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Company Registration Number 02641120























CUBBY CONSTRUCTION LIMITED





FINANCIAL STATEMENTS





 31 MAY 2023
























img0d0d.png

 
CUBBY CONSTRUCTION LIMITED
 

COMPANY INFORMATION


Directors
J D Cubby 
S A Cubby 
T J Cubby 




Registered number
02641120



Registered office
Units H & L
Knights Drive

Kingmoor Park Central

Carlisle

Cumbria

CA6 4SG




Independent auditors
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditors

James Watson House

Montgomery Way

Rosehill

Carlisle

Cumbria

CA1 2UU





 
CUBBY CONSTRUCTION LIMITED
 

CONTENTS



Page
Group Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Consolidated Statement of Comprehensive Income
9
Consolidated Balance Sheet
10 - 11
Company Balance Sheet
12 - 13
Consolidated Statement of Changes in Equity
14 - 15
Company Statement of Changes in Equity
16 - 17
Consolidated Statement of Cash Flows
18 - 19
Consolidated Analysis of Net Debt
20
Notes to the Financial Statements
21 - 40


 
CUBBY CONSTRUCTION LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023

Introduction
 
The directors present their strategic report for the year ended 31 May 2023.
The principal activities of the group continued to be that of a civil engineering and construction throughout the period.

Business review
 
The aim of this statement is to give clarity on how the team at Cubby Construction through constant improvement are continuing to deliver on the objectives set out in last year. With a long-term vision and a consistent approach, our core values and focus are becoming embedded. Cubby Construction were able to post pre-tax profits of £582K, a £1.21m turnaround in twelve months.
In the short to medium term our primary focus remains on continued significant internal improvement through accountability, informed data driven decisions, simplified process followed by all, a whole company approach to highlighting issues preventing progress and dealing with them in a robust prioritised manner. From these accounts it can been seen this strategy allowed our gross margin to increase from 10% to 15% in the period. While a challenge, a further increase of 2% is not unrealistic and would see our net profit double.
While this journey commenced in 2020 we believe the momentum created will continue to build in the forthcoming year in spite of the obstacles faced by the construction industry. Cubby Construction are well placed to understand and respond to challenges faced through internal data and the ability to model and forecast the effects of current and future challenges be they regional, national, or international. 
The responsive yet focused one team company approach has allowed us concentrate on the right client and project for the business which has in turn created the strongest order book value to date both current and future. But most significant is, it is the right type of work allowing the company to deliver quality and value in a mutually beneficial manner to our clients. Alongside this the future opportunities from both our existing clients and new continue to grow.
With a focused order book and through the disposal of non-core business assets (post year-end) we have reduced core debt, increased working capital whilst still being able to invest in new equipment and, most essentially, in our greatest asset: our people. This has and continues through considered recruitment, calculated core team up skilling, and significant improvement in our apprenticeship and graduate programs, to ensure we have the right people in the right seats to deliver the needs of modern construction business and our projects both short and long term. 
To conclude, despite the challenges historic, current, and future, Cubby Constructions intends through the alignment of values, focus, embedded vision, great people, data, opportunity and energy to continue on our journey of “Building our Future.”

Page 1

 
CUBBY CONSTRUCTION LIMITED
 

GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023

Principal risks and uncertainties
 
The directors consider the principal risks and uncertainties faced by the group to be those in relation to contracting, the economic environment including the effects of Brexit and Covid-19, cash flow, and credit risk. 
Contracting
Given that contracting involves forecasting future costs in order to agree a price for works that is often fixed to an extent, there is inherently a risk involved, in that the profitability of those contracts cannot be known at the point at which the contract is entered into. 
The directors manage this risk by ensuring that the estimating department is well-resourced and expertly trained through the ongoing monitoring of contract performance, agreeing escalator clauses in contracts where possible, and ensuring that margins on contracts are robust.
Economic environment including Brexit, Covid-19 and inflation
The current economic environment presents challenges. Supply of some inputs, particularly labour and raw materials, is tight and this is leading to both inflation in the prices of those inputs and shortages of those inputs in places. Since the emergence from the pandemic, demand for the services of the group has been robust. However, it is unclear what impact the inflationary environment will have on demand in future. 
The directors monitor the economic environment and particularly input prices and the market for contracts closely, so that they can respond appropriately to changes in the environment. 
Cash flow
Contracting requires significant investments in working capital, and is to an extent seasonal with lower activity levels at certain times of year. This presents a cash flow risk.
The directors manage the cash flow risk through ongoing cash flow forecasting, monitoring the adequacy of facilities against anticipated requirements, seeking to reduce working capital requirements where possible via utilising stock and closely managing debtors, and controlling costs.
Credit
The group is exposed to credit losses from its customers. 
The directors manage this risk by applying strict credit checks, ensuring that stage payments are included in contracts, and closely managing debtors. 

