|
Basis of 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 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 report and financial statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 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 |
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. |
● |
Conclude on the appropriateness of the director's 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 final statements represent the underlying transactions and events in a manner that achieves fair presentation. |
● |
Obtain sufficient appropriate audit evidence regarding the financial information of the entity and business activities within the company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion. |
However there are inherent limitations in the audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion. |
|
Kaybridge Construction (Barnet) Limited |
Statement of Cash Flows |
for the year ended 31 August 2021 |
|
As restated |
Notes |
|
2021 |
|
2020 |
£ |
£ |
Operating activities |
Profit/(loss) for the financial year |
437,724 |
|
(2,755,139) |
|
Adjustments for: |
Profit on sale of fixed assets |
- |
|
(12,133) |
Interest receivable |
(182) |
|
(503) |
Interest payable |
8,125 |
|
9,353 |
Tax on profit/(loss) on ordinary activities |
110,590 |
|
101,430 |
Depreciation |
118,770 |
|
137,841 |
Decrease in stocks |
790,000 |
|
1,033,969 |
(Increase)/decrease in debtors |
(1,683,657) |
|
1,613,663 |
Increase/(decrease) in creditors |
1,730,288 |
|
(418,072) |
|
|
|
1,511,658 |
|
(289,591) |
|
Interest received |
182 |
|
503 |
Interest element of finance lease payments |
(8,125) |
|
(9,353) |
Corporation tax paid |
(293,625) |
|
- |
|
Cash generated by/(used in) operating activities |
1,210,090 |
|
(298,441) |
|
|
|
|
|
|
Investing activities |
Payments to acquire tangible fixed assets |
(27,465) |
|
(81,404) |
Proceeds from sale of tangible fixed assets |
- |
|
50,000 |
|
Cash used in investing activities |
(27,465) |
|
(31,404) |
|
|
|
|
|
|
Financing activities |
Equity dividends paid |
(100,000) |
|
(100,000) |
Capital element of finance lease payments |
(97,359) |
|
(54,754) |
|
Cash used in financing activities |
(197,359) |
|
(154,754) |
|
|
|
|
|
|
Net cash generated/(used) |
Cash generated by/(used in) operating activities |
1,210,090 |
|
(298,441) |
Cash used in investing activities |
(27,465) |
|
(31,404) |
Cash used in financing activities |
(197,359) |
|
(154,754) |
|
Net cash generated/(used) |
985,266 |
|
(484,599) |
|
Cash and cash equivalents at 1 September |
793,628 |
|
1,278,227 |
Cash and cash equivalents at 31 August |
1,778,894 |
|
793,628 |
|
|
|
|
|
|
Cash and cash equivalents comprise: |
Cash at bank |
1,778,894 |
|
793,628 |
|
|
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Leased assets |
|
A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term. |
|
2 |
Critical accounting estimates and judgements |
|
|
In applying the company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
|
3 |
Prior year adjustment |
|
|
Michael O’Connor Limited supplies labour, management services, and administration support to Kaybridge Construction (Barnet) Limited. Due to a change in accounting policy in Michael O'Connor Limited, work in progress is no longer recognised within that company and instead all costs incurred by that company are recharged to Kaybridge Construction (Barnet) Limited in the year in which they arise. The effects of this change are reflected as a prior year adjustment of £3,193,900 in subcontractors costs with a corresponding adjustment to the inter-company loan account with Michael O'Connor Limited in the 31/08/2020 accounts. The result of this adjustment is to reduce retained reserves brought forward by £3,193,900. |
