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Registration number: 04890550

O.C.L. Facades Limited

Annual Report and Financial Statements

for the Year Ended 30 June 2023

 

O.C.L. Facades Limited

Contents

Company Information

1

Strategic Report

2 to 5

Directors' Report

6 to 8

Statement of Directors' Responsibilities

9

Independent Auditor's Report

10 to 13

Profit and Loss Account

14

Balance Sheet

15

Statement of Changes in Equity

16

Statement of Cash Flows

17

Notes to the Financial Statements

18 to 29

 

O.C.L. Facades Limited

Company Information

Directors

T J Harris

J T Harris

Registered office

Chester House
Chester Hall Lane
BASILDON
Essex
SS14 3BG

Auditors

McBrides Accountants LLP
Nexus House
2 Cray Road
Sidcup
Kent
DA14 5DA

 

O.C.L. Facades Limited

Strategic Report for the Year Ended 30 June 2023

The directors present their strategic report for the year ended 30 June 2023.

Principal activity

The principal activity of the company is specialised drylining and facades contracting.

Fair review of the business

OCL operates predominantly across London and the Southeast of England and is headquartered at the groups head office in Essex.

The company continues to provide full external facades packages including cladding, windows, curtain walling, render and architectural metalworks and is a specialist business combining design, direct material procurement and site installations on a wide variety of construction projects.

OCL has a number of ongoing framework agreements with major blue-chip clients in its core sectors which comprise:

Residential
Commercial
Industrial

The company maintains its client focused approach and continues to build on its reputation for delivering projects in a proactive and efficient manner, on time and within budget. During the financial year 2022-23 the company has continued to perform strongly and in-line with expectations.

The company is dedicated to responsible business practices. We are committed to reducing our environmental impact, supporting local communities, and promoting diversity and inclusion within our workforce.

With rising interest rates and worldwide conflict the principal risks are the unpredictability of the UK economy and its effects on the UK construction sector.

An unpredictable economy leads to a highly competitive tendering environment.
We recognise the dynamic nature of the construction industry and the associated risks and uncertainties that may impact our operations. As part of our commitment to resilience and sustainable growth the company has spent significant time establishing close, long term, and robust relations with both our clients and our supply chain partners. We firmly believe that these relationships form the bedrock of our success and contribute significantly to mitigating potential risks.

In addition, the company has a sound financial base which together with its reputation, experience and knowledge of the industry enables it to secure repeat business and deliver high quality work on contracts off all sizes.

In line with our commitments to financial conservatism, the company consistently and meticulously manages liquidity and cash flow using strict in-house policy and procedures in relation to final accounts and overdue payments. This proactive approach ensures that the company maintains the necessary financial resilience to meet obligations, seize opportunities, and safeguard the interests of its stakeholders.

The directors focus for the year is to consolidate on the growth experienced in the previous year and continue to grow the business in terms of increased turnover and profits during the next financial year.

The order book remains strong going into the new financial year.

 

O.C.L. Facades Limited

Strategic Report for the Year Ended 30 June 2023

Key Performance Indicators
The key financial and non-financial performance indicators used to determine the progress and performance of the company are set out below:

Turnover
The company’s turnover has increased from £16.89m to £21.12m, representing an increase of 31%, exceeding pre-pandemic and Brexit performance. This is in part due to an increased demand in housing and the company’s strategic decision to ensure that contracts are allocated and completed by the appropriate trading subsidiary of the group.

By aligning contracts with the expertise and strengths of each trading entity we ensure a thorough understanding of the costs associated with each subsidiary, facilitating more accurate financial analysis and effective risk management.

Gross Profit & Gross Profit Margin
The company’s gross profit has increased from £3.15m in 2022 to £3.98m while gross profit margin has decreased form 18.65% in 2022 to 17.98% in 2023. The reduction to the previous years margin is principally due to inflationary pressures in the national economy.

Profit Before Tax
Profit before tax has increased from £996k to £1.44m representing an increase of 45%.

 

O.C.L. Facades Limited

Strategic Report for the Year Ended 30 June 2023

Principal risks and uncertainties
There are a number of potential risks and uncertainties which could impact the company's performance, and these are considered by the board on a regular basis. The board of directors and the relevant management teams consider the risks of all significant business decisions in the company's operations and changes in the external environment. The key risks affecting the business are as follows:

Operating Risk
The company's reputation and continued success depends on its ability to provide services which are valued by its clients. The company regularly reviews the quality of its services both internally and through formalised client feedback and evaluation.

