Caseware UK (AP4) 2022.0.179 2022.0.179 2022-12-312022-12-312022-12-3100The principal activity of the Company continued to be that of a holding company. The principal trading activity ofthe Group continued to be that of the management and delivery of construction projects as the principal maincontractor.2022-01-01false0falsefalse 03360940 2022-01-01 2022-12-31 03360940 2021-01-01 2021-12-31 03360940 2022-12-31 03360940 2021-12-31 03360940 2021-01-01 03360940 c:CompanySecretary1 2022-01-01 2022-12-31 03360940 c:Director1 2022-01-01 2022-12-31 03360940 c:Director2 2022-01-01 2022-12-31 03360940 c:Director3 2022-01-01 2022-12-31 03360940 c:Director4 2022-01-01 2022-12-31 03360940 c:Director5 2022-01-01 2022-12-31 03360940 c:Director5 2022-12-31 03360940 c:Director6 2022-01-01 2022-12-31 03360940 c:Director7 2022-01-01 2022-12-31 03360940 c:Director8 2022-01-01 2022-12-31 03360940 c:Director8 2022-12-31 03360940 c:RegisteredOffice 2022-01-01 2022-12-31 03360940 d:Buildings 2022-01-01 2022-12-31 03360940 d:MotorVehicles 2022-01-01 2022-12-31 03360940 d:FurnitureFittings 2022-01-01 2022-12-31 03360940 d:ComputerEquipment 2022-01-01 2022-12-31 03360940 d:CurrentFinancialInstruments 2022-12-31 03360940 d:CurrentFinancialInstruments 2021-12-31 03360940 d:Non-currentFinancialInstruments 2022-12-31 03360940 d:Non-currentFinancialInstruments 2021-12-31 03360940 d:CurrentFinancialInstruments d:WithinOneYear 2022-12-31 03360940 d:CurrentFinancialInstruments d:WithinOneYear 2021-12-31 03360940 d:ShareCapital 2022-12-31 03360940 d:ShareCapital 2021-12-31 03360940 d:ShareCapital 2021-01-01 03360940 d:RevaluationReserve 2022-01-01 2022-12-31 03360940 d:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 03360940 d:RetainedEarningsAccumulatedLosses 2022-12-31 03360940 d:RetainedEarningsAccumulatedLosses 2021-01-01 2021-12-31 03360940 d:RetainedEarningsAccumulatedLosses 2021-12-31 03360940 d:RetainedEarningsAccumulatedLosses 2021-01-01 03360940 c:OrdinaryShareClass1 2022-01-01 2022-12-31 03360940 c:OrdinaryShareClass1 2022-12-31 03360940 c:OrdinaryShareClass1 2021-12-31 03360940 c:FRS102 2022-01-01 2022-12-31 03360940 c:Audited 2022-01-01 2022-12-31 03360940 c:FullAccounts 2022-01-01 2022-12-31 03360940 c:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 03360940 d:Subsidiary2 2022-01-01 2022-12-31 03360940 d:Subsidiary2 1 2022-01-01 2022-12-31 03360940 c:Consolidated 2022-12-31 03360940 c:ConsolidatedGroupCompanyAccounts 2022-01-01 2022-12-31 03360940 5 2022-01-01 2022-12-31 03360940 6 2022-01-01 2022-12-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 03360940










SPRITESTORE LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

 
SPRITESTORE LIMITED
 
 
COMPANY INFORMATION


Directors
J. H. Chadwick 
M. A. Steel 
J. C. Noble 
D. B. Dixon 
M. D. Mullarkey 
T. J. Puttick 




Company secretary
M. A. Steel



Registered number
03360940



Registered office
4 Abbey Wood Road
Kings Hill

West Malling

Kent

ME19 4AB




Independent auditors
Simmons Gainsford LLP
Chartered Accountants & Statutory Auditors

14th Floor

33 Cavendish Square

London

W1G 0PW





 
SPRITESTORE LIMITED
 

CONTENTS



Page
Group Strategic Report
 
1 - 5
Directors' Report
 
6 - 10
Independent Auditors' Report
 
11 - 14
Consolidated Statement of Comprehensive Income
 
15
Consolidated Balance Sheet
 
16
Company Balance Sheet
 
17
Consolidated Statement of Changes in Equity
 
18
Company Statement of Changes in Equity
 
19
Consolidated Statement of Cash Flows
 
20
Consolidated Analysis of Net Debt
 
21
Notes to the Financial Statements
 
22 - 38


 
SPRITESTORE LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

Introduction
 
The directors present the group strategic report for the year ended 31st December 2022.

