Relate AccountsProduction v2.5.2 v2.5.2 2020-12-01 The company was not dormant during the period The company was trading for the entire period Pre-engineering and manufacture of multi-storey accommodation modules. 5 September 2022 07429907 2021-11-30 07429907 2020-11-30 07429907 2019-11-30 07429907 2020-12-01 2021-11-30 07429907 2019-12-01 2020-11-30 07429907 uk-bus:PrivateLimitedCompanyLtd 2020-12-01 2021-11-30 07429907 uk-bus:FullAccounts 2020-12-01 2021-11-30 07429907 uk-bus:Director1 2020-12-01 2021-11-30 07429907 uk-bus:Director2 2020-12-01 2021-11-30 07429907 uk-bus:RegisteredOffice 2020-12-01 2021-11-30 07429907 uk-bus:Agent1 2020-12-01 2021-11-30 07429907 uk-bus:Audited 2020-12-01 2021-11-30 07429907 uk-core:ShareCapital 2021-11-30 07429907 uk-core:ShareCapital 2020-11-30 07429907 uk-core:RetainedEarningsAccumulatedLosses 2021-11-30 07429907 uk-core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests 2021-11-30 07429907 uk-core:TotalEquityAttributableToOwnersParentBeforeNon-controllingInterests 2020-11-30 07429907 uk-core:RetainedEarningsAccumulatedLosses 2020-11-30 07429907 uk-core:PriorPeriodErrorIncreaseDecrease 2020-12-01 2021-11-30 07429907 uk-core:RestatedAmount uk-core:RetainedEarningsAccumulatedLosses 2020-11-30 07429907 uk-core:RetainedEarningsAccumulatedLosses 2020-12-01 2021-11-30 07429907 uk-bus:FRS102 2020-12-01 2021-11-30 07429907 uk-core:LandBuildings 2020-12-01 2021-11-30 07429907 uk-core:Buildings 2020-12-01 2021-11-30 07429907 uk-core:PlantMachinery 2020-12-01 2021-11-30 07429907 uk-core:FurnitureFittingsToolsEquipment 2020-12-01 2021-11-30 07429907 uk-core:MotorVehicles 2020-12-01 2021-11-30 07429907 uk-core:TotalPropertyPlantEquipmentOtherThanExplorationEvaluationAssets 2020-12-01 2021-11-30 07429907 uk-core:TotalPropertyPlantEquipmentOtherThanExplorationEvaluationAssets 2019-12-01 2020-11-30 07429907 uk-core:CurrentFinancialInstruments 2021-11-30 07429907 uk-core:CurrentFinancialInstruments 2020-11-30 07429907 uk-core:WithinOneYear 2021-11-30 07429907 uk-core:WithinOneYear 2020-11-30 07429907 uk-core:WithinOneYear 2021-11-30 07429907 uk-core:WithinOneYear 2020-11-30 07429907 uk-core:EmployeeBenefits 2020-11-30 07429907 uk-core:EmployeeBenefits 2020-12-01 2021-11-30 07429907 uk-core:AcceleratedTaxDepreciationDeferredTax 2021-11-30 07429907 uk-core:TaxLossesCarry-forwardsDeferredTax 2021-11-30 07429907 uk-core:OtherDeferredTax 2021-11-30 07429907 uk-core:RevaluationPropertyPlantEquipmentDeferredTax 2021-11-30 07429907 uk-core:EmployeeBenefits 2021-11-30 07429907 uk-bus:OrdinaryShareClass1 2020-12-01 2021-11-30 07429907 uk-bus:OrdinaryShareClass1 2021-11-30 07429907 uk-core:WithinOneYear 2021-11-30 07429907 uk-core:WithinOneYear 2020-11-30 07429907 uk-core:BetweenTwoFiveYears 2021-11-30 07429907 uk-core:BetweenTwoFiveYears 2020-11-30 07429907 uk-core:AllPeriods 2021-11-30 07429907 uk-core:AllPeriods 2020-11-30 07429907 2020-12-01 2021-11-30 xbrli:pure iso4217:GBP xbrli:shares
 
 
 
