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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

ASD Contracts Ltd is a private company limited by shares incorporated in England and Wales. The registered office can be found on the Company Information page.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

Revenue comprises sales of goods or services provided to customers net of value added tax and other sales taxes, less an appropriate deduction for actual and expected returns and discounts. Revenue is recognised when performance obligations are satisfied and the control of goods or services is transferred to the buyer. Where the performance obligation is satisfied over time, revenue is recognised in accordance with its progress towards complete satisfaction of that performance obligation.

When cash inflows are deferred and represent a financing arrangement, the promised consideration is adjusted for the effects of the time value of money, which is recognised as interest income.

Construction revenue

When the outcome of a construction contract can be estimated reliably, contract revenue and contract costs are recognised on a contract by contract basis using the stage of completion basis. The stage of a contract is determined based on surveys of work performed. Profit is recognised on separately identifiable components as the contract progresses. Each component may have different profit percentages associated with the work.

Monthly reviews are performed and revisions are made to estimates of revenue and costs as a contract progresses. When it is probable that total contracts costs will exceed total contract revenue on a construction contract, the expected loss is recognised as an expense immediately.

When the outcome of a construction contract cannot be estimated reliably, revenue is recognised to the extent of work performed but no profit is recognised.

Rental income

Rental income comprises rental income receivable from properties let during the year. Rental income is recognised on a straight line basis over the term of the lease. Any rental incentive or rent free period is spread over the term of the lease.

Development revenue

Sales of development properties are recognised in turnover once legal contracts are completed and no substantive conditions remain unfulfilled.

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

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

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Stocks and work in progress principally comprise property development and refurbishment contracts. Stocks are valued at the lower of cost and net realisable value, after making due allowances for obsolete and slow moving items.

Where the substance of a contract results in the contractual obligation being performed over time, revenue is recognised as the contract progresses to reflect the partial performance of contractual obligations. The stage of completion of the contract is assessed and any element of profit as a proportion of expected overall profitability on the contract is recognised.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

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

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

Stage of completion and total contract costs

When contracts can be estimated reliably, contract revenues and costs are recognised on a contract by contract basis using a stage of completion basis. The application of this accounting policy requires both the total costs of a contract and stage of contract completion to be assessed.

Assessments of work performed are undertaken by appropriate people. An inherent degree of judgement will exist in determining the stage of completion on a contract at the reporting date.

Trade Debtors

At each reporting date, trade debtors are assessed for recoverability. If there is any evidence of impairment, the carrying amount of the debtor is reduced to its recoverable amount. The impairment loss is recognised immediately in the profit and loss account.

Carrying value of stock

At each reporting date, the carrying value of stock is assessed for any evidence of impairment. If there is any evidence of impairment, the carrying amount of the stock is reduced to its net realisable value which has an inherent degree of judgement. The impairment loss is recognised immediately in the profit and loss account.

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

Included in tangible fixed assets are fixed assets which are held under hire purchase contracts, see finance lease obligations note. At the year end the net book value was £708,599 (2023: £150,358).

The bank loans and hire purchase contracts are secured, see secured debts note.

Included within Other creditors is £51,669 (2023: £48,131) relating to assets on finance leases which is secured on the assets to which it relates.

Hire purchase contracts are secured, see secured debts note.

Other creditors include £450,408 (2023: £105,576) relating to assets on finance leases which is secured on the assets to which it relates.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

The bank overdraft is secured by a fixed and floating charge over the company's assets. The finance lease contracts debt is secured on the assets to which it relates.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

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; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

During the year the company made purchases, at an arms length, with Architecture Design Development Limited, a business in which A J Shaw is also a director. These amounted to £4,075 (2023: £56,500). At the year end the amount owed to Architecture Design Development Limited was £nil (2023: £9,000).

The immediate and ultimate parent undertaking is Andy Shaw Developments Limited. A company incorporated in England and Wales, whose registered office is 23 Lombard Street, Lichfield, Staffordshire WS13 6DP.