VERMONT CONSTRUCTION (MANCHESTER) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Company Registration No. 08963704 (England and Wales)
VERMONT CONSTRUCTION (MANCHESTER) LIMITED
COMPANY INFORMATION
Directors
Mr M Baird
Mr M T Colton
Mr M Connor
Mr C Gallagher
Mr M A Huston
Company number
08963704
Registered office
1 Sefton Street
Liverpool
L8 5TH
Auditor
DSG
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
VERMONT CONSTRUCTION (MANCHESTER) LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5
Directors' responsibilities statement
6
Independent auditor's report
7 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 22
VERMONT CONSTRUCTION (MANCHESTER) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

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

 

Principal activities

The principal activity of the company continued to be that of the provision of property construction and consultation services.

Fair review of the business

The directors have determined that the following financial indicators are the most effective measures of progress towards achieving the company’s objectives.

 

Construction turnover: 2023 - £44.4 million compared with 2022 - £16.9 million

 

Profit before taxation: 2023 - £0.5 million compared with 2022 - £0.6 million

 

Cash at bank and in hand: 2023 - £5.5 million compared with 2022 - £4.7 million

 

The directors deem the results as satisfactory in the light of the significant projects underway.

 

The company has continued to invest in its people’s skills and capabilities as demonstrated by:

 

We are delighted that Vermont have attained a "Commended Award" in retaining our International Green Apple Award.

 

The company is in a strong position with a fantastic pipeline of opportunity. Cash at bank and in hand remains significant at £5.5m (2022: £4.7m) with strong operating cash flows a testament to strong working capital management within the business whilst maintaining a principle of ensuring prompt supplier payment.

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Principal risks and uncertainties

There are many risks that can adversely affect the company and if not managed they have the potential to seriously damage our financial performance and reputation. The Directors recognise that consistent and effective risk management is vital to the delivery of its business strategy. The board has overall responsibility for risk management and for ensuring that appropriate controls and audit systems are in place.

 

Health and safety risk

The company's activities are significant and complex which require the continuous monitoring and management of health, safety and environmental risks. Failure to manage these risks could result in serious harm to employees, subcontractors, the public or the environment and could expose the company to significant potential liabilities and reputational damage.

 

The company is committed to ensuring a safe working environment. These risks are managed by the company through: the strong promotion of a health and safety culture; and well-defined health and safety policies and procedures. Additionally, the company employ experienced Health and Safety professionals who provide support and advice and undertake regular onsite audits.

 

Markets

The impact of any political change, shift in government policy or changing market conditions/trends may cause the company’s clients to cancel, postpone or reduce existing or future projects. Changes in market conditions could also have a material impact on our supply chain which could lead to supply chain failure or liquidity issues. This could impact on our ability to deliver contracts to programme and on budget.

 

Work winning

The company has set out its appetite for the amount of exposure it is willing to accept in regions / sectors through business planning sessions. The commercial expectations in respect of margin, risk, contract terms etc. also form part of the business planning and are discussed at management board meetings.

 

Delivery

The company is engaged in a wide number of complex construction projects at any one time across the North West of England. Given the nature of these large projects, it is exposed to a variety of projects which are reliant on effective operational and commercial procedures and controls being implemented and maintained. The business is reliant on its staff to make complex, technical and commercial judgements and estimates regarding, cost, value, progress outcomes. If these risks are not managed effectively, the company may suffer losses, delays and potential reputational damage.

 

Each project has an operating structure, policies and procedures designed to address the risks inherent in project delivery. Each project undertaken is subject to regular management review, this includes a rigorous and regular review of the forecast revenue and costs to complete, with progress monitored and steps put in place to address specific risks identified on those projects.

 

People

The success of the company depends on its ability to recruit, retain and develop people with the necessary experience and expertise. It is critical that the company has a highly skilled, diverse and motivated work-force as the demands and complexity of the project requirements increase.

 

Vermont seeks to mitigate this risk by offering market-competitive remuneration, training and career development opportunities. Remuneration and incentive packages are reviewed annually to assist in the attraction and retention of key employees.

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

Supply chain

As a business, our success depends heavily on our ability to appropriately manage our supply chain; failure to do so could result in delivery failures, compliance issues and strained customer relationships, ultimately leading to damage to the company reputation and financial loss and / or penalties.

 

The company seeks to develop long-term relationships with its key subcontractors whilst at the same time not becoming over-reliant on any one for the delivery of certain services. As part of its selection criteria, the company seeks to work with subcontractors /suppliers who share its values.

