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Registered number: 02988261









CLARET CIVIL ENGINEERING LIMITED

ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023






































Whitings LLP
Chartered Accountants & Business Advisers
Greenwood House
Greenwood Court
Skyliner Way
Bury St Edmunds
Suffolk
IP32 7GY

 
CLARET CIVIL ENGINEERING LIMITED
 
 
COMPANY INFORMATION


Directors
A R Gibbons 
K P Potter 
P F Norman 
T C E Pettitt 




Registered number
02988261



Registered office
Old Mission House
St Botolph's Lane

Bury St Edmunds

Suffolk

IP33 2AX




Independent auditors
Whitings LLP
Chartered Accountants & Statutory Auditor

Greenwood House

Greenwood Court

Skyliner Way

Bury St Edmunds

Suffolk

IP32 7GY





 
CLARET CIVIL ENGINEERING LIMITED
 

CONTENTS



Page
Strategic Report
1 - 2
Directors' Report
3 - 4
Independent Auditors' Report
5 - 8
Statement of Comprehensive Income
9
Balance Sheet
10
Statement of Changes in Equity
11
Statement of Cash Flows
12
Analysis of Net Debt
13
Notes to the Financial Statements
14 - 26


 
CLARET CIVIL ENGINEERING LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2023

Introduction
 
The directors present their strategic report for the year ended 31 May 2023.

Business review
 
The directors are pleased with the performance of the company.
Turnover increased by 34% in the period. The company continued to navigate a changing economic climate and faced challenges due to the cost of living crisis such as increased direct costs. However, the company maintained its ability to react to changes as they arose remaining profitable throughout the year. 
The directors are continuing to streamline the business, including continued investment in technology and innovative solutions. During the year the company has also invested heavily in plant and equipment, in order to facilitate continued expansion and growth.
Given the factors referred to above the directors are pleased with the performance of the company and the profit before tax reported.
This profit together with consistent careful cash flow management leaves the company in a good position at the end of the reporting period with strong cash balances.
The company has an excellent forward order book, and the directors are confident that they can build on the strong foundation created and continue to enjoy working with a number of blue-chip clients.
The company continues to work towards a sustainable future as they develop new technology and are involved in several initiatives to form sound workforce resilience. These include our significant involvement and leadership within the following further education programmes: Apprenticeships, T Levels, and Training School alongside our clients.
Promotion and celebration of good practice, development and progression is key to our business and we thank our staff for another successful year.

Principal risks and uncertainties
 
The commercial environment is expected to remain competitive, particularly in respect of client affordability challenges and the imminent commencement of new investment cycles within the water industry. However the directors remain confident of delivering against the company’s growth objective.
The directors recognise the need to ensure the ready availability of suitably skilled resources to underpin the delivery capability of the business and will look to facilitate adequate development pathways for individuals within the company and for those who arrive with us. 
The company is exposed to credit risk which is mitigated through careful management including credit checks in respect of new clients and the setting of credit limits.

Page 1

 
CLARET CIVIL ENGINEERING LIMITED
 

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

Financial key performance indicators
 
The company’s key performance indicators are turnover, gross profit margin and operating profit.
Turnover increased during the period by 34%, compared with the previous year.
The gross profit for the year saw an increase from £4,883,728 to £5,784,269 in this reporting period, and operating profit remained strong.
Future development strategy
The company will be continuing to invest in technology, innovation equipment, all leading to greener solutions reducing Carbon impact.


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





A R Gibbons
Director

Date: 26 October 2023

Page 2

 
CLARET CIVIL ENGINEERING 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 Strategic Report, the Directors' Report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 of the profit or loss of the Company for that period.

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


select suitable accounting policies for the Company'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 Company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and 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 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 £994,777 (2022 - £1,212,058).

Directors

The directors who served during the year were:

A R Gibbons 
M S Gray (resigned 30 September 2023)
K P Potter 
K D Manning (resigned 31 December 2022)
P F Norman 
T C E Pettitt 

Future developments

Future developments are included in the Strategic Report.

Page 3

 
CLARET CIVIL ENGINEERING 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'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's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsWhitings LLPwill 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.
 





