Company registration number 05523722 (England and Wales)
8BUILD LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
8BUILD LIMITED
COMPANY INFORMATION
Directors
N. J. W. Bellamy
L. H. Hammond
M. J. F. Mannion
P. R. Norman
S. J. Oakford
A. R. Tooley
C. Raison
Secretary
L. H. Hammond
Company number
05523722
Registered office
64 Leman Street
London
E1 8EU
Auditor
Citroen Wells
Chartered Accountants
Devonshire House
1 Devonshire Street
London
W1W 5DR
Bankers
Barclays Bank Plc
167 High Street
Bromley
BR1 1NL
Solicitors
DAC Beachcroft LLP
25 Walbrook
London
EC4N 8AF
Ince Gordon Dadds LLP
Aldgate Tower
2 Leman Street
London
E1 8QN
8BUILD LIMITED
CONTENTS
Page
Strategic report
1 - 6
Directors' report
7
Directors' responsibilities statement
8
Independent auditor's report
9 - 11
Statement of comprehensive income
12
Statement of financial position
13
Statement of changes in equity
14
Notes to the financial statements
15 - 28
8BUILD LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their strategic report for the year ended 31 March 2023.

Principal activity and review of the business
- 1 -
The principal activity of the company in the year under review remains that of property fit out, new build and refurbishment.
8build are strongly represented in the following sectors:
Life Sciences
Commercial Office Fit Out/Commercial Developer
Arts and Leisure
Historic Buildings
Aviation
Healthcare
Higher Education
The year 2022/2023 was one of extremes with the completion of some magnificent projects of very high quality, of which the teams are rightly very proud. However, the market challenges remain; Brexit and Covid legacies, wars and high inflation all of which lead to market uncertainty and confusion.
Financial review
The detailed results and the financial position of the company are as shown in the financial statements.
The turnover for the year was below the initial budget, however slightly higher than the previous year at £111m (2022: £110m). The fact that there was no significant increase in the year was largely due to project delays, and prolonged PCSA periods whilst market uncertainty appeared to cause understandable client caution. Despite this, the company realised a good profit position, which is a magnificent improvement over the last year and a great bounce back from the Covid years.

However, as with the previous trading year, the Directors have chosen to exercise a prudent approach to their reporting. There remains a financially unresolved legacy project which is the subject of an outstanding claim. Whilst the directors consider that 8build holds a very strong position in regard to the claim, due to the passage of time, they have decided to materially reduce the value of the provision contained within these accounts, resulting in a much-reduced trading profit for the year. However, we are still delighted to report an overall profit position for the year of £1.5m (2022: £0.2m). It reflects the hard work of all our staff and industry partners and the high quality of work they have achieved. It also gives a solid foundation to face the rigors ahead.
Our forward order book sits at £120m at the start of the next financial year and a high percentage of this work is due to be delivered during the next twelve months. For this reason, we have increased our turnover budget for the next financial year. We recognise that this will be a challenge. The market is very unsettled and with a vast number of current uncertainties it is very hard to determine any future outcomes.  Profit in particular will be very much under pressure.
Confidence grew in 2022/2023 as many of our projects were finalists in many prestigious industry awards including Mixology, BCO (regional and national) , AJ Retrofit and FX Awards. Three 8build projects made the final of the Mixology Awards and we are also finalists in the Construction News Awards for Contractor of the Year (T/O <£500m). The outcome of many of these awards are yet to be concluded but it is wonderful for so many of our projects to be recognised in this way.
The company continues its excellent working capital management with no bad debts and a year end position which holds its own, despite the market conditions. Cash balances are £13.2m (2022: £12.2m) and retained earnings have increased to £8.8m (2022: £7.2m). The company has benefitted from the rise in interest rates. With no long-term borrowing and a healthy cash reserve, the finance team have been able to capitalise by placing surplus funds on treasury reserve and this approach is working well as we move from one year to the next.
8BUILD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
We continue to benefit from the employment of design managers who have significantly enhanced our offering to clients who seem to appreciate this more holistic approach. We pride ourselves upon our stakeholder relationships which are at the core of our business practices.