Financial key performance indicators

2023
2022
      £'000
      £'000
Revenue

24,041

20,831
 
Gross Profit

3,601

2,105
 
Profit/(loss) before tax

582

(630)
 

-

-
 
Gross profit margin %

15

10
 


This report was approved by the board and signed on its behalf.



T J Cubby
Director

Date: 9 January 2024

Page 2

 
CUBBY CONSTRUCTION LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023

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

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £1,035,849 (2022 - loss £408,885).

Directors

The directors who served during the year were:

J D Cubby 
S A Cubby 
T J Cubby 

Page 3

 
CUBBY CONSTRUCTION LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023


Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
• so far as the director is aware, there is no relevant audit information of which the Company and the    Group's auditors are unaware, and
• the director has taken all the steps that ought to have been taken as a director in order to be aware of any   relevant audit information and to establish that the Company and the Group's auditors are aware of that    information.

Post balance sheet events

The company is undergoing a process to refinance its borrowing with a new banking partner. This is further discussed in the going concern accounting policy, note 2.3.

Auditors

The auditorsArmstrong Watson Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





T J Cubby
Director

Date: 9 January 2024

Page 4

 
CUBBY CONSTRUCTION LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBBY CONSTRUCTION LIMITED
 

Opinion


We have audited the financial statements of Cubby Construction Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 May 2023, which comprise the Group Statement of Comprehensive Income, the Group and Company Balance Sheets, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 May 2023 and of the Group's 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 5

 
CUBBY CONSTRUCTION LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBBY CONSTRUCTION LIMITED (CONTINUED)


Other information


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


We have nothing to report in this regard.


Opinion on other matters 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the 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 the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 Directors' Responsibilities Statement set out on page 3, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
CUBBY CONSTRUCTION LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBBY CONSTRUCTION LIMITED (CONTINUED)


Auditors' 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 Auditors' 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 Group 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:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
• we identified the laws and regulations applicable to the company through discussions with directors and other management;
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
• identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
• performed analytical procedures as a risk assessment tool to identify any unusual or unexpected relationships;
• tested journal entries to identify unusual transactions;
• tested the operating effectiveness of key controls over purchase cycles on a sample basis; and
• reviewed the application of accounting policies.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
• agreeing financial statement disclosures to underlying supporting documentation; and
• enquiring of management as to actual and potential litigation and claims.


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 Auditors' Report.
Page 7

 
CUBBY CONSTRUCTION LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CUBBY CONSTRUCTION LIMITED (CONTINUED)




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 2006Our 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 Auditors' 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.





Joanna Gray (Senior Statutory Auditor)
for and on behalf of
Armstrong Watson Audit Limited
Chartered Accountants & Statutory Auditors
Carlisle

22 January 2024
Page 8

 
CUBBY CONSTRUCTION LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023

2023
2022
Note
£
£

  

Turnover
 4 
24,041,119
20,830,686

Cost of sales
  
(20,439,993)
(18,725,238)

Gross profit
  
3,601,126
2,105,448

Administrative expenses
  
(2,934,861)
(3,021,580)

Other operating income
 5 
30,332
370,492

Operating profit/(loss)
 6 
696,597
(545,640)

Interest receivable and similar income
 10 
31
-

Interest payable and similar expenses
 11 
(114,311)
(84,495)

Profit/(loss) before taxation
  
582,317
(630,135)

Tax on profit/(loss)
 12 
453,532
221,250

Profit/(loss) for the financial year
  
1,035,849
(408,885)

  

Total comprehensive income for the year
  
1,035,849
(408,885)

Profit/(loss) for the year attributable to:
  

Owners of the parent Company
  
1,035,849
(408,885)

  
1,035,849
(408,885)

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
1,035,849
(408,885)

  
1,035,849
(408,885)

The notes on pages 21 to 40 form part of these financial statements.

