Registered number:
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
COMPANY INFORMATION
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C3 CONSTRUCTION GROUP LIMITED
CONTENTS
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C3 CONSTRUCTION GROUP LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
The principal activity of the Group during the year was that of groundwork, general building and site engineering.
Business review Over the last 12 months the business has continued to expand despite a more challenging housing market, and is active on over 60 sites across the Midlands. This has been achieved by working for a growing number of housebuilders and establishing a reputation for quality and reliability. As the business is focused on site infrastructure work as well as groundworks, this provides a balance to housing which can slow down if market conditions dictate. The directors remain focused on cost control and growing market share. There has been considerable investment in plant and machinery to ensure the Group is using the best equipment and technology available. The company continues to develop and invest in its people and their training. Whilst the outlook for 2024 still has a number of macroeconomic challenges, the directors are confident in C3’s position as a leading groundworker and that the Group’s reputation will lead to a strong pipeline of opportunities in a market which still suffers from a lack of sufficient housing. Principal risks and uncertainties The management of the business and the execution of the Group's strategy are subject to a number of risks. Risks are formally reviewed by the board and appropriate processes are put in place to monitor and mitigate them. Credit risk New credit customers undergo credit checks and are only accepted once approved by the credit controller. The Group undertakes perpetual review processes to ensure debts are collected in a timely manner and to minimise the risk that debts become irrecoverable. Liquidity risk The Group is financed by appropriate long and short term finance to match the needs of the business. Financial key performance indicators The key performance indicators of the Group are turnover, gross profit margin and net profit margin. During the year turnover has increased by £23,798,096 (20.9%) to £137,870,459 compared to £114,072,363 in 2022. During the year gross profit margin has increased by £714,916 (3.4%) to £21,999,008 compared to £21,284,092 in 2022. During the year profit before tax has decreased by £2,693,776 (31.3%) to £5,919,642 compared to £8,613,418 in 2022.
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C3 CONSTRUCTION GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
The non financial key performance indicator of the Group is compliance with UK health and safety regulations including UK building regulations. The Group had no instances of non compliance during the period.
Directors' statement of compliance with duty to promote the success of the Group. S172 (1) Statement During the year, the directors have had regard to the matters set out in S172 (1) (a) to (f) of the Companies Act 2006 whilst performing their duties. Decisions have been made in good faith to benefit the members as a whole and to promote the success of the Group. Specifically, the directors have considered the following: S172 (1) (a) The likely consequences of any decision in the long term The directors understand the business and the environment in which it operates and the consequences of any long term decisions. There is a clear plan for growth which ensures they deliver a reputable service whilst satisfying both customer and shareholder needs. Improving environmental performance and operating processes are a fundamental part of the business strategy. This is key to ensuring that the Group delivers a duty of care for the benefit of future generations. S172 (1) (b) The interests of the Group's employees The directors regularly engage with employees through internal communications when making decisions to ensure that the best course of action is delivered in the long term and that the Group's strategy takes into consideration all stakeholders of the Group, including the employees. Employee welfare and wellbeing is of utmost importance. Within the industry that the Group operates, ensuring that all employees work in a safe and healthy environment is paramount. This is ensured through regular external health and safety compliance checks. S172 (1) (c) The need to foster the Group's business relationships with suppliers, customers and others Building relationships with customers and suppliers is critical to the success of the business. Building relationships with key suppliers enables the success of the Group by delivering a quality service whilst ensuring minimal impact to the environment. S172 (1) (d) The impact of the Group's operations on the community and the environment The Group recognises the importance of minimising the impact of operations on the community and the environment and takes into consideration the views of all stakeholders. S172 (1) (e) The desirability of the Group maintaining a reputation for high standards of business conduct The Group acknowledges that sustainable growth is only achievable by maintaining a reputation quality and adhering to the codes of good business practice. S172 (1) (f) The need to act fairly between members of the Group When making decisions, the directors consider which course of action best delivers the Group strategy in the long term, taking into consideration all stakeholders of the Group.
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C3 CONSTRUCTION GROUP LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
This report was approved by the board and signed on its behalf.