Vision Modular Systems UK Limited
 
Reports and Financial Statements
 
for the financial year ended 30 November 2021



Vision Modular Systems UK Limited
DIRECTORS AND OTHER INFORMATION

 
Directors Christopher Hayes
Michelle Fleming
 
 
Company Registration Number 07429907
 
 
Registered Office and Business Address Vantage Point
Woburn Road Industrial Estate
Wolesley Road
MK42 7EF
 
 
Independent Auditors Crowley Young
Chartered Accountants
Level 1
Devonshire House
One Mayfair Place
London
W1J 8AJ
 
   
Solicitors Mayer Brown International LLP
  201 Bishopsgate
  London
  EC2M 3AF



Vision Modular Systems UK Limited
STRATEGIC REPORT
for the financial year ended 30 November 2021

 
The directors present their strategic report on the company for the financial year ended 30 November 2021.
 
Review of the Company's Business
Turnover for the year was £64.8m, compared with £63.4m in 2020 and there was a profit for the year before tax of £5.2m compared with a profit in the previous year of £6.9m..

Net assets at the year end were £44.4m compared with £40m in the previous year.

Costs have increased because of increasingly gloomy developments in the world and this has caused downward pressure on margins and profits.

The company finances it's operations primarily from retained earnings and working capital. The directors regularly monitor cash usage to ensure that projected needs are supported by adequate cash reserves.

The single biggest factor in our continuing success is our ability to embrace the revolution taking place in offsite construction and the development of modular technology. Modular construction ensures a more sustainable delivery of homes by significantly reducing waste, improving levels of recycling and reducing CO2 by 50%.Vision has delivered three of the world's five tallest modular buildings.
       
Financial Key Performance Indicators
Each project has budgetary and financial reporting procedures, supported by appropriate key performance indicators to manage credit, liquidity and other financial risk. Key performance indicators used by management include turnover and profitability per sqm and per project.
       
Section 172 Statement
The board of directors plan for the business is designed to have a long term beneficial impact on the company and to contribute to its success in delivering good quality residential accommodation.
Our employees are fundamental to the delivery of our plan. We aim to be a responsible employer in our approach to the pay and benefits our employees receive. The health, safety and well-being of our employees is one of our primary considerations in the way we do business.

We act responsibly and fairly in our dealings with our suppliers and our sub-contractors and co-operate with our regulators, all of whom are integral to the successful delivery of our plan.

We consider how our business impacts the community and the environment. The use of offsite construction methods significantly reduce traffic and pollution on and near construction sites.

As the Board of Directors, our intention is to behave responsibly and we ensure that all employees at management level act in a responsible manner, operating within the high standards of business conduct and good governance expected for a a business such as ours.

Our intention is to behave responsibly towards our shareholders and treat them fairly so they too may benefit from the successful delivery of our plan.
       
       
On behalf of the board
       
___________________________      
Christopher Hayes      
Director      
       
___________________________
Michelle Fleming
Director
       
5 September 2022      



Vision Modular Systems UK Limited
DIRECTORS' REPORT
for the financial year ended 30 November 2021

 
The directors present their report and the audited financial statements for the financial year ended 30 November 2021.
 
Principal Activity
Pre-engineering and manufacture of multi-storey accommodation modules.
     
Results and Dividends
The profit for the financial year after providing for depreciation and taxation amounted to £4,188,239 (2020 - £6,835,405).
The directors do not recommend payment of a dividend.
     
Directors
The directors who served during the financial year are as follows:
     
Christopher Hayes
Michelle Fleming
   
There were no changes in shareholdings between 30 November 2021 and the date of signing the financial statements.
     
Future Developments
The company plans to continue its present activities and current trading levels. Employees are kept as fully informed as practicable about developments within the business.
     
Events After the End of the Reporting Period
There have been no significant events affecting the company since the financial year-end.
     
Political Contributions
The company did not make any disclosable political donations in the current financial year.
     
Employee Engagement
Employees are kept as fully informed as practicable about developments within the business. It is the policy of the company to offer opportunities to all employees having regard to their aptitudes and abilities in relation to jobs available.
     
