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Financial Statements
Ardmac Performance Contracting Limited
For the year ended 31 December 2024
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Ardmac Performance Contracting Limited
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Company Information
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Ronan Quinn (resigned 18 July 2024)
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Cormac Smyth (resigned 18 July 2024)
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Colm Casey (resigned 18 July 2024)
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Alan Coakley (resigned 18 July 2024)
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Donal Luke Gargan (resigned 18 July 2024)
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Roy Miller (resigned 18 July 2024)
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Neil Parkinson (resigned 18 July 2024)
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Luis Filipe Borges (appointed 18 July 2024)
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Vanessa De Mira Moura Bras (appointed 18 July 2024)
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Daniel Lane (appointed 18 July 2024)
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Neil Parkinson (resigned 18 July 2024)
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International Office Centre
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Chartered Accountants & Statutory Auditors
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The Royal Bank of Scotland
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Ardmac Performance Contracting Limited
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Contents
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Directors' responsibilities statement
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Independent auditor's report
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Statement of comprehensive income
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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Ardmac Performance Contracting Limited
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Strategic report
For the year ended 31 December 2024
The principal activity engaged in by the Ardmac Performance Contracting Limited ("the Company") during the financial year was the design and construction of specialist interior applications for the EV Battery, Datacentre, Pharmaceuticals and Life sciences sectors.
On 18 July 2024, the Ardmac Group was acquired by Purever - Negócios e Gestão, S.A. The strength of the combined offering that Purever and Ardmac presents will be compelling for customers, enabling Ardmac to offer both material supply and specialist construction solutions that bring a competitive advantage in our markets. While the acquisition marked the beginning of a new chapter for the business, Ardmac will continue to focus on delivering best-in-class, innovative solutions for our valued customers.
During the year, turnover increased by £27.0m or 100%. Further, income after tax were recognised in the year of £1.7m (2023: profit £0.9m). The increase in turnover was the main driver of increased profitability which was largely due to an increase in activity across all business divisions. The Company is well placed to continue to deliver strong performance in its core markets in the UK. This reflects the robust underlying activity levels in the various specialist sectors in which the Company operates.
Total shareholders' funds at 31 December 2024 was £4.6m (2023: £2.8m). The Company had strong liquidity with net current assets of £4.6m, including £5.0m of cash which the directors assess to satisfy the projected needs of the Company for the foreseeable term.
The business successfully delivered a number of projects during the financial year and is well positioned in the coming year to maintain its strong market position in the life sciences and technology markets. The company is currently delivering key projects within the Battery and Datacentre sectors and actively pursuing further opportunities in these areas. The Company is well placed to win a number of high profile projects across these sectors in 2025 and 2026.
Principal risks and uncertainties
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The directors consider that the principal risks and uncertainties faced by the Company are in the following categories:
Economic
The Company, like all of the construction industry, can be impacted by a global economic downturn. This poses a threat to all construction companies. The directors of the Company are confident that the strength of its brand and its focus on delivering a quality service to customers, in conjunction with the strong sectors it operates in (including Battery, Datacentre, Pharmaceuticals and Life Sciences), will enable the Company to continue to maximise the potential for winning projects and will allow the Company to manage such threats.
Compliance
The Company prioritises compliance and is in regular dialogue with its various regulatory bodies to ensure that all of its sites are monitored and meeting its obligations. The Company may be negatively impacted by regulatory changes which may lead to possible increases in costs / cashflows associated with increased regulation or changes to the taxation environment.
Competitor
The Company faces on-going competition in its various markets. This is managed through focusing on strong delivery to ensure that services are valued by our customers with the potential to increase repeat business.
Page 1
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Ardmac Performance Contracting Limited
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Strategic report (continued)
For the year ended 31 December 2024
Principal risks and uncertainties (continued)
Financial
The Company is exposed to financial risks and seeks to mitigate those risks as set out below:
∙Credit risk: The Company has implemented policies that require appropriate credit checks on all potential customers before a contract is entered into. The customers funding capacity is always understood before entering the contract. Debtors are closely monitored and managed throughout the project;
∙Liquidity risk: The Company is not dependent on the availability of finance facilities to operate its business and is primarily funded by retained earnings. Historically, the Company has met all financing obligations; and
∙Foreign exchange risk: The Company has a relatively low level of transactional foreign exchange risk. The business has intergroup transactions with related companies in Ireland, Holland, Belgium, Switzerland and Denmark. Any material transactional foreign exchange risks are managed through forward contracts.