Page 9

 
CUBBY CONSTRUCTION LIMITED
REGISTERED NUMBER: 02641120

CONSOLIDATED BALANCE SHEET
AS AT 31 MAY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
4,469,688
4,886,811

Investment property
 16 
400,000
400,000

  
4,869,688
5,286,811

Current assets
  

Stocks
 17 
440,607
435,881

Debtors: amounts falling due within one year
 18 
4,577,411
3,145,007

Cash at bank and in hand
 19 
97,864
478,231

  
5,115,882
4,059,119

Creditors: amounts falling due within one year
 20 
(5,768,248)
(5,318,012)

Net current liabilities
  
 
 
(652,366)
 
 
(1,258,893)

Total assets less current liabilities
  
4,217,322
4,027,918

Creditors: amounts falling due after more than one year
 21 
(441,216)
(735,799)

Provisions for liabilities
  

Deferred taxation
 24 
-
(242,000)

Other provisions
 25 
-
(85,000)

  
 
 
-
 
 
(327,000)

Net assets
  
3,776,106
2,965,119


Capital and reserves
  

Called up share capital 
 26 
100,002
100,002

Revaluation reserve
 27 
1,310,607
1,350,607

Profit and loss account
 27 
2,365,497
1,514,510

Equity attributable to owners of the parent Company
  
3,776,106
2,965,119


Page 10

 
CUBBY CONSTRUCTION LIMITED
REGISTERED NUMBER: 02641120

CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 January 2024.




J D Cubby
T J Cubby
Director
Director



S A Cubby
Director




The notes on pages 21 to 40 form part of these financial statements.

Page 11

 
CUBBY CONSTRUCTION LIMITED
REGISTERED NUMBER: 02641120

COMPANY BALANCE SHEET
AS AT 31 MAY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
4,391,262
4,829,531

Investments
 15 
1
1

Investment property
 16 
400,000
400,000

  
4,791,263
5,229,532

Current assets
  

Stocks
 17 
416,324
409,325

Debtors: amounts falling due within one year
 18 
3,950,175
2,719,912

Cash at bank and in hand
 19 
44,466
413,775

  
4,410,965
3,543,012

Creditors: amounts falling due within one year
 20 
(5,424,594)
(5,031,160)

Net current liabilities
  
 
 
(1,013,629)
 
 
(1,488,148)

Total assets less current liabilities
  
3,777,634
3,741,384

  

Creditors: amounts falling due after more than one year
 21 
(433,910)
(723,537)

Provisions for liabilities
  

Deferred taxation
 24 
-
(264,000)

Other provisions
 25 
-
(85,000)

  
 
 
-
 
 
(349,000)

Net assets
  
3,343,724
2,668,847


Capital and reserves
  

Called up share capital 
 26 
100,002
100,002

Revaluation reserve
 27 
1,310,607
1,350,607

Profit and loss account brought forward
  
1,218,238
1,942,341

Profit/(loss) for the year
  
899,739
(556,050)

Other changes in the profit and loss account

  

(184,862)
(168,053)

Profit and loss account carried forward
  
1,933,115
1,218,238

  
3,343,724
2,668,847


Page 12

 
CUBBY CONSTRUCTION LIMITED
REGISTERED NUMBER: 02641120

COMPANY BALANCE SHEET (CONTINUED)
AS AT 31 MAY 2023

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 9 January 2024.


J D Cubby
T J Cubby
Director
Director

S A Cubby
Director


The notes on pages 21 to 40 form part of these financial statements.

Page 13

 
CUBBY CONSTRUCTION LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 June 2022
100,002
1,350,607
1,514,510
2,965,119


Comprehensive income for the year

Profit for the year

-
-
1,035,849
1,035,849

Deficit on revaluation of freehold property
-
(30,000)
-
(30,000)


Other comprehensive income for the year
-
(30,000)
-
(30,000)


Total comprehensive income for the year
-
(30,000)
1,035,849
1,005,849


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(194,862)
(194,862)

Transfer to/from profit and loss account
-
(10,000)
10,000
-


Total transactions with owners
-
(10,000)
(184,862)
(194,862)


At 31 May 2023
100,002
1,310,607
2,365,497
3,776,106


The notes on pages 21 to 40 form part of these financial statements.