A R Gibbons
Director

Date: 26 October 2023

Page 4

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLARET CIVIL ENGINEERING LIMITED
 

Opinion


We have audited the financial statements of Claret Civil Engineering Limited (the 'Company') for the year ended 31 May 2023, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Cash Flows, the 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 Company's affairs as at 31 May 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLARET CIVIL ENGINEERING 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 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 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 Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the 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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLARET CIVIL ENGINEERING 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 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 around actual and potential litigation and claims;
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; and
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, and reviewing accounting estimates for bias.


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.


Page 7

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CLARET CIVIL ENGINEERING 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.





Jonathan Moore (Senior Statutory Auditor)
  
for and on behalf of
Whitings LLP
 
Chartered Accountants
Statutory Auditor
  
Greenwood House
Greenwood Court
Skyliner Way
Bury St Edmunds
Suffolk
IP32 7GY

26 October 2023
Page 8

 
CLARET CIVIL ENGINEERING LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023

2023
2022
Note
£
£

  

Turnover
 4 
18,389,652
13,771,650

Cost of sales
  
(12,605,383)
(8,887,922)

Gross profit
  
5,784,269
4,883,728

Administrative expenses
  
(4,515,098)
(3,356,752)

Other operating income
 5 
1,040
5,779

Operating profit
 6 
1,270,211
1,532,755

Interest receivable and similar income
 10 
62,319
4,297

Interest payable and similar expenses
 11 
(53,012)
(5,162)

Profit before tax
  
1,279,518
1,531,890

Tax on profit
 12 
(284,741)
(319,832)

Profit for the financial year
  
994,777
1,212,058

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2023 (2022:£NIL).

The notes on pages 14 to 26 form part of these financial statements.

Page 9

 
CLARET CIVIL ENGINEERING LIMITED
REGISTERED NUMBER: 02988261

BALANCE SHEET
AS AT 31 MAY 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
2,355,962
1,553,417

  
2,355,962
1,553,417

Current assets
  

Stocks
 15 
5,000
5,000

Debtors: amounts falling due within one year
 16 
3,578,372
2,760,080

Cash at bank and in hand
 17 
3,909,012
2,916,597

  
7,492,384
5,681,677

Creditors: amounts falling due within one year
 18 
(3,170,985)
(2,052,831)

Net current assets
  
 
 
4,321,399
 
 
3,628,846

Total assets less current liabilities
  
6,677,361
5,182,263

Creditors: amounts falling due after more than one year
 19 
(862,254)
(526,414)

Provisions for liabilities
  

Deferred tax
 21 
(560,855)
(296,374)

  
 
 
(560,855)
 
 
(296,374)

Net assets
  
5,254,252
4,359,475


Capital and reserves
  

Called up share capital 
 22 
1,000
1,000

Capital redemption reserve
 23 
1,000
1,000

Profit and loss account
 23 
5,252,252
4,357,475

  
5,254,252
4,359,475


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


A R Gibbons
Director

Date: 26 October 2023

The notes on pages 14 to 26 form part of these financial statements.

Page 10

 
CLARET CIVIL ENGINEERING LIMITED
 

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


Called up share capital
Capital redemption reserve
Profit and loss account
Total equity

£
£
£
£


At 1 June 2021
1,000
1,000
3,145,417
3,147,417



Profit for the year
-
-
1,212,058
1,212,058



At 1 June 2022
1,000
1,000
4,357,475
4,359,475



Profit for the year
-
-
994,777
994,777

Dividends: Equity capital
-
-
(100,000)
(100,000)


At 31 May 2023
1,000
1,000
5,252,252
5,254,252


The notes on pages 14 to 26 form part of these financial statements.

Page 11

 
CLARET CIVIL ENGINEERING LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2023

2023
2022
£
£

Cash flows from operating activities

Profit for the financial year
994,777
1,212,058

Adjustments for:

Depreciation of tangible assets
903,616
548,059

Loss on disposal of tangible assets
(30,006)
(32,506)

Interest paid
53,012
5,162

Interest received
(62,319)
(4,297)

Taxation charge
284,741
319,832

(Increase) in debtors
(818,290)
(1,287,001)

Increase in creditors
1,070,056
256,804

Corporation tax (paid)
(182,346)
(110,201)

Net cash generated from operating activities

2,213,241
907,910


Cash flows from investing activities

Purchase of tangible fixed assets
(1,590,252)
(470,629)

Sale of tangible fixed assets
255,495
43,589

Interest received
62,319
4,297

HP interest paid
(53,012)
(5,126)

Net cash from investing activities

(1,325,450)
(427,869)

Cash flows from financing activities

Repayment of/new finance leases
204,624
263,870

Dividends paid
(100,000)
-

Interest paid
-
(36)

Net cash used in financing activities
104,624
263,834

Net increase in cash and cash equivalents
992,415
743,875

Cash and cash equivalents at beginning of year
2,916,597
2,172,722

Cash and cash equivalents at the end of year
3,909,012
2,916,597


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
3,909,012
2,916,597


The notes on pages 14 to 26 form part of these financial statements.

