VERMONT PROPERTY GROUP LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Company Registration No. 04848702 (England and Wales)
VERMONT PROPERTY GROUP LIMITED
COMPANY INFORMATION
Directors
Mr M Connor
Mr M T Colton
Mr M A Huston
Secretary
Mr M A Huston
Company number
04848702
Registered office
1 Sefton Street
Liverpool
L8 5TH
Auditor
DSG
Castle Chambers
43 Castle Street
Liverpool
L2 9TL
VERMONT PROPERTY GROUP LIMITED
CONTENTS
Page
Group strategic report
1 - 5
Directors' report
6
Directors' responsibilities statement
7
Independent auditor's report
8 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 33
VERMONT PROPERTY GROUP 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 and group 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 Group’s objectives.

 

Contracting turnover: 2023 - £44.5 million compared with 2022 - £41.7 million

 

Profit before taxation: 2023 - £0.8 million compared with 2022 - £1.3 million

 

Cash at bank and in hand: 2023 - £7.1 million compared with 2022 - £7.2 million

 

The directors deem the results as satisfactory.

 

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

•    the success of our apprentice surveyors scheme

•    chartered certified accountants scheme

•    awarded the: RoSPA Gold Award 2022 for the 6th consecutive year

•    ISO9001:2015 achieved in April 2018

•    ISO45001:2018 achieved in October 2018

•    ISO14001:2015 achieved January 2019

 

We are delighted that Vermont have retained the "Commended Award" in retaining our International Green Apple Environment status for 2023.

 

The Group is in a strong position with a fantastic pipeline of opportunity. Cash at bank and in hand has remained strong at £7.1m (2022: £7.2m) with positive operating cash flows a testament to active working capital management within the business whilst maintaining a principle of ensuring prompt supplier payment.

 

The net assets of the group remain consistent at £2.7m (2022: £2.7m).

VERMONT PROPERTY GROUP 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 Group 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 Group'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 Group to significant potential liabilities and reputational damage.

 

The Group is committed to ensuring a safe working environment. These risks are managed by the Group through: the strong promotion of a health and safety culture; and well-defined health and safety policies and procedures. Additionally, the Group 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 Group’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 Group 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 Group 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 project, 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 Group 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 Group depends on its ability to recruit, retain and develop people with the necessary experience and expertise. It is critical that the group 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 PROPERTY GROUP 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 Group reputation and financial loss and/or penalties.

 

The Group 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 Group seeks to work with subcontractors/suppliers who share its values.

 

Finance

The Group 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 Group 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 Group 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 Group 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 Group 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 Operating Companies and Group. 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 Group 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 Group’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 Group 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 Group 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 PROPERTY GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

Liquidity risk

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

 

Credit risk

Investments of cash surpluses, borrowings and derivative instruments 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.

Promoting the success of the company

The Board of Directors, in line with their duties under s172 of the Companies Act 2006, act in a way they consider, in good faith, would be most likely to promote the success of the Group for the benefit of its members as a whole, and in doing so have regard to a range of matters when making decisions for the long term. Key decisions and matters that are of strategic importance to the Group are appropriately informed by s172 factors.

 

Details of the Group’s key stakeholders and how we engage with them are set out below.

 

Shareholders

Maximising the long-term value for our shareholders is very important.

 

Colleagues

Our people are crucial to our success as a Group and, with that in mind, we have continued to engage closely with them and invest in appropriate training and development. We ensure that all appropriate policies and procedures are in place to promote employee wellbeing and that employees have access to support where needed, be that via health schemes or confidential whistleblowing lines.

 

Customers

We strive to ensure that our customers receive first class-leading service across their networks, built on our long-standing and deeply embedded relationships. We use our knowledge of their networks to ensure that our service proposition and programme management best serves their needs and that our detailed customer account plans are aligned with their requirements.

 

Suppliers

We engage closely with our suppliers to ensure that our relationships are mutually beneficial and long lasting. We onboard suppliers in a controlled manner to ensure they have appropriate insurances, risk assessments and qualifications that will allow them to be best placed to help us deliver our customers’ requirements across their networks.