Page 14

 
CUBBY CONSTRUCTION LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2022


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 June 2021
100,002
1,368,554
2,091,448
3,560,004


Comprehensive income for the year

Loss for the year

-
-
(408,885)
(408,885)


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
(408,885)
(408,885)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(186,000)
(186,000)

Transfer to/from profit and loss account
-
(17,947)
17,947
-


Total transactions with owners
-
(17,947)
(168,053)
(186,000)


At 31 May 2022
100,002
1,350,607
1,514,510
2,965,119


The notes on pages 21 to 40 form part of these financial statements.

Page 15

 
CUBBY CONSTRUCTION LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 June 2022
100,002
1,350,607
1,218,238
2,668,847


Comprehensive income for the year

Profit for the year

-
-
899,739
899,739

Deficit on revaluation of freehold property
-
(30,000)
-
(30,000)


Other comprehensive income for the year
-
(30,000)
-
(30,000)


Total comprehensive income for the year
-
(30,000)
899,739
869,739


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(194,862)
(194,862)

Transfer to/from profit and loss account
-
(10,000)
10,000
-


Total transactions with owners
-
(10,000)
(184,862)
(194,862)


At 31 May 2023
100,002
1,310,607
1,933,115
3,343,724


The notes on pages 21 to 40 form part of these financial statements.

Page 16

 
CUBBY CONSTRUCTION LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2022


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 June 2021
100,002
1,368,554
1,942,341
3,410,897


Comprehensive income for the year

Loss for the year

-
-
(556,050)
(556,050)


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
(556,050)
(556,050)


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(186,000)
(186,000)

Transfer to/from profit and loss account
-
(17,947)
17,947
-


Total transactions with owners
-
(17,947)
(168,053)
(186,000)


At 31 May 2022
100,002
1,350,607
1,218,238
2,668,847


The notes on pages 21 to 40 form part of these financial statements.

Page 17

 
CUBBY CONSTRUCTION LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023

2023
2022
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
1,035,849
(408,885)

Adjustments for:

Depreciation of tangible assets
406,561
448,089

Loss on disposal of tangible assets
(50,899)
(85,766)

Interest paid
114,280
84,495

Movement in tax charge
(453,532)
(221,250)

(Increase) in stocks
(4,726)
(103,869)

(Increase)/decrease in debtors
(1,220,871)
1,346,130

Increase/(decrease) in creditors
760,064
(53,701)

(Decrease) in provisions
(85,000)
(110,557)

Transfer from revaluation reserve
(30,000)
-

Net cash generated from operating activities

471,726
894,686


Cash flows from investing activities

Purchase of tangible fixed assets
(523,318)
(46,727)

Sale of tangible fixed assets
584,779
59,402

HP interest paid
(76,141)
(54,754)

Net cash from investing activities

(14,680)
(42,079)

Cash flows from financing activities

Repayment of loans
-
(554,473)

Repayment of other loans
(238,809)
-

Repayment of/new finance leases
(103,412)
413,724

Dividends paid
(194,862)
(186,000)

Interest paid
(38,139)
(29,741)

Associates interest paid
-
(72,400)

Net cash used in financing activities
(575,222)
(428,890)

Net (decrease)/increase in cash and cash equivalents
(118,176)
423,717
Page 18

 
CUBBY CONSTRUCTION LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023


2023
2022

£
£



Cash and cash equivalents at beginning of year
(187,343)
(611,060)

Cash and cash equivalents at the end of year
(305,519)
(187,343)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
97,864
478,231

Bank overdrafts
(403,383)
(665,574)

(305,519)
(187,343)


The notes on pages 21 to 40 form part of these financial statements.

Page 19

 
CUBBY CONSTRUCTION LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2023





At 1 June 2022
Cash flows
New finance leases
At 31 May 2023
£

£

£

£

Cash at bank and in hand

478,231

(380,367)

-

97,864

Bank overdrafts

(665,574)

262,191

-

(403,383)

Other debts

(208,809)

208,809

-

-

Debt due within 1 year

(267,171)

104,516

-

(162,655)

Finance leases

(912,848)

417,464

(314,052)

(809,436)


(1,576,171)
612,613
(314,052)
(1,277,610)

The notes on pages 21 to 40 form part of these financial statements.

