J.E.S Group Limited Company accounts

COMPANY REGISTRATION NUMBER: 09571834

J.E.S Group Limited

Financial Statements

31 December 2024

J.E.S Group Limited

Financial Statements

Year ended 31 December 2024

CONTENTS	PAGE

Officers and professional advisers	1

Strategic report	2

Directors' report	4

Independent auditor's report to the members	6

Statement of comprehensive income	10

Statement of financial position	11

Statement of changes in equity	12

Notes to the financial statements	13

J.E.S Group Limited

Officers and Professional Advisers

The board of directors	Mr V T Johnson
	Mr J R Johnson

Registered office	Riverside Road
	The Docks
	Port Talbot
	West Glamorgan
	Wales
	SA13 1RH

Auditor	James & Uzzell Ltd
	Chartered Certified Accountants & Statutory Auditor
	Axis 15, Axis Court
	Mallard Way
	Riverside Business Park
	Swansea
	SA7 0AJ

J.E.S Group Limited

Strategic Report

Year ended 31 December 2024

The directors present their strategic report for the year to 31 December 2024. J.E.S. Group Limited provides pipework fabrications and structural steelwork to industrial and commercial clients throughout the UK and throughout a range of sectors, including steel, fuel, chemical and pharmaceutical. J.E.S. Group Limited also provides other engineering services, such as under pressure drilling, pipeline inspection and valve overhaul.

REVIEW OF BUSINESS

The company contracts with a key customer, Tata Steel UK and the level of sales is reliant upon the demand for maintenance from Tata Steel UK. Annual sales fluctuations are therefore expected and gross margin targets depend upon the mixture of job types and the competition within the tendering process. The company has responded to the recent announcement by Tata Steel UK to close parts of the plant by diversifying into new sectors such as petrochemical, oil & gas and metals and mining. The company aligns with the UK & Welsh Governments aim to reduce carbon omissions by becoming involved in renewable energy contracts in the near future involving offshore wind,, whilst also fulfilling current contracts and being involved in the decommissioning process of Tata Steel UK. The company has developed a state-of-the-art skills academy to develop Welding and Fabrication skills and has created a Centre of Excellence based in Port Talbot. It uses expert face-2-face tuition; accumulated workforce skills and experience, the latest equipment, industry tested protocols and interactive, immersive, digital technologies to drive a competency and capability hub for Welding and Fabrication skills in South Wales. In doing so, it aims to ensure the creation and continuous replenishment of a highly skilled, work ready, labour-force that is 'future proofed' for the demand of the Celtic Freeport, the drive to Net Zero and requirements of the Circular Economy. FINANCIAL KEY PERFORMANCE INDICATORS

	2024	2023	2022
	£	£	£
Turnover	15,408	19,327	18,299
Gross Profit Margin (%)	30	28	30
Operating Profit	2,108	2,935	3,068
Operating Profit Margin (%)	14	15	15

DEVELOPMENT AND PERFORMANCE The directors aim to maintain the management policies which has resulted in the company's growth in recent years. The results for the current year show that the company has maintained the successful results despite changes in the market and the results are in line with expectations. The company is investigating new opportunities in the market and have started diversifying into new areas.

PRINCIPAL RISKS AND UNCERTAINTIES

As a result of the company's concentration of sales with one key customer, there is a significant risk to the company in relation to the loss of this key customer. The directors recognise that such a risk exists and strive to ensure that the quality of the company's services, efficiency of service delivery and compliance with key laws and regulations exceeds that of the company's competitors, therefore helping to mitigate the risk of loss of the key customer. The company is looking at new opportunities in the market and have started diversifying into new areas to minimise any risks imposed on the company. The directors also seek to obtain contracts from other customers and have increased sales from new customers within the year. The retention of skilled staff is another risk facing the company and the directors aim to ensure that rates of pay offered by the company are competitive, whilst still ensuring that the company is able to continue to trade profitably. The company is in the process of developing a training academy to improve the skills of existing staff and encourage interest from people within the community looking to gain new skills with a potential of employment in the future. The company delivers its services within a heavy industry environment and adherence to stringent health and safety regulations and safe working practices is of paramount importance. The directors and senior key employees have extensive experience within the heavy industry environment; the company has developed training and monitoring procedures that ensure compliance with key regulations and the company has enjoyed an excellent record with regard to the instances of accidents.

