended 31 October 2023:
Profit and total comprehensive income
-
409,519
409,519
Dividends
9
-
(66,500)
(66,500)
Balance at 31 October 2023
1,000
13,162,978
13,163,978
Year ended 31 October 2024:
Profit and total comprehensive income
-
714,215
714,215
Dividends
9
-
(85,000)
(85,000)
Balance at 31 October 2024
1,000
13,792,193
13,793,193
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
- 11 -
1
Accounting policies
Company information
J. Hopkins (Contractors) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Westinghouse Road, Trafford Park, Manchester, M17 1LP.
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 £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of JHC Acquisitions Limited. These consolidated financial statements are available from Companies House, Crown Way, Cardiff, CF14 3UZ.
1.2
Going concern
Based on the current trading and future expectations, the director is confident that the company will continue to trade profitably in future periods and generate sufficient cash flows to meet it's obligations as they fall due for payment.true
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 12 -
1.3
Turnover
The turnover shown in the profit or loss account represents amounts invoiced during the year, exclusive of Value Added Tax. In the case of long term contracts, turnover represents the sales value of work done during the year, including estimates in respect of amounts not invoiced.
Profits on long term contracts is taken as the work is carried out, if the final outcome can be assessed with reasonable certainty. The profit is calculated on a prudent basis to reflect the proportion of the work carried out by the year end by recording turnover and related costs as contract activity progresses.Turnover is calculated as that proportion of total contract revenue which costs incurred to date bear to total expected costs for that contract. Revenue derived variations on contracts is only recognised when they have been accepted by the customers. Full provision is made for losses on all contracts in the year which they are first foreseen.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.
Amortisation 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:
Software
33.3% reducing balance
1.5
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:
Plant and equipment
15% reducing balance
Office equipment
33.3% reducing balance
Motor vehicles
25% 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 credited or charged to profit or loss.
1.6
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
1.7
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 13 -
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.
1.8
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.
Where 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 that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.
The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
1.9
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.
1.10
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 14 -
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.
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 company 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 15 -
1.11
Equity instruments
Equity instruments issued by the company 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 company.
1.12
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 company’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 when the company has 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.
1.13
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.
1.14
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
1
Accounting policies
(Continued)
- 16 -
1.15
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
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 leases asset are consumed.
1.16
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.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the director is 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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Long term contracts
The director makes judgements as to whether the final outcome on long term contracts can be assessed with reasonable certainty before profits are calculated.
The director also makes judgements as to the amount of profit that is calculated on long term contracts such that it prudently reflects the proportion of the work carried out by the year end by recording turnover and related costs as contract activity progresses.
AROC/Trade debtors recoverability
Amounts recoverable on contracts/trade debtors are initially measured at the transaction price and subsequently measured at amortised cost being the transaction price less any amounts settled and any impairment losses. The director make estimates as to the recoverability of these debts and provides for them accordingly.
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 17 -
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Provision of contractual asphalt works
26,291,631
26,291,761
Sale of recycled materials
1,633,504
1,819,195
AMT Labour income
215,050
211,920
Other
75,406
179,066
28,215,591
28,501,942
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
17,920
17,110
Depreciation of owned tangible fixed assets
320,178
260,629
Depreciation of tangible fixed assets held under finance leases
512,970
596,201
Loss/(profit) on disposal of tangible fixed assets
24,284
(58,257)
Amortisation of intangible assets
2,766
10,145
Operating lease charges
244,683
238,883
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Production
67
63
Administrative
7
11
Total
74
74
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
3,269,764
3,187,513
Social security costs
366,575
347,332
Pension costs
79,756
65,068
3,716,095
3,599,913
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 18 -
6
Director's remuneration
2024
2023
£
£
Remuneration for qualifying services
10,905
42,418
Company pension contributions to defined contribution schemes
15,600
15,600
26,505
58,018
The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).
