Company registration number 03016374 (England and Wales)
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
COMPANY INFORMATION
Director
Mr G J O'Brien
Company number
03016374
Registered office
Spire View House
Ferryboat Lane
Sunderland
Tyne & Wear
United Kingdom
SR5 3JN
Auditor
Azets Audit Services
Bede House
Belmont Business Park
DURHAM
United Kingdom
DH1 1TW
Bankers
Barclays Bank plc
Fawcett Street
Sunderland
United Kingdom
SR1 1RS
Solicitors
Muckle LLP
Time Central
32 Gallowgate
Newcastle Upon Tyne
Tyne And Wear
United Kingdom
NE1 4BF
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
CONTENTS
Page
Strategic report
1 - 2
Director's report
3
Director's responsibilities statement
4
Independent auditor's report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 26
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 APRIL 2022
- 1 -

The director presents the strategic report for the year ended 30 April 2022.

Business review and results

The principal activity of the company is that of demolition contractors, asbestos removal contractors, aggregate sales, plant hire and haulage.

The company is reporting an EBITDA of £309,085 (2021: £1,303,978), with an operating loss including depreciation costs of £11,925 (2021: Profit of £725,446). The director was satisfied with these results.

Turnover suffered in the current year, owing to the group re-organisation and the transfer of activities to other related parties with the company adopting a more streamlined approach going forward.

Principal risks and uncertainties

The following principal risks and uncertainties have been identified.

Financial risk

The principal financial risk for the company relates to commodity prices and exchange rate risk. In terms of the commodity price the risk is mitigated by the ability of the company to hold stock long term and sell at advantageous market rates. The company is financed through a mixture of retained profit, director’s loans to the company and hire purchase agreements. The company enters into third party fixed rate finance agreements for asset finance, which are not exposed to base rate movements. Credit risk is primarily attributable to its trade receivables and the company continues to review customers credit ratings based on payments received.

Health and safety quality

Health and Safety is the number one priority for the company and it continually reviews the health and safety management system to ensure the system facilitates delivery of company’s policy commitments. The company continues to identify and target key risk areas which form the high frequency injury causes. Health and Safety is discussed at board level as well as site level. The company is monitored by external accreditation bodies with the company being accredited to BS EN ISO 9001:2015 as well as BS OHSAS 18001. The company continues to maintain an effective management system complying with International standards and continues to ensure that the levels of high performance and quality are being maintained.

Development and performance

The directors are continuously looking at different opportunities to expand the company and are optimistic for the future of the business.

Key performance indicators

The company’s performance is measured by a number of financial and non-financial key performance indicators which include the monitoring of actual results against budget on a monthly basis.

The company uses a range of financial indicators to ensure all aspects of the business are continually monitored and controlled effectively with operating profit being the principal financial key performance indicator.                

             2022         2021

Turnover         £3,644,148 £11,903,837

Gross profit margin      4.37%          15.09%

Key non-financial performance indicators include monitoring health and safety and quality. The directors monitor these very closely on an on-going basis.

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 2 -

On behalf of the board

Mr G J O'Brien
Director
17 November 2023
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 30 APRIL 2022
- 3 -

The director presents his annual report and financial statements for the year ended 30 April 2022.

Principal activities

The principal activity of the company continued to be that of demolition contractors, asbestos removal contractors, aggregate sales, plant hire and haulage.

Results and dividends

The results for the year are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

Mr G J O'Brien
Mr M O'Brien
(Resigned 26 October 2021)
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 G J O'Brien
Director
17 November 2023
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 APRIL 2022
- 4 -

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
- 5 -

Qualified opinion

We have audited the financial statements of G. O'Brien & Sons (Nationwide Demolition Contractors) Limited (the 'company') for the year ended 30 April 2022 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, except for the effects of the matter described in the Basis for Qualified Opinion paragraph, the financial statements:

Basis for qualified opinion

The evidence available to us was limited in respect of the value of stock included within work in progress of £3,259,475 (2021: £3,182,341). The specialist nature of one contract carried at cost of £2,766,385 (2021: £2,660,584) results in there being a restricted marketplace for disposal. It was not possible for us to perform auditing procedures necessary to obtain sufficient appropriate audit evidence as regards the carrying value of this contract. Any adjustment to this balance would have a consequential effect on the profit for the year ending 30 April 2022.