Statement of Directors' Responsibilities
             
The directors are responsible for preparing the Strategic Report, Directors' 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) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”. 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 apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-state whether applicable UK Accounting Standards comprising FRS 102 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.
                 
Disclosure of Information to Auditor
Each persons who is a director at the date of approval of this report confirms that:
In so far as the directors are aware:
-there is no relevant audit information (information needed by the company's auditor in connection with preparing the auditor's report) of which the company's auditor is unaware, and
-the directors have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
     
Auditors
The auditors, Crowley Young, (Chartered Accountants) have indicated their willingness to continue in office in accordance with the provisions of Section 485 of the Companies Act 2006.
     
     
On behalf of the board
     
___________________________
Christopher Hayes
Director
     
___________________________
Michelle Fleming
Director
     
5 September 2022



INDEPENDENT AUDITOR'S REPORT
to the Shareholders of Vision Modular Systems UK Limited

 
Report on the audit of the financial statements
 
Opinion
We have audited the financial statements of Vision Modular Systems UK Limited ('the company') for the financial year ended 30 November 2021 which comprise the Income Statement, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies set out in note . The financial reporting framework that has been applied in their preparation is applicable Law and United Kingdom Accounting Standards, including FRS 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 30 November 2021 and of its profit for the financial 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 Auditor's 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 the date 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 other information comprises the information included in the annual report other than the financial statements and our Auditor's Report thereon. The directors are responsible for the other information contained within the annual report. 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.
 
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 course of 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.
 
Opinion 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.
 
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified any material misstatements in the Strategic Report and the Directors' Report.
 
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
- 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 for the financial statements
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 they determine is 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 has no realistic alternative but to do so.
 
Auditor's 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 an Auditor's Report 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our procedures included: enquiry of management and those charged with Governance around actual and potential litigation and claims; enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; reviewing minutes of meetings of those charged with governance; reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; auditing the risk of management override of controls, including through testing journal entries and other adjustments for appropriateness.

A further description of our responsibilities for the audit of the financial statements is contained in the appendix to this report, located at page , which is to be read as an integral part of our report.
 
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 an auditor'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 members as a body, for our audit work, for this report, or for the opinions we have formed.
 
 
__________________________________
Fintan Crowley (Senior Statutory Auditor)
for and on behalf of
CROWLEY YOUNG
Chartered Accountants
Level 1
Devonshire House
One Mayfair Place
London
W1J 8AJ
 
5 September 2022



Vision Modular Systems UK Limited
APPENDIX TO THE INDEPENDENT AUDITOR'S REPORT

Further information regarding the scope of our responsibilities as auditor
 
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
 
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
 
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control.
 
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.
 
- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditor's Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditor's Report. However, future events or conditions may cause the company to cease to continue as a going concern.
 
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
 
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.



Vision Modular Systems UK Limited
INCOME STATEMENT
for the financial year ended 30 November 2021
2021 2020
Notes £ £
as restated

Turnover 5 64,817,165 63,452,715
 
Cost of sales (55,416,447) (54,070,086)
───────── ─────────
Gross profit 9,400,718 9,382,629
 
Distribution costs (921,847) (763,053)
Administrative expenses (3,403,632) (3,000,811)
Other operating income 452,997 1,100,930
───────── ─────────
Operating profit 6 5,528,236 6,719,695
 
Investment income 7 (89,962) 294,999
Interest payable and similar expenses 8 (194,745) (73,923)
───────── ─────────
Profit before taxation 5,243,529 6,940,771
 
Tax on profit 10 (1,055,290) (105,366)
───────── ─────────
Profit for the financial year 20 4,188,239 6,835,405
    ═════════   ═════════



Vision Modular Systems UK Limited
Company Registration Number: 07429907
STATEMENT OF FINANCIAL POSITION
as at 30 November 2021

2021 2020
Notes £ £
as restated
 
Non-Current Assets
Property, plant and equipment 12 6,613,118 7,941,759
───────── ─────────
 
