S.J.D._ASSOCIATES_LIMITED - Accounts

The directors present their annual report and financial statements for the year ended 31 December 2019.

Business Review

SJD has again achieved impressive growth in 2019, in line with our management forecasts. SJD continues to be considered a ‘scaleup’ enterprise in accordance with the OECD definition, achieving an average annualised turnover growth rate exceeding 20% over the previous four years. Our reputation for the successful design and project management of large, complex projects has driven this growth with reputable national and regional main contractors, particularly for public sector projects, but also a variety of commercial, educational and industrial projects. Our core, local commercial and industrial market is characterised by long-term, repeat relationships, we have successfully maintained this and secured several new relationships with leading local brands.

SJD has achieved continued high growth by investing in our people and maintaining our focus on client satisfaction, quality and project delivery. Our reputation as a fair employer enables diverse recruitment of highly skilled electricians and administrative staff. Employee satisfaction is high as roles are varied, interesting, well-rewarded and individuals are treated with respect. SJD has an excellent health, safety and environmental record.

SJD continues to support industry and government initiatives to improve skills and standards, with regular representation at the Careers and Enterprise Company, Construction Leadership Council, ECA and the Institute for Apprenticeships and Technical Education. SJD was recognised as MKBAA Small Business of the Year in 2019 and was highly commended in two national electrical industry awards ceremonies.

Principle risks remain with market and project performance. SJD will continue to mitigate these risks with careful project estimating, effective supervision, careful credit management and a diverse client portfolio. Further growth leads to increasing economies of scale enhancing our competitive position. Following the completion of founder Stephen Devine’s exit agreement in 2019, the business’s cash position and balance sheet are considerably stronger than previous years.

SJD enters 2020 with a strong, secured order pipeline into 2021 and exciting opportunities to develop and scale relationships with more prestigious local brands and main contractors. The investment and development over the previous 4 years ensures SJD has the ability and capacity to successfully scale delivery of more high-profile projects, continued investment in our strategic capabilities is planned for 2020. Forecasted future sales growth continues to exceed 20% per annum.

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

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

The directors of the company have elected not to include a copy of the income statement within the financial statements.true

For the financial year ended 31 December 2019 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 and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

S.J.D. Associates Limited is a private company limited by shares incorporated in England and Wales. The registered office is Unit 19 Twizel Close, Stonebridge, Milton Keynes, Bucks, MK13 0DX.

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.

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 from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), 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 the costs incurred or to be incurred in respect of the transaction can be measured reliably.

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

Depreciation

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives or over the term of the lease 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 credited or charged to profit or loss.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The company 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 company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

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, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

Equity instruments issued by the company are recorded at the 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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

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 income statement 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 company’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 income statement, 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 when the company has 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.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

The average monthly number of persons (including directors) employed by the company during the year was 15 (2018: 15).

The Lloyds TSB EFG loan is secured by way of debenture, over the assets of the company, along with an unsupported guarantee limited to £25,000, joint and several, from S J Devine and Mrs H M Devine. The Lloyds TSB Business Loan is secured by an all monies guarantee and charge provided by S J Devine and Mrs H M Devine.

Hire purchase liabilities are secured against the assets to which they relate.

The Lloyds TSB EFG loan is secured by way of debenture, over the assets of the company, along with an unsupported guarantee limited to £25,000, joint and several, from S J Devine and Mrs H M Devine. The Lloyds TSB Business Loan is secured by an all monies guarantee and charge provided by S J Devine and Mrs H M Devine.

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

The total commitments which are not included in the balance sheet amount to £49,395 (2018 - £91,599). These were in respect of operating leases.