Page 20

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

1.


General information

Cubby Construction Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page. 
The principal activity of the company and group is that of a construction contractor. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.

 
2.3

Going concern

The group had net assets of £3,736,279 and net current liabilities of £692,193 at the balance sheet date, following a consolidated profit of £996,022.  
The group has traded through a difficult past couple of years which was impacted by Covid-19. The has returned to profitability in the year.
The directors have reviewed cash flow forecasts prepared for the coming year, which show headroom against current and anticipated future facilities. The pipeline for future work remains robust. 
The group is pursuing a new banking partner. The directors forecast that financing at the requisite desired levels will be achieved. The current banking partner has indicated its willingness to continue to lend to the company until such time as new finance is secured. 
The directors are also pursuing the sale of two properties in order to improve the net debt position.
Given the above, the directors have prepared the accounts on the going concern basis. 

Page 21

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Revenue from long-term contracts is recognised according to the stage of completion of that contract, with reference to the proportion of work done (output method). Profit is recognised on only where the outcome of the contract can be measured reliably. Amounts receivable on contracts, included in debtors, is stated at the valuation of work performed, including profit where applicable, to the extent that it is probable that these amounts will be recovered, less any stage payments received. 
Where contracts are anticipated to be loss making, the expected loss is recognised in full as soon as that loss is foreseen.
Revenue from the provision of services, where these do not constitute long-term contractual arrangements, are recognised in accordance with the stage of completion of those services. 
Revenue from the provision of goods is recognised on dispatch.
 

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Consolidated Statement of Comprehensive Income in the same period as the related expenditure.

 
2.7

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.8

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.9

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 22

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.10

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.11

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

  
2.12

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. 
Goodwill is amortised on a straight line basis to the Consolidated Statement of Comprehensive Income over its useful economic life. The useful economic life of goodwill was determined to be one year in a previous period, and as such this value has now been fully amortised. 

Page 23

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.13

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, as detailed below.

Depreciation is provided on the following basis:

Freehold property
-
2%
straight line
Plant and machinery
-
15%
reducing balance
Motor vehicles
-
15%
reducing balance

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.14

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.15

Investment property

Investment property is carried at fair value determined annually by the directors, with external valuations undertaken periodically, and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.16

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Page 24

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.17

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.18

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.19

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.20

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.21

Provisions for liabilities

Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

 
2.22

Financial instruments

The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

 
2.23

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 25

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Judgments
Provision for bad or doubtful debts
Management provide for bad or doubtful debts when there is evidence that the asset will not be recoverable. Debts are reviewed individually, with no standard policy being applied, owing to the relatively low level of bad debts historically. 
Estimates
Land and building revaluation (including investment property)
Property valuations have been undertaken by external valuers, with reference to the sale prices of similar properties in the locality of the properties being valued. The price a property would attract is inherently unknowable unless that property is sold, and therefore there is a degree of estimation involved, particularly as a result of changes in the market since the reference property sales, and differences between the comparator properties and those being valued.
Contracts
Revenue is recognised in line with the estimated stage of completion of the contract. The stage of completion is calculated with reference to progress on the specified works within the contract (also known as the Output Method).
Where available, internal and external valuations and certifications by Quantity Surveyors are used to determine the stage of completion. Where these are not available or are not coterminous with the reporting date, management estimate the stage of completion using knowledge of the contract considering, amongst other factors, the days on which work was performed, time elapsed between valuations, key milestones within contracts, and the anticipated final margin on the contract.
The stage of completion of contracts is inherently uncertain and requires estimation.
Where contracts are anticipated to be loss-making after the reporting date, the loss is recognised in full as a provision. Determining whether a contract will be loss-making involves estimating future costs, which is inherently uncertain.
Stock provision
Stock is held at the lower of cost and net realisable value. Where the net realisable value is considered to be lower than the cost, a provision is made against the cost of the stock. The amount of this provision is assessed with reference to factors such as the volume of usage of the stock line and estimated scrap or direct sales value. Calculating this provision involves predicting future events, and as a result there is inherent uncertainty in this estimate.  