VERMONT PROPERTY GROUP LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -

Communities

We aim to work closely with the communities in which we operate and have ensured that where possible we support charitable work carried out by our employees. We also ensure that all staff are aware of the Modern Slavery Act 2015 policy and statement.

 

Government and regulators

A key area of focus for the business is ensuring compliance with all applicable laws and regulations.

 

The board is kept fully abreast of any legal and regulatory developments as and when they arise.

 

Future developments

The Group 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 PROPERTY GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 6 -

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 11.

Ordinary dividends were paid amounting to £108,900. The directors do not recommend payment of a further 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 Connor
Mr M T Colton
Mr M A Huston
Auditor

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

Energy and carbon report

Whilst the overall group has consumed more than 40,000 kWh of energy in this reporting period, none of the individual subsidiaries are large as defined by the Companies Act. In preparing this group Director’s Report, we have taken advantage of the option to exclude any energy and carbon information relating to those subsidiaries.

 

As the parent entity has no trading activity, there is no energy and carbon information to be reported in respect of the parent entity.

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 auditor of the company 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 auditor of the company is aware of that information.

Strategic report

The group has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group'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.

On behalf of the board
Mr M A Huston
Director
7 November 2023
2023-11-07
VERMONT PROPERTY GROUP LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 7 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

VERMONT PROPERTY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF VERMONT PROPERTY GROUP LIMITED
- 8 -
Opinion

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

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent 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 group's and parent 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 PROPERTY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VERMONT PROPERTY GROUP LIMITED
- 9 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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 parent 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 parent 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.

Capability of the audit in detecting irregularities, including fraud

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

VERMONT PROPERTY GROUP LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF VERMONT PROPERTY GROUP LIMITED
- 10 -

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 PROPERTY GROUP LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
44,528,638
41,666,018
Cost of sales
(42,374,366)
(39,010,900)
Gross profit
2,154,272
2,655,118
Administrative expenses
(1,429,113)
(1,325,697)
Operating profit
4
725,159
1,329,421
Interest receivable and similar income
8
41,812
6,347
Interest payable and similar expenses
9
(11,137)
(10,628)
Profit before taxation
755,834
1,325,140
Tax on profit
10
(79,832)
26,703
Profit for the financial year
676,002
1,351,843
Profit for the financial year is attributable to:
- Owners of the parent company
633,319
1,255,211
- Non-controlling interests
42,683
96,632
676,002
1,351,843
Total comprehensive income for the year is attributable to:
- Owners of the parent company
633,319
1,255,211
- Non-controlling interests
42,683
96,632
676,002
1,351,843
VERMONT PROPERTY GROUP LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
66,431
83,535
Current assets
Stocks
15
-
2,315
Debtors
17
8,392,465
5,833,293
Cash at bank and in hand
7,145,251
7,182,562
15,537,716
13,018,170
Creditors: amounts falling due within one year
18
(12,905,575)
(10,105,106)
Net current assets
2,632,141
2,913,064
Total assets less current liabilities
2,698,572
2,996,599
Creditors: amounts falling due after more than one year
19
-
(250,000)
Net assets
2,698,572
2,746,599
Capital and reserves
Called up share capital
22
3,000
3,000
Profit and loss reserves
2,610,048
2,574,158
Equity attributable to owners of the parent company
2,613,048
2,577,158
Non-controlling interests
85,524
169,441
2,698,572
2,746,599
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:
07 November 2023
Mr M A Huston
Director
Company registration number 04848702 (England and Wales)
VERMONT PROPERTY GROUP LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 13 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
66,431
83,535
Investments
13
280
43,975
66,711
127,510
Current assets
Debtors
17
379,116
443,689
Cash at bank and in hand
1,602,399
1,427,673
1,981,515
1,871,362
Creditors: amounts falling due within one year
18
(611,186)
(474,146)
Net current assets
1,370,329
1,397,216
Net assets
1,437,040
1,524,726
Capital and reserves
Called up share capital
22
3,000
3,000
Profit and loss reserves
1,434,040
1,521,726
Total equity
1,437,040
1,524,726

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit after tax for the year was £509,743 (2022 - £778,681 profit after tax).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