|
|
As restated |
4 |
Analysis of turnover |
2021 |
|
2020 |
£ |
£ |
|
|
Sale of goods |
24,445,730 |
|
15,998,291 |
|
|
|
|
|
|
|
|
|
|
By geographical market: |
|
|
UK |
24,445,730 |
|
15,998,291 |
|
|
|
|
|
|
|
|
|
|
As restated |
5 |
Operating profit |
2021 |
|
2020 |
£ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
65,307 |
|
11,380 |
|
Depreciation of assets held under finance leases and hire purchase contracts |
|
53,463 |
|
126,461 |
|
Operating lease rentals - plant and machinery |
2,116,876 |
|
1,281,045 |
|
Operating lease rentals - land and buildings |
374,500 |
|
161,523 |
|
Auditors' remuneration for audit services |
15,450 |
|
15,000 |
|
Carrying amount of stock sold |
8,002,898 |
|
6,087,692 |
|
|
|
|
|
|
|
|
|
|
6 |
Staff costs |
|
|
The company had no employees in either 2021 or 2020. All management, administration and staff services are provided by Michael O'Connor Limited, a related party, (note 19). |
|
|
|
|
|
|
2021 |
|
2020 |
Number |
Number |
|
Average number of persons employed by the company |
- |
|
- |
|
|
As restated |
7 |
Interest payable |
2021 |
|
2020 |
£ |
£ |
|
|
Finance charges payable under finance leases and hire purchase contracts |
|
8,125 |
|
9,353 |
|
|
|
|
|
|
|
|
|
|
As restated |
8 |
Taxation |
2021 |
|
2020 |
£ |
£ |
|
Analysis of charge in period |
|
Current tax: |
|
UK corporation tax on profits of the period |
127,390 |
|
123,930 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
(16,800) |
|
(22,500) |
|
|
|
|
|
|
|
|
|
|
|
Tax on profit on ordinary activities |
110,590 |
|
101,430 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
|
2021 |
|
2020 |
£ |
£ |
|
Profit/(loss) on ordinary activities before tax |
548,314 |
|
(2,653,709) |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
19% |
|
19% |
|
£ |
£ |
|
Profit on ordinary activities multiplied by the standard rate of corporation tax |
|
104,180 |
|
(504,205) |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
6,412 |
|
606,841 |
|
Capital allowances for period in excess of depreciation |
16,798 |
|
21,294 |
|
|
Current tax charge for period |
127,390 |
|
123,930 |
|
|
|
|
|
|
|
|
|
|
|
|
|
9 |
Tangible fixed assets |
|
|
|
|
Plant and machinery |
|
Motor vehicles |
|
Total |
|
|
|
|
At cost |
|
At cost |
£ |
£ |
£ |
|
Cost or valuation |
|
At 1 September 2020 |
1,686,175 |
|
194,344 |
|
1,880,519 |
|
Additions |
27,465 |
|
- |
|
27,465 |
|
At 31 August 2021 |
1,713,640 |
|
194,344 |
|
1,907,984 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
At 1 September 2020 |
1,047,594 |
|
118,905 |
|
1,166,499 |
|
Charge for the year |
99,908 |
|
18,862 |
|
118,770 |
|
At 31 August 2021 |
1,147,502 |
|
137,767 |
|
1,285,269 |
|
|
|
|
|
|
|
|
|
|
Carrying amount |
|
At 31 August 2021 |
566,138 |
|
56,577 |
|
622,715 |
|
At 31 August 2020 |
638,581 |
|
75,439 |
|
714,020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
£ |
£ |
|
Carrying value of plant and machinery included above held under finance leases and hire purchase contracts |
|
262,253 |
|
537,089 |
|
|
|
|
|
|
|
|
|
|
As restated |
10 |
Stocks |
2021 |
|
2020 |
£ |
£ |
|
|
Raw materials and consumables |
284,782 |
|
116,179 |
|
Work in progress |
304,047 |
|
1,262,650 |
|
|
|
|
|
|
588,829 |
|
1,378,829 |
|
|
|
|
|
|
