Company registration number 00159161 (England and Wales)
PALMERS SCAFFOLDING UK LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
PALMERS SCAFFOLDING UK LIMITED
COMPANY INFORMATION
Directors
Mr C C Butt
Mr M Carr
Mr A C Butt
Company number
00159161
Registered office
Business Aviation Centre
Aviation Park
Flint Road
Saltney Ferry
Chester
CH4 0GZ
Auditor
JS. Audit Limited
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
PALMERS SCAFFOLDING UK LIMITED
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 24
PALMERS SCAFFOLDING UK LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

The profit for the financial year after taxation amounted to £3,970,280 (2023: £2,658,725).

 

The company has achieved another exceptional year of trading and has once again surpassed the budget which was put into place for 2024 in both turnover and net profit. This is despite some very challenging conditions and competition in the marketplace.

 

A budget has once again been set for 2025 which shows further growth in margin. The company continues to be selective in the type and nature of work that it takes onboard. The company has been offered some projects which represent too much commercial risk and as such, after careful analysis, have been rejected. The strategy now is to increase turnover and associated margin in markets that represent low commercial risk for Blue Chip clients.

 

The company is now well positioned to attract the type and nature of work that will deliver greater profitability.

The company continues to operate certified Quality, Environmental and Occupational Health and Safety Management Systems to ISO9001, ISO14001 and ISO45001.

 

The company also has the following accreditations:

 

Acclaim SSIP

Achilles UDVB

Achilles Building Confidence

Alcumus SafeContractor SSIP

Builders Profile

Constructionline Gold

CHAS

CIRAS

ECIA
EIC

RISQS

ROSPA

SMAS

SEDEX

Sentinel

Sustainability School

Worksafe

Yellow Jacket

 

We are longstanding members and supporters of the National Access & Scaffolding Confederation (NASC), who are the recognised industry body for quality, safety and technical standards by the Health and Safety Executive. All of our activities are audited and certified by the NASC, again creating a very strong marketing tool.

 

The company has successfully retained the Fleet Operators Recognition (FORS) certification for the seventh year running and is currently at Silver Status. The scheme recognises those that excel in health, safety and environmental management in its transport operations.

PALMERS SCAFFOLDING UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -

2024 also saw the complete renewal of the Transport Fleet at the company, which equated to over 60 vehicles. Included in the renewal were all of the HGV classification (26 Tonne), Light goods vehicles (7.5 Tonne), pickups, vans and crew cabs.

 

The company has also continued with its capital expenditure investment in scaffolding stock in both traditional tube and fittings and system scaffolding (Layher).

 

We have secured further works at Hinkley Point C Nuclear Power Station and are well placed to secure further opportunities.

 

The Board of Directors again wish to thank all our employees for their continued loyal support and hard work. Their effort and teamwork are so important in helping us to achieve our objectives. The Board continue to do everything in its power to ensure the health, safety and welfare of its employees is maintained at the highest level. We have an excellent record of providing long term employment.

Principal risks and uncertainties

Palmers has repair and maintenance contracts at both Heathrow and Gatwick airports and we had reported last year that there had been a gradual return to business levels experienced in previous years. Both airports have featured heavily in the media in the last 12 months and Palmers is now well placed to capitalise on the further developments of the infrastructure at both of those locations both airside and landside.

 

Palmers is exposed to a variety of financial risks which the Board manages with the objective of minimising any potential adverse effect on the company's performance. The construction sector is exposed to changes in the economic climate, the UK Government's policies and employment laws as well as changing market practices and behaviours following a handful of high-profile company collapses.

 

The Board will therefore continue to mitigate these risks in a number of ways, notably by continuing to foster long-term relationships with our key clients, maintaining flexibility in our cost base, ensuring that we are not overly reliant on any one part of our supply chain.