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C3 CONSTRUCTION GROUP LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
The directors present their report and the financial statements for the year ended 30 September 2023.
The profit for the year, after taxation and minority interests, amounted to £3,336,836 (2022 - £3,643,473).
During the year a dividend of £1,911,538 (2022 - £3,823,469) was recommended by the directors.
The directors who served during the year were:
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C3 CONSTRUCTION GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
C3 Construction Group Limited is exempt from the requirement to disclose SECR information. The below disclosure relates solely to C3 Construction Limited.
The Group will seek to minimise adverse impacts on the environment from its activities, whilst continuing to address health, safety and economic issues. The Group has complied with all applicable legislation and regulations. The Companies Act 2006 (Directors' Report) Regulation 2018 requires C3 Construction Limited to disclose annual UK energy consumption, emissions, intensity metrics and all energy efficiency improvements implemented for the financial period. The following disclosures achieve 100% verifiable data coverage with no estimation. Energy and Greenhouse Gas emissions have been independently calculated by Net Zero Compliance (a division of Inspired Energy PLC). This report (including the Scope 1, 2 and 3 consumption and CO2e emissions data) has been developed and calculated using the GHG Protocol – A Corporate Accounting and Reporting Standard (World Resources Institute and World Business Council for Sustainable Development, 2004); Greenhouse Gas Protocol – Scope 2 Guidance (World Resources Institute, 2015); ISO 14064-1 and ISO 14064-2 (ISO, 2018; ISO, 2019); Environmental Reporting Guidelines: Including Streamlined Energy and Carbon Reporting Guidance (HM Government, 2019). Government Emissions Factor Database 2023 version 1.1 has been used, utilising the published kWh gross calorific value (CV) and kgCO2e emissions factors relevant for the reporting period 01/10/2022 – 30/09/2023. Estimations were undertaken to cover missing billing periods for properties directly invoiced to C3 Construction Limited. These were calculated on a kWh/day pro-rata basis at the meter level. All estimations equated to 8.15% of reported consumption. Market-based emissions were calculated using a supplier-specific emissions factor based on the electricity that C3 Construction Limited procure. Due to continuing improvements in reporting, the emissions related to transportation in 2021/22 have been restated this year. This is in line with improvements in reporting methodology which aim to provide a more accurate representation of the emissions produced. Consumption (kWh) and Greenhouse Gas emissions (tCO2e) totals The following figures show the consumption and associated emissions for this reporting year for our operations, with figures from the previous reporting period included for comparison. Scope 1 consumption and emissions relate to direct combustion of natural gas, and fuels utilised for transportation operations, such as company vehicle fleets. Scope 2 consumption and emissions relate to indirect emissions relating to the consumption of purchased electricity in day-to-day business operations. Scope 3 consumption and emissions relate to emissions resulting from sources not directly owned by us. This relates to grey fleet (business travel undertaken in employee-owned vehicles) only.
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C3 CONSTRUCTION GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Totals
The total consumption (kWh) figures for energy supplies reportable by C3 Construction Limited are as follows: Grid supplied Electricity (scope 2) - 108,100 kWh (2022 - 98,105 kWh) Gaseous and other fuels (scope 1) - 48,597,592 kWh (2022 - 36,590,560 kWh) Transportation (scope 1) - 9,692,757 kWh (2022 - 8,371,080 kWh) Transportation (scope 3) - 102,805 kWh (2022 - 102,168 kWh) Total - 58,501,254 kWh (2022 - 45,161,913 kWh) The total emission (tCO2e) figures for energy supplies reportable by C3 Construction Limited are as follows: Grid-supplied Electricity (Scope 2) - 22.38 tCO2e (2022 - 18.97 tCO2e) Gaseous and other fuels (Scope 1) - 12,465.07 tCO2e (2022 - 9,396.09 tCO2e) Transportation (Scope 1) - 2,291.16 tCO2e (2022 - 2,001.23 tCO2e) Transportation (Scope 3) - 23.12 tCO2e (2022 - 23.57 tCO2e) Total - 14,801.74 tCO2e (2022 - 11,439.96 tCO2e) Intensity metric An intensity metric of tCO2e per £m revenue has been applied for our annual total emissions and are as follows: tCO2e / £m revenue - 107.36 (2022 - 100.29) Energy Efficiency Improvements C3 Construction Limited is committed to year-on-year improvements in its operational energy efficiency. A register of energy efficiency measures has been compiled, with a view to implementing these measures in the next five years. Measures ongoing and undertaken through FY2022/23: GPS Technology in Excavators In the past two years, C3 Construction Limited have invested in several GPS Technologies for use in excavators. This has resulted in a considerable reduction in travel to sites by the engineering team. Fuel Efficient Investment In FY2022/23, C3 Construction Limited invested considerably in new plant to benefit from fuel-efficient models when they become available to the market. This should impact emissions positively in future reporting years. Reducing Idling Time C3 Construction Limited have committed to reducing idling time in vans and excavators to reduce fuel consumption. Reporting Methodology Scope 1, 2 and 3 consumption and CO2e emissions data has been calculated in line with the 2019 UK Government environmental reporting guidance. Emissions Factor Database 2023 version 1 has been used, utilising the published kWh gross calorific value (CV) and kgCO2e emissions factors relevant for reporting period 01/10/2022 – 30/09/2023.