Market Research
The company operates in a specialised market and seeks to maintain a competitive advantage by offering an appropriate and relevant service range and providing a high level of client service from professional and dedicated staff. The company manages market risk by providing added value services to its clients, having fast response times not only in supplying services but also in handling client queries. The company keeps abreast of developments in the market through maintaining strong relationships with clients.

Taxation Risk
The company is exposed to financial risks from increases in tax rates and changes to the basis of taxation including corporation tax and VAT. Principal controls to mitigate this risk include regular monitoring of legislative proposals, the engagement of experienced executives and the use of experienced sector specific professional advisers to mitigate the impact of changes.

Management Risk
The company is reliant on its high calibre team of operational managers, surveyors, and the board of directors. The company recruits and develops high calibre employees, many of whom have been with the company for several years. The board have tried to ensure that the knowledge base of the operational management team is shared as much as possible throughout the company.

Financial Risk
The company is principally funded from retained profits and is reliant on converting these profits into cash. Fluctuations in material and labour prices as a result of shortages continue to be a key element of the financial risk to the company. Financial monitoring, forecasting, and planning are continuous processes and emphasis is placed on balancing maintenance or growth of profit margin against investment in resources to maintain delivery of a high-quality service to its clients.

Health and Safety
The company recognises the importance of health and safety of all those employed in its offices and sites, and operates policies to ensure that the risks associated with health and safety are properly managed and controlled.

The company continues to strive to improve its safety, health and environmental standards and performance. These are routinely reviewed throughout the year and in response to the performance reviews carried out by the company's in-house safety department, along with any changes in legislation.

The company recognises the significance of health and safety in the workplace to ensure its exposure to risk is minimised through investment in training and education in the occupational health and safety field. The company employs a dedicated team of qualified staff in this area.

The company recognises the importance of its environmental responsibilities, monitors its impact on the environment and designs and implements policies to reduce any damage that might be caused by the company's activities. Initiatives designed to minimise the company's impact on the environment include safe disposal of any product waste, recycling and reducing energy consumption.

 

O.C.L. Facades Limited

Strategic Report for the Year Ended 30 June 2023

Principal risks and uncertainties
There are a number of potential risks and uncertainties which could impact the company's performance, and these are considered by the board on a regular basis. The board of directors and the relevant management teams consider the risks of all significant business decisions in the company's operations and changes in the external environment. The key risks affecting the business are as follows:

Operating Risk
The company's reputation and continued success depends on its ability to provide services which are valued by its clients. The company regularly reviews the quality of its services both internally and through formalised client feedback and evaluation.

Market Research
The company operates in a specialised market and seeks to maintain a competitive advantage by offering an appropriate and relevant service range and providing a high level of client service from professional and dedicated staff. The company manages market risk by providing added value services to its clients, having fast response times not only in supplying services but also in handling client queries. The company keeps abreast of developments in the market through maintaining strong relationships with clients.

Taxation Risk
The company is exposed to financial risks from increases in tax rates and changes to the basis of taxation including corporation tax and VAT. Principal controls to mitigate this risk include regular monitoring of legislative proposals, the engagement of experienced executives and the use of experienced sector specific professional advisers to mitigate the impact of changes.

Management Risk
The company is reliant on its high calibre team of operational managers, surveyors, and the board of directors. The company recruits and develops high calibre employees, many of whom have been with the company for several years. The board have tried to ensure that the knowledge base of the operational management team is shared as much as possible throughout the company.

Financial Risk
The company is principally funded from retained profits and is reliant on converting these profits into cash. Fluctuations in material and labour prices as a result of shortages continue to be a key element of the financial risk to the company. Financial monitoring, forecasting, and planning are continuous processes and emphasis is placed on balancing maintenance or growth of profit margin against investment in resources to maintain delivery of a high-quality service to its clients.

Health and Safety
The company recognises the importance of health and safety of all those employed in its offices and sites, and operates policies to ensure that the risks associated with health and safety are properly managed and controlled.

The company continues to strive to improve its safety, health and environmental standards and performance. These are routinely reviewed throughout the year and in response to the performance reviews carried out by the company's in-house safety department, along with any changes in legislation.

The company recognises the significance of health and safety in the workplace to ensure its exposure to risk is minimised through investment in training and education in the occupational health and safety field. The company employs a dedicated team of qualified staff in this area.

The company recognises the importance of its environmental responsibilities, monitors its impact on the environment and designs and implements policies to reduce any damage that might be caused by the company's activities. Initiatives designed to minimise the company's impact on the environment include safe disposal of any product waste, recycling and reducing energy consumption.