Business review
 
We are pleased to report that despite the continuation of uncertainty during 2022 following the Coronavirus pandemic the year marked a full recovery to pre-pandemic trading levels and provided a firm growth platform for the future.
As part of an ongoing strategic review of the business, focused on positioning the business toward future opportunities, implementation of the succession plan of the operating board continued.
This year’s results and performance, more than ever, justify the strength of our relationships with our clients and supply chain and the quality, professionalism and commitment of our staff to accept and adapt their working environments during the challenges of the year. Construction costs were impacted by inflation pressures, largely driven by material price increases, a product of Brexit, covid, the market turmoil following political uncertainty in 2022 and the war in the Ukraine. All of this had an impact on margins realised on previously secured work. 
Working closely and collaboratively with our client teams enabled us to work continuously through the year and deliver quality schemes to agreed timescales on budget.
Health and Safety of our staff and supply chain remains very focused and at the forefront of what we do as part of our business ethics and this helped us navigate the new rules and guidelines for operating on our projects and maintained an excellent record during the period.   

Principal risks and uncertainties
 
Economic uncertainty remains the single biggest risk within the construction sector and we manage these risks through robust systems and procedures. We have a healthy forward order book for repeat order clients through 2023 into 2024 and continue to build our reputation and client list through our proven delivery record. 
Additionally, the speed and extent of economic recovery from the Coronavirus pandemic continued to impact on our sector through inflationary pressures and instability within the supply chain. We continue to monitor closely our supply chain and clients to manage risks on new and existing projects. We have adapted the way we operate our business and have continued to work with our clients to manage the risks on both existing and new projects, to ensure that there is no detrimental effect on the business’s ability to continue to trade.  
We have and continue to work hard to insulate the business from exposure to the inflation pressures mention previously to ensure that we achieve a recovery of margins to normal levels.

Page 1

 
SPRITESTORE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Financial key performance indicators
 
 Some of the key performance indicators are as follows:
                                                                                             
    2022                                    2021
                                                                                                £’000s                                £’000s
Turnover                                                                                223,412                              156,669
Profit before tax                                                                         1,276                                     862
Profit after tax                                                                            2,287                                     591
Net assets                                                                                15,859                                12,921
The policy of controlling costs and turnover whilst carefully managing cash flow are at the core of our financial success.
We maintain a healthy shareholders fund which has proven our stability and consistency. 2022 saw trading levels recovering to pre-pandemic levels. Profits were impacted by the repositioning of the business strategy. We also successfully completed our new office development in Doncaster, which was fully funded by the business.
A loan facility made by the business in a previous year expired post year end and has now been repaid (final payment 31st July 2023).

Other key performance indicators

Client satisfaction, supply chain satisfaction and staff retention are all other key performance indicators along with continued achievements in environmental, quality and health and safety compliance confirmed by awards secured by our teams.


Principal activities

The principal activity of the Company continued to be that of a holding company. The principal trading activity of
the Group continued to be that of the management and delivery of construction projects as the principal main
contractor.

Section 172 Companies Act 2006 Statement

The directors consider that the decisions taken during the financial year comply with the requirements of s172(1) of the Companies Act 2006. 
Who we are and what we do
Spritestore Limited, is the ulltimate parent company of the RG Group's trading company, RGCM Limited, which is one of the UK’s leading, privately held limited construction companies, with all directors being the ultimate sole shareholders and having a close day to day involvement in the management and operation of our business, which performs a wide range of construction projects in the UK.
 
Page 2

 
SPRITESTORE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


The Role of the Board
The Board’s primary responsibility is to promote the long-term success of the Group by delivering projects that meet the client’s expectations including on time, on budget and safely and to the highest quality standards so as to maintain the Group’s financial viability.
This is affected by setting out our strategy with the ongoing performance monitoring. The Board holds Board meetings monthly to review the main aspects of our business, including financial reviews and forecasts, resources, internal controls, performance, opportunities and risks.
All directors are directly responsible for and involved in all projects with day-to-day management carried out by senior management and must act in the way he/she considers, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole, and in doing so have regard to key issues including the interests of the stakeholders in both the short and long term.
1. The likely consequence of any decision in the long-term
A short and long term plans are prepared and monitored by the Board, based on financial and operating performance against key strategies and objectives, and amended as necessary, with an annual review.
Key issues in preparing and reviewing the strategic plans are the economic climate, market conditions, retention of existing clients, new opportunities, competition and construction industry performance, construction industry market trends both short term and long term.
The consequences of both short term and long-term strategies and decisions are carefully balanced to ensure that all decisions made are for the long-term benefit, whilst recognising any short-term constraints and implications.
2. The interest of the Group’s employees
 
