Adman Group Limited - Limited company accounts 20.1

REGISTERED NUMBER: NI644789 (Northern Ireland)

ADMAN GROUP LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2021

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

Adrian McCrory

Martin Grimes

REGISTERED OFFICE:

4 Bankmore Way East

Doogary

OMAGH

Co. Tyrone

BT79 0NZ

REGISTERED NUMBER:

NI644789 (Northern Ireland)

AUDITORS:

McAleer Jackson Ltd

Chartered Accountants & Statutory Auditors

Church House

24 Dublin Road

OMAGH

Co. Tyrone

BT78 1HE

BANKERS:

Ulster Bank Limited

14 High Street

Omagh

Co. Tyrone

BT78 1BJ

SOLICITORS:

Logan & Corry

Tughans

Church House

Marlborough House

24 Dublin Road

30 Victoria Street

OMAGH

BELFAST

Co. Tyrone

Co. Antrim

BT78 1HE

BT1 3GG

The directors present their strategic report of the company and the group for the year ended 31 May 2021.

REVIEW OF BUSINESS

The company acts as a holding company for Adman Civil Projects Limited and Adman Services Limited.

The results for the period and the financial position of the group are as shown in the annexed financial statements.

The level of business during the period was satisfactory especially considering the difficult trading environment during the pandemic. It is the intention of directors to develop present activities to ensure an increase in turnover and profitability for the group.

PRINCIPAL RISKS AND UNCERTAINTIES

Performance in the sector is affected by general economic conditions. The Directors carry out regular strategic reviews including assessments of competitor activity, market trends and customer activity. The security of product supply is not considered to be a risk. The Group's management actively reviews the market and tender lists that are available and maximises opportunities. The Group's management are confident it can maintain its market share.

KEY PERFORMANCE INDICATORS (KPIS)

Given the nature of the business, the Group's directors view the principal KPI's of the business to be growth in turnover and operating profit

The directors are satisfied with the results for the year ended 31 May 2021 after taking into account the market conditions in which they operate. Turnover has increased by 4% in the year while the gross operating profit has increased by 9.7%.

The Group's main objective is to maintain their market position.

The directors have been trading successfully and have the necessary experience and expertise to deal with any changes in the industry including the impact of Brexit & Covid. The company has not made any changes to it's operations in the year ended 31 May 2021.

FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Group uses various financial instruments including cash and various items such as trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the Group's operations.

The existence of these financial instruments exposes the Group to a number of financial risks. The main risks arising from the Group's financial instruments are credit risk and liquidity risk.

The directors review and agree policies for managing each of the above risks.

ON BEHALF OF THE BOARD:

Martin Grimes - Director

26 January 2022

The directors present their report with the financial statements of the company and the group for the year ended 31 May 2021.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of building and civil engineering.

DIVIDENDS

No dividends will be distributed for the year ended 31 May 2021.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 June 2020 to the date of this report.

Adrian McCrory

Martin Grimes

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Group 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 the group 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;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, McAleer Jackson Ltd, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Martin Grimes - Director

26 January 2022

Opinion

We have audited the financial statements of Adman Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 May 2021 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 May 2021 and of the group's 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 group 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 group's and the parent 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 Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 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 group's and the parent 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 group or the parent 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.

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. We design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the company's remuneration policies, and performance targets;

- results of our enquiries of management and other key persons about the company's own identification and assessment of the risks of irregularities, including those that may occur either as a result of fraud or error, and matters we identified from our review of the company's policies, procedures and internal controls; and

- the matters discussed among the audit engagement team regarding potential indicators of fraud and where it might occur in the financial statements.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, pensions and tax legislation, together with provisions of other laws and regulations that do not have a direct effect on the financial statements, but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

From the above procedures, and in common with all audits under ISAs (UK), we identified the disclosure of adjusting items as a key audit matter with respect to the potential risk of fraud, particularly in areas where management is required to exercise significant judgement.

We tailored our response to those identified risks to include enquiring of management and external legal advisors concerning actual and potential litigation and claims, performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud, and reviewing correspondence with HMRC and other regulatory bodies.

In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias, and evaluated the business rationale of any significant transactions that are unusual or outside the normal course of business.

Whilst our engagement team were fully briefed on the fraud risks and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit, we draw attention to inherent limitations in the scope of audit procedures since fraud, by its nature, may involve deliberate concealment, misrepresentation 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.

Arnold Jackson (Senior Statutory Auditor)

for and on behalf of McAleer Jackson Ltd

Chartered Accountants & Statutory Auditors

Church House

24 Dublin Road

OMAGH

Co. Tyrone

BT78 1HE

26 January 2022

TURNOVER

15,445,240

14,891,657

Cost of sales

13,101,358

12,755,433

GROSS PROFIT

2,343,882

2,136,224

Administrative expenses

1,206,906

1,089,063

OPERATING PROFIT

5

1,136,976

1,047,161

Interest receivable and similar income

866

652

PROFIT BEFORE TAXATION

1,137,842

1,047,813

Tax on profit

6

216,190

202,365

PROFIT FOR THE FINANCIAL YEAR

921,652

845,448

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

921,652

845,448

Profit attributable to:

Owners of the parent

921,652

845,448

Total comprehensive income attributable to:

Owners of the parent

921,652

845,448

FIXED ASSETS

Tangible assets

8

-

27,019

Investments

9

-

-

-

27,019

CURRENT ASSETS

Stocks

10

2,803,527

1,923,374

Debtors

11

1,942,420

1,577,436

Cash at bank and in hand

3,655,687

4,735,229

8,401,634

8,236,039

CREDITORS

Amounts falling due within one year

12

3,121,479

3,942,522

NET CURRENT ASSETS

5,280,155

4,293,517

TOTAL ASSETS LESS CURRENT LIABILITIES

5,280,155

4,320,536

CREDITORS

Amounts falling due after more than one year

13

(41,126

)