 

Financial key performance indicators

 

Palmers is managed via our branch structure, with each branch having monthly targets to achieve across a range of financial and non-financial KPIs. The basis of these KPIs are agreed as part of our annual budget and business plan process and cover financial, commercial, operational and safety targets against which performance is monitored monthly.

 

The company has implemented a new Financial Accounting software package (Sun Systems) which allows much more accurate and timely reporting to be operated and reviewed at predetermined intervals to improve business performance. The Company has now introduced a new, more streamlined Payroll system to compliment Sun Systems (Mitrefinch) and this is now successfully up and running.

Development and performance

Palmers will continue to focus on its core clients operating in the infrastructure, construction and industrial related sectors, but as mentioned earlier, will be more selective in the type and nature of contracts that it accepts going forward. Our objective remains to operate safely, provide exceptional delivery to our customers and maintain strong relationships with our suppliers. There is now more of a focus on the commercial performance of the existing contracts already in place and the new business that the company continues to secure.

 

The directors, while in continual review, feel confident that there is sufficient flexibility in the cost base and variety in contracted work to effectively manage any downturn in trading and ensure that the company has sufficient resources to meet its financial obligations.

 

We have maintained cash flows and have ensured that all of the company’s liabilities with regard to PAYE and VAT have been met and are up to date. The company has further reduced its CBILS facility in 2024. The original CBILS facility was £3.5M, and this had been reduced to £272K at the balance sheet date. The company has now managed to secure preferential repayment terms for the balance. The company has now also repaid the “cash backing” of the CBILS facility of £500K to the owner.

PALMERS SCAFFOLDING UK LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Key performance indicators

The business has operational and financial reporting procedures, supported by appropriate key performance indicators, to manage the business and any risks that may exist. The principal key performance indicators used by management to monitor performance are as follows:

 

1. Safety Performance

2. Revenue

3. EBIT (Earnings before Interest and Tax)

4. Debtor Days / Cash Collection

 

We measure safety performance over a number of leading and lagging indicators. Our lost time accident frequency rate, per 100,000 man hours, was 0.00 (2023 – 0.21) There were no lost time accidents in the full year 2024 which is a significant achievement. Our accident statistics are well below the National averages.

 

Revenues have increased by 38.4% in comparison to the prior year.

 

EBITDA has increased from £2,527k to £4,190k and EBIT has increased from £2,202k to £3,769k.

 

Average debtor days for the year are 89 days compared with customer credit terms of 60 days.

Going concern

 

The directors have assessed that the actions and strategies available to them mitigate business threats, the forecasts demonstrated that the group could operate within its available funding arrangements. Therefore, as there is a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future, the directors have concluded this does not represent a material uncertainty with regards to going concern.

 

Thus, the financial statements have been prepared on a going concern basis which presumes the realisation of assets and liabilities in the normal course of business. Under this scenario the company still has significant cash headroom which will allow for further external factors to impact upon it and still enable it to discharge its liabilities as they become due. A reverse stress test is not considered appropriate given the headroom in place. There is of course a credit risk associated with the company’s debtor book but the Board has identified this issue as utmost priority and has put steps in place to collect it.

 

Based on the above, the directors are confident that the actions and strategies in place, results in the company being able to mitigate business threats as they arise.

Contractual relations

The company agrees payment terms with its suppliers when it enters into binding purchase contracts. The company seeks to abide by the payment terms agreed with suppliers whenever it is satisfied that the supplier has provided the goods or service in accordance with the agreed terms and conditions.

 

The company does not have a standard or code which deals specifically with the payment of suppliers. The number of days billing from suppliers outstanding at the year-end was approximately 50 days (2023: 50 days).

On behalf of the board

Mr M Carr
Director
17 June 2025
PALMERS SCAFFOLDING UK LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company continued to be that of scaffolding services.

Results and dividends

The results for the year are set out on page 9.

Interim dividends of £200,000 were paid in the year. The directors do recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr C C Butt
Mr M Carr
Mr A C Butt
Financial instruments
Liquidity risk

Liquidity risk is the risk that the company will not be able to support its own working capital requirement and that the company will encounter difficulty in meeting its financial obligations as they fall due.