 

In addition the company is carrying investment properties within land and buildings at cost of £2,641,773 (2021: £2,675,649). FRS102 dictates that these properties should be carried at their fair value. Although not valued for the statutory accounts, the properties were valued post year end for the purpose of being transferred to another company owned by the director, the properties were valued at £3,845,000 and were transferred on 10 June 2022.

 

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 director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

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

 

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

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
- 6 -

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 director is 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:

Matters on which we are required to report by exception

In respect solely of the limitation on our work, described above:

 

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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
- 7 -
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.

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.

Extent to which the audit was considered capable of 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 and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

 

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

 

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 

 

 

 

 

 

 

 

 

 

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
- 8 -

Use of our report

This report is made solely to the company's member 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 member those matters we are required to state to him 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 member for our audit work, for this report, or for the opinions we have formed.

Angela Ingham FCA
Senior Statutory Auditor
For and on behalf of Azets Audit Services
17 November 2023
Chartered Accountants
Statutory Auditor
Bede House
Belmont Business Park
DURHAM
United Kingdom
DH1 1TW
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 APRIL 2022
- 9 -
2022
2021
Notes
£
£
Turnover
3
3,644,146
11,903,837
Cost of sales
(3,484,866)
(10,107,316)
Gross profit
159,280
1,796,521
Administrative expenses
(1,650,335)
(2,278,899)
Other operating income
499,852
1,207,824
Exceptional item
4
979,278
-
0
Operating (loss)/profit
5
(11,925)
725,446
Interest payable and similar expenses
8
140,352
(145,008)
Profit before taxation
128,427
580,438
Tax on profit
9
(86,157)
59,601
Profit for the financial year
42,270
640,039

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

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
BALANCE SHEET
AS AT
30 APRIL 2022
30 April 2022
- 10 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
11
4,360,053
5,573,837
Current assets
Stocks
12
3,699,269
3,822,085
Debtors
13
1,672,214
2,140,829
Cash at bank and in hand
278,692
721,928
5,650,175
6,684,842
Creditors: amounts falling due within one year
14
(2,315,615)
(4,261,625)
Net current assets
3,334,560
2,423,217
Total assets less current liabilities
7,694,613
7,997,054
Creditors: amounts falling due after more than one year
15
(263,581)
(694,449)
Provisions for liabilities
Deferred tax liability
18
138,468
52,311
(138,468)
(52,311)
Net assets
7,292,564
7,250,294
Capital and reserves
Called up share capital
20
160,000
160,000
Profit and loss reserves
7,132,564
7,090,294
Total equity
7,292,564
7,250,294
The financial statements were approved by the board of directors and authorised for issue on 17 November 2023 and are signed on its behalf by:
Mr G J O'Brien
Director
Company Registration No. 03016374
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 APRIL 2022
- 11 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 May 2020
160,000
6,990,255
7,150,255
Year ended 30 April 2021:
Profit and total comprehensive income for the year
-
640,039
640,039
Dividends
10
-
(540,000)
(540,000)
Balance at 30 April 2021
160,000
7,090,294
7,250,294
Year ended 30 April 2022:
Profit and total comprehensive income for the year
-
42,270
42,270
Balance at 30 April 2022
160,000
7,132,564
7,292,564
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2022
- 12 -
1
Accounting policies
Company information

G. O'Brien & Sons (Nationwide Demolition Contractors) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Spire View House, Ferryboat Lane, Sunderland, Tyne & Wear, United Kingdom, SR5 3JN.

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:

 

G. O'Brien & Sons (Nationwide Demolition Contractors) Limited is a wholly owned subsidiary of Timec 1484 Limited and the results of G. O'Brien & Sons (Nationwide Demolition Contractors) Limited are included in the consolidated financial statements of Timec 1777 Limited, the ultimate parent undertaking, which are available from Spire View House, Ferryboat Lane, Sunderland, Tyne & Wear, United Kingdom, SR5 3JN.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents the total value, excluding value added tax, of supplies made during the year, within the principal activities of the company.