4.


Turnover

The whole of the turnover is attributable to the principal activity of the group, which is that of a construction contractor. All turnover arose in the United Kingdom.

All turnover arose within the United Kingdom.

Page 26

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

5.


Other operating income

2023
2022
£
£

Construction Industry Training Board grant income
11,375
5,814

Net rents receivable
16,868
19,073

Coronavirus Job Retention Scheme grant income
-
2,073

Other income
2,089
343,532

30,332
370,492



6.


Operating profit/(loss)

The operating profit/(loss) is stated after charging:

2023
2022
£
£

Other operating lease rentals
120,793
119,275


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
16,800
25,775

Page 27

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
5,610,953
5,499,794
4,465,800
4,447,841

Social security costs
616,072
567,416
507,019
469,451

Cost of defined contribution scheme
202,014
184,315
174,513
158,023

6,429,039
6,251,525
5,147,332
5,075,315


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2023
        2022
        2023
        2022
            No.
            No.
            No.
            No.









Directors
3
3
3
3



Production
123
124
92
95



Administration
31
36
24
28

157
163
119
126


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
32,372
35,971

32,372
35,971



10.


Interest receivable and similar income

2023
2022
£
£


Other interest receivable
31
-

31
-

Page 28

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

11.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
38,170
29,700

Other loan interest payable
-
41

Finance leases and hire purchase contracts
76,141
54,754

114,311
84,495


12.


Taxation


2023
2022
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
(453,532)
(221,250)

Total deferred tax
(453,532)
(221,250)


Tax on profit/(loss)
(453,532)
(221,250)

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - lower than) the standard rate of corporation tax in the UK of 19% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
582,316
(630,137)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
110,640
(119,726)

Effects of:


Capital allowances for year in excess of depreciation
(564,172)
(101,524)

Total tax charge for the year
(453,532)
(221,250)


Factors that may affect future tax charges

In May 2021 the UK Parliament substantively enacted an increase in the rate of Corporation Tax to 25% which will apply from 1 April 2023. This rate has been applied to the deferred tax liability.

Page 29

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

13.


Dividends

2023
2022
£
£


Dividends on ordinary shares
194,862
186,000

194,862
186,000

Page 30

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

14.


Tangible fixed assets

Group






Property
Plant and machinery
Motor vehicles
Total

£
£
£
£



Cost or valuation


At 1 June 2022
2,570,720
4,052,417
1,501,176
8,124,313


Additions
-
511,141
106,867
618,008


Disposals
(470,000)
(148,192)
(90,900)
(709,092)



At 31 May 2023

2,100,720
4,415,366
1,517,143
8,033,229



Depreciation


At 1 June 2022
22,455
2,234,711
980,336
3,237,502


Charge for the year on owned assets
10,000
312,105
74,212
396,317


Charge for the year on financed assets
-
87,136
17,799
104,935


Disposals
-
(127,303)
(47,910)
(175,213)



At 31 May 2023

32,455
2,506,649
1,024,437
3,563,541



Net book value



At 31 May 2023
2,068,265
1,908,717
492,706
4,469,688



At 31 May 2022
2,548,265
1,817,706
520,840
4,886,811

The group's properties have been revalued.
The properties at Kingmoor Park, Carlisle which have a historical cost of £1,314,521 and aggregate depreciation of £322,169 were valued at £2,345,000 on an open market basis by Walton Goodland, Chartered Surveyors on 24th November 2021. The directors confirm this valuation remains appropriate for the year ended 31 May 2023.
Land at Irthington which has a historical cost of £48,789 was valued at £225,720 on an open market basis by Ian Ritchie Land Management on 11th November 2021. The directors confirm this valuation remains appropriate for the year ended 31 May 2023.
Land included at £865,720 (2022 - £1,335,720) is not depreciated. 
Fixed assets include assets under hire purchase and finance leases with a net book value of £780,432 (2022 - £968,248). 