We have also seen a significant engagement within the Cambridge community which has assisted in our winning a number of projects in Cambridge to be delivered over the next 12 - 18 months.
Notable project successes during the year include the following, many of which are still ongoing:
Revenue
Project Fox - new build
£20m
Global Life Sciences
£2m
British Land Sheldon Square
£33m
Fitzroy Street
£35m
Perella Weinberg (repeat client)
£1.5m
Research Laboratory
£10m
Additional projects in aviation
£4m
GPE - Egyptian House
£20m
King's College
£5m
Shakespeare House
£3m
We are disappointed to report that our sales for the first quarter of 2023/2024 are down over the same period last year, but we do have a solid order book in hand and quite a number of PCSA's to convert. This will change the landscape. However, we are aware that sales must be our focus over the months ahead. We are confident that we can cope with the challenges ahead and the strength of our repeat business and collaborative nature will stand us in good stead.
Revenue of £109m is already secured for 2023/2024 and with a total forward order book of £120m, there are positive signs for a longer income horizon and increased security. However, the company aims to engage in projects of mixed project length which most effectively employs the different skill sets and divisions within the business.
The directors' strategy for this year is to manage these incredibly difficult market conditions whilst the economy recovers from the pandemic, material and staff shortages and substantial inflationary pressures. They will continue to focus on securing the long-term future of the business and strengthening the company balance sheet, building on the proven business platform they have created whilst acting morally, sustainably and supportively in dealings with all parties.
Dividends
No dividend was paid or declared for this financial year.
Directors
The directors set out in the table below have held office from 1 April 2022 to the date of this report.
N. J. W. Bellamy
M. J. F. Mannion
S. J. Oakford
A. R. Tooley
P. R. Norman
L. H. Hammond
C. Raison
- 2 -
8BUILD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
Policy on payment of creditors
The company's ethos and policy continues to be to agree fair payment terms with all suppliers. It is the company's policy to then pay suppliers according to the agreed terms and conditions. In an effort to confirm our commitment to sub-contractors and suppliers, the company has signed up to the Government's Prompt Payment Code which is managed by the Institute of Credit Management. We believe that our track record for prompt payment is good, and we endeavour to treat our supply chain fairly and with respect.
Creditors include retention amounts held until the expiration of the defect liability period on a project.
Charitable donations
During the year the company made the following charitable donations:
31 March 2023
31 March 2022
£
£
Donations to medical charities
1,228
1,926
Donations to children's charities
497
589
Donations to charities helping the homeless
9,081
6,646
Donations to arts charities
-
275
10,806
9,436
Principal risks and uncertainties
The management of the business and the execution of its strategy are subject to a number of risks. The key risks and uncertainties affecting the company remain much the same as last year and are considered to relate to:
Uncertainty of the current economic climate in these challenging times and the effect of rising inflation and interest rates.
Competition in the marketplace, including the current economic outlook and strength of the market for the services offered.
The effect of market forces on the supply chain and impact on labour and material supplies, including ongoing Brexit challenges and implications for a prolonged war in Ukraine.
Retention and recruitment of high-quality staff.
Client and sub-contractor financial stability, especially against the economic backdrop.
Client appetite for material contracts whilst the economic uncertainties prevail.
Health and safety of staff and suppliers as detailed below in the health and safety section of this report.
Health and safety
The directors consider health and safety to be a key priority, taking all reasonable measures to conduct business in a way that ensures the health, safety and welfare of all employees and other individuals who are affected by the company's activities. Training is paramount and all staff, no matter which department they work in, receive full health and safety training.
The company's Accident Incident Rate (AFR) is comparable to the best in the construction industry. For the year to 31 March 2023 8build had one reportable accident during 1.625 million man-hours worked, this yields an AFR of 0.06. This is the desirable position and one which we will strive tirelessly to improve upon. One reportable accident is one too many.

During the year 8build invested in a stronger digital presence with the introduction of various apps. The most critical of these was the project health & safety app. It allows real time reporting and recording of all incidents and near misses. In a recent BSI audit, it was heralded as the best reporting tool that the auditor had seen, which was immensely gratifying.
- 3 -
8BUILD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
This app also includes project reviews, which streamline the entire project reporting procedure, and a supply chain app. This is a collaborative platform which monitors the performance of the supply chain.

We continue with our concern and support of mental health and wellbeing initiatives. We have encouraged more mental health and wellbeing training during the year and have partnered with the Lighthouse Charity mentioned below to strengthen our commitment by support of their valuable work.
Environmental and sustainability policies
8build is committed to minimising the impact the company has upon the environment and constantly seeks to improve its impact and act in a sustainable fashion. In this financial year 8build continued to recycle 98% of its total waste; this amounted to 1.85 million kilograms.
We are committed to actions that preserve and restore the environment, including waste and emissions, saving energy, recycling materials and conserving resources. We aim to protect the natural environment and minimise the release of harmful greenhouse gasses through good management and adopting best practice wherever possible.

We aspire to make sustainability ‘business as usual' at 8build and during the year have helped to develop project initiatives such as rainwater harvesting and blue and green roofs.  

We aim to reuse and repurpose as much as we possibly can. Our site signage is now fully recyclable, and we are partnering with a company to provide recyclable PPE.

