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Registered number: 04826578









Q.F.S. SCAFFOLDING LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
Q.F.S. SCAFFOLDING LIMITED
 
 
COMPANY INFORMATION


Director
K J Clifford 




Company secretary
K Baker



Registered number
04826578



Registered office
Westminster House
Denton Wharf

Mark Lane

Gravesend

Kent

DA12 2PL




Independent auditors
White Hart Associates (London) Limited
Chartered Accountants and Statutory Auditors

2nd Floor, Nucleus House

2 Lower Mortlake Road

Richmond

TW9 2JA





 
Q.F.S. SCAFFOLDING LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Director's Report
3 - 4
Independent Auditors' Report
5 - 9
Income Statement
10
Statement of Comprehensive Income
11
Statement of Financial Position
12
Statement of Changes in Equity
13
Statement of Cash Flows
14 - 15
Notes to the Financial Statements
16 - 32


 
Q.F.S. SCAFFOLDING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The directors are pleased to present their strategic report for the year ended 31 December 2024.

Business review
 
In 2024, the Company delivered statutory turnover of £3,867,937 (2023: £4,190,351) and a gross profit of £627,009 (2023: £1,421,344), resulting in a loss before tax of £1,873,730 (2023: £1,840,122).
Despite a softer trading year, cash generated from operating activities remained positive at £428,199 (2023: £785,828), demonstrating the underlying strength of our operations.

Key Performance Indicators
The directors are of the opinion that the use of non-financial KPI’s is not necessary to obtain an understanding of the companies performance.  Management monitor the following financial KPI’S at a company level:





2024
2023
£
£
Turnover

3,867,937

4,190,351
 
Gross profit margin

16.2%

33.92%
 


.



While gross margin reduced in the year, the pipeline for 2025 is expected to benefit from improved project mix and cost control measures already in place.

Development and performance
 
The trading environment remained competitive, with inflationary pressures influencing costs and certain projects experiencing start date delays. While turnover reduced, these timing differences represent deferred — rather than lost — revenue, with many projects now confirmed in the forward order book.
Encouragingly, by the time of signing these accounts, market confidence within the construction sector had improved, with greater stability in tender opportunities and client commitments for the year ahead.

Page 1

 
Q.F.S. SCAFFOLDING LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Principal risks and uncertainties
 
The Company continues to monitor two principal risks:
•Broader economic uncertainty.
•Delays in the approval process from the Building Safety Regulator, which has shifted revenue expected in 2024 into 2025 and 2026.
The Board maintains a proactive approach to managing these risks, ensuring readiness to capitalise when projects move forward.
Commercial Relationships
We place strong emphasis on developing and maintaining client relationships. The management team meets regularly with clients at both operational and strategic levels, building trust, creating opportunities, and ensuring prompt resolution of any commercial matters. This approach also supports credit control and reduces the risk of bad debts.
Credit Risk
Our policy of carrying out comprehensive credit checks on all new and existing customers before granting credit terms remains in place and continues to protect the Company’s position.
Financial Risk Management
Day-to-day operational risks are carefully monitored and mitigated through Board-approved policies, implemented effectively across the business.
Liquidity Risk
The parent company continues to provide robust financial backing, ensuring we have the working capital required to fund operations and support future growth initiatives.

Outlook

With a strengthened order book, improved market sentiment, and continued support from our parent company, the Board remains confident in the Company’s ability to deliver sustainable long-term growth.


This report was approved by the board on 2 September 2025 and signed on its behalf.



K J Clifford
Director

Page 2

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The director presents his report and the financial statements for the year ended 31 December 2024.

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he is 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 director is required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are also responsible for the maintenance and integrity of the corporate and financial information included on the Company's website.

Principal activity

The Company's principal activity during the year continued to be that of providing scaffolding services to developers and large building companies.

Results and dividends

The loss for the year, after taxation, amounted to £1,955,059 (2023 - loss £1,866,218).

Director

The director who served during the year was:

K J Clifford 

Future developments

The Company continues to target new customers while maintaining strong relationships with its existing client base. Due to an increase in the order book, the Company plans to appoint a Contracts Director to strengthen internal controls and support growth.

Page 3

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as  is aware, there is no relevant audit information of which the Company's auditors are unaware, and

 has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

Since the year-end, there have been no significant events affecting the Company, except for delays in the commencement of certain projects due to the requirements of the Building Safety Act.

Auditors

The auditorsWhite Hart Associates (London) Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 2 September 2025 and signed on its behalf.
 





K J Clifford
Director

Page 4

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.F.S. SCAFFOLDING LIMITED
 

Opinion


We have audited the financial statements of Q.F.S. Scaffolding Limited (the 'Company') for the year ended 31 December 2024, which comprise the Income Statement, the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Cash Flows, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 31 December 2024 and of its loss 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 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.


Page 5

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.F.S. SCAFFOLDING LIMITED (CONTINUED)


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.



Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Strategic Report and the Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.


Page 6

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.F.S. SCAFFOLDING LIMITED (CONTINUED)


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Director's Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's 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 Director's Responsibilities Statement set out on page 3, the director is 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 director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the director is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 7

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.F.S. SCAFFOLDING LIMITED (CONTINUED)


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 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:

- We exercise professional judgment and maintain professional scepticism throughout the audit;
- We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the deliberate override of internal control; 
- We obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control;
- We evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made;
- We assess the risk of management override of controls, including testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business;
- We request and review the minutes of management meetings, and assess any matters identified not already provided for or disclosed that may materially impact the financial statements.


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.


Page 8

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.F.S. SCAFFOLDING LIMITED (CONTINUED)


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 2006Our 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.





M S Caldicott ACA FCCA CTA (Senior Statutory Auditor)
  
for and on behalf of
White Hart Associates (London) Limited
 
Chartered Accountants and Statutory Auditors
  
2nd Floor, Nucleus House
2 Lower Mortlake Road
Richmond
TW9 2JA

2 September 2025
Page 9

 
Q.F.S. SCAFFOLDING LIMITED
 
 
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
3,867,937
4,190,351

Cost of sales
  
(3,240,928)
(2,769,007)

Gross profit
  
627,009
1,421,344

Administrative expenses
  
(2,487,206)
(3,029,762)

Operating loss
 5 
(1,860,197)
(1,608,418)

Interest receivable and similar income
 8 
12,605
-

Interest payable and similar expenses
 9 
(26,138)
(231,704)

Loss before tax
  
(1,873,730)
(1,840,122)

Tax on loss
 10 
(81,329)
(26,096)

Loss for the financial year
  
(1,955,059)
(1,866,218)

The notes on pages 16 to 32 form part of these financial statements.

Page 10

 
Q.F.S. SCAFFOLDING LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£


Loss for the financial year

  

(1,955,059)
(1,866,218)

Other comprehensive income
  


Capital contribution movement on intercompany loan
  
(117,340)
134,549

Other comprehensive income for the year
  
(117,340)
134,549

Total comprehensive income for the year
  
(2,072,399)
(1,731,669)

The notes on pages 16 to 32 form part of these financial statements.

Page 11

 
Q.F.S. SCAFFOLDING LIMITED
REGISTERED NUMBER: 04826578

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
2,570,933
3,050,298

  
2,570,933
3,050,298

Current assets
  

Debtors: amounts falling due within one year
 12 
1,028,940
4,067,395

Cash at bank and in hand
 13 
140,351
122,177

  
1,169,291
4,189,572

Creditors: amounts falling due within one year
 14 
(1,176,141)
(1,629,485)

Net current (liabilities)/assets
  
 
 
(6,850)
 
 
2,560,087

Total assets less current liabilities
  
2,564,083
5,610,385

Creditors: amounts falling due after more than one year
 15 
(1,295,885)
(2,426,117)

Provisions for liabilities
  

Deferred tax
 17 
(412,043)
(330,714)

Other provisions
 18 
(275,000)
(200,000)

  
 
 
(687,043)
 
 
(530,714)

Net assets
  
581,155
2,653,554


Capital and reserves
  

Called up share capital 
 19 
1,000,000
1,000,000

Other reserves
 20 
174,570
291,910

Profit and loss account
 20 
(593,415)
1,361,644

  
581,155
2,653,554


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 September 2025.




K J Clifford
Director

The notes on pages 16 to 32 form part of these financial statements.

Page 12

 
Q.F.S. SCAFFOLDING LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Capital contribution reserve
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023
1,000,000
157,361
3,227,862
4,385,223


Comprehensive income for the year

Loss for the year
-
-
(1,866,218)
(1,866,218)

Capital contribution movement on intercompany loan
-
134,549
-
134,549



At 1 January 2024
1,000,000
291,910
1,361,644
2,653,554


Comprehensive income for the year

Loss for the year
-
-
(1,955,059)
(1,955,059)

Capital contribution movement on intercompany loan
-
(117,340)
-
(117,340)


At 31 December 2024
1,000,000
174,570
(593,415)
581,155


The notes on pages 16 to 32 form part of these financial statements.

