Network Scaffolding Contractors Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 04385406 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 March 2024

for

Network Scaffolding Contractors Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

Chartered Certified Accountants' Report

10

DIRECTORS:

S J Guthrie

G R Manson

REGISTERED OFFICE:

20 Wenlock Road

London

N1 7GU

REGISTERED NUMBER:

04385406 (England and Wales)

ACCOUNTANTS:

Innes & Partners Limited

Chartered Certified Accountants

9 Ardross Street

Inverness

IV3 5NN

FIXED ASSETS

Intangible assets

4

-

-

Tangible assets

5

1,429,333

1,366,656

1,429,333

1,366,656

CURRENT ASSETS

Debtors

6

965,227

1,111,016

Cash at bank

1,719,357

1,228,739

2,684,584

2,339,755

CREDITORS

Amounts falling due within one year

7

1,147,770

1,131,531

NET CURRENT ASSETS

1,536,814

1,208,224

TOTAL ASSETS LESS CURRENT LIABILITIES

2,966,147

2,574,880

CREDITORS

Amounts falling due after more than one year

8

(166,035

)

(342,726

)

PROVISIONS FOR LIABILITIES

(18,987

)

-

NET ASSETS

2,781,125

2,232,154

CAPITAL AND RESERVES

Called up share capital

101

101

Share premium

236,495

236,495

Retained earnings

2,544,529

1,995,558

SHAREHOLDERS' FUNDS

2,781,125

2,232,154

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2024.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2024 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

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

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 13 June 2024 and were signed on its behalf by:

S J Guthrie - Director

1.	STATUTORY INFORMATION

Network Scaffolding Contractors 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements 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.

Critical judgements

The Director's consider there to be no critical judgements.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of three years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off the cost less estimated residual value of each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

20% on cost

Plant and machinery

-

17% on reducing balance

Fixtures and fittings

-

15% on cost

Motor vehicles

-

25% on reducing balance

Computer equipment

-

33% on cost

Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument.

Basic financial assets

Basic financial assets, which include trade and other debtors, amounts owed by contract customers and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of 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 deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other creditors, payments received on account and amounts owed to group undertakings, are initially recognised at transaction price.

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

Derecognition of financial liabilities

Financial liabilities are derecognised when, and only when, the company’s contractual obligations are discharged, cancelled, or they expire.

Equity instruments

Equity instruments issued by the company are recorded at the fair value of proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

All of the government grant income received during the year ended 31 March 2024 and in the preceding year relates to the CITB scheme.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 73 (2023 - 87 ) .

4.	INTANGIBLE FIXED ASSETS

Other

intangible

assets

£

COST

At 1 April 2023

and 31 March 2024

30,269

AMORTISATION

At 1 April 2023

and 31 March 2024

30,269

NET BOOK VALUE

At 31 March 2024

-

At 31 March 2023

-

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

property

machinery

fittings

£

£

£

COST

At 1 April 2023

6,786

4,303,092

2,077

Additions

-

277,764

680

Disposals

-

-

-

At 31 March 2024

6,786

4,580,856

2,757

DEPRECIATION

At 1 April 2023

3,250

3,257,756

1,164

Charge for year

1,358

182,065

243

Eliminated on disposal

-

-

-

At 31 March 2024

4,608

3,439,821

1,407

NET BOOK VALUE

At 31 March 2024

2,178

1,141,035

1,350

At 31 March 2023

3,536

1,045,336

913

Motor

Computer

vehicles

equipment

Totals

£

£

£

COST

At 1 April 2023

462,448

15,532

4,789,935

Additions

74,500

1,888

354,832

Disposals

(104,545

)

-

(104,545

)

At 31 March 2024

432,403

17,420

5,040,222

DEPRECIATION

At 1 April 2023

152,798

8,311

3,423,279

Charge for year

79,775

5,305

268,746

Eliminated on disposal

(81,136

)

-

(81,136

)

At 31 March 2024

151,437

13,616

3,610,889

NET BOOK VALUE

At 31 March 2024

280,966

3,804

1,429,333

At 31 March 2023

309,650

7,221

1,366,656

The net book value of tangible fixed assets includes £ 218,502 (2023 - £ 236,243 ) in respect of assets held under hire purchase contracts.

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

-

51,604

Gross amounts owed by contract

customers

893,189

1,028,513

VAT

16,233

-

Prepayments

55,805

30,899

965,227

1,111,016

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Other loans

87,345

80,252

Hire purchase contracts (see note 9)

73,783

81,722

Trade creditors

482,860

459,258

Amounts owed to group undertakings

71

71

Tax

144,102

59,285

Social security and other taxes

61,942

71,120

VAT

-

80,652

Other creditors

92,105

53,878

Accruals and deferred income

205,562

245,293

1,147,770

1,131,531

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Other loans - 1-2 years

38,635

-

Other loans - 2-5 years

-

125,980

Hire purchase contracts (see note 9)

127,400

216,746

166,035

342,726

9.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts

2024

2023

£

£

Net obligations repayable:

Within one year

73,783

81,722

Between one and five years

127,400

216,746

201,183

298,468

Non-cancellable operating

leases

2024

2023

£

£

Within one year

66,460

9,527

Between one and five years

115,447

106,906

181,907

116,433

10.	RELATED PARTY DISCLOSURES

During the year, the company paid management fees of £457,802 (2023: £412,400), water rates of £573 (2023: £nil), rent of £7,500 (2023: £nil) to Network Scaffolding Group Ltd.

During the year, the company paid dividends of £252,020 to Network Scaffolding Group Limited (2023: £235,507).

Network Scaffolding Group Limited is the parent company of Network Scaffolding Contractors Limited.

The parent company address is 20-22 Wenlock Road, London, N1 7GU.

Group accounts have not been prepared as the company is exempt from preparing Group Accounts under S.401 of the Companies Act 2006 as it is itself a wholly owned subsidiary undertaking.

11.	ULTIMATE CONTROLLING PARTY

The controlling party is Network Scaffolding Group Limited.

The ultimate controlling party is S J Guthrie.

The following reproduces the text of the report prepared for the directors in respect of the company's annual unaudited financial statements. In accordance with the Companies Act 2006, the company is only required to file a Balance Sheet. Readers are cautioned that the Statement of Comprehensive Income and certain other primary statements and the Report of the Directors are not required to be filed with the Registrar of Companies.

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Network Scaffolding Contractors Limited for the year ended 31 March 2024 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and the related notes from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Association of Chartered Certified Accountants, we are subject to its ethical and other professional requirements which are detailed at http://www.accaglobal.com/rulebook.

This report is made solely to the Board of Directors of Network Scaffolding Contractors Limited, as a body, in accordance with our terms of engagement. Our work has been undertaken solely to prepare for your approval the financial statements of Network Scaffolding Contractors Limited and state those matters that we have agreed to state to the Board of Directors of Network Scaffolding Contractors Limited, as a body, in this report in accordance with the requirements of the Association of Chartered Certified Accountants as detailed at http://www.accaglobal.com/factsheet163. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and its Board of Directors, as a body, for our work or for this report.

It is your duty to ensure that Network Scaffolding Contractors Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Network Scaffolding Contractors Limited. You consider that Network Scaffolding Contractors Limited is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the financial statements of Network Scaffolding Contractors Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.

Innes & Partners Limited

Chartered Certified Accountants

9 Ardross Street

Inverness

IV3 5NN

13 June 2024