Turnover
The Company needs to continually secure a sufficient pipeline of work across all of its sectors to operate sustainably. Pipeline of opportunities are continuously assessed along with the current order book to ensure the business has sufficient work or potential to win sufficient work to operate sustainably.
These risks are managed through proactive credit control and cost management procedures. The Company has a rigorous financial commercial and budgetary process to manage credit, liquidity and other financial risk.
This report was approved by the board and signed on its behalf.
Luis Filipe Borges
Director
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Vanessa De Mira Moura Bras
Director
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Page 2
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Ardmac Performance Contracting Limited
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Directors' report
For the year ended 31 December 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The profit for the year, after taxation, amounted to £1,708,451 (2023: £946,888).
During the financial year, the directors declared dividends amounting to £Nil (2023: £Nil).
The directors who served during the year were:
Ronan Quinn (resigned 18 July 2024)
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Cormac Smyth (resigned 18 July 2024)
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Colm Casey (resigned 18 July 2024)
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Alan Coakley (resigned 18 July 2024)
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Donal Luke Gargan (resigned 18 July 2024)
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Roy Miller (resigned 18 July 2024)
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Neil Parkinson (resigned 18 July 2024)
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Luis Filipe Borges (appointed 18 July 2024)
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Vanessa De Mira Moura Bras (appointed 18 July 2024)
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Disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Events since the end of the reporting period
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There were no events since the end of the reporting period that would require adjustments in the financial statements, or a disclosure thereof.
The auditor, Grant Thornton, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
Luis Filipe Borges
Director
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Vanessa De Mira Moura Bras
Director
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Page 3
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Ardmac Performance Contracting Limited
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Directors' responsibilities statement
For the year ended 31 December 2024
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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.
Luis Filipe Borges Vanessa De Mira Moura Bras
Director Director
Date: 16 May 2025
Page 4
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Independent auditor's report to the members of Ardmac Performance Contracting Limited
We have audited the financial statements of Ardmac Performance Contracting Limited which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity for the year ended 31 December 2024, and the related notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in the 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, Ardmac Performance Contracting Limited's financial statements:
∙give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice of the assets, liabilities and financial position of the Company as at 31 December 2024 and of its financial performance for the year then ended; 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 'Responsibilities of the auditor 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 United Kingdom, namely the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances of the entity. 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
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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 the date 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.
Page 5
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Independent auditor's report to the members of Ardmac Performance Contracting Limited (continued)
Other information comprises the information included in the annual report, other than the financial statements and our Auditor's report thereon, including the Directors' report and the Strategic Report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Directors' report and the Strategic Report for the year for which the financial statements are prepared is consistent with the financial statements, and
∙the Directors' report and the Strategic Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the company and its environment we have obtained in the course of the audit, we have not identified material misstatements in the Directors' report and the Strategic Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements are not in agreement with the accounting records and returns; or
∙certain disclosures of directors' remuneration specified by law are not made; or
∙we have not received all the information and explanations we require for our audit.
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Independent auditor's report to the members of Ardmac Performance Contracting Limited (continued)
Responsibilities of management and those charged with governance for the financial statements
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Management is responsible for the preparation of the financial statements which give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS102 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, management 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 management either intend to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company's financial reporting process.
Responsibilities of the auditor for the audit of the financial statements
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The objectives of an auditor 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 their 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.
A further description of an auditor's responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).
The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below:
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to compliance with data protection requirements in the jurisdictions in which the Company operates and holds data, non-compliance related to employment regulation in the UK and other environment regulations 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 and local tax legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions. We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statement.
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Independent auditor's report to the members of Ardmac Performance Contracting Limited (continued)
Responsibilities of the auditor for the audit of the financial statements (continued)
Explanation as to what extent the audit was considered capable of detecting irregularities, including (continued)
In response to these principal risks, our audit procedures included but were not limited to:
∙inquiries of management on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, suspected or alleged fraud;
∙review of minutes of board meetings during the year to corroborate inquiries made;
∙gaining an understanding of the internal controls established to mitigate risk related to fraud;
∙discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation of financial statements throughout the audit;
∙identifying and testing journal entries to address the risk of inappropriate journals and management override of controls; designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;
∙challenging assumptions and judgements made by management in their significant accounting estimates, including cost to completion, recoverability of trade debtors, and warranty provision; and
∙review of the financial statement disclosures to underlying supporting documentation and inquiries of management.