Page 31

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

           14.Tangible fixed assets (continued)


Company






Property
Plant and machinery
Motor vehicles
Total

£
£
£
£

Cost or valuation


At 1 June 2022
2,570,720
4,120,033
1,340,562
8,031,315


Additions
-
414,602
68,883
483,485


Disposals
(470,000)
(148,192)
(90,900)
(709,092)



At 31 May 2023

2,100,720
4,386,443
1,318,545
7,805,708



Depreciation


At 1 June 2022
22,455
2,317,797
861,532
3,201,784


Charge for the year on owned assets
10,000
216,850
60,587
287,437


Charge for the year on financed assets
-
82,639
17,799
100,438


Disposals
-
(127,303)
(47,910)
(175,213)



At 31 May 2023

32,455
2,489,983
892,008
3,414,446



Net book value



At 31 May 2023
2,068,265
1,896,460
426,537
4,391,262



At 31 May 2022
2,548,265
1,802,236
479,030
4,829,531

The group's properties have been revalued.
The properties at Kingmoor Park, Carlisle which have a historical cost of £1,314,521 and aggregate depreciation of £322,169 were valued at £2,345,000 on an open market basis by Walton Goodland, Chartered Surveyors on 24th November 2021. The directors confirm this valuation remains appropriate for the year ended 31 May 2023.
Land at Irthington which has a historical cost of £48,789 was valued at £225,720 on an open market basis by Ian Ritchie Land Management on 11th November 2021. The directors confirm this valuation remains appropriate for the year ended 31 May 2023.
Land included at £865,720 (2022 - £1,335,720) is not depreciated. 
Fixed assets include assets under hire purchase and finance leases with a net book value of £769,939 (2022 - £938,238). 






Page 32

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

15.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 June 2022
1



At 31 May 2023
1





Subsidiary undertaking


The following was a subsidiary undertaking of the Company:

Name

Registered office

Class of shares

Holding

Finlaysons Contracts Limited
Finlaysons Contracts Limited, Botany Mill/Roxburgh St, Galashiels, Scotland, TD1 1PB
Ordinary
100%

The aggregate of the share capital and reserves as at 31 May 2023 and the profit or loss for the year ended on that date for the subsidiary undertaking were as follows:

Name
Aggregate of share capital and reserves
Profit/
(Loss)

Finlaysons Contracts Limited
432,381
136,110

Page 33

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

16.


Investment property

Group and Company


Freehold investment property

£



Valuation


At 1 June 2022
400,000



At 31 May 2023
400,000

The 2023 valuations were made by Walton Goodland Chartered Surveyors in 2022, on an open market value for existing use basis.





17.


Stocks

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Raw materials and consumables
440,607
435,881
416,324
409,325

440,607
435,881
416,324
409,325



18.


Debtors

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
595,067
770,370
124,251
516,033

Amounts owed by group undertakings
-
-
136
27,953

Other debtors
196,726
392,720
155,069
320,579

Prepayments and accrued income
156,353
49,826
131,005
27,161

Amounts recoverable on long-term contracts
3,417,733
1,932,091
3,321,287
1,828,186

Deferred taxation
211,532
-
218,427
-

4,577,411
3,145,007
3,950,175
2,719,912


Page 34

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

19.


Cash and cash equivalents

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Cash at bank and in hand
97,864
478,231
44,466
413,775

Less: bank overdrafts
(403,383)
(665,574)
(403,383)
(665,574)

(305,519)
(187,343)
(358,917)
(251,799)



20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank overdrafts
403,383
665,574
403,383
665,574

Bank loans
-
30,000
-
30,000

Trade creditors
2,447,085
2,011,032
2,267,919
1,831,498

Amounts owed to related companies
94,466
71,862
94,466
71,862

Other taxation and social security
763,022
803,590
673,831
730,081

Obligations under finance lease and hire purchase contracts
368,220
385,857
363,029
380,666

Other creditors
462,937
433,543
448,273
419,942

Accruals and deferred income
1,229,135
916,554
1,173,693
901,537

5,768,248
5,318,012
5,424,594
5,031,160


Secured creditors
Bank borrowings are secured by a legal charge over the company's land & buildings at Kingmoor Park Industrial Estate, Carlisle; land at Kingmoor Park, Rockcliffe, Carlisle; Buildings at Lamb Street, Carlisle and a debenture. Hire purchase agreements are secured over the assets to which they relate.
One of the directors has given a personal guarantee over the borrowings of the company of £150,000. 

