ALLIANCE_GROUP_SOLUTIONS_ - Accounts

The directors present the strategic report for the year ended 31 March 2023.

The financial results for the year have been maintained at the same levels as the previous year maintaining both the turnover and the margins. Despite the pandemic and uncertainty due to external supply costs, the overall group has performed well with additional frameworks being awarded.

Contracting:

Working closely with current and new clients has lead to Contracting increasing the number of long term frameworks with reliable order books in low risk areas of the market sector. This has been due to the excellent working relationship that has been developed and maintained over recent years.

The business is constantly taking steps to manage the working capital cycle and these changes are continuing the produce good results.

Flood:

Once again the year ended with excellent results and is showing promising results for the year. Our clients base has been maintained with excellent working relationships continued with turnover and margins being maintained at a good level.

Consulting:

Three clients have recognised the benefits that Consulting brings to the other aspects that the companies deliver by utilising the internal resources that the company holds.

By working closely with Contracting and Flood results have been good, there has been stability in the turnover and the margin remains good.

External Factors on the Group

As part of our business continuity procedure we have been keeping in close contact with our supply chain to understand the possible risk to both our business and the impact that any changes due to the current economic changes could have on projects for our clients.

Regular reviews have been carried out as any changes have occurred, these reviews include consideration of the following:

- Ability of our Suppliers to meet their obligations to us.

- Anticipating and dealing with any factors which might detrimentally affect our clients.

- Possible change in the cost and availability of materials and labour across the business.

Management and the board regularly review the risks facing the group. the Board of Directors is satisfied that the business has successfully developed a framework of policies that will minimise risks and uncertainties in running the business. The board focuses on actively securing the company's short to medium term cash flows by maintaining the exposure to financial risks.

Financial instruments

The business's principal financial instruments comprise of its bank balances, trade debtors.

The main purpose of these are to endure that the business has sufficient finance for its operations. The company does not actively engage in the trading of financial assets for speculative purposes nor does it enter in any forward contract, options or any financial instruments of a derivative nature.

The main risks arising from the business's financial instruments are interest rate risk, liquidity risk and credit risk.

Credit risk:

The business' trade and other receivables are actively monitored to avoid significant concentrations of credit risk. The business reviews the credit quality of customers and limits credit exposures accordingly.

Approved by the board and signed on its behalf by:

The directors present their annual report and financial statements for the year ended 31 March 2023.

The principal activity of the group continued to be that of design of water engineering projects, flood defence systems and civil engineering projects.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

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

• select suitable accounting policies and then apply them consistently;

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

• state whether applicable UK 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 group and company will continue in business.

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

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

We have reviewed the financial statements of Alliance Group Solutions Limited for the year ended 31 March 2023, which comprises the Profit and Loss Account, the Balance Sheet, Statement of Changes in Equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that as been applied in their preparation is applicable law and United Kingdom Accounting Standards including Financial Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

Directors' responsibility for the financial statements

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.

Accountants' responsibility

Our responsibility is to express a conclusion based on our review of the financial statements. We conducted our review in accordance with International Standard on Review Engagements (ISRE) 2400 (Revised), Engagements to Review Historical Financial Statements. ISRE 2400 (Revised) requires us to conclude whether anything has come to our attention that causes us to believe that the financial statements, taken as a whole, are not prepared, in all material respects, in accordance with United Kingdom Generally Accepted Accounting Practice. ISRE 2400 (Revised) also requires us to comply with the ACCA Code of Ethics.

A review of financial statements in accordance with ISRE 2400 (Revised) is a limited assurance engagement. We have performed procedures, primarily consisting of making enquiries of management and others within the company, as appropriate, applying analytical procedures and evaluating the evidence obtained. The procedures performed in a review are substantially less than those performed in an audit conducted in accordance with International Standards on Auditing (UK). Accordingly, we do not express an audit opinion on these financial statements.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the financial statements have not been prepared:

• so as to give a true and fair view of the state of the group's and the company's affairs as at 31 March 2023 and of the group's profit for the year then ended;

• in accordance with United Kingdom Generally Accepted Accounting Practice applicable to smaller entities; and

• in accordance with the requirements of the Companies Act 2006.

Use of our report

This report is made solely to the company's directors, as a body, in accordance with the terms of our engagement letter dated 14 November 2022. Our review work has been undertaken so that we might state to the company's directors those matters we have agreed to state to them in a reviewer's 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 directors as a body for our review work, for this report or the opinions we have formed.

For the financial year ended 31 March 2023 the group was entitled to exemption from audit under section 477 of the Companies Act 2006.

Directors' responsibilities under the Companies Act 2006:

• The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476;

• The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared in accordance with the provisions applicable to groups and companies subject to the small companies regime.

The company’s profit after tax for the financial year was £288,273 (2022 - £401,159 profit).

For the financial year ended 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

Alliance Group Solutions Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Lowmoor Business Park, Kirkby in Ashfield, Nottinghamshire, NG17 7JZ.

The group consists of Alliance Group Solutions Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The consolidated financial statements consist of the financial statements of the parent company and its subsidiary undertakings drawn up to March 2023.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary, to ensure consistency with the policies adopted by the group. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder's share of changes in equity since the date of the combination.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Revenue is recognised when the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and specific criteria have been met for each of the company's activities.

Profit on long-term contracts is taken as the work carried out if the final outcome can be assessed with reasonable certainty. The profit included is calculated on a prudent basis to reflect the proportion of work carried out at the year end, by recording turnover and related costs as contract activity progresses. Turnover is calculated as that proportion of total contract value which costs incurred to date bear to total expected costs for that contract. Revenues derived from variations on contracts are recognised only when they have been accepted by the customer. Full provision is made for losses on all contract in the year in which they are first foreseen.

Government grants are recognised in the profit and loss account as income when such grant does not impose specified future performance-related conditions, in accordance with the performance model.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and 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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in, first out (FIFO) method.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as an employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Dividends

Dividend distribution to the group's shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

In the application of the group’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.

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.

Judgement is required to identify when it is appropriate to recognise revenue on contracts. Management estimate this based on their knowledge of the contract at the balance sheet date and also take previous experience into account.

On a periodic basis management makes an estimation of the recoverability of debtors. Management make such estimations based on the ageing profile, and historical experience.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Details of undertakings

Details of the investments in which the group holds 20% or more of the nominal value of any class of share capital are as follows:

Subsidiary undertakings

Alliance Contracting Solutions Limited

The principal activity of Alliance Contracting Solutions Limited is civil engineering projects.

Alliance Consulting Solutions Limited

The principal activity of Alliance Consulting Solutions Limited is design of water engineering projects.

Alliance Flood Solutions Limited

The principal activity of Alliance Flood Solutions Limited is design and installation of flood defences.

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £105,435 (2022 - £67,228).

Group

Liabilities in respect of invoice discounting of £nil (2022 - £47,233) are secured on the book debts of the group and by virtue of a fixed and floating charge over the group's assets and undertakings.

Company

Liabilities in respect of invoice discounting of £nil (2022 - £14,941) are secured on the book debts of the company and by virtue of a fixed and floating charge over the group's assets and undertakings.

Amounts not provided for in the balance sheet

The total amount of operating lease commitments not included in the balance sheet is £21,530 (2022 - £32,277). The total amount of these operating lease commitments due within one year is £13,121 (2022 - £13,549) and amounts due over one year are £8,409 (2022 - £18,728).

Company

The company has entered into cross guarantees with the group's finance providers in respect of the liabilities of the group and related companies. This is supported by a corporate guarantee over the company's assets. The contingent liability at the balance sheet date is £nil (2022 - £1,620). The future outcome is dependent upon the performance of individual companies concerned, however the directors do not expect any liability to crystallise.

At the balance sheet date the amounts owed to the shareholders amounted to £103,760 (2022 - £121,699) and amounts owed by shareholders amounted to £nil (2022 - £1,230).

Transactions with other related parties

Certain directors and ultimate beneficial shareholders have provided personal guarantees to finance providers. The total guarantee at the year end was equal to £100,000 (2022 - £95,000). The value of the liability at the year end is £nil (2022 - £16,561).

At the balance sheet date amounts owed to the directors amounted to £32,320 (2022 - £43,050).

There is no ultimate controlling party due to the shareholdings.

Since the balance sheet date dividends amounting to £44,382 have been voted.