Accreditations
The company has been assessed and has achieved the following accreditations:

Achilles
CHAS
SMAS
FIS
Constructionline
FIRAS
ISO 9001
ISO 14001
ISO 45001

The directors are of the opinion that these certifications and accreditations will ensure the continued efficiency of its internal and external processes.

People
The company believes that the stable results for the year are attributable to the quality and commitment of its employees. As a family business we know that our people are fundamental to our success and reputation. The directors therefore continue to invest time and energy into attracting employees who share its philosophy. The company has continued to make significant investment in its team throughout the year by supporting various team members in gaining additional qualifications and is committed to continuing this strategy.
 

Approved and authorised by the Board on 17 November 2023 and signed on its behalf by:
 

.........................................
T J Harris
Director

 

O.C.L. Facades Limited

Directors' Report for the Year Ended 30 June 2023

The directors present their report and the financial statements for the year ended 30 June 2023.

Director of the company

The directors who held office during the year were as follows:

T J Harris

J T Harris

Financial instruments

Objectives and policies

The company's principal financial instruments comprise bank balances, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the company's operations and to finance the company's operations. Due to the nature of the financial instruments used by the company there is no exposure to price risk. The company's approach to managing other risks applicable to the financial instruments concerned is shown below.

Price risk, credit risk, liquidity risk and cash flow risk

The company manages liquidity risk by ensuring that there are sufficient funds to meet payments. In addition to the credit risk exposure referred to below, strict payment terms are negotiated with the company's clients which enables the company to ensure it is paid at the agreed billing dates. Most contracts are negotiated in this way.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due. The company continues to maintain good relationships with its suppliers by adhering to agreed credit terms and ensuring it pays suppliers promptly by the due date.

The company maintains sufficient funding levels to meet the current and future requirements arising. Cash flow forecasts are prepared and monitored on a weekly basis. In respect of the bank balances the liquidity risk is managed by maintaining a positive balance between continuity of funding and flexibility through an agreed payment policy.

All new clients are credit checked and insured with a credit insurance company. Accounts are monitored on an ongoing basis and any new variance from agreed terms is immediately highlighted and reported to the board.

 

O.C.L. Facades Limited

Directors' Report for the Year Ended 30 June 2023

Employee involvement

The company believes that the strong results for the year are attributable to the quality and commitment of its employees and that the employees continue to be its most important resource. As a family business we know that our people are fundamental to our success and reputation and the directors therefore continue to invest time and energy into attracting employees who share its philosophy.

It is essential to the future success of the business that a skilled and a motivated workforce is retained. The company continues to make significant investment in its human resources both in terms of neccesary increases and strengthening of its management teams, supervisory personnel and workforce.

Details of the number of employees and related costs can be found in the notes to the financial statements.

The company's employment policies respect the individual and offer career opportunities regardless of gender, race or religion. The company engages, promotes and trains staff on the basis of their capabilities, qualifications and experience without discrimination, giving all employees an equal opportunity to progress within the company.

The company's policy is to consult and discuss with employees, through meetings, matters likely to affect employees' interests. Information of matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance. Management members are always available to discuss matters of interest and concerns with the staff, both at the main office or at a work location.

Applications for employment by disabled persons are always fully considered bearing in mind the aptitudes of the applicant concerned. If in the event members of staff become disabled, every effort is made to ensure their employment with the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical with that of other employees.

Future developments

OCL has three main areas of focus for the coming financial year:

• Investing in the OCL team through training and development to ensure the best solutions and outcomes for our clients and job satisfaction for our employees;
• Strengthening and improving its supply chain to maintain and where possible improve margins and ensure continuation of supply; and
• Increasing market share by expanding the client base and securing future contracts with existing and new clients.

 

O.C.L. Facades Limited

Directors' Report for the Year Ended 30 June 2023

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 17 November 2023 and signed on its behalf by:
 

.........................................
T J Harris
Director

 

O.C.L. Facades Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

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

 

O.C.L. Facades Limited

Independent Auditor's Report to the Members of O.C.L. Facades Limited

Opinion

We have audited the financial statements of O.C.L. Facades Limited (the 'company') for the year ended 30 June 2023, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 30 June 2023 and of its profit for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 entity'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.

