REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2021 |
for |
Ashe Construction Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Financial Statements for the Year Ended 31 December 2021 |
for |
Ashe Construction Limited |
Ashe Construction Limited (Registered number: 02373535) |
Contents of the Financial Statements |
for the Year Ended 31 December 2021 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 8 |
Report of the Independent Auditors | 10 |
Income Statement | 14 |
Other Comprehensive Income | 15 |
Balance Sheet | 16 |
Statement of Changes in Equity | 17 |
Cash Flow Statement | 18 |
Notes to the Cash Flow Statement | 19 |
Notes to the Financial Statements | 21 |
Ashe Construction Limited |
Company Information |
for the Year Ended 31 December 2021 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
SENIOR STATUTORY AUDITOR: |
AUDITORS: |
Statutory Auditors |
64 Wilbury Way |
Hitchin |
Hertfordshire |
SG4 0TP |
Ashe Construction Limited (Registered number: 02373535) |
Strategic Report |
for the Year Ended 31 December 2021 |
The directors present their strategic report for the year ended 31 December 2021. |
REVIEW OF BUSINESS |
Introduction |
Ashe is a construction business procuring projects which are generally between £2m and £15m in value for both the public and private sectors. Our normal regions of operation comprise the home counties, Thames Valley, East Anglia and the East Midlands. This year, we celebrate our 50th year of trading. |
From our office in Hitchin, Hertfordshire we serve a range of markets and industries delivering new build, refurbishment, alteration and fit-out work. Most or our work is procured through public sector frameworks under a design and build arrangement and the company's primary sectors are education, health and community, industrial, leisure and office. |
Business Review |
Business conditions in 2021 continued to be challenging on account of the Coronavirus pandemic and its aftermath. As global markets recovered and became revived following the success of mass vaccination roll outs, significant supply deficiencies emerged across all sectors which generated sharp inflationary pressures and shortages of materials. |
As a business, we averted much of the inflationary pressures by factoring in price increases at tender and negotiating appropriate cost increases with our customers once start dates were confirmed. We also placed orders earlier than normal and proposed products and designs, where practicable, that were more readily available and deliverable. Consequently, disruption and delays were minimised. |
Nonetheless, the impact of COVID was to reduce the potential for growth on account of customers delaying start dates because of price uncertainty as well as constraints endured by the supply chain. Overall, however, we are pleased to have maintained our level of turnover in relation to the previous year but more importantly, in 2021 we improved our margin significantly. |
We are proud of the way the business has operated and adapted throughout the pandemic. We continually improved the way our people were protected, both on site and in our offices, to ensure the impact of COVID was minimised. We increased our commitment to the health and wellbeing of our people, particularly in terms of providing mental health programmes and personal health assessments, and we embraced agile working to provide our workforce with greater flexibility and opportunity to work more sustainably and to maintain a healthy work - life balance. |
During 2021, the company's focus on frameworks continued with great success. Education remained our largest and most important sector but the area of most growth has been health both in relation to NHS funded projects and private health care. Our primary frameworks continue to be Pagabo and SCAPE but we also work on numerous others, such as the NHS SBS, Central Bedfordshire and Hertfordshire County Council frameworks, that afford us the opportunity to work in sectors in which we thrive. |
We place much value on repeat work with both customers, consultants and the supply chain to enhance our reputation and to reduce financial risk. Staff retainment in the business has remained high throughout 2021 and the business has continued to invest in its culture to reinforce our values, particularly in relation to safety, quality and people. We place huge importance on imbedding our values in our culture, not just amongst our teams, but also amongst our supply chain, because we want Ashe to be a place where our people and supply chain feel secure and can flourish. |
Last year, we maintained a high level of social value including the recruitment, support and education of our proteges. Our level of apprenticeships in 2021 was over 5% and our staff continue to reflect the diversity of our community. Our commitment to training and development remains high, exceeding the industry average and, despite the pandemic, we have continued to celebrate success and reward our people for excellence across a range of disciplines and outcomes. |
The company's high level of investment has also been maintained in both IT and infrastructure, both on site and in our offices. To this end over £100k has been invested in cyber security, video conferencing, facilities to promote agile working and infrastructure improvements to reduce the business' carbon footprint.. |