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:
07 November 2023
Mr M A Huston
Director
Company registration number 04848702 (England and Wales)
VERMONT PROPERTY GROUP LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
Balance at 1 April 2021
3,000
2,075,147
2,078,147
184,409
2,262,556
Year ended 31 March 2022:
Profit for the year
-
1,255,211
1,255,211
96,632
1,351,843
Dividends
11
-
(108,000)
(108,000)
(111,600)
(219,600)
Capital contribution
-
(648,200)
(648,200)
-
(648,200)
Balance at 31 March 2022
3,000
2,574,158
2,577,158
169,441
2,746,599
Year ended 31 March 2023:
Profit for the year
-
633,319
633,319
42,683
676,002
Dividends
11
-
(108,900)
(108,900)
(126,600)
(235,500)
Capital contribution
-
(488,529)
(488,529)
-
(488,529)
Balance at 31 March 2023
3,000
2,610,048
2,613,048
85,524
2,698,572
VERMONT PROPERTY GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 April 2021
3,000
1,499,245
1,502,245
Year ended 31 March 2022:
Profit for the year
-
778,681
778,681
Dividends
11
-
(108,000)
(108,000)
Capital contribution
-
(648,200)
(648,200)
Balance at 31 March 2022
3,000
1,521,726
1,524,726
Year ended 31 March 2023:
Profit for the year
-
509,743
509,743
Dividends
11
-
(108,900)
(108,900)
Capital contribution
-
(488,529)
(488,529)
Balance at 31 March 2023
3,000
1,434,040
1,437,040
VERMONT PROPERTY GROUP LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
3,181,467
2,358,763
Interest paid
(11,137)
(10,628)
Income taxes paid
(967,473)
(117,089)
Net cash inflow from operating activities
2,202,857
2,231,046
Investing activities
Cash disposed of from subsidiaries
(1,051,953)
-
Purchase of tangible fixed assets
(56,398)
(16,820)
Interest received
41,812
6,347
Net cash used in investing activities
(1,066,539)
(10,473)
Financing activities
Repayment of bank loans
(450,000)
(520,000)
Capital contribution
(488,129)
(648,200)
Dividends paid to equity shareholders
(108,900)
(108,000)
Dividends paid to non-controlling interests
(126,600)
(111,600)
Net cash used in financing activities
(1,173,629)
(1,387,800)
Net (decrease)/increase in cash and cash equivalents
(37,311)
832,773
Cash and cash equivalents at beginning of year
7,182,562
6,349,789
Cash and cash equivalents at end of year
7,145,251
7,182,562
VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 17 -
1
Accounting policies
Company information

Vermont Property Group Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 1 Sefton Street, Liverpool, L8 5TH. The principal activities of the group are disclosed in the Strategic Report.

 

The group consists of Vermont Property Group Limited and all of its subsidiaries.

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.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Vermont Property Group Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

1.4
Going concern

The directors regularly prepare financial forecasts based on existing projects and future pipeline. The Company and Group 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 company and group 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.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

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 1.10.

1.6
Tangible fixed assets

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

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Over the course of the lease
Fixtures and fittings
33% straight line
Computers
20% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks and work in progress are valued at the lower of cost and net realisable value. Cost of finished goods and work in progress includes overheads appropriate to the stage of development. Net realisable value is based upon estimated selling price less further costs expected to be incurred to completion and disposal. Provision is made for obsolete and slow moving items.

VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
1.10
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.

1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries 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.

VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies 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.

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 group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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

VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 22 -
1.14
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
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.

1.16
Retirement benefits

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

VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 23 -
1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

2
Judgements and key sources of estimation uncertainty

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

 

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

Key sources of estimation uncertainty

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

Accounting for construction contracts

As referred to in section 1.10, the revenue of the group 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.

Determining and reassessing residual values and useful economic lives of tangible assets

The group depreciates tangible assets over their estimated useful lives. In determining appropriate useful lives of assets, the directors have considered historic performance as well as future expectations for factors such as expected usage of the asset, physical wear and tear, technical and commercial obsolescence and legal limitations of the usage of the asset, such as lease terms. The actual lives of these assets can vary depending on a variety of factors, including technological innovation, product life cycles and maintenance programmes.