Page 35

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

21.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
-
208,809
-
208,809

Net obligations under finance leases and hire purchase contracts
441,216
526,990
433,910
514,728

441,216
735,799
433,910
723,537


Secured creditors
Bank borrowings are secured by a legal charge over the company's land & buildings at Kingmoor Park Industrial Estate, Carlisle; land at Kingmoor Park, Rockcliffe, Carlisle; Buildings at Lamb Street, Carlisle and a debenture. Hire purchase agreements are secured over the assets to which they relate.
One of the directors has given a personal guarantee over the borrowings of the company of £150,000. 




22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Amounts falling due within one year

Bank loans
-
30,000
-
30,000


-
30,000
-
30,000

Amounts falling due 1-2 years

Bank loans
-
30,000
-
30,000


-
30,000
-
30,000

Amounts falling due 2-5 years

Bank loans
-
178,809
-
178,809


-
178,809
-
178,809


-
238,809
-
238,809


The bank loan was paid off in full in the financial year.

Page 36

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Within one year
368,220
385,857
363,029
380,666

Between 1-5 years
441,216
527,173
433,910
514,912

809,436
913,030
796,939
895,578

Page 37

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

24.


Deferred taxation


Group



2023


£






At beginning of year
(242,000)


Charged to profit or loss
(28,895)


Utilised in year
482,427



At end of year
211,532

Company


2023


£






At beginning of year
(264,000)


Utilised in year
482,427



At end of year
218,427

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Accelerated capital allowances
(471,829)
(442,000)
(464,934)
(440,000)

Property revaluations
434,577
(200,000)
434,577
(200,000)

Rollover election
-
(47,000)
-
(47,000)

Losses
231,894
431,000
231,894
409,000

Pension contributions
16,890
16,000
16,890
14,000

211,532
(242,000)
218,427
(264,000)


The directors expect that some of the losses and some of the accelerated capital allowances will reverse in the upcoming accounting period.

Page 38

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

25.


Provisions


Group



Provision for onerous contracts
Total

£
£





At 1 June 2022
85,000
85,000


Utilised in year
(85,000)
(85,000)



At 31 May 2023
-
-

Company


Provision for onerous contracts
Total

£
£





At 1 June 2022
85,000
85,000


Utilised in year
(85,000)
(85,000)



At 31 May 2023
-
-

The provision for onerous contracts consists of anticipated losses on contracts committed to at the balance sheet date.


26.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



40,000 (2022 - 40,000) A shares shares of £1.00 each
40,000
40,000
28,501 (2022 - 28,501) B shares shares of £1.00 each
28,501
28,501
28,501 (2022 - 28,501) C shares shares of £1.00 each
28,501
28,501
3,000 (2022 - 3,000) D shares shares of £1.00 each
3,000
3,000

100,002

100,002




Page 39

 
CUBBY CONSTRUCTION LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

27.


Reserves

Revaluation reserve

This reserve represents the historic increases in the value of tangible fixed assets net of deferred tax liabilities in relation to those increases in value.

Profit and loss account

This reserve represents cumulative retained profits and losses.


28.


Pension commitments

The group contributes to defined contribution pension schemes. The assets of the schemes are held
separately from those of the company in funds administered by Trustees. The Schemes provide money
purchase benefits for certain employees based on the accumulated contribution paid on behalf of each
member. The group had outstanding contributions under pension schemes at 31st May 2023 of
£67,559 (2022 £64,863).


29.


Related party transactions

Rent was paid to Cubby Construction Limited Retirement Benefits Scheme totaling £42,000 (2022 - £31,500). £25,200 (2022 - £Nil) was outstanding at the year end date.   
The company's directors are also directors of Cubby Developments Limited. There was a balance due to Cubby Developments Limited at 31st May 2023 of £71,205 (2022 - £71,862). This loan is undated, unsecured and no interest is charged.
At 31st May 2023 there was a loan due from one of the directors to the Company of £118,004 (2022 - £128,415 owed by the company to the director). There were loans due to the other two directors by the company totaling £165,171 (2022 - £237,171). These loans are unsecured and interest free.


30.


Controlling party

The company is controlled by the Directors, who together own 100% of the issued share capital.


Page 40