Ashe Construction Limited (Registered number: 02373535) |
Strategic Report |
for the Year Ended 31 December 2021 |
Our KPIs from 2021 demonstrate that the level of compliance in our work continues to rise, thereby improving the end product, reducing defects and their corresponding costs. Our customer care ensures post contract issues are addressed thoroughly and efficiently, and our customer health checks reflect a high level of customer satisfaction that continues to improve year on year. |
The leadership team and workforce showed enormous determination and spirit in dealing with the challenges from the aftermath of the pandemic and, supported by a dedicated supply chain, we have delivered a fantastic array of projects to a high standard. Indeed, the business has evolved successfully in 2021 and by seeking to continually improve every element of the business, we have demonstrated that under challenging circumstances the business remains dynamic, enterprising and resilient. |
Strategic Outlook |
Our objective is to build on our reputation by developing a sustainable business that serves the community responsibly and provides it with a place of opportunity, security and progression. |
Our ambition is to: |
- Be a contractor of choice in the markets we serve; |
- Be an employer of choice in our industry; |
- Be a dynamic, enterprising, successful and exciting organisation; |
- Harvest a culture of excellence with people at its core; |
- Promote sustainable methods to reduce the impact on our planet; |
- Provide social value to the community; |
- Grow sustainably, commensurate with our level of capability; |
- Invest to continually develop and improve; |
- Maintain financial resilience and avert undue exposure to risk; |
- Nurture new generations to embrace the business and continue its success. |
The projects we deliver and the revenues they generate are dependent on our level of capability, as well as our ability to learn and adapt to the challenges we face. People are therefore at our heart and by seeking to embrace the diversity and talent of our community, we seek to ensure each member of our team has the opportunity to develop and thrive in an inclusive, fair and secure environment. |
To ensure our long-term security and success we place great emphasis on the management of risk to protect liquidity and to ensure the company operates with a margin of safety that it can comfortably tolerate. A key objective therefore is to maintain a lean and dynamic organisation that is supported by strong business development, IT services and financial governance, underpinned by talented people and robust processes. |
Finally, we seek to be a progressive construction business that not only embraces best practice and new ideas, but one which converts our learning and new initiatives into a better approach to building to differentiate us from the competition. |
People |
As an Investor in People Silver accredited employer, we continually invest in the development, health and wellbeing of our people. Our level of training exceeds the industry standard and the majority of our people are or have been supported in a formal training or educational programme to enhance their level of expertise. |
At 5% our level of trainees and apprenticeships exceeds the industry norm and we pride ourselves on our problem solving approach to the construction process which is facilitated by the broad array of expertise on offer from our team. Our target is to achieve a level of apprenticeships of 10% by 2023. |
Conscious of the need to attract new talent into the industry we support key educational establishments in providing opportunities for those seeking work to choose a career or trade in construction. We also have numerous construction ambassadors representing the business and our industry who regularly engage with our partners in education to encourage potential candidates to join Ashe or our supply chain. |
Ashe Construction Limited (Registered number: 02373535) |
Strategic Report |
for the Year Ended 31 December 2021 |
Safety & Quality |
In 2021, we achieved the British Safety Council's 5-star award and our objective is to maintain a high level of safety and welfare for our workforce and to actively improve our quality standards each year. We believe safety and quality go hand-in-hand and to this end, the company embraces a continuous programme of cultural excellence and leadership for all managers and construction teams. |
Senior managers review SHEQ challenges on a weekly basis and regularly monitor the health and wellbeing of our employees, providing numerous vehicles for employee support, both physical and mental, and our Safety Leadership Team, comprising employee representatives from each construction discipline, consider new initiatives in developing our safety culture. |
In terms of compliance, we continually audit the quality of our workmanship using external advisors to assess the performance of our staff and our supply chain to ensure we continuously learn from our experiences. The lessons we learn from each project are fed forward to shape how we develop the business. |
Facilities & Systems |