 

O.C.L. Facades Limited

Independent Auditor's Report to the Members of O.C.L. Facades Limited

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities (set out on page 9), the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

 

O.C.L. Facades Limited

Independent Auditor's Report to the Members of O.C.L. Facades Limited

Auditor Responsibilities for the audit of the financial statements

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

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:

Discussions were held with, and enquiries made of, management and those charged with governance 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:

those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation.

those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include environmental regulations and health and safety legislation.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries 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 entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures 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 for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

 

O.C.L. Facades Limited

Independent Auditor's Report to the Members of O.C.L. Facades Limited

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.

......................................
Nick Paterno (Senior Statutory Auditor)
For and on behalf of McBrides Accountants LLP, Statutory Auditor

Nexus House
2 Cray Road
Sidcup
Kent
DA14 5DA

17 November 2023

 

O.C.L. Facades Limited

Profit and Loss Account for the Year Ended 30 June 2023

Note

2023
£

2022
£

Turnover

22,115,951

16,889,684

Cost of sales

 

(18,140,434)

(13,739,810)

Gross profit

 

3,975,517

3,149,874

Administrative expenses

 

(2,536,714)

(2,157,893)

Other operating income

3

-

3,833

Operating profit

4

1,438,803

995,814

Other interest receivable and similar income

2,853

12

Profit before tax

 

1,441,656

995,826

Tax on profit

8

(365,989)

209,827

Profit for the financial year

 

1,075,667

1,205,653

No Statement of Comprehensive Income has been presented as there is no movement through other comprehensive income for the year

 

O.C.L. Facades Limited

(Registration number: 04890550)
Balance Sheet as at 30 June 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

9

327,497

446,765

Current assets

 

Stocks

10

75,000

144,428

Debtors

11

7,651,338

6,336,856

Cash at bank and in hand

 

560,853

2,643,079

 

8,287,191

9,124,363

Creditors: Amounts falling due within one year

13

(4,370,680)

(4,928,719)

Net current assets

 

3,916,511

4,195,644

Total assets less current liabilities

 

4,244,008

4,642,409

Provisions for liabilities

16

(35,031)

(9,099)

Net assets

 

4,208,977

4,633,310

Capital and reserves

 

Called up share capital

100

100

Profit and loss account

4,208,877

4,633,210

Shareholders' funds

 

4,208,977

4,633,310



 
Approved and authorised by the Board on 17 November 2023 and signed on its behalf by:
 

.........................................

T J Harris

Director

 

O.C.L. Facades Limited

Statement of Changes in Equity for the Year Ended 30 June 2023

Share capital
£

Profit and loss account
£

Total
£

At 1 July 2022

100

4,633,210

4,633,310

Profit for the year

-

1,075,667

1,075,667

Total comprehensive income

-

1,075,667

1,075,667

Dividends

-

(1,500,000)

(1,500,000)

At 30 June 2023

100

4,208,877

4,208,977

Share capital
£

Profit and loss account
£

Total
£

At 1 July 2021

100

3,427,557

3,427,657

Profit for the year

-

1,205,653

1,205,653

Total comprehensive income

-

1,205,653

1,205,653

At 30 June 2022

100

4,633,210

4,633,310

 

O.C.L. Facades Limited

Statement of Cash Flows for the Year Ended 30 June 2023

Note

2023
 £

2022
 £

Cash flows from operating activities

Profit for the year

 

1,075,667

1,205,653

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

4

116,217

112,078

Profit on disposal of property plant and equipment

(20,193)

(6,746)

Finance income

(2,853)

(12)

Corporation tax

8

365,989

(209,827)

 

1,534,827

1,101,146

Working capital adjustments

 

Decrease/(increase) in stock

10

69,428

(60,789)

Increase in trade and other debtors

11

(1,533,423)

(1,797,997)

(Decrease)/increase in trade and other creditors

13

(857,883)

1,620,148

Cash generated from operations

 

(787,051)

862,508

Corporation tax received/(paid)

8

178,728

(225,121)

Net cash flow from operating activities

 

(608,323)

637,387

Cash flows from investing activities

 

Interest received

2,853

12

Acquisitions of property plant and equipment

(7,590)

(195,790)

Proceeds from sale of property plant and equipment

 

30,834

11,251

Net cash flows from investing activities

 

26,097

(184,527)

Cash flows from financing activities

 

Dividends paid

17

(1,500,000)

-

Net (decrease)/increase in cash and cash equivalents

 

(2,082,226)

452,860

Cash and cash equivalents at 1 July

 

2,643,079

2,190,219

Cash and cash equivalents at 30 June

 

560,853

2,643,079

 

O.C.L. Facades Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The principal activity of the company is disclosed in the Strategic Report.