 

In respect of long-term contracts and contracts for on-going services, turnover represents the value of work done in the year, including estimates of amounts not invoiced. Turnover in respect of long-term contracts and contracts for on-going services is recognised by reference to the stage of completion.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 13 -

Revenue from contracts for the provision of 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 are recoverable.

1.4
Tangible fixed assets

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

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

Freehold buildings
50 years straight line
Plant and machinery
15% reducing balance
Fixtures, fittings & equipment
20% straight line
Motor vehicles
25% reducing balance

Freehold land is not depreciated.

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 credited or charged to profit or loss.

1.5
Investment properties

The company holds several properties that should be classified as investment properties under FRS102. The directors have included these properties at cost in tangible fixed assets as they consider that the time and cost involved in obtaining a fair value for these properties far outweighs the benefit any user of the financial statements may gain from having such information.

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 14 -
1.8
Cash at bank and in hand

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.

1.9
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.

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.

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.

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 15 -
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.

 

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

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

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.

1.10
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.

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 16 -
Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events have occurred at that date that will result in an obligation to pay more, or a right to pay less or to receive more tax, with the following exceptions:

Provision is made for tax on gains arising from the revaluation (and similar fair value adjustments) of fixed assets, and gains on disposal of fixed assets that have been rolled over to replacement assets, only to the extent that, at the balance sheet date, there is a binding agreement to dispose of the asset concerned. However, no provision is made where, on the basis of all available evidence at the balance sheet date, it is more likely then not that the taxable gain will be rolled over into replacement assets and charged to tax only where the replacement assets are sold.

 

Deferred tax assets are recognised only to the extent that the directors consider that it is more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing difference can be deducted.

 

Deferred tax is measured on an undiscounted basis at the tax rates that the expected to apply in the periods in which timing differences reverse, based on tax rates and laws enacted or substantively enacted at the balance sheet date.

1.11
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.

1.12
Retirement benefits

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

1.13
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leases asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease.

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
1
Accounting policies
(Continued)
- 17 -
1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Valuation of stock

A significant element of stock consists of stock acquired as the result of the company's demolition activities. Due to the nature of this stock an estimate is made of both quantities and the amounts recoverable. This involves directors judgement based upon their everyday knowledge of the stock held and the market conditions.

 

An assessment is made each year end of the ability of the company to recover the value of all stock at or above its original cost and a provisions is made for any shortfall on cost due to obsolescence or the net realisable value being less than cost.

Revenue recognition

The company's revenue recognition policy for long term contracts is set out in accounting policies and is central to how the company values work performed in each financial period. Professional Quantity Surveyors are employed to provide the estimates required, which is overseen by the Directors who have substantial experience in the field.

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 18 -
3
Turnover and other revenue

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

2022
2021
£
£
Turnover analysed by class of business
Demolition
1,773,973
2,330,590
Civil
112,102
1,009,189
Aggregate centre
44,458
1,265,878
Architectural salvage
159,448
484,682
Scrap
1,479,040
6,790,189
Miscellaneous income
75,125
23,309
3,644,146
11,903,837
2022
2021
£
£
Turnover analysed by geographical market
United Kingdom
3,402,230
11,673,453
Europe
241,916
230,384
3,644,146
11,903,837
2022
2021
£
£
Other revenue
Grants received
-
55,095
Rent receivable
453,947
418,490
4
Exceptional item
2022
2021
£
£
Expenditure
Exceptional - (Profit) or loss on sale of tangible assets
(979,278)
-
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 19 -
5
Operating (loss)/profit
2022
2021
Operating (loss)/profit for the year is stated after charging/(crediting):
£
£
Exchange losses
13,545
15,471
Government grants
-
(55,095)
Fees payable to the company's auditor for the audit of the company's financial statements
28,000
28,000
Depreciation of owned tangible fixed assets
258,981
440,069
Depreciation of tangible fixed assets held under finance leases
62,029
138,463
(Profit)/loss on disposal of tangible fixed assets
-
343,814
Operating lease charges
277,160
275,000
6
Director's remuneration
2022
2021
£
£
Remuneration for qualifying services
80,197
109,744
Company pension contributions to defined contribution schemes
1,906
2,729
82,103
112,473
7
Employees

