REGISTERED NUMBER: 02691252 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 June 2023 |
for |
C C Contracting Limited |
REGISTERED NUMBER: 02691252 (England and Wales) |
Group Strategic Report, Report of the Directors and |
Consolidated Financial Statements for the Year Ended 30 June 2023 |
for |
C C Contracting Limited |
C C Contracting Limited (Registered number: 02691252) |
Contents of the Consolidated Financial Statements |
for the Year Ended 30 June 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 15 |
Company Statement of Changes in Equity | 17 |
Consolidated Cash Flow Statement | 18 |
Notes to the Consolidated Cash Flow Statement | 19 |
Notes to the Consolidated Financial Statements | 21 |
C C Contracting Limited |
Company Information |
for the Year Ended 30 June 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
1 Aston Court |
Bromsgrove Technology Park |
Bromsgrove |
Worcestershire |
B60 3AL |
C C Contracting Limited (Registered number: 02691252) |
Group Strategic Report |
for the Year Ended 30 June 2023 |
The directors present their strategic report of the company and the group for the year ended 30 June 2023. |
REVIEW OF BUSINESS |
The principal activities for the year continued to be civil engineering construction works, with an emphasis on the groundworks element of construction. |
The Key financial performance indicators for the company are: |
2023 | 2022 | %change |
Turnover | £14,916,088 | £22,891,853 | (34.84% | ) |
Profit before tax | £1,360,134 | £1,751,856 | (22.36% | ) |
Equity shareholder funds | £6,595,339 | £6,066,797 | 8.71% |
The board continues to make great efforts to have a good spread of work with in excess of 60% always being non-subcontract, in an attempt to minimise financial risk and over exposure in one area. The reduction in turnover is not a shock, simply a reflection on the previous year just being more full than usual of larger projects. |
The underlying balance sheet for the company has strengthened during the year in which net assets have increased by £628k to £6,714k as at 30th June 2023. |
The group's current ratio remains strong and has increased on 2022. We consistently have sufficient liquidity in the business to manage our day to day requirements. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risks facing the group are grouped into the following categories - competitive, legislative and financial instrument risk. |
Competitive Risks |
The group is to a large degree dependent on good spread of clients and strive to maintain this spread to avoid being at risk of one declining workstream. We operate in a very competitive marketplace but our style of management, the level of service we offer our clients and our control of our own workforce sets us apart from our competitors. This in turn provides us with an excellent stream of repeat business from our loyal customer base. |
Legislative Risks |
All our business is conducted in the UK and whilst changes in legislation can always pose a risk, we are now aware of any factors that would impose a greater degree of risk to us than others. |
Financial Instrument Risks |
As all our work is carried out on UK mainland, we do not have to worry about exchange rate issues. The few foreign companies we deal with we insist upon being paid in sterling. |
Credit risk occurs whenever the group offers its services on credit terms to its clients. Group policies are designed to ensure that all appropriate credit checks are carried out on prospective and current clients and the credit performance of those clients is continually monitored. Details of the company's debtors' position are included in the notes to the financial statements. |
Liquidity risk is the risk of the group being unable to meet obligations associated with financial liabilities. The group mitigates this risk through close management of its current and future cash flows. We maintain a strong cashflow and as such we remain in a strong financial position. |
C C Contracting Limited (Registered number: 02691252) |
Group Strategic Report |
for the Year Ended 30 June 2023 |
FUTURE DEVELOPMENTS |
The directors aim to maintain the management policies, which have resulted in the group's performance to date. We do not foresee any great changes in revenue going forward, but we continue in uncertain times now due to potential recession and the war in Ukraine. We remain positive though and aim to maintain a steady business. We have some good orders in the pipeline for the coming year. |
GOING CONCERN |
The group's business activities, together with the factors likely to affect its future development, its financial position, financial risk management objectives, details of its financial instruments and its exposures to currency, credit and liquidity risk are disclosed in the Strategic Report. |