 

Finance

The company is able to operate through its cash reserves which have been built up through retained profits and by management of working capital. Given the growth within the company it is important that strong finances are in place and that key financial risks are managed. If the business does not have sufficient working capital, then it will be unable to meet its contractual obligations to make payments. The company depends on appropriate, accurate and timely financial information to manage the business effectively; if there is lack of visibility then poor decisions can be made.

 

The company continually reviews its financial position to ensure there are sufficient resources to meet current and potential future operational demands. New financial reporting systems have been introduced to improve the visibility and speed at which information is made available.

 

Compliance

We have to comply with the complex and developing legal and regulatory frameworks in areas such as:

 

It is essential that we can demonstrate compliance to avoid the material financial and reputational impacts associated with non-compliance.

 

The company monitors and responds to legal and regulatory developments applicable to the markets in which it operates. Detailed policies and procedures exist to minimise risks and are subject to review and monitoring by the company. Where considered appropriate, staff will be provided with training on such regulatory requirements, to ensure polices procedures and expected behaviours are clearly understood.

 

Systems

The efficient operation of the company is increasingly dependent on the proper operation, performance and development of its IT systems. Failure to manage or integrate IT systems or to implement successfully changes in IT systems could result in a loss of control over critical business information and/or systems. This in turn could impact the company’s ability to fulfil its contractual obligations. A breach of information security, an improper disclosure of such information or the loss of business information could expose the company to adverse publicity, investigation, financial loss and legal claims.

 

Robust controls and procedures are in place to effectively monitor our systems for on-going performance and external threats. The company has in place a comprehensive IT Disaster Recovery Plan, which is routinely tested to ensure it remains fit for purpose. Robust data protection policies and procedures are in place which comply with the General Data Protection Regulations (GDPR). All staff have been provided with appropriate training in the area of information and personal data security.

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

 

Credit risk

Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

 

Future Developments

The company continues to seek out opportunities across the North West in line with business strategy.

On behalf of the board

Mr M A Huston
Director
7 November 2023
VERMONT CONSTRUCTION (MANCHESTER) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -

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

Results and dividends

The results for the year are set out on page 10.

Ordinary dividends were paid amounting to £416,600. The directors do not recommend payment of a final dividend.

Directors

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

Mr M Baird
Mr M T Colton
Mr M Connor
Mr C Gallagher
Mr M A Huston
Auditor

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

Strategic report

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

Statement of disclosure to auditor

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

On behalf of the board
Mr M A Huston
Director
7 November 2023
VERMONT CONSTRUCTION (MANCHESTER) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -

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

 

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

 

 

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

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VERMONT CONSTRUCTION (MANCHESTER) LIMITED
- 7 -
Opinion

We have audited the financial statements of Vermont Construction (Manchester) Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VERMONT CONSTRUCTION (MANCHESTER) LIMITED
- 8 -
Matters on which we are required to report by exception

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

 

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

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VERMONT CONSTRUCTION (MANCHESTER) LIMITED
- 9 -

Capability of the audit in detecting irregularities, including fraud

Discussions with and enquiries of management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity. The following laws and regulations were identified as being of significance to the entity:

 

 

 

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of journal entries; reviewing post year end payments for evidence of claims pay outs and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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

Use of our report

This report is made solely to the company's 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.

Laura Leslie BSc ACA
Senior Statutory Auditor
For and on behalf of DSG
7 November 2023
Chartered Accountants
Statutory Auditor
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
VERMONT CONSTRUCTION (MANCHESTER) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
44,446,794
16,879,081
Cost of sales
(42,547,247)
(15,631,188)
Gross profit
1,899,547
1,247,893
Administrative expenses
(1,414,021)
(631,702)
Operating profit
485,526
616,191
Interest receivable and similar income
6
-
0
120,000
Interest payable and similar expenses
7
(9,780)
(9,978)
Profit before taxation
475,746
726,213
Tax on profit
8
(48,921)
132,480
Profit for the financial year
426,825
858,693

The profit and loss account has been prepared on the basis that all operations are continuing operations.