7
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
83,580
121,818
Interest on finance leases and hire purchase contracts
93,775
91,109
Other interest
5,416
9,012
182,771
221,939
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
73,580
124,466
Adjustments in respect of prior periods
(3,077)
Total current tax
73,580
121,389
Deferred tax
Origination and reversal of timing differences
221,892
17,557
Changes in tax rates
1,964
Adjustment in respect of prior periods
(301)
Total deferred tax
221,892
19,220
Total tax charge
295,472
140,609
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
8
Taxation
(Continued)
- 19 -
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
£
£
Profit before taxation
1,009,687
550,128
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.48%)
252,422
123,691
Tax effect of expenses that are not deductible in determining taxable profit
43,050
24,983
Tax effect of income not taxable in determining taxable profit
(6,651)
Adjustments in respect of prior years
(3,378)
Effect of change in corporation tax rate
1,964
Taxation charge for the year
295,472
140,609
9
Dividends
2024
2023
£
£
Final paid
85,000
66,500
10
Intangible fixed assets
Software
£
Cost
At 1 November 2023
6,890
Disposals
(6,890)
At 31 October 2024
Amortisation and impairment
At 1 November 2023
4,124
Amortisation charged for the year
2,766
Disposals
(6,890)
At 31 October 2024
Carrying amount
At 31 October 2024
At 31 October 2023
2,766
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 20 -
11
Tangible fixed assets
Plant and equipment
Office equipment
Motor vehicles
Total
£
£
£
£
Cost
At 1 November 2023
5,996,751
76,098
3,014,170
9,087,019
Additions
1,176,741
7,746
579,377
1,763,864
Disposals
(486,649)
(4,633)
(491,282)
At 31 October 2024
6,686,843
79,211
3,593,547
10,359,601
Depreciation and impairment
At 1 November 2023
3,321,373
48,632
1,683,683
5,053,688
Depreciation charged in the year
412,994
10,539
409,615
833,148
Eliminated in respect of disposals
(288,645)
(493)
(289,138)
At 31 October 2024
3,445,722
58,678
2,093,298
5,597,698
Carrying amount
At 31 October 2024
3,241,121
20,533
1,500,249
4,761,903
At 31 October 2023
2,675,378
27,466
1,330,487
4,033,331
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2024
2023
£
£
Plant and equipment
1,775,709
1,604,272
Motor vehicles
914,349
1,006,027
2,690,058
2,610,299
12
Stocks
2024
2023
£
£
Raw materials and consumables
253,932
201,248
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 21 -
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
2,359,176
3,115,121
Gross amounts owed by contract customers
3,000,126
3,357,349
Corporation tax recoverable
187,107
Amounts owed by group undertakings
10,459,037
10,079,137
Other debtors
1,367,587
751,179
Prepayments and accrued income
258,482
260,274
17,444,408
17,750,167
2024
2023
Amounts falling due after more than one year:
£
£
Other debtors
417,568
474,722
Total debtors
17,861,976
18,224,889
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
250,000
Obligations under finance leases
17
807,722
689,400
Debt factoring balances
16
901,836
751,706
Trade creditors
5,056,938
4,749,082
Amounts owed to group undertakings
1
Corporation tax
73,580
121,389
Other taxation and social security
630,740
768,939
Other creditors
21,563
271,812
Accruals and deferred income
734,240
822,636
8,226,620
8,424,964
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
69,167
Obligations under finance leases
17
1,136,923
1,141,676
1,136,923
1,210,843
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 22 -
16
Loans and overdrafts
2024
2023
£
£
Bank loans
319,167
Debt factoring balances
901,836
751,706
901,836
1,070,873
Payable within one year
901,836
1,001,706
Payable after one year
69,167
Debt factoring balances are secured against debtors.
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
807,722
689,400
In two to five years
1,136,923
1,141,676
1,944,645
1,831,076
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
1,120,707
898,027
Short term timing differences
(3,674)
(2,886)
1,117,033
895,141
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
18
Deferred taxation
(Continued)
- 23 -
2024
Movements in the year:
£
Liability at 1 November 2023
895,141
Charge to profit or loss
221,892
Liability at 31 October 2024
1,117,033
As at the signing date of these financial statements, the company has not finalised its capital expenditure programme for the forthcoming year and therefore an assessment as to the likely movement of other related timing differences cannot be made.
19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
79,756
65,068
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
20
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 1p each
100,000
100,000
1,000
1,000
The shares have full voting, dividend and capital distribution rights. They do not confer any rights of redemption
21
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
229,167
244,683
Between two and five years
229,167
229,167
473,850
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
- 24 -
22
Capital commitments
Amounts contracted for but not provided in the financial statements:
2024
2023
£
£
Acquisition of tangible fixed assets
4,728,000
804,618
23
Related party transactions
The following amounts were outstanding at the reporting end date:
2024
2023
Amounts due from related parties
£
£
Other related parties
19,514
-
This balance relates to an entity under common control. In addition, during the year income and expenditure of this entity was received / incurred by the company, and then recharged onto this related party. No income or expenditure have been recognised in these accounts from this related party, but income of £163,891 was received and then recharged, and expenditure of £161,151 was incurred and then recharged.
Other information
The company has taken advantage of the exemption permitted under Section 33 'Related Party Disclosures' paragraph 33.1A from disclosing transactions with the parent and fellow subsidiary companies.
24
Directors' transactions
The directors loan account was overdrawn at the year end. No interest has been charged on the loan.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors' loan account
-
70,050
83,165
(139,550)
13,665
70,050
83,165
(139,550)
13,665
25
Ultimate controlling party
The immediate parent undertaking of the company is J Hopkins (Contractors) Holdings Limited, a company incorporated in England & Wales.
J. HOPKINS (CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 OCTOBER 2024
25
Ultimate controlling party
(Continued)
- 25 -
The smallest and largest group of which J. Hopkins (Contractors) Limited is a member and for which consolidated financial statements are produced is JHC Acquisitions Limited. The consolidated financial statements of JHC Acquisitions Limited are available to the public from Companies House.
The registered office of JHC Acquisitions Limited is Westinghouse Road, Trafford Park, Manchester, England, M17 1LP.
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