Company registration number 05382398 (England and Wales)
PRICE BUILDING SERVICES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 MARCH 2023
6th Floor Kings House
9-10 Haymarket
London
United Kingdom
SW1Y 4BP
PRICE BUILDING SERVICES LIMITED
CONTENTS
Page
Company information
1
Strategic report
2
Directors' report
3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Statement of financial position
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 24
PRICE BUILDING SERVICES LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr R Davies
Mr R Price
Secretary
Mr R Davies
Company number
05382398
Registered office
Units 3-4 Mariner Business Centre
1 Kings Way
Croydon
CR0 4GE
Auditor
TC Group
6th Floor Kings House
9-10 Haymarket
London
United Kingdom
SW1Y 4BP
PRICE BUILDING SERVICES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -

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

The principal activity of the company continues to be mechanical building services and installations.

Fair review of the business

The directors are pleased to report another successful year of trading and the company has improved its liquidity by £1,527,317 (2022: £812,018) and its reserves by £1,867,139 (2022: £1,079,959).

The company continues to benefit from in-house pre-fabrication and manufacture, providing an edge over competitors, and allowing the company to offer its clients a fully bespoke product as a result. The company has expanded in this area, expanding the capacity of its manufacturing premises over the last year, as well as continuing its research and development programme producing continually evolving and innovative prototype designs.

The company assiduously adheres to the increasing health and safety compliance, as well as environmental and social considerations, and is well placed in appointing and retaining operatives and managers in a sector which is renowned for its high mobility in this area. Moreover, the company has received recognition in the London Stock Exchange report '1000 companies to inspire Britain', which is a considerable and well-earned accolade.

 

The company remains very confident that it is well placed to ensure that there are sufficient cash reserves to meet its obligations which have been particularly enforced by the further dramatic improvement in the aforementioned liquidity and solvency. This has given the company further conviction and a huge advantage for future growth and development.

Key performance indicators

The company's key financial and other performance indicators during the year were as follows:

2023
2022
2021
Gross Profit Margin
12%
13%
21%
Net Profit Margin
3%
4%
8%
Debtor days
29
19
10
Principal risks and uncertainties

The principal risks and uncertainties that face the company continue to be similar to those faced by the sector as a whole, along with the company's ability to adequately adapt to any significant changes that may occur within the industry sector.


One specific area of risk concerns the tender process and its inherent downward pressure on pricing in order to remaining competitive. In response to this, the company have had in place strong controls to ensure any prospective work is assessed adequately to ensure the required margins can be achieved.

 

The directors are confident that they have the collective experience, having both worked within the industry for more than 25 years, to navigate any future market fluctuations the company may face.

On behalf of the board

Mr R Price
Director
12 October 2023
PRICE BUILDING SERVICES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company continued to be that of mechanical building services and installations.

Results and dividends

The results for the year are set out on page 7.

Ordinary dividends were paid amounting to £399,996. The directors do not recommend payment of a final dividend.

Directors

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

Mr R Davies
Mr R Price
Auditor

In accordance with the company's articles, a resolution proposing that TC Group be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

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.

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.

On behalf of the board
Mr R Price
Director
12 October 2023
PRICE BUILDING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PRICE BUILDING SERVICES LIMITED
- 4 -
Opinion

We have audited the financial statements of Price Building Services 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, the statement of cash flows 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 audit:

PRICE BUILDING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PRICE BUILDING SERVICES LIMITED
- 5 -
Matters on which we are required to report by exception

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

Responsibilities of directors

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.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

PRICE BUILDING SERVICES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PRICE BUILDING SERVICES LIMITED
- 6 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s 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 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in 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 members as a body, for our audit work, for this report, or for the opinions we have formed.

Philip Clark FCCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
12 October 2023
Office: London
PRICE BUILDING SERVICES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -
2023
2022
Notes
£
£
Turnover
3
51,667,174
48,546,308
Cost of sales
(45,412,752)
(42,040,537)
Gross profit
6,254,422
6,505,771
Administrative expenses
(4,775,044)
(4,658,350)
Other operating income
182,581
116,960
Operating profit
4
1,661,959
1,964,381
Interest receivable and similar income
8
5,239
-
0
Interest payable and similar expenses
9
(99,647)
(74,424)
Fair value adjustment on investment properties
10
-
24,426
Profit before taxation
1,567,551
1,914,383
Tax on profit
11
699,584
(414,643)
Profit for the financial year
2,267,135
1,499,740
Other comprehensive income
Revaluation of tangible fixed assets
-
0
22,020
Tax relating to other comprehensive income
-
0
(9,690)
Total comprehensive income for the year
2,267,135
1,512,070

