Ahern Land Reclamation Limited - Limited company accounts 23.1

REGISTERED NUMBER: 01646149 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 October 2022

for

Ahern Land Reclamation Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

9

Other Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Cash Flow Statement

13

Notes to the Cash Flow Statement

14

Notes to the Financial Statements

15

DIRECTORS:

L B Scott

P B Ahern

P R Scott

SECRETARY:

L B Scott

REGISTERED OFFICE:

106 Charter Avenue

Ilford

Essex

IG2 7AD

REGISTERED NUMBER:

01646149 (England and Wales)

AUDITORS:

Fredericks Limited

Chartered Accountants

Statutory Auditors

106 Charter Avenue

Ilford

Essex

IG2 7AD

SOLICITORS:

Kenneth Elliott & Rowe

18 Eastern Road

Romford

Essex

RM1 3PJ

The directors present their strategic report for the year ended 31 October 2022.

REVIEW OF BUSINESS

The directors are pleased to report another successful year.

The investment, from which the company derives its income performed well during the period resulting in an increase in income for the period.

At the end of the period net assets amounted to £485,382 (2021 £485,382).

Turnover decreased from £404,000 in 2021 to £Nil in 2022. No income was received from the investment during the year as the emphasis was in reinvestment for that period.

The direcors consider that this reinvestment will benefit the company significantly in future and are of the opinion that future prospects are good.

Pre tax profits fell from £4,990 to £Nil.

PRINCIPAL RISKS AND UNCERTAINTIES

Whilst the company is an investment company it is subject to a number of risks which the directors have set out below. Where possible systems are put into place in order to mitigate such risks.

The global Coronavirus pandemic has impacted the trading of the investment and will affect short term and longer term performance.

Credit risk and liquidity risk are also factors affecting the investment. The investment also has operational risks such as non compliance with Health and Safety and Environmental legislation. Again the directors aim to ensure compliance by adopting the appropriate procedures and systems.

ON BEHALF OF THE BOARD:

P R Scott - Director

30 May 2023

The directors present their report with the financial statements of the company for the year ended 31 October 2022.

DIVIDENDS

No dividends will be distributed for the year ended 31 October 2022.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 November 2021 to the date of this report.

L B Scott

P B Ahern

P R Scott

CORONAVIRUS

The company has traded well throughout the pandemic and whilst the trading activities of the investment have been affected the company continues to perform well.

GOING CONCERN

The company has significant reserves and group support in place if required. The directors therefore consider it appropriate to prepare the accounts on a going concern basis.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

The auditors, Fredericks Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

P R Scott - Director

30 May 2023

Opinion

We have audited the financial statements of Ahern Land Reclamation Limited (the 'company') for the year ended 31 October 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 31 October 2022;

-	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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept, 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 Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Our approach was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the Company through discussions with Directors and other management, and from our commercial knowledge and experience of the sector in which the Company operates;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the Company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC and any other relevant regulators as required.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

S G Duker (Senior Statutory Auditor)

for and on behalf of Fredericks Limited

Chartered Accountants

Statutory Auditors

106 Charter Avenue

Ilford

Essex

IG2 7AD

30 May 2023

TURNOVER

-

404,000

Administrative expenses

-

400,000

OPERATING PROFIT

-

4,000

Interest receivable and similar income

-

990

PROFIT BEFORE TAXATION

-

4,990

Tax on profit

4

-

941

PROFIT FOR THE FINANCIAL YEAR

-

4,049

PROFIT FOR THE YEAR

-

4,049

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

-

4,049

FIXED ASSETS

Investments

5

433,433

433,433

CURRENT ASSETS

Debtors

6

1,265,000

1,481,000

CREDITORS

Amounts falling due within one year

7

1,213,051

1,429,051

NET CURRENT ASSETS

51,949

51,949

TOTAL ASSETS LESS CURRENT LIABILITIES

485,382

485,382

CAPITAL AND RESERVES

Called up share capital

8

2

2

Retained earnings

9

485,380

485,380

SHAREHOLDERS' FUNDS

485,382

485,382

The financial statements were approved by the Board of Directors and authorised for issue on 30 May 2023 and were signed on its behalf by:

P R Scott - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 November 2020

2

481,331

481,333

Changes in equity

Total comprehensive income

-

4,049

4,049

Balance at 31 October 2021

2

485,380

485,382

Changes in equity

Balance at 31 October 2022

2

485,380

485,382

Cash flows from operating activities

Cash generated from operations

1

216,001

(342,901

)

Tax paid

(941

)

-

Net cash from operating activities

215,060

(342,901

)

Cash flows from investing activities

Interest received

-

990

Net cash from investing activities

-

990

Cash flows from financing activities

Group loans in year

(215,060

)