As one of the first privately owned construction companies to attain ISO 9001, 14001 and 18001 accreditations, we understand how systems can promote business efficiency when they are aligned to the requirements of the organisation. |
In our pursuit to improve productivity, we continuously invest in new systems to enhance our ability to manage the complexities of the design and construction process. Our business continuity and disaster recovery plans have been developed from our own experiences and the importance we place on protecting the business in the face of a crisis. |
IT and cyber security is therefore given much emphasis and investment to ensure the business exploits the systems available to enhance productivity and business security. Furthermore, we value our ability to work flexibly to maximise efficiency, improve employee welfare and to minimise the impact on the planet. |
Corporate Social Responsibility |
Our sustainability agenda embraces a vast amount of common initiatives from social value to carbon reduction, employee welfare to cyber security, from charity to diversity, people development and opportunity. |
We want the work we do to yield a positive and lasting impact on the community and to reduce the carbon output arising from the spaces we create. Through our work we seek to |
- demonstrate that Ashe is a progressive, responsible, resilient and sustainable enterprise; |
- reduce the impact buildings have on the planet; |
- demonstrate our sustainability credentials to our customers; |
- earn the "right to play" in tomorrow's business world; |
- adapt to meet the challenges of climate change. |
Our recent achievements include a new school built to Passivhaus standards in Houghton Regis and a new teaching block for Bedford College with carbon positive credentials where the heat source from the River Ouse has been utilised. Currently, we are working on the design and delivery of two net zero carbon schools and several other carbon neutral schemes for the education sector. |
Furthermore, our commitment to social value and wider corporate and social responsibility ensures that we achieve social value at business and site levels. Our project teams consistently add to the construction process by engaging and educating stakeholders and the local community, demonstrating what it is we do, embracing them as part of the team and supporting curriculum activity. This helps ensure the buy-in of the local community and creates ownership of every project we undertake. |
We care about how our business impacts on society and on the planet and innovation plays a key role in helping us to improve the way we carry out our business. We continually monitor our performance and the innovations of our peers and of the wider industry to identify improvements we can make in our approach to maximising social, environmental and economic value. |
Ashe Construction Limited (Registered number: 02373535) |
Strategic Report |
for the Year Ended 31 December 2021 |
Our approach not only addresses how we are going to build but how we ensure that by the end of the construction process we have created a legacy for all stakeholders involved. |
Charity Work |
Over the past year, the company has supported numerous initiatives within education and health that supported student engagement, NHS provision and the community at large. Moreover, the company has contributed to food banks and homeless shelters in targeted areas to maximise impact. |
We continued to support specific charities precious to Ashe as well as our charity-based clients in raising funds and engaging with our supply chain partners to ensure an integrated fund-raising approach. In summary, charitable donations and social value exceeded £20,000 in 2021. |
Customer Care |
At Ashe, we maintain a healthy level of engagement with our customers post completion to ensure that the experience of Ashe remains a positive one after a building is handed over. |
At each project completion our site managers remain on site as part of our government aligned soft-landing process that supports the end users in their onboarding into their new environment. Once the site team has left site, our dedicated customer care team takes over the management of each project, dealing with any subsequent matters promptly and professionally. |
We hold regular post completion reviews to ensure any matters are addressed, a dialogue which we believe forms an essential part of managing and preserving customer relationships and one which enables us to disseminate the lessons learned throughout the organisation. |
Future Outlook |
Looking forwards and in the face of the current global challenges we face, the prospects are good with the company having secured its highest ever order book of over £55m. Tender enquires from the public sector are expected to remain healthy and the business is well placed within its frameworks to secure further work during 2022. |
As the impact of the pandemic subsides, the biggest challenge will be managing inflation which, at the time of writing, stands at 9%. To this end we will ensure the inflationary risk is understood by and shared with our customers and that key packages are de-risked as far as possible by placing orders early with resilient and sustainable suppliers. |
