REGISTERED NUMBER: 08670500 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
PARKERAY LIMITED |
REGISTERED NUMBER: 08670500 (England and Wales) |
GROUP STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2022 |
FOR |
PARKERAY LIMITED |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
For The Year Ended 31 December 2022 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 9 |
Report of the Independent Auditors | 11 |
Consolidated Statement of Comprehensive Income | 14 |
Consolidated Balance Sheet | 15 |
Company Balance Sheet | 16 |
Consolidated Statement of Changes in Equity | 17 |
Company Statement of Changes in Equity | 18 |
Consolidated Cash Flow Statement | 19 |
Notes to the Consolidated Cash Flow Statement | 20 |
Notes to the Consolidated Financial Statements | 21 |
PARKERAY LIMITED |
COMPANY INFORMATION |
For The Year Ended 31 December 2022 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
1st Floor |
Ocean Village Innovation Centre |
Ocean Way |
Southampton |
Hampshire |
SO14 3JZ |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
The directors present their strategic report of the company and the group for the year ended 31 December 2022. |
Nature of business and future investment |
2022 saw the industry pick up significantly and we are happy with the approach we took during the pandemic to keep the team together so that we were able to respond immediately to these market changes. Our turnover increased to £125 million, close to where our pre-pandemic targets were heading. |
As we commented upon in previous reports, the market did see an uptick, and we were able to go into 2022 with a positive forward order book of £33 million in addition to a healthy pipeline and busy estimating period in Q1. |
In 2022 we also won a very significant and strategically important project in Cambridge, and we made the decision to form a new business unit covering the Oxford/Milton Keynes/Cambridge arc. We have invested in supporting a team to build that side of our business and we are seeing real momentum through 2023. This is an area of the business we are taking seriously for the long-term development of Parkeray and our people. |
Company overview |
Parkeray is a main contractor specialising in fit-out and refurbishment projects. We operate in the London, Home Counties, East Anglia and South East interior fitting out market. Our expertise is in the carefully considered planning, co-ordination and management of the whole construction process from tender to project completion. |
The type of work we undertake is invariably Category A for landlords or Category B office space across many sectors for corporate end user clients. Works can be provided either on a traditional tender basis or on a design and build basis, albeit we employ independent designers as and when required. |
Our workforce headcount through 2022 increased slightly, with an average of 164. We employ experienced construction-based managers, subdivided into the following disciplines: site based Operational Directors, Senior Project Managers, project managers, construction managers, commercial managers, technical services managers, planners, estimators and construction related directors. |
The skills of this in-depth, highly technical and experienced workforce combine to deliver our core service of corporate interior fitting out. |
We are an associate member of the Considerate Constructors Scheme (CCS); an honor bestowed by invitation based on us consistently achieving site scores in excess of the national average. |
All of our sites are registered with the scheme and are externally assessed on the following categories; enhancing the site appearance, respect for the community, protection of the environment, safety, and care for the work force. |
Employee involvement |
We believe we are a fair and trustworthy employer, and actively seek employee involvement. Regular meetings are held with employees to discuss sales, financial position and prospects. Opportunity is given at these meetings for senior management to be questioned about matters which may affect the employees. |
We are open and honest with our staff at all times and keep them informed of any company decisions we make, via face-to-face team meetings, personal letters or newsletters. We hold one-to-one meetings will all our employees; these are undertaken by a member of group board and feedback is requested and offered by both parties. The manner in which we communicate with our staff is as immediate and as heartfelt as possible. We keep all staff up to date with any company changes as they occur and consult them openly and democratically with company decisions. |
As we celebrated our 25th birthday, we have found this approach has always worked very well for us, and we see no reason to change. We are firmly of the opinion that this contributes to what we believe to be an enviable staff retention rate. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
Training and Development |
The Company is committed to the training and development of our staff and in line with this runs a comprehensive training programme that covers both professional and personal development, from our apprenticeships to board director training. |
General Training |
In line with good industry practice, our operational staff are trained in the following as a minimum requirement: |
First Aid at Work - training and qualifications provided by the British Red Cross |
Site Managers Safety Training Scheme (SMSTs) - comprehensive safety training endorsed by the Construction Industry Training Board (CITB) and a minimum requirement for our Project Managers |
Site Supervisors Safety Training Scheme (SSSTs) - comprehensive safety training endorsed by the Construction Industry Training Board (CITB) and a minimum requirement for our Site Operatives |
Construction Skills Certification Scheme (CSCS) - a number of our on-site employees hold this accreditation. As the scheme has changed its entry requirements, the company's emphasis is now on the more comprehensive CITB endorsed schemes above. |
All staff members have undertaken a Modern Slavery Awareness Training Course, and this will become an annual requirement in order to ensure awareness and understanding of the subject matter is current at all times. |
General management training is undertaken on a regular basis together with training across the company in such diverse subjects as mental health and wellbeing, coaching, presentation skills and contract review amongst many others as deemed necessary. |