This report was approved by the board of directors on 11 September 2025 and signed on behalf of the board by:

Mr Justin Johnson

Mr Justin Richard Johnson

Director

J.E.S Group Limited

Directors' Report

Year ended 31 December 2024

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

DIRECTORS

The directors who served the company during the year were as follows:

Mr V T Johnson
Mr J R Johnson

DIVIDENDS

Particulars of recommended dividends are detailed in note 13 to the financial statements.

FUTURE DEVELOPMENTS

The directors are optimistic regarding the future prospects of the company and consider that the current year will continue to be profitable. The afterdate results show that activity has continued to be stable. Following the announcement of the closure of part of the plant of their key customer, the company is diversifying into new markets and expanding their customers base as well as continuing its contracts with existing customers. The company maintains long standing relationships with a number of customers and suppliers throughout the UK and continues to seek to expand this customer base. The company has received a positive response to the development of its Skills Academy. While this will help the company to transform, diversify and grow, it is wholly inclusive, open and available to all.

FINANCIAL INSTRUMENTS

The company's principal financial instruments comprise bank balances, group and directors' loans, hire purchase agreements, trade debtors and creditors. The main purpose of these instruments is to raise funds for and finance the company's operations.

The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of deposit accounts and current accounts. The company has accumulated a high level of cash reserves in order to mitigate the credit risk associated with trade debtors and to facilitate growth.

In respect of group and directors' loans, these comprise loans to and from the directors and group companies. No interest is charged on the loans and repayments are set at a level dependant upon the working capital needs of the company.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit risk. The company also maintains increased cash reserves, to mitigate the differential between average debtor days and average creditor days. Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

The company is exposed to price risk as a result of its operations, in particular adverse fluctuations in employment related costs and the costs of raw materials. The company manages price risk by reviewing prices of goods with various suppliers, ensuring that they are receiving a competitive price and that price increases are passed on to the company's customers. The company also regularly reviews the labour rates paid to employees to ensure that they are competitive, yet are able to be recharged to the company's customers.

RESEARCH AND DEVELOPMENT

The company will continue its policy of investment in research and development in order to retain a competitive position in the market.

QUALIFYING INDEMNITY PROVISION

The Articles of Association of the Company contain an indemnity in favour of all the Directors of the Company that, subject to law, indemnifies the Directors, out of the assets of the Company, from any liability incurred by them in defending any proceedings in which judgement is given in their favour (or otherwise disposed of without any finding or admission of any material breach of duty on their part).

DISCLOSURE OF INFORMATION IN THE STRATEGIC REPORT

The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. DISCLOSURE OF INFORMATION TO THE AUDITORS

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 11 September 2025 and signed on behalf of the board by:

Mr Justin Johnson

Mr Justin Richard Johnson

Director

J.E.S Group Limited

Independent Auditor's Report to the Members of J.E.S Group Limited

Year ended 31 December 2024

OPINION

We have audited the financial statements of J.E.S Group Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

OTHER INFORMATION

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information 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 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 of this other information, we are required to report that fact. We have nothing to report in this regard.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

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

- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

RESPONSIBILITIES OF DIRECTORS

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: - We obtained an understanding of the legal regulatory frameworks that are applicable to the company and determined that the most significant of those relate to the reporting framework (United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Stand as applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice)) and the relevant tax compliance regulations, principally relating to those issued by HMRC. In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of the amounts and disclosures in the financial statements being the General Data Protection Regulation, and those laws and regulations relating to health and safety and employee matters. - We understood how J.E.S. Group Limited is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through our review of Board minutes and by understanding the entity level controls implemented by those charged with governance. - We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur by meeting with management to understand where it considered there was susceptibility to fraud. We also considered where the significant estimates and judgements are in the financial statements. We assessed the programmes and controls that the Company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes and controls. Where risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures including testing manual journals and were designed to provide reasonable assurance that the financial statements were free from fraud or error. - Based on this understanding we designed our audit procedures to identify non compliance with such laws and regulations. Our procedures involved, journal entry testing, with a focus on manual journals or unusual transactions based on our understanding of the business. Health and Safety is one of the key regulations to the company due to the nature of the work that the company conducts. Health & safety policies and procedures were confirmed to be in place and accident records were reviewed to ensure action had been taken where incidents had occurred to prevent them recurring. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.