The group has sufficient financial resources, together with a number of ongoing client contracts. As a consequence, the directors believe the business is well placed to manage its business risks successfully. |
After making enquiries, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts. |
ON BEHALF OF THE BOARD: |
20 February 2024 |
C C Contracting Limited (Registered number: 02691252) |
Report of the Directors |
for the Year Ended 30 June 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2023. |
DIVIDENDS |
No interim dividend was paid during the year. The directors recommend a final dividend of £33.33334 per share. |
The total distribution of dividends for the year ended 30 June 2023 will be £ 541,412 . |
Of the £541,412, £500,000 has been paid out of CC Contracting Ltd and £41,412 paid out of the subsidiary undertaking, Serfis Construction and Engineering Ltd, to minority shareholders. |
EVENTS SINCE THE END OF THE YEAR |
Information relating to events since the end of the year is given in the notes to the financial statements. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and 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 and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
C C Contracting Limited (Registered number: 02691252) |
Report of the Directors |
for the Year Ended 30 June 2023 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
C C Contracting Limited |
Opinion |
We have audited the financial statements of C C Contracting Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Conclusions relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and 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. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
C C Contracting Limited |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept 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 Statement of Directors' Responsibilities set out on page four, 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 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. |
Report of the Independent Auditors to the Members of |
C C Contracting Limited |
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 a Report of the Auditors 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. |
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, and from our commercial knowledge and experience of the sector in which the company operate; |
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental, and health and safety legislation; |
- we accessed the extent of compliance with the laws and regulations identified above through making enquiries of |
management and inspecting legal correspondence; 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 accessed 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 risk 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 to identify any unusual or unexpected relationships; |
- tested journal entries to identify unusual transactions; |
- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of |
potential bias; and |
- investigated the rationale behind significant or unusual transactions. |
- auditing the risk of misstatement and miss-posting of transactions through human error or intentional errors by |
analytical review and walkthrough testing of systems |
To address the risk of fraud in relation to revenue recognition we: |
- performed cut-off and completeness testing either side of the financial period end; |
- reviewed after date sales invoices and revenues |
- performed analytical procedures to identify any unusual or unexpected variances |
- tested sales systems and controls by performing a sales walkthrough to ensure such systems and controls are working as expected |
- performed sales compliance tests to include sequential sales invoice numbering and data transfer between systems |
where applicable. |
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 Report of the Auditors. |
Report of the Independent Auditors to the Members of |
C C Contracting Limited |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors 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. |
for and on behalf of |
Statutory Auditors |
1 Aston Court |
Bromsgrove Technology Park |
Bromsgrove |
Worcestershire |
B60 3AL |
C C Contracting Limited (Registered number: 02691252) |
Consolidated Income Statement |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
TURNOVER | 14,916,088 | 22,891,853 |
Cost of sales | 10,936,590 | 18,766,762 |
GROSS PROFIT | 3,979,498 | 4,125,091 |
Administrative expenses | 2,650,799 | 2,387,412 |
1,328,699 | 1,737,679 |
Other operating income | 5,897 | 13,905 |
OPERATING PROFIT | 4 | 1,334,596 | 1,751,584 |