 

Judgement is applied to determining the residual values for tangible assets. When determining the residual values, the directors have assessed the amount that the group would currently obtain for the disposal of the asset, if it were already of the condition expected at the end of its useful economic life. At each reporting date, the directors have also assessed whether there have been any indicators, such as a change in how the asset is used significant unexpected wear and tear and changes in market prices, which suggest previous estimates may differ from current expectations. Where this is the case, the residual value and/or useful life is amended and accounted for on a prospective basis.

3
Turnover and other revenue

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

2023
2022
£
£
Turnover analysed by class of business
Contracting
44,528,638
41,666,018
VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 24 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
44,528,638
41,666,018
2023
2022
£
£
Other revenue
Interest income
41,812
6,347
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
73,502
96,818
Loss on disposal of subsidiaries
13,961
-
0
Operating lease charges
61,909
43,697
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
3,000
2,125
Audit of the financial statements of the company's subsidiaries
7,600
14,275
10,600
16,400
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administration
12
11
4
4
Marketing
1
1
1
1
Operational
44
48
3
3
Total
57
60
8
8
VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,244,352
3,223,051
227,807
263,483
Social security costs
402,763
366,430
18,200
17,565
Pension costs
203,999
185,032
125,215
124,638
3,851,114
3,774,513
371,222
405,686
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
48,000
51,000
Company pension contributions to defined contribution schemes
120,000
120,000
168,000
171,000

The directors of the company are considered to be the key management personnel.

8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
41,579
6,347
Other interest income
233
-
Total income
41,812
6,347
9
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
9,780
8,149
Other interest on financial liabilities
-
1,829
Other interest
1,357
650
Total finance costs
11,137
10,628
VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
97,027
125,919
Adjustments in respect of prior periods
(17,195)
(152,622)
Total current tax
79,832
(26,703)

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
755,834
1,325,140
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
143,608
251,777
Tax effect of expenses that are not deductible in determining taxable profit
(6,581)
8,076
Adjustments in respect of prior years
(17,195)
(152,622)
Research and development tax credit
(40,000)
(133,934)
Taxation charge/(credit)
79,832
(26,703)
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
108,900
108,000
VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2022
260,714
96,332
238,145
595,191
Additions
45,700
-
0
10,698
56,398
Disposals
-
0
(2,115)
(10,014)
(12,129)
At 31 March 2023
306,414
94,217
238,829
639,460
Depreciation and impairment
At 1 April 2022
219,905
80,491
211,260
511,656
Depreciation charged in the year
45,379
9,332
18,791
73,502
Eliminated in respect of disposals
-
0
(2,115)
(10,014)
(12,129)
At 31 March 2023
265,284
87,708
220,037
573,029
Carrying amount
At 31 March 2023
41,130
6,509
18,792
66,431
At 31 March 2022
40,809
15,841
26,885
83,535
Company
Leasehold land and buildings
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 1 April 2022
260,714
94,217
228,131
583,062
Additions
45,700
-
0
10,698
56,398
At 31 March 2023
306,414
94,217
238,829
639,460
Depreciation and impairment
At 1 April 2022
219,905
78,376
201,246
499,527
Depreciation charged in the year
45,379
9,332
18,791
73,502
At 31 March 2023
265,284
87,708
220,037
573,029
Carrying amount
At 31 March 2023
41,130
6,509
18,792
66,431
At 31 March 2022
40,809
15,841
26,885
83,535
VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
280
43,975

On 1 April 2022, Vermont Construction (Manchester) Limited, a subsidiary of Vermont Property Group Limited disposed of their 90% shareholding in Vermont Facades Limited.

 

On 1 April 2022, Vermont Property Group Limited disposed of their 100% shareholding in Vermont Construction Limited.