 

The Board receives rolling 12-month cash flow projections on a weekly basis as well as information regarding cash balances. At the end of the financial year, these projections indicated that the company will have sufficient liquid resources to meet all reasonable expected obligations as they fall due.

Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is mainly exposed to credit risk from credit sales. It is company policy to assess the credit risk of new customers before entering contracts. Such credit ratings are taken into account by local business practices. Each new customer is analysed individually for creditworthiness before the company’s standard payment and delivery terms and conditions are offered. Purchase limits are established for each customer, which represents the maximum open amount without requiring approval.

 

A monthly review of the trade receivables' ageing analysis is undertaken and customers' credit is reassessed periodically.

Employee information

Information concerning employees and their remuneration is set out in notes 6 and 7 to the financial statements.

 

It is the policy of the company to communicate with employees on matters of mutual interest, including health and safety, and to keep them informed about group affairs. Information is provided by various means.

 

It is also the company’s policy to encourage the employment, training and career development of disabled persons. If employees become disabled, every effort is made for them to continue in employment or receive appropriate training. In order to safeguard its employees, the company pursues a policy which seeks to achieve, as far as practicably possible, secure working environments, and has achieved accreditation to ISO 9001 for all operating divisions. The company undertook 327 training days of our employees this year to both maintain and further enhance the skill set of employees to meet the demands of the business.

Auditor

JS. Audit Limited were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

PALMERS SCAFFOLDING UK LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -
Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

In preparing these financial statements, the directors are required to:

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.

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 the business review and future developments.

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 directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the 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 M Carr
Director
17 June 2025
PALMERS SCAFFOLDING UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PALMERS SCAFFOLDING UK LIMITED
- 6 -
Opinion

We have audited the financial statements of Palmers Scaffolding UK Limited (the 'company') for the year ended 31 December 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:

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 contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

PALMERS SCAFFOLDING UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PALMERS SCAFFOLDING UK LIMITED (CONTINUED)
- 7 -
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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement included within the directors' report, 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 and fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities including fraud is detailed below.

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but were not limited to, the Companies Act 2006, UK tax, employment, pension and health and safety legislation and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006.

 

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and the risk of fraud in revenue recognition.

PALMERS SCAFFOLDING UK LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PALMERS SCAFFOLDING UK LIMITED (CONTINUED)
- 8 -

Our procedures to respond to risks identified included the following:

 

 

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

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 enquiry 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 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.

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.

Angela Harrison BA FCA (Senior Statutory Auditor)
For and on behalf of JS. Audit Limited, Statutory Auditor
Chartered Accountants
James House
Stonecross Business Park
Yew Tree Way
Warrington
Cheshire
WA3 3JD
19 June 2025
PALMERS SCAFFOLDING UK LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Turnover
3
32,871,754
23,753,006
Cost of sales
(25,451,808)
(18,015,338)
Gross profit
7,419,946
5,737,668
Administrative expenses
(4,147,467)
(3,536,157)
Exceptional item
4
496,628
-
0
Operating profit
5
3,769,107
2,201,511
Interest receivable and similar income
8
68,108
19,687
Interest payable and similar expenses
9
(116,935)
(201,655)
Profit before taxation
3,720,280
2,019,543
Tax on profit
10
250,000
639,182
Profit for the financial year
3,970,280
2,658,725

The profit and loss account has been prepared on the basis that all operations are continuing operations.

