Caseware UK (AP4) 2022.0.179 2022.0.179 2023-06-302023-06-30falsefalse2022-07-01No description of principal activity103101false SC204777 2022-07-01 2023-06-30 SC204777 1 2022-07-01 2023-06-30 SC204777 2021-07-01 2022-06-30 SC204777 2023-06-30 SC204777 2022-06-30 SC204777 2021-07-01 SC204777 1 2022-07-01 2023-06-30 SC204777 1 2021-07-01 2022-06-30 SC204777 e:Director1 2022-07-01 2023-06-30 SC204777 e:Director2 2022-07-01 2023-06-30 SC204777 e:Director3 2022-07-01 2023-06-30 SC204777 e:RegisteredOffice 2022-07-01 2023-06-30 SC204777 e:Agent1 2022-07-01 2023-06-30 SC204777 c:CurrentFinancialInstruments 2023-06-30 SC204777 c:CurrentFinancialInstruments 2022-06-30 SC204777 c:CurrentFinancialInstruments c:WithinOneYear 2023-06-30 SC204777 c:CurrentFinancialInstruments c:WithinOneYear 2022-06-30 SC204777 f:UnitedKingdom 2022-07-01 2023-06-30 SC204777 f:UnitedKingdom 2021-07-01 2022-06-30 SC204777 c:UKTax 2022-07-01 2023-06-30 SC204777 c:UKTax 2021-07-01 2022-06-30 SC204777 c:ShareCapital 2023-06-30 SC204777 c:ShareCapital 2022-06-30 SC204777 c:ShareCapital 2021-07-01 SC204777 c:RetainedEarningsAccumulatedLosses 2022-07-01 2023-06-30 SC204777 c:RetainedEarningsAccumulatedLosses 2023-06-30 SC204777 c:RetainedEarningsAccumulatedLosses 2021-07-01 2022-06-30 SC204777 c:RetainedEarningsAccumulatedLosses 2022-06-30 SC204777 c:RetainedEarningsAccumulatedLosses 2021-07-01 SC204777 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-07-01 2023-06-30 SC204777 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2023-06-30 SC204777 c:FurtherSpecificTypeProvisionContingentLiability1ComponentTotalProvisionsContingentLiabilities 2022-06-30 SC204777 e:OrdinaryShareClass1 2022-07-01 2023-06-30 SC204777 e:OrdinaryShareClass1 2023-06-30 SC204777 e:OrdinaryShareClass1 2022-06-30 SC204777 e:FRS102 2022-07-01 2023-06-30 SC204777 e:Audited 2022-07-01 2023-06-30 SC204777 e:FullAccounts 2022-07-01 2023-06-30 SC204777 e:PrivateLimitedCompanyLtd 2022-07-01 2023-06-30 SC204777 c:WithinOneYear 2023-06-30 SC204777 c:WithinOneYear 2022-06-30 SC204777 c:BetweenOneFiveYears 2023-06-30 SC204777 c:BetweenOneFiveYears 2022-06-30 SC204777 c:MoreThanFiveYears 2023-06-30 SC204777 c:MoreThanFiveYears 2022-06-30 SC204777 c:OtherDeferredTax 2023-06-30 SC204777 c:OtherDeferredTax 2022-06-30 xbrli:shares iso4217:GBP xbrli:pure
Registered number: SC204777










SKENE GROUP CONSTRUCTION SERVICES LIMITED

DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

COMPANY INFORMATION


Directors
Mr N Skene 
Mr D Skene 
Mrs J Mason 




Registered number
SC204777



Registered office
Skene House
Viewfield Road

Viewfield Industrial Estate

Glenrothes

Fife

KY6 2RD




Independent auditors
EQ Audit Services LLP (Statutory Auditor)
Chartered Accountants

Pentland House

Saltire Centre

Glenrothes

Fife

KY6 2AH




Bankers
Bank of Scotland
9 Falkland Gate

Glenrothes

Fife

KY7 5LW




Solicitors
MacRoberts
10 George Street

Edinburgh

EH2 2PF





 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

CONTENTS



Page
Strategic Report
 
 
1
Directors' Report
 
 
2 - 3
Independent Auditors' Report
 
 
4 - 7
Statement of Comprehensive Income
 
 
8
Statement of Financial Position
 
 
9
Statement of Changes in Equity
 
 
10
Analysis of Net Debt
 
 
11
Notes to the Financial Statements
 
 
12 - 22

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023

Introduction
 
The directors have pleasure in presenting their strategic report for the year ended 30 June 2023.

Business review
 
The principal activities during the current year and the previous year were the operation of quarries and concrete product production.
Key performance indicators continue to be monitored over a number of areas.  Robust control over all aspects of working capital, strict monitoring of all aspects of cash flow and the monitoring of actual results against a detailed budget, including unit gross profit calculations for each physical unit of productive activity, by division.
The Company’s pre tax profit for the period was £2,765,143 whilst the Company’s balance sheet shows a net asset position of £1,746,520 with net current assets of £1,996,460.   Turnover increased by 11.3%.  The directors consider the Company to be well positioned to take advantage of the demand for its products and services.
Additional  planning consent for a key site was granted during the period which has expanded the life for sand, gravel and hard rock mining.
The Company is supported and works closely with its holding company, SGH Investments Ltd.  The Company has no indebtedness to any financial institution and functions without the need to operate a bank overdraft.

Principal risks and uncertainties
 
In the construction sector the main commercial risks surround the level of general construction and housebuilding which is on-going at any time, in chosen geographical markets, needed to generate a requirement for the Company’s goods and services.  Other risks surround the timely and predictable supply of raw materials in sufficient quantities and quality as well as the availability of staff across all disciplines. Those risks which the business finds itself exposed to are managed by a strong and experienced board of directors and management team.
The Company’s principal financial instruments comprise bank balances and loans from its holding company, SGH Investments Ltd.  The main purpose of these instruments is to finance operations.  Due to the nature of these financial instruments  there is no exposure to price risk.  In respect of bank balances the liquidity risk is managed by maintaining flexibility through the use of cash at bank resources.  Loans from the holding company, SGH Investments Ltd, provides further flexibility if required with managing cash flow.

Safety and health, environment and quality
 
The Company recognises the importance of health and safety, environment and quality and has policies and procedures in place to ensure requirements are met at all times.


This report was approved by the board on 31 October 2023 and signed on its behalf.






................................................
Mr N Skene
Director
Page 1

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023

The directors present their report and the financial statements for the year ended 30 June 2023.

Directors' responsibilities statement

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

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.

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

Results and dividends

The profit for the year, after taxation, amounted to £2,237,048 (2022 - £2,055,060).

There are no proposed dividends for the year ended 30 June 2023.

Directors

The directors who served during the year were:

Mr N Skene 
Mr D Skene 
Mrs J Mason 

Future developments

Core operations are strong and the directors consider the business to be in a robust financial position allowing it to fully exploit future opportunities. The directors and senior members of staff continually strive to improve productivity and strive to be forward thinking and innovative.
Page 2

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023


Disclosure of information to auditors

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

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

Post balance sheet events

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

This report was approved by the board on 31 October 2023 and signed on its behalf.
 






................................................
Mr N Skene
Director
Page 3

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

Opinion


We have audited the financial statements of Skene Group Construction Services Limited (the 'Company') for the year ended 30 June 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 June 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


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


Conclusions relating to going concern


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


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


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


Page 4

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SKENE GROUP CONSTRUCTION SERVICES LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


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


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Page 5

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SKENE GROUP CONSTRUCTION SERVICES LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' Responsibilities Statement set out on page 2, 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.


Auditors' responsibilities for the audit of the financial statements
 

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


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.
We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.
Page 6

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF SKENE GROUP CONSTRUCTION SERVICES LIMITED (CONTINUED)


Use of our report
 

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






Mark Gibson CA (Senior Statutory Auditor)
for and on behalf of
EQ Audit Services LLP (Statutory Auditor)
Chartered Accountants
Pentland House
Saltire Centre
Glenrothes
Fife
KY6 2AH

31 October 2023
Page 7

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

2023
2022
£
£

  

Turnover
 4 
28,294,578
25,412,910

Cost of sales
  
(22,460,360)
(19,905,985)

Gross profit
  
5,834,218
5,506,925

Administrative expenses
  
(3,069,075)
(3,084,816)

Other operating income
 5 
-
12,264

Operating profit
 6 
2,765,143
2,434,373

Interest receivable and similar income
 9 
-
1,148

Profit before tax
  
2,765,143
2,435,521

Tax on profit
 10 
(528,095)
(380,461)

Profit for the financial year
  
2,237,048
2,055,060

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 12 to 22 form part of these financial statements.

Page 8

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
REGISTERED NUMBER: SC204777

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2023

2023
2022
£
£

  

Current assets
  

Stocks
 12 
1,172,678
1,073,899

Debtors: amounts falling due within one year
 13 
6,384,851
6,711,211

Cash at bank and in hand
 14 
1,061,828
666,879

  
8,619,357
8,451,989

Creditors: amounts falling due within one year
 15 
(6,622,897)
(6,215,342)

Net current assets
  
 
 
1,996,460
 
 
2,236,647

Total assets less current liabilities
  
1,996,460
2,236,647

Provisions for liabilities
  

Restoration provision
 17 
(249,940)
(227,175)

  
 
 
(249,940)
 
 
(227,175)

Net assets
  
1,746,520
2,009,472


Capital and reserves
  

Called up share capital 
 18 
1
1

Profit and loss account
 19 
1,746,519
2,009,471

  
1,746,520
2,009,472


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 31 October 2023.





................................................
Mr N Skene
Director

The notes on pages 12 to 22 form part of these financial statements.
Page 9

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2022
1
2,009,471
2,009,472



Profit for the year
-
2,237,048
2,237,048

Dividends: Equity capital
-
(2,500,000)
(2,500,000)


At 30 June 2023
1
1,746,519
1,746,520


The notes on pages 12 to 22 form part of these financial statements.


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2022


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 July 2021
1
954,411
954,412



Profit for the year
-
2,055,060
2,055,060

Dividends: Equity capital
-
(1,000,000)
(1,000,000)


At 30 June 2022
1
2,009,471
2,009,472


The notes on pages 12 to 22 form part of these financial statements.

Page 10

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 JUNE 2023




At 1 July 2022
Cash flows
At 30 June 2023
£

£

£

Cash at bank and in hand

666,879

394,949

1,061,828


666,879
394,949
1,061,828

The notes on pages 12 to 22 form part of these financial statements.
Page 11

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

1.


General information

Skene Group Construction Services Limited is a private company, limited by shares, domiciled in Scotland, registration number SC204777. The registered office is Skene House, Viewfield Road, Viewfield Industrial Estate, Glenrothes, Fife, KY6 2RD.
The financial statements are presented in Sterling, which is the functional currency of the Company, and rounded to the nearest £.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

  
2.2

Financial reporting standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".
- the requirements of Section 7 Statement of Cash Flows;
- the requirements of  Section 11 Financial Instruments paragraphs 11.41(b), 11.41(c), 11.41(e), 11.41(f), 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
- the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 2.29(b) and 12.29A;
- the requirements of Section 33 Related Party Disclosures paragraph 33.7 
This information is included in the consolidated financial statements of SGH Investments Limited as at 30 June 2023 and these financial statements may be obtained from Companies House.
Page 12

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.3

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.4

Operating leases: the Company as lessee

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

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

 
2.5

Government grants

Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
During the prior year the Company was in receipt of the following revenue grant in relation to the Covid-19 pandemic:
Coronavirus Job Retention Scheme (CJRS) which is recognised when receivable.

Page 13

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

Defined contribution pension plan
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 in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Current and deferred taxation

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

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.

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

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

  
2.9

Restoration costs

When the Company is legally or contractually required to restore a quarry site the estimated costs of site restoration are accrued over the estimated operating life of the quarry on a site by site basis.
The Company estimates its total future costs requirements for these activities. The provisions have not been discounted as the effect of doing so would not be material.

Page 14

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.10

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

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

 
2.13

Creditors

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

 
2.14

Provisions for liabilities

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

 
2.15

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.

Page 15

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

2.Accounting policies (continued)

 
2.16

Dividends

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


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make several judgments and estimates. The most significant areas of estimation within the Company's financial statements relate to the timing of revenue recognition and valuation of stock and work in progress. The directors review the valuation methodology on a regular basis to ensure that the carrying value of stock and work in progress remains appropriate. Due consideration is given to amounts realised following the year end in relation to stock and work in progress included in the financial statements at the year end.
Included within the financial statements is a restoration provision relating to the Lomond and Soutra quarries, which represents an estimate of the amounts that would be required to be paid in order to discharge the Company's legal responsibilities in respect of the sites. 


4.


Turnover

The whole of the turnover is attributable to construction supplies and services.

Analysis of turnover by country of destination:

2023
2022
£
£

United Kingdom
28,294,578
25,412,910



5.


Other operating income

2023
2022
£
£

Government grants receivable
-
12,264

Page 16

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Fees payable to the Company's auditor and its associates for the audit of
the Company's annual financial statements
6,085
5,450

Other operating lease rentals
150,267
150,000

Defined contribution pension cost
171,707
162,979


7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
3,782,480
3,718,837

Social security costs
420,547
413,041

Cost of defined contribution scheme
171,707
162,979

4,374,734
4,294,857


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


        2023
        2022
            No.
            No.







Production staff
81
82



Administrative staff
9
9



Management staff
13
10

103
101


8.


Directors' remuneration

During the year, no directors received any remuneration.





9.


Interest receivable

2023
2022
£
£


Other interest receivable
-
1,148

Page 17

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

10.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
568,722
463,251

Adjustments in respect of previous periods
(40,663)
(82,922)


Total current tax
528,059
380,329

Deferred tax


Origination and reversal of timing differences
36
438

Changes to tax rates
-
(306)

Total deferred tax
36
132


Taxation on profit on ordinary activities
528,095
380,461

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 20.5% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
2,765,143
2,435,521


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 20.5% (2022 - 19%)
566,854
462,749

Effects of:


Expenses not deductible for tax purposes
2,011
835

Adjustments to tax charge in respect of prior periods
(40,663)
(82,922)

Change in tax rates leading to an increase (decrease) in taxation
(107)
(201)

Total tax charge for the year
528,095
380,461


Factors that may affect future tax charges

There was an increase in the UK corporation tax rate from 19% to 25% (effective from 1 April 2023) which was enacted in 2021. The 19% rate will continue to apply for companies with profits up to £50,000.

Page 18

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

11.


Dividends

2023
2022
£
£


Dividends paid on ordinary shares
2,500,000
1,000,000


12.


Stocks

2023
2022
£
£

Raw materials and consumables
208,948
207,514

Work in progress
963,730
866,385

1,172,678
1,073,899



13.


Debtors

2023
2022
£
£


Trade debtors
5,975,898
6,390,258

Prepayments and accrued income
408,154
320,118

Deferred taxation
799
835

6,384,851
6,711,211



14.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
1,061,828
666,879


Page 19

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

15.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
2,308,740
2,033,534

Amounts owed to group undertakings
2,481,586
2,239,713

Corporation tax
167,764
231,091

Other taxation and social security
679,838
711,502

Other creditors
563,462
553,200

Accruals and deferred income
421,507
446,302

6,622,897
6,215,342





16.


Deferred taxation




2023


£






At beginning of year
835


Charged to profit or loss
(36)



At end of year
799

The deferred tax asset is made up as follows:

2023
2022
£
£


Other timing differences
799
835

Page 20

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

17.


Provisions




Restoration provision

£





At 1 July 2022
227,175


Charged to profit or loss
22,765



At 30 June 2023
249,940

The provision for restoration costs relates to the Company's obligations to restore quarry sites.
The level of expenditure to be incurred in order to fulfill this obligation has been estimated based on experience of the Company and from calculations performed by external independent consultants.
The timing of this expenditure is dependent upon the rate of excavation and planning consents over a number of years.
The provision has increased during the year in the amount of £22,765 to reflect estimated costs accrued over the useful lives of the quarries operated by the Company.


18.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1 (2022 - 1) Ordinary share of £1.00
1
1



19.


Reserves

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.


20.


Pension commitments

The Company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £171,707 (2022 - £162,979). Contributions totalling £13,310 (2022 - £12,654) were payable to the fund at the balance sheet date and are included in creditors.

Page 21

 
SKENE GROUP CONSTRUCTION SERVICES LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023

21.


Commitments under operating leases

At 30 June 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
-
150,000

Later than 1 year and not later than 5 years
-
600,000

Later than 5 years
-
637,500

-
1,387,500

The Company no longer has any commitments under non-cancellable operating leases.


22.


Related party transactions

During the year the Company entered into the following transactions with other related parties:


2023
2022
£
£

Sales to other related parties other than group companies
7,200
7,500
Purchases from other related parties other than group companies
961,344
907,092
Rents paid to other related parties other than group companies
114,493
150,000
Net trading balances due from/(to) other related parties other than group companies
(367,121)
(366,281)




23.


Controlling party

The Company is 100% owned by SGH Investments Ltd, a company registered in England. Consolidated financial statements are prepared for SGH Investments Ltd. The registered office address is c/o Ashfords LLP, Ashford House, Grenadier Road, Exeter, EX1 3LH.


Page 22