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

PRICE BUILDING SERVICES LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 MARCH 2023
31 March 2023
- 8 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
1,482,785
1,546,589
Investment properties
14
1,815,000
1,815,000
Investments
15
1
-
0
3,297,786
3,361,589
Current assets
Debtors
17
15,601,931
14,930,656
Cash at bank and in hand
742,644
784,550
16,344,575
15,715,206
Creditors: amounts falling due within one year
18
(9,298,275)
(10,196,223)
Net current assets
7,046,300
5,518,983
Total assets less current liabilities
10,344,086
8,880,572
Creditors: amounts falling due after more than one year
19
(1,595,749)
(1,999,374)
Provisions for liabilities
Deferred tax liability
22
23,270
23,270
(23,270)
(23,270)
Net assets
8,725,067
6,857,928
Capital and reserves
Called up share capital
24
100
100
Revaluation reserve
203,214
203,214
Other reserves
19,785
19,785
Profit and loss reserves
8,501,968
6,634,829
Total equity
8,725,067
6,857,928
The financial statements were approved by the board of directors and authorised for issue on 12 October 2023 and are signed on its behalf by:
Mr R Price
Director
Company Registration No. 05382398
PRICE BUILDING SERVICES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
Share capital
Revaluation reserve
Other reserves
Profit and loss reserves
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
100
190,884
-
0
5,554,870
5,745,854
Year ended 31 March 2022:
Profit for the year
-
-
-
1,499,740
1,499,740
Other comprehensive income:
Revaluation of tangible fixed assets
-
22,020
-
-
22,020
Tax relating to other comprehensive income
-
(9,690)
-
-
0
(9,690)
Total comprehensive income for the year
-
0
12,330
-
0
1,499,740
1,512,070
Dividends
12
-
-
-
(399,996)
(399,996)
Transfers
-
-
0
19,785
(19,785)
-
Balance at 31 March 2022
100
203,214
19,785
6,634,829
6,857,928
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
-
2,267,135
2,267,135
Dividends
12
-
-
-
(399,996)
(399,996)
Balance at 31 March 2023
100
203,214
19,785
8,501,968
8,725,067
PRICE BUILDING SERVICES LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
153,597
649,558
Interest paid
(99,647)
(74,424)
Income taxes paid
(139,684)
(678,389)
Net cash outflow from operating activities
(85,734)
(103,255)
Investing activities
Purchase of tangible fixed assets
(89,499)
(186,937)
Proceeds from disposal of tangible fixed assets
-
0
21,000
Proceeds from disposal of subsidiaries
(1)
-
0
Proceeds from disposal of investments
-
0
24,426
Repayment of loans
-
0
480,101
Interest received
5,239
-
0
Net cash (used in)/generated from investing activities
(84,261)
338,590
Financing activities
Repayment of bank loans
(350,977)
(290,730)
Payment of finance leases obligations
(21,114)
66,498
Dividends paid
(399,996)
(399,996)
Net cash used in financing activities
(772,087)
(624,228)
Net decrease in cash and cash equivalents
(942,082)
(388,893)
Cash and cash equivalents at beginning of year
784,550
1,173,443
Cash and cash equivalents at end of year
(157,532)
784,550
Relating to:
Cash at bank and in hand
742,644
784,550
Bank overdrafts included in creditors payable within one year
(900,176)
-
0
PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
1
Accounting policies
Company information

Price Building Services Limited is a private company limited by shares incorporated in England and Wales. The registered office and the company's place of business is Units 3-4 Mariner Business Centre, 1 Kings Way, Croydon, CR0 4GE. The principal activity of the company is noted in the Directors' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 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 £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

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
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity, and specific criteria have been met from each of the Company's activities.

All ongoing contract at the year end are examined to identify the probable amounts that could be received on each contract based on the value of work undertaken from the most recent external contract valuation date to the year end date.

The stage of completion for all contracts are determined by the most recent agreed external contract valuation, as agreed between the customer and the company and in line with the original contract terms for works.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation 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:

Freehold land and buildings
4%/5% straight line basis (as appropriate)
Fixtures, fittings and office equipment
25% reducing balance and 33% straight line basis
Motor vehicles
25% reducing balance
PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 12 -

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 credited or charged to profit or loss.

1.5
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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 (if any). 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.

1.8
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic 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, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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 profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

1.12
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 company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.15
Government grants

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.

1.16
Foreign exchange

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

2
Judgements and key sources of estimation uncertainty

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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Work in progess

Due to the nature of contract timescales for the projects which the company has undertaken it is routinely necessary to estimate the percentage of work completed in order to recognise amounts recoverable from contracts. These are based on all the information available to management including the position of contracts at the financial year end and at contract completion, the latest correspondence with customers, the latest certified reports from the independent quantity surveyors, drawing on the experience and opinions of the management team which include contract managers.