EMMA LOUISE HUGHES

(Senior Statutory Auditor)

For and on behalf of

James & Uzzell Ltd

Chartered Certified Accountants & Statutory Auditor

Axis 15, Axis Court

Mallard Way

Riverside Business Park

Swansea

SA7 0AJ

11 September 2025

J.E.S Group Limited

Statement of Comprehensive Income

Year ended 31 December 2024

		2024	2023
Note		£	£
TURNOVER	4	15,408,042	19,327,615

Cost of sales	10,774,560	13,950,444
	-------------	-------------
GROSS PROFIT	4,633,482	5,377,171

Administrative expenses		2,854,688	2,442,168
Other operating income	5	329,615	–
		------------	------------
OPERATING PROFIT	6	2,108,409	2,935,003

Other interest receivable and similar income	10	38,898	30,300
Interest payable and similar expenses	11	3,260	1,135
		------------	------------
PROFIT BEFORE TAXATION		2,144,047	2,964,168

Tax on profit	12	545,769	766,041
		------------	------------
PROFIT FOR THE FINANCIAL YEAR AND TOTAL COMPREHENSIVE INCOME		1,598,278	2,198,127
		------------	------------

All the activities of the company are from continuing operations.

J.E.S Group Limited

Statement of Financial Position

31 December 2024

	2024	2023
Note	£	£

FIXED ASSETS

Tangible assets	14	1,233,741	847,913

CURRENT ASSETS

Stocks	16	25,000	25,000
Debtors	17	7,972,323	9,491,180
Cash at bank and in hand		985,037	1,247,286
		------------	-------------
		8,982,360	10,763,466

CREDITORS: amounts falling due within one year	18	5,190,739	6,084,267
		------------	-------------
NET CURRENT ASSETS		3,791,621	4,679,199
		------------	------------
TOTAL ASSETS LESS CURRENT LIABILITIES		5,025,362	5,527,112

CREDITORS: amounts falling due after more than one year	19	23,751	8,130

PROVISIONS	21	183,134	64,199
		------------	------------
NET ASSETS		4,818,477	5,454,783
		------------	------------

CAPITAL AND RESERVES

Called up share capital	25	16,680	16,680
Profit and loss account	26	4,801,797	5,438,103
		------------	------------
SHAREHOLDERS FUNDS		4,818,477	5,454,783
		------------	------------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

These financial statements were approved by the board of directors and authorised for issue on 11 September 2025 , and are signed on behalf of the board by:

Mr Justin Johnson

Mr Justin Richard Johnson

Director

Company registration number: 09571834

J.E.S Group Limited

Statement of Changes in Equity

Year ended 31 December 2024

		Called up share capital	Profit and loss account	Total
		£	£	£
AT 1 JANUARY 2023		16,680	5,659,298	5,675,978

Profit for the year			2,198,127	2,198,127
		--------	------------	------------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		–	2,198,127	2,198,127

Dividends paid and payable	13	–	( 2,419,322)	( 2,419,322)
		--------	------------	------------
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS		–	( 2,419,322)	( 2,419,322)

AT 31 DECEMBER 2023		16,680	5,438,103	5,454,783

Profit for the year			1,598,278	1,598,278
		--------	------------	------------
TOTAL COMPREHENSIVE INCOME FOR THE YEAR		–	1,598,278	1,598,278

Dividends paid and payable	13	–	( 2,234,584)	( 2,234,584)
		----	------------	------------
TOTAL INVESTMENTS BY AND DISTRIBUTIONS TO OWNERS		–	( 2,234,584)	( 2,234,584)