To mitigate risk further, our focus in 2022 is to procure negotiated work with public sector customers as far as practicable and to carefully navigate inflationary pressures by being selective with our work and agreeing contingencies with our customers for unexpected price increases. |
With Ashe's strong reputation within the public sector and associated frameworks, together with a highly motivated and talented team, we are confident that the business will continue to deliver safely, successfully and profitably in 2022. |
Ashe Construction Limited (Registered number: 02373535) |
Strategic Report |
for the Year Ended 31 December 2021 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The board of directors believe the following are the major risks and uncertainties that face the business: |
Finance |
The company does not depend on bank finance to provide its day-to-day working |
capital. |
However, debtors from both the private and public sector are not always prompt payers. Thus, the company aims to maintain a high level of liquidity. At the year end the company's current ratio was 1.6, indicating a healthy level of liquidity. |
Other threats might include significant claims, of which there are none at present, and customer and sub-contractor insolvency. |
The biggest impact on the business has arisen from the aftermath of the Coronavirus pandemic, notably in the form of labour and material shortages and inflation. However, by working closely with our customers and supply chain, risks are mitigated and alternative solutions can be found. |
Moreover, to mitigate the impact of customer failure, the company generally focuses on public sector works and by seeking to maintain a sustainable margin of safety, we ensure project risk is spread across many contracts of varying values. |
To minimise the threat of sub-contractor failure, the company procures most of its work through a tried and tested supply chain we call AsheForce within which we have established many long-term relationships. |
Resources and Skills |
Shortage of resources and skilled staff at all levels continues to be a constraint on expansion in the construction industry. There is no quick and easy solution but the company invests greatly in recruitment, education, training and developing talent at all ages and levels, particularly at trainee/apprentice level. |
The company embraces new technology both in terms of IT systems and pre-fabricated/ off-site construction techniques including SIPS, modular, elemental build and pre-fabricated elements. All such initiatives feature in the company's project portfolio and Ashe continues to develop its expertise in new technology to reduce waste and its impact on the planet. |
Health and Safety |
In the aftermath of the pandemic the company has reviewed and enhanced its processes and approach to building to ensure our workplaces and the welfare of our people continually improve. New initiatives are regularly introduced to ensure that the measures implemented by the company are effective and pragmatic. |
In all other aspects the company continues to monitor its performance and to act and improve all elements of the business as far as practicable to maintain its high levels of safety and welfare. |
Ashe Construction Limited (Registered number: 02373535) |
Strategic Report |
for the Year Ended 31 December 2021 |
SECTION 172(1) STATEMENT |
The board of directors of Ashe Construction Limited consider, both individually and together, that they have acted in the way they consider, in good faith, would most likely to promote the success of the company for benefit of its members as a whole having regard to the stakeholders and matters set out in S.172 (1)(a-f) of the Act in decision making during the year ended 31 December 2021. |
ON BEHALF OF THE BOARD: |
26 August 2022 |
Ashe Construction Limited (Registered number: 02373535) |
Report of the Directors |
for the Year Ended 31 December 2021 |
The directors present their report with the financial statements of the company for the year ended 31 December 2021. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of building contractors. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 December 2021 was £850,000. |
DIRECTORS |
The directors set out in the table below have held office during the whole of the period from 1 January 2021 to the date of this report. |
The directors shown below were in office at 31 December 2021 but did not hold any interest in the Ordinary shares of £1 each at 1 January 2021 or 31 December 2021. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the 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 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 then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | state whether applicable accounting standards 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. |
Ashe Construction Limited (Registered number: 02373535) |
Report of the Directors |
for the Year Ended 31 December 2021 |
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 company'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 company's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Ashe Construction Limited |
Opinion |