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022
43,975
Disposals
(43,695)
At 31 March 2023
280
Carrying amount
At 31 March 2023
280
At 31 March 2022
43,975
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Birkenhead Market Holdings Limited
1 Sefton Street, Liverpool, L8 5TH
Dormant
Ordinary
100.00
Vermont Construction (Manchester) Limited
1 Sefton Street, Liverpool, L8 5TH
Property construction and consultation services
Ordinary
90.00
Vermont Property Developments Limited
1 Sefton Street, Liverpool, L8 5TH
Dormant
Ordinary
100.00
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
-
2,315
-
-
VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
16
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
6,511,662
5,065,834
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
12,390,586
9,906,225
n/a
n/a
17
Debtors
Group
Company
2023
2022
2023
2022
(as restated)
Amounts falling due within one year:
£
£
£
£
Trade debtors
6,098,071
4,628,811
-
0
-
0
Amounts recoverable on projects
1,636,889
653,018
-
0
-
0
Amounts owed by group undertakings
-
-
2,787
-
Other debtors
625,332
520,775
348,000
413,000
Prepayments and accrued income
32,173
30,689
28,329
30,689
8,392,465
5,833,293
379,116
443,689

 

18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
-
0
200,000
-
0
-
0
Trade creditors
8,140,511
6,776,815
21,303
38,289
Amounts owed to group undertakings
-
0
-
0
270,606
1,202
Corporation tax payable
96,884
79,338
48,106
31,892
Other taxation and social security
223,501
212,853
61,354
36,343
Deferred income
194,604
156,690
194,604
354,690
Other creditors
715,492
1,345,474
-
0
-
0
Accruals and deferred income
3,534,583
1,333,936
15,213
11,730
12,905,575
10,105,106
611,186
474,146

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

VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
-
0
250,000
-
0
-
0
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
-
0
450,000
-
0
-
0
Payable within one year
-
0
200,000
-
0
-
0
Payable after one year
-
0
250,000
-
0
-
0

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 fully repaid in the year.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
203,999
185,032

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A of £1 each
1,710
1,710
1,710
1,710
Ordinary B of £1 each
540
540
540
540
Ordinary C of £1 each
750
750
750
750
3,000
3,000
3,000
3,000

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

VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 31 -
23
Disposals

On 1 April 2022 the group disposed of its 100% holding in Vermont Construction Limited. Included in these financial statements are profits/losses of £nil arising from the company's interests in Vermont Construction Limited up to the date of its disposal.

 

Net assets disposed of
£
Cash and cash equivalents
1,037,339
Trade and other receivables
2,006,560
Trade and other payables
(2,990,048)
Tax liabilities
(51,134)
2,717
Loss on disposal
(2,717)
Total consideration
-

 

On 1 April 2022 the group disposed of its 90% holding in Vermont Facades Limited. Included in these financial statements are profits/losses of £nil arising from the company's interests in Vermont Facades Limited up to the date of its disposal.

 

Net assets disposed of
£
Cash and cash equivalents
14,614
Trade and other receivables
258,225
Trade and other payables
(234,045)
Tax liabilities
(27,550)
11,244
Loss on disposal
(11,244)
Total consideration
-
24
Operating lease commitments
Lessee

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
22,000
68,200
22,000
68,200
Between two and five years
44,000
66,000
44,000
66,000
66,000
134,200
66,000
134,200
VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 32 -
25
Related party transactions

The following amounts were outstanding at the reporting end date:

Amounts due from related parties
2023
2022
Balance
Balance
£
£
Group
Other related parties
348,000
413,000
Company
Other related parties
348,000
413,000

The group made purchases of £128,631 and sales of £887,983 in the year and was owed £470,153 at year-end from related parties.

 

The above balances are due from related parties due to 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 being one of the projects undertaken by the group in the year. This generated sales of £389,364 and cost of sales of £366,630 in the financial year.

26
Prior year adjustments

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.

27
Controlling party

There is no one ultimate individual controlling party.

VERMONT PROPERTY GROUP LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 33 -
28
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
676,002
1,351,843
Adjustments for:
Taxation charged/(credited)
79,832
(26,703)
Finance costs
11,137
10,628
Investment income
(41,812)
(6,347)
Loss on disposal of subsidiaries
13,961
-
0
Depreciation and impairment of tangible fixed assets
73,502
96,818
Movements in working capital:
Decrease in stocks
2,315
-
(Increase)/decrease in debtors
(3,840,486)
1,892,508
Increase/(decrease) in creditors
6,169,102
(1,093,074)
Increase in deferred income
37,914
133,090
Cash generated from operations
3,181,467
2,358,763
29
Analysis of changes in net funds - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
7,182,562
(37,311)
7,145,251
Borrowings excluding overdrafts
(450,000)
450,000
-
6,732,562
412,689
7,145,251
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