PALMERS SCAFFOLDING UK LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,285,287
595,212
Current assets
Debtors
13
7,866,784
6,237,657
Cash at bank and in hand
4,967,363
2,573,387
12,834,147
8,811,044
Creditors: amounts falling due within one year
14
(5,068,793)
(3,877,032)
Net current assets
7,765,354
4,934,012
Total assets less current liabilities
9,050,641
5,529,224
Creditors: amounts falling due after more than one year
15
(486,527)
(735,390)
Net assets
8,564,114
4,793,834
Capital and reserves
Called up share capital
21
320,000
320,000
Share premium account
22
-
0
2,486,000
Other reserves
23
-
0
40,250,000
Profit and loss reserves
24
8,244,114
(38,262,166)
Total equity
8,564,114
4,793,834

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 17 June 2025 and are signed on its behalf by:
Mr M Carr
Director
Company registration number 00159161 (England and Wales)
PALMERS SCAFFOLDING UK LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Share premium account
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 January 2023
320,000
2,486,000
40,250,000
(40,920,891)
2,135,109
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
-
2,658,725
2,658,725
Balance at 31 December 2023
320,000
2,486,000
40,250,000
(38,262,166)
4,793,834
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
-
3,970,280
3,970,280
Dividends
11
-
-
-
(200,000)
(200,000)
Reduction of shares
21
(40,250,000)
-
0
-
40,250,000
-
0
Issue of shares
40,250,000
-
(40,250,000)
-
-
Cancellation of shares
-
(2,486,000)
-
2,486,000
-
Balance at 31 December 2024
320,000
-
0
-
8,244,114
8,564,114
PALMERS SCAFFOLDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information

Palmers Scaffolding UK Limited is a private company limited by shares incorporated in England and Wales. The registered office is International House, Aviation Park, Flint Road, Saltney Ferry, Chester, CH4 0GZ.

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:

 

 

The financial statements of the company are consolidated in the financial statements of Innovative Scaffold Services Limited. These consolidated financial statements are available from Companies House, Crown Way, Cardiff CF14 3UZ.

1.2
Going concern

As referred to in the Strategic Report, management and the directors have previously been able to obtain funding support for the longer-term under CBILS and through generating profits during the current year, have been able to pay down a significant amount of this loan as well as shareholder loan repayment both of which continue post year end. The directors have reviewed group forecasts prepared by management and are confident that the company will be able to continue to meet its liabilities as they fall due. On this basis the true

directors have prepared the financial statements on a going concern basis.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for the provision of scaffolding services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue has been recognised when services have been delivered to customers such that risks and rewards of ownership have transferred to them. Contract costing is applied and sales arise from the rental of scaffolding and related services.

 

 

 

PALMERS SCAFFOLDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Plant and equipment
Straight line over 3 - 8 years
Motor vehicles
Straight line over 3 years

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.

1.5
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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).

Recoverable amount is the higher of fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows.

1.6
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.

1.7
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.

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.

PALMERS SCAFFOLDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
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.

1.8
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.

1.9
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.

PALMERS SCAFFOLDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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.

1.10
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.

1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Share-based payments

Equity-settled share-based payments are measured at fair value at the date of grant by reference to the fair value of the equity instruments granted using the Black Scholes model. The fair value determined at the grant date is expensed on a straight-line basis over the vesting period, based on the estimate of shares that will eventually vest. A corresponding adjustment is made to equity.

1.13
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 leased asset are consumed.

1.14
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.

PALMERS SCAFFOLDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

In preparing these financial statements, the directors have made the following judgements:-

 

 

 

disclosed in note 1.4.

 

 

3
Turnover

Turnover arises from services supplied in the United Kingdom. All turnover and profits are derived from the supply of industrial services which, in the opinion of the directors, constitutes one class of business.

4
Exceptional item
2024
2023
£
£
Income
Write-back of amounts due to group companies
496,628
-
5
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
25,000
30,000
Depreciation of owned tangible fixed assets
370,448
325,830
Depreciation of tangible fixed assets held under finance leases
50,675
-
Operating lease charges
403,446
374,579
PALMERS SCAFFOLDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Scaffolding services - Airports and London
62
46
Scaffolding services - Industrial
154
133
Support Services
11
10
Total
227
189

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
17,639,464
13,695,884
Social security costs
2,000,531
1,487,667
Pension costs
369,829
305,001
21,529,020
15,488,552
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
485,965
426,791
Company pension contributions to defined contribution schemes
13,020
18,147
498,985
444,938

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted 2 (2023 : 2).