The Directors understand the importance of our employees to the long-term success of the business and being closely involved in the day to day operations of the business are familiar with each employee and thus able to assess their performance and provide guidance and further training as necessary.
We aim to recruit & retain motivated and competent people and we believe in promotion from within as reward for performance and dedication, and to demonstrate a clear path for progression. Over the years many employees have been promoted to senior positions in the Group.
Ongoing training and personal development are key strategies in our HR principles and the Group communicates to our employees via internal group-wide emails, presentations, and news posts. 
The Group has a well-developed intranet allowing our employees to easily access any information that they need, both on a project and corporate basis, and social media channels are developing to enhance communication and employee feedback.
Regular meetings are held between the Directors and senior management to review projects and project finances, time and quality performance, resources and any other issues that could impact on the satisfactory delivery and completion of projects.
 
Page 3

 
SPRITESTORE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


3. The need to foster the Group’s business relationships with suppliers, customers and others
The Group has always believed that good business relationships with Clients and suppliers, including specialist contractors, is key to our ongoing success, and the Directors develop close relationships with them to ensure that we fully understand each other’s strategies and objectives and are able to support each other in achieving them.
It is considered essential that all clients and suppliers have direct access to the relevant director, and feedback is encouraged so that lessons can be learned and any necessary improvements implemented.
4. The impact of the Group’s operations on the community and environment
 
Our overriding objective is to have minimal impact on the local communities and environment on all of our construction projects.
The Group has a well- developed Environmental Policy with stringent targets, and as a carbon neutral Group is committed to protecting the environment. We acknowledge that the pursuit of economic growth and respect for the environment must be closely linked, with sustainable development being an integral part of our business philosophy and processes.
We work on the basis that compliance with environmental legislation, and other requirements, is the very minimum that will apply to our activities and services and we are committed to continual environmental performance improvement, the prevention of pollution and having a positive impact on the environment.
We work closely with our clients and suppliers, encouraging and educating our employees and supply chain to recognise their responsibilities regarding protecting the environment and achieving our environmental objectives and targets and communicating and consulting with all stakeholders as appropriate.
Our policy is periodically reviewed to ensure its continuing suitability, has been communicated to all RG staff and is made available to interested parties. It is endorsed by the Group’s Directors and Management Team who take responsibility for the delivery of its aspirations and key objectives, which include:
Risk Assessment: an Environmental Risk Assessment is carried out for every project and office to identify the issues and to set any specific objectives and targets, including for minimising waste and energy use, Biodiversity and Conservation, responsible sourcing and local community engagement.
We engage with the local community on all large contracts, and host local community events to engage with local stakeholders, including local supply chain partners.
5. The desirability of the Group maintaining a reputation for high standards of business conduct
The Group set high standards in the way we run our business and deal with all stakeholders, and our commitment to being the best have been key to or ongoing success and repeat business from many blue chips clients.
Key to this is the experience and ongoing professionalism and commitment of our employees and we continually strive to make our Group a place where all enjoy their work and have the opportunity to progress.
We have a Policy of promoting continual improvement and the setting of quality objectives and improvement programmes within the Group. These are decided on and prioritised by the analysis of gathered data from our intranet system RG Hub and our board and quality reports in line with the framework laid down within the ISO 9001:2015 Standard.
These objectives address the risks and opportunities within the Group, as determined by Senior Management, and we believe that Quality is critical to the success of our business, and base our approach on the key quality
Page 4

 
SPRITESTORE LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

principles of customer focus, leadership, engagement of people, process approach, improvement and relationship management.
6. The need to act fairly as between members of the Group
Strategy and decisions by the Board are carefully considered in both the short and long term and the Directors are fully aware of the need to take into account all relevant factors to achieve a fair balance between members of the Group.
The overriding objective is to ensure that the Group maintains its reputation for quality and integrity so as to continue as a successful and sustainable business for the long-term benefit of the members.


This report was approved by the board on 2 October 2023 and signed on its behalf.





M. D. Mullarkey
Director

Page 5

 
SPRITESTORE LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Results and dividends

The profit for the year, after taxation, amounted to £2,287,042 (2021 - £590,863).

During the year dividends of £nil (2021: £1,255,286) were paid.

Directors

The directors who served during the year were:

J. H. Chadwick 
M. A. Steel 
J. C. Noble 
D. B. Dixon 
J. A. Kallend (resigned 10 June 2022)
M. D. Mullarkey 
T. J. Puttick 
S. W. Roe (resigned 7 March 2023)

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 for the Group's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Page 6

 
SPRITESTORE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Financial instruments

Credit risk
Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit
rating criteria approved by the Board.
All customers who wish to trade on credit terms are subject to formal credit control procedures which include the
timely chasing of outstanding debt.
Liquidity risk
The directors review the liquidity position on a regular basis and are confident that the business has sufficient
cash resources to meet its trading needs.
Price risk
The Company is subject to commodity price and other cost inflationary risks and manages these risks by
entering into, where possible, fix pricing arrangements with its supply chains and subcontractors.