The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.
The purpose of our audit work and to whom we owe our responsibilities
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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.
Cathal Kelly (Senior statutory auditor)
for and on behalf of
Grant Thornton
Chartered Accountants
& Statutory Auditors
13-18 City Quay
Dublin 2
Date: 16 May 2025
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Ardmac Performance Contracting Limited
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Statement of comprehensive income
For the year ended 31 December 2024
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Interest receivable and similar income
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Interest payable and similar expenses
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There was no other comprehensive income for 2024 (2023: £Nil).
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The notes on pages 12 to 22 form part of these financial statements.
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Page 9
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Ardmac Performance Contracting Limited
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Statement of financial position
As at 31 December 2024
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
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Vanessa De Mira Moura Bras
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The notes on pages 12 to 22 form part of these financial statements.
Page 10
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Ardmac Performance Contracting Limited
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Statement of changes in equity
For the year ended 31 December 2024
Page 11
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Ardmac Performance Contracting Limited
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Notes to the financial statements
For the year ended 31 December 2024
Ardmac Performance Contracting Limited ("the Company") is a private company limited by shares incorporated in the United Kingdom. The principal activity engaged in by the Company during the financial year was the design and construction of specialist interior applications for the Battery, Datacentre, Pharmaceuticals and Life sciences sectors.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; and
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Ardmac Group Limited, its immediate parent company, and Purever Negócios S.A., its ultimate parent company, as at 31 December 2024. These financial statements can be obtained from the Companies Registration Office and Instituto dos Registos e Notariado, respectively.
After reviewing the Company’s forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.
Page 12
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Ardmac Performance Contracting Limited
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Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
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Foreign currency translation
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Functional and presentation currency
The Company's functional and presentational currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.
Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
Revenue is only recognised on a contract where the outcome can be estimated reliably. Variations to, and claims arising in respect of contracts, are included in revenue to the extent that they have been confirmed with the customer or their recoverability is assessed to be probable and can be reliably measured. Costs are recognised based on actual costs incurred at the balance sheet date, with revenue reflecting these costs plus the anticipated project margin on these costs. When it is anticipated that the probable total costs on a contract will exceed the total contract revenue, the expected loss is recognised as an expense in the Statement of comprehensive income account immediately.
Amounts recoverable on contracts are included in trade receivables at cost plus attributable profit.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
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Ardmac Performance Contracting Limited
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Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations. The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Page 14
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Ardmac Performance Contracting Limited
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Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of comprehensive income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Statement of financial position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
Page 15
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Ardmac Performance Contracting Limited
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Notes to the financial statements
For the year ended 31 December 2024
2.Accounting policies (continued)
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Company would receive for the asset if it were to be sold at the reporting date.
Financial assets and liabilities are offset and the net amount reported in the Statement of financial position when there is an 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.
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Judgments in applying accounting policies and key sources of estimation uncertainty
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The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. The judgments, estimates and assumptions used in the financial statements are based upon management’s evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results could differ from these estimates, and the effect of any change in estimates will be adjusted in the financial statements when they become reasonably determinable.
Judgments, estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under these circumstances.
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Ardmac Performance Contracting Limited
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Notes to the financial statements
For the year ended 31 December 2024
3.Judgments in applying accounting policies and key sources of estimation uncertainty (continued)
Estimation uncertainties
Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may be substantially different.
Estimating cost to complete of projects
The Company recognise revenue on a percentage of completion basis based on total cost incurred over total cost to complete. The Company estimates the total cost to complete the project at each reporting date based on experience and/or agreed total cost with subcontractors. It is possible that the margin of the Company could be materially different based on changes in the Company's estimate.
Warranty provision
The Company maintains a warranty provision in relation to projects completed. The warranty provision is calculated based on level of projects completed in the last 24 months and their estimated cost to fulfill the warranty. The estimated cost is based on past experience of management in remediating similar projects.