Going forward the directors are aiming to grow the Group further whilst keeping tight control over the cost base.
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C3 CONSTRUCTION GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
There have been no significant events affecting the Group since the year end.
Following a rebranding exercise on 15 May 2023 the trading name of the Groups’s independent auditor changed from MHA MacIntyre Hudson to MHA. The auditors, MHA, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
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 judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙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 2006. They 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.
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C3 CONSTRUCTION GROUP LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
This report was approved by the board and signed on its behalf.
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C3 CONSTRUCTION GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF C3 CONSTRUCTION GROUP LIMITED
We have audited the financial statements of C3 Construction Group Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 30 September 2023, which comprise the Consolidated Profit and Loss Account, the Consolidated and Company Balance Sheets, the Consolidated Statement of Cash Flows, the Consolidated and Company Statement of Changes in Equity and the related notes, 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).
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.
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.
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C3 CONSTRUCTION GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF C3 CONSTRUCTION GROUP LIMITED (CONTINUED)
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.
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.
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.
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C3 CONSTRUCTION GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF C3 CONSTRUCTION GROUP LIMITED (CONTINUED)
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:
• Enquiry of management and those charged with governance around actual, potential or suspected litigation, claims, non-compliance with applicable laws and regulations and fraud. • Enquiry of entity staff in tax and compliance functions and external advisors to identify any instances of non-compliance with laws and regulations. • Performing audit work over the risk of management override, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. • Reviewing of financial statements disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. • Discussions amongst the engagement team in relation to how and where fraud might occur in the financial statements and any potential indicators of fraud. • Reviewing meeting minutes of those charged with governance.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
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C3 CONSTRUCTION GROUP LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF C3 CONSTRUCTION GROUP LIMITED (CONTINUED)
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 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.
Shelley Harvey FCCA (Senior Statutory Auditor) for and on behalf of Leicester, United Kingdom Date: MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (registered number OC312313).
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C3 CONSTRUCTION GROUP LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
REGISTERED NUMBER: 11112010
CONSOLIDATED BALANCE SHEET
AS AT 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
REGISTERED NUMBER: 11112010
CONSOLIDATED BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 24 to 46 form part of these financial statements.
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C3 CONSTRUCTION GROUP LIMITED
REGISTERED NUMBER: 11112010
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
REGISTERED NUMBER: 11112010
COMPANY BALANCE SHEET (CONTINUED)
AS AT 30 SEPTEMBER 2023
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 24 to 46 form part of these financial statements.
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
C3 Construction Group Limited is a private company, limited by shares, domiciled in England and Wales, registration number 11112010. The registered office is 11 Merus Court, Meridian Business Park, Leicester, LE19 1RJ.
The principal activity of the Company continued to be that of a holding company. The principal activity of the Group continued to be that of groundwork, general building and site engineering.
