Ash Connect Limited - Limited company accounts 25.1

REGISTERED NUMBER: 10839401 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

ASH CONNECT LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Profit and Loss Account

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

14

Consolidated Cash Flow Statement

15

Notes to the Consolidated Cash Flow Statement

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

D Cooper

J M Green

REGISTERED OFFICE:

83 Cambridge Street

Pimlico

London

SW1V 4PS

REGISTERED NUMBER:

10839401 (England and Wales)

AUDITORS:

George Hay & Company

Chartered Accountants

& Statutory Auditors

83 Cambridge Street

London

SW1V 4PS

The directors present their strategic report of the company and the group for the year ended 31st December 2024.

REVIEW OF BUSINESS

The principal activity is that of a holding company and the company itself does not carry out a trade.

Turnover generated from the subsidiary undertakings increased by £506,076 (2%) from the previous year. However, the group's overall gross profit margin improved to 15.70 % compared to 14.99% from the 2023 financial year.

Throughout this financial year, the group continued to operate in the educational, commercial and ecclesiastical sectors and to further exploit those opportunities with its small works operation, Ash Special Works Ltd and direct focus on the inner London market with Ash Capital Projects Ltd business. All three business have performed in line with or greater than expectations in this period.

During the year, the group made capital contributions of £905,000 to the Ash Connect Employee Ownership Trust.

PRINCIPAL RISKS AND UNCERTAINTIES

The group's key financial instruments comprise of trade debtors and sales retentions, cash at bank and bank loans, trade creditors and subcontractors retentions.

The group is exposed to risks including credit risk, liquidity risk, cash flow risk, market risk, competition risk and laws and regulations risk, all of which arise from the group's normal business activities. The board reviews and agrees policies for managing each of these risks and they are summarised below:

Credit risk

The group monitors credit risk closely and considers that its current policies of credit checks and credit limits meet its objectives of managing exposure to credit risk.

Liquidity risk

The group closely monitors its bank balance and other credit facilities in comparison to its outstanding commitments to ensure it has sufficient funds to meet its obligations as they fall due.

Cash flow risk

Remains low due to the sectors chosen and agreed beneficial payment terms.

Market risk

Demand for the services of the group is cyclical and dependent on the economic environment. Any significant changes to our clients' working practices or a downturn in the economy, could result in the deferment or cancelling of expenditure. The group earns revenues from multiple sectors, and continues to make a concerted effort to strengthen relationships in these sectors.

Competition risk

The group is exposed to competition risk as the industry in which the group operates is mature and highly competitive. The conversion rate from tendering to secured work is maximised by careful selection of customers and suppliers in order to preserve our brand and work collaboratively.

Laws and regulations risk

The group carries out activities in environments which could cause serious injury to its staff, subcontractors and members of the public. The group has an active policy of training employees and commissioning independent third parties to carry out regular site checks. The group is committed to achieving the highest standards on health and safety.

Price risk

The company is subject to "price risk' in terms of materials, sub-contractors and plant. The industry is volatile and prices, especially steel related materials change rapidly, a diverse trusted and dedicated supply chain has proved reliable in forewarning the company of price hazard, in most cases, before contracts are agreed.

We are endeavouring to make allowances for these risks within the contracts we undertake.

New Subsidiary

The formation of Ash Capital Projects Ltd within the Group was particularly successful and has consolidated the client base.

FINANCIAL KEY PERFORMANCE INDICATORS

The financial key performance indicators used by the group directors to assess the performance of the business are turnover, gross profit margin, net profit before tax and net assets. A brief analysis of these is provided below:

2024

2023

£

Turnover

27,563,113

27,057,037

Gross profit margin

15.70%

14.99%

Net profit before tax

1,110,473

1,632,628

Net assets

2,619,225

2,824,337

During 2024 the overall performance of the group remains encouraging. New business has kept sales levels high and generated another year of high net profit before tax.

The group continues to report a strong net assets position.

ON BEHALF OF THE BOARD:

D Cooper - Director

12th September 2025

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

DIVIDENDS

No dividends for the year ended 31st December 2024 were paid (2023: £Nil).

DIRECTORS

The directors set out in the table below have held office during the whole of the period from 1 January 2024 to the date of this report.

D Cooper

J M Green

CHARITABLE DONATIONS

During the year the Group made charitable donations of £2,078.