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

2022
2021
Number
Number
Productive staff
15
30
Administrative staff
3
4
Management staff
4
6
Total
22
40

Their aggregate remuneration comprised:

2022
2021
£
£
Wages and salaries
1,296,968
2,385,058
Social security costs
94,144
132,797
Pension costs
15,695
27,123
1,406,807
2,544,978
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
7
Employees
(Continued)
- 20 -

The company has a separate payroll company Nationwide Demolition & Dismantling Ltd, this company employed on average 13 (2021: 26) staff with G O'Brien & Sons (NDC) Ltd employing on average 9 (2021: 14) staff.

8
Interest payable and similar expenses
2022
2021
£
£
Interest on loans
17,573
34,798
Interest on loan notes
(185,145)
40,378
Interest on finance leases and hire purchase contracts
27,220
47,111
Other interest
-
0
22,721
(140,352)
145,008

Accrued interest on loan notes has been fully reversed in the current year due to the change in control of the company resulting in the director determining that no interest is due on the original balance.

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 21 -
9
Taxation
2022
2021
£
£
Current tax
Adjustments in respect of prior periods
-
0
(154,237)
Deferred tax
Origination and reversal of timing differences
86,157
94,636
Total tax charge/(credit)
86,157
(59,601)

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:

2022
2021
£
£
Profit before taxation
128,427
580,438
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2021: 19.00%)
24,401
110,283
Tax effect of expenses that are not deductible in determining taxable profit
(23,142)
28,283
Tax effect of utilisation of tax losses not previously recognised
(5,717)
(238,402)
Unutilised tax losses carried forward
-
0
39,355
Adjustments in respect of prior years
-
0
(154,237)
Permanent capital allowances in excess of depreciation
4,458
60,481
Deferred tax adjustments
86,157
94,636
Taxation charge/(credit) for the year
86,157
(59,601)
10
Dividends
2022
2021
£
£
Interim paid
-
0
540,000
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 22 -
11
Tangible fixed assets
Freehold buildings
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 May 2021
3,424,234
7,125,475
241,500
1,270,298
12,061,507
Additions
-
0
659,519
5,353
-
0
664,872
Disposals
-
0
(4,948,037)
(159,556)
(670,752)
(5,778,345)
At 30 April 2022
3,424,234
2,836,957
87,297
599,546
6,948,034
Depreciation and impairment
At 1 May 2021
439,696
4,878,119
203,524
966,331
6,487,670
Depreciation charged in the year
43,434
215,148
4,421
58,007
321,010
Eliminated in respect of disposals
-
0
(3,491,894)
(127,990)
(600,815)
(4,220,699)
At 30 April 2022
483,130
1,601,373
79,955
423,523
2,587,981
Carrying amount
At 30 April 2022
2,941,104
1,235,584
7,342
176,023
4,360,053
At 30 April 2021
2,984,538
2,247,356
37,976
303,967
5,573,837

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

2022
2021
£
£
Plant and machinery
351,495
535,469
Motor vehicles
-
0
146,562
351,495
682,031

Land and buildings of carrying amount £2,941,104 (2021: £2,984,538) includes investment properties of £2,641,773 (2021: £2,675,649) not carried at fair value, as required under FRS 102. Due to the specialist nature of these properties the directors believe that the time and cost involved in obtaining a fair value far outweighs the benefit any user of the financial statements may gain from having such information.