8build has moved to 100% renewable energy over all locations over which it has control, primarily its Head Office in Leman Street.
8build continues to operate fully in line with the company Environmental Management System under ISO 14001:2015. Upon further investigation into Energy and Carbon reporting, the Board have decided to enhance their policy to encompass energy. 8build has developed a new Environmental and Energy Policy which supports our new Carbon Reduction Policy.
To achieve this, the company has:
Complied with, and where possible exceeded, all statutory and legal requirements;
Aimed to eliminate unnecessary waste in our systems and processes, such as minimising our use of natural resources and managing activities to minimise the risk of pollution and contamination;
Provided leadership and promoted and supported industry best practice;
Ensured the involvement and training of our people to increase their awareness of environmental impact;
Promoted a sustainable approach to business, in partnership with our clients and other stakeholders, by conserving energy, minimising consumption, preferring low pollution materials, maximising efficiencies, and implementing the Waste Management Hierarchy;
Used our Environmental and Energy Management Systems to ensure we integrate sustainability considerations into our business decisions and set clear targets and objectives within our business planning, committing to continual improvement to enhance our environmental and energy performance.
Complied with all of our customer requirements;
Ensured our key supply chain demonstrate compliance and use sustainably resourced products where possible.
8build's full environmental policy can be found on the website at www.8build.co.uk.
Employment policy
The company supports equal opportunities in employment and opposes all forms of unlawful or unfair discrimination on any grounds. The directors' policy is to treat all employees, job applicants, clients and suppliers equally and as they would wish to be treated. During the year, the company has reinvigorated training on equality, diversity and inclusion across the business at all levels.
- 4 -
8BUILD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
It is the company's approach to comply with all laws and regulations relevant to our business in all areas in which we operate. 8build is committed to maintaining and enforcing effective systems and controls to ensure modern slavery is not taking place anywhere within our own business or in any of our supply chains.
The success of the company depends on people. By capitalising on what is unique about individuals and drawing on their different perspectives and experiences, the directors believe that value will be added to the way the company does business.
2022 saw the introduction of a new recruitment strategy which focused not just on the recruitment process but developed on-going support for the new recruit through on-boarding and beyond. It has proved most successful. During the year we also saw 20% of the staff receive long-service awards, and had 26 promotions. Almost 60% of new starters came from personal recommendations; something the Board considers to be a great success.
Using fair, objective and innovative employment practices, the directors' aims are to ensure that:
all employees and potential employees are treated fairly and with respect at all stages of their employment;
all employees have the right to be free from harassment and bullying of any description, or any other form of unwanted behaviour, whether based on sex, transgender status, marital status, race, disability, age, political or religious belief or sexuality; and
all employees have an equal chance to contribute and to achieve their potential, irrespective of any defining feature that may give rise to unfair discrimination.
Overcoming the continuous ongoing challenges would not be possible without the commitment, enthusiasm and loyalty of all staff; and the directors give heartfelt thanks to all the company's employees for supporting us continuously and giving of their best to colleagues, clients and all stakeholders alike.
The 8build Apprenticeship and Graduate scheme continues to flourish. The program continues to develop each year and now includes Design Management, Marketing and Equality modules. We have a cohort of seventeen men and women from differing disciplines. They are all magnificent and we celebrate their diversity and contribution to the business in all areas, expanding our offering into Health & Safety, Finance and HR as well as on site staff. We are rightly very proud of this scheme which has produced many fine staff members over the years.
Research & Development
The company completes a number of unique and original projects each year. These challenging projects require different approaches to techniques and products to comply with client and professional team parameters, whilst being sympathetic to the environment and resulting in useful and desirable structures.
So many uncertainties have to be overcome in such projects that it necessitates the company and its sub-contractors being involved in research and development activities, to resolve those uncertainties by seeking advances in the fields of science and technology.
Section 172 (1) statement Companies Act 2006
During the year to 31 March 2023 the directors have promoted the long-term success of the company for the benefit of all stakeholders as required by Section 172 of the Companies Act 2006.
The company is 100% owned by 8build Group Limited which, in turn, is owned by individuals who are employed within 8build. The Boards of 8build Limited and 8build Group Limited are all shareholders within the business so have a vested interest in tirelessly promoting the success of the company and the group. They are constantly seeking ways to improve stakeholder engagement. During the ongoing challenges, communication, strong decision making and leadership has been as important as ever.
- 5 -
8BUILD LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
The directors consider the core stakeholders to be as follows:
Employees
The support of staff are the lifeblood of our business; the need to ensure their physical and mental wellbeing is always a top priority. We have completely reassessed our benefit structure to ensure we provide the best support that we can to the staff and now have a very wide range of wellbeing support structures in place, including later life care which is a new addition to our suite of benefits. We continue to take care of our staff no matter what help they need and do our best to support them in times of stress and difficulty.
Clients
We aim to develop long term relationships with our clients and partners. We believe that we offer enhanced value-added service, the results of which are evidenced by the frequent repeat business we enjoy.
Supply chain
Our sub-contractors and suppliers are critical to our operations at every level. As well as supporting the prompt payment code we have enhanced our internal sub-contractor department to improve lines of communication and support. As well as seeking new and diverse sub-contractors, it allows more time to get to know the individuals involved and promote understanding and trust between all parties.  As with our clients, we aim for a long-term relationship and the strength of a collaborative approach.
Communities
We engage with all our communities at site level; each site having a dedicated Community Liaison Officer. All sites have newsletters and public noticeboards, and we encourage engagement with local community groups where appropriate. We have worked very hard to maintain engagement with local communities.  