Current Assets
Stocks 13 9,811,101 6,632,984
Debtors 14 41,064,534 39,250,648
Cash and cash equivalents 26 4,533,534 5,117,939
───────── ─────────
55,409,169 51,001,571
───────── ─────────
Creditors: amounts falling due within one year 15 (16,497,438) (18,154,500)
───────── ─────────
Net Current Assets 38,911,731 32,847,071
───────── ─────────
Total Assets less Current Liabilities 45,524,849 40,788,830
 
Provisions for liabilities 18 (1,107,780) (560,000)
───────── ─────────
Net Assets 44,417,069 40,228,830
═════════ ═════════
 
Capital and Reserves
Called up share capital 19 100 100
Retained earnings 20 44,416,969 40,228,730
───────── ─────────
Equity attributable to owners of the company 44,417,069 40,228,830
═════════ ═════════
 
           
Approved by the Board and authorised for issue on 5 September 2022 and signed on its behalf by
           
________________________________          
Christopher Hayes          
Director          
           
________________________________
Michelle Fleming
Director
           



Vision Modular Systems UK Limited
STATEMENT OF CHANGES IN EQUITY
as at 30 November 2021

Called up Retained Total
share earnings
capital
£ £ £
 
At 1 December 2019 100 33,393,325 33,393,425
───────── ───────── ─────────
Profit for the financial year - 6,835,405 6,835,405
───────── ───────── ─────────
At 30 November 2020
as previously stated 100 39,107,770 39,107,870
Prior financial year error correction (Note 11) - 1,120,960 1,120,960
  ───────── ───────── ─────────
At 30 November 2020 100 40,228,730 40,228,830
  ───────── ───────── ─────────
Profit for the financial year - 4,188,239 4,188,239
  ───────── ───────── ─────────
At 30 November 2021 100 44,416,969 44,417,069
  ═════════ ═════════ ═════════



Vision Modular Systems UK Limited
STATEMENT OF CASH FLOWS
for the financial year ended 30 November 2021
2021 2020
Notes £ £
as restated

Cash flows from operating activities
Profit for the financial year 4,188,239 6,835,405
Adjustments for:
Investment income 89,962 (294,999)
Interest payable and similar expenses 194,745 73,923
Tax on profit on ordinary activities 1,055,290 105,366
Depreciation 1,627,208 503,183
Profit/loss on disposal of property, plant and equipment (12,587) -
───────── ─────────
7,142,857 7,222,878
Movements in working capital:
Movement in provisions 140,000 140,000
Movement in stocks (3,178,117) (542,853)
Movement in debtors (2,746,379) 11,645,065
Movement in creditors (529,472) 2,259,547
───────── ─────────
Cash generated from operations 828,889 20,724,637
Interest paid (194,745) (73,923)
Tax paid (1,707,300) (117,000)
───────── ─────────
Net cash (used in)/generated from operating activities (1,073,156) 20,533,714
───────── ─────────
Cash flows from investing activities
Interest received   (89,962) 294,999
Payments to acquire property, plant and equipment   (300,980) (57,675)
Receipts from sales of property, plant and equipment   15,000 -
    ───────── ─────────
Net cash (used in)/generated from investment activities   (375,942) 237,324
    ───────── ─────────
Cash flows from financing activities
New short term loan   - 5,000,000
Movement in funding to connected parties   932,493 (24,636,392)
Movement in funding from connected parties   (67,800) (74,801)
    ───────── ─────────
Net cash generated from/(used in) financing activities   864,693 (19,711,193)
    ───────── ─────────
       
Net (decrease)/increase in cash and cash equivalents   (584,405) 1,059,845
Cash and cash equivalents at beginning of financial year   5,117,939 4,058,094
    ───────── ─────────
Cash and cash equivalents at end of financial year 26 4,533,534 5,117,939
    ═════════ ═════════



Vision Modular Systems UK Limited
NOTES TO THE FINANCIAL STATEMENTS
for the financial year ended 30 November 2021

   
1. General Information
 
Vision Modular Systems UK Limited is a company limited by shares incorporated and registered in the United Kingdom. The registered number of the company is 07429907. The registered office of the company is Vantage Point, Woburn Road Industrial Estate, Wolesley Road, MK42 7EF which is also the principal place of business of the company. The nature of the company's operations and its principal activities are set out in the Directors' Report. The financial statements have been presented in Pound Sterling (£) which is also the functional currency of the company.
         