 

There are no other key sources of estimation uncertainty.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Rendering of services
51,667,174
48,546,308
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
51,667,174
48,546,308
PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 16 -
2023
2022
£
£
Other revenue
Interest income
5,239
-
Grants received
-
3,223
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(3,223)
Depreciation of owned tangible fixed assets
153,303
133,129
Depreciation of tangible fixed assets held under finance leases
-
30,688
(Profit)/loss on disposal of tangible fixed assets
-
2,125
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
12,000
12,000
For other services
All other non-audit services
31,160
18,300
6
Employees

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

2023
2022
Number
Number
Administration and support
10
10
Manufacturing and distribution
85
97
Total
95
107
PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Employees
(Continued)
- 17 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,751,951
3,853,307
Social security costs
349,572
352,481
Pension costs
69,339
76,779
4,170,862
4,282,567
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
70,000
75,451
Company pension contributions to defined contribution schemes
1,726
1,802
71,726
77,253

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2022 - 2).

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
455
-
0
Other interest income
4,784
-
0
Total income
5,239
-
0

Investment income includes the following:

Interest on financial assets not measured at fair value through profit or loss
455
-
0
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
97,220
66,915
Other finance costs:
Interest on finance leases and hire purchase contracts
2,427
3,078
Other interest
-
0
4,431
99,647
74,424
PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 18 -
10
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
Amounts written back to fair value through profit or loss
-
0
24,426
11
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
289,537
401,063
Adjustments in respect of prior periods
(989,121)
-
0
Total current tax
(699,584)
401,063
Deferred tax
Origination and reversal of timing differences
-
0
13,580
Total tax (credit)/charge
(699,584)
414,643

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

2023
2022
£
£
Profit before taxation
1,567,551
1,914,383
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
297,835
363,733
Tax effect of expenses that are not deductible in determining taxable profit
(46,621)
32,198
Deferred tax movement
-
0
8,939
Capital allowances and depreciation effect
24,607
9,773
R&D relief in respect of prior year
(975,405)
-
0
Taxation (credit)/charge for the year
(699,584)
414,643

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

2023
2022
£
£
Deferred tax arising on:
Revaluation of property
-
9,690
PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
12
Dividends
2023
2022
£
£
Interim paid
399,996
399,996
13
Tangible fixed assets
Freehold land and buildings
Fixtures, fittings and office equipment
Motor vehicles
Total
£
£
£
£
Cost or valuation
At 1 April 2022
1,624,999
222,925
265,966
2,113,890
Additions
-
0
89,499
-
0
89,499
At 31 March 2023
1,624,999
312,424
265,966
2,203,389
Depreciation and impairment
At 1 April 2022
298,303
148,367
120,631
567,301
Depreciation charged in the year
47,307
69,662
36,334
153,303
At 31 March 2023
345,610
218,029
156,965
720,604
Carrying amount
At 31 March 2023
1,279,389
94,395
109,001
1,482,785
At 31 March 2022
1,326,696
74,558
145,335
1,546,589

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2023
2022
£
£
Motor vehicles
67,943
90,590

Freehold land and buildings with a carrying amount of £1,279,389 were revalued at 6 October 2021 by Sinclair Jones Surveyors & Valuers, The valuation was made on an open market value basis by reference to market evidences of transaction prices for similar properties.

 

The directors consider the valuation to be appropriate for the year current.

Freehold land and buildings are carried at valuation. If freehold land and buildings were measured using the cost model, the carrying amounts would have been approximately £1,144,802 ( 2022: £1,181,584), being cost £1,412,096 ( 2022: £1,412,096) and depreciation £267,294 (2022: £230,512).

 

The revaluation surplus is disclosed in note 25.

 

After the year end, the freehold land and buildings were transferred to the subsidiary company, PBS SPV 1 Limited for a consideration of £3.915m ( see note 29).

PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
14
Investment property
2023
£
Fair value
At 1 April 2022 and 31 March 2023
1,815,000

Investment property comprises of freehold land and buildings, The investment property were valued on 6 October 2021 by Sinclair Jones Surveyors & Valuers. The valuation was made on an open market value basis by reference to market evidences of transaction prices for similar properties.

 

The directors consider the valuation to the appropriate for the current year.

 

After the year end, the investment properties were transferred to the subsidiary company, PBS SPV 1 Limited for a consideration of £1.975m ( see note 29).