		--------	------------	------------
AT 31 DECEMBER 2024		16,680	4,801,797	4,818,477
		--------	------------	------------

J.E.S Group Limited

Notes to the Financial Statements

Year ended 31 December 2024

1. GENERAL INFORMATION

J.E.S Group Limited is a private company limited by shares incorporated in England & Wales, United Kingdom. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operation and principal activities is that of a mechanical engineering company.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1. The reporting period of these financial statements and its comparative period is 12 months. These financial statements only include the results of the individual entity made up to 31 December 2024. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The company meets its day-to-day working capital requirements through its bank facilities. After making enquiries, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. This expectation also takes into account any potential inflationary and interest rate risks. The company's forecasts and projections, taking account reasonably the aforementioned possible changes in trading performance, show that the company should be able to operate within the level of its current facilities. The directors have considered the impact of the closure of certain areas within the plant of one of their key customers, and have implemented the effect of this into their projections for the next 3 years. The company is looking at new opportunities in the market and have started diversifying into new areas to minimise any risks imposed on the company. Therefore the company continues to adopt the going concern basis in preparing its financial statements.

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of J.E.S Holdings Limited which can be obtained from the registered office. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company. (b) Certain financial instrument disclosures providing equivalent disclosures are included in the consolidated financial statements of the group in which the entity is consolidated. (11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b)).

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Exceptional items

Exceptional items are disclosed separately in the financial statements in order to provide further understanding of the financial performance of the entity. They are material items of income or expense that have been shown separately because of their nature or amount.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax.

(i) Rendering of services

When the outcome of a transaction can be estimated reliably, turnover from electrical and mechanical installation and maintenance together with building fabric installation and maintenance is recognised by reference to the stage of completion at the balance sheet date. Stage of completion is measured by reference to uncertified applications and afterdate sales.

Where the outcome cannot be measured reliably, turnover is recognised only to the extent of the expenses recognised that are recoverable.

When it is probable that costs will exceed the total turnover, the expected loss is recognised as an expense immediately, with a corresponding provision.

(ii) Interest receivable

Interest income is recognised using the effective interest method.

Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 14 for the carrying amount of the property plant and equipment, and the depreciation accounting policy for the useful economic lives for each class of assets. Stock provision The company conducts electrical and mechanical installation and maintenance together with building fabric installation and maintenance. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability. Impairment of debtors The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. See note 17 for the net carrying amount of the debtors and associated impairment provision. Work in progress Recognition of turnover and profit is based on judgements made in respect of the ultimate profitability of a contract. Such judgements are arrived at through the use of estimates in relation to costs and value of work performed to date and to be performed in bringing contracts to completion, including satisfaction of maintenance responsibilities. These estimates are made by reference to recovery of pre-contract costs, surveys of progress against the construction programme, changes in work scope, the contractual terms under which the work is being performed including the recoverability of any unagreed income from variations on the likely outcome of discussions on claims, costs incurred and external certification of the work performed. The company has the appropriate control procedures to ensure all estimates are determined on a consistent basis and subject to appropriate review and authorization. Provisions Estimates are used in determining the value of provisions when recognised. This will be based on historical information, known expectations and reasonable outcomes. Going concern The assessment of going concern may include the use of critical judgements in respect of impact of various external factors such as political, economic and social issues. Material uncertainties are considered in this regard. Research & Development Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated

Research & development

Research expenditure is written off against profits in the year in which it is incurred. Identifiable development expenditure is capitalised to the extent that the technical, commercial and financial feasibility can be demonstrated.

Tax

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Operating leases

Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Short leasehold property	-	20% straight line
Plant and machinery	-	25% reducing balance
Fixtures and fittings	-	33% straight line
Motor vehicles	-	25% reducing balance

Investments

Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

Impairment of fixed assets

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Stock and work in progress

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition. Work in progress on long term contracts is valued at selling price in line with FRS102 and is included as accrued income in debtors. All other work in progress is measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the work in progress to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Government grants

Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it becomes receivable.