Engagement with suppliers, customers and others

The information has been included in the group strategic report.

Greenhouse gas emissions, energy consumption and energy efficiency action

RG Group has appointed Carbon Footprint Ltd, a leading carbon and energy management company, to independently assess its Greenhouse Gas (GHG) emissions in accordance with the UK Government’s ‘Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting Guidance’. 
The GHG emissions have been assessed following the ISO 14064-1:2018 standard and has used the 2021 emission conversion factors published by Department for Environment, Food and Rural Affairs (Defra) and the Department for Business, Energy & Industrial Strategy (BEIS). The assessment follows the location-based approach for assessing Scope 2 emissions from electricity usage. The financial control approach has been used













 
Page 7

 
SPRITESTORE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


The table below summarises the GHG emissions for reporting year: 1st January 2022 to 31st December 2022.
As a business we have been assessing our carbon emissions since 2011.
img6a21.png

Page 8

 
SPRITESTORE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022


During the last year we also completed a detailed Energy Savings Opportunity Scheme (ESOS) energy audit of our energy use, and have a number of recommendations we are now in the process of implementing.
During the last year we realised a 12% reduction in carbon emissions on the previous year. We have also offset 1,366 tonnes of CO2 through investing in a number of Gold Standard VER and Verified Carbon Standard Projects and planted hundreds of trees in the UK, to help sequester more carbon dioxide from the atmosphere.
Our business has therefore maintained Net Zero Carbon.
img6bb7.png
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By achieving this RG Group has qualified to use the Carbon Footprint Standard branding. This can be used on all marketing materials, including website and customer tender documents, to demonstrate your carbon management achievements.

Matters covered in the Group Strategic Report

The following information has been included in the group strategic report:
- A business review
- Principal risks and uncertainties
- Financial and other key performance indicators
- The principal activity of the Company and Group

Future developments

Our strategy of diversification in commercial, retail and living space projects continues, and the directors are seeking to consolidate on the new business acquired.

Taxation status

The company was a close company within the provisions of the Income and Corporation Taxes Act 1988 and
this position has not changed since the end of the year.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company and the Group's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Group since the year end.

Page 9

 
SPRITESTORE LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2022

Auditors

The auditorsSimmons Gainsford LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 2 October 2023 and signed on its behalf.
 





M. D. Mullarkey
Director

Page 10

 
SPRITESTORE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPRITESTORE LIMITED
 

Opinion


We have audited the financial statements of Spritestore Limited (the 'parent company') and its subsidiaries (the 'Group') for the year ended 31 December 2022, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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's 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 United Kingdom, including the Financial Reporting Council'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 or 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.


Page 11

 
SPRITESTORE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPRITESTORE LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of 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 Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 6, 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 is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the 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.


Page 12

 
SPRITESTORE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPRITESTORE LIMITED (CONTINUED)


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 an Auditors' Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.


Extent to which the audit was considered capable of detecting irregularities, including fraud
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.

Based on our understanding of the Group and industry, we identified and assessed the risks of material misstatements, including fraud and non-compliance with laws and regulations that could be expected to have a material impact on the financial statements. We also enquired of management and those charged with governance about their own identification and assessment of the risks of irregularities. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur. 
We obtained an understanding of the legal and regulatory frameworks that the Group and the parent company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. These included but were not limited to, UK Companies Act, UK financial reporting standards and taxation legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s and parent company's ability to operate or to avoid a material penalty. These included but were not limited to, legislations relating to health and safety.
As a result of performing the above, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue and profit recognition. We also evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls).
Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud. 
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
 

Page 13

 
SPRITESTORE LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SPRITESTORE LIMITED (CONTINUED)



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 Auditors' Report.


Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an Auditors' Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Abdultaiyab Pisavadi BSc FCA (Senior Statutory Auditor)
  
for and on behalf of
Simmons Gainsford LLP
 
Chartered Accountants
Statutory Auditors
  
14th Floor
33 Cavendish Square
London
W1G 0PW

2 October 2023
Page 14

 
SPRITESTORE LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
Note
£
£

  

Turnover
 4 
223,412,275
156,668,615

Cost of sales
  
(219,664,609)
(152,613,879)

Gross profit
  
3,747,666
4,054,736

Administrative expenses
  
(3,500,482)
(3,207,590)

Other operating income
 5 
-
15,032

Operating profit
 6 
247,184
862,178

Interest receivable and similar income
 10 
1,028,686
-

Profit before taxation
  
1,275,870
862,178

Tax on profit
 11 
1,011,172
(271,315)

Profit for the financial year
  
2,287,042
590,863

  

Gain on revaluation of freehold property
  
867,356
-

Deferred taxation arising from revaluation of freehold property
  
(216,840)
-

Total comprehensive income for the year
  
2,937,558
590,863

Profit for the year attributable to:
  

Owners of the parent company
  
2,287,042
590,863

  
2,287,042
590,863

Total comprehensive income for the year attributable to:
  

Owners of the parent company
  
2,937,558
590,863

  
2,937,558
590,863

The notes on pages 22 to 38 form part of these financial statements.

Page 15

 
SPRITESTORE LIMITED
REGISTERED NUMBER: 03360940

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Tangible assets
 14 
1,327,939
673,075

Investment property
 16 
985,002
-

  
2,312,941
673,075

Current assets
  

Debtors: amounts falling due after more than one year
 17 
-
3,000,000

Debtors: amounts falling due within one year
 17 
55,626,921
32,671,478

Cash at bank and in hand
 18 
10,253,956
12,329,008

  
65,880,877
48,000,486

Creditors: amounts falling due within one year
 19 
(52,334,968)
(35,689,062)

Net current assets
  
 
 
13,545,909
 
 
12,311,424

Total assets less current liabilities
  
15,858,850
12,984,499

Provisions for liabilities
  

Deferred taxation
 20 
-
(63,207)

  
 
 
-
 
 
(63,207)

Net assets
  
15,858,850
12,921,292


Capital and reserves
  

Called up share capital 
 21 
200
200

Revaluation reserve
 22 
650,516
-

Profit and loss account
 22 
15,208,134
12,921,092

Shareholders' funds
  
15,858,850
12,921,292


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 October 2023.




M. D. Mullarkey
Director

The notes on pages 22 to 38 form part of these financial statements.

Page 16

 
SPRITESTORE LIMITED
REGISTERED NUMBER: 03360940

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2022

2022
2021
Note
£
£

Fixed assets
  

Investments
 15 
250,000
250,000

  
250,000
250,000

Current assets
  

Debtors: amounts falling due within one year
 17 
409
200

Cash at bank and in hand
 18 
82,516
139,544

  
82,925
139,744

Creditors: amounts falling due within one year
 19 
(81,128)
(137,947)

Net current assets
  
 
 
1,797
 
 
1,797

Total assets less current liabilities
  
251,797
251,797

  

Net assets
  
251,797
251,797


Capital and reserves
  

Called up share capital 
 21 
200
200

Profit and loss account carried forward
  
251,597
251,597

Shareholders' funds
  
251,797
251,797


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 2 October 2023.




M. D. Mullarkey
Director

The notes on pages 22 to 38 form part of these financial statements.

Page 17

 
SPRITESTORE LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Revaluation reserve
Profit and loss account
Equity attributable to owners of parent company
Total equity

£
£
£
£
£


At 1 January 2021
200
-
13,585,515
13,585,715
13,585,715



Profit for the year

-
-
590,863
590,863
590,863

Dividends: Equity capital
-
-
(1,255,286)
(1,255,286)
(1,255,286)



At 1 January 2022
200
-
12,921,092
12,921,292
12,921,292



Profit for the year

-
-
2,287,042
2,287,042
2,287,042

Surplus on revaluation of freehold property
-
867,356
-
867,356
867,356

Deferred tax
-
(216,840)
-
(216,840)
(216,840)


At 31 December 2022
200
650,516
15,208,134
15,858,850
15,858,850


The notes on pages 22 to 38 form part of these financial statements.

Page 18

 
SPRITESTORE LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2021
200
251,597
251,797



Profit for the year

-
1,255,286
1,255,286

Dividends: Equity capital
-
(1,255,286)
(1,255,286)



At 1 January 2022
200
251,597
251,797


At 31 December 2022
200
251,597
251,797


The notes on pages 22 to 38 form part of these financial statements.