Remuneration disclosed above include the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
220,320
151,937
Company pension contributions to defined contribution schemes
10,800
8,404
PALMERS SCAFFOLDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
61,021
19,687
Other interest income
7,087
-
0
Total income
68,108
19,687
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
59,188
158,600
Other interest on financial liabilities
44,531
38,935
Interest on finance leases and hire purchase contracts
13,216
-
Other interest
-
0
4,120
116,935
201,655
10
Taxation
2024
2023
£
£
Current tax
Adjustments in respect of prior periods
-
0
128,946
Deferred tax
Origination and reversal of timing differences
(250,000)
(768,128)
Total tax credit
(250,000)
(639,182)
PALMERS SCAFFOLDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
(Continued)
- 19 -

The actual credit 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
3,720,280
2,019,543
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 25.00%)
930,070
504,886
Tax effect of expenses that are not deductible in determining taxable profit
17,221
11,571
Tax effect of income not taxable in determining taxable profit
(124,157)
-
0
Change in unrecognised deferred tax assets
(1,073,134)
(1,104,377)
Adjustments in respect of prior years
-
0
128,946
Group relief
-
0
(180,208)
Taxation credit for the year
(250,000)
(639,182)

The company has an unprovided deferred tax asset of £4,220,530 (2023: £5,295,664) in respect of tax losses and timing differences which may be relievable in future years.

11
Dividends
2024
2023
£
£
Interim paid
200,000
-
0
PALMERS SCAFFOLDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
12
Tangible fixed assets
Plant and equipment
Motor vehicles
Total
£
£
£
Cost
At 1 January 2024
994,619
25,500
1,020,119
Additions
1,111,198
-
0
1,111,198
At 31 December 2024
2,105,817
25,500
2,131,317
Depreciation and impairment
At 1 January 2024
403,657
21,250
424,907
Depreciation charged in the year
416,873
4,250
421,123
At 31 December 2024
820,530
25,500
846,030
Carrying amount
At 31 December 2024
1,285,287
-
0
1,285,287
At 31 December 2023
590,962
4,250
595,212

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
249,628
-
0
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
4,349,706
4,349,459
Gross amounts owed by contract customers
1,752,911
680,329
Other debtors
576,562
285,931
Prepayments and accrued income
187,605
171,938
6,866,784
5,487,657
Deferred tax asset (note 18)
1,000,000
750,000
7,866,784
6,237,657

The impairment loss recognised in the Statement of Comprehensive Income for the year in respect of bad and doubtful trade debts was £156,021 (2023: £54,945).

PALMERS SCAFFOLDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
276,831
261,302
Obligations under finance leases
17
100,121
-
0
Other borrowings
16
-
0
255,000
Trade creditors
1,304,619
860,707
Gross amounts owed to contract customers
714,674
-
0
Amounts owed to group undertakings
-
0
508,167
Corporation tax
-
0
128,946
Other taxation and social security
620,238
638,865
Other creditors
583,688
553,029
Accruals and deferred income
1,468,622
671,016
5,068,793
3,877,032
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
16
417,861
692,698
Accruals and deferred income
68,666
42,692
486,527
735,390
16
Loans and overdrafts
2024
2023
£
£
Bank loans
694,692
954,000
Loans from related parties
-
0
255,000
694,692
1,209,000
Payable within one year
276,831
516,302
Payable after one year
417,861
692,698

See note 25 to the financial statements, Financial commitments, guarantees and contingent liabilities in respect of security against loans.

The Coronavirus Business Interruption Loan Scheme loan incurs interest at a rate of 3% pa over base rate. The interest is paid separately to the capital on a quarterly basis. The other bank loan incurs interest at a fixed rate of 6.09% and is being paid monthly. Capital is being repaid monthly on both loans.