|
|
|
|
All agreed valuations at the year-end are treated as trade debtors under Note 11. |
|
As restated |
11 |
Debtors |
2021 |
|
2020 |
£ |
£ |
|
|
Trade debtors |
5,259,909 |
|
4,126,543 |
|
Other debtors |
757,574 |
|
207,283 |
|
|
|
|
|
|
6,017,483 |
|
4,333,826 |
|
|
|
|
|
|
|
|
|
|
|
As restated |
12 |
Creditors: amounts falling due within one year |
2021 |
|
2020 |
£ |
£ |
|
|
Directors' loans |
58,044 |
|
300,000 |
|
Obligations under finance lease and hire purchase contracts |
63,517 |
|
47,241 |
|
Trade creditors |
3,453,325 |
|
1,266,012 |
|
Corporation tax |
331,505 |
|
497,740 |
|
Other creditors |
140,912 |
|
356,431 |
|
Accruals and deferred income |
15,450 |
|
15,000 |
|
|
|
|
|
|
4,062,753 |
|
2,482,424 |
|
|
|
|
|
|
|
|
|
|
As restated |
13 |
Creditors: amounts falling due after one year |
2021 |
|
2020 |
£ |
£ |
|
|
Obligations under finance lease and hire purchase contracts |
8,430 |
|
122,065 |
|
|
|
|
|
|
|
|
|
|
As restated |
14 |
Obligations under finance leases and hire purchase |
2021 |
|
2020 |
|
contracts |
£ |
£ |
|
|
Amounts payable: |
|
Within one year |
63,517 |
|
47,241 |
|
Within two to five years |
8,430 |
|
122,065 |
|
|
|
|
|
|
71,947 |
|
169,306 |
|
|
|
|
|
|
|
|
|
|
|
As restated |
15 |
Deferred taxation |
2021 |
|
2020 |
£ |
£ |
|
|
Accelerated capital allowances |
111,700 |
|
128,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
£ |
£ |
|
|
At 1 September |
128,500 |
|
151,000 |
|
Credited to the profit and loss account |
(16,800) |
|
(22,500) |
|
|
At 31 August |
111,700 |
|
128,500 |
|
|
|
|
|
|
|
|
|
|
|
As restated |
16 |
Share capital |
Nominal |
|
2021 |
|
2021 |
|
2020 |
value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
20,000 |
|
20,000 |
|
20,000 |
|
|
|
|
|
|
|
|
|
|
As restated |
17 |
Profit and loss account |
2021 |
|
2020 |
£ |
£ |
|
|
At 1 September |
4,467,314 |
|
7,322,453 |
|
Profit/(loss) for the financial year |
437,724 |
|
(2,755,139) |
|
Dividends |
(100,000) |
|
(100,000) |
|
|
At 31 August |
4,805,038 |
|
4,467,314 |
|
|
|
|
|
|
|
|
|
|
As restated |
18 |
Dividends |
2021 |
|
2020 |
£ |
£ |
|
|
Dividends on ordinary shares (note 17) |
100,000 |
|
100,000 |
|
|
|
|
|
|
|
|
|
|
19 |
Related party transactions |
|
|
During the year the company paid rent of £374,500 on offices, yard and storage facilities owned by a director of the company (2020: £161,523). |
|
|
P M O'Connor |
|
At 31 August 2021 the company had an interest-free loan from P M O'Connor of £58,044 (2020: £300,000). |
|
Michael O'Connor Limited |
|
During the year the company paid service charges of £4,552,037, (2020: £7,895,639), to Michael O'Connor Limited, a company controlled by P M O'Connor. At the year-end the company owed £140,912 to Michael O'Connor Limited. |
|
Ronnoco Plant Limited |
|
At 31 August 2021 the company was owed £17,414 by Ronnoco Plant Limited, a company controlled by P M O'Connor. |
|
|
20 |
Controlling party |
|
|
The ultimate controlling party is P M O'Connor by virtue of her interest in 95% of the issued share capital of the company. |
|
|
21 |
Presentation currency |
|
|
The financial statements are presented in Sterling. |
|
|
22 |
Legal form of entity and country of incorporation |
|
|
Kaybridge Construction (Barnet) Limited is a private company limited by shares and incorporated in England. |
|
|
23 |
Principal place of business |
|
|
The address of the company's principal place of business and registered office is Tudor House, Cecil Road, Enfield, Middlesex, EN2 6TG. |