Page 13

 
Q.F.S. SCAFFOLDING LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Loss for the financial year
(1,955,059)
(1,866,218)

Adjustments for:

Depreciation of tangible assets
493,365
519,680

Profit on disposal of tangible assets
(2,820)
(3,664)

Interest paid
26,138
231,704

Interest received
(12,605)
-

Taxation charge
81,329
26,096

Decrease in debtors
3,038,575
355,268

Increase in amounts owed by groups
(120)
(688)

(Decrease)/increase in creditors
(92,276)
60,917

(Decrease)/ increase in amounts owed to groups
(1,105,988)
1,268,184

Increase in provisions
75,000
60,000

Capital contribution movement on intercompany loan
(117,340)
134,549

Net cash generated from operating activities

428,199
785,828


Cash flows from investing activities

Purchase of tangible fixed assets
(14,000)
(24,806)

Sale of tangible fixed assets
2,820
3,702

Interest received
12,605
-

HP interest paid
(2,335)
(2,813)

Net cash from investing activities

(910)
(23,917)
Page 14

 
Q.F.S. SCAFFOLDING LIMITED
 

STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


2024
2023

£
£



Cash flows from financing activities

Repayment of loans
(360,000)
(360,000)

Repayment of finance leases
(25,312)
(33,750)

Interest paid
(23,803)
(228,891)

Net cash used in financing activities
(409,115)
(622,641)

Net increase in cash and cash equivalents
18,174
139,270

Cash and cash equivalents at beginning of year
122,177
(17,093)

Cash and cash equivalents at the end of year
140,351
122,177


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
140,351
122,177

140,351
122,177


The notes on pages 16 to 32 form part of these financial statements.

Page 15

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Q.F.S. Scaffolding Limited is a private company limited by shares and incorporated in England under registered number 04826578. Its registered office and principal place of business is at Westminster House, Denton Wharf, Mark Lane, Gravesend, Kent, DA12 2PL.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

Company management and the directors, based on the current trading and the forward budgets/forecasts prepared, have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future, being at least the following
12 months from the signing of these financial statements.
For this reason, and with the Company continuing to receive the full support of the Group, the directors continue to adopt the going concern basis in the financial statements. 

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges.

Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Income Statement within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.

Page 16

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Revenue

Turnover represents the fair value of consideration received or receivable, net of value added tax, rebates and discounts, of goods provided to customers and work carried out in respect of services provided to customers.
Turnover arises from increases in valuations on contracts and is normally determined by external valuations. It is the gross value of work carried out for the period to the balance sheet date (including retentions) but excludes claims until they are actually certified.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

Page 17

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


Page 18

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.10

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

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:

Yard improvements
-
over 20 years
Plant and machinery
-
over 1, 2, 3, 4, 5, 10 or 15 years
Motor vehicles
-
over 2 years
Office equipment
-
over 3 years

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.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.13

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 19

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 20

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.15

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally 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.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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 the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

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

Page 21

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgments, 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 according estimates are recognised in the period in which the estimates 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.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Services rendered
3,867,937
4,190,351

3,867,937
4,190,351


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
3,867,937
4,190,351

3,867,937
4,190,351



5.


Operating loss

The operating loss is stated after charging:

2024
2023
£
£

Exchange differences
83,959
-

Page 22

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
19,950
19,950


7.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
2,962,228
2,998,977

Social security costs
301,370
291,202

Cost of defined contribution scheme
117,061
120,903

3,380,659
3,411,082


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Administration
13
17



Distribution and installation
42
36

55
53


8.


Interest receivable

2024
2023
£
£


Other interest receivable
12,605
-

12,605
-

Page 23

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

9.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
23,803
35,824

Other loan interest payable
-
193,067

Finance leases and hire purchase contracts
2,335
2,813

26,138
231,704


10.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
81,329
26,096

Total deferred tax
81,329
26,096


Tax on loss
81,329
26,096
Page 24

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023
£
£


Loss on ordinary activities before tax
(1,873,730)
(1,840,122)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
(468,433)
(460,031)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
11,153
10,284

Capital allowances for year in excess of depreciation
78,859
73,586

Short-term timing difference leading to deferred tax
81,329
26,096

Unrelieved tax losses carried forward
378,421
376,161

Total tax charge for the year
81,329
26,096


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 25

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Tangible fixed assets





Yard improvements
Plant and machinery
Total

£
£
£



Cost


At 1 January 2024
475,439
8,249,487
8,724,926


Additions
-
14,000
14,000


Disposals
-
(650,740)
(650,740)



At 31 December 2024

475,439
7,612,747
8,088,186



Depreciation


At 1 January 2024
256,509
5,418,119
5,674,628


Charge for the year on owned assets
24,122
469,243
493,365


Disposals
-
(650,740)
(650,740)



At 31 December 2024

280,631
5,236,622
5,517,253



Net book value



At 31 December 2024
194,808
2,376,125
2,570,933



At 31 December 2023
218,930
2,831,368
3,050,298




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold
194,808
218,930

194,808
218,930


Page 26

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

           11.Tangible fixed assets (continued)

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


2024
2023
£
£



Plant and machinery
-
28,125

-
28,125


12.


