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Registered number: NI033331 O'HANLON & FARRELL CONTRACTS LTD ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024
O'HANLON & FARRELL CONTRACTS LTD COMPANY INFORMATION
Directors | Mr C Farrell
| Ms M Byrne
Registered number | NI033331
Registered office | Unit 7A-7E Springhill Road
| Carnabane Industrial Estate
| Newry
| Co. Down
| Northern Ireland
| BT35 6EF
Independent auditors | AAB Group Accountants Limited
| Dromalane Mill
| The Quays
| Newry
| Co. Down
| Northern Ireland
| BT35 8QS
Bankers | AIB
| 42-44 Hill Street
| Newry
| Co. Down
| Northern Ireland
| BT34 1AU
Solicitors | DWF (NI) LLP
| 42 Queen Street
| Belfast
| Northern Ireland
| BT1 6HL
O'HANLON & FARRELL CONTRACTS LTD CONTENTS
| Page
Strategic report | 1 - 2
Directors' report | 3 - 4
Independent auditors' report | 5 - 8
Statement of comprehensive income | 9
Balance sheet | 10
Statement of changes in equity | 11
Statement of cash flows | 12
Notes to the financial statements | 13 - 30
O'HANLON & FARRELL CONTRACTS LTD STRATEGIC REPORT FOR THE YEAR ENDED 30 NOVEMBER 2024 The directors present the strategic report for the year ended 30 November 2024.
Business review
The principal activity of the company continued to be that of building and electrical construction. There has been no significant change in these activities during the year. Company turnover for the year ended 30 November 2024 is £11.1m (2023: £18.4m). The company's emphasis going forward continues to be on securing turnover that will result in sustainable profitability and cash flow. The gross profit margin for the year was 18.3% compared to 8.8% for 2023. The net assets of the company as at 30 November 2024 were £4.3m (2023: £3.3m).
Principal risks and uncertainties
The company is engaged in trade in the construction industry and faces substantial challenges and risks in association with this industry. The core risks associated with the company are as follows: Currency Risk The company's activities in the Republic of Ireland are conducted primarily in Euros, this results in low levels of currency transaction risk, variances affecting operational activities in this regard are reflected in operating costs or in cost of sales in the profit and loss accounts in the years in which they arise. The principal foreign exchange risk is translation-related arising from fluctuation in the sterling value of the company's working capital in euros. Finance and interest rate risk The company's objective in relation to interest rate management is to minimise the impact of interest rate volatility on interest costs in order to protect recorded profitability. A long term strategy for the management of the exposure considers the amounts of floating rate debt that is anticipated over the period and the sensitivity of the interest charge on this debt to changes in interest rates, and the resultant impact on reported profitability. Liquidity and cash flow risk The company's objective is to maintain a balance between the continuity of funding and flexibility through the use of borrowings with a range of maturities. The company's policy is to ensure that sufficient resources are available either from cash balances, cash flows and near liquid investments to ensure all obligations can be met when they fall due. Credit risk Customers who wish to trade on credit terms are subject to strict verification procedures in advance of credit being awarded and are continually being monitored. Health and safety The company is committed to achieving the highest practical standards in health and safety management and strives to make all places of work a safe environment for employees and customers alike.
Financial key performance indicators
The profit for the year after providing for taxation amounted to £986,406 (2023: £750,466). In the current year the gross profit margin was 18.3% (2023: 8.8%). The directors are satisfied with the company's performance for the year. Page 1
O'HANLON & FARRELL CONTRACTS LTD STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2024 This report was approved by the board and signed on its behalf.
Mr C Farrell Director | Ms M Byrne Director
Date: 30 September 2025 |
Page 2
O'HANLON & FARRELL CONTRACTS LTD DIRECTORS' REPORT FOR THE YEAR ENDED 30 NOVEMBER 2024 The directors present their report and the financial statements for the year ended 30 November 2024.
Principal activity
The principal activity of the company continued to be that of building and electrical construction.