12
Stocks
2022
2021
£
£
Work in progress
3,259,475
3,182,341
Finished goods and goods for resale
439,794
639,744
3,699,269
3,822,085
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 23 -
13
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
275,685
909,102
Gross amounts owed by contract customers
-
0
261,645
Other debtors
1,234,831
478,255
Prepayments and accrued income
94,698
343,827
1,605,214
1,992,829
2022
2021
Amounts falling due after more than one year:
£
£
Other debtors
67,000
148,000
Total debtors
1,672,214
2,140,829
14
Creditors: amounts falling due within one year
2022
2021
Notes
£
£
Bank loans
16
-
0
162,154
Obligations under finance leases
17
92,993
240,576
Trade creditors
358,657
990,304
Amounts owed to undertakings in which the company has a participating interest
16,668
691,070
Corporation tax
100
-
0
Other taxation and social security
470,938
548,887
Other creditors
1,273,019
1,222,779
Accruals and deferred income
103,240
405,855
2,315,615
4,261,625

Hire purchase creditors are secured against the assets to which they relate.

15
Creditors: amounts falling due after more than one year
2022
2021
Notes
£
£
Bank loans
16
-
0
560,043
Obligations under finance leases
17
263,581
134,406
263,581
694,449

Hire purchase creditors are secured against the assets to which they relate.

G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 24 -
16
Loans and overdrafts
2022
2021
£
£
Bank loans
-
0
722,197
Payable within one year
-
0
162,154
Payable after one year
-
0
560,043

The bank loan was repaid in May 2021.

All bank loans were fixed term and carried a fixed rate of interest of 2.85% - 4.1%.

17
Finance lease obligations
2022
2021
Future minimum lease payments due under finance leases:
£
£
Within one year
92,993
240,576
In two to five years
263,581
134,406
356,574
374,982

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

18
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
2022
2021
Balances:
£
£
Accelerated capital allowances
138,468
52,311
2022
Movements in the year:
£
Liability at 1 May 2021
52,311
Charge to profit or loss
86,157
Liability at 30 April 2022
138,468
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
- 25 -
19
Retirement benefit schemes
2022
2021
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
15,695
27,123

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.

20
Share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
160,000
160,000
160,000
160,000
21
Financial commitments, guarantees and contingent liabilities

The company has a cross guarantee in place amounting to £500,000 to support debt owed by a related party.

22
Capital commitments

Amounts contracted for but not provided in the financial statements:

2022
2021
£
£
Acquisition of tangible fixed assets
45,525
-
23
Events after the reporting date

On 5 August 2021 Timec 1778 Limited was incorporated with the purpose of buying the shares of Timec 1777 Limited.

 

The deal took place on 9 June 2022 when ownership was transferred to G J O'Brien (Jnr), the sole shareholder.

24
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2022
2021
2022
2021
£
£
£
£
Other related parties
457,085
1,160,444
685,561
295,325
G. O'BRIEN & SONS (NATIONWIDE DEMOLITION CONTRACTORS) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 APRIL 2022
24
Related party transactions
(Continued)
- 26 -

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due to related parties
£
£
Other related parties
16,668
691,070

The following amounts were outstanding at the reporting end date:

2022
2021
Amounts due from related parties
£
£
Other related parties
1,122,908
326,413
Other information

In addition to the above there is a balance of £133,259 (2021: £5,572) due from Mr M O'Brien, a director in the year but who resigned on 26/10/21.

25
Directors' transactions

Included in other creditors are loan notes of £1,470,000 (2021: £1,470,000) due to Mr G O'Brien, director. Interest was charged at 4% above the bank base rate in the previous year. In the current year interest has not been charged on the loan. See note 8 for details.

 

In the prior year, the purchase of Mr G O'Brien (Snr) shares in the parent company included the transfer of property with a deemed value of £540,000. The property had a net book value of £470,675 resulting in a profit of £69,325. Mr G O'Brien's (Snr) also had a loan account of £48,200 which was written off as part of the deal.

Advances or credits have been granted by the company to its directors as follows:

26
Ultimate controlling party

The immediate parent company of G O'Brien & Sons (Nationwide Demolition Contractors) Limited is Timec 1484 Limited.

On 26 October 2021 control of Timec 1742 Limited, the immediate parent company of Timec 1484 Limited was passed to Timec 1777 Limited which purchased the shares from Mr G O'Brien (Jnr).

 

The ultimate parent company is Timec 1777 Limited and is controlled by the shareholder, Mr G J O'Brien (Jnr) by virtue of his 100% shareholding in Timec 1777 Limited and is considered to be the ultimate controlling party.

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