We have audited the financial statements of Ashe Construction Limited (the 'company') for the year ended 31 December 2021 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 31 December 2021 and of its 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 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 directors are responsible for the other information. The other information comprises the information in the 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 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 Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Ashe Construction Limited |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, or returns adequate for our audit have not been received from branches not visited by us; 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 |
As explained more fully in the Statement of Directors' Responsibilities set out on page eight, 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 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 have no realistic alternative but to do so. |
Report of the Independent Auditors to the Members of |
Ashe Construction Limited |
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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following: |
- the nature of the industry and sector, control environment and business performance including the Company's |
remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets |
- our enquiries of management regarding their own identification and assessment of the risks of irregularities |
- any matters identified from the Company's policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they had identified any instances |
of non-compliance |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual or suspected |
fraud |
- the internal controls established to mitigate the risks of fraud or non-compliance with laws |
- matters raised by the audit team regarding how and where fraud might occur in the financial statements |
As a result of the above we identified revenue recognition as a key audit matter relating to the potential risk of fraud |
The key risk in respect of revenue recognition is the valuation of work in progress at the year end. The procedures we performed to address this were: |
- identifying the relevant controls over the valuation process |
- testing supporting documentation and assessing any additional explanations obtained |
- reviewing in depth any projects that were highlighted as unusual or unexpected by our analytical review |
- reviewing subsequent valuations of a selection of projects to assess the accuracy and consistency of the year |
end valuations of those projects |
In addition to the above our procedures to respond to risks identified included: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with |
provisions of relevant laws and regulation described as having a direct effect on the financial statements |
- enquiring of management concerning actual or potential litigation and claims |
- reviewing minutes of meeting |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal |
entries and other adjustments, assessing whether the judgements made in accounting estimates are indicative of a |
potential bias and evaluating the business of any significant transactions that are unusual or outside the normal |
course of business |
In general we remained alert to any indications of fraud or non compliance with laws and regulations throughout the audit. |
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. |
Report of the Independent Auditors to the Members of |
Ashe Construction Limited |
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. |
for and on behalf of |
Statutory Auditors |
64 Wilbury Way |
Hitchin |
Hertfordshire |
SG4 0TP |
Ashe Construction Limited (Registered number: 02373535) |
Income Statement |
for the Year Ended 31 December 2021 |
31.12.21 | 31.12.20 |
Notes | £ | £ |
TURNOVER | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
883,162 | 242,324 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
PROFIT BEFORE TAXATION |
Tax on profit | 6 | ( |
) | ( |
) |
PROFIT FOR THE FINANCIAL YEAR |
Ashe Construction Limited (Registered number: 02373535) |
Other Comprehensive Income |
for the Year Ended 31 December 2021 |
31.12.21 | 31.12.20 |
Notes | £ | £ |
PROFIT FOR THE YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
Ashe Construction Limited (Registered number: 02373535) |
Balance Sheet |
31 December 2021 |
31.12.21 | 31.12.20 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
CURRENT ASSETS |
Debtors: amounts falling due within one year | 9 |
Debtors: amounts falling due after more than one year |
9 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 11 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 16 |
Retained earnings | 17 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Ashe Construction Limited (Registered number: 02373535) |
Statement of Changes in Equity |
for the Year Ended 31 December 2021 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 January 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2020 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2021 |
Ashe Construction Limited (Registered number: 02373535) |
Cash Flow Statement |
for the Year Ended 31 December 2021 |
31.12.21 | 31.12.20 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | ( |
) |
Government grants received |
Tax paid |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Net cash from investing activities | ( |
) |
Cash flows from financing activities |