Debtors

2024
2023
£
£


Trade debtors
799,344
3,827,123

Amounts owed by group undertakings
149,210
149,090

Other debtors
40,216
48,697

Prepayments and accrued income
40,170
42,485

1,028,940
4,067,395



13.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
140,351
122,177

140,351
122,177


Page 27

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank loans
360,000
360,000

Trade creditors
106,554
154,094

Amounts owed to group undertakings
499,508
835,264

Other taxation and social security
87,985
72,584

Obligations under finance lease and hire purchase contracts
-
25,312

Other creditors
73,846
24,260

Accruals and deferred income
48,248
157,971

1,176,141
1,629,485



15.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Bank loans
150,000
510,000

Amounts owed to group undertakings
1,145,885
1,916,117

1,295,885
2,426,117


Page 28

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
360,000
360,000


360,000
360,000

Amounts falling due 1-2 years

Bank loans
150,000
360,000


150,000
360,000

Amounts falling due 2-5 years

Bank loans
-
150,000


-
150,000


510,000
870,000


Bank loans represent a loan from the Company's bankers Lloyds Bank Plc, amounting to £1,800,000 and drawn down in May 2020, supported by the Coronavirus Business Interruption Loan Scheme (CBILS). The loan is for a 6 year term with no capital repayments for the the first 12 months. There is also no interest payable for the first 12 months and an interest rate of 2.56% per annum charged over the base rate thereafter.

Page 29

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Deferred taxation




2024
2023


£

£






At beginning of year
(330,714)
(304,618)


Charged to profit or loss
(81,329)
(26,096)



At end of year
(412,043)
(330,714)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(412,043)
(481,812)

Tax losses carried forward
-
151,098

(412,043)
(330,714)


18.


Provisions




Other provision

£





At 1 January 2024
200,000


Charged to profit or loss
75,000



At 31 December 2024
275,000


19.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,000,000 (2023 - 1,000,000) Ordinary shares of £1.00 each
1,000,000
1,000,000


Page 30

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

20.


Reserves

Other reserves

The capital contribution reserve is an equity account created to recognise the difference in the intercompany loan received from the immediate holding company, Westminster Gulf W.L.L., on its restatement at amortised cost as required under FRS 102. The actual terms of the loan are that it is repayable in equal annual instalments, at an interest rate of 4% per annum, by 31 December 2027 (previously 31 December 2026). It is considered however that an interest rate of 9.5% per annum more accurately represents a market rate of interest and the balance at each year-end has thus been restated to reflect this.

Profit and loss account

The profit and loss account represents the net distributable reserves of the company at the date of the statement of financial position.


21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £117,061 (2023: £120,903). Contributions totalling £3,985 (2023: £1,432) were payable to the fund at the reporting date.


22.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
208,866
198,814

Later than 1 year and not later than 5 years
313,534
304,645

Later than 5 years
25,387
70,708

547,787
574,167


23.Finance lease commitments

The Company did not have any finance lease committments existing at the reporting date in respect of contracts entered into but whose inception occurs after the reporting date.

Page 31

 
Q.F.S. SCAFFOLDING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

24.


Related party transactions

The Company has taken advantage of the exemption from disclosing transaction with the group companies on the basis that the company is a wholly owned member.


25.


Mortgages and charges

A debenture created by the Company on 30 March 2023, for securing all monies due or to become due from the Company to Lloyds Bank Plc on any account whatsoever, was registered at Companies House on 30 March 2023.


26.


Controlling party

The immediate holding company is Westminster Gulf W.L.L., a company registered in the Kingdom of Bahrain and located at P.O. Box 31238, Diraz, Bahrain.
The ultimate holding company is Mohammed Jalal and Sons Co. W.L.L., a company registered in the Kingdom of Bahrain. Copies of the consolidated accounts may be obtained from P.O. Box 113, Manama, Bahrain. In the opinion of the directors, there is no ultimate controlling party of the Westminster group.

 
Page 32