Any new members to the board undertake Company Officer training, understanding legal and ethical requirements of being a company director. |
We also support individual's aspirations to further their careers by funding qualifications that cultivate their roles. |
These standards allow the Groups clients to be assured that the staff working on their projects are trained at the highest level. |
Graduate programme |
The company runs a comprehensive graduate trainee scheme where we recruit and support young professionals through their initial training by way of day release at university and a structured, on the job process. This scheme has been running for over sixteen years and has produced a good number of home-grown construction industry professionals , the majority of whom remain with the business. |
The training, development and advancement of new recruits continues to be an integral part of our business, underpinning much of what we do today and helps to inform what we might do tomorrow. |
As a business we have an unofficial goal that 20% of our staff base be made up of individuals that are either currently going through a formal training period or have completed one and remain focused within our employ, we now sit comfortably at that level on a regular basis. |
Our trainee and apprenticeship scheme is one we are immensely proud of. |
Trading and Finance Review of the business |
The profit and loss account shows turnover for the year of £125,808,075 and an operating profit of £607,963. |
Within the Group accounts after accounting for investment income of £43,407 we are satisfied to report a Group pre-tax profit of £651,369. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
Trading review |
We are so delighted with some of the wonderful projects we delivered throughout 2022 and some of the business opportunities these have opened up to us. |
Key performance indicators |
The Group has performed adequately throughout the year. Turnover increased by over 40% over the prior year, and our gross profit margin increased by over 50% over the year prior year, a welcome improvement after the drop we encountered during the pandemic. Cash balances continued to remain healthy, a reflection of good credit control within the group and also reflective of the calibre of clients that we have on our books. |
Like many other businesses we were impacted by the increase in inflation, both through our trade partners but also through wage demands as our workforce also suffered the same inflationary effects. Notwithstanding this we contained our overhead costs as best we could, and are delighted to report the 4-fold improvement in pre-tax profit for the year. |
Principal risks and uncertainties |
At the time of signing these statements, Parkeray continue to face three main risks. |
Although the immediate impacts of Covid-19 have reduced significantly, the cultural impact on the office market and how tenants utilize their buildings has changed. We are monitoring the market continuously and our company and marketing strategies are based largely on analyzing the data surrounding this. We have not experienced any downturn as such, but the scope has changed. Our clients want more collaborative space and are installing social and different areas to work in, to encourage staff back into the office. The developer market has also adapted; we are seeing an increase in end of trip facilities and more structural works to provide terraces and outside spaces. The life science market has also increased. We are following these trends and recruiting strategically to meet market demands. |
Brexit and the war in Ukraine are still causing increase in costs and delays in the availability of materials, products and components. We continue to monitor these with our supply chain on a daily basis to assess the impact it may have on individual projects. Early appointments have assisted in minimising these risks. |
The increased cost of living, growth in inflation, and volatility in oil prices globally have been heightened by the war in Ukraine. This impacts not only on industry prices but our people directly and we are monitoring how this may impact our staff base and manage that accordingly. |
We seek to sustain and improve our level of performance in the long term by actively managing risk across all areas of the business. This approach provides a stable environment for our people and ensures that clients can trade with us safe in the knowledge that risks are minimised to the best of our ability. |
Future prospects |
We continue to add to our pipeline with a robust business development strategy which has always served us well. The team are working with all areas of the business to engage with our clients, our relationships remain strong and we continue to develop long term working relationships with Clients through our Key Account Management. |
At the time of signing, we are happy with the level of enquiries we have on our books, they are higher than they have ever been and we are confident that this will continue throughout 2023 and into 2024. |
Our pipeline regularly sits as being four to five months ahead of the cumulative amount of where we need to be to hit our target. We involve all members of operational teams in the Business Development effort. |
It is our intention to continue to manage our workload in a structured and strategic manner encompassing our core values and our vision, only undertaking work we can deliver with excellence. |
As a board we can say with relative certainty what the impacts are upon our business model and discuss the outcomes in the going concern statements within this report. Accordingly the Directors consider it appropriate to prepare the accounts on a going concern basis. Further clarification of this view is given in the Directors' Report. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
Financial instruments |
The company holds or issues financial instruments to finance its operations. Operations are financed by retained profits. Working capital requirements are met out of retained profits. In addition, various financial instruments such as trade debtors and trade creditors arise directly from the company's operations. The company does not enter into any hedging arrangements. The company continues to provide performance bonds and parent company guarantees as additional comfort to clients, when requested. |