Capital repayments in year | ( |
) |
Equity dividends paid | ( |
) | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
(Decrease)/increase in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year | 2 | 11,245,150 | 7,342,362 |
Cash and cash equivalents at end of year | 2 | 7,451,361 |
Ashe Construction Limited (Registered number: 02373535) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2021 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
31.12.21 | 31.12.20 |
£ | £ |
Profit before taxation |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Advanced by group undertakings | - | 695,300 |
Advanced to group undertakings | (2,940,118 | ) | - |
Government grants | ( |
) | ( |
) |
Finance income | (414 | ) | (19,654 | ) |
(1,993,208 | ) | 1,082,023 |
(Increase)/decrease in trade and other debtors | ( |
) |
Increase in trade and other creditors |
Cash generated from operations | ( |
) |
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 December 2021 |
31.12.21 | 1.1.21 |
£ | £ |
Cash and cash equivalents | 7,451,361 | 11,306,607 |
Bank overdrafts | ( |
) |
7,451,361 | 11,245,150 |
Year ended 31 December 2020 |
31.12.20 | 1.1.20 |
£ | £ |
Cash and cash equivalents | 11,306,607 | 7,342,362 |
Bank overdrafts | ( |
) |
11,245,150 | 7,342,362 |
Ashe Construction Limited (Registered number: 02373535) |
Notes to the Cash Flow Statement |
for the Year Ended 31 December 2021 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.21 | Cash flow | At 31.12.21 |
£ | £ | £ |
Net cash |
Cash at bank | 11,306,607 | (3,855,246 | ) | 7,451,361 |
Bank overdrafts | (61,457 | ) | 61,457 | - |
11,245,150 | ( |
) | 7,451,361 |
Debt |
Finance leases | (34,831 | ) | 29,212 | (5,619 | ) |
(34,831 | ) | 29,212 | (5,619 | ) |
Total | 11,210,319 | (3,764,577 | ) | 7,445,742 |
Ashe Construction Limited (Registered number: 02373535) |
Notes to the Financial Statements |
for the Year Ended 31 December 2021 |
1. | STATUTORY INFORMATION |
Ashe Construction Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover represents the value of goods and services provided, excluding value added tax. |
The company's accounting policy in respect of revenue recognition follows the requirements of FRS 102 section 23. |
Tangible fixed assets |
Tangible fixed assets are capitalised at cost. |
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter. |
Plant and machinery - 20% on cost |
Fixtures and fittings - 25% on cost |
Motor vehicles - 25% on cost |
Transit vans - 33% on cost |
IT - 33% on cost |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Ashe Construction Limited (Registered number: 02373535) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
2. | ACCOUNTING POLICIES - continued |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciate over their estimated useful lives or the lease term, whichever is shorter. |
The interest element of these obligations is charged to the profit and loss account over the relevant period. The capital element of the future payments is treated as a liability. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
At 31 December 2021, the company owed outstanding contributions of £33,311 (2020 - £31,413). |
Operating lease commitments |
Payments made under operating leases are charged in the profit and loss account as incurred. |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the company. |
An analysis of turnover by class of business is given below: |
31.12.21 | 31.12.20 |
£ | £ |
4. | EMPLOYEES AND DIRECTORS |
31.12.21 | 31.12.20 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
31.12.21 | 31.12.20 |
Administration | 30 | 25 |
Production | 61 | 76 |
Ashe Construction Limited (Registered number: 02373535) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
4. | EMPLOYEES AND DIRECTORS - continued |
31.12.21 | 31.12.20 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
Information regarding the highest paid director is as follows: |
31.12.21 | 31.12.20 |
£ | £ |
Emoluments etc |
Pension contributions to money purchase schemes |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
31.12.21 | 31.12.20 |
£ | £ |
Plant hire |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Auditor's remuneration |
Government grants |
Auditors remuneration charge to companies associated with Ashe Construction Limited totals £14,525. |
Ashe Construction Limited (Registered number: 02373535) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
6. | TAXATION |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
31.12.21 | 31.12.20 |
£ | £ |
Current tax: |
UK corporation tax |
Corporation tax overprovided in prior years | (112,807 | ) | (164,016 | ) |
Inter-group tax adjustment | (90,637 | ) | - |
R&D Tax Credit | (127,503 | ) | (112,407 | ) |
Total current tax | ( |
) | ( |
) |
Deferred tax |
Tax on profit | ( |
) | ( |
) |
Reconciliation of total tax credit included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
31.12.21 | 31.12.20 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Pension creditor adjustments | 5,087 | (496 | ) |
Deferred tax | 1,743 | 8,598 |
R&D Tax credit | (127,503 | ) | (112,407 | ) |
Group relief cross charge | (90,637 | ) | - |
Total tax credit | (139,777 | ) | (155,017 | ) |
7. | DIVIDENDS |
31.12.21 | 31.12.20 |
£ | £ |
Interim |