DISCLOSURE IN THE STRATEGIC REPORT

Risks associated with the financial instruments held by the group are addressed in the Strategic Report.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, George Hay & Company, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D Cooper - Director

12th September 2025

Opinion

We have audited the financial statements of Ash Connect Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31st December 2024 which comprise the Consolidated Profit and Loss Account, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31st December 2024 and of the group's 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.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

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 or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the group's operations we identified that the principal risks of non-compliance with laws and regulations relate to building and construction regulations. We considered the extent to which non-compliance might have a material effect on the financial statements that results in the situation where no further construction services can be provided for. We also considered the relevant laws and regulations that have a direct impact on the preparation of the financial statements such as the income tax and deferred tax.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements

(including the risk of override of controls), and determined there were no principal risks directly impacting the group's

revenue and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

- Discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;

- Evaluating management's controls designed to prevent and detect irregularities;

- Identifying and testing journals, in particular journal entries posted with unusual account combinations or with unusual descriptions; and

- Challenging assumptions and judgements made by management in their critical accounting estimates.

A further description of our 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 Report of the Auditors.

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 a Report of the Auditors 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.

Marino Achilleos FCCA (Senior Statutory Auditor)

for and on behalf of George Hay & Company

Chartered Accountants

& Statutory Auditors

83 Cambridge Street

London

SW1V 4PS

15th September 2025

TURNOVER

3

27,563,113

27,057,037

Cost of sales

23,235,188

23,000,607

GROSS PROFIT

4,327,925

4,056,430

Administrative expenses

3,253,716

2,429,732

1,074,209

1,626,698

Other operating income

-

1,000

OPERATING PROFIT

6

1,074,209

1,627,698

Interest receivable and similar income

51,588

19,041

1,125,797

1,646,739

Interest payable and similar expenses

8

15,324

14,111

PROFIT BEFORE TAXATION

1,110,473

1,632,628

Tax on profit

9

378,690

136,288

PROFIT FOR THE FINANCIAL YEAR

731,783

1,496,340

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

731,783

1,496,340

Profit attributable to:

Owners of the parent

523,595

1,320,848

Non-controlling interests

208,188

175,492

731,783

1,496,340

Total comprehensive income attributable to:

Owners of the parent

523,595

1,320,848

Non-controlling interests

208,188

175,492

731,783

1,496,340

FIXED ASSETS

Tangible assets

11

63,644

50,865

Investments

12

-

63,644

50,865

CURRENT ASSETS

Debtors

13

3,575,082

5,184,788

Cash at bank and in hand

4,042,184

3,371,245

7,617,266

8,556,033

CREDITORS

Amounts falling due within one year

14

5,016,881

5,555,211

NET CURRENT ASSETS

2,600,385

3,000,822

TOTAL ASSETS LESS CURRENT
LIABILITIES

2,664,029

3,051,687

CREDITORS

Amounts falling due after more than one
year

15

(44,804

)

(150,177

)

PROVISIONS FOR LIABILITIES

19

-

(77,173

)

NET ASSETS

2,619,225

2,824,337

CAPITAL AND RESERVES

Called up share capital

20

100

Share premium

21

107,623

Revaluation reserve

21

692,924

Merger reserve

21

173,976

Retained earnings

21

1,308,898

1,690,303

SHAREHOLDER FUNDS

2,283,521

2,664,926

NON-CONTROLLING INTERESTS

335,704

159,411

TOTAL EQUITY

2,619,225

2,824,337

The financial statements were approved by the Board of Directors and authorised for issue on 12th September 2025 and were signed on its behalf by:

D Cooper - Director

FIXED ASSETS

Tangible assets

11

-

Investments

12

107,852

107,774

107,852

107,774

CURRENT ASSETS

Cash at bank

29,270

6,362

CREDITORS

Amounts falling due within one year

14

12,228

10,680

NET CURRENT ASSETS/(LIABILITIES)

17,042

(4,318

)

TOTAL ASSETS LESS CURRENT
LIABILITIES

124,894

103,456

CAPITAL AND RESERVES

Called up share capital

20

100

Share premium

107,623

Retained earnings

17,171

(4,267

)

SHAREHOLDER FUNDS

124,894

103,456

Company's profit/(loss) for the financial year

436,438

(3,620

)

The financial statements were approved by the Board of Directors and authorised for issue on 12th September 2025 and were signed on its behalf by:

D Cooper - Director

Called up

share

Retained

Share

Revaluation

capital

earnings

premium

reserve

£

Balance at 1st January 2023

100

789,645

107,623

692,924

Changes in equity

Total comprehensive income

-

1,320,848

-

Capital contributions to

Employee Ownership Trust

-

(420,190

)

-

100

1,690,303

107,623

692,924

Acquisition of non-controlling
interest

-

Balance at 31st December 2023

100

1,690,303

107,623

692,924

Changes in equity

Total comprehensive income

-

523,595

-

Capital contributions to

Employee Ownership Trust

-

(905,000

)

-

100

1,308,898

107,623

692,924

Acquisition of non-controlling
interest

-

Balance at 31st December 2024

100

1,308,898

107,623

692,924

Merger

Non-controlling

Total

reserve

Total

interests

equity

£

Balance at 1st January 2023

173,976

1,764,268

24,894

1,789,162

Changes in equity

Dividends

-

(41,000

)

(41,000

)

Total comprehensive income

-

1,320,848

175,492

1,496,340

Capital contributions to

Employee Ownership Trust

-

(420,190

)

-

(420,190

)

173,976

2,664,926

159,386

2,824,312

Acquisition of non-controlling
interest

-

25

Balance at 31st December 2023

173,976

2,664,926

159,411

2,824,337

Changes in equity

Dividends

-

(32,017

)

(32,017

)

Total comprehensive income

-

523,595

208,188

731,783

Capital contributions to

Employee Ownership Trust

-

(905,000

)

-

(905,000

)

173,976

2,283,521

335,582

2,619,103

Acquisition of non-controlling
interest

-

122

Balance at 31st December 2024

173,976

2,283,521

335,704

2,619,225

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

Balance at 1st January 2023

100

(457

)

107,623

107,266

Changes in equity

Total comprehensive income

-

(3,620

)

-

(3,620

)

Capital contributions to

Employee Ownership Trust

-

(190

)

-

(190

)

Balance at 31st December 2023

100

(4,267

)

107,623

103,456

Changes in equity

Total comprehensive income

-

436,438

-

436,438

Capital contributions to

Employee Ownership Trust

-

(415,000

)

-

(415,000

)

Balance at 31st December 2024

100

17,171

107,623

124,894

Cash flows from operating activities

Cash generated from operations

1

1,845,849

1,248,206

Interest paid

(14,446

)

(13,233

)

Interest element of finance lease payments
paid

(878

)

(878

)

Tax paid

(136,288

)

(68,940

)

Net cash from operating activities

1,694,237

1,165,155

Cash flows from investing activities

Purchase of tangible fixed assets

(37,500

)

-

Sale of tangible fixed assets

4,882

1,971

Interest received

51,588

19,041

Net cash from investing activities

18,970

21,012

Cash flows from financing activities

Loan repayments in year

(100,000

)

(100,000

)

Capital repayments in year

(5,373

)

(5,374

)

Amount introduced by directors

-

213

Share issues in subsidiaries

122

25

Capital contributions to EOT

(905,000

)

(420,190

)

Equity dividends paid

(32,017

)

(41,000

)

Net cash from financing activities

(1,042,268

)

(566,326

)

Increase in cash and cash equivalents

670,939

619,841

Cash and cash equivalents at beginning of
year

2

3,371,245

2,751,404

Cash and cash equivalents at end of year

2

4,042,184

3,371,245

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

Profit before taxation

1,110,473

1,632,628

Depreciation charges

21,215

16,956

Profit on disposal of fixed assets

(1,376

)

(953

)

Increase in provisions

-

77,173

Finance costs

15,324

14,111

Finance income

(51,588

)

(19,041

)

1,094,048

1,720,874

Decrease/(increase) in trade and other debtors

1,609,706

(1,074,623

)

(Decrease)/increase in trade and other creditors

(857,905

)

601,955

Cash generated from operations

1,845,849

1,248,206

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2024

31.12.24

1.1.24

£

Cash and cash equivalents

4,042,184

3,371,245

Year ended 31st December 2023

31.12.23

1.1.23

£

Cash and cash equivalents

3,371,245

2,751,404

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

Net cash

Cash at bank and in hand

3,371,245

670,939

4,042,184

3,371,245

670,939

4,042,184

Debt

Finance leases

(13,882

)