The company is mainly exposed to credit risk from credit sales. It is company policy to assess the credit risk of new customers and to factor the information from these credit ratings into future dealings with the customers. At the balance sheet date there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying amount of each financial asset in the balance sheet. |
The directors monitor the liquidity and cash flow risk of the company carefully. The company has investments in liquidity funds with the company's bankers which are used to manage fluctuations in cash flow. Cash flow is monitored by the directors on a regular basis. |
Payment of creditors |
The company's policy for all suppliers and sub-contractors is to fix terms of payment when agreeing the terms of each business transaction, to ensure that suppliers and sub-contractors are aware of these terms and to abide by the agreed terms of payment. |
Respect is a core Parkeray value that plays an important role in our communications, relationships and service delivery. We are proud to highlight the vital role it plays in our business, and we host two coffee mornings each year to promote mutual respect and respectful communication with a view of improving the image of our construction industry. We also hold an annual partnership forum where we report back to our supply-chain how we are doing as a business and highlight any areas of focus for us and what we would like their support with; such as our NetZero and Health and Safety targets. |
More so than that, we use our payment ethos to demonstrate respect for our supply chain by paying them on time. |
Parkeray company focus and policies |
Streamlined Energy & Carbon Reporting (SECR) |
In accordance with the Streamlined Energy & Carbon Reporting (SECR) requirements of the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Reporting) Regulations 2018 we have calculated the Carbon Dioxide emissions associated with our activities. |
We have determined our greenhouse house emissions, using the guidance contained in the Greenhouse Gas Protocol. Our calculation includes emissions arising from: |
- Corporate activities occurring in the United Kingdom. |
- The combustion of fuel, transport, and fugitive emissions arising from Parkeray's office. |
- Electricity consumed by our office and an estimate of electricity consumed by our construction activities. |
- All indirect greenhouse gas emissions that occur in the value chain of our business activities. |
Parkeray's greenhouse gas emissions were calculated using spend data and an average-data method, which was then multiplied by carbon emission conversion factors. We used the appropriate conversion factors for Greenhouse Gas Reporting provided by the Department for Environment, Food & Rural Affairs (DEFRA). Our carbon footprint captures scope 1, 2, and 3 carbon emissions for controlled assets and business activities. The reporting boundaries are based on the principle of operational control. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
We estimate that our corporate activities across the Group have resulted in the following tonnes of carbon dioxide equivalent emissions (CO2-eq): |
Baseline Year | 2022 | 2021 |
Scope 1 emissions from gas, transport, and fugitive emissions (tCO2-eq) | 0 | 0 |
Scope 2 emissions from electricity use (tCO2-eq) | 0 | 0 |
Total Scope 1 and 2 emissions (tCO2-eq) | 0 | 0 |
Scope 3 emissions (tCO2-eq) | 55,335.98 | *43,651.31 |
Total greenhouse gas emissions (tCO2-eq) | 55,335.98 | 43,651.31 |
Estimated energy consumption (kWh) | 1,507,027 | 1,086,199 |
Financial Year Turnover | £125,808,076 | £88,996,367 |
Greenhouse gas emissions/£100k (tCO2-eq/£100,000 Turnover) | 43.98 | 49.04 |
* Restated |
Based on the experience gained from calculating our 2021 carbon footprint, with an external consultant, our 2022 footprint has been calculated in house. During the preparation of our 2022 footprint calculation, we enhanced the detailing of our financial data capture and this has enabled us to restate our 2021 footprint reflected above. |
There are no emissions to report for scope 1 and scope 2. We have no fugitive emissions, and all vehicle activity is from leased vehicles which are therefore accounted for in scope 3. All electricity is sourced from electricity supplier Brook Green Supply who supply REGO-backed electricity. Electricity consumption is the only activity applicable for scope 2, however as all Parkeray's electricity is backed by REGOs (Renewable Energy Guarantees of Origin), zero emissions are reportable. |
During the 2022 financial year we have engaged with our key supply chain partners to share the experience gained by calculating our own carbon footprints. The aim being to increase the proportion of our supply chain who calculate their own carbon emissions and thereby assisting to improve the accuracy of the data used to calculate our own footprint. By calculating their own emissions, our supply chain partners will gain a better understanding of the source of their emissions and drive further emission reductions going forward. |
At the time of signing these accounts, we remain committed to science-based carbon reduction targets in accordance with the Science Based Target initiative (SBTi) for small and medium enterprises (SMEs). These targets are aligned with the Paris Agreement's aspiration to limit global warming to 1.5•C. We have committed to reduce absolute scope 1 and 2 greenhouse gas emissions by 38% by 2030 from a 2021 base year, and we have committed to measure and reduce scope 3 emissions. |
Health and safety at work |
The company has a policy for securing the health, safety and welfare at work of its employees and for protecting other persons against risks to health or safety arising out of or in connection with the activities at work of those employees. Health and safety training is maintained and updated as required in line with current guidance and regulations. |
Our Health & Safety Director sits on the operational boards of our Interiors and our Lite companies. His team also include two Health & Safety Managers who carry out regular and unannounced audits of all our projects, managers and subcontractors. |
The directors would like to thank the management and staff for their continued diligence in this area, which has served to reward us in achieving our 15th RoSPA Order of Distinction award at the annual awards. This is a huge accolade and one which we are incredibly proud of. |