-

PROVISIONS FOR LIABILITIES

17

-

(3,159

)

NET ASSETS

5,239,029

4,317,377

CAPITAL AND RESERVES

Called up share capital

18

300

300

Other reserves

19

100

100

Retained earnings

19

5,238,629

4,316,977

SHAREHOLDERS' FUNDS

5,239,029

4,317,377

The financial statements were approved by the Board of Directors and authorised for issue on 26 January 2022 and were signed on its behalf by:

Adrian McCrory - Director

Martin Grimes - Director

FIXED ASSETS

Tangible assets

8

-

-

Investments

9

300

300

300

300

TOTAL ASSETS LESS CURRENT LIABILITIES

300

300

CAPITAL AND RESERVES

Called up share capital

18

300

300

SHAREHOLDERS' FUNDS

300

300

Company's profit for the financial year

-

-

The financial statements were approved by the Board of Directors and authorised for issue on 26 January 2022 and were signed on its behalf by:

Adrian McCrory - Director

Martin Grimes - Director

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Balance at 1 June 2019

300

3,471,529

100

3,471,929

Changes in equity

Total comprehensive income

-

845,448

-

845,448

Balance at 31 May 2020

300

4,316,977

100

4,317,377

Changes in equity

Total comprehensive income

-

921,652

-

921,652

Balance at 31 May 2021

300

5,238,629

100

5,239,029

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 June 2019

300

-

300

Changes in equity

Balance at 31 May 2020

300

-

300

Changes in equity

Balance at 31 May 2021

300

-

300

Cash flows from operating activities

Cash generated from operations

1

(990,407

)

1,841,272

Tax paid

(136,859

)

(91,629

)

Net cash from operating activities

(1,127,266

)

1,749,643

Cash flows from investing activities

Purchase of tangible fixed assets

-

(18,085

)

Sale of tangible fixed assets

-

141,391

Interest received

866

652

Net cash from investing activities

866

123,958

Cash flows from financing activities

New loans in year

50,000

-

Capital repayments in year

(3,142

)

(28,201

)

Net cash from financing activities

46,858

(28,201

)

(Decrease)/increase in cash and cash equivalents

(1,079,542

)

1,845,400

Cash and cash equivalents at beginning of year

2

4,735,229

2,889,829

Cash and cash equivalents at end of year

2

3,655,687

4,735,229

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

2021

2020

£

£

Profit before taxation

1,137,842

1,047,813

Depreciation charges

-

10,649

Loss on disposal of fixed assets

27,019

54,788

Finance income

(866

)

(652

)

1,163,995

1,112,598

(Increase)/decrease in stocks

(880,153

)

485,309

Increase in trade and other debtors

(480,972

)

(423,622

)

(Decrease)/increase in trade and other creditors

(793,277

)

666,987

Cash generated from operations

(990,407

)

1,841,272

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 May 2021

31.5.21

1.6.20

£

£

Cash and cash equivalents

3,655,687

4,735,229

Year ended 31 May 2020

31.5.20

1.6.19

£

£

Cash and cash equivalents

4,735,229

2,889,829

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.20

Cash flow

At 31.5.21

£

£

£

Net cash

Cash at bank and in hand

4,735,229

(1,079,542

)

3,655,687

4,735,229

(1,079,542

)

3,655,687

Debt

Finance leases

(3,142

)

3,142

-

Debts falling due within 1 year

-

(8,874

)

(8,874

)

Debts falling due after 1 year

-

(41,126

)

(41,126

)

(3,142

)

(46,858

)

(50,000

)

Total

4,732,087

(1,126,400

)

3,605,687

1.	STATUTORY INFORMATION

Adman Group Limited is a private company, limited by shares , registered in Northern Ireland. The company's registered number and registered office address can be found on the General Information page.

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.

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The group financial statements consolidate the financial statements of Adman Group Limited and all its subsidiary undertakings drawn up to 31 May each year.

Basis of consolidation

The consolidated financial statements include the Company and its subsidiary undertakings. Intra-group sales and profits are eliminated fully on consolidation.

Significant judgements and estimates

When preparing the financial statements, management undertakes a number of judgements, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses. The following are significant management judgements in applying the accounting policies of the Company that have the most significant effect on the financial statements.

Turnover

Turnover represents the amount invoiced on contracts (excluding value added tax) during the year.

Work in progress

Work in progress on any long term contracts not yet taken to the profit and loss account as turnover are included in stocks at the sales value of work performed, less related foreseeable losses and payments on account.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transitional price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit and loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the Group 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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was as follows:

2021

2020

Site

61

58

Administration

28

25

89

83

4.	DIRECTORS' EMOLUMENTS

2021

2020

£

£

Directors' remuneration

19,200

16,060

Directors' pension contributions

80,000

80,000

99,200

96,060

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2021

2020

£

£

Other operating leases

77,448

63,624

Depreciation - owned assets

-

10,649

Loss on disposal of fixed assets

27,019

54,788

Auditors remuneration - audit services

6,075

5,785

Job Retention Scheme grants

(72,369

)

(255,693

)

6.

TAXATION

Analysis of the tax charge

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

2021

2020

£

£

Current tax:

UK corporation tax

165,217

161,698

Foreign corporation tax

54,842

65,305

Total current tax

220,059

227,003

Deferred tax

(3,869

)

(24,638

)

Tax on profit

216,190

202,365

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is the same as the standard rate of corporation tax in the UK.

2021

2020

£

£

Profit before tax

1,137,842

1,047,813

Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2020 - 19 %)

216,190

199,084

Effects of:

Deferred Tax at future rate

-

3,281

Total tax charge

216,190

202,365

7.	INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.