15
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
16
1
-
0
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022
-
Additions
1
At 31 March 2023
1
Carrying amount
At 31 March 2023
1
At 31 March 2022
-
16
Subsidiaries
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
PBS SPV  1 Limited
England & Wales
Dormant
Ordinary shares
100.00
PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
17
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
4,053,794
2,595,960
Gross amounts owed by contract customers
9,569,858
8,907,276
Corporation tax recoverable
727,742
-
0
Other debtors
1,005,259
3,188,152
Prepayments and accrued income
245,278
239,268
15,601,931
14,930,656
18
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
20
1,251,154
357,396
Obligations under finance leases
21
59,668
21,716
Trade creditors
5,787,191
7,721,696
Corporation tax
289,537
401,063
Other taxation and social security
152,030
153,906
Other creditors
1,721,945
1,501,446
Accruals and deferred income
36,750
39,000
9,298,275
10,196,223
19
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
20
1,584,003
1,928,562
Obligations under finance leases
21
11,746
70,812
1,595,749
1,999,374
20
Loans and overdrafts
2023
2022
£
£
Bank loans
1,934,981
2,285,958
Bank overdrafts
900,176
-
0
2,835,157
2,285,958
Payable within one year
1,251,154
357,396
Payable after one year
1,584,003
1,928,562
PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
20
Loans and overdrafts
(Continued)
- 22 -

The bank loans are secured by a fixed and floating charge against the properties held by the company.

21
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
59,668
21,716
In two to five years
11,746
70,812
71,414
92,528
22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
8,939
8,939
Revaluations
9,690
9,690
Investment property
4,641
4,641
23,270
23,270
There were no deferred tax movements in the year.
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
69,339
76,779

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.

24
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
25
Revaluation reserve

As noted in the Statement of Changes in Equity, the Revaluation Reserve represents the Fair Value of the company's freehold properties over the original cost as adjusted for deferred taxation provisions in relation to the same. The cumulative fair value of £212,904 (2022: £212,904) less the calculated deferred tax of £9,690 (2022: £9,690) on the the potential gain results in a revaluation reserve of £203,214 (2022: £203,214) at the balance sheet date.

26
Operating lease commitments

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

2023
2022
£
£
Within one year
236,205
229,000
Between two and five years
226,686
278,638
462,891
507,638
27
Related party transactions

The company trades with Price Building Solutions Limited, a company with common directors and shareholders.

 

During the year, purchases of £4,136,783 (2022: £5,349,255) and sales of £485,816 (2022: £733,740) were made from and to Price Building Solutions Limited and rent of £60,000 (2022: £60,000) was received from Price Building Solutions Limited.

 

At the year end included in trade creditors is an amount due to Price Building Solutions Limited of £1,271,403 (2022: £1,414,470) and included in trade debtors is an amount owed from Price Building Solutions Limited of £49,399 (2022: £93,982). The company also had an intercompany balance due from Price Building Solutions Limited of £nil (2022: £45,766).

 

At the year end, the company had an intercompany balance due from Price Building Limited of £501,179 (2022: £1,643,079), a company with common directors and shareholders.

28
Directors' transactions

Dividends totalling £399,996 (2022 - £399,996) were paid in the year in respect of shares held by the company's directors.

Interest free loans have been granted from/(to) the directors as follows:

Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Loan
-
425,327
(102,267)
150,000
473,060
Loan
-
558,729
(174,474)
-
384,255
984,056
(276,741)
150,000
857,315
PRICE BUILDING SERVICES LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
29
Events after the reporting date

In July/August 2023, as part of a reorganisation/restructuring, the company has transferred its freehold land and buildings and its investment properties to the subsidiary company, PBS SPV 1 Limited for a total consideration of £5.89m.

30
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,267,135
1,499,740
Adjustments for:
Taxation (credited)/charged
(699,584)
414,643
Finance costs
99,647
74,424
Investment income
(5,239)
-
0
(Gain)/loss on disposal of tangible fixed assets
-
2,125
Depreciation and impairment of tangible fixed assets
153,303
163,817
Other gains and losses
-
(24,426)
Movements in working capital:
Decrease/(increase) in debtors
56,467
(6,983,863)
(Decrease)/increase in creditors
(1,718,132)
5,503,098
Cash generated from operations
153,597
649,558
31
Analysis of changes in net debt
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
784,550
(41,906)
742,644
Bank overdrafts
-
0
(900,176)
(900,176)
784,550
(942,082)
(157,532)
Borrowings excluding overdrafts
(2,285,958)
350,977
(1,934,981)
Obligations under finance leases
(92,528)
21,114
(71,414)
(1,593,936)
(569,991)
(2,163,927)
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