In 2022 we had an increased focus on implementing the changes in the joint codes of practice; V10, and we rewrote our crane lift and lifting procedures. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
Health and Safety continues to be a focussed area of discussion at our annual Partnership Forum presentation and breakfast where we invite and discuss important matters on working together with our subcontractors and suppliers. |
Diversity, equality & inclusion (DE&I) |
We are an equal opportunities employer. We have a DE&I steering committee with Group Board level leadership and representation throughout the business. We have an annual strategy to highlight our objectives for the coming year and for us to improve upon. This was formed after undertaking a confidential and extensive staff survey, which we revisited in 2022, and which generated the following headline results: |
- 6.5% increase in female representation within the business |
- 4% increase in staff aged between 25-29 |
- The general sentiment of belonging, feeling valued and respected across our staff base continues and the perception is that Parkeray is already an inclusive company |
- Feedback on providing opportunities for staff to interact/socialise has decreased in comparison to 2021, this has been addressed and increased through the back end of 2022 and continuing into 2023. |
We are very aware that our industry doesn't always seem desirable to all so we hold schools roadshows in diverse communities to encourage entry into the industry. We are committed to pushing change as much as we can. During 2022, we continued our relationship with Coombe School by providing their business studies students with a Dragon's Den style experience. The students were tasked with exploring a potential business opportunity in their final year, they presented their ideas to our judging panel, made up of members of our leadership team and departments across the business. They volunteered their time to the initiative and spent an enjoyable and rewarding morning reviewing business ideas. We also introduced the students to careers in construction and the Parkeray Trainee Scheme, one of whom joins Parkeray in our 2023 intake. |
We continue to take on trainees across all areas of diversity to improve from the ground up and attend school's careers events to encourage applicants. |
We support all industry NextGen initiatives, with our COO Clare Ashmore holding the position of national Chair of the BCO Mentoring Programme and we also support the Mentoring Circle who support young women in our industry having within 8 months of graduation. |
If we can make a meaningful change to our industry, we will. |
Employment of disabled persons |
The company continues its policy regarding the employment of disabled persons. Full and fair consideration is given to applications for employment of disabled persons having regard to their particular aptitude and abilities. In the event of employees becoming disabled, every effort is made to retain them in order that their employment with the company may continue. |
It is the policy of the company that training, career development and promotion opportunities should be available to all employees. |
Wellbeing |
Over the past few years we have been focussing heavily on wellbeing, and the positive impacts enhanced wellbeing can have on worker productivity and engagement. |
Each year our Sustainability and Health & Safety teams work with Group Board representation to present a gap analysis between our current wellbeing provision and both minimum legal requirements and best practice and to also produce a Wellbeing Strategy to focus our efforts for the coming year. The strategy outlines our approach to wellbeing and the key concepts that guide our thinking in terms of activities to implement in the short, medium and long term. It is the intention of the Wellbeing Strategy to provide measures to support both physical and psychological wellbeing; the focus, improving mental fitness within Parkeray. This is equally applicable to both site and office-based staff regardless of fitness levels and gender. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
GROUP STRATEGIC REPORT |
For The Year Ended 31 December 2022 |
Mental health is a key area of focus for us following the recent pandemic. We have four trained mental health first aiders and we have provided mental health awareness training for an additional 32 senior staff members, including all board and senior management. We are rolling out this training throughout the business to make as many people sensitive to needs as possible. |
In addition, we continue to support worthy causes with entry to some great events, both as individuals and also as teams, which can reap many great rewards, with enhanced relationships among colleagues and improved fitness playing their part in assisting with balances between work and lifestyle, physical and mental health. |
Social Impact |
We are mindful of the social impact of our business and have taken steps during the 2022 reporting period to better understand the social value we generate. We have adopted the Themes Outcomes & Measures (TOMS) Framework to quantify the social value generated by our activities. By early 2024, we plan to have completed our first social value calculation based on our activity during the 2023 financial year. |
Charitable donations |
During the year the Group made charitable donations of £5,937. Corporate social responsibility features highly within our company ethos. We are proud of the work we do as a business to support charities, local schools, hospitals and care units in the vicinity to our places of work. |
In addition to this we pride ourselves on our approach to giving our time and expertise to local projects. Wellbeing is hugely important to us as a business and we have been actively encouraging and fully supporting our staff to be involved with sporting charitable events. |
Parkeray's Foodbank Appeal |
We proudly joined The Trussell Trust and its network of foodbanks in the fight against food poverty, by running a two-week foodbank appeal across our sites and HQ. |
Together with our staff and fantastic supply chain members, we raised 376.8kg of food, which provided foodbanks local to our projects in Crawley, Hackney, and Southampton with 38 three-day emergency parcels over the Christmas period. We also donated funds to the sum of £1,650 to this worthy cause, which created an additional 52 three-day emergency parcels for individuals and families in need. |
Evergreen Adventure Playground Centre |