We are members of a variety of industry groups, and we hope to improve the image of the construction industry in the eyes of the general public by improving community engagement and providing a service to local people within those communities. We continued to support Michael Sobell Hospice and CRASH Charities. Both are first class examples of community support, and we are very proud to be associated with these enterprises.

A number of the site teams help with initiatives in their local areas and raise money for local causes. We have seen and felt the benefits first-hand of what such engagement can deliver both personally and professionally.
Principal decisions
Principal decisions are those that are material to the company, and of benefit to the categories of stakeholders mentioned above. It is vital to the board that we act fairly in all our decision making and maintain a reputation for high standards of business conduct.  

The directors reviewed and approved the annual strategic plan and financial budget for the year whilst considering the company's appetite for risk. We aim to select the right contracts for the business and wider community that match the skills we can provide whilst aligning with our plans and priorities. We are prepared to decline opportunities that do not suit our core competencies.
By order of the board
L. H. Hammond
Director
13 October 2023
- 6 -
8BUILD LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

N. J. W. Bellamy
L. H. Hammond
M. J. F. Mannion
P. R. Norman
S. J. Oakford
A. R. Tooley
C. Raison
Auditor

The auditor, Citroen Wells, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors have chosen, in accordance with the Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments and risk management.

On behalf of the board
L. H. Hammond
Director
13 October 2023
- 7 -
8BUILD LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

- 8 -
8BUILD LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF 8BUILD LIMITED
Opinion
- 9 -

We have audited the financial statements of 8build Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including 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:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

8BUILD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF 8BUILD LIMITED
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

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

Responsibilities of directors
- 10 -

As explained more fully in the directors' responsibilities statement, 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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 irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.

 

For construction companies, there are judgements in assessing the contract revenues, stage of completion, final expected margins and assessment of loss making contracts. In addition, assessments must be made regarding the recovery of retentions and other contractual amounts. We therefore consider this to be a high risk area for fraud, due to the potential for management bias.

 

To respond to the above potential risk of fraud, our audit procedures included:

8BUILD LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF 8BUILD LIMITED

In addition to the above, our procedures to respond to the further risks identified included the following:

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Kim Youle FCA (Senior Statutory Auditor)
For and on behalf of Citroen Wells
13 October 2023
Chartered Accountants
Statutory Auditor
Devonshire House
1 Devonshire Street
London
W1W 5DR
- 11 -
8BUILD LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
2023
2022
Notes
£000
£'000
Revenue
3
110,831
109,656
Cost of sales
(106,015)
(105,970)
Gross profit
4,816
3,686
Administrative expenses
(4,732)
(4,318)
Other operating income
64
153
Operating profit/(loss)
4
148
(479)
Investment income
8
701
-
0
Finance costs
9
(52)
(33)
Profit/(loss) before taxation
797
(512)
Tax on profit/(loss)
10
728
725
Profit for the financial year
1,525
213
Other comprehensive income
Revaluation of property, plant and equipment
-
0
125
Tax relating to other comprehensive income
-
0
(145)
Total comprehensive income for the year
1,525
193

The income statement has been prepared on the basis that all operations are continuing operations.

- 12 -
8BUILD LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
2023
2022
Notes
£000
£000
£'000
£'000
Non-current assets
Intangible assets
11
346
432
Property, plant and equipment
12
3,856
3,812
4,202
4,244
Current assets
Trade and other receivables falling due after more than one year
14
1,107
4,481
Trade and other receivables falling due within one year
14
24,087
29,314
Cash and cash equivalents
13,170
12,194
38,364
45,989
Current liabilities
15
(30,884)
(36,746)
Net current assets
7,480
9,243
Total assets less current liabilities
11,682
13,487
Non-current liabilities
16
(583)
(3,913)
Provisions for liabilities
Deferred tax liability
18
(604)
(604)
Net assets
10,495
8,970
Equity
Called up share capital
20
1
1
Share premium account
7
7
Revaluation reserve
1,713
1,713
Retained earnings
8,774
7,249
Total equity
10,495
8,970
The financial statements were approved by the board of directors and authorised for issue on 13 October 2023 and are signed on its behalf by:
L. H. Hammond
Director
Company Registration No. 05523722
- 13 -
8BUILD LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
Share capital
Share premium account
Revaluation reserve
Retained earnings
Total
£000
£000
£000
£000
£000
Balance at 1 April 2021
1
7
1,733
7,036
8,777
Year ended 31 March 2022:
Profit for the year
-
-
-
213
213
Other comprehensive income:
Revaluation of property, plant and equipment
-
-
125
-
125
Tax relating to other comprehensive income
-
-
(145)
-
0
(145)
Total comprehensive income for the year
-
0
-
0
(20)
213
193
Balance at 31 March 2022
1
7
1,713
7,249
8,970
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
1,525
1,525
Balance at 31 March 2023
1
7
1,713
8,774
10,495
- 14 -
8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
Company information

8build Limited undertakes property fit out, new build and refurbishment.