2. Summary of Significant Accounting Policies
 
The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the company's financial statements.
 
Statement of compliance
The financial statements of the company for the financial year ended 30 November 2021 have been prepared in accordance with the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland (FRS 102) issued by the Financial Reporting Council and in accordance with the Companies Act 2006.
 
Basis of preparation
The financial statements have been prepared on the going concern basis and in accordance with the historical cost convention except for certain properties and financial instruments that are measured at revalued amounts or fair values, as explained in the accounting policies below. Historical cost is generally based on the fair value of the consideration given in exchange for assets.
 
Turnover
Turnover comprises the invoice value of goods supplied by the company, exclusive of trade discounts and value added tax.
 
Revenue recognition and long term contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract at the reporting end date. Variations in contract work are included to the extent that the amount can be measured reliably and its receipt is considered probable. Revenue not billed to clients is included in debtors and payments on account in excess of the relevant amounts of revenue are included in creditors.

Where it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probable that they will be recovered.

Where third party certificates are not available, the "percentage of completion method" is used to determine the appropriate amounts to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the total contract costs. Costs incurred in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided it is probable they will be recovered.
 
Property, plant and equipment and depreciation
Property, plant and equipment are stated at cost or at valuation, less accumulated depreciation. The charge to depreciation is calculated to write off the original cost or valuation of property, plant and equipment, less their estimated residual value, over their expected useful lives as follows:
 
  Land and buildings freehold - 2% Straight line
  Short leasehold property - Over the period of the lease of 10 years
  Plant and machinery - 20% Straight line
  Fixtures, fittings and equipment - 20% Straight line
  Motor vehicles - 25% Straight line
 
The carrying values of tangible fixed assets are reviewed annually for impairment in periods if events or changes in circumstances indicate the carrying value may not be recoverable.
 
Leasing
Rentals payable under operating leases are dealt with in the Income Statement as incurred over the period of the rental agreement.
 
Stocks
Stocks are valued at the lower of cost and net realisable value. Stocks are determined on a first-in first-out basis. Cost comprises expenditure incurred in the normal course of business in bringing stocks to their present location and condition.  Full provision is made for obsolete and slow moving items. Net realisable value comprises actual or estimated selling price (net of trade discounts) less all further costs to completion or to be incurred in marketing and selling.
 
Trade and other debtors
Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.
 
Borrowing costs
Borrowing costs relating to the acquisition of assets are capitalised at the appropriate rate by adding them to the cost of assets being acquired. Investment income earned on the temporary investment of specific borrowings pending their expenditure on the assets is deducted from the borrowing costs eligible for capitalisation. All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
 
Provisions
Provisions are recognised when the company has a present legal or constructive obligation arising as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation and a reliable estimate can be made. Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the same value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.
 
Trade and other creditors
Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost.
 
Employee benefits
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The company also operates a defined benefit pension scheme for its employees providing benefits based on final pensionable pay. The assets of this scheme are also held separately from those of the company, being invested with pension fund managers.
 
Taxation and deferred taxation
Current tax represents the amount expected to be paid or recovered in respect of taxable profits for the financial year and is calculated using the tax rates and laws that have been enacted or substantially enacted at the Statement of Financial Position date.

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more tax in the future, or a right to pay less tax in the future. Timing differences are temporary differences between the company's taxable profits and its results as stated in the financial statements. Deferred tax is measured on an undiscounted basis at the tax rates that are anticipated to apply in the periods in which the timing differences are expected to reverse, based on tax rates and laws that have been enacted or substantively enacted by the Statement of Financial Position date.
 
Government grants
Capital grants received and receivable are treated as deferred income and amortised to the Income Statement annually over the useful economic life of the asset to which it relates. Revenue grants are credited to the Income Statement when received.
 
Foreign currencies
Monetary assets and liabilities denominated in foreign currencies are translated at the rates of exchange ruling at the Statement of Financial Position date. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated at the rates of exchange ruling at the date of the transaction. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. The resulting exchange differences are dealt with in the Income Statement.
 
Research and development
Research expenditure is written off to the Income Statement in the financial year in which it is incurred.
 