Together with our client British Land and supply chain, we dedicated our time and skills to renovating the Evergreen Adventure Playground Centre in Hackney. It had been some time since the centre received a refresh, so our team was happy to assist. The scope of work included electrical works, upgrading welfare facilities including a new kitchen to a breakout area as well as external works comprising waterproofing a storage area. We also installed LEDs on the perimeter of the building. |
Makeover of Elhap office's |
We were thrilled to partner with our client Brookfield Properties and BDG Architecture to refresh Elhap's office in Woodford Green. We converted the existing storeroom and meeting room into three new office spaces and a meeting room together with our supply chain partners over four weeks to provide a modern workplace environment for the charity's staff and guests. |
Hours: 300+ Volunteering and time |
Value: £20K, work and materials donated |
ON BEHALF OF THE BOARD: |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
REPORT OF THE DIRECTORS |
For The Year Ended 31 December 2022 |
The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022. |
DIVIDENDS |
The directors paid a dividend of £36,950 (2021: £36,950) during the year. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report. |
Other changes in directors holding office are as follows: |
DISCLOSURE IN THE STRATEGIC REPORT |
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
REPORT OF THE DIRECTORS |
For The Year Ended 31 December 2022 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
AUDITORS |
The auditors, TC Group, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARKERAY LIMITED |
Opinion |
We have audited the financial statements of Parkeray Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2022 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARKERAY LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page nine, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
PARKERAY 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. |
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. |
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that relate to the reporting framework (UK GAAP and the Companies Act 2006) and the relevant tax compliance regulations in the UK. |
We understood how the company is complying with those frameworks by making enquiries of management and those responsible for legal and compliance procedures. We corroborated our enquiries through review of board minutes and discussions with those charged with governance. |
We assess the susceptibility of the company's financial statements to material misstatement, including how fraud might occur, by discussion with management from various parts of the business to understand where they considered there was a susceptibility to fraud. We considered the procedures and controls that the company has established to prevent and detect fraud, and how these are monitored by management, and also any enhanced risk factors such as performance targets. |
Based on our understanding, we designed our audit procedures to identify any non-compliance with laws and regulations identified in the paragraphs above. |
We also performed audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
1st Floor |
Ocean Village Innovation Centre |
Ocean Way |
Southampton |
Hampshire |
SO14 3JZ |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
CONSOLIDATED |
STATEMENT OF COMPREHENSIVE |
INCOME |
For The Year Ended 31 December 2022 |
2022 | 2021 |
as | restated |
Notes | £ | £ |
TURNOVER | 4 | 125,808,075 | 88,996,367 |
Cost of sales | 118,029,519 | 83,908,390 |
GROSS PROFIT | 7,778,556 | 5,087,977 |
Administrative expenses | 7,170,593 | 4,937,928 |
OPERATING PROFIT | 6 | 607,963 | 150,049 |
Interest receivable and similar income | 43,406 | 193 |
PROFIT BEFORE TAXATION | 651,369 | 150,242 |
Tax on profit | 7 | (484,982 | ) | (529,471 | ) |
PROFIT FOR THE FINANCIAL YEAR |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
CONSOLIDATED BALANCE SHEET |
31 December 2022 |
2022 | 2021 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 | 932,245 | 1,173,705 |
Investments | 12 | - | - |
932,245 | 1,173,705 |
CURRENT ASSETS |
Debtors | 13 | 25,027,899 | 20,330,439 |
Cash at bank | 12,458,852 | 11,433,426 |
37,486,751 | 31,763,865 |
CREDITORS |
Amounts falling due within one year | 14 | 29,506,107 | 25,085,381 |
NET CURRENT ASSETS | 7,980,644 | 6,678,484 |
TOTAL ASSETS LESS CURRENT LIABILITIES | 8,912,889 | 7,852,189 |
CREDITORS |
Amounts falling due after more than one year |
15 |
849,799 |
888,500 |
NET ASSETS | 8,063,090 | 6,963,689 |
CAPITAL AND RESERVES |
Called up share capital | 17 | 10,000 | 10,000 |
Other reserves | (26,691 | ) | (26,691 | ) |
Retained earnings | 8,079,781 | 6,980,380 |
SHAREHOLDERS' FUNDS | 8,063,090 | 6,963,689 |
The financial statements were approved by the Board of Directors and authorised for issue on 29 September 2023 and were signed on its behalf by: |
P J Pearce - Director | Ms C J Ashmore - Director |
A D Grint - Director |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
COMPANY BALANCE SHEET |
31 December 2022 |
2022 | 2021 |
as restated |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 11 |
Investments | 12 |
CURRENT ASSETS |
Debtors | 13 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
15 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 17 |
Other reserves | ( |
) | ( |
) |
Retained earnings |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 662,326 | 194 |
The financial statements were approved by the Board of Directors and authorised for issue on |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 31 December 2022 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 January 2021 | 10,000 | 6,337,617 | (26,691 | ) | 6,320,926 |
Changes in equity |
Dividends | - | (36,950 | ) | - | (36,950 | ) |
Total comprehensive income | - | 679,713 | - | 679,713 |
Balance at 31 December 2021 | 10,000 | 6,980,380 | (26,691 | ) | 6,963,689 |
Changes in equity |
Dividends | - | (36,950 | ) | - | (36,950 | ) |
Total comprehensive income | - | 1,136,351 | - | 1,136,351 |
Balance at 31 December 2022 | 10,000 | 8,079,781 | (26,691 | ) | 8,063,090 |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
For The Year Ended 31 December 2022 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 January 2021 | ( |
) |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2021 | ( |
) |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 31 December 2022 | ( |
) |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 31 December 2022 |
2022 | 2021 |
as | restated |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 146,635 | 1,077,902 |
Tax paid | 932,004 | 1,071,929 |
Net cash from operating activities | 1,078,639 | 2,149,831 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (59,669 | ) | (236,038 | ) |
Interest received | 43,406 | 193 |
Net cash from investing activities | (16,263 | ) | (235,845 | ) |
Cash flows from financing activities |
Equity dividends paid | (36,950 | ) | (36,950 | ) |
Net cash from financing activities | (36,950 | ) | (36,950 | ) |
Increase in cash and cash equivalents | 1,025,426 | 1,877,036 |
Cash and cash equivalents at beginning of year |
2 |
11,433,426 |
9,556,390 |
Cash and cash equivalents at end of year |
2 |
12,458,852 |
11,433,426 |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
For The Year Ended 31 December 2022 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2022 | 2021 |
as | restated |
£ | £ |
Profit before taxation | 651,369 | 150,242 |
Depreciation charges | 301,129 | 192,567 |
Finance income | (43,406 | ) | (193 | ) |
909,092 | 342,616 |
(Increase)/decrease in trade and other debtors | (5,101,737 | ) | 1,868,723 |
Increase/(decrease) in trade and other creditors | 4,339,280 | (1,133,437 | ) |
Cash generated from operations | 146,635 | 1,077,902 |
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 2022 |
31.12.22 | 1.1.22 |
£ | £ |
Cash and cash equivalents | 12,458,852 | 11,433,426 |
Year ended 31 December 2021 |
31.12.21 | 1.1.21 |
as restated |
£ | £ |
Cash and cash equivalents | 11,433,426 | 9,556,390 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.1.22 | Cash flow | At 31.12.22 |
£ | £ | £ |
Net cash |
Cash at bank | 11,433,426 | 1,025,426 | 12,458,852 |
11,433,426 | 1,025,426 | 12,458,852 |
Total | 11,433,426 | 1,025,426 | 12,458,852 |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
For The Year Ended 31 December 2022 |
1. | STATUTORY INFORMATION |
Parkeray Limited ("the Company" - registered number 08670500) is a private company limited by shares incorporated in England and Wales. The registered office and principal place of business is 2nd floor, 24 King William Street, London, EC4R 9AT. |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see Note 3). |
The Group's functional and presentational currency is GBP rounded to the nearest pound. |
Parent company disclosures exemption |
In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102: |
- Only one reconciliation of the number of shares outstanding at the beginning and end of the period has been presented as the reconciliations for the group and the parent company would be identical; |
- No cash flow statement has been presented for the parent company; |
- Disclosures in respect of the parent company's financial instruments have not been presented as equivalent disclosures have been provided in respect of the group as a whole; and |
- No disclosure has been given for the aggregate remuneration of the key management personnel of the parent company as their remuneration is included in the totals for the group as a whole. |
Going concern |
The Group's business activities, together with the factors likely to affect its future development and position, are set out in the Nature of business and future investment section of the Strategic Report. The Group expects to continue to generate positive cash flows on its own account for at least 12 months from the date of signing the financial statements. |
The directors have no reason to believe that a material uncertainty exists that may cast significant doubt about the ability of the Group to continue as a going concern or its ability to continue with the current banking arrangements. |
On the basis of their assessment of the Group's financial position, the Group's directors have a reasonable expectation that the Group will be able to continue in operational existence for at least 12 months from the date of signing the financial statements. Thus they continue to adopt the going concern basis of accounting in preparing the annual financial statements. |
Basis of consolidation |
The consolidated financial statements incorporate the results of Parkeray Limited and all of its subsidiary undertakings as at 31 December 2022 using the acquisition method of accounting. The results of subsidiary undertakings are included from the date of acquisition. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Turnover comprises the invoiced value of goods and services supplied by the group, exclusive of value added tax and trade discounts, together with work undertaken on construction contracts in progress where the value can be reliably estimated or has been certified but not yet invoiced to customers at the balance sheet date. |
Where turnover is recognised by reference to stage of completion, but un-invoiced, work on contracts in progress is recorded as 'Amounts recoverable on contracts' within debtors. The debtors recorded are net of any progress payments received from customers. |
Long-term construction contracts are assessed on a contract by contract basis and are reflected in the statement of comprehensive income 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 statement of comprehensive income as the difference between the reported turnover and related costs for that contract, with provisions being made for all probable losses. |
Tangible fixed assets |
Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management. |
Depreciation is provided to write off the cost, less estimated residual values, of all tangible fixed assets, except investment properties and freehold land, evenly over their expected useful lives. It is calculated at the following rates: |
Leasehold property | - Over the term of the lease |
Computer equipment | - 10% - 33.3% straight line |
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount. |
Investments in Subsidiaries |
Investments in subsidiaries held as fixed assets are stated at cost less any provision for impairment. |
Financial instruments |
The group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from bank and other third parties, loan's to related parties and investments in ordinary shares. |
Short term debtors and creditors are measured at the transaction price. Other financial instruments, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment. |
Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form. |