Results and dividends
The profit for the year, after taxation, amounted to £986,406 (2023 - £750,466). No ordinary dividends were paid. The directors do not recommend payment of a final dividend.
Directors
The directors who served during the year were:
Mr C Farrell
Ms M Byrne
Directors' responsibilities statement
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 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Future developments
The directors consider the results for the year to be satisfactory in terms of turnover and gross profits. It is anticipated that the current levels of performance will be maintained or improved upon in 2025.
Branches outside the United Kingdom
The company has a branch in the Republic of Ireland. Page 3
O'HANLON & FARRELL CONTRACTS LTD DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 30 NOVEMBER 2024
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙the director 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
There have been no significant events affecting the Company since the year end.
Auditors
The auditors, AAB Group Accountants Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board and signed on its behalf.
Mr C Farrell Director | Ms M Byrne Director
Date: 30 September 2025 | Date: 30 September 2025
Page 4
O'HANLON & FARRELL CONTRACTS LTD INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF O'HANLON & FARRELL CONTRACTS LTD
Opinion
We have audited the financial statements of O'Hanlon & Farrell Contracts Ltd (the 'Company') for the year ended 30 November 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, 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 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 30 November 2024 and of its profit for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report other than the financial statements and our 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. Page 5
O'HANLON & FARRELL CONTRACTS LTD INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF O'HANLON & FARRELL CONTRACTS LTD (CONTINUED)
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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Page 6
O'HANLON & FARRELL CONTRACTS LTD INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF O'HANLON & FARRELL CONTRACTS LTD (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 obtained an understanding of the legal and regulatory framework applicable to the company. We identified the following principal laws and regulations relevant to the company – Companies Act 2006 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). We developed an understanding of the key fraud risks to the entity, the controls in place to help mitigate those risks, and the accounts, balances and disclosures within the financial statements which may be susceptible to management bias. Our understanding was obtained through review of the financial statements for significant accounting estimates, analysis of journal entries, walkthrough of the key controls cycles in place and enquiry of management. Our procedures to respond to those risks identified included, but were not limited to: ∙ Enquiry of management, those charged with governance and the entity’s solicitors around actual and potential litigation and claims. ∙Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations. ∙Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. ∙Auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness, and evaluating the business rationale of significant transactions outside the normal course of business. 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 7
O'HANLON & FARRELL CONTRACTS LTD INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF O'HANLON & FARRELL CONTRACTS LTD (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 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. Michael Farrell (Senior statutory auditor) for and on behalf of AAB Group Accountants Limited Statutory Auditors Dromalane Mill The Quays Newry Co. Down Northern Ireland BT35 8QS 30 September 2025 Page 8
O'HANLON & FARRELL CONTRACTS LTD STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 NOVEMBER 2024
| 2024 | 2023
Note | £ | £
Turnover | 4 | 11,096,599 | 18,408,715
Cost of sales |  | (9,064,194) | (16,796,879)
Gross profit |  | 2,032,405 | 1,611,836
Administrative expenses |  | (702,448) | (599,596)
Other operating income | 5 | 2,962 | 1,500
Operating profit | 6 | 1,332,919 | 1,013,740
Interest receivable and similar income | 10 | - | 184
Interest payable and similar expenses | 11 | (2,900) | (3,369)
Profit before tax |  | 1,330,019 | 1,010,555
Tax on profit | 12 | (343,613) | (260,089)
Profit for the financial year |  | 986,406 | 750,466
There was no other comprehensive income for 2024 (2023:£NIL).
The notes on pages 13 to 30 form part of these financial statements.