Interest receivable and similar income | 26,513 | 936 |
1,361,109 | 1,752,520 |
Interest payable and similar expenses | 5 | 970 | 664 |
PROFIT BEFORE TAXATION | 1,360,139 | 1,751,856 |
Tax on profit | 6 | 190,747 | 162,247 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,069,954 | 1,543,525 |
Non-controlling interests | 99,438 | 46,084 |
1,169,392 | 1,589,609 |
C C Contracting Limited (Registered number: 02691252) |
Consolidated Other Comprehensive Income |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,169,392 | 1,589,609 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,169,392 |
1,589,609 |
Total comprehensive income attributable to: |
Owners of the parent | 1,069,953 | 1,543,525 |
Non-controlling interests | 99,439 | 46,084 |
1,169,392 | 1,589,609 |
C C Contracting Limited (Registered number: 02691252) |
Consolidated Balance Sheet |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 | 529,304 | 466,854 |
Investments | 10 | 37,825 | 37,825 |
Investment property | 11 | 1,000 | 1,000 |
568,129 | 505,679 |
CURRENT ASSETS |
Stocks | 12 | 156,192 | 192,476 |
Debtors | 13 | 4,766,984 | 5,945,692 |
Investments | 14 | 346,864 | 346,864 |
Cash at bank and in hand | 3,244,782 | 2,633,480 |
8,514,822 | 9,118,512 |
CREDITORS |
Amounts falling due within one year | 15 | 2,369,035 | 3,538,256 |
NET CURRENT ASSETS | 6,145,787 | 5,580,256 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
6,713,916 |
6,085,935 |
CAPITAL AND RESERVES |
Called up share capital | 19 | 15,035 | 15,035 |
Other reserves | 20 | 15,000 | 15,000 |
Retained earnings | 20 | 6,565,304 | 6,036,762 |
SHAREHOLDERS' FUNDS | 6,595,339 | 6,066,797 |
NON-CONTROLLING INTERESTS | 21 | 118,577 | 19,138 |
TOTAL EQUITY | 6,713,916 | 6,085,935 |
The financial statements were approved by the Board of Directors and authorised for issue on 20 February 2024 and were signed on its behalf by: |
P J Child - Director |
C C Contracting Limited (Registered number: 02691252) |
Company Balance Sheet |
30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 9 |
Investments | 10 |
Investment property | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Investments | 14 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 15 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
PROVISIONS FOR LIABILITIES | 18 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 19 |
Other reserves | 20 |
Retained earnings | 20 | 5,833,166 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 888,219 | 1,424,879 |
C C Contracting Limited (Registered number: 02691252) |
Company Balance Sheet - continued |
30 June 2023 |
The financial statements were approved by the Board of Directors and authorised for issue on |
C C Contracting Limited (Registered number: 02691252) |
Consolidated Statement of Changes in Equity |
for the Year Ended 30 June 2023 |
Called up |
share | Retained | Other |
capital | earnings | reserves |
£ | £ | £ |
Balance at 1 July 2021 | 15,035 | 5,034,201 | 15,000 |
Changes in equity |
Dividends | - | (540,964 | ) | - |
Total comprehensive income | - | 1,543,525 | - |
15,035 | 6,036,762 | 15,000 |
Acquisition of non-controlling interest |
- |
- |
- |
Balance at 30 June 2022 | 15,035 | 6,036,762 | 15,000 |
Changes in equity |
Dividends | - | (541,412 | ) | - |
Total comprehensive income | - | 1,069,954 | - |
15,035 | 6,565,304 | 15,000 |
Acquisition of non-controlling interest |
- |
- |
- |
Balance at 30 June 2023 | 15,035 | 6,565,304 | 15,000 |
C C Contracting Limited (Registered number: 02691252) |
Consolidated Statement of Changes in Equity - continued |
for the Year Ended 30 June 2023 |
Non-controlling | Total |
Total | interests | equity |
£ | £ | £ |
Balance at 1 July 2021 | 5,064,236 | - | 5,064,236 |
Changes in equity |
Dividends | (540,964 | ) | - | (540,964 | ) |
Total comprehensive income | 1,543,525 | 46,084 | 1,589,609 |
6,066,797 | 46,084 | 6,112,881 |
Acquisition of non-controlling interest |
- |
(26,946 |
) |
(26,946 |
) |
Balance at 30 June 2022 | 6,066,797 | 19,138 | 6,085,935 |
Changes in equity |
Dividends | (541,412 | ) | - | (541,412 | ) |
Total comprehensive income | 1,069,954 | 99,439 | 1,169,393 |
6,595,339 | 118,577 | 6,713,916 |
Acquisition of non-controlling interest |
- |
19,138 |
19,138 |
Balance at 30 June 2023 | 6,595,339 | 137,715 | 6,733,054 |
C C Contracting Limited (Registered number: 02691252) |
Company Statement of Changes in Equity |
for the Year Ended 30 June 2023 |
Called up |
share | Retained | Other | Total |
capital | earnings | reserves | equity |
£ | £ | £ | £ |
Balance at 1 July 2021 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2022 |
Changes in equity |
Dividends | - | ( |
) | - | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2023 |
C C Contracting Limited (Registered number: 02691252) |
Consolidated Cash Flow Statement |
for the Year Ended 30 June 2023 |
30.6.23 | 30.6.22 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,575,363 | 1,562,209 |
Interest element of hire purchase payments paid |
(970 |
) |
(664 |
) |
Tax paid | (233,895 | ) | 52,950 |
Net cash from operating activities | 1,340,498 | 1,614,495 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (325,230 | ) | (269,179 | ) |
Sale of tangible fixed assets | 109,395 | 12,252 |
Interest received | 26,513 | 936 |
Net cash from investing activities | (189,322 | ) | (255,991 | ) |
Cash flows from financing activities |
New HP agreements in the year | - | 83,064 |
Capital HP repayments in year | (48,454 | ) | (43,388 | ) |
Net movement in director loans | 500,000 | 787,568 |
Amount withdrawn by directors | (450,008 | ) | (317,413 | ) |
Equity dividends paid | (541,412 | ) | (540,964 | ) |
Net cash from financing activities | (539,874 | ) | (31,133 | ) |
Increase in cash and cash equivalents | 611,302 | 1,327,371 |
Cash and cash equivalents at beginning of year |
2 |
2,633,480 |
1,306,109 |
Cash and cash equivalents at end of year | 2 | 3,244,782 | 2,633,480 |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 June 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.6.23 | 30.6.22 |
£ | £ |
Profit before taxation | 1,360,139 | 1,751,856 |
Depreciation charges | 174,103 | 157,049 |
Profit on disposal of fixed assets | (20,717 | ) | (1,087 | ) |
Finance costs | 970 | 664 |
Finance income | (26,513 | ) | (936 | ) |
1,487,982 | 1,907,546 |
Decrease in stocks | 36,284 | 21,590 |
Decrease/(increase) in trade and other debtors | 1,011,175 | (1,672,022 | ) |
(Decrease)/increase in trade and other creditors | (960,078 | ) | 1,305,095 |
Cash generated from operations | 1,575,363 | 1,562,209 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | 3,244,782 | 2,633,480 |
Year ended 30 June 2022 |
30.6.22 | 1.7.21 |
£ | £ |
Cash and cash equivalents | 2,633,480 | 1,306,109 |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Cash Flow Statement |
for the Year Ended 30 June 2023 |
3. | ANALYSIS OF CHANGES IN NET FUNDS |
At 1.7.22 | Cash flow | At 30.6.23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 2,633,480 | 611,302 | 3,244,782 |
2,633,480 | 611,302 | 3,244,782 |
Liquid resources |
Current asset investments | 346,864 | - | 346,864 |
346,864 | - | 346,864 |
Debt |
Finance leases | (48,454 | ) | 48,454 | - |
(48,454 | ) | 48,454 | - |
Total | 2,931,890 | 659,756 | 3,591,646 |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements |
for the Year Ended 30 June 2023 |
1. | STATUTORY INFORMATION |
C C Contracting Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group financial statements have been prepared under the provision of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 of the Companies Act 2006 and applicable accounting standards. |
The consolidated financial statements incorporate the financial statements of the company and entities that continue to be controlled by the Group (its subsidiaries). Control exists where the Group has the power to govern the financial and operating policies of the entity; generally conferred by holding a majority of voting rights. All intra-group balances, transactions, income and expenses are eliminated on consolidation. The consolidated accounts are prepared using uniform accounting policies. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Tangible fixed assets |
Improvements to property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Investment property |
Investment property is valued by the directors at current market value. |
Stocks |
Work in progress is valued at the lower of cost and net realisable value. |
Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
2. | ACCOUNTING POLICIES - continued |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Property, plant and equipment acquired under finance leases or hire purchase contracts are capitalised and |
depreciated in the same manner as other tangible fixed assets. The related obligations, net of future finance |
charges, are included in creditors. Leasing payments are treated as consisting of capital and interest elements, and interest is charged to the profit and loss account on a straight-line basis which is considered to be a reasonable approximation to a constant rate of charge on the outstanding balance. |
Rentals payable under operating leases are charged to the profit and loss account on a straight-line basis over the period of the lease. Where no lease is in place, the rentals are charges to the profit and loss account as and when paid. |
The benefits of lease incentives are recognised in profit and loss account over the lease period |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Debtors |
Trade debtors includes the value of contractual work in progress. |
Goodwill |
Goodwill relates to goodwill on consolidation of the group companies. Goodwill, being the amount in connection with the acquisition of a subsidiary business in 2019, has been impaired in full in the year of acquisition. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
3. | EMPLOYEES AND DIRECTORS |
30.6.23 | 30.6.22 |
£ | £ |
Wages and salaries | 3,534,090 | 3,362,731 |
Social security costs | 269,332 | 234,773 |
Other pension costs | 124,894 | 79,928 |
3,928,316 | 3,677,432 |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
3. | EMPLOYEES AND DIRECTORS - continued |
The average number of employees during the year was as follows: |
30.6.23 | 30.6.22 |
Directors | 3 | 3 |
Staff | 46 | 49 |
The average number of employees by undertakings that were proportionately consolidated during the year was 14 (2022 - 12 ) . |
30.6.23 | 30.6.22 |
£ | £ |
Directors' remuneration | 782,377 | 637,360 |
Directors' pension contributions to money purchase schemes | 44,905 | 39,460 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 3 | 3 |
Information regarding the highest paid director is as follows: |
30.6.23 | 30.6.22 |
£ | £ |
Emoluments etc | 502,174 | 423,563 |
Pension contributions to money purchase schemes | 34,682 | 29,540 |
4. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
30.6.23 | 30.6.22 |
£ | £ |
Hire of plant and machinery | 1,670,239 | 2,420,274 |
Depreciation - owned assets | 151,389 | 124,320 |
Depreciation - assets on hire purchase contracts | 22,713 | 32,728 |
Profit on disposal of fixed assets | (20,717 | ) | (1,087 | ) |
Auditors' remuneration | 20,432 | 34,158 |
5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.23 | 30.6.22 |
£ | £ |
Hire purchase | 970 | 664 |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
6. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.6.23 | 30.6.22 |
£ | £ |
Current tax: |
UK corporation tax | 182,375 | 262,806 |
Tax under/over provision | (11,397 | ) | (159,181 | ) |
Total current tax | 170,978 | 103,625 |
Deferred tax | 19,769 | 58,622 |
Tax on profit | 190,747 | 162,247 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.6.23 | 30.6.22 |
£ | £ |
Profit before tax | 1,360,139 | 1,751,856 |
Profit multiplied by the standard rate of corporation tax in the UK of 20.496 % (2022 - 19 %) |
278,774 |
332,853 |
Effects of: |
Expenses not deductible for tax purposes | (3,104 | ) | 5,086 |
Capital allowances in excess of depreciation | (30,483 | ) | (29,103 | ) |
Utilisation of tax losses | (62,812 | ) | (46,030 | ) |
Adjustments to tax charge in respect of previous periods | (11,397 | ) | (159,181 | ) |
Deferred tax movement | 19,769 | 58,622 |
Total tax charge | 190,747 | 162,247 |
7. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
8. | DIVIDENDS |
30.6.23 | 30.6.22 |
£ | £ |
Final | 500,000 | 500,000 |
Interim | 41,412 | 40,964 |
541,412 | 540,964 |
£500,000 has been paid out of CC Contracting Ltd and £41,412 paid out of the subsidiary undertaking, Serfis Construction and Engineering Ltd, to minority shareholders. |
9. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 July 2022 | 106,374 | 718,874 | 40,024 |
Additions | - | 116,933 | 341 |
Disposals | - | - | - |
At 30 June 2023 | 106,374 | 835,807 | 40,365 |
DEPRECIATION |
At 1 July 2022 | 103,847 | 558,557 | 39,959 |
Charge for year | 631 | 65,329 | 62 |
Eliminated on disposal | - | - | - |
At 30 June 2023 | 104,478 | 623,886 | 40,021 |
NET BOOK VALUE |
At 30 June 2023 | 1,896 | 211,921 | 344 |
At 30 June 2022 | 2,527 | 160,317 | 65 |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Group |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 July 2022 | 653,225 | 51,215 | 1,569,712 |
Additions | 204,980 | 2,976 | 325,230 |
Disposals | (141,244 | ) | - | (141,244 | ) |
At 30 June 2023 | 716,961 | 54,191 | 1,753,698 |
DEPRECIATION |
At 1 July 2022 | 355,165 | 45,330 | 1,102,858 |
Charge for year | 104,573 | 3,507 | 174,102 |
Eliminated on disposal | (52,566 | ) | - | (52,566 | ) |
At 30 June 2023 | 407,172 | 48,837 | 1,224,394 |
NET BOOK VALUE |
At 30 June 2023 | 309,789 | 5,354 | 529,304 |
At 30 June 2022 | 298,060 | 5,885 | 466,854 |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 July 2022 | 253,290 |
Transfer to ownership | (149,460 | ) |
At 30 June 2023 | 103,830 |
DEPRECIATION |
At 1 July 2022 | 155,855 |
Charge for year | 22,713 |
Transfer to ownership | (142,877 | ) |
At 30 June 2023 | 35,691 |
NET BOOK VALUE |
At 30 June 2023 | 68,139 |
At 30 June 2022 | 97,435 |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Improvements | Fixtures |
to | Plant and | and |
property | machinery | fittings |
£ | £ | £ |
COST |
At 1 July 2022 |
Additions |
Disposals |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Eliminated on disposal |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST |
At 1 July 2022 |
Additions |
Disposals | ( |
) | ( |
) |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
9. | TANGIBLE FIXED ASSETS - continued |
Company |
Fixed assets, included in the above, which are held under hire purchase contracts are as follows: |
Plant and |
machinery |
£ |
COST |
At 1 July 2022 |
Transfer to ownership | (149,460 | ) |
At 30 June 2023 |
DEPRECIATION |
At 1 July 2022 |
Charge for year |
Transfer to ownership | (142,877 | ) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
10. | FIXED ASSET INVESTMENTS |
Group |
Unlisted |
investments |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 | 37,825 |
NET BOOK VALUE |
At 30 June 2023 | 37,825 |
At 30 June 2022 | 37,825 |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
10. | FIXED ASSET INVESTMENTS - continued |
Company |
Unlisted |
investments |
£ |
COST |
At 1 July 2022 |
Disposals | ( |
) |
At 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Pedmore House, 102 Pedmore Road, Stourbridge, West Midlands, England, DY9 8DG |
Nature of business: |
% |
Class of shares: | holding |
£ | £ |
Aggregate capital and reserves |
Profit for the year |
11. | INVESTMENT PROPERTY |
Group |
Total |
£ |
FAIR VALUE |
At 1 July 2022 |
and 30 June 2023 | 1,000 |
NET BOOK VALUE |
At 30 June 2023 | 1,000 |
At 30 June 2022 | 1,000 |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
11. | INVESTMENT PROPERTY - continued |
Company |
Total |
£ |
FAIR VALUE |
At 1 July 2022 |
and 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
Included in fair value of investment property is freehold land of £ 1,000 (2022 - £ 1,000 ) which is not depreciated. |
Fair value at 30 June 2023 is represented by: |
£ |
Valuation in 2007 | (21,598 | ) |
Cost | 22,598 |
1,000 |
If investment property had not been revalued it would have been included at the following historical cost: |
30.6.23 | 30.6.22 |
£ | £ |
Cost | 22,598 | 22,598 |
Investment property was valued on an open market basis on 30 June 2016 by the directors . |
12. | STOCKS |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Work-in-progress | 156,192 | 192,476 |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
13. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Trade debtors | 3,249,568 | 3,484,707 |
Bad debt reserve | (120,844 | ) | (12,651 | ) | (120,844 | ) | (8,673 | ) |
Amounts owed by group undertakings | 436,428 | 436,428 |
Amounts recoverable on contract | 686,792 | 1,039,932 |
Other debtors | 374,150 | 705,295 |
Tax | 11,417 | 159,181 |
Deferred tax asset | 6,060 | 25,828 | - | - |
Prepayments | 123,413 | 106,972 |
4,766,984 | 5,945,692 |
Deferred tax asset |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Deferred tax | 6,060 | 25,828 | - | - |
14. | CURRENT ASSET INVESTMENTS |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Other | 346,864 | 346,864 |
15. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Hire purchase contracts (see note 16) | - | 48,454 |
Payments on account | 134,927 | 10,809 |
Trade creditors | 822,372 | 1,608,578 |
Tax | 52,125 | 262,806 |
Social security and other taxes | 114,098 | 140,511 |
VAT | 125,594 | 428,825 | 37,863 | 341,218 |
Other creditors | (9,324 | ) | 32,034 | ( |
) | ( |
) |
Wages control | 4,787 | 3,871 | (350 | ) | (350 | ) |
Directors' current accounts | 570,147 | 520,155 | 570,147 | 520,155 |
Accruals and deferred income | 554,309 | 482,213 |
2,369,035 | 3,538,256 |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
30.6.23 | 30.6.22 |
£ | £ |
Net obligations repayable: |
Within one year | - | 48,454 |
Company |
Hire purchase contracts |
30.6.23 | 30.6.22 |
£ | £ |
Net obligations repayable: |
Within one year |
17. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
30.6.23 | 30.6.22 | 30.6.23 | 30.6.22 |
£ | £ | £ | £ |
Hire purchase contracts | - | 48,454 | - | 48,454 |
Unlimited debenture held by Lloyds TSB in banks standard form dated 30/6/04. |
Hire purchase contracts are secured against the assets to which they relate. |
18. | DEFERRED TAX |
Company |
30.6.23 | 30.6.22 |
£ | £ |
Deferred tax | 90,531 | 46,310 |
Group |
£ |
Balance at 1 July 2022 | (25,828 | ) |
Charge to Income Statement during year | 19,768 |
Balance at 30 June 2023 | (6,060 | ) |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
18. | DEFERRED TAX - continued |
Company |
£ |
Balance at 1 July 2022 |
Charge to Income Statement during year |
Accelerated capital allowances |
Rate movement |
Balance at 30 June 2023 |
19. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.23 | 30.6.22 