 

The company is a private company limited by shares and is incorporated and domiciled in England. The address of the registered office is 64 Leman Street, London, E1 8EU.

1.1
Accounting convention

These financial statements have been prepared in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £'000.

The financial statements have been prepared on the historical cost convention, modified to include the revaluation of freehold property at fair value. The principal accounting policies adopted are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of 8build Group Limited. These consolidated financial statements are available from its registered office, 64 Leman Street, London, E1 8EU.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Revenue
- 15 -

Revenue represents amounts receivable for goods and services net of VAT and trade discounts.

 

Construction contracts

Revenue from construction contracts includes amounts initially agreed in the contract plus any variations in contract work to the extent that it is probable that the variation will result in revenue that can be reliably measured.

 

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract at the reporting date. Normally the reference to the amount of work performed is carried out by a third party surveyor and a valuation certificate is received. Internal valuations are also used for smaller assignments. 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.

8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -

When it is probable that total contract costs will exceed total contract revenue, the expected loss is immediately recognised as an expense in the income statement, once such losses are foreseen.

 

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

 

The “percentage of completion method” is used to determine the appropriate amount of profit to recognise in a given period. The stage of completion is measured by the proportion of contract revenue completed to date, which is certified by a third party surveyor, as a percentage of the estimated total revenue for the project.

 

As is standard industry practice, included within revenue are retentions that cannot be invoiced until project completion. The retained amounts are based upon a pre-agreed percentage. The unbillable amounts are recognised as the work is performed and included in debtors. Where completion is not expected within 12 months of the balance sheet date, these amounts are recorded within debtors falling due after one year.

1.4
Intangible fixed assets other than goodwill

Software development costs are capitalised at cost as they are incurred and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Software development costs are reviewed annually for impairment. Maintenance costs associated with the software development are charged to the profit and loss account in the period they are incurred.

Intangible assets are amortised from the date that the asset is in use. Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Software
3 years
1.5
Property, plant and equipment

Tangible fixed assets, other than freehold land and buildings, are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes the original purchase price and amounts directly attributable in bringing the asset to its working condition for its intended use.

 

Freehold land and buildings whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity.

Tangible fixed assets are written off over their estimated useful lives on a straight line basis. Expected useful lives are as follows:-

Freehold land and buildings
Not depreciated
Fixtures, fittings & equipment
3-10 years
Motor vehicles
3-5 years

The directors have chosen not to depreciate the freehold land and buildings held by the company. This is in contravention of the Companies Act 2006 which requires depreciation to be charged. The directors are of the opinion that the residual value of the property at the end of its useful life is expected to be in excess of the carrying value. As a result any depreciation to be provided is not material over the life of the asset and therefore has not been accounted for.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset and is recognised in the profit and loss account in the year of disposal.

8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
1.6
Impairment of non-current assets

At each reporting end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts.

1.8
Financial instruments

The company 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 company's statement of financial position when the company 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, including trade and other debtors and cash and bank balances, are initially recognised at transaction price, 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. Insurance claims are recognised when the economic benefit arising from the claims is virtually certain.

 

Such assets are subsequently carried at amortised cost using the effective interest method.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in the profit or loss.

Derecognition of financial assets
- 17 -

Financial assets are derecognised when:

8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
Basic financial liabilities

Basic financial liabilities, including trade and other payables and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

 

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

Derecognition of financial liabilities
- 18 -

Financial liabilities are derecognised when the liability is extinguished; that is when the contractual obligation is discharged, cancelled or has expired.

 

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.

1.9
Equity instruments

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new ordinary shares or options are shown in equity as a deduction, net of tax, from the proceeds.

1.10
Taxation

Taxation expense for the year comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In these cases tax is also recognised in other comprehensive income or directly in equity respectively.

 

Current or deferred taxation assets and liabilities are not discounted.

Current tax

Current tax is the amount of corporation tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the year end. When R&D tax credits are claimed, they reduce the tax liability in the year they are approved by HMRC. The credits are calculated by a third party specialist.

 

Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions, where appropriate, on the basis of amounts expected to be paid to the tax authorities.