Recoverability of debtors
The Company has made judgements when assessing the impairment of its debtors. Outstanding balances have been grouped on the basis of similar risk characteristics such as past-due status, and impairment has been reviewed with reference to historical loss experience updated for current conditions.
Turnover amounting to £53,995,177 (2023: £26,946,457) arose as a result of the principal activities of the Company.
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All turnover arose within the United Kingdom.
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The operating profit is stated after charging:
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Depreciation of tangible fixed assets
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Fee payable to the Company's auditor and its associates for the audit of the
Company's annual financial statements
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Page 17
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Ardmac Performance Contracting Limited
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Notes to the financial statements
For the year ended 31 December 2024
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Staff costs, including directors' remuneration, were as follows:
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Cost of defined contribution pension scheme
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The average monthly number of employees, including the directors, during the year was as follows:
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The highest paid director received renumeration of £192,198 (2023: £154,856).
The value of the Company's contribution paid to a defined contribution pension scheme in respect of the highest paid director amounted to £57,989 (2023: £51,228).
During the year, 1 director (2023: 1 director) participated in the defined contribution pension scheme.
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Other interest receivable
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Page 18
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Ardmac Performance Contracting Limited
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Notes to the financial statements
For the year ended 31 December 2024
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Interest payable and similar expenses
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Current tax on profits for the year
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Adjustments in respect of previous periods
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Factors affecting tax charge for the year
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The tax assessed for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of25% (per 1 April 2023, until that date 19%). The differences are explained below:
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Profit multiplied by standard rate of corporation tax in the UK of 25% (2023: 25%, per 1 April 2023, until that date 19%)
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Expenses not deductible for tax purposes
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Capital allowances for year in excess of depreciation
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Tax losses utilised into future periods
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Adjustments in respect of previous periods
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Total tax charge for the year
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Page 19
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Ardmac Performance Contracting Limited
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Notes to the financial statements
For the year ended 31 December 2024
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Debtors: Amounts falling due within one year
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Amounts owed by group undertakings
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Prepayments and accrued income
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Corporation tax repayable
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Amounts due from group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
An impairment loss of £Nil (2023: £Nil) was recognised against trade debtors.
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Page 20
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Ardmac Performance Contracting Limited
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Notes to the financial statements
For the year ended 31 December 2024
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Cash and cash equivalents
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Creditors: Amounts falling due within one year
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Obligations under finance lease and hire purchase contracts
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Deferred income are payable at various dates in the next 12 months in accordance contract terms.
Trade and other creditors are payable at various dates in the next three months in accordance with the supplier's usual customary credit terms.
All taxes including social insurance are repayable at various dates over the coming months in accordance with applicable statutory provisions.
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Allotted, called up and fully paid
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2,000 (2023: 2,000) Ordinary shares of £1.00 each
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Page 21
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Ardmac Performance Contracting Limited
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Notes to the financial statements
For the year ended 31 December 2024
Share premium account
Includes any premiums received on issue of share capital.
Profit and loss account
Profit and loss account includes all current and prior year retained profits and losses.
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Commitments under operating leases
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At 31 December 2024, the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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Related party transactions
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The Company has availed of the exemption in FRS102 Section 33, Paragraph 33.1A which allows non disclosure of transactions between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.
Ardmac PCI Limited ("APCI") is a related entity given they are controlled by Ardmac Group Limited, Company's immediate parent Company, but not wholly owned subsidiary.
Amounts owed by Ardmac PCI Limited amounting to €85,929 as at 31 December 2024 (2023: amounts owed to Ardmac PCI Limited amounting to €16,168) is included under amounts owed by group undertakings disclosed in Note 13.
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Ultimate parent and controlling party
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In July 2024, Kakapuka Limited, previous ultimate parent company, was acquired by PI Insulation Engineering Limited, resulting in a change of control over the group. As a result of this acquisition, the ultimate parent company of the Company is now Purever - Negócios e Gestão, S.A., a company incorporated and registered in Portugal, while its immediate parent company is Ardmac Group Limited, a company incorporated and registered in the Republic of Ireland.
The smallest and largest consolidated accounts to include the results of the Company are prepared by Ardmac Group Limited and Purever - Negócios e Gestão, S.A, respectively. These financial statements are publicly available at the Companies Registration Office in the Republic of Ireland and Instituto dos Registos e Notariado in Portugal.
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