Ashe Construction Limited (Registered number: 02373535) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
8. | TANGIBLE FIXED ASSETS |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 January 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
Motor | Transit |
vehicles | vans | Totals |
£ | £ | £ |
COST |
At 1 January 2021 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
IT Equipment assets have been included in the Fixtures and Fittings total. |
Ashe Construction Limited (Registered number: 02373535) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
8. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Motor |
vehicles |
£ |
COST |
At 1 January 2021 |
Transfer to ownership | (43,905 | ) |
At 31 December 2021 |
DEPRECIATION |
At 1 January 2021 |
Charge for year |
Transfer to ownership | (25,611 | ) |
At 31 December 2021 |
NET BOOK VALUE |
At 31 December 2021 |
At 31 December 2020 |
9. | DEBTORS |
31.12.21 | 31.12.20 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Amounts owed by group undertakings |
Other debtors |
Deferred tax asset |
Accelerated capital allowances | 55,165 | 56,908 |
Prepayments and accrued income |
Amounts falling due after more than one year: |
Trade debtors |
Aggregate amounts |
Ashe Construction Limited (Registered number: 02373535) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.12.21 | 31.12.20 |
£ | £ |
Bank loans and overdrafts (see note 12) |
Hire purchase contracts (see note 13) |
Trade creditors |
Subcontractor creditors | 8,058,830 | 8,667,346 |
Amounts owed to group undertakings |
Corporation tax |
Other taxation and social |
security |
VAT | 1,642,654 | 688,749 |
Other creditors |
Accruals and deferred income |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.12.21 | 31.12.20 |
£ | £ |
Hire purchase contracts (see note 13) |
Subcontractor creditors | 1,580,590 | 1,793,176 |
12. | LOANS |
An analysis of the maturity of loans is given below: |
31.12.21 | 31.12.20 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
Ashe Construction Limited (Registered number: 02373535) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
13. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
31.12.21 | 31.12.20 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
31.12.21 | 31.12.20 |
£ | £ |
Within one year |
Between one and five years |
14. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.12.21 | 31.12.20 |
£ | £ |
Hire purchase contracts | 5,619 | 34,831 |
Hire purchase contract and finance lease liabilities are secured on the assets to which they relate. |
Ashe Construction Limited (Registered number: 02373535) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
15. | DEFERRED TAX |
£ |
Balance at 1 January 2021 | ( |
) |
Charge to Income Statement during year |
Balance at 31 December 2021 | ( |
) |
The recovery of the deferred tax asset is dependent on future taxable profits in excess of the deferred capital allowances at the balance sheet date. |
16. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 31.12.21 | 31.12.20 |
value: | £ | £ |
Ordinary | £1 | 200,000 | 200,000 |
17. | RESERVES |
Retained |
earnings |
£ |
At 1 January 2021 |
Profit for the year |
Dividends | ( |
) |
At 31 December 2021 |
18. | ULTIMATE PARENT COMPANY |
Ashe Group Holdings Limited is the Company's immediate and ultimate parent undertaking and holds 100% (2020 - 100%) of the controlling interests. The consolidated accounts of Ashe Group Holdings Limited can be obtained from Ashe House, Cooks Way, Hitchin, Herts SG4 0JE. |
Ashe Construction Limited (Registered number: 02373535) |
Notes to the Financial Statements - continued |
for the Year Ended 31 December 2021 |
19. | RELATED PARTY DISCLOSURES |
As a wholly-owned subsidiary of Ashe Group Holdings Limited throughout the current and previous year, the Company claims exemption, under FRS 102, Section 33, Paragraph 1A, from disclosing transactions with other group companies. |
During the year, the company made sales to Westover Building Consultants LLP totalling £480 (2020 - £1,024) and made purchases from Westover Building Consultants LLP totalling £2,043 (2020 - £562). The LLP is a related entity by the virtue of the fact that the directors R A Blake and N R Blake are common partners of the LLP. As at the year end the company was owed £37,587 (2020 - £84,000) from Westover Building Consultants LLP. |
During the year, the company made purchases from Perry Jensen Ltd totalling £68,115 (2020 - £45,570). Additionally the company paid rent totalling £16,625 (2020 - £16,625). Perry Jensen Ltd is a related entity by the virtue of the fact that the directors R A Blake and N R Blake are common directors. As at the year end the company owed £6,030 (2020 - £Nil) to Perry Jensen Ltd. |
During the year the company also paid rent totalling £49,875 (2020 - £49,875) to Colston Trustees Ltd who are the trustees of a SIPP for the directors R A Blake and N R Blake. |
During the year, the company made sales to A Morris totalling £227 (2020 - £167), M J Petts totalling £Nil (2020 - £14,000) and J Howard totalling £Nil (2020 - £49l), who are all directors of the company. |
At the year end the company had accrued income of £233,363 (2020 - £147,278) for unbilled work for R A Blake, a director of the company. The company invoiced £Nil (2020 - £Nil) during the current year for the same project. |