Page 19

 
SPRITESTORE LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2022

2022
2021
£
£

Cash flows from operating activities

Profit for the financial year
2,287,042
590,863

Adjustments for:

Depreciation of tangible assets
164,363
148,907

Interest received
(1,028,686)
-

Taxation charge
(1,011,174)
271,315

Increase in debtors
(18,776,949)
(1,859,753)

Increase in creditors
16,645,906
5,464,938

Corporation tax paid
(447,369)
(691,614)

Net cash generated from operating activities

(2,166,867)
3,924,656


Cash flows from investing activities

Purchase of tangible fixed assets
(936,871)
(591,714)

Interest received
1,028,686
-

Net cash from investing activities

91,815
(591,714)

Cash flows from financing activities

Repayment of loans
-
(200,000)

Dividends paid
-
(1,255,286)

Net cash used in financing activities
-
(1,455,286)

Net (decrease)/increase in cash and cash equivalents
(2,075,052)
1,877,656

Cash and cash equivalents at beginning of year
12,329,008
10,451,352

Cash and cash equivalents at the end of year
10,253,956
12,329,008


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
10,253,956
12,329,008

10,253,956
12,329,008


The notes on pages 22 to 38 form part of these financial statements.

Page 20

 
SPRITESTORE LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2022




At 1 January 2022
Cash flows
At 31 December 2022
£

£

£

Cash at bank and in hand

12,329,008

(2,075,052)

10,253,956

Debt due within 1 year

-

-

-


12,329,008
(2,075,052)
10,253,956

The notes on pages 22 to 38 form part of these financial statements.

Page 21

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

1.


General information

The Company is a private company limited by shares and is incorporated in England and Wales. The address of its registered office is 4 Abbey Wood Road, Kings Hill, West Malling, Kent, ME19 4AB.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the Group. Monetary amounts in these financial statements are rounded to the nearest £.

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).

             Parent company disclosure exemptions

In preparing the separate financial statements of the parent company, advantage has been taken of
the following disclosure exemptions available to qualifying entities:

 
No cash flow statement or net debt reconciliation has been presented for the parent company.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

  
2.3

Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the Company and the Group have adequate resources to continue in operational existence for the foreseeable future. Therefore, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Page 22

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.4

Turnover

Turnover is recognised at the fair value of construction contracts completed during the year. Consideration received or receivable for the services provided is shown net of VAT and other sales related taxes. Revenue from construction and service activities represents the value of work carried out during the year, including amounts not invoiced.

 
2.5

Tangible fixed assets

Tangible fixed assets under the cost model 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 charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
Nil
Motor vehicles
-
4 years
Fixtures and fittings
-
4 years
Computer equipment
-
4 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.6

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.7

Debtors

Debtors are initially measured at the transaction price and are measured subsequently carried at amortised cost using the effective interest method, less any impairment. Debtors classified as due within one year are not amortised.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

Page 23

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.9

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance Sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the
Page 24

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)


2.9
Financial instruments (continued)

risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.

 
2.10

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

  
2.11

Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets. 
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

  
2.12

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value where there is reasonable assurance that the grant will be received. Amounts received are recognised over the period in which the related costs are recognised.

 
2.13

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

Page 25

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

 
2.14

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

 
2.16

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.17

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Page 26

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

2.Accounting policies (continued)

  
2.18

Construction contracts

When the outcome of a contract can be measured reliably, the entity will recognise both turnover and
costs by reference to the percentage of completion of the contract. The turnover recognised is based
on certified client valuations, however, in the event of the valuation being mid-month, there is a prorata estimation of the percentage completion using a linear approach based on number of days between the previous and next valuation. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably, and its receipt is considered probable.
If the outcome cannot be reliably measured, all costs are expensed and revenue is only recognised to the extent that it is probable that costs are recoverable.
When it is probable that a loss will occur on a contract, this is recognised in full immediately as an onerous contract provision.

 
2.19

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.20

Investment property

Investment property is carried at fair value determined annually by directors and derived from the
current market rents and investment property yields for comparable real estate, adjusted if necessary
for any difference in the nature, location or condition of the specific asset. No depreciation is
provided. Changes in fair value are recognised in profit or loss.

Page 27

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In application of the group’s accounting policies, which are described in note 2, the directors are required to make judgements that have a significant impact on the amounts recognised and to make estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. 
The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. The nature of estimation and judgement means that actual result may differ and may result in a material adjustment to carrying amount of the asset or liability affected in future periods.
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next year financial year are addressed below.
Revenue and profit recognition
The revenue recognition and profit recognition policies, which are set out in note 2.4 and 2.18 respectively, are central to how group values the work it has carried out in each year.
These policies require forecasts to be made of the outcomes of long term construction services and support services contracts, which require assessments and judgements to be made on recovery of pre-contract costs, changes in the scope of work, contract programmes, maintenance and defects liabilities and changes in costs.
Estimation uncertainty will exist with regard to the gross profit being recognised at the year end. The
progress of all current projects is tracked by the Company using a bespoke system which allows for up to
date reporting on the status of each project.
Valuation of freehold property
Freehold properties are valued annually by directors who are considered to have adequate knowledge and expertise in this area, using a yield methodology. This uses market rental values capitalised at a market capitalisation rate but there is an inevitable degree of judgement involved in that each property is unique and value can only ultimately be reliably tested in the market itself.
Deferred tax
The carrying amounts of deferred tax assets or liabilities are reviewed at each balance sheet date and a judgement made over the probability of there being sufficient taxable profits arising in the future to allow all or part of the asset to be recovered.
Provisions
Provisions are made for known legal claims, investigations and legal actions relating to the Group which are considered more likely than not to result in an outflow of economic benefit. The assessment of the cost is based on best estimates made by experienced senior management, on an individual contract basis and with reference to relevant contract provisions and insurance excess premiums. If directors considers that a claim, investigation or action relating to the Group is unlikely to succeed, no provision is made.  If the Directors cannot make a reliable estimate of a potential, material obligation, no provision is made but details of claim are disclosed as contingent liabilities. At 31 December 2022, the Group had no contingent liabilities in relation to claims (2021: £nil).
 