8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
Deferred tax

Deferred tax arises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in the tax assessments during periods different from those in which they are recognised in the financial statements.

 

Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

 

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

 

Deferred tax is recognised in full on all revaluation gains.

1.11
Employee benefits

The company provides a range of benefits to employees, including annual bonus arrangements, paid holiday arrangements and defined contribution pension plans. The group’s expenses for the annual bonus plans for employees are recognised in the income statement when the group has a legal or constructive obligation to make payments under the plans as a result of past events and a reliable estimate of the obligation can be made.

 

Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period during which the service is received.

1.12
Retirement benefits

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid, the company has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals on the balance sheet. The assets of the plan are held separately from those of the company in an independently administered fund.

1.13
Government grants
- 19 -

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

Coronavirus Job Retention Scheme

The Coronavirus Job Retention Scheme (CJRS) results in cash payments from the government to compensate employers for part of the wages, associated national insurance contributions (NICs) and employer pension contributions of employees who have been placed on furlough (i.e. placed on a temporary leave of absence from working for the employer).

 

The CJRS grant is recognised under the accrual model, and is recognised as income on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. As such the income from the grant is recognised on a straight line basis over the furlough period for each relevant employee.

8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
1.14
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transaction. At each reporting end date, monetary assets and liabilities denominated in foreign currencies are retranslated into pounds sterling at the rates of exchange prevailing at the balance sheet date. Gains and losses arising on translation are included in the profit and loss account for the period.

1.15

Termination benefits

Termination benefits are recognised when the company has demonstrated a commitment to either terminate the employment of an employee or group of employees before the normal retirement date, or to provide termination benefits as a result of an offer made in order to encourage voluntary redundancy.

 

2
Judgements and key sources of estimation uncertainty
- 20 -

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to carrying amounts of assets and liabilities within the next financial year are addressed below.

Accounting for construction contracts

Recognition of revenue and profit is based on judgments made in respect of the ultimate profitability of a contract. Such judgements are arrived at through the use of estimates in relation to costs and value of work performed to date and to be performed in bringing contracts to completion, including rectification of snagging issues. These estimates are made by reference to recovery of pre-contract costs, surveys of progress against the construction programme, changes in work scope, the contractual terms under which the work is being performed, including the recoverability of any unagreed income from variations and the likely outcome of discussions on claims, costs incurred and external certification of the work performed. The company has appropriate control procedures to ensure all estimates are determined on a consistent basis and subject to appropriate review and authorisation.

Valuation of freehold property

The valuation of the freehold property is on the basis of a valuation carried out by an independent surveyor. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties. Notwithstanding the turbulence in the property market, the directors consider the valuation to be materially accurate.

8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Revenue

An analysis of the company's revenue is as follows:

2023
2022
£000
£000
Revenue analysed by class of business
Construction contracts
110,831
109,656
2023
2022
£000
£000
Other revenue
Interest income
701
-
Grants received
-
52
Management charges
64
101
4
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging/(crediting):
£000
£000
Exchange (gains)/losses
(67)
11
Government grants
-
(52)
Depreciation of owned property, plant and equipment
79
94
Amortisation of intangible assets
217
232
Operating lease charges
35
140
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£000
£000
For audit services
Audit of the financial statements of the company
48
48
For other services
All other non-audit services
12
1
6
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Directors
7
7
Direct staff
150
147
Administrative staff
33
32
Total
190
186
- 21 -
8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Employees
(Continued)

Their aggregate remuneration comprised:

2023
2022
£000
£000
Wages and salaries
14,862
13,904
Social security costs
1,973
1,698
Pension costs
685
656
17,520
16,258
7
Directors' remuneration
2023
2022
£000
£000
Remuneration for qualifying services
1,021
1,333
Company pension contributions
57
64
1,078
1,397

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 6 (2022: 6).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£000
£000
Remuneration for qualifying services
245
265
Company pension contributions
12
13
8
Investment income
2023
2022
£000
£000
Interest income
Interest on bank deposits
161
-
0
Other interest income
540
-
0
Total income
701
-
0
9
Finance costs
2023
2022
£000
£000
Interest on bank overdrafts and loans
52
33
- 22 -
8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Taxation
2023
2022
£000
£000
Current tax
Adjustments in respect of prior periods
(728)
(725)

The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£000
£000
Profit/(loss) before taxation
797
(512)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
151
(97)
Tax effect of expenses that are not deductible in determining taxable profit
10
22
Unutilised tax losses carried forward
-
0
75
Adjustments in respect of prior years
(728)
(195)
Group relief
(41)
-
0
Research and development tax credit
(120)
(530)
Taxation credit for the year
(728)
(725)