The address of its registered office and principal place of business is:
Chester House
Chester Hall Lane
BASILDON
Essex
SS14 3BG

2

Accounting policies

Basis of preparation

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, Financial Reporting Standard 102 - 'The Financial Reporting standard applicable in the United Kingdom and Republic of Ireland' , and with the Companies Act 2006.

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.

 

O.C.L. Facades Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies management is required to make judgements, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historic experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

Specifically, judgements and estimates are required in determining the useful economic lives of fixed assets, recoverability of trade debtors and valuations on long term contracts.

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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Profit is recognised on long-term contracts, if the final outcome can be assessed with reasonable certainty, by including in the profit and loss account turnover and related costs as a contract activity progresses. Turnover is calculated as that proportion of total contract value which costs to date bear to total expected costs for that contract.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in income over the period in which the related costs are recognised. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Defined contribution pension obligation

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Research and development
Expenditure on research and development is expensed in the year in which it is incurred.

 

O.C.L. Facades Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Computer equipment

33% reducing balance

Fixtures, fittings & equipment

25% reducing balance

Plant and machinery

25% reducing balance

Motor vehicles

25% reducing balance

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Financial assets are classified as financial assets at fair value through profit or loss, loans and debtors, held-to-maturity investments, available-for-sale financial assets, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial assets at initial recognition.

Financial liabilities are classified as financial liabilities at fair value through profit and loss, loans and borrowings, trade and other creditors, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial liabilities at initial recognition.

 Recognition and measurement
All financial instruments are recognised initially at fair value plus transaction costs. Thereafter financial instruments are stated at amortised cost using the effective interest rate method (less impairment where appropriate) unless the effect of discounting would be immaterial in which case they are stated at cost (less impairment where appropriate). The exception to this are those financial instruments where it is a requirement to continue recording them at fair value through profit and loss.

 

Impairment
Financial assets are assessed for indicators of impairment at the end of each reporting period. Financial assets are considered to be impaired when 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 of the asset have been affected.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

 

O.C.L. Facades Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

Trade and other debtors

Trade and other debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the contract.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obselete and slow-moving items.

Trade and other creditors

Trade and other creditors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, except where the effect of discounting would be immaterial. In such cases creditors are stated at transaction price.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distributions to the company’s shareholders are recognised as liabilities in the financial statements in the reporting period in which the dividends are declared.

3

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Government grants

-

3,833

 

O.C.L. Facades Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

4

Operating profit

Arrived at after charging/(crediting)

2023
 £

2022
 £

Depreciation expense

116,217

112,078

Foreign exchange gains

8,810

2,474

Profit on disposal of property, plant and equipment

(20,193)

(6,746)

5

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

2,810,036

1,932,340

Social security costs

354,324

231,620

Pension costs, defined contribution scheme

180,589

41,853

3,344,949

2,205,813

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2023
No.

2022
No.

Site staff

18

13

Administration and support

29

25

47

38

 

O.C.L. Facades Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

6

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

389,209

252,740

Contributions paid to money purchase schemes

22,082

5,749

411,291

258,489

In respect of the highest paid director:

2023
£

2022
£

Remuneration

206,015

175,695

Company contributions to money purchase pension schemes

22,082

-

7

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

10,500

10,000


 

8

Taxation

Tax charged/(credited) in the profit and loss account

2023
 £

2022
 £

Current taxation

UK corporation tax

340,057

157,126

UK corporation tax adjustment to prior periods

-

(363,352)

340,057

(206,226)

Deferred taxation

Arising from origination and reversal of timing differences

25,932

(3,601)

Tax expense/(receipt) in the profit and loss account

365,989

(209,827)

 

O.C.L. Facades Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 25% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,441,656

995,826

Corporation tax at standard rate of 25%

360,414

189,207

Effect of expense not deductible in determining taxable profit (tax loss)

2,603

2,938

Deferred tax

25,932

(3,601)

Decrease in UK current tax from adjustment for prior periods

-

(363,352)

Tax increase/(decrease) from effect of capital allowances and depreciation

19,528

(35,019)

Tax increase from leased cars restriction

149

-

Tax decrease arising from group relief

(2,015)

-

Tax increase from general provisions adjustment

27,355

-

Tax decrease from changes in tax provisions due to legislation

(67,977)

-

Total tax charge/(credit)

365,989

(209,827)


The main rate of corporation tax increased on 1 April 2023 from 19% to 25%. The company's hybrid corporation tax rate for the year is 20.5%. Amounts included in changes in tax provisions due to legislation comprise the impact of the hybrid rate applying.