Ordinary share capital
The ordinary share capital of the company is presented as equity.
   
3. Significant accounting judgements and key sources of estimation uncertainty
 
In preparing these financial statements, the directors have made the following judgements:

Accounting for long term manufacturing and construction contracts
Long term contracts are assessed on a contract by contract basis and are reflected in the profit and loss account by recording turnover and related costs as contract activity progresses. Where the outcome of each long term contract can be assessed with reasonable certainty before its conclusion, the attributable profit is recognised in the profit and loss account as the difference between reported turnover and related costs for the contract. Where losses are foreseen, a provision for the loss is made immediately in the profit and loss account.

Revenue recognition
Assumptions are made which complement third party certifications to assess whether module manufacturing and erection on site  is physically complete and hence the company's revenue recognition policy has been satisfied.
   
4. Going concern
 
The directors are required to consider whether the company can continue in operational existence for the foreseeable future and have carried out a rigorous assessment of forecasts and cash flows and the inherent uncertainty in these forecasts caused by higher-than-expected inflation wordwide, triggering tighter financial conditions and further negative spillovers from the war in Ukraine.

The forecasts have been stress tested to establish the impact of further lockdowns and a significant fall in construction activity as a result, and for a substantial increase in build costs. Under all scenarios, the company has significant headroom in terms of its liquidity.

The company's cash resources have remained healthy since the year end and based on current forecasted activity will continue to remain so. Therefore, the directors consider it appropriate for the financial statements to be prepared on a going concern basis.
       
5. Turnover
 
The whole of the company's turnover is attributable to its market in the United Kingdom and is derived from the principal activity of modular manufacturing and construction.
       
6. Operating profit 2021 2020
  £ £
Operating profit is stated after charging/(crediting):
Depreciation of property, plant and equipment 1,627,208 503,183
(Profit) on disposal of property, plant and equipment (12,587) -
Research and development
- expenditure in current financial year 371,499 415,615
Loss/(profit) on foreign currencies 174,748 (69,838)
Operating lease rentals
- Land and buildings 985,892 853,333
Auditor's remuneration
- audit services 10,000 10,000
Government grants received (452,997) (983,930)
  ═════════ ═════════
       
7. Income from investments 2021 2020
  £ £
 
Interest from associate undertakings (89,962) 294,999
  ═════════ ═════════
 
The company agreed to waive interest charged to two associated companies.
       
8. Interest payable and similar expenses 2021 2020
  £ £
 
On amounts payable to connected parties 24,395 9,626
On bank loans and overdrafts 146,895 29,294
Interest on overdue tax 23,455 35,003
  ───────── ─────────
  194,745 73,923
  ═════════ ═════════
       
9. Employees and remuneration
 
Number of employees
The average number of persons employed (including executive directors) during the financial year was as follows:
 
  2021 2020
  Number Number
 
Production and admisistration 174 238
Management 2 2
  ───────── ─────────
  176 240
  ═════════ ═════════
 
The staff costs (inclusive of directors' salaries) comprise: 2021 2020
  £ £
 
Wages and salaries 6,653,818 7,644,350
Social security costs 657,756 793,130
Pension costs 245,447 247,171
Staff compensation for loss of office 5,364 44,248
  ───────── ─────────
  7,562,385 8,728,899
  ═════════ ═════════
       
10. Tax on profit
  2021 2020
  £ £
(a)     Analysis of charge in the financial year
 
Current tax:
Corporation tax at 19.00% (2020 - 19.00%) 647,510 931,404
Under/over provision in prior financial year - (826,038)
  ───────── ─────────
Total current tax 647,510 105,366
  ───────── ─────────
 
Deferred tax:
Origination and reversal of timing differences 407,780 -
  ───────── ─────────
Total deferred tax 407,780 -
  ═════════ ═════════
Tax on profit  (Note 10 (b)) 1,055,290 105,366
  ═════════ ═════════
 
(b)     Factors affecting tax charge for the financial year
 
The tax assessed for the financial year differs from the standard rate of corporation tax in the United Kingdom 19.00% (2020 - 19.00%). The differences are explained below:
  2021 2020
  £ £
 