Page 28

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

4.


Turnover

2022
2021
£
£

Building and contracting services
223,412,275
156,668,615


All turnover arose within the United Kingdom.


5.


Other operating income

2022
2021
£
£

Government grants receivable
-
15,032



6.


Operating profit

The operating profit is stated after charging:

2022
2021
£
£

Depreciation of tangible fixed assets
164,363
148,907

Other operating lease rentals
247,225
258,220


7.


Auditors' remuneration

2022
2021
£
£

Fees payable to the Group's auditor and its associates for audit
services:

Audit of the financial statements of the group and company
5,000
5,000

Audit of the financial statements of the companies subsidiaries
38,750
38,750

Fees payable to the Group's auditor and its associates for other
services:

Taxation compliance services
28,400
27,029

All other services
7,546
10,281

Page 29

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£


Wages and salaries
9,794,894
9,452,011
-
-

Social security costs
1,345,676
1,197,638
-
-

Cost of defined contribution scheme
621,358
538,256
-
-

11,761,928
11,187,905
-
-


The average monthly number of employees, including the directors, during the year was as follows:


       Group
2022
      Group
2021
            No.
            No.







Technical staff
123
119



Administrative staff
10
8

133
127

The company has no employees other than the directors, who did not receive any remuneration (2021 - £NIL)

9.


Directors' remuneration







During the year retirement benefits were accruing to 7 directors (2021 - 7) in respect of defined contribution pension schemes.
The highest paid director received remuneration of £314,954 (2021 - £241,286).
The value of the group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £30,388 (2021 - £24,375).


10.


Interest receivable

2022
2021
£
£


Other interest receivable
1,028,686
-

Page 30

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

11.


Taxation


2022
2021
£
£

Corporation tax


Current tax on profits for the year
-
219,130

Adjustments in respect of previous periods
(470,201)
-


Total current tax
(470,201)
219,130

Deferred tax


Origination and reversal of timing differences
(540,971)
52,185

Total deferred tax
(540,971)
52,185


Taxation on (loss)/profit on ordinary activities
(1,011,172)
271,315

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2021 - higher than) the standard rate of corporation tax in the UK of 19% (2021 - 19%). The differences are explained below:

2022
2021
£
£


Profit on ordinary activities before tax
1,275,870
862,178


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2021 - 19%)
242,415
163,814

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
5,788
95,346

Capital allowances for year in excess of depreciation
(41,039)
(68,322)

Depreciation add back
31,229
28,292

Adjustments to tax charge in respect of prior periods
(470,201)
-

Other timing differences leading to an increase (decrease) in taxation
(540,971)
52,185

Adjustment in research and development tax credit leading to an increase (decrease) in the tax charge
(476,221)
-

Unrelieved tax losses carried forward
237,828
-

Total tax charge for the year
(1,011,172)
271,315

Page 31

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
 
11.Taxation (continued)


Factors that may affect future tax charges

The Finance Act 2021, which received Royal Assent in June 2021, will result in the applicable rate being held at 19% until April 2023, increasing to 25% from 1 April 2023 for companies with profits over £250,000. As at 31 December 2022, all deferred tax assets and liabilities are recognised at a rate of 25%.


12.


Dividends

2022
2021
£
£


Dividends paid on equity capital
-
1,255,286


13.


Parent company profit for the year

The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent company for the year was £nil (2021 - £1,255,286).

Page 32

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

14.