2.Accounting policies
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 Group's functional and presentational currency is British Pound Sterling (£). After reviewing the Group's forecasts and projections, the directors have a reasonable expectation that the Group has adequate resources and support to continue in operational existence for the foreseeable future. The Group therefore continues to adopt the going concern basis in preparing its financial information. The directors therefore believe the Group has the ability to continue as a going concern for the next 12 months. 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 Groups accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed in 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:
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.
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2.Accounting policies (continued)
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2.Accounting policies (continued)
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.
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2.Accounting policies (continued)
The Group adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Group. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to the Consolidated Statement of Comprehensive Income during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method and the reducing balance method.
Depreciation is provided on the following basis:
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 the Consolidated Statement of Comprehensive Income.
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2.Accounting policies (continued)
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. Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
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.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at transaction price, net of transaction cost, present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan. Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the Consolidated Statement of Comprehensive Income. For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
2.Accounting policies (continued)
for measuring any impairment loss is the current effective interest rate determined under the contract.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the Group would receive for the asset if it were to be sold at the balance sheet date. Financial assets and liabilities are offset and the net amount reported in the Balance Sheet when there is an enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. (i) Impairment of intangible assets and goodwill The Group considers whether intangible assets and/or goodwill are impaired. Where an indication of impairment is identified the estimation of recoverable value requires estimation of the recoverable value of the cash generating units (CGUs). This requires estimation of the future cash flows from the CGUs and also selection of appropriate discount rates in order to calculate the net present value of those cash flows. (ii) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. (iii) Stock and work in progress provisioning The Group continues to provide groundworking, general building and site engineering services and is exposed to changes in the market prices of raw materials it uses. As a result it is necessary to consider the recoverability of the cost of stocks and the associated provisioning required. When calculating the stocks provision, management considers the nature and condition of the stocks, as well as applying assumptions around anticipated sales and future usage of raw materials. With regards to work in progress valuations, management will consider materials usage and labour costs incurred on projects currently in progress. (iv) Impairment of debtors The Group makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience.
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
11.Taxation (continued)
From 1 April 2023, the Corporation Tax main rate increased to 25% for profits over £250,000. A small profits rate has also been introduced for profits of £50,000 or less, charging Corporation Tax at 19%. Profits between £50,000 and £250,000 will be taxed at the main rate reduced by a marginal relief providing a gradual increase in the effective Corporation Tax rate.
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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 profit after tax of the parent Company for the year was £
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Page 41
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Page 43
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
Page 44
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
In the financial statements for the year ended 30 September 2022, amounts attributable to non-controlling interests were not disclosed. A prior year adjustment has been reflected to show the split of amounts attributable to non-controlling interests and amounts attributable to owners of the group.
As 1 October 2021 Equity attributable to owners of the parent Company was previously stated at £5,229,989 this has been adjusted to £2,614,920. As 1 October 2021 reserves attributable to non-controlling interests of was previously stated at (£1,854) this has been adjusted to £2,613,065. Profit attributable to the owner’s parent for the year ended September 2022 was previously stated at £6,713,113 this has been adjusted to £3,643,473. Profit attributable to the non-controlling interest for the year ended September 2022 was previously stated at £194,852 this has been adjusted to £3,264,492. Dividends attributable to the owners of the parent for the year ended September 2022 were previously stated at £3,823,469 this has been adjusted to £3,527,749. Dividends attributable to the non-controlling interest for the year ended September 2022 were previously stated at £Nil this has been adjusted to £295,720. Transfer of profit to the owners of the parent for the year ended September 2022 was previously stated at £192,998 this has been adjusted to £3,691,193. Transfer of profit from the non-controlling interest for the year ended September 2022 was previously stated at £192,998 this has been adjusted to £3,691,193. As 1 October 2022 Equity attributable to owners of the parent Company was previously stated at £8,390,631 this has been adjusted to £6,499,987. As 1 October 2022 reserves attributable to non-controlling interests of was previously stated at £Nil this has been adjusted to £2,709,929. The Company has re-presented its financial statements on a single entity basis, and in accordance with FRS 102. There is no impact on previously reported net assets or profit of the Company as a result of this restatement.
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C3 CONSTRUCTION GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
The directors do not consider there to be an ultimate controlling party in the year.
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