In addition to the amount credited to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
£000
£000
Deferred tax arising on:
Revaluation of property
-
0
145
- 23 -
8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
11
Intangible fixed assets
Software
£000
Cost
At 1 April 2022
1,090
Additions
132
At 31 March 2023
1,222
Amortisation and impairment
At 1 April 2022
658
Amortisation charged for the year
218
At 31 March 2023
876
Carrying amount
At 31 March 2023
346
At 31 March 2022
432
12
Property, plant and equipment
Freehold land and buildings
Fixtures, fittings & equipment
Motor vehicles
Total
£000
£000
£000
£000
Cost or valuation
At 1 April 2022
3,500
1,058
250
4,808
Additions
-
0
107
16
123
At 31 March 2023
3,500
1,165
266
4,931
Depreciation
At 1 April 2022
-
0
803
193
996
Depreciation charged in the year
-
0
47
32
79
At 31 March 2023
-
0
850
225
1,075
Carrying amount
At 31 March 2023
3,500
315
41
3,856
At 31 March 2022
3,500
255
57
3,812

The freehold land and buildings were valued on 17 March 2022 on an open market basis by Frost Meadowcroft Surveyors LLP, an independent firm of property consultants and Chartered Surveyors. The directors have not requested a valuation since that date as, in their opinion, the open market value has not materially changed during the short intervening period.

- 24 -
8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
12
Property, plant and equipment
(Continued)

If revalued assets were stated on an historical basis rather than a fair value basis, the total amounts included would have been as follows:

2023
2022
£000
£000
Freehold land and buildings
1,287
1,287

Freehold land and buildings with a carrying amount of £3,500,000 (2022 - £3,500,000) have been pledged to secure banking facilities for the company. This charge was created on 8 July 2020. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity without a signed written consent.

13
Contract assets and liabilities
2023
2022
£000
£000
Contracts in progress at the reporting date
Contract assets
16,742
21,117
Contract liabilities
(22,347)
(28,537)

Contract assets primarily relate to the company's right to consideration for construction work completed but not invoiced at the balance sheet date.

 

Where progress billings exceed costs incurred plus recognised profits less recognised losses, the balance is shown as contract liabilities.

At 31 March 2023, retentions held by customers for contract work amounted to £5,386,000 (2022 - £6,263,000) and are included within contract assets.

At 31 March 2023, amounts of £1,107,000 (2022 - £4,481,000) included in trade and other receivables and arising from contracts are due for settlement after more than 12 months.

 

At 31 March 2023, amounts of £583,000 (2022 - £2,663,000) included in trade and other payables and arising from contracts are due for payment after more than 12 months.

- 25 -
8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
14
Trade and other receivables
2023
2022
Amounts falling due within one year:
£000
£000
Trade receivables
6,642
11,388
Gross amounts owed by contract customers
15,635
16,636
Insurance receivables
1,398
-
Corporation tax recoverable
-
0
1,084
Amounts owed by group undertakings
243
34
Other receivables
7
14
Prepayments and accrued income
162
158
24,087
29,314
2023
2022
Amounts falling due after more than one year:
£000
£000
Gross amounts owed by contract customers
1,107
4,481
Total debtors
25,194
33,795
15
Current liabilities
2023
2022
Notes
£000
£000
Bank loans
17
-
0
500
Trade payables
5,114
4,774
Gross amounts owed to contract customers
21,764
25,874
Taxation and social security
3,107
4,633
Accruals and deferred income
899
965
30,884
36,746
16
Non-current liabilities
2023
2022
Notes
£000
£000
Bank loans and overdrafts
17
-
0
1,250
Gross amounts owed to contract customers
583
2,663
583
3,913
- 26 -
8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
17
Borrowings
2023
2022
£000
£000
Bank loans
-
0
1,750
Payable within one year
-
0
500
Payable after one year
-
0
1,250

The mortgage was payable over 5 years and was subject to interest at a floating rate being 2.1% over the bank's interest currency base rate. Subsequently, the company was exposed to cash flow interest rate risk. The mortgage was repaid in full in October 2022.

 

The company's bankers hold a fixed charge over the freehold property.

18
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£000
£000
ACAs
104
104
Revaluations
500
500
604
604
There were no deferred tax movements in the year.
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£000
£000
Charge to profit or loss in respect of defined contribution schemes
685
656

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£000
£000
Issued and fully paid
Ordinary shares of 1p each
140,975
140,975
1
1
- 27 -
8BUILD LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
21
Operating lease commitments

Operating lease payments represent rentals payable by the company for certain of its assets. Leases are negotiated for an average term of 5 years and rentals are fixed for that period.

At the year end the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£000
£000
Within one year
9
20
Between two and five years
31
-
0
40
20
22
Related party transactions

The company has taken advantage of the exemption in section 33.1A of FRS 102 from the requirement to disclose transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member.