 

Loans from related parties were repaid in full during the year and interest of £1,973 was charged.

PALMERS SCAFFOLDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
17
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
Within one year
100,121
-
0

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 18 months. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

The liabilities are secured against the assets to which they relate.
18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
40,642
264,624
Tax losses
936,693
476,258
Short term timing differences
22,665
9,118
1,000,000
750,000
2024
Movements in the year:
£
Asset at 1 January 2024
(750,000)
Credit to profit or loss
(250,000)
Asset at 31 December 2024
(1,000,000)

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

19
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
369,829
305,001

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. Contributions amounting to £65,150 (2023: £201,706) were payable to the scheme at the year end and are included in creditors.

PALMERS SCAFFOLDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
20
Share-based payment transactions

During the year 1,358 equity-settled share options were granted by the parent company, Innovative Scaffold Services Limited and were all outstanding as at 31 December 2024. The options have a weighted average exercise price of £184, exercisable on an exit event only and have a remaining contractual life of 9 years and 4 months.

 

The estimated fair value of each share option, £619, was calculated by applying the Black-Scholes pricing model with inputs of: volatility of 25%; interest rate of 4.5%; and dividend yield rate of nil. The total expense recognised in the company's financial statements for the year ended 31 December 2024 was nil.

 

Group share-based payments

The company participates in a group share based payment plan and recognises and measures its share based expense on the basis of a reasonable allocation of the expense recognised for the group. The allocation is based on the number of employees benefiting from the share based payment plan employed by each group entity.

21
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
320,000
320,000
320,000
320,000

On 14 March 2024 the company utilised its other reserve to issue 40,250,000 ordinary £1 shares at par. On the same day the company cancelled and extinguished 40,250,000 ordinary £1 shares with the credit being allocated to profit and loss reserves.

22
Share premium account

The share premium account arose from the excess received on shares issued and fully paid in previous years and was non-distributable. On 14 March 2024 the share premium account of the company was cancelled and credited to the profit and loss reserve.

23
Other reserves

The other reserve represented intercompany loan amounts forgiven by the company's previous ultimate parent company over a number of years which have been classified as capital contributions.

 

On 14 March 2024 this reserve was capitalised to issue 40,250,000 ordinary £1 shares at par.

24
Profit and loss reserves

The profit and loss account represents cumulative profits less distributions to shareholders.

PALMERS SCAFFOLDING UK LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
25
Financial commitments, guarantees and contingent liabilities

Mr C C Butt, a director, holds a fixed and floating charge over the company's property and assets dated 16 January 2017.

 

The company's bankers, National Westminster Bank plc hold a fixed and floating charge over the company's assets dated 1 May 2020.

 

The other bank loan advanced by IFW Debt LP is secured by a debenture dated 22 December 2023, a personal guarantee from Mr C C Butt, a director, and a guarantee from the parent company, Innovative Scaffold Services Limited.

26
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
344,048
319,770
Between two and five years
817,586
70,840
1,161,634
390,610
27
Related party transactions

The company has taken advantage of the exemption under FRS 102 not to disclose transactions or balances with other group companies.

 

The company has the following balances and transactions with companies related by common directors:

 

 

The company loaned an amount of £38,884 to one of the directors during the year. This amount was outstanding at the balance sheet date and no interest has been charged.

 

As disclosed in note 25, Mr C C Butt, a director, has provided a personal guarantee in respect of one of the company's loans.

28
Ultimate controlling party

The company is a wholly owned subsidiary of Innovative Scaffold Services Limited, a company incorporated in England and Wales with a registered office of International House, Flint Road, Saltney Ferry, Chester, CH4 0GZ. Innovative Scaffold Services Limited is the largest and smallest group for which group financial statements are prepared.

 

The ultimate controlling party of the company is Mr C C Butt through his shareholding in Innovative Scaffold Services Limited.

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