4. TURNOVER

Turnover arises from:

	2024	2023
	£	£
Rendering of services	15,408,042	19,327,615
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. OTHER OPERATING INCOME

	2024	2023
	£	£
Other operating income	329,615	–
	---------	----

6. OPERATING PROFIT

Operating profit or loss is stated after charging/crediting:

	2024	2023
	£	£
Depreciation of tangible assets	75,373	81,344
(Gains)/loss on disposal of tangible assets	( 25,931)	7,722
Impairment of trade debtors	–	20
Operating Lease Payments	62,533	63,755
	--------	--------

7. AUDITOR'S REMUNERATION

	2024	2023
	£	£
Fees payable for the audit of the financial statements	14,315	13,375
	--------	--------

8. STAFF COSTS

The average number of persons employed by the company during the year, including the directors, amounted to:

	2024	2023
	No.	No.
Production staff	85	93
Administrative staff	3	3
Management staff	12	13
	----	----
	100	109
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2024	2023
	£	£
Wages and salaries	6,671,982	8,561,661
Social security costs	764,190	778,334
Other pension costs	120,823	114,976
	------------	------------
	7,556,995	9,454,971
	------------	------------

9. DIRECTORS' REMUNERATION

The directors' aggregate remuneration in respect of qualifying services was:

	2024	2023
	£	£
Remuneration	44,741	43,267
Company contributions to defined contribution pension plans	1,050	1,050
	--------	--------
	45,791	44,317
	--------	--------

The number of directors who accrued benefits under company pension plans was as follows:

	2024	2023
	No.	No.
Defined contribution plans	1	1
	----	----

10. OTHER INTEREST RECEIVABLE AND SIMILAR INCOME

	2024	2023
	£	£
Interest on cash and cash equivalents	38,898	30,300
	--------	--------

11. INTEREST PAYABLE AND SIMILAR EXPENSES

	2024	2023
	£	£
Interest on obligations under finance leases and hire purchase contracts	3,260	1,135
	------	------

12. TAX ON PROFIT

Major components of tax expense

	2024	2023
	£	£

Current tax:

UK current tax expense	426,834	706,508
Adjustments in respect of prior periods	–	59,860
	---------	---------
Total current tax	426,834	766,368
	---------	---------

Deferred tax:

Origination and reversal of timing differences	118,935	( 327)
	---------	---------
Tax on profit	545,769	766,041
	---------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2023: higher than) the standard rate of corporation tax in the UK of 25 % (2023: 25 %).

	2024	2023
	£	£
Profit on ordinary activities before taxation	2,144,047	2,964,168
	------------	------------
Profit on ordinary activities by rate of tax	536,012	741,042
Adjustment to tax charge in respect of prior periods	–	59,860
Effect of expenses not deductible for tax purposes	8,478	9,579
Effect of different UK tax rates on some earnings	–	(44,440)
Enhanced capital allowances	(117,656)	326
Deferred Tax	118,935	(326)
	------------	------------
Tax on profit	545,769	766,041
	------------	------------

Factors that may affect future tax expense

There are no factors affecting future tax charge.

13. DIVIDENDS

	2024	2023
	£	£
Dividends paid during the year (excluding those for which a liability existed at the end of the prior year )	2,234,584	2,419,322
	------------	------------

14. TANGIBLE ASSETS

	Short leasehold property	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 January 2024	594,917	212,610	32,419	361,330	1,201,276
Additions	463,003	53,165	714	129,786	646,668
Disposals	( 184,047)	–	–	( 4,950)	( 188,997)
	---------	---------	--------	---------	------------
At 31 December 2024	873,873	265,775	33,133	486,166	1,658,947
	---------	---------	--------	---------	------------
Depreciation
At 1 January 2024	17,710	162,982	32,161	140,510	353,363
Charge for the year	7,710	12,406	226	55,031	75,373
Disposals	–	–	–	( 3,530)	( 3,530)
	---------	---------	--------	---------	------------
At 31 December 2024	25,420	175,388	32,387	192,011	425,206
	---------	---------	--------	---------	------------
Carrying amount
At 31 December 2024	848,453	90,387	746	294,155	1,233,741
	---------	---------	--------	---------	------------
At 31 December 2023	577,207	49,628	258	220,820	847,913
	---------	---------	--------	---------	------------

Included in the total net book value of motor vehicles was £12,656 (2023: £25,203) in respect of assets held under finance leases. Tangible fixed assets with a net book value of the same amount have been pledged as security for liabilities in the company.

15. INVESTMENTS

	Shares in group undertakings
	£
Cost
At 1 January 2024 and 31 December 2024	15,002
	--------
Impairment
At 1 January 2024 and 31 December 2024	15,002
	--------

Carrying amount
At 31 December 2024	–
	--------
At 31 December 2023	–
	--------

Investments are measured by cost less impairment on the basis that they represent shares in entities that are not publicly traded and the fair value cannot otherwise be measured reliably.