Page 9
O'HANLON & FARRELL CONTRACTS LTD REGISTERED NUMBER: NI033331 BALANCE SHEET AS AT 30 NOVEMBER 2024
|  | 2024 |  | 2023
Note |  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 13 |  | 399,365 |  | 495,094
|  |  | 399,365 |  | 495,094
Current assets |  |  |  |  |
Stocks | 14 | 18,000 |  | 18,000 |
Debtors: amounts falling due after more than one year | 15 | 1,890,876 |  | 475,024 |
Debtors: amounts falling due within one year | 15 | 5,281,601 |  | 5,053,089 |
Cash at bank and in hand | 16 | 1,720,336 |  | 1,451,012 |
|  | 8,910,813 |  | 6,997,125 |
Creditors: amounts falling due within one year | 17 | (4,979,160) |  | (4,125,143) |
Net current assets |  |  | 3,931,653 |  | 2,871,982
Total assets less current liabilities |  |  | 4,331,018 |  | 3,367,076
Creditors: amounts falling due after more than one year | 18 |  | (7,250) |  | (29,714)
Net assets |  |  | 4,323,768 |  | 3,337,362
Capital and reserves |  |  |  |  |
Called up share capital | 23 |  | 24,000 |  | 24,000
Profit and loss account |  |  | 4,299,768 |  | 3,313,362
|  |  | 4,323,768 |  | 3,337,362
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
Mr C Farrell | Ms M Byrne
Director | Director
Date: 30 September 2025 |
The notes on pages 13 to 30 form part of these financial statements. Page 10
O'HANLON & FARRELL CONTRACTS LTD STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 NOVEMBER 2024
| Called up share capital | Profit and loss account | Total equity
| £ | £ | £
At 1 December 2022 | 24,000 | 2,562,896 | 2,586,896
Profit for the year | - | 750,466 | 750,466
At 1 December 2023 | 24,000 | 3,313,362 | 3,337,362
Profit for the year | - | 986,406 | 986,406
At 30 November 2024 | 24,000 | 4,299,768 | 4,323,768
| The notes on pages 13 to 30 form part of these financial statements.
Page 11
O'HANLON & FARRELL CONTRACTS LTD STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 NOVEMBER 2024
|  |  | 2024 | 2023
|  |  | £ | £
Cash flows from operating activities |  |
Profit for the financial year | 986,406 | 750,466
Adjustments for: |  |
Depreciation of tangible assets | 108,866 | 141,284
Loss on disposal of tangible assets | (49,345) | (602)
Government grants | (2,962) | -
Interest paid | 2,900 | 3,369
Interest received | - | (184)
Taxation charge | 343,613 | 260,089
(Increase) in debtors | (1,917,708) | (672,293)
Increase in creditors | 833,297 | 18,563
Corporation tax (paid)/received | (38,283) | 39,441
Net cash generated from operating activities | 266,784 | 540,133
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (132,315) | (310,206)
Sale of tangible fixed assets | 168,523 | 2,615
Government grants received | 2,962 | -
Interest received | - | 184
Net cash from investing activities | 39,170 | (307,407)
Cash flows from financing activities |  |
Repayment of loans | (10,031) | (9,783)
Repayment of/new finance leases | (18,650) | (20,933)
Interest paid | (2,900) | (3,369)
Net cash used in financing activities | (31,581) | (34,085)
Net increase in cash and cash equivalents | 274,373 | 198,641
Cash and cash equivalents at beginning of year | 1,445,963 | 1,247,322
Cash and cash equivalents at the end of year | 1,720,336 | 1,445,963
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 1,720,336 | 1,451,012
Bank overdrafts | - | (5,049)
| 1,720,336 | 1,445,963
The notes on pages 13 to 30 form part of these financial statements.
Page 12
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024
1. | General information
O'Hanlon & Farrell Contracts Ltd is a private company limited by shares incorporated in Northern Ireland. The registered office is Unit 7A-7E, Springhill Road, Carnbane Industrial Estate, Newry, Co. Down, Northern Ireland, BT35 6EF. 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 judgement in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Going concern
At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing 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 Statement of comprehensive income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'. Page 13
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024 2.Accounting policies (continued)
| 2.4 | Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably.
