REGISTERED NUMBER: |
O'BRIEN CONTRACTORS LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
REGISTERED NUMBER: |
O'BRIEN CONTRACTORS LIMITED |
STRATEGIC REPORT, |
REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Statement of Comprehensive Income | 9 |
Statement of Financial Position | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
O'BRIEN CONTRACTORS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 MARCH 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants and Statutory Auditors |
Celixir House |
Stratford Business and Technology Park |
Stratford-upon-Avon |
Warwickshire |
CV37 7GZ |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
The directors present their strategic report for the year ended 31 March 2023. |
BUSINESS OVERVIEW |
The background of this year's report has seen the business operate in challenging economic conditions with increased interest rates, high inflation for both material and labour costs and shortage of skilled labour. Despite these conditions the business has shown resilience and been able to grow it nets assets with a strong cash reserve. |
The business has seen first hand the impacts of the COVID-19 disruptions to the supply chain through direct costs (cost of sales), seeing an increase year on year of 51.8% (2023: £24.6m 2022: £16.3m) however the business has been able to withstand these unusual circumstances as seen with the continued profitability being made. |
HEALTH AND SAFETY |
Our goal is that everyone who encounters our activities, on or off site, goes home safe and well. Health and Safety is discussed at our Board Meetings with regular SHEQ meetings. |
Regular independent audits are made at each our sites and results are discussed to continually improve to make our workplaces a safe environment. |
FINANCIAL KEY PERFORMANCE INDICATORS |
The key performance indicators of the business are: |
2023 | 2022 |
Turnover growth | 60.1% | 25.7% |
Gross profit margin | 11.8% | (46.5%) |
PBT margin growth | 397.4% | (69.6%) |
Net assets growth | 2.4% | (0.08%) |
FINANCIAL PERFORMANCE |
The financial performance of O'Brien Contractors Limited remained strong during the year. Despite the challenging economic climate, our revenue increased by 60.1% compared to the previous year. This growth can be attributed to securing larger contracts and expanding our customer base. |
Furthermore, our profitability improved during the year due to a more stringent focus on costs of the business to ensure that cashflow of the business is maintained into the future. |
OUTLOOK FOR THE YEAR TO MARCH 2024 |
The challenging economic conditions referred to at the start of the report have continued and show little sign of improvement. |
The business is forecasting increased turnover and similar profit margins with focus on controlling cost and overheads. |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
STRATEGIC REPORT |
FOR THE YEAR ENDED 31 MARCH 2023 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Increased inflationary pressure on costs for the business |
Due to costs associated with projects being key to the actual profitability of the business, the inflation rate in the UK is deemed to be a key risk to the business. To mitigate this risk, the business looks to avoid locking into costs in contracts which are likely to result in losses being made. |
Cashflow availability in the business | The company keeps strong controls in place in regards to spending, having a procurement team who regularly assess costs for the business. Additionally, there is a company ethos in place to keep control of costs associated with projects along with assessing non-essential costs. |
Project management risks | The business assigns experienced employees who oversee the key departments of the business. This is completed so that costs are accurately judged, and pricing of contracts are appropriate for the business to continue to make profits along with ensuring that payment terms support the cashflow requirements of the business. |
ON BEHALF OF THE BOARD: |
3 November 2023 |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
REPORT OF THE DIRECTORS |
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. |
DIVIDENDS |
The total distribution of dividends for the year ended 31 March 2023 will be £1,762,315 (2022: £562,750). |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 April 2022 to the date of this report. |
DIRECTORS INDEMNITY INSURANCE |
Qualifying third party indemnity provision is in place for the benefit of all directors of the company. |
DISCLOSURE IN THE STRATEGIC REPORT |
As permitted by Paragraph 1A of schedule 7 to the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 certain matters which are required to be disclosed in the directors' report have been omitted as they are included in the strategic report on page 2. These matters relate to review of business, principal risks and uncertainties and future developments. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 and then apply them consistently; |
- | make judgements 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 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 AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 MARCH 2023 |
AUDITORS |
The auditors, Murphy Salisbury Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
O'BRIEN CONTRACTORS LIMITED |
Opinion |
We have audited the financial statements of O'Brien Contractors Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 March 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 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
O'BRIEN CONTRACTORS 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 or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, 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. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the 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 a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
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 |
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. |
Identifying and assessing potential risks related to irregularities |
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: |
- the nature of the industry and sector, control environment and business performance including the design of the Company remuneration policies, key drivers for directors' remuneration, bonus levels and performance targets; |
- results of our enquiries of management about their own identification and assessment of the risks of irregularities; |
- any matters we identified having obtained and reviewed the Company documentation of their policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; |
- the matters discussed among the audit engagement team and involving relevant internal specialists, including tax specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
O'BRIEN CONTRACTORS LIMITED |
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to amounts recoverable on contracts. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. |
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK Corporate Governance Code and local tax legislation. |
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company's ability to operate or to avoid a material penalty. These included compliance with Financial Conduct Authority regulation for the UK operating segment and GDPR regulation. |
Audit response to risks identified |
As a result of performing the above, we identified valuation of amounts recoverable from contracts as a key audit risk related to the potential risk of fraud. |
Our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements; |
- enquiring of management of actual and potential litigation and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; reading minutes of meetings of those charged with governance, reviewing internal reports; |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants and Statutory Auditors |
Celixir House |
Stratford Business and Technology Park |
Stratford-upon-Avon |
Warwickshire |
CV37 7GZ |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
STATEMENT OF COMPREHENSIVE |
INCOME |
FOR THE YEAR ENDED 31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ |
REVENUE | 3 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
2,233,359 | 482,448 |
Other operating income |
OPERATING PROFIT | 5 |
Interest receivable and similar income |
2,244,346 | 486,621 |
Interest payable and similar expenses | 6 |
PROFIT BEFORE TAXATION |
Tax on profit | 7 |
PROFIT FOR THE FINANCIAL YEAR |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
STATEMENT OF FINANCIAL POSITION |
31 MARCH 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Property, plant and equipment | 9 |
Investments | 10 |
CURRENT ASSETS |
Inventories | 11 |
Debtors | 12 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 13 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 14 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Retained earnings | 20 |
SHAREHOLDERS' FUNDS |
The financial statements were approved and authorised for issue by the Board of Directors and authorised for issue on |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 MARCH 2023 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2021 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 31 March 2023 |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2023 |
1. | STATUTORY INFORMATION |
O'Brien Contractors Limited is a |
2. | ACCOUNTING POLICIES |
Statement of compliance |
O'Brien Contractors Limited are civil engineering contractors and provide related services. |
The financial statements have been prepared in accordance with Financial Reporting Standard 102 ''The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention. |
Basis of preparing the financial statements |
These financial statements have been prepared on a going concern basis, under the historical cost convention and are prepared in sterling which is the functional currency of the company. |
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 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 paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c). |
Preparation of consolidated financial statements |
The financial statements contain information about O'Brien Contractors Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, O'Brien Holdings 2020 Limited, Manor Cottage, Church Lane, Cubbington, Leamington Spa, CV32 7JT. |
Judgements and key sources of estimation uncertainty |
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. |
Useful economic lives of property, plant and equipment |
The annual depreciation charge for property, plant and equipment is sensitive to changes in estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended where necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets. |
Impairment of trade receivables |
The company makes an estimate of the recoverable amount of trade and other debtors. When assessing impairment of trade and other receivables, management considers factors including the credit rating of the receivable, the ageing profile of receivables and historical experience. |
Accounting for construction contracts |
The company makes estimates of the total selling price and costs to complete on construction contracts. Further details are set out in the accounting policies below. |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Revenue recognition |
Revenue is recognised to the extent that the company obtains the right to consideration in exchange for its performance. Revenue is measured at the fair value of the consideration received, stated net of discounts and Value Added Tax. |
Construction Contracts |
When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately. |
Where the outcome of a construction contract cannot be estimated reliably, contract costs are recognised as expenses in the period in which they are incurred and contract revenue is recognised to the extent of contract costs incurred where it is probably that they will be recoverable. |
The "percentage of completion method" is used to determine the appropriate amount to recognise in a given period. The stage of completion is assessed by reference to surveys of work performed. Costs incorrect in the year in connection with future activity on a contract are excluded from contract costs in determining the stage of completion. These costs are presented as stocks, prepayments or other assets depending on their nature, and provided they will be recovered. |
Construction contract debtors are presented as part of debtors in the statement of financial position. If payments received from customers exceed the income recognised, then the difference is presented as accruals and deferred income in the statement of financial position. |
Property, plant and equipment |
Portable office | - |
Plant and machinery | - |
Computer and office equipment | - |
Motor vehicles | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Inventories |
Inventories are stated at the lower of cost and net realisable value. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Assets held under finance leases, which are leases where substantially all the risks and rewards of ownership of the assets have passed to the company, and hire purchase contracts are capitalised in the balance sheet and are depreciated over the shorter of the lease term and the asset's useful lives. A corresponding liability is recognised for the lower of fair value of the leased asset and the present value of the minimum lease payments in the balance sheet. Lease payments are apportioned between the reduction of the lease liability and finance charges in the income statement so as to achieve a constant rate of interest on the remaining liability. |
Rentals payable under operating leases are charged to in the statement of comprehensive income on a straight line basis over the lease term. Lease incentives are recognised over the lease term on a straight line basis. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. The contributions are recognised as an expense when they are due. Amounts not paid are shown in other creditors in the statement of financial position. |
Grants |
Grants received are credited to the profit and loss account in the same period as the related expenditure. Grants received in respect of asset purchases are included in deferred income and credited to the profit and loss account over the expected useful life of the asset concerned. |
Investments |
Investments are valued at fair value. |
Holiday pay |
Holiday pay is recognised as an expense in the period in which the service is received. |
3. | REVENUE |
The revenue and profit before taxation are attributable to the one principal activity of the company. |
An analysis of revenue by class of business is given below: |
2023 | 2022 |
£ | £ |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
3. | REVENUE - continued |
An analysis of revenue by geographical market is given below: |
2023 | 2022 |
£ | £ |
United Kingdom |
All revenue incurred is in relation to construction contracts |
4. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,944,340 | 1,606,340 |
Social security costs | 183,305 | 173,651 |
Other pension costs | 39,500 | 39,395 |
2,167,145 | 1,819,386 |
The average monthly number of employees during the year was as follows: |
2023 | 2022 |
Directors | 5 | 5 |
Administration | 6 | 7 |
Construction and site management | 23 | 23 |
34 | 35 |
2023 | 2022 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
5. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) | ( |
) |
Audit |
Operating lease - rent |
Operating lease - other |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank interest |
Hire purchase |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | ( |
) |
Over provision in earlier year | (103,263 | ) | (31,940 | ) |
Total current tax | ( |
) | ( |
) |
Origination and reversal of timing differences |
Tax on profit |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
7. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax |
Profit multiplied by the standard rate of corporation tax in the UK of (2022 - |
Effects of: |
Expenses not deductible for tax purposes |
Capital allowances in excess of depreciation | ( |
) | ( |
) |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Superdeduction adjustment | (129,651 | ) | (66,088 | ) |
Accelerated capital allowances/deferred tax | 285,469 | 117,319 |
Deferred tax movement re increase in CT rate | 69,170 | 128,224 |
Other deferred tax | (1,447 | ) | 53,527 |
Utilisation of group relief | (6,309 | ) | - |
Other timing differences | (45 | ) | - |
Total tax charge | 311,376 | 141,994 |
The deferred tax liability at 31 March 2022 has been calculated based on the rate of |
25% substantively enacted during the year. |
Deferred tax |
The deferred tax included in the company balance sheet is as follows: |
2023 | 2022 |
£ | £ |
Accelerated capital allowances | 1,006,227 | 651,588 |
1,006,227 | 651,588 |
Deferred tax in the statement of comprehensive income |
2023 | 2022 |
£ |
Accelerated capital allowances | 354,639 | 245,543 |
354,639 | 245,543 |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
8. | DIVIDENDS |
2023 | 2022 |
£ | £ |
'A' Ordinary shares of £1 each | 1,311,000 | 151,250 |
'B' Ordinary shares of £1 each | 127,519 | 154,000 |
'C' Ordinary shares of £1 each | 117,036 | 89,000 |
'D' Ordinary shares of £1 each | 89,724 | 79,500 |
'E' Ordinary shares of £1 each | 117,036 | 89,000 |
1,762,315 | 562,750 |
9. | PROPERTY, PLANT AND EQUIPMENT |
Computer |
and |
Portable | Plant and | office | Motor |
office | machinery | equipment | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 April 2022 |
Additions |
Disposals | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
DEPRECIATION |
At 1 April 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
The net book value of tangible fixed assets includes £3,449,582 (2022: £2,783,197) and depreciation charge for the year of £ 487,449 (2022: £1,375,197) in respect of assets held under hire purchase contract. |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
10. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST OR VALUATION |
At 1 April 2022 |
and 31 March 2023 |
NET BOOK VALUE |
At 31 March 2023 |
At 31 March 2022 |
Cost or valuation at 31 March 2023 is represented by: |
Shares in |
group |
undertakings |
£ |
Cost | 100 |
The company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
Registered office: Manor cottage Church Lane Cubbington, Warwickshire CV32 7JT |
Nature of business: |
% |
Class of shares: | holding |
2023 | 2022 |
£ | £ |
Aggregate capital and reserves |
11. | INVENTORIES |
2023 | 2022 |
£ | £ |
Stock and work in progress |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
12. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Amounts owed by group undertakings |
Amounts recoverable on contracts |
Other debtors |
Amounts due from related |
companies | 3,782 | 2,584 |
Tax |
Prepayments |
13. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans and overdrafts (see note 15) |
Hire purchase contracts (see note 16) |
Trade creditors |
Amounts owed to group undertakings |
Social security and other taxes |
VAT | 487,823 | 381,302 |
Other creditors |
Accruals | 33,740 | 86,129 |
Directors' current accounts | 94,107 | - |
14. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Bank loans (see note 15) |
Hire purchase contracts (see note 16) |
15. | LOANS |
An analysis of the maturity of loans is given below: |
2023 | 2022 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
15. | LOANS - continued |
2023 | 2022 |
£ | £ |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year |
Between one and five years |
The finance leases relate to plant, machinery and motor vehicles. These finance leases have an average duration of 3 years. |
The operating lease relate to property and motor vehicles. The motor vehicle leases have an average duration of 3 years and property of 5 years. Only the property lease agreement contains an option for renewal. There are no restrictions placed upon the lessee by entering into these leases. |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
2023 | 2022 |
£ | £ |
Hire purchase contracts | 1,915,958 | 988,260 |
The hire purchase contracts are secured over the specific assets financed. |
National Westminster Bank PLC holds a fixed and floating charge over the company and its assets. |
18. | PROVISIONS FOR LIABILITIES |
2023 | 2022 |
£ | £ |
Deferred tax | 1,006,227 | 651,588 |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
18. | PROVISIONS FOR LIABILITIES - continued |
Deferred |
tax |
£ |
Balance at 1 April 2022 |
Movement in year | 285,469 |
Increase in CT rate to 25% | 69,170 |
Balance at 31 March 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | £1 | 1,099 | 1,099 |
Allotted, issued and fully paid: |
Number: | Class: | Nominal value: | 2023 | 2022 |
£ | £ |
990 | 'A' Ordinary | £1 | 990 | 990 |
10 | 'B' Ordinary | £1 | 10 | 10 |
33 | 'C' Ordinary | £1 | 33 | 33 |
33 | 'D' Ordinary | £1 | 33 | 33 |
33 | 'E' Ordinary | £1 | 33 | 33 |
1,099 | 1,099 |
Rights of shares |
The ordinary shares have a right to vote, a right to participate in dividends and the right to participate in a distribution on a wind up. |
20. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2022 |
Profit for the year |
Dividends | ( |
) |
At 31 March 2023 |
21. | PENSION COMMITMENTS |
The cost to the company during the year was £41,199 (2022: £39,395). The outstanding contributions payable at the 31 March 2022 amounted to £5,063 (2022: £nil). |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
22. | CONTINGENT LIABILITIES |
On 29 November 2021, the company entered into a performance guarantee bond in favour of Old Saltleians Rugby Football Club Limited of £592,274. |
On 9 November 2022, the company entered into a performance guarantee bond in favour of St Modwen Development Limited of £161,759. |
On 30 November 2022, the company entered into a performance guarantee bond in favour of Fairham Pastures Developments Limited of £470,405. |
23. | RELATED PARTY DISCLOSURES |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
O'BRIEN CONTRACTORS LIMITED (REGISTERED NUMBER: 03020925) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 MARCH 2023 |
23. | RELATED PARTY DISCLOSURES - continued |
The following companies form part of the group, but as O'Brien Contractors Limited is not a wholly owned subsidiary within the group disclosure is required: |
2023 | 2023 | 2022 | 2022 |
Profit | Profit |
& Loss | Balance | & Loss | Balance |
Income / | Sheet Asset / | Income / | Sheet Asset / |
(Expense £ | ) | (Liability £ | ) | (Expense £ | ) | (Liability £ | ) |
O'Brien Group Limited | - | 339,371 | - | 284,795 |
O'Brien Developments Limited | 986,577 | 911,746 | - | (1,793 | ) |
The following companies are related by virtue of common control by the directors. |
2023 | 2023 | 2022 | 2022 |
Profit | Profit |
& Loss | Balance | & Loss | Balance |
Income / | Sheet Asset / | Income / | Sheet Asset / |
(Expense £ | ) | (Liability £ | ) | (Expense £ | ) | (Liability £ | ) |
Southam Developments Limited | - | 821 | - | 781 |
O'Brien Developments Dartmouth Waterside Limited |
- |
2,303 |
- |
1,803 |
During the year O'Brien Contractors entered into purchases of £nil (2022: £nil) with O'Brien Charitable Trust a charity under common control by the directors of O'Brien Contractors Limited. At the year end O'Brien Charitable Trust owed the company £659 (2022: £260). |
At the year end there was a balance of £1,817 owed to a director of the Company in respect of an expense claim raised in the year. |
24. | ULTIMATE CONTROLLING PARTY |
O'Brien (Group) Limited is the immediate parent company by virtue of owning 90.1% of the company's share capital. |
The ultimate parent undertaking and controlling entity is O'Brien Holdings 2020 Limited, a company registered in England and Wales. Copies of the group financial statements are available from Manor Cottage, Church Lane, Cubbington, Leamington Spa, CV32 7JT. |