341,911

Net cash from financing activities

(215,060

)

341,911

Increase in cash and cash equivalents

-

-

Cash and cash equivalents at beginning of year

-

-

Cash and cash equivalents at end of year

-

-

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

31.10.22

31.10.21

£

£

Profit before taxation

-

4,990

Finance income

-

(990

)

-

4,000

Decrease/(increase) in trade and other debtors

216,000

(346,901

)

Increase in trade and other creditors

1

-

Cash generated from operations

216,001

(342,901

)

1.	STATUTORY INFORMATION

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

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Preparation of consolidated financial statements

The financial statements contain information about Ahern Land Reclamation Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 399(2A) of the Companies Act 2006 from the requirements to prepare consolidated financial statements.

Significant judgements and estimates

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

a) Critical judgements in applying the entities accounting policies:

There are no specific judgements apart from those involving estimates as detailed below that management has made in the process of applying the entities accounting policies that have a significant effect on the amounts recognised in the financial statements.

b) Critical accounting estimates and assumptions:

The company makes estimates and assumptions concerning the future. The resulting accounting estimates can differ from the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of the assets and liabilities within the next financial year are addressed below:

(i) Useful economic lives of tangible assets.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. These are re-assessed annually. They are amended when necessary to reflect any estimated changes.

(ii) Impairment of debtors

The company makes an estimate of the recoverable amount of trade and other debtors. When assessing their impairment, the management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.

Turnover

Turnover represents net invoiced value of goods sold and services rendered, excluding value added tax.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

3.	EMPLOYEES AND DIRECTORS

There were no staff costs for the year ended 31 October 2022 nor for the year ended 31 October 2021.

The average number of employees during the year was NIL (2021 - NIL).

31.10.22

31.10.21

£

£

Directors' remuneration

-

-

4.

TAXATION

Analysis of the tax charge

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

31.10.22

31.10.21

£

£

Current tax:

UK corporation tax

-

941

Tax on profit

-

941

5.	FIXED ASSET INVESTMENTS

Unlisted

investments

£

COST

At 1 November 2021

and 31 October 2022

433,433

NET BOOK VALUE

At 31 October 2022

433,433

At 31 October 2021

433,433

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

Associated company

Ingrebourne Valley Holdings Ltd

Registered office: Cecil House,Foster Street,Harlow,Essex CM17 9HY

Nature of business: Mineral Extraction

%

Class of shares:

holding

A Ordinary

100.00

30.6.22

30.6.21

£

£

Aggregate capital and reserves

57,129,328

53,867,100

Profit for the year

3,262,228

3,115,284

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.22

31.10.21

£

£

Trade debtors

1,080,000

1,296,000

Other debtors

185,000

185,000

1,265,000

1,481,000

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.10.22

31.10.21

£

£

Amounts owed to group undertakings

1,200,636

1,415,696

Tax

-

941

Social security and other taxes

12,415

12,414

1,213,051

1,429,051

8.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.10.22

31.10.21

value:

£

£

2

Ordinary

£1.00

2

2

9.

RESERVES

Retained

earnings

£

At 1 November 2021

485,380

Profit for the year

-

At 31 October 2022

485,380

10.	ULTIMATE PARENT COMPANY

The ultimate parent company is P.F. Ahern & Sons Limited, a company incorporated in Great Britain and registered in England and Wales. This company prepares consolidated accounts a copy of which can be obtained from the registered office.

11.	RELATED PARTY DISCLOSURES

L B Scott, P B Ahern and P R Scott are directors of the ultimate holding company, P.F. Ahern & Sons Limited, in which they have a material interest.

L B Scott, P B Ahern and P R Scott are directors of the associated undertaking, Ingrebourne Valley Holdings Limited.

During the year the company received management charges totalling £Nil (2021 £404,000 from Ingrebourne Valley Limited, a subsidiary of Ingrebourne Valley Holdings Limited. Ingrebourne Valley Limited owed the company £1,080,000 at the balance sheet date in respect of these charges (2021 : £1,296,000).

The company was invoiced £Nil by the ultimate holding company (2021 : £400,000).

At the balance sheet date the amount due from P. F. Ahern (London) Limited, a fellow subsidiary, was £780,620 (2021 : £565,560) .

The sum of £1,981,256 was due to P. F. Ahern & Sons Limited at the year end (2021 : £1,981,256).

12.	ULTIMATE CONTROLLING PARTY

The ultimate controlling party is the holding company, P. F. Ahern & Sons Limited by virtue of its 100% shareholding. This company prepares consolidated financial statements. The Registered Office is located at 106 Charter Avenue, Ilford, Essex, IG2 7AD.