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Research and development |
Expenditure on research and development is written off in the year in which it is incurred. |
The group may be entitled to claim special tax allowances in relation to qualifying research and development expenditure (e.g. R&D Tax Credits). The group accounts for such allowances as Tax Credits, which means that they are recognised when it is probable that benefit will flow to the group and that benefit can be reliably measured. R&D Tax Credits reduce current tax expense and, to the extent the amounts due in respect to them are not settled by the balance sheet date, reduce current tax payable. |
Operating leases |
Leases that do not meet the criteria to be treated as finance leases are treated as operating leases. Annual rentals are charged to the profit and loss account on a straight line basis over the terms of the lease. |
Pension costs and other post-retirement benefits |
The group makes payments to certain employees' individual pension plans during the year. These payments are made where the employee has made a salary sacrifice accounting to the contribution. These payments are charged to the statement of comprehensive income, as a salary payment, in the year in which they are paid. |
Employee benefit trust ('EBT') |
The cost of the Group's shares held by the EBT is deducted from shareholders' funds in the Company and Group balance sheet. Any cash received by the EBT on disposal of the shares it holds is also recognised directly in shareholders' funds. Other assets and liabilities of the EBT (including borrowings) are recognised as assets and liabilities of the Group. |
Dividends |
Equity dividends are recognised when they become legally payable. Interim dividends are recognised when paid. Final equity dividends are recognised when approved by shareholders at an annual general meeting. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
2. | ACCOUNTING POLICIES - continued |
Reserves |
The Group and Company reserves are as follows: |
- Called up share capital reserve represents the nominal value of the shares issued |
- Profit and loss account represents cumulative profits or losses, net of dividends and other adjustments |
- Other reserve represent the acquisition by Parkeray Holdings Limited Employee Benefit Trust in shares in Parkeray Holdings Limited. |
3. | CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY |
Revenue and profit recognition on construction contracts |
The timing of revenue recognition on long-term funded contracts depends on the assessed stage of completion of contract activity at the balance sheet date. This assessment requires the expected total contract revenues and costs to be estimated based on the current progress of the contract. Sufficiently and appropriately qualified members of the team determine the stage of completion of a contract in relation to the specific contract specification which is often verified throughout the project directly with their customers. |
At year end management review the profitability of all construction contracts in place and consider whether there are any onerous contracts and subsequently unavoidable costs arising. Considered a present obligation arising from past events these costs are provided for and losses recognised immediately. After the reporting date management undertake a retrospective review to ensure completeness of onerous contract costs and if any costs incurred after the reporting date are indicative of conditions at year end they will be retrospectively provided for. |
4. | TURNOVER |
All turnover and profit on ordinary activities before taxation relates to the Group’s principal activity of rendering construction services carried out in the United Kingdom. |
5. | EMPLOYEES AND DIRECTORS |
2022 | 2021 |
as | restated |
£ | £ |
Wages and salaries | 16,558,891 | 11,285,767 |
Social security costs | 1,385,123 | 1,368,382 |
Other pension costs | 574,768 | 138,524 |
18,518,782 | 12,792,673 |
The average number of employees during the year was as follows: |
2022 | 2021 |
as | restated |
Administration | 37 | 21 |
Management | 30 | 14 |
Operational | 97 | 117 |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
5. | EMPLOYEES AND DIRECTORS - continued |
2022 | 2021 |
as | restated |
£ | £ |
Directors' remuneration | 2,552,869 | 2,218,188 |
Information regarding the highest paid director is as follows: |
2022 | 2021 |
as | restated |
£ | £ |
Emoluments etc | 304,960 | 210,000 |
The number of Directors in the company pension scheme during the year was 12 (2020 - 10). |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
2022 | 2021 |
as | restated |
£ | £ |
Other operating leases | 300,219 | 465,168 |
Depreciation - owned assets | 301,129 | 192,567 |
Auditors' remuneration: - fees payable to the group's auditor for the audit of the annual accounts |
44,500 |
42,500 |
- tax compliance services | 8,500 | 7,500 |
7. | TAXATION |
Analysis of the tax credit |
The tax credit on the profit for the year was as follows: |
2022 | 2021 |
as | restated |
£ | £ |
Current tax: |
UK corporation tax | (484,982 | ) | (529,471 | ) |
Tax on profit | (484,982 | ) | (529,471 | ) |
UK corporation tax was charged at 19 %) in 2021. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
7. | TAXATION - continued |
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: |
2022 | 2021 |
as | restated |
£ | £ |
Profit before tax | 651,369 | 150,242 |
Profit multiplied by the standard rate of corporation tax in the UK of 19 % (2021 - 19 %) |
123,760 |
28,546 |
Effects of: |
R&D Tax Credits | (640,016 | ) | (503,845 | ) |
Other movements | 31,274 | (54,172 | ) |
Total tax credit | (484,982 | ) | (529,471 | ) |
At Spring Budget 2023, the government announced an increase in the Corporation Tax main rate from 19% to 25% for companies with profits over £250,000. There is a small company rate of 19% for taxable profits under £50,000 and marginal relief available for profits falling between £50,000 - £250,000 with effect from 1 April 2023. Deferred tax has therefore been calculated at the future rate of 25%. |
8. | INDIVIDUAL STATEMENT OF INCOME |
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of income in these financial statements. |
9. | DIVIDENDS |
2022 | 2021 |
£ | £ |
Preference shares |
Final paid for the year of £0.10p (2020 - £0.10p) per share | 36,950 | 36,950 |
36,950 | 36,950 |
10. | PRIOR YEAR ADJUSTMENT |
