Registration number:
Coleman & Company Limited
for the Year Ended 30 April 2023
Coleman & Company Limited
Contents
Company Information |
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Strategic Report |
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Directors' Report |
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Statement of Directors' Responsibilities |
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Independent Auditor's Report |
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Profit and Loss Account |
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Statement of Comprehensive Income |
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Balance Sheet |
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Statement of Changes in Equity |
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Notes to the Financial Statements |
Coleman & Company Limited
Company Information
Directors |
Mr M A Coleman Ms L Morris Mr M A Carless Mr G Rowe Mr G Blaszczak Mr B A Bradshaw |
Company secretary |
Ms L Morris |
Registered office |
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Solicitors |
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Bankers |
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Auditors |
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Coleman & Company Limited
Strategic Report for the Year Ended 30 April 2023
The directors present their strategic report for the year ended 30 April 2023.
Principal activity
A third-generation family business celebrating 60 years of trading, Colemans have been at the forefront of market-leading, innovative changes in the demolition and wider construction sector.
We combine a highly skilled, experienced team with innovative processes and the latest technology to deliver an integrated portfolio of services fit for the present and designed for the future.
These services span demolition and deconstruction, land remediation, specialist cutting and engineered solutions – delivered worldwide, all with a focus on safety, sustainability and quality.
Customers include everyone from multinational companies to public sector organisations and individual developers, with a great emphasis on collaboration to make sure Colemans is successful in all activities.
Our specialist services are globally recognised by clients, competitors and others within the industry, including the wider construction sector. Thanks to a collaborative approach and integrated solutions, Colemans have built a reputation for delivering the most complex and challenging projects in some of the most high-risk environments.
Fair review of the business
Colemans is part of a resilient group, trading at a healthy profit margin.
The company has had a successful trading period, growing turnover by 18% to continue our trajectory towards sustainable growth and returning a net profit before tax of £76,000. Given the existing pipeline of work, the directors consider the current profit margin to be sustainable.
60th anniversary
In October 2022 we celebrated the 60th anniversary of incorporation, representing a significant milestone for the business. As part of our anniversary celebrations, we raised over £30,000 through fundraising activities, which the business doubled so we could donate over £60,000 to our nominated charity SIFA Fireside, the main day centre facility supporting people experiencing homelessness in Birmingham. We have a long relationship with SIFA Fireside dating back to the 1960s when our co-founder Norah Coleman lived next door to SIFA’s founder, Sister Sabina.
Rebrand and website
The 60th anniversary was also the catalyst to launch the new Colemans brand and website as part of a £60,000 investment to reinvigorate our external branding with a bold and fresh new look. We have been delighted with the initial reaction.
One of the most pleasing things has been the way in which people have identified with some of the reasons behind the rebrand, from our proud Irish roots to the friendly, personal approach that underpins the way we do business. Here is the reasoning behind the rebrand in a bit more detail.
• A green business with roots on the Emerald Isle: Switching to green for our main corporate colour was a conscious decision that not only promotes our focus on environmental performance and improvement but reinforces our proud Irish roots too. John and Norah Coleman moved from Ireland to Birmingham before setting up the business in 1962 and the Coleman family still sees Ireland as its spiritual home.
Coleman & Company Limited
Strategic Report for the Year Ended 30 April 2023
• A more informal name: The most significant change has been to switch from The Coleman Group to simply ‘Colemans’, better reflecting the personal approach and family values that shape our business. We’re a people-first organisation, placing great emphasis on relationships and wellbeing - a long way from the corporate entity that our old name suggested.
• A nod to our recent past: The red full stop in the new Colemans logo also maintains some consistency with the red in our previous Coleman & Co logo, designed by our previous Chairman, David Coleman.
• A company you can trust: Many have also noticed the connected letters C and O in the Colemans logo - not only the first two letters of our name, but also leading into some of our customer working styles too. A leading contractor that really focuses on collaboration and coworking.
As we close the year on our 60th Anniversary celebrations, we are pleased to have received four industry awards:
• British Demolition Awards 2023
1. Award for the best project of the year under £1m
2. Award for Environmental Innovation
• World Demolition Awards 2023
1. Award for Recycling and Environmental
2. The prestigious “Best of the Best” award, which was in recognition of our pioneering approach to the circular economy.
To be recognised, both at home and globally, for our work in mitigating environmental impacts was a very proud achievement, and was doubly well received as the World Demolition Awards coincided with the day Mark Coleman celebrated 30 years’ service with the company.
Financial stability
The company is financially stable with no borrowings, the lowest gearing (zero) of any demolition contractor in the UK.
This was made possible by a series of strategic decisions, notably a new approach to plant management, a commitment to support the environment and a continued focus on our people - all of which sets us apart from competitors and delivers significant benefits for customers.
Throughout challenging times, we have maintained focus on project delivery control, selective tendering, cash management and disciplined cost containment. We work closely with clients, partners, suppliers, communities and other stakeholders to collaboratively deliver the best possible results on each individual project.
We have built strong relationships with suppliers, and we now outsource heavy plant and equipment, working only with market leaders in their respective fields. This strategy means we can source the most up-to-date, environmentally friendly and technically advanced equipment for all projects.
We are proud to be delivering results today whilst taking steps to make improvements for the future, always looking forward to support people and the planet.
Coleman & Company Limited
Strategic Report for the Year Ended 30 April 2023
Circular economy and sustainability
In the last 12 months we have continued to develop our circular economy approach, taking steps to enable materials re-use and drive carbon reduction under our wider sustainability strategy.
By maintaining or improving the value of materials, products or components, we help clients to unlock value where previously there was only cost. Making material streams accessible, functional and attractive, we’re enabling buildings to be disassembled the lowest possible resource use, minimal contamination and without loss of quality.
This approach is made possible by having a detailed knowledge of circular materials and an intimate understanding of supply chains. We have built partnerships with a range of manufacturers and technology providers to help manage material flows by supplying positive circular materials, facilitating waste material upcycling and building inventories of existing assets to enable them for circular re-use.
We have invested £45,000 in the latest 3D scanning hardware and software that allows us to scan structures, itemise material inventory and provide our clients with an inventory of 'reusable' products prior to design. The creation of an 'inventory' is the first step in creating a compliant, traceable 'material passport' for the reusable building materials that aligns with stringent UK and EU legal requirements when designing for deconstruction and adaptive reuse. It also increases yields by supporting the development of healthy, low carbon and flexible buildings that are more attractive, viable assets for occupiers.
Through genuine industry collaboration, we are also developing a positive change in sustainable carbon engineered solutions - identifying genuine opportunities for reuse and recycling to enhance the environmental performance of our activities. We have built a strategy to reduce the environmental impact of our activities, incorporating a holistic approach across plant, travel, recycling and more. The Board have set a target to achieve net zero and we are confident that we will reach this target by 2025.
Health and wellbeing
With a focus on physical and mental wellbeing across the entire organisation, Colemans is committed to our people. We have developed a structured programme of training and development together with wellbeing, reward and recruitment initiatives that give our teams the platform to succeed.
As well as regulatory compliance, we continue our focus on operational compliance and audit through investment in our Integrated Management System and the tools and systems which allow it to be implemented across the business. We believe we remain uniquely positioned to deliver the most complex schemes to the highest standards.
Outlook
Our objective is to drive continuous improvement in delivering a better service for our clients and building stronger relationships for collaboration. In doing so, we have created a business that can better withstand economic headwinds.
Colemans continues to apply strong risk management procedures at a corporate and project level to ensure we select the right projects that will deliver the expectations of our clients and stakeholders.
Coleman & Company Limited
Strategic Report for the Year Ended 30 April 2023
Key performance indicators
The group has developed an internal culture of key performance measures in order to monitor and continually improve management, objectivity and efficiencies at all levels.
Non-financial KPIs
We have set targets for continued reduction in health and safety incident rates. Incidents are reviewed at business board meeting level, together with incident rate statistics, near misses and trend analysis
to assist with prevention of future incidents.
Strategic plans, considered and implemented by the board, are designed to ensure the company maintains the highest standard of business conduct.
The company continues to advance training and professional development programmes for all employees, ensuring resilience from the industry skills shortage.
Financial risk management
Target |
30 April 2023 |
6m to 30 April 2022 |
|
Turnover |
12,287,198 |
10,416,296 |
|
Gross profit margin |
18% |
23% |
27% |
Profit / (Loss) before tax ratio |
5% |
1% |
5% |
Coleman & Company Limited
Strategic Report for the Year Ended 30 April 2023
Principal risks and uncertainties
Economic risk:
Market uncertainties, exacerbated by global socio-political, economic events and changes in the economic environment, government policy and regulatory developments, including how the UK economy responds and adapts to the global events like military conflicts or regional economic disruption, can have a significant impact on new projects and the group’s profitability.
Act of force majeure, including COVID-19 pandemic and extreme weather events could have operational and financial impact on the business.
Safety risk:
The safe delivery of services is of paramount importance to us, with project appraisals considering risk analysis, buildability, value engineering, programme and logistics. The group is embracing digital technologies to drive continuous improvements in sustainability, efficiency and quality. We use the latest interactive technology in a common data environment to design detailed methodologies, reduce the risk of design errors and enhance project communication. However, while risks are minimised to the greatest possible extent, it remains the case that some of the activity is by its nature high risk.
Environmental risks:
As a responsible contractor, Colemans’ focus is on using innovative technologies and developing new ways of working that can reduce the environmental risk of our operations.
We are committed to progress and transparency, working safely and in collaboration with clients to help them on their net zero journey as we pursue our own. This includes developing environmentally friendly and less aggressive alternatives to the traditional methods of demolition, supported by outsourcing plant and equipment to enable the most appropriate and energy efficient plant and equipment for each individual project (e.g. electric powered).
Colemans is a proud member of the SME Climate Hub, a global initiative that empowers small to medium sized companies to take climate action and build more resilient businesses. We have also committed to PAS 2060 accreditation which will be in place by 2025.
We have invested heavily in market leading initiatives and are working with specialist Carbon Reduction Accountants to support our ambitious focus. As a result, we are confident of achieving net zero by 2025, well ahead of our target.
We recognise the need to educate our people and build strategies to deliver our ambitions, which must be well thought through, clear and enabled by effective communication along with external auditing.
Legislation:
The business has a strong focus on organisational design and accountabilities, which has supported the development of consistent processes and procedures, clear governance around key business decisions and the evolution of a strong compliance culture.
Coleman & Company Limited
Strategic Report for the Year Ended 30 April 2023
Competition risk:
The sector is dynamic and in a state of constant evolution, but the directors believe that the group's focus on quality, innovation and on maintaining excellent stakeholder relationships are strong mitigating factors against the risks posed by competitors. The business has a number of framework agreements which reduces competition. The company has robust procedures in place to eliminate anti-competitive practices.
Contingent liabilities:
There continues to be an uncertainty in relation to a non-concluded enquiry into an incident 7 years ago, for which no further correspondence has been received from external authorities, as detailed in the notes to the financial statements.
Data security risk:
A loss of our key systems through a lack of resilience or an information break or attack threat would impact the successful delivery of projects and lead to loss of confidential data, damaging our reputation and brand. The group invests in appropriate IT solutions to combat this. Penetration tests have been carried out with an assessment of our data security which found that our data security is secure. Although we recognise continual investment in this area to ensure we maintain this high standard.
Financial risks:
The directors of the group continually monitor the risks and uncertainties facing the group with particular reference to price, liquidity and credit risks. They are confident that there are suitable policies in place and there are no material risks and uncertainties which have not been considered.
The company uses various financial instruments which include cash, trade debtors and trade creditors that arise from its operations. The main purpose of these financial instruments is to manage our daily operations.
Interest rate risk:
The company is not directly affected by interest rate rises as it has eliminated borrowings from financial institutions from its business model. However, this may have an indirect effect upon the business if this impacts activity in the construction industry as a whole.
Currency risk
Colemans makes very few transactions in foreign currencies so the exposure to translation and foreign exchange currency risk and do not consider this to have a significant impact on its operations.
Credit risk
Our principal credit risk arises arises around trade debts. In order to manage credit risk the directors review debt aging on a regular basis to ensure debts are collected are received in line with agreed credit terms.
Liquidity risk
The company manages its financial risk by closely monitoring its working capital requirements and ensuring sufficient liquidity is available to meet foreseeable needs.
Coleman & Company Limited
Strategic Report for the Year Ended 30 April 2023
Objectives & Policies
The company has robust business ethics, regulatory compliance, training for all staff on modern slavery, anti-bribery and corruption, and competition law, with enhanced training for those who fulfil high-risk roles.
Our policy is to establish and maintain long term strategic relationships where both parties’ interests are aligned to deliver mutual benefit.
Colemans is committed to our people and has built initiatives to support the physical and mental wellbeing of our people. We have developed a structured programme of training and development together with wellbeing, reward and recruitment initiatives that give our teams the platform to succeed.
The company continues to invest in our highly experienced and qualified staff and to engage with our professional subcontract supply chain to provide the services to all our clients.
By virtue of our breadth of activities we are well placed to recover, or harvest reusable materials, and have done so extensively. We have engaged with partners on take-back schemes to increase re-use and reduce waste of building materials from fixtures, fittings and structural steel work and precast concrete sections.
Our ESG (Environmental, Social and Governance) commitment is further supported by the continued development of lower carbon activities and resource optimization. Examples include the use of electric-powered plant, new methodologies that reduce water usage, increased use of digital resources to minimise travel and a continued commitment to recycling across all sites and offices.
Against a backdrop of macroeconomic uncertainty, we are focused on maintaining a strong cash position, low gearing - no debt, controlling costs and securing margin enhancing work in target markets to deliver greater certainty and value to all our stakeholders.
We are concentrating on delivering projects throughout the Midlands and London geographical areas and beyond, driving certainty for clients through value-led solutions rather than the race to the bottom, which is characterised by low margins and high-risk contracting, where understanding how to deliver on contracted commitments is an afterthought. These behaviours continue to plague our industry and remain entirely unsustainable.
In contrast, our activities are driven firstly by delivering a profitable performance and then focused on the scale of the turnover. We focus on being value-led, efficient and dependable rather than with an obsession for scale. We can do this because we understand our own value proposition and strive to deliver projects that are aligned with it.
Approved and authorised by the
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Coleman & Company Limited
Directors' Report for the Year Ended 30 April 2023
The directors present their report and the financial statements for the year ended 30 April 2023.
Directors of the company
The directors who held office during the year were as follows:
Information included in the Strategic Report
Strategic plans, considered and implemented by the board, are designed to ensure the group maintains the highest standard of business conduct.
Please refer to the strategic report on Page 2 regarding the financial overview, key performance indicators and principal risks and uncertainties.
Disclosure of information to the auditors
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.
Approved and authorised by the
......................................... |
Coleman & Company Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
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.
Coleman & Company Limited
Independent Auditor's Report to the Members of Coleman & Company Limited
Opinion
We have audited the financial statements of Coleman & Company Limited (the 'company') for the year ended 30 April 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, 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 30 April 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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Coleman & Company Limited
Independent Auditor's Report to the Members of Coleman & Company Limited
Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and 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 our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | 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 10], 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 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.
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.
Coleman & Company Limited
Independent Auditor's Report to the Members of Coleman & Company Limited
We focussed on laws and regulations which could give rise to 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 statements disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel where considered necessary. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from 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 of journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatements due to fraud. |
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Audit response to risks identified:
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A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s 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.
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For and on behalf of
29 Wood Street
Warwickshire
CV37 6JG
Coleman & Company Limited
Profit and Loss Account for the Year Ended 30 April 2023
Note |
30 April |
30 April |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
70,112 |
338,054 |
|
Other interest receivable and similar income |
|
|
|
Interest payable and similar expenses |
( |
( |
|
89,978 |
122,792 |
||
Profit before tax |
|
|
|
Tax on profit |
|
|
|
Profit for the financial year |
|
|
The above results were derived from continuing operations.
The company has no recognised gains or losses for the year other than the results above.
Coleman & Company Limited
Statement of Comprehensive Income for the Year Ended 30 April 2023
30 April |
30 April |
|
Profit for the year |
|
|
Total comprehensive income for the year |
|
|
Coleman & Company Limited
(Registration number: 00737922)
Balance Sheet as at 30 April 2023
Note |
30 April |
30 April |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Other financial assets |
31,409 |
31,409 |
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets |
|
|
|
Total assets less current liabilities |
|
|
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
4,224 |
4,224 |
|
Share premium reserve |
22,455 |
22,455 |
|
Retained earnings |
4,970,142 |
4,766,244 |
|
Shareholders' funds |
4,996,821 |
4,792,923 |
Approved and authorised by the
......................................... |
Coleman & Company Limited
Statement of Changes in Equity for the Year Ended 30 April 2023
Share capital |
Share premium |
Retained earnings |
Total |
|
At 1 May 2022 |
|
|
|
|
Profit for the year |
- |
- |
|
|
At 30 April 2023 |
|
|
|
|
Share capital |
Share premium |
Retained earnings |
Total |
|
At 1 May 2021 |
|
|
|
|
Profit for the year |
- |
- |
|
|
Dividends |
- |
- |
( |
( |
At 30 April 2022 |
|
|
|
|
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
These financial statements were authorised for issue by the
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
The financial statements are prepared in Sterling which is the functional currency of the company and rounded to the nearest £1.
Summary of disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
- the requirements of Section 4 Statement of Financial Position paragraph 4.12(a)(iv);
- the requirements of Section 7 Statement of Cash Flows;
- the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
- 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), 11.8(b) and 11.8(c);
- the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A; and
- the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of CNC Group Holdings Limited as at 30 April 2023 and these financial statements may be obtained from Shady Lane, Great Barr, Birmingham, B44 9ER.
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Key sources of estimation uncertainty
Long term contracts
Income is recognised based on costs incurred to date as a percentage of the total expected costs on the contract, which is deemed best estimate of the stage of completion of each project. Provisions have been made on contracts where there are disputes, damages or foreseeable losses. Losses are provided in full in the period the foreseeable loss is identified. The carrying amount is £1,619,156 (2022 -£839,078).
Research and development provisions
Provision has been made in the financial statements for the total claim expected to be received relating to research and development expenditure during the year.
Fixed asset depreciation
Fixed assets are depreciated over their useful economic lives to an estimated residual value. Residual values are calculated using the best estimate of our assets value at the end of its useful life.
Incident investigation
There is an ongoing investigation into an incident on a major contract, the outcome of which is uncertain. This is detailed in the contigent liabilities note to the financial statements.
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable excluding value added tax. The following criteria must also be met before revenue is recognised:
Long term contracts
The Group enters into long term contracts and projects and recognises revenue and costs associated with the contract using the percentage of completion method.
Percentage of completion is determined by comparing the proportion of costs incurred for work performed to date against the estimated total costs. Costs incurred for work performed to date do not include costs relating to future activity, such as prepayments. Costs relating to such future activity are recognised as an asset only if it is probable that such costs will be recovered. Where the recovery of such costs is not probable then an expense is recognised immediately.
Management recognise revenue and profits from the start of the project. Costs are included based on best estimate.
Regular contract reviews are performed by seniors and project management support the process.
Where it is probable that contract costs will exceed total contract revenue the expected loss is recognised immediately.
Scrap income
Revenue from scrap income is recognised at the point of sale. However, where scrap forms a material proportion of the total value of a contract the anticipated value of scrap is used in calculating the attributable value of the contract.
Retention Income
Revenue from retentions is recognised as they become payable by the customer.
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Government grants
Grants are accounted for under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the Statement of Comprehensive Income at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Finance income and costs policy
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
Finance costs are charged to the Statement of Comprehensive Income 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.
All borrowing costs are recognised in the Statement of Comprehensive Income in the period in which they are incurred.
Research and development
Research and development expenditure is written off in the year in which it is incurred, unless it meets the criteria for capitalisation.
Where corporation tax losses have been surrendered, research and development credits are treated as grant income and are included in administration costs.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
The current income 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 taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Improvements to leasehold property |
2% straight line |
Plant and machinery |
10% - 20% straight line |
Office equipment and furniture |
10% - 20% straight line |
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Computer software |
3 years straight line |
Impairment of fixed assets and goodwill
Assets that are subject to depreciation or amortisation are assessed at each balance sheet date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGU's). Non-financial assets that have been previously impaired are reviewed at each balance sheet date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Trade debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell, the impairment loss is recognised immediately in the profit or loss.
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.
Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.
Provisions
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 the Statement of Comprehensive Income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Dividends
Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Financial instruments
Preference shares are measured at fair value with changes recognised in the profit and loss account if the shares are publicly traded or their fair value can otherwise be measured reliably.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of cash or other consideration expected to be paid or received.
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Statement of Comprehensive Income.
Turnover |
The analysis of the company's turnover for the year from continuing operations is as follows:
30 April |
30 April |
|
Sale of services |
|
|
Other revenue |
|
|
|
|
The amount of contract revenue recognised as turnover in the year was £
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Other operating income |
The analysis of the company's other operating income for the year is as follows:
30 April |
30 April |
|
Government grants |
- |
|
Miscellaneous other operating income |
|
|
|
|
Operating profit |
Arrived at after charging/(crediting)
30 April |
30 April |
|
Depreciation expense |
|
|
Other interest receivable and similar income |
30 April |
30 April |
|
Interest income on bank deposits |
- |
|
Other finance income |
|
|
|
|
Interest payable and similar expenses |
30 April |
30 April |
|
Interest on bank overdrafts and borrowings |
- |
|
Interest on preference shares |
- |
|
Interest expense on other finance liabilities |
|
|
|
|
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
30 April |
30 April |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
30 April |
30 April |
|
Production |
|
|
Administration and support |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
30 April |
30 April |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
571,597 |
660,387 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
30 April |
30 April |
|
Accruing benefits under money purchase pension scheme |
|
|
In respect of the highest paid director:
30 April |
30 April |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
- |
|
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Auditors' remuneration |
30 April |
30 April |
|
Audit of the financial statements |
|
|
Taxation |
Tax charged/(credited) in the profit and loss account
30 April |
30 April |
|
Current taxation |
||
UK corporation tax |
( |
( |
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
- |
Tax receipt in the income statement |
( |
( |
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2022 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
30 April |
30 April |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
|
( |
Tax decrease from effect of capital allowances and depreciation |
( |
( |
Tax decrease arising from group relief |
( |
( |
Tax decrease from effect of adjustment in research and development tax credit |
( |
( |
Total tax credit |
( |
( |
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Deferred tax
Deferred tax assets and liabilities
2023 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
- |
|
2022 |
Asset |
Liability |
Accelerated capital allowances |
- |
|
- |
|
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Intangible assets |
Other intangible assets |
Total |
|
Cost or valuation |
||
At 1 May 2022 |
|
|
At 30 April 2023 |
|
|
Amortisation |
||
At 1 May 2022 |
|
|
At 30 April 2023 |
|
|
Carrying amount |
||
At 30 April 2023 |
- |
- |
Tangible assets |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Total |
|
Cost or valuation |
||||
At 1 May 2022 |
|
|
|
|
Additions |
- |
|
|
|
At 30 April 2023 |
|
|
|
|
Depreciation |
||||
At 1 May 2022 |
|
|
|
|
Charge for the year |
|
|
|
|
At 30 April 2023 |
|
|
|
|
Carrying amount |
||||
At 30 April 2023 |
|
|
|
|
At 30 April 2022 |
|
|
|
|
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Other financial assets (current and non-current) |
Financial assets at cost less impairment |
Total |
|
Non-current financial assets |
||
Cost or valuation |
||
At 1 May 2022 |
31,409 |
31,409 |
At 30 April 2023 |
31,409 |
31,409 |
Impairment |
||
Carrying amount |
||
At 30 April 2023 |
|
31,409 |
Debtors |
Note |
30 April |
30 April |
|
Trade debtors |
|
|
|
Amounts owed by related parties |
|
|
|
Other debtors |
|
|
|
Prepayments |
|
|
|
Gross amount due from customers for contract work |
|
|
|
Income tax asset |
|
|
|
|
|
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Cash and cash equivalents |
30 April |
30 April |
|
Cash on hand |
- |
|
Cash at bank |
|
|
Short-term deposits |
|
|
|
|
Creditors |
Note |
30 April |
30 April |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts due to related parties |
|
|
|
Social security and other taxes |
|
|
|
Outstanding defined contribution pension costs |
|
|
|
Other payables |
|
|
|
Accruals |
|
|
|
|
|
Amounts owed by group undertakings due after more than a year and within a year are unsecured.
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Provisions for liabilities |
Deferred tax |
Total |
|
At 1 May 2022 |
|
|
Additional provisions |
|
|
At 30 April 2023 |
|
|
|
Pension and other schemes |
Defined contribution pension scheme
The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £
Contributions totalling £
Share capital |
Allotted, called up and fully paid shares
30 April |
30 April |
|||
No. |
£ |
No. |
£ |
|
|
|
4,224 |
|
4,224 |
Rights, preferences and restrictions
Ordinary shares have the following rights, preferences and restrictions: |
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
30 April |
30 April |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Coleman & Company Limited
Notes to the Financial Statements for the Year Ended 30 April 2023
Contingent liabilities |
As noted in the previous financial statements the company experienced an incident on a major contract.
Causation of the incident is still not known, and the matter continues to be investigated by the appropriate authorities. The company continues to co-operate fully with all involved.
Based upon rigorous inquiries undertaken by independent specialists and on professional advice, the directors do not believe the company is responsible for the cause of the incident.
It is totally impracticable for the directors to provide any estimate of financial liability, if any, arising from the matter, and the likely timescale for it to be settled. However, the directors are confident that comprehensive insurance arrangements, with adequate limits of indemnity, exist to cover the financial consequences should any liability attach.
At the period end the company had committed to surety for performance bonds on contracts in the sum of £262,095 (2022: £80,000).
Related party transactions |
The company has claimed the exemption available under section 33.1A of FRS 102 from disclosing transactions entered into between wholly owned members of the CNC Group Holdings Limited group.
Summary of transactions with other related parties
Skelligs Site Services Limited and Skelligs Retreat Limited are companies registered in the Republic of Ireland which are owned by M A Coleman, director. At the balance sheet date amounts of £95,152 (2022: £115,507) were owed to the company.
At the balance sheet date amounts of £108,984 (2022: £207,525) were owed to M A Coleman, director.
The company has taken advantage of the exemption available in FRS102 section 33.1A from disclosing transactions with other wholly owned subsidiaries of CNC Group Holdings Limited.
Parent and ultimate parent undertaking |
The company's immediate parent is
The most senior parent entity producing publicly available financial statements is
The ultimate controlling party is