Tangible fixed assets

Group






Freehold property
Motor vehicles
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2022
398,310
-
318,736
1,315,502
2,032,548


Additions
704,336
112,434
23,398
96,703
936,871


Transfers between classes
(985,000)
-
-
-
(985,000)


Revaluations
867,356
-
-
-
867,356



At 31 December 2022

985,002
112,434
342,134
1,412,205
2,851,775



Depreciation


At 1 January 2022
-
-
276,040
1,083,433
1,359,473


Charge for the year on owned assets
-
16,251
14,023
134,089
164,363



At 31 December 2022

-
16,251
290,063
1,217,522
1,523,836



Net book value



At 31 December 2022
985,002
96,183
52,071
194,683
1,327,939



At 31 December 2021
398,310
-
42,696
232,069
673,075

The freehold property was being constructed in the period and this was completed in 2022.

The property was valued in April 2022 by an independent valuer using current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Directors do not consider valuation to be materially different to the value at the year end date.

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2022
2021
£
£

Group


Cost
551,323
-

Net book value
551,323
-

Page 33

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2022
250,000



At 31 December 2022
250,000





Direct subsidiary undertaking


The following was a direct subsidiary undertaking of the company:

Name

Registered office

Principal activity

Class of shares

Holding

RGCM (Holdings) Limited
4 Abbey Wood Road, Kings Hill, West Malling, Kent, ME19 4AB
Holding company
Ordinary
100%


Indirect subsidiary undertaking


The following was an indirect subsidiary undertaking of the company:

Name

Registered office

Principal activity

Class of shares

Holding

RGCM Limited
4 Abbey Wood Road, Kings Hill, West Malling, Kent, ME19 4AB
Construction management
Ordinary
100%

Page 34

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

16.


Investment property

Group


Freehold investment property

£



Valuation


Transfers between classes
985,002



At 31 December 2022
985,002



At 31 December 2022



If the Investment properties had been accounted for under the historic cost accounting rules, the properties would have been measured as follows:

2022
2021
£
£


Historic cost
551,323
-

551,323
-

The property was valued in April 2022 by an independent valuer using current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Directors do not consider valuation to be materially different to the value at the year end date.


Page 35

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

17.


Debtors

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Due after more than one year

Other debtors
-
3,000,000
-
-




Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Due within one year

Trade debtors
37,616,849
18,792,293
-
-

Other debtors
4,028,686
-
209
-

Called up share capital not paid
200
200
200
200

Prepayments and accrued income
942,031
1,049,304
-
-

Amounts recoverable on long term contracts
11,299,884
12,268,904
-
-

Tax recoverable
1,478,347
560,777
-
-

Deferred taxation
260,924
-
-
-

55,626,921
32,671,478
409
200



18.


Cash and cash equivalents

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Cash at bank and in hand
10,253,956
12,329,008
82,516
139,544



19.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2022
2021
2022
2021
£
£
£
£

Trade creditors
26,725,187
20,839,025
-
-

Amounts owed to group undertakings
-
-
81,128
81,128

Other taxation and social security
2,122,334
3,007,722
-
-

Other creditors
98,077
149,691
-
56,819

Accruals and deferred income
23,389,370
11,692,624
-
-

52,334,968
35,689,062
81,128
137,947


Page 36

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

20.


Deferred taxation


Group



2022


£






At beginning of year
(63,207)


Charged to profit or loss
540,971


Charged to other comprehensive income
(216,840)



At end of year
260,924

Group
Group
2022
2021
£
£

Accelerated capital allowances
(37,587)
(63,207)

Short term timing differences
201,606
-

Revaluation of freehold property
(216,839)
-

Tax losses
313,744
-

260,924
(63,207)


21.


Share capital

2022
2021
£
£
Allotted, called up and fully paid



200 (2021 - 200) Ordinary shares of £1.00 each
200
200



22.


Reserves

Revaluation reserve

The revaluation reserve comprises the cumulative effect of revaluations of freehold land and buildings
which are revalued to fair value at each reporting date.

Profit and loss account

At the year end, the Group had consolidated reserves of £15,208,134 (2021: £12,921,092).  The Company had distributable reserves of £251,597 (2021: £251,597).

Page 37

 
SPRITESTORE LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022

23.


Pension commitments

The group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £621,358 (2021: £538,256).
Contributions totalling £74,422 (2021: £73,152) were payable to the fund at the reporting date and are included in creditors.


24.


Commitments under operating leases

At 31 December 2022 the Group had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2022
2021
£
£

Not later than 1 year
208,479
292,556

Later than 1 year and not later than 5 years
692,058
721,837

Later than 5 years
42,764
213,818

943,301
1,228,211

25.Other financial commitments

The group has no financial commitments (2021: £430,762) in relation to the development of the Doncaster office building. 


26.


Related party transactions

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.
The list of subsidiaries is set out in note 15. 
All directors of the Company are considered to be key management personnel.


27.


Controlling party

The Group has no ultimate controlling party.

 
Page 38