| 2.5 | Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable. When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately. Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period. The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered. Retention amounts are contractual sums withheld by the customer pending satisfactory completion of the contract and/or the expiry of a defects liability period. Retention receivables are recognised within debtors only when the following criteria are met. The work to which the retention relates has been performed in accordance with the contract; It is probable that the amount will be received in full; and there is no significant uncertainty regarding the timing or amount of receipt. Retention balances are assessed individually for recoverability based on the status of the underlying contracts, customer performance, and historical collection experience. Where the receipt of retention monies is contingent on future performance obligations (e.g. rectification of defects or final certification), the related revenue is deferred until those obligations are fulfilled or waived. Page 14
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024 2.Accounting policies (continued)
| 2.6 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.7 | Government grants
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income. Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
| 2.8 | Interest income
Interest income is recognised in profit or loss using the effective interest method.
| 2.9 | 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.
| 2.10 | Borrowing costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
| 2.11 | 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 Balance sheet. The assets of the plan are held separately from the Company in independently administered funds. Page 15
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024 2.Accounting policies (continued)
| 2.12 | 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 balance sheet 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 balance sheet 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 balance sheet date.
| 2.13 | 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, on a reducing balance basis. Depreciation is provided on the following basis:
|  |  |  | Plant and machinery | - | 25% |
|  |  |  | Motor vehicles | - | 20% |
|  |  |  | Fixtures and fittings | - | 15% |
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. Page 16
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024 2.Accounting policies (continued)
| 2.14 | Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease. Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
| 2.15 | Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
| 2.16 | 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.
| 2.17 | 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. Page 17
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024 2.Accounting policies (continued)
| 2.18 | 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.
| 2.19 | 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. The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102. Financial instruments are recognised in the Company's Balance sheet 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. Other financial assets Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment. Impairment of financial assets At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate. If there is a favourable change in relation to the events surrounding the impairment loss then the Page 18
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024 2.Accounting policies (continued)
| 2.19 | Financial instruments (continued)
impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss. Basic 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. Other financial instruments Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss. Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy. Derecognition of financial instruments Derecognition of financial assets Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained. Derecognition of financial liabilities Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled. Page 19
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024
3. | Judgements 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 judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Key sources of estimation uncertainty The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows. Turnover and amount recoverable under contracts The company recognises amounts recoverable on contracts (included within debtors or work in progress, depending on billing status) in respect of revenue earned on long-term contracts where the outcome of the contract can be estimated reliably. Revenue is recognised based on the stage of completion of the contract activity at the reporting date, measured using either cost-to-complete or milestone-based assessments, depending on the nature of the contract. At the year end date, the directors assessed the recoverability of amounts recorded as recoverable under contracts and are satisfied that these are recoverable in full. However, the actual outcome may differ from management’s current estimates, particularly where contract performance is subject to commercial negotiation or uncertainty.
4. | Turnover
| An analysis of turnover by class of business and geographical market is not given as, in the opinion of the directors, this would be seriously prejudicial to the company's interest.
5. | Other operating income
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Government grants receivable | 2,962 | 1,500
|  | 2,962 | 1,500
Page 20
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Exchange differences | 37,917 | (15,813)
| Other operating lease rentals | 24,486 | 32,282
| Fees payable to company's auditor for the audit of the company's financial statements | 11,150 | 10,900
| Depreciation of owned tangible fixed assets | 99,823 | 129,432
| Depreciation of tangible fixed assets held under finance lease | 9,043 | 11,852
| Profit on disposal of tangible fixed assets | (49,345) | (602)
7. | 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 | 11,150 | 10,900
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Wages and salaries | 1,320,488 | 1,149,894
| Social security costs | 112,154 | 94,461
| Pension costs | 16,461 | 12,553
|  | 1,449,103 | 1,256,908
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2024 | 2023
|  |  | No. | No.
|  | Direct | 34 | 34
|  | Admin. | 4 | 4
|  |  | 38 | 38
Page 21
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024
9. | Directors' remuneration
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Directors' emoluments | 121,574 | 92,789
| Company contributions to defined contribution pension schemes | 2,449 | 2,100
|  | 124,023 | 94,889
| During the year retirement benefits were accruing to 2 directors (2023 - 2) in respect of defined contribution pension schemes.