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
10
-
0
200
Current assets
Debtors
11
8,286,642
3,490,070
Cash at bank and in hand
5,542,852
4,702,936
13,829,494
8,193,006
Creditors: amounts falling due within one year
12
(12,568,884)
(6,692,821)
Net current assets
1,260,610
1,500,185
Total assets less current liabilities
1,260,610
1,500,385
Creditors: amounts falling due after more than one year
13
-
0
(250,000)
Net assets
1,260,610
1,250,385
Capital and reserves
Called up share capital
16
776
776
Profit and loss reserves
1,259,834
1,249,609
Total equity
1,260,610
1,250,385
The financial statements were approved by the board of directors and authorised for issue on 7 November 2023 and are signed on its behalf by:
Mr M A Huston
Director
Company Registration No. 08963704
VERMONT CONSTRUCTION (MANCHESTER) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
776
642,516
643,292
Year ended 31 March 2022:
Profit for the year
-
858,693
858,693
Dividends
9
-
(251,600)
(251,600)
Balance at 31 March 2022
776
1,249,609
1,250,385
Year ended 31 March 2023:
Profit for the year
-
426,825
426,825
Dividends
9
-
(416,600)
(416,600)
Balance at 31 March 2023
776
1,259,834
1,260,610
VERMONT CONSTRUCTION (MANCHESTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
1
Accounting policies
Company information

Vermont Construction (Manchester) Limited is a private company limited by shares incorporated in England and Wales. The registered office is 1 Sefton Street, Liverpool, L8 5TH. The principal activities of the company are disclosed in the Strategic Report.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Vermont Construction (Manchester) Limited is a subsidiary of Vermont Property Group Limited and the results of Vermont Construction (Manchester) Limited are included in the consolidated financial statements of Vermont Property Group Limited which are available from 1 Sefton Street, Liverpool, L8 5TH.

1.2
Going concern

The directors regularly prepare financial forecasts based on existing projects and future pipeline. The Company can operate through its cash reserves and by management of its working capital. The directors continually review the forecasts and current working capital requirements of the business to ensure there is sufficient resources to meet current and potential future operational needs. At the time of approving the financial statements, the directors understand this to be the case. As such, the directors continue to adopt the going concern basis of accounting in preparing the financial statements. true

1.3
Turnover

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

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 14 -

Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered as set out in policy 1.5.

1.4
Fixed asset investments

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

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

1.5
Construction contracts

Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the reporting end date. Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

 

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 revenue is recognised to the extent of contract costs incurred where it is probable that they will be recoverable. Contract costs are recognised as expenses in the period in which they are incurred. When costs incurred in securing a contract are recognised as an expense in the period in which they are incurred, they are not included in contract costs if the contract is obtained in a subsequent period.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs. Costs incurred 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 it is probable they will be recovered.

1.6
Cash and cash equivalents

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

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

Basic financial liabilities

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

 

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

 

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

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

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

Derecognition of financial liabilities

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

1.8
Taxation

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

Current tax

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

1.9
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.10
Retirement benefits

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty

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

Accounting for construction contracts

As referred to in section 1.5, the revenue of the company is principally derived from the completion of construction contracts. These contracts are accounted for as long term contracts with revenue recognition in this area being a critical judgement made by management. In reaching their conclusion as to the level of revenue (and hence profit) to recognise in a financial period management considers the likely costs to complete of each project and such estimates represent a key area of estimation uncertainty.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Contracting
44,446,794
16,879,081
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
44,446,794
16,879,081
2023
2022
£
£
Other significant revenue
Dividends received
-
120,000
4
Employees

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

2023
2022
Number
Number
Administration
8
7
Operational
41
45
Total
49
52
VERMONT CONSTRUCTION (MANCHESTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
4
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,016,545
2,938,590
Social security costs
384,563
346,725
Pension costs
78,784
60,394
3,479,892
3,345,709
5
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
64,853
66,653
Company pension contributions to defined contribution schemes
15,975
2,024
80,828
68,677
6
Interest receivable and similar income
2023
2022
£
£
Income from fixed asset investments
Income from shares in group undertakings
-
0
120,000
7
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
9,780
8,149
Other interest on financial liabilities
-
0
1,829
9,780
9,978
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
48,921
19,896
Adjustments in respect of prior periods
-
0
(152,376)
Total current tax
48,921
(132,480)
VERMONT CONSTRUCTION (MANCHESTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
8
Taxation
(Continued)
- 19 -

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

2023
2022
£
£
Profit before taxation
475,746
726,213
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
90,392
137,980
Tax effect of expenses that are not deductible in determining taxable profit
20
32
Adjustments in respect of prior years
(1,491)
(152,376)
Research and development tax credit
(40,000)
(95,316)
Dividend income
-
0
(22,800)
Taxation charge/(credit) for the year
48,921
(132,480)
9
Dividends
2023
2022
£
£
Interim paid
416,600
251,600
10
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
-
0
200

On 1 April 2022, the shares of Vermont Facades Limited were transferred to CCH Commercial Holdings Limited from Vermont Construction (Manchester) Limited at nominal value.

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
10
Fixed asset investments
(Continued)
- 20 -
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022
200
Disposals
(200)
At 31 March 2023
-
Carrying amount
At 31 March 2023
-
At 31 March 2022
200
11
Debtors
2023
2022
Amounts falling due within one year:
£
£
(Restated)
Trade debtors
6,098,071
2,491,864
Amounts recoverable on projects
1,636,889
644,502
Amounts owed by group undertakings
270,506
150,000
Other debtors
277,332
5,704
Prepayments and accrued income
3,844
198,000
8,286,642
3,490,070

The directors have revisited the presentation of amounts recoverable on projects at the prior year end totalling £644,502. Previously the amount was presented in trade debtors falling due within one year but are now presented separately as amounts recoverable on projects; the correction of this item has been applied retrospectively by way of a prior year adjustment.

There is no impact on the reported profit for the year ended 31 March 2022 or net current assets and net assets at 31 March 2022.

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 21 -
12
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
14
-
0
200,000
Trade creditors
8,119,208
4,055,512
Amounts owed to group undertakings
2,787
15,236
Corporation tax
48,778
19,896
Other taxation and social security
162,147
125,376
Other creditors
715,492
1,345,674
Accruals and deferred income
3,520,472
931,127
12,568,884
6,692,821

Amounts owed to group undertakings are interest free, have no fixed date of repayment and are repayable upon demand.

 

13
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans
14
-
0
250,000
14
Loans and overdrafts
2023
2022
£
£
Bank loans
-
0
450,000
Payable within one year
-
0
200,000
Payable after one year
-
0
250,000

The bank loan was drawn down in September 2020 from Lloyds Bank plc and relates to a Coronavirus Business Interruption Loan with the following terms; £1,000,000 loan repayable in 60 equal monthly repayments commencing 13 months after the drawdown date. Interest was charged on the loan at 2.25% over Base Rate. The loan was secured by way of a deed of subordination from Vermont Property Group Limited as well as an unlimited debenture from the company. The loan was repaid in the year.

15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
78,784
60,394

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

VERMONT CONSTRUCTION (MANCHESTER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
A Ordinary Shares of £1 each
696
696
696
696
B Ordinary Shares of £1 each
40
40
40
40
C Ordinary Shares of £1 each
40
40
40
40
776
776
776
776

All shares rank pari passu in relation to dividends, voting rights and any payments made on winding up.

17
Related party transactions

The company has taken advantage of the reduced disclosure exemption available under Financial Reporting Standard 102 relating to the disclosure of related party transactions between wholly owned group companies.

 

In the year the company had sales of £48,772 and purchases of £1,307,149 with Vermont Property Group Limited. The company also paid dividends of £290,000 to Vermont Property Group Limited. At year end the company was owed £270,506 by and owed £2,787 to Vermont Property Group Limited.

 

The company had sales of £425,363 and purchases of £68,643 with Vermont Construction Limited in the year. At year end the company was owed £52,410 by Vermont Construction Limited.

 

The company had sales in the year of £1,567 with Vermont Property Services Limited. The company was owed £63 by Vermont Property Services Limited as at year end.

 

At year end the company was owed £3,033 by Vermont Construction (Infinity) Limited.

 

The company had sales in the year of £261 with CCH Properties Limited.

 

The above companies are related parties by virtue of common shareholders and/or directors.

 

Within trade debtors is an amount owed by Mark Connor (a company director) amounting to £66,647 relating to a construction project undertaken under a JCT contract directly between Mark Connor and Vermont Construction (Manchester) Limited. This generated sales of £389,364 and cost of sales of £366,630 in the financial year.

 

18
Ultimate controlling party

The parent company is Vermont Property Group Limited, a company incorporated and registered in England and Wales and registered office is 1 Sefton Street, Liverpool, L8 5TH. Vermont Property Group Limited prepares consolidated financial statements which includes Vermont Construction (Manchester) Limited.

 

The smallest and largest group into which the results of this entity are consolidated is that headed by Vermont Property Group Limited.

 

There is no one ultimate controlling party.

 

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