Certain retentions payable and receivable totalling £518,996 and £569,053 respectively have been reclassified from amounts due in less than one year to amounts due in more than one year to better reflect their timing of payment. This adjustment has £nil impact on profit for the year and net assets. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
11. | TANGIBLE FIXED ASSETS |
Group |
Leasehold | Computer |
property | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2022 | 1,372,276 | 1,474,157 | 2,846,433 |
Additions | - | 59,669 | 59,669 |
At 31 December 2022 | 1,372,276 | 1,533,826 | 2,906,102 |
DEPRECIATION |
At 1 January 2022 | 702,178 | 970,550 | 1,672,728 |
Charge for year | 83,275 | 217,854 | 301,129 |
At 31 December 2022 | 785,453 | 1,188,404 | 1,973,857 |
NET BOOK VALUE |
At 31 December 2022 | 586,823 | 345,422 | 932,245 |
At 31 December 2021 | 670,098 | 503,607 | 1,173,705 |
Company |
Leasehold | Computer |
property | equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2022 |
Additions |
At 31 December 2022 |
DEPRECIATION |
At 1 January 2022 |
Charge for year |
At 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
12. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 January 2022 |
and 31 December 2022 |
NET BOOK VALUE |
At 31 December 2022 |
At 31 December 2021 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Registered office: See below |
Nature of business: |
% |
Class of shares: | holding |
Registered office: See below |
Nature of business: |
% |
Class of shares: | holding |
Registered office: See below |
Nature of business: |
% |
Class of shares: | holding |
All subsidiaries have the following registered office: 2nd Floor, 24 King William Street, London, EC4R 9AT. |
Parkeray Trustees Limited also has the following shareholdings in the parent company: |
110 A Ordinary shares, 730 B Ordinary shares and 149,007 Preference shares. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
13. | DEBTORS |
Group | Company |
2022 | 2021 | 2022 | 2021 |
as restated |
as restated |
£ | £ | £ | £ |
Amounts falling due within one year: |
Trade debtors | 12,895,167 | 8,148,728 |
Amounts owed by group undertakings | - | - |
Amounts recoverable on contract | 9,914,707 | 10,210,655 |
Other debtors | 760,596 | 267,330 |
Directors' current accounts | 387,304 | 365,784 | 367,304 | 365,784 |
Tax | 124,923 | 529,200 |
Prepayments and accrued income | 360,147 | 239,689 |
24,442,844 | 19,761,386 |
Amounts falling due after more than | one year: |
Amounts recoverable on contract | 585,055 | 569,053 |
Aggregate amounts | 25,027,899 | 20,330,439 |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
as restated |
as restated |
£ | £ | £ | £ |
Trade creditors | 5,112,108 | 2,015,317 |
Corporation tax | 42,745 | - |
Social security and other taxes | 320,479 | 469,079 |
Other creditors | 5,758 | - |
Accruals and deferred income | 6,651,520 | 5,543,166 |
Accrued contract costs | 17,373,497 | 17,057,819 | - | - |
29,506,107 | 25,085,381 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2022 | 2021 | 2022 | 2021 |
as restated |
as restated |
£ | £ | £ | £ |
Preference shares | 369,504 | 369,504 | 369,504 | 369,504 |
Accruals and deferred income | 480,295 | 518,996 |
849,799 | 888,500 |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - continued |
Preference shares were issued on 19 September 2013 as part consideration for the acquisition of Parkeray Limited. On 17 July 2014 a Special Resolution was passed that new Articles of Association be adopted that state that the preference shares carry a cumulative preferential dividend at a rate of 10%. The preference shares remain non-redeemable. These are classified as a financial liability in accordance with FRS 102. |
Details of shares shown as liabilities are as follows: |
Allotted, issued and fully paid: |
Number | Class | Nominal value | 2022 | 2021 |
369,504 | Preference shares | £1 | 369,504 | 369,504 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group and Company |
Non-cancellable |
operating leases |
2021 | 2020 |
£ | £ |
Within one year | 558,201 | 558,201 |
Between one and five years | 2,232,804 | 2,232,804 |
In more than five years | 2,279,321 | 2,837,552 |
5,070,326 | 5,628,557 |
17. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2022 | 2021 |
value: | as restated |
£ | £ |
Ordinary A | £1 | 9,270 | 9,270 |
Ordinary B | £1 | 730 | 730 |
10,000 | 10,000 |
The Ordinary B shares are non-voting shares but rank pari passu with the Ordinary A shares in all other respects. |
18. | PENSION COMMITMENTS |
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £117,217 (2021: £166,504). There were no amounts payable to the fund at the balance sheet date. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
19. | CONTINGENT LIABILITIES |
As at 31 December 2022, the group had provided counter indemnities to sureties in respect of performance bonds in support of ongoing contracts. The group had combined facilities of £12m (2021: £12m). |
The directors have determined that no specific provision is required for issued bonds and sureties. |
20. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 31 December 2022 and 31 December 2021: |
2022 | 2021 |
as | restated |
£ | £ |
A D Grint |
Balance outstanding at start of year | 336,866 | 280,000 |
Amounts repaid | (1,886 | ) | 56,886 |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 335,000 | 336,866 |
P J Pearce |
Balance outstanding at start of year | 3,869 | 3,869 |
Amounts repaid | (3,869 | ) | - |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 3,869 | 3,869 |
M J Murray |
Balance outstanding at start of year | 25,049 | 13,093 |
Amounts repaid | 3,386 | 11,956 |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 28,435 | 25,049 |
A director in a subsidiary has a balance of £20,000 (2021: Nil). |
21. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
PARKERAY LIMITED (REGISTERED NUMBER: 08670500) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
For The Year Ended 31 December 2022 |
Directors' advances, credits and guarantees |
Amounts owed | Amounts owed |
by directors at | by directors at |
31 December 2022 | 1 January 2022 |
Related party | £ | £ |
A D Grant | 335,000 | 336,866 |
P J Peace | 3,869 | 3,869 |
M J Murray | 28,435 | 25,049 |
The loans are interest free and repayable on demand. |
Key management personnel are considered to be the Directors. See note 5 for details of their remuneration. |
22. | ULTIMATE CONTROLLING PARTY |
The directors consider that there is no ultimate controlling party of Parkeray Limited. |