Page 12

 
CLARET CIVIL ENGINEERING LIMITED
 

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

2,916,597

992,415

-

3,909,012

Finance leases

(704,112)

204,624

(750,646)

(1,250,134)


2,212,485
1,197,039
(750,646)
2,658,878

The notes on pages 14 to 26 form part of these financial statements.

Page 13

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

1.


General information

Claret Civil Engineering Limited is a private company limited by shares and is incorporated in England and Wales. 
The address of its registered office is Old Mission House, St Botolph's Lane, Bury St Edmunds, Suffolk, IP33 2AX. The company provides civil engineering services.

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 management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company 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. The following criteria must also be met before revenue is recognised:

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Turnover in respect of long term contracts is recognised based on cost plus attributable profits based on the stage of completion, and where these can be reasonably foreseen. Provision is made for losses when foreseen.

 
2.3

Operating leases: the Company as lessee

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

Page 14

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.4

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 Statement of Comprehensive Income in the same period as the related expenditure.

 
2.5

Interest income

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

 
2.6

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.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Company in independently administered funds.

Page 15

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.8

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 operates and generates 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; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

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.

 
2.9

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, on a reducing balance basis.

Depreciation is provided on the following basis:

Short-term leasehold property
-
10 years straight line
Plant and machinery
-
25% reducing balance
Motor vehicles
-
Between 33.33% and 40% reducing balance
Fixtures and fittings
-
Between 25% and 35% 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.

Page 16

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.10

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.

 
2.11

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.

 
2.12

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 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 Company's cash management.

 
2.13

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.

 
2.14

Provisions for liabilities

Provisions are made where an event has taken place that gives the Company 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 Company 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.

Page 17

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.15

Financial instruments

The Company 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.

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 Statement of Comprehensive Income.

 
2.16

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.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgments are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The company 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.
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 re-assessed 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.
Valuation of amounts recoverable on contracts:-
The directors review ongoing contracts at the balance sheet date and use experience and relevant knowledge to assess profits to be recognised when assessing the amounts recoverable on contracts.
Impairment of debtors:-
The company 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, its financial circumstances, the ageing profile of debtors and historical experience.


4.


Turnover

All turnover arose within the United Kingdom.

Page 18

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

5.


Other operating income

2023
2022
£
£

Other operating income
1,040
287

Government grants receivable
-
5,492

1,040
5,779


Government grants receivable consist of Coronavirus Job Retention Scheme grants received during the prior year.


6.


Operating profit

The operating profit is stated after charging:

2023
2022
£
£

Other operating lease rentals
10,000
10,000


7.


Auditors' remuneration

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
9,700
9,100
Page 19

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

8.


Employees

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


2023
2022
£
£

Wages and salaries
4,766,378
3,402,503

Social security costs
442,039
366,605

Cost of defined contribution scheme
127,649
120,443

5,336,066
3,889,551


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


        2023
        2022
            No.
            No.







Operatives
59
42



Administrative staff
32
20



Management staff
13
13

104
75


9.


Directors' remuneration

2023
2022
£
£

Directors' emoluments
544,605
627,435

Company contributions to defined contribution pension schemes
40,127
32,101

584,732
659,536


During the year retirement benefits were accruing to 4 directors (2022 - 4) in respect of defined contribution pension schemes.

The highest paid director received remuneration of £151,643 (2022 - £161,070).

The value of the Company's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £NIL (2022 - £NIL).

Page 20

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

10.


Interest receivable

2023
2022
£
£


Bank and other interest receivable
62,319
4,297


11.


Interest payable and similar expenses

2023
2022
£
£


Finance leases and hire purchase contracts
53,012
5,126

Other interest payable
-
36

53,012
5,162


12.