 

O.C.L. Facades Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

9

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Computer equipment
 £

Plant and machinery
 £

Total
£

Cost or valuation

At 1 July 2022

167,543

462,378

302,105

20,773

952,799

Additions

-

-

7,590

-

7,590

Disposals

-

(68,500)

-

-

(68,500)

At 30 June 2023

167,543

393,878

309,695

20,773

891,889

Depreciation

At 1 July 2022

52,372

230,991

213,097

9,574

506,034

Charge for the year

28,792

54,247

30,378

2,800

116,217

Eliminated on disposal

-

(57,859)

-

-

(57,859)

At 30 June 2023

81,164

227,379

243,475

12,374

564,392

Carrying amount

At 30 June 2023

86,379

166,499

66,220

8,399

327,497

At 30 June 2022

115,171

231,387

89,008

11,199

446,765

10

Stocks

2023
£

2022
£

Raw materials

75,000

144,428

11

Debtors

2023
£

2022
£

Amounts owed by group undertakings

2,085,117

588,231

Other debtors

3,483,963

2,856,369

Prepayments

2,082,258

2,673,315

Corporation tax asset

-

218,941

7,651,338

6,336,856

 

O.C.L. Facades Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

12

Cash and cash equivalents

2023
£

2022
£

Cash on hand

236

550

Cash at bank

560,617

2,642,529

560,853

2,643,079

13

Creditors

2023
 £

2022
 £

Due within one year

Trade creditors

963,234

2,661,091

Amounts due to group undertakings

-

234,811

Social security and other taxes

292,208

183,038

Other creditors

847,428

719,816

Accruals and deferred income

1,967,966

1,129,963

Corporation tax

299,844

-

4,370,680

4,928,719

14

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary of £1 each

100

100

100

100

         
 

O.C.L. Facades Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

15

Obligations under operating leases

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

377,960

364,490

Later than one year and not later than five years

590,142

797,643

968,102

1,162,133

16

Deferred tax and other provisions

Deferred tax
£

Total
£

At 1 July 2022

9,099

9,099

Increase (decrease) in existing provisions

25,932

25,932

At 30 June 2023

35,031

35,031

The deferred tax balance is measured at 25%.

The main corporation tax rate increased to 25% from 1 April 2023.

17

Dividends

   

2023

 

2022

   

£

 

£

Interim dividend of £15,000 (2022 - £Nil) per ordinary share

 

1,500,000

 

-

         
 

O.C.L. Facades Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

18

Related party transactions

Transactions with directors

2023

At 1 July 2022
£

Advances to director
£

Repayments by director
£

At 30 June 2023
£

J T Harris

Directors Loan Account

12,179

140,649

(133,241)

19,587

         

T J Harris

Directors Loan Account

-

257,484

-

257,484

         

2022

At 1 July 2021
£

Advances to director
£

At 30 June 2022
£

J T Harris

Directors Loan Account

-

12,179

12,179

       
     

 

Loans to directors are provided interest free and without security.

Summary of transactions with other related parties

The company has taken advantage of the exemption in FRS 102 33.1A "Related Party Disclosures" from disclosing transactions with other members of the group.

At the balance sheet date, the company owed £182,914 to O.C.L. Property Co Limited (2022: £186,129), a company under common control. During the period the company incurred rental charges of £282,000 from O.C.L. Property Co Limited (2022: £282,000).

At the balance sheet date, the company owed £107,030 to O.C.L. Management Services Limited (2022: £107,980), a company under common control.

At the balance sheet date, the company was owed £1,510,440 by O.C.L. Reclad Limited (2022: £186,643), a company under common control. During the year O.C.L. Facades Limited received £1,440,875 in service charge income from O.C.L Reclad Limited (2022: £210,570)

Loans to/from companies under common control are made interest free and without security.

 

O.C.L. Facades Limited

Notes to the Financial Statements for the Year Ended 30 June 2023

19

Parent and ultimate parent undertaking

Relationship between entity and parents

The parent of the smallest group in which these financial statements are consolidated is O.C.L. Holdings Limited, incorporated in England.

The address of O.C.L. Holdings Limited is:
Chester House
Chester Hall Lane
Basildon
Essex
SS14 3BG

Its financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ.

Control

The ultimate controlling parties are Mr and Mrs T J Harris by way of their combined shareholdings.