10. | Interest receivable
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Other interest receivable | - | 184
|  | - | 184
11. | Interest payable and similar expenses
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Bank interest payable | 619 | 874
| Finance leases and hire purchase contracts | 2,281 | 2,495
|  | 2,900 | 3,369
Page 22
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024
12. | Taxation
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Corporation tax |  |
| Current tax on profits for the year | 70,269 | 19,841
|  | 70,269 | 19,841
| Total current tax | 70,269 | 19,841
| Deferred tax |  |
| Origination and reversal of timing differences | 273,344 | 240,248
| Total deferred tax | 273,344 | 240,248
| Tax on profit | 343,613 | 260,089
| Factors affecting tax charge for the year
| The tax assessed for the year is the same as (2023 - the same as) the standard rate of corporation tax in the UK of 25% (2023 - 23%) as set out below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Profit on ordinary activities before tax | 1,330,019 | 1,010,555
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23%) | 332,505 | 232,428
| Effects of: |  |
| Unrelieved tax losses carried forward | (332,505) | (232,428)
| Deferred tax charge | 273,344 | 240,248
| Overseas taxes | 70,269 | 19,841
| Total tax charge for the year | 343,613 | 260,089
Page 23
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024
13. | Tangible fixed assets
|  | Plant and machinery | Motor vehicles | Fixtures and fittings | Total
|  | £ | £ | £ | £
| Cost or valuation |  |  |  |
| At 1 December 2023 | 2,375,986 | 455,773 | 38,839 | 2,870,598
| Additions | 52,950 | 79,365 | - | 132,315
| Disposals | (208,743) | (12,510) | - | (221,253)
| At 30 November 2024 | 2,220,193 | 522,628 | 38,839 | 2,781,660
| Depreciation |  |  |  |
| At 1 December 2023 | 2,138,931 | 228,208 | 8,365 | 2,375,504
| Charge for the year on owned assets | 43,731 | 60,564 | 4,571 | 108,866
| Disposals | (93,665) | (8,410) | - | (102,075)
| At 30 November 2024 | 2,088,997 | 280,362 | 12,936 | 2,382,295
| Net book value |  |  |  |
| At 30 November 2024 | 131,196 | 242,266 | 25,903 | 399,365
| At 30 November 2023 | 237,055 | 227,565 | 30,474 | 495,094
| The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Plant and machinery | 19,696 | 26,262
| Motor vehicles | 9,912 | 12,390
|  | 29,608 | 38,652
14. | Stocks
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Finished goods and goods for resale | 18,000 | 18,000
|  | 18,000 | 18,000
Page 24
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024
15. | Debtors
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Due after more than one year |  |
| Other debtors | 1,689,196 | -
| Deferred tax asset | 201,680 | 475,024
|  | 1,890,876 | 475,024
| Included in other debtors greater than one year is a balance of £1,689,196 (2023: £nil) in relation to monies held on solicitor client account in respect of a new group company formed post year end. These funds have rolled over into a loan agreement with the other group company. This amount is repayable in August 2027. Interest is charged at the European Central Bank rate plus 1%. This debtor is unsecured.
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Due within one year |  |
| Trade debtors | 4,409,065 | 4,679,106
| Amounts owed by group undertakings | 119,019 | 119,019
| Other debtors | 137,403 | 148,625
| Prepayments and accrued income | 155,023 | 106,339
| Amounts recoverable on long-term contracts | 461,091 | -
|  | 5,281,601 | 5,053,089
| All trade debtors are due within one year. All trade debtors are due within the company’s normal terms. Trade debtors are shown net of impairment in respect of doubtful debts of £180,586 (2023: £28,045). Amounts owed by group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
16. | Cash and cash equivalents
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Cash at bank and in hand | 1,720,336 | 1,451,012
| Less: bank overdrafts | - | (5,049)
|  | 1,720,336 | 1,445,963
Page 25
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024
17. | Creditors: Amounts falling due within one year
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Bank overdrafts | - | 5,049
| Bank loans | 10,000 | 10,000
| Trade creditors | 1,871,121 | 2,086,521
| Corporation tax | 51,744 | 19,758
| Other taxation and social security | 143,299 | 242,519
| Obligations under finance lease and hire purchase contracts | 12,373 | 18,590
| Other creditors | 2,702,758 | 1,544,094
| Accruals and deferred income | 187,865 | 198,612
|  | 4,979,160 | 4,125,143
| The payment terms of trade creditors vary between on demand and ninety days. No interest is payable on trade creditor amounts. Included within other creditors are amounts of £303,986 (2023: £332,560) owed to related parties. Amounts owed to related parties are unsecured, interest free, have no fixed date of repayment and are repayable on demand. They are related by common directorship or being connected persons to the company directors and shareholders.
18. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Bank loans | 7,250 | 17,281
| Net obligations under finance leases and hire purchase contracts | - | 12,433
|  | 7,250 | 29,714
Page 26
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024
19. | Loans
| Analysis of the maturity of loans is given below:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Amounts falling due within one year |  |
| Bank loans | 10,000 | 10,000
|  | 10,000 | 10,000
| Amounts falling due 1-2 years |  |
| Bank loans | 7,250 | 17,281
|  | 7,250 | 17,281
|  | 17,250 | 27,281
| AIB Group (UK) plc hold a fixed and floating charge over all company assets and hold a letter of guarantee from company shareholders.
20. | Hire purchase and finance leases
| Minimum lease payments under hire purchase fall due as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Within one year | 12,373 | 18,590
| Between 1-5 years | - | 12,433
|  | 12,373 | 31,023
21. | Deferred taxation
|  | 2024
|  | £
| At beginning of year | 475,024
| Charged to profit or loss | (273,344)
| At end of year | 201,680
Page 27
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024 21.Deferred taxation (continued)
| The deferred tax asset is made up as follows:
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
| Tax losses carried forward | 201,680 | 475,024
|  | 201,680 | 475,024
22. | Retirement benefit schemes
The charge to the profit and loss in respect of defined contribution schemes for the year was £16,461 (2023: £12,553). Included in other creditors are outstanding pension contributions of £14,275 (2023: £14,262). The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
23. | Share capital
|  |  |  |  | 2024 | 2023
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 24,000 (2023 - 24,000) Ordinary shares of £1.00 each | 24,000 | 24,000
Page 28
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024
24. | Related party transactions
| Remuneration of key management personnel No one outside the board of directors is considered to be key management personnel. Directors remuneration is disclosed in note 9. Transactions with related parties During the year the company entered into the following transactions with related parties: Included in other debtors greater than one year is a balance of £1,689,196 (2023: £nil) in relation to monies held on solicitor client account in respect of a new group company formed post year end. These funds have rolled over into a loan agreement with the other group company. This amount is repayable in August 2027. Interest is charged at the European Central Bank rate plus 1%. This debtor is unsecured. AIB Group (UK) plc hold a letter of guarantee from company shareholders.
Page 29
O'HANLON & FARRELL CONTRACTS LTD NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 NOVEMBER 2024
25. | Analysis of net debt
|  | At 1 December 2023 | Cash flows | At 30 November 2024
|  | £ | £ | £
| Cash at bank and in hand | 1,451,012 | 269,324 | 1,720,336
| Bank overdrafts | (5,049) | 5,049 | -
| Debt due after 1 year | (17,281) | 10,031 | (7,250)
| Debt due within 1 year | (10,000) | - | (10,000)
| Finance leases | (31,023) | 18,650 | (12,373)
|  | 1,387,659 | 303,054 | 1,690,713
26. | Controlling party
The 100% parent company is O'Hanlon & Farrell Holdings Limited, a company incorporated in Northern Ireland. The shares in O'Hanlon & Farrell Holdings Limited are held by a number of shareholders. For this reason there is no ultimate controlling party.
27. | Auditor's liability limitation agreement
The directors, on behalf of the company have entered into a limited liability agreement with their auditors on 1 August 2025. The auditors liability is limited to an amount which is considered fair and reasonable. This has been disclosed in line with company legislation.
Page 30