Included in investments is a 100% holding in the ordinary share capital of J.E.S. (Port Talbot)Limited. Its registered office is Riverside Road, The Docks, Port Talbot, West Glamorgan, Wales, SA13 1RH. At the year end, the aggregate capital and reserves of the company amounted to (£4,617) and profit for the year amount to £NIL.

16. STOCKS

	2024	2023
	£	£
Raw materials and consumables	25,000	25,000
	--------	--------

17. DEBTORS

	2024	2023
	£	£
Trade debtors	6,330,230	8,391,894
Prepayments and accrued income	755,564	857,276
Other debtors	886,529	242,010
	------------	------------
	7,972,323	9,491,180
	------------	------------

18. CREDITORS: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	186,163	–
Payments received on account	713,918	1,008,289
Trade creditors	722,909	816,933
Accruals and deferred income	2,283,065	2,696,154
Corporation tax	628,165	516,804
Social security and other taxes	635,240	935,035
Obligations under finance leases and hire purchase contracts	–	9,116
Other creditors	21,279	101,936
	------------	------------
	5,190,739	6,084,267
	------------	------------

Obligations under finance leases and hire purchase contracts are secured over the asset to which they relate.

19. CREDITORS: amounts falling due after more than one year

	2024	2023
	£	£
Accruals and deferred income	5,405	5,405
Obligations under finance leases and hire purchase contracts	18,346	2,725
	--------	------
	23,751	8,130
	--------	------

20. FINANCE LEASES AND HIRE PURCHASE CONTRACTS

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	2024	2023
	£	£
Not later than 1 year	–	9,116
Later than 1 year and not later than 5 years	18,346	2,725
	--------	--------
	18,346	11,841
	--------	--------

21. PROVISIONS

	Deferred tax (note 22)
	£
At 1 January 2024	64,199
Charge against provision	118,935
	---------
At 31 December 2024	183,134
	---------

22. DEFERRED TAX

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in provisions (note 21)	183,134	64,199
	---------	--------

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	( 183,134)	( 64,199)
	---------	--------

The expected net reversal of deferred tax assets and liabilities in 2025 is £45,784. This primarily relates to the reversal of timing differences on capital allowances

23. EMPLOYEE BENEFITS

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 120,823 (2023: £ 114,976 ).

24. GOVERNMENT GRANTS

The amounts recognised in the financial statements for government grants are as follows:

	2024	2023
	£	£

Recognised in creditors:

Deferred government grants due after more than one year	5,405	5,405
	------	------

25. CALLED UP SHARE CAPITAL

Issued, called up and fully paid

	2024		2023
	No.	£	No.	£
Ordinary shares of £ 1 each	15,004	15,004	15,004	15,004
Ordinary A shares of £ 1 each	420	420	420	420
Ordinary B shares of £ 1 each	420	420	420	420
Ordinary C shares of £ 1 each	836	836	836	836
	--------	--------	--------	--------
	16,680	16,680	16,680	16,680
	--------	--------	--------	--------

26. RESERVES

Profit and loss account - This reserve records retained earnings and accumulated losses.

27. OPERATING LEASES

The total future minimum lease payments under non-cancellable operating leases are as follows:

	2024	2023
	£	£
Not later than 1 year	20,618	48,152
Later than 1 year and not later than 5 years	82,470	20,023
Later than 5 years	309,263	–
	---------	--------
	412,351	68,175
	---------	--------

28. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The balance at the year end outstanding from the directors was £661,481 (2023: £242,010). No interest has been charged on this balance.

29. PARENT UNDERTAKINGS

The ultimate parent company is J.E.S. Holdings Limited, a company registered in Great Britain. The registered office of J.E.S. Holdings Limited is Phoenix Wharf, Harbour Road, Port Talbot Docks, Port Talbot, West Glamorgan, England, SA13 1RA.

30. CONTROLLING PARTY

The ultimate controlling parties are Mr V Johnson and Mrs E Johnson, by virtue of their shareholding in J.E.S. Holdings Limited.