 

The company traded with a fellow group company which is not wholly owned. During the year, 8build Limited charged the entity £73,000 (2022: £73,000) in respect of management fees and recharges. Of these, £7,000 (2022: £7,000) was outstanding at the year end. The entity charged 8build Ltd £9,000 (2022: £10,000) for IT services in the year.

 

During the prior year, the company traded with an entity under common control and charged the entity £2,000 for services provided.

 

During the year, £733,000 (2022: £687,000) in renumeration was paid to employees of the company who are members of the directors' families.

23
Ultimate controlling party

The company is a subsidiary of 8build Group Limited, a company incorporated in England & Wales with registration number of 11852341. The registered office address is 64 Leman Street, London, E1 8EU.

- 28 -
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.200N. J. W. BellamyM. J. F. MannionP. R. NormanS. J. OakfordA. R. TooleyC. RaisonC. RaisonL. H. Hammond055237222022-04-012023-03-3105523722bus:Director12022-04-012023-03-3105523722bus:CompanySecretaryDirector12022-04-012023-03-3105523722bus:Director22022-04-012023-03-3105523722bus:Director32022-04-012023-03-3105523722bus:Director42022-04-012023-03-3105523722bus:Director52022-04-012023-03-3105523722bus:Director62022-04-012023-03-3105523722bus:CompanySecretary12022-04-012023-03-3105523722bus:Director72022-04-012023-03-3105523722bus:RegisteredOffice2022-04-012023-03-3105523722bus:Agent12022-04-012023-03-3105523722bus:Agent22022-04-012023-03-31055237222023-03-31055237222021-04-012022-03-3105523722core:RetainedEarningsAccumulatedLosses2021-04-012022-03-3105523722core:RetainedEarningsAccumulatedLosses2022-04-012023-03-3105523722core:RevaluationReserve2022-04-012023-03-3105523722core:RevaluationReserve2021-04-012022-03-3105523722core:RevenueReservesInvestmentFundsOnly2021-04-012022-03-3105523722core:ShareCapital2021-04-012022-03-3105523722core:SharePremium2021-04-012022-03-3105523722core:OtherResidualIntangibleAssets2023-03-3105523722core:OtherResidualIntangibleAssets2022-03-3105523722core:ComputerSoftware2023-03-3105523722core:ComputerSoftware2022-03-31055237222022-03-3105523722core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3105523722core:FurnitureFittings2023-03-3105523722core:MotorVehicles2023-03-3105523722core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3105523722core:FurnitureFittings2022-03-3105523722core:MotorVehicles2022-03-3105523722core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3105523722core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3105523722core:WithinOneYear2023-03-3105523722core:WithinOneYear2022-03-3105523722core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3105523722core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3105523722core:CurrentFinancialInstruments2023-03-3105523722core:CurrentFinancialInstruments2022-03-3105523722core:Non-currentFinancialInstruments2023-03-3105523722core:Non-currentFinancialInstruments2022-03-3105523722core:ShareCapital2023-03-3105523722core:ShareCapital2022-03-3105523722core:SharePremium2023-03-3105523722core:SharePremium2022-03-3105523722core:RevaluationReserve2023-03-3105523722core:RevaluationReserve2022-03-3105523722core:RetainedEarningsAccumulatedLosses2023-03-3105523722core:RetainedEarningsAccumulatedLosses2022-03-3105523722core:ShareCapital2021-03-3105523722core:SharePremium2021-03-3105523722core:RevaluationReserve2021-03-3105523722core:RetainedEarningsAccumulatedLosses2021-03-31055237222021-03-3105523722core:IntangibleAssetsOtherThanGoodwill2022-04-012023-03-3105523722core:ComputerSoftware2022-04-012023-03-3105523722core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3105523722core:FurnitureFittings2022-04-012023-03-3105523722core:MotorVehicles2022-04-012023-03-3105523722dpl:Item12022-04-012023-03-3105523722dpl:Item12021-04-012022-03-3105523722dpl:Item22021-04-012022-03-3105523722bus:HighestPaidDirector2022-04-012023-03-3105523722bus:HighestPaidDirector2021-04-012022-03-3105523722core:UKTax2022-04-012023-03-3105523722core:UKTax2021-04-012022-03-3105523722core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3105523722core:FurnitureFittings2022-03-3105523722core:MotorVehicles2022-03-31055237222022-03-3105523722core:CurrentFinancialInstruments12023-03-3105523722core:CurrentFinancialInstruments12022-03-3105523722core:Non-currentFinancialInstruments22023-03-3105523722core:Non-currentFinancialInstruments22022-03-3105523722core:BetweenTwoFiveYears2023-03-3105523722core:BetweenTwoFiveYears2022-03-3105523722bus:PrivateLimitedCompanyLtd2022-04-012023-03-3105523722bus:FRS1022022-04-012023-03-3105523722bus:Audited2022-04-012023-03-3105523722bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP