Company Registration Number: 04373558
FOR THE YEAR ENDED 31 DECEMBER 2024
NEWAYS ASSOCIATES LIMITED
COMPANY INFORMATION
NEWAYS ASSOCIATES LIMITED
CONTENTS
NEWAYS ASSOCIATES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their strategic report for the year ended 31 December 2024.
Neways Associates Limited's (the “Company’) principal activity is building and structural repairs and refurbishments. The Company typically supports insurance companies in providing effective repair to damaged property under policies held with them.
The key performance indicators used by the company to monitor performance are as follows:
Neways achieved an increase in turnover of 69% compared to the year ended 31 December 2023. This increase is largely due to a weather surge which affected our local area.
The Company continues to invest in its people and equipment and aims to develop a culture of continuous improvement with the goal of improving the services offered to customers, reducing the envionmental impact of the business and for growth. The Company continues to have strong long-term relationships with its key suppliers and sub-contractors.
The Company continues to make great efforts to improve its operational efficiency and to reduce waste in the business. Furthermore, operational improvements have helped drive greater completion of projects, and accordingly with an improved contract monitoring progress in relation to revenue recognition.
Operating loss for the year ended 31 December 2024 amounted to £1,187,679 which decreased from an operating loss of £208,286 for the year ended 31 December 2023. The loss for current year is largely due to new charges introduced by group in 2024 amounting to £690,778.
The Company's average debtor days increased to 107 days (2023: 79 days), reflecting the external challenges faced in the market and wider economy.
The key performance indicators used by the company to monitor performance are as follows:
Neways achieved an increase in turnover of 69% compared to the year ended 31 December 2023. This increase is largely due to a weather surge which affected our local area.
The Company continues to invest in its people and equipment and aims to develop a culture of continuous improvement with the goal of improving the services offered to customers, reducing the envionmental impact of the business and for growth. The Company continues to have strong long-term relationships with its key suppliers and sub-contractors.
The Company continues to make great efforts to improve its operational efficiency and to reduce waste in the business. Furthermore, operational improvements have helped drive greater completion of projects, and accordingly with an improved contract monitoring progress in relation to revenue recognition.
Operating loss for the year ended 31 December 2024 amounted to £1,187,679 which decreased from an operating loss of £208,286 for the year ended 31 December 2023. The loss for current year is largely due to new charges introduced by group in 2024 amounting to £690,778.
The Company's average debtor days increased to 107 days (2023: 79 days), reflecting the external challenges faced in the market and wider economy.
The principal risks and uncertainties facing the company are primarily competitive, credit and liquidity risks. The company is also dependent on weather patterns.
Competitive risks
The Company is dependent on major customers, therefore future performance would be affected by the loss of a key account to a competitor. We work continuously with our current customers and increasing our customer listing to mitigate this risk.
Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge on obligation. Company policies are aimed at minimising such losses.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets throughout the company.
Competitive risks
The Company is dependent on major customers, therefore future performance would be affected by the loss of a key account to a competitor. We work continuously with our current customers and increasing our customer listing to mitigate this risk.
Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for that other party by failing to discharge on obligation. Company policies are aimed at minimising such losses.
Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The company aims to mitigate liquidity risk by managing cash generation by its operations and applying cash collection targets throughout the company.
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NEWAYS ASSOCIATES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
This report was approved by the board and signed on its behalf.
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NEWAYS ASSOCIATES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
The directors present their report and the financial statements for the year ended 31 December 2024.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 ‘Reduced Disclosure Framework’. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies 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 loss for the year, after taxation, amounted to £1,218,743 (2023 - loss: £580,990).
Dividends amounting to £Nil will be distributed for the year ended 31 December 2024 (2023: £Nil)
The director who served during the year was:
Kristian Lenndard (appointed 2 January 2025)
Robin Petersen (appointed 7 January 2025)
Peter Brumby (resigned 2 January 2025)
Axel Jorg Graenitz (resigned 7 January 2025)
Ian Brian Bordie (resigned 17 May 2024)
Robin Petersen (appointed 7 January 2025)
Peter Brumby (resigned 2 January 2025)
Axel Jorg Graenitz (resigned 7 January 2025)
Ian Brian Bordie (resigned 17 May 2024)
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NEWAYS ASSOCIATES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
The Company has continued to develop in all sectors. It consistently invests in both its people and equipment in support of developing these and new areas.
The Company adopts a structured approach to business development and applies great effort in understanding the key current drivers of its custorers and anticipating future ones.
The Company fosters an open and leaming cullure and have highly engaged and molivated employees. The culture is one of innovation delivering volued benefit fo the key customer groups. In insurance, this tokes the form of improving the end customer journey. expanding.the service. scope, reducing claim duration and overall claim cost.
The Company is seeking to offer increased services through the wider Polygon UK network.
On 31 March 2025 the Company merged with another subsidiary company of R3 Polygon UK Limited, F.S.H. (Group) Limited and with effect from 1 April 2025 the combined business now trades as Neways Associates.
The Company adopts a structured approach to business development and applies great effort in understanding the key current drivers of its custorers and anticipating future ones.
The Company fosters an open and leaming cullure and have highly engaged and molivated employees. The culture is one of innovation delivering volued benefit fo the key customer groups. In insurance, this tokes the form of improving the end customer journey. expanding.the service. scope, reducing claim duration and overall claim cost.
The Company is seeking to offer increased services through the wider Polygon UK network.
On 31 March 2025 the Company merged with another subsidiary company of R3 Polygon UK Limited, F.S.H. (Group) Limited and with effect from 1 April 2025 the combined business now trades as Neways Associates.
The Company finances its activities with cash. Other financial assets and liabilities, such as trade debtors and trade creditors arise directly from the Company's operating activities.
Financial instruments give rise to credit risk and liquidity risk. Information on Company management of these
risks can be found in the strategic report.
Financial instruments give rise to credit risk and liquidity risk. Information on Company management of these
risks can be found in the strategic report.
The Company has granted an indemnity to one or more of its directors against liabillty in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity provision remains in force as at the date of approving the directors' report.
It is the Company’s policy that payments to suppliers are made in accordance with those terms and conditions agreed between the Company and its suppliers, provided that all trading terms and conditions have been complied with.
The Company's average credit payment period at 31 December 2024 was 45 days (2023: 19 days).
The Company's average credit payment period at 31 December 2024 was 45 days (2023: 19 days).
The Company has maintained a healthy order book throughout the year, but significant increases in core costs and work order processing requirements has impacted overall profitability. Access to cash remains strong through the parent company group facilities. The Company continues to adopt a safety-first approach and regularly consults and communicates with its teams. The Company is focussed on delivering quality services and enhancing outcomes for its clients, thereby maintaining high quality customer relationships.
The merger with F.S.H. (Group) Limited, after the year end has strengthened the financial position of the Company, returning the business to profit and providing a more robust balance sheet.
After making due enquiries and considering the impact of increasing utilities and wage pressures, and the support available from the parent company described above, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. The parent company’s assessment of going concern and the current trading environment for the company and their forecast for 2025 and future periods. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
The merger with F.S.H. (Group) Limited, after the year end has strengthened the financial position of the Company, returning the business to profit and providing a more robust balance sheet.
After making due enquiries and considering the impact of increasing utilities and wage pressures, and the support available from the parent company described above, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. The parent company’s assessment of going concern and the current trading environment for the company and their forecast for 2025 and future periods. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
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NEWAYS ASSOCIATES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
Disabled employees
The company gives full consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion.
Where existing employees become disabled, it is the Company's policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve
this aim.
Employee Involvement
The Company operates a structured framework for employee information and consultation. During the year the policy of providing employees with information about the Company has taken place through the use of newsletters and the Company’s annual employee conference. Employees are encouraged to make suggestions on ways to improve the business and through the use of steering and project groups and management ensures that employees have an opportunity at every level to impact on how the business is managed. All employees participate in a survey annually to seek ways to measure and improve employee engagement, team effectiveness and address any concerns.
The Company operates a sports and social committee run by employees which supports various charitable works as selected by employees themselves.
The Company launched an environmental volunteer group with funds from the Company to encourage a deeper sustainable culture within the business.
The company gives full consideration to applications for employment from disabled persons where the candidate’s particular aptitudes and abilities are consistent with adequately meeting the requirements of the job. Opportunities are available to disabled employees for training, career development and promotion.
Where existing employees become disabled, it is the Company's policy to provide continuing employment wherever practicable in the same or an alternative position and to provide appropriate training to achieve
this aim.
Employee Involvement
The Company operates a structured framework for employee information and consultation. During the year the policy of providing employees with information about the Company has taken place through the use of newsletters and the Company’s annual employee conference. Employees are encouraged to make suggestions on ways to improve the business and through the use of steering and project groups and management ensures that employees have an opportunity at every level to impact on how the business is managed. All employees participate in a survey annually to seek ways to measure and improve employee engagement, team effectiveness and address any concerns.
The Company operates a sports and social committee run by employees which supports various charitable works as selected by employees themselves.
The Company launched an environmental volunteer group with funds from the Company to encourage a deeper sustainable culture within the business.
The Company's previous auditor, TC Group, was removed as auditor by the Company. The Company appointed Armstrong Watson Audit Limited as the new auditor, effective from 31 December 2024. The Company has notified TC Group of this change.
This report was approved by the board and signed on its behalf.
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NEWAYS ASSOCIATES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWAYS ASSOCIATES LIMITED
We have audited the financial statements of Neways Associates Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and 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 Financial Reporting Standard 101 ‘Reduced Disclosure Framework’ (United Kingdom Generally Accepted Accounting Practice).
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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.
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.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
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NEWAYS ASSOCIATES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWAYS ASSOCIATES LIMITED (CONTINUED)
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.
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.
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NEWAYS ASSOCIATES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWAYS ASSOCIATES LIMITED (CONTINUED)
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 Auditors' 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:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
∙We obtained an understanding of laws and regulations that affect the company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the UK Companies Act, tax legislation and occupational health and employment legislation.
∙We enquired of the directors, reviewed correspondence with HMRC and reviewed directors meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the directors have in place to ensure compliance.
∙We gained an understanding of the controls that the directors have in place to prevent and detect fraud. We enquired of the directors about any incidences of fraud that had taken place during the accounting period.
∙The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: revenue recognition and management override of controls.
∙We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.We enquired of the directors and third-party advisors about actual and potential litigation and claims.
∙We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
∙In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
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.
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 Auditors' report.
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NEWAYS ASSOCIATES LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF NEWAYS ASSOCIATES LIMITED (CONTINUED)
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 Auditors' 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.
for and on behalf of
Chartered Accountants & Statutory Auditors
Skipton
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NEWAYS ASSOCIATES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
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NEWAYS ASSOCIATES LIMITED
REGISTERED NUMBER: 04373558
BALANCE SHEET
AS AT 31 DECEMBER 2024
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NEWAYS ASSOCIATES LIMITED
REGISTERED NUMBER: 04373558
BALANCE SHEET (CONTINUED)
AS AT 31 DECEMBER 2024
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 29 form part of these financial statements.
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NEWAYS ASSOCIATES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
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NEWAYS ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Neways Associates Limited (the "Company") is a private company limited by shares and is incorporated, domiciled and registered in England in the UK. The registered number is 04373558 and the registered address is Blackstone Road, Stukely Meadowns Industrial, Huntingdon, Cambridgeshire PE29 6EE.
The Company's principal activity during the period was building and structural repairs and refurbishments. The Company has prepared its financial statements in sterling.
The Company's principal activity during the period was building and structural repairs and refurbishments. The Company has prepared its financial statements in sterling.
2.Accounting policies
The preparation of financial statements in compliance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations
∙the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
∙the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers
∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
- paragraph 79(a)(iv) of IAS 1;
- paragraph 73(e) of IAS 16 Property, Plant and Equipment;
- paragraph 118(e) of IAS 38 Intangible Assets;
∙the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements of paragraph 74A(b) of IAS 16
∙the requirements of paragraph 17 and 18A of IAS 24 Related Party Disclosures
∙the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
∙the requirements of paragraph 88C and 88D of IAS 12 Income Taxes.
This information is included in the consolidated financial statements of R3 Polygon UK Limited as at 31 December 2024 and these financial statements may be obtained from Blackstone Road, Stukeley Meadows Industrial, Huntingdon, Cambridgeshire, PE29 6EE.
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NEWAYS ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
The Company has maintained a healthy order book throughout the year, but significant increases in core costs and work order processing requirements has impacted overall profitability. Access to cash remains strong through the parent company group facilities. The Company continues to adopt a safety-first approach and regularly consults and communicates with its teams. The Company is focussed on delivering quality services and enhancing outcomes for its clients, thereby maintaining high quality customer relationships.
After making due enquiries and considering the impact of increasing utilities and wage pressures, and the support available from the parent company described above, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. The parent company’s assessment of going concern and the current trading environment for the company and their forecast for 2025 and future periods. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
After making due enquiries and considering the impact of increasing utilities and wage pressures, and the support available from the parent company described above, the directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for at least 12 months from the date of approval of these financial statements. The parent company’s assessment of going concern and the current trading environment for the company and their forecast for 2025 and future periods. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
Revenue from operating activities of the Company are measured at the fair value of the; consideration received or receivable, with consideration of current payment terms, excluding taxes and fees.
Revenue from services is recognised when it is probable that the economic benefits associated with the transaction will flow to the Company and the revenue can. be determined in a reliable way.
When the outcome of a project involving the rendering of services can be estimated reliably, revenue associated with the transaction is recognised by reference to the stage of completion of the projects-at the end of the reporting period. The stage of completion is normally measured as the proportion of costs incurred to date in relation to the estimated total costs of the project. If reliable estimation of stage of completion cannot be made, revenue is not recognised until the project is finished. The same goes for smaller projects. In loss making projects where it is not likely that the customer will compensate the Company for rendered services, the loss is recognised immediately.
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NEWAYS ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
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NEWAYS ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
An item of tangible fixed assets is derecognised upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising, on de-recognition of the asset is included in the profit and loss in the period of de-recognition.
Non-derivative financial instruments comprise investments in subsidiaries, trade and other debtors, cash at bank and in hand and trade and other creditors.
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NEWAYS ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Financial assets and liabilities are offset and The net ornount reported in the balance sheet when there is on enforceable right to set off the recognised amounts and there is on intention to settle on o net basis or to reolise the asset and settle the liability simultaneously.
Contract assets comprise the unbilled proportion of contracts where performance obligations have been met. The meeting of performance obligations is evenly spread over the life of the individual project delivered by the Company in proportion to the costs incurred under the percentage of completion basis.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
The Company recognises financial instruments when it becomes a party to the contractual arrangements of the instrument. Financial instruments are de-recognised when they are discharged or when the contractual terms expire. The Company's accounting policies in respect of financial instruments transactions are explained below:
Financial assets and financial liabilities are initially measured at fair value.
Financial assets
All recognised financial assets are subsequently measured in their entirety at either fair value or amortised cost, depending on the classification of the financial assets.
Fair value through profit or loss
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NEWAYS ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
2.Accounting policies (continued)
Impairment of financial assets
Fair value through profit or loss
At amortised cost
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NEWAYS ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in The financial statements;
Operating lease commitments
The Company has entered into commercial property leases and other equipment leases as a lessee. The classification of such leases as operating or finance leases requires the Company to determine, based on on evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the balance sheet.
Further, the requirement to provide for dilapidations in regard to leased properties requires judgement in the level of expenditure required at the end of the lease which may be a number of years in the future.
Taxation
Mangement judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies.
Contract stage of completion
Where contracts are ongoing at the period end the directors are required to consider the stage of completion and recognise revenue accordingly. As such this requires judgment as to the cost to complete and therefore completion percentage. Management use project accounting to perform said calculation.
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NEWAYS ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NEWAYS ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
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NEWAYS ASSOCIATES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
10.Taxation (continued)
There were no factors that may affect future tax charges.
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