Profit taxable at 19.00% 5,243,529 6,940,771
  ═════════ ═════════
Profit before tax
multiplied by the standard rate of corporation tax
in the United Kingdom at 19.00% (2020 - 19.00%) 996,271 1,318,746
Effects of:
Expenses not deductible for tax purposes 570 1,078
Depreciation in excess of capital allowances for period 127,183 (93,534)
Deferred tax 407,780 -
Research and development (106,156) (114,926)
Patent Box relief (370,358) (179,960)
Adjustment to prior year - (826,038)
  ───────── ─────────
Total tax charge for the financial year (Note 10 (a)) 1,055,290 105,366
  ═════════ ═════════
 
   
11. Prior financial year adjustment
 
Corporation tax
 
The company has made a retrospective claim for R&D and patent box relief which has reduced the 2020 corporation tax liability by £294,922 and the 2019 liability by £826,038, a total saving of £1,120,960.

               
12. Property, plant and equipment
  Land and Short Plant and Fixtures, Motor Total
  buildings leasehold machinery fittings and vehicles  
  freehold property   equipment    
  £ £ £ £ £ £
Cost
At 1 December 2020 1,031,761 76,703 9,748,999 386,950 55,760 11,300,173
Additions - 102,905 128,075 - 70,000 300,980
Disposals - - - - (23,975) (23,975)
  ───────── ───────── ───────── ───────── ───────── ─────────
At 30 November 2021 1,031,761 179,608 9,877,074 386,950 101,785 11,577,178
  ───────── ───────── ───────── ───────── ───────── ─────────
Depreciation
At 1 December 2020 107,030 73,602 2,928,499 195,936 53,347 3,358,414
Charge for the financial year 20,635 13,391 1,498,292 77,390 17,500 1,627,208
On disposals - - - - (21,562) (21,562)
  ───────── ───────── ───────── ───────── ───────── ─────────
At 30 November 2021 127,665 86,993 4,426,791 273,326 49,285 4,964,060
  ───────── ───────── ───────── ───────── ───────── ─────────
Net book value
At 30 November 2021 904,096 92,615 5,450,283 113,624 52,500 6,613,118
  ═════════ ═════════ ═════════ ═════════ ═════════ ═════════
At 30 November 2020 924,731 3,101 6,820,500 191,014 2,413 7,941,759
  ═════════ ═════════ ═════════ ═════════ ═════════ ═════════

       
13. Stocks 2021 2020
  £ £
 
Raw materials 3,342,207 3,326,405
Work in progress 6,468,894 3,306,579
  ───────── ─────────
  9,811,101 6,632,984
  ═════════ ═════════
       
14. Debtors 2021 2020
  £ £
 
Trade debtors 10,958,870 12,275,027
Amounts recoverable on long term work-in-progress 3,982,474 -
Amounts owed by connected parties (Note 24) 25,732,139 26,664,632
Other debtors 23,502 352
Prepayments and accrued income 367,549 310,637
  ───────── ─────────
  41,064,534 39,250,648
  ═════════ ═════════
       
15. Creditors 2021 2020
Amounts falling due within one year £ £
 
Bank loan 5,000,000 5,000,000
Trade creditors 5,710,798 5,413,339
Amounts owed to connected parties (Note 24) 1,218,499 1,286,299
Taxation  (Note 16) 2,327,414 5,722,179
Other creditors 112,986 218,194
Accruals:
Pension accrual 18,980 30,949
Other accruals 2,108,761 483,540
  ───────── ─────────
  16,497,438 18,154,500
  ═════════ ═════════
       
16. Taxation 2021 2020
  £ £
 
Creditors:
VAT 1,463,361 3,765,510
Corporation tax 566,718 1,626,508
PAYE / NI 297,335 330,161
  ───────── ─────────
  2,327,414 5,722,179
  ═════════ ═════════
       
17. Details of creditors
 
Security given in respect of creditors
The bank hold a debenture and a fixed charge over the company's freehold properties as security for the loan.
           