5,373

(8,509

)

Debts falling due within 1 year

(100,000

)

-

(100,000

)

Debts falling due after 1 year

(141,669

)

100,000

(41,669

)

(255,551

)

105,373

(150,178

)

Total

3,115,694

776,312

3,892,006

1.	STATUTORY INFORMATION

Ash Connect Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The principal trading address is 4 The Courtyard, Birling Road, Ryarsh, West Malling, ME19 5AA.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available under FRS 102:

- Only one reconciliation of the number of shares outstanding at the beginning and end of the year has been presented as the reconciliation for the group and the parent company would be identical;

- No statement of cash flows has been presented for the parent company;

- Disclosures in respect of the parent company's financial instruments have not been presented as equivalent disclosures have been provided in respect of the group as a whole; and

- No disclosures have been given for the aggregate remuneration of the key management personnel of the parent company as their remuneration is included in the totals for the group as a whole.

Basis of consolidation

The consolidated financial statements present the results of the company and its subsidiary ("the Group") as they formed a single entity. Intercompany transactions and balances between the group companies are therefore eliminated in full.

The consolidated financial statements incorporate the results of business combinations using the merger accounting method. In the balance sheet, the acquiree's identifiable assets and liabilities are initially recognised at their book values. The results of acquired operations are included in the consolidated profit and loss account from the beginning of the accounting period in which the purchase was completed and the comparatives restated accordingly.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Critical accounting judgements and key sources of estimation uncertainty

Estimates and judgements are continually evaluated by the directors of the group and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

The group makes estimates and assumptions concerning the future. Actual results may differ from these estimates. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or the period of the revision and future periods where the revision affects both current and future periods.

The directors of the group consider there to be no significant areas of judgements or key sources of estimation uncertainty.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue from construction contracts

Revenue and costs are recognised over time with reference to the stage of completion of the contract activity at the balance sheet date where the outcome of a contract can be estimated reliably. This is normally measured by surveys of work performed to date. Variations in contract work and claims are included to the extent that it is highly probable that they will result in revenue and they are capable of being reliably measured.

Where the outcome of a long term contract cannot be estimated reliably, contract revenue where recoverability is probable is recognised to the extent of contract costs incurred. The costs associated with fulfilling a contract are recognised as expenses in the period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognised as an expense immediately.

Tangible fixed assets

Tangible fixed assets are initially measured at cost. After initial recognition fixed assets are measured at cost less any accumulated depreciation and impairment.

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Plant and machinery - 25% reducing balance

Motor vehicles - 25% reducing balance

Financial instruments

The group enters into basic financial transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and investments in non-puttable ordinary shares.

Cash and cash equivalents comprises cash in hand, call and current balances with banks and similar institutions. This definition is also used for the cash flow statement.

Basic financial instruments that are receivable or payable within one year are initially measured at the undiscounted amount of the consideration expected. If receivable or payable after more than one year, basic financial instruments are initially measured at the present value of the future cash flows and subsequently at amortised cost using the effective interest method. If the arrangement constitutes a financing transaction, the financial instrument is measured initially at the present value of the future cash flows, discounted at a market rate of interest. They are subsequently carried at amortised cost, using the effective interest rate method.

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 profit and loss account.

Financial assets and liabilities are offset and the net amount reported in the Balance Sheet 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.

Financial liabilities and equity instruments are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Equity instruments issued by the company are recorded at the proceeds received.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Profit and Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

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

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2024

2023

£

Construction services

27,563,113

27,057,037

27,563,113

27,057,037

An analysis of turnover by geographical market is given below:

2024

2023

£

United Kingdom

27,563,113

27,057,037

27,563,113

27,057,037

4.	EMPLOYEES AND DIRECTORS

2024

2023

£

Wages and salaries

3,498,405

2,885,092

Social security costs

410,488

340,982

Other pension costs

403,380

308,455

4,312,273

3,534,529

The average number of employees during the year was as follows:

2024

2023

Production staff

37

30

Administrative staff

19

15

Management

11

9

67

54

5.	DIRECTORS' EMOLUMENTS

2024

2023

£

Directors' remuneration

108,616

107,663

Directors' pension contributions to money purchase schemes

92,541

88,039

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

Hire of plant and machinery

594,313

584,949

Other operating leases

49,863

20,144

Depreciation - owned assets

21,215

16,956

Profit on disposal of fixed assets

(1,376

)

(953

)

7.	AUDITORS' REMUNERATION

Fees payable to the group's auditors for the audits of the Parent and Subsidiaries are as follows:

2024

2023

£

Parent - Ash Connect Limited

8,214

6,975

Subsidiary - Ash Special Works Ltd

-

8,500

Subsidiary - Ash Contracting Limited

15,750

16,000

Subsidiary - Ash Capital Projects Ltd

8,500

-

Total auditors' remuneration

32,464

31,475

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

Bank interest

145

144

Bank loan interest

14,301

13,073

Other interest payable

-

16

Hire purchase

878

15,324

14,111

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

Current tax:

UK corporation tax

378,690

136,288

Tax on profit

378,690

136,288

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

Profit before tax

1,110,473

1,632,628

Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2023 - 23.520 %)

277,618

383,994

Effects of:

Expenses not deductible for tax purposes

41,858

13,322

Income not taxable for tax purposes

(112,500

)

(2,352

)

Depreciation in excess of capital allowances

47

3,035

Utilisation of tax losses

(17,979

)

(202,595

)

forward

Effects of elimination of intercompany transactions

193,955

(57,846

)

Group relief - losses surrendered

(4,309

)

(1,270

)

Total tax charge

378,690

136,288

10.	INDIVIDUAL PROFIT AND LOSS ACCOUNT

As permitted by Section 408 of the Companies Act 2006, the Profit and Loss Account of the parent company is not presented as part of these financial statements.

11.	TANGIBLE FIXED ASSETS

Group

Plant and

Motor

machinery

vehicles

Totals

£

COST

At 1st January 2024

60,000

218,582

278,582

Additions

-

37,500

Disposals

-

(24,875

)

(24,875

)

At 31st December 2024

60,000

231,207

291,207

DEPRECIATION

At 1st January 2024

55,557

172,160

227,717

Charge for year

1,110

20,105

21,215

Eliminated on disposal

-

(21,369

)

(21,369

)

At 31st December 2024

56,667

170,896

227,563

NET BOOK VALUE

At 31st December 2024

3,333

60,311

63,644

At 31st December 2023

4,443

46,422

50,865

The net book value of assets held under finance leases, included above, are as follows:

2023

2022

£

Motor vehicles

14,122

18,830

These same assets are pledged as security for the finance lease creditor.

12.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertaking

£

COST

At 1st January 2024

107,774

Additions

78

At 31st December 2024

107,852

NET BOOK VALUE

At 31st December 2024

107,852

At 31st December 2023

107,774

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Ash Contracting Limited

Registered office: 83 Cambridge Street, Pimlico, London, SW1V 4PS

Nature of business: Construction

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

1,946,229

1,906,260

Profit for the year

529,969

826,244

Ash Special Works Ltd

Registered office: 83 Cambridge Street, Pimlico, London, SW1V 4PS Company number: 13863721

Nature of business: Construction

%

Class of shares:

holding

Ordinary A

75.00

2024

2023

£

Aggregate capital and reserves

399,950

667,040

Profit for the year

184,927

428,461

Ash Capital Projects Ltd

Registered office: 83 Cambridge Street, Pimlico, London, SW1V 4PS Company number: 15132550

Nature of business: Construction

%

Class of shares:

holding

Ordinary A

51.00

2024

2023

£

Aggregate capital and reserves

300,823

273,607

Profit for the year

59,599

273,507

Ash Capital Projects Ltd was incorporated on 12th September 2023 and began trading from the same date. Upon incorporation Ash Connect Ltd owned 75% of the share capital, but following a share allotment in February 2024 control was diluted to 51%.

Ash Special Works Ltd and Ash Capital Projects Ltd are exempt from the requirements of the Companies Act relating to the audit of individual statements taking advantage of the exemption under s479A-C of the Companies Act 2006.

The guarantee given under s479C has the effect that:

- Ash Connect Limited (the parent undertaking) guarantees all outstanding liabilities to which Ash Special Works Ltd and Ash Capital Projects Ltd are subject at the end of 31 December 2024 until they are satisfied in full; and

- the guarantee is enforceable against the parent undertaking by any person to whom the subsidiaries are liable in respect of those liabilities.

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

2024

2023

£

Trade debtors

1,316,850

2,552,646

Accrued income and amounts

recoverable on contracts

1,312,126

1,594,499

Other debtors

34,000

44,822

Directors' current accounts

1,358

Prepayments

22,662

16,743

Sales retention control

888,086

974,720

3,575,082

5,184,788

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2024

2023

2024

2023

£

Bank loans and overdrafts (see note 16)

100,000

-

Finance leases (see note 17)

5,374

-

Trade creditors

121,474

357,034

-

Tax

378,690

136,288

-

Social security and other taxes

239,046

164,045

-

VAT

2,118,139

2,217,579

-

Other creditors

42,254

22,883

228

150

Subcontractor invoices

1,168,000

1,724,340

-

Subcontractors retention

control

761,017

760,051

-

Accruals and deferred income

82,887

67,617

12,000

10,530

5,016,881

5,555,211

12,228

10,680

15.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group

2024

2023

£

Bank loans (see note 16)

41,669

141,669

Finance leases (see note 17)

3,135

8,508

44,804

150,177

16.

LOANS

An analysis of the maturity of loans is given below:

Group

2024

2023

£

Amounts falling due within one year or on

demand:

Bank loans

100,000

Amounts falling due between one and two

years:

Bank loans

41,669

100,000

Amounts falling due between two and five

years:

Bank loans

-

41,669

17.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Finance leases

2024

2023

£

Net obligations repayable:

Within one year

5,374

Between one and five years

3,134

8,508

13,882

Non-cancellable operating
leases

2024

2023

£

Net obligations repayable:

Within one year

123,981

45,000

Between one and five years

202,323

16,383

In more than five years

107,500

433,804

61,383

18.	SECURED DEBTS

The following secured debts are included within creditors:

Group

2024

2023

£

Bank loans

141,669

241,669

Finance leases

8,509

13,882

150,178

255,551

The bank loans are secured by way of a fixed and floating charge over all assets of the group with negative pledge over the properties.

The finance lease creditor is secured on the assets they relate to.

19.	PROVISIONS FOR LIABILITIES

Group

2024

2023

£

Other provisions

-

77,173

Aggregate amounts

-

77,173

20.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

60

Ordinary 'A'

£1

60

40

Ordinary 'B'

£1

40

100

21.

RESERVES

Group

Retained

Share

Revaluation

Merger

earnings

premium

reserve

Totals

£

At 1st January 2024

1,690,303

107,623

692,924

173,976

2,664,826

Profit for the year

523,595

Capital contributions to

Employee Ownership Trust

(905,000

)

-

(905,000

)

At 31st December 2024

1,308,898

107,623

692,924

173,976

2,283,421

Company

Retained

Share

earnings

premium

Totals

£

At 1st January 2024

(4,267

)

107,623

103,356

Profit for the year

436,438

Capital contributions to

Employee Ownership Trust

(415,000

)

-

(415,000

)

At 31st December 2024

17,171

107,623

124,794

22.	OTHER FINANCIAL COMMITMENTS

Ash Connect Limited was acquired by Ash Connect EOT on behalf of the Ash Connect Employee Ownership Trust for a total sum of £5,574,000 on 1 January 2021.The total consideration consisted of initial payments, made by this company and included in these financial statements, and an element of deferred consideration which will be paid in monthly instalments by Ash Contracting Limited, the subsidiary trading company.The obligation to make future payments of the deferred consideration lies with the trust and so the liability for future payments has not been recognised by the group. During the year the group paid £905,000 to the Ash Connect Employee Ownership Trust.

23.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to a director subsisted during the years ended 31st December 2024 and 31st December 2023:

2024

2023

£

D Cooper

Balance outstanding at start of year

1,358

1,571

Amounts repaid

-

(213

)

Amounts written off

-

Amounts waived

-

Balance outstanding at end of year

-

1,358

24.	ULTIMATE CONTROLLING PARTY

The controlling party is Ash Connect EOT Limited.

The Ash Connect Employee Ownership Trust is the ultimate controlling party by virtue of its ownership of Ash

Connect EOT Limited