Taxation


2023
2022
£
£

Corporation tax


Current tax on profits for the year
20,260
182,205

Adjustments in respect of previous periods
-
(103)


Total current tax
20,260
182,102

Deferred tax


Origination and reversal of timing differences
264,481
137,730

Total deferred tax
264,481
137,730


Taxation on profit on ordinary activities
284,741
319,832
Page 21

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023
 
12.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 19 - 25% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
1,279,518
1,531,891


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
202,590
291,059

Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25%
53,313
-

255,903
291,059

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
1,091
1,876

Remeasurement of deferred tax rates
52,862
33,060

Other differences leading to an increase/(decrease) in the tax charge
(25,115)
(6,163)

Total tax charge for the year
284,741
319,832


Factors that may affect future tax charges

The main rate of UK corporation tax increased from 19% to a rate between 19% and 25% with effect from 1 April 2023. The corporation tax charge for the year has been calculated at these rates. The deferred tax liability has been provided at 25%.


13.


Dividends

2023
2022
£
£


Dividends on ordinary shares
100,000
-

Page 22

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

14.


Tangible fixed assets





Short-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Total

£
£
£
£
£



Cost or valuation


At 1 June 2022
443,357
1,470,854
1,582,308
402,434
3,898,953


Additions
-
460,477
1,461,724
9,450
1,931,651


Disposals
-
(81,000)
(398,794)
(158,449)
(638,243)



At 31 May 2023

443,357
1,850,331
2,645,238
253,435
5,192,361



Depreciation


At 1 June 2022
306,467
691,790
1,096,034
251,245
2,345,536


Charge for the year on owned assets
136,890
264,804
450,455
51,467
903,616


Disposals
-
(13,500)
(246,044)
(153,209)
(412,753)



At 31 May 2023

443,357
943,094
1,300,445
149,503
2,836,399



Net book value



At 31 May 2023
-
907,237
1,344,793
103,932
2,355,962



At 31 May 2022
136,890
779,064
486,274
151,189
1,553,417

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2023
2022
£
£



Plant and machinery
391,705
287,427

Motor vehicles
679,989
336,755

1,071,694
624,182

Page 23

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

15.


Stocks

2023
2022
£
£

Raw materials and consumables
5,000
5,000



16.


Debtors

2023
2022
£
£


Trade debtors
990,294
929,127

Prepayments and accrued income
57,592
26,598

Amounts recoverable on long-term contracts
2,530,486
1,804,355

3,578,372
2,760,080



17.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
3,909,012
2,916,597



18.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
1,634,883
784,546

Corporation tax
20,118
182,205

Other taxation and social security
503,658
573,401

Obligations under finance lease and hire purchase contracts
387,880
177,698

Other creditors
17,271
15,227

Accruals and deferred income
607,175
319,754

3,170,985
2,052,831


Page 24

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

19.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Net obligations under finance leases and hire purchase contracts
862,254
526,414


Finance lease and hire purchase obligations are secured on the assets concerned.


20.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

2023
2022
£
£


Within one year
420,457
199,027

Between 1-5 years
904,920
548,227

1,325,377
747,254


21.


Deferred taxation




2023
2022


£

£






At beginning of year
(296,374)
(158,644)


Charged to the profit or loss
(264,481)
(137,730)



At end of year
(560,855)
(296,374)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Accelerated capital allowances
(562,720)
(296,374)

Other short term timing differences
1,865
-


The net deferred tax expected to reverse next year is £172,810 (2022 - £90,000) relating to the reversal of timing differences on tangible fixed assets and other short term timing differences.

Page 25

 
CLARET CIVIL ENGINEERING LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

22.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1,000 (2022 - 1,000) ordinary shares of £1.00 each
1,000
1,000



23.


Reserves

Capital redemption reserve

Capital redemption reserve - records the nominal value of the shares repurchased by the company.

Profit and loss account

Profit and loss account - includes all current and prior related retained profits and losses.


24.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £147,649 (2022 - £120,442)Contributions totalling £17,271 (2022 - £15,227) were payable to the fund at the balance sheet date.


25.


Commitments under operating leases

At 31 May 2023 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
65,035
61,774

Later than 1 year and not later than 5 years
253,336
240,590

Later than 5 years
62,223
120,000

380,594
422,364


26.


Related party transactions

Included in the financial statements is rent payable of £10,000 (2022 - £10,000) to a company in which a close family member of a director has an interest.
During the year the company incurred management charges of £125,000 (2022 - £41,667) from a company in which a director holds an interest.

 
Page 26