18. Provisions for liabilities
 
The amounts provided for deferred taxation (due to timing differences between capital allowances and depreciation) and dilapidations  are analysed below:
 
  Capital Dilapidations Total Total
  allowances      
         
      2021 2020
  £ £ £ £
 
At financial year start - 560,000 560,000 420,000
Charged to profit and loss 407,780 140,000 547,780 140,000
  ───────── ───────── ───────── ─────────
At financial year end 407,780 700,000 1,107,780 560,000
  ═════════ ═════════ ═════════ ═════════
           
19. Share capital     2021 2020
      £ £
Description Number of shares Value of units    
 
Allotted, called up and fully paid
Ordinary 100 £1 each 100 100
 
      ═════════ ═════════
       
20. Profit and loss account
     
  2021 2020
  £ £
 
At 1 December 2020
as previously stated 39,107,770 33,393,325
Prior financial year adjustment 1,120,960 -
  ───────── ─────────
At 1 December 2020 40,228,730 33,393,325
Profit for the financial year 4,188,239 6,835,405
  ───────── ─────────
At 30 November 2021 44,416,969 40,228,730
  ═════════ ═════════
 
See note 11 for details of the prior year adjustment.
       
21. Financial commitments
 
Total future minimum lease payments under non-cancellable operating leases are as follows:
 
  Land and Buildings
  2021 2020
  £ £
Due:
Within one year 802,000 216,324
Between one and five years 2,673,333 -
  ───────── ─────────
  3,475,333 216,324
  ═════════ ═════════
       
22. Capital commitments
 
The company had no material capital commitments at the financial year-ended 30 November 2021.
       
23. Directors' remuneration 2021 2020
  £ £
 
Remuneration 50,000 45,833
  ═════════ ═════════
       
24. Related party transactions
  Balance Balance
  2021 2020
  £ £
 
Figsand Limited 1,315,418 1,817,104
Bermond Developments Limited 6,845,042 7,135,523
Tide Construction Limited - 162,407
VMS Modular Systems Ireland Limited - 154,940
The Valentine Real Estate Company Limited 5,447,790 5,529,191
Tollygate Limited 1,132,604 1,108,902
College Road Developments (Croydon) Limited 10,348,068 10,131,521
Tide Developments (2) Limited 638,404 625,044
Furadino Shipping Limited 4,813 -
  ───────── ─────────
  25,732,139 26,664,632
  ═════════ ═════════
 
The following amounts are due to other connected parties:
  2021 2020
  £ £
 
Tide Construction Limited 343,732 -
Donban Contracting UK Limited 874,767 1,286,299
  ───────── ─────────
  1,218,499 1,286,299
  ═════════ ═════════
 
Net balances with other connected parties:
  2021 2020
  £ £
 
Figsand Limited 1,315,418 1,817,104
Bermond Developments Limited 6,845,042 7,135,523
Tide Construction Limited (343,732) 162,407
VMS Modular Systems Ireland Limited - 154,940
Donban Contracting UK Limited (874,767) (1,286,299)
The Valentine Real Estate Company Limited 5,447,790 5,529,191
Tollygate Limited 1,132,604 1,108,902
College Road Developments (Croydon) Limited 10,348,068 10,131,521
Tide Developments (2) Limited 638,404 625,044
Furadino Shipping Limited 4,813 -
  ───────── ─────────
  24,513,640 25,378,333
  ═════════ ═════════
 
Interest of £89,962 was refunded on these loans (2020: received £294,998).

Interest of £24,395 (2020: £9,626) was paid on these loans.

All of the above companies are controlled by the shareholders of this company.

All of the turnover in 2021 and 2020 is to other entities controlled by the same beneficial owners of this company. Likewise, substantially all of the trade debtors is owed by those entities.

Cost of sales includes rent of £300,000 (2020: £575,000) payable to Figsand Limited (one of the companies listed above).

Administration costs include an amount of £452,316 (2020: £500,199) for management and administration costs charged by VMS Modular Ireland Limited.
   
25. Events After the End of the Reporting Period
 
There have been no significant events affecting the company since the financial year-end.
       
26. Cash and cash equivalents 2021 2020
  £ £
 
Cash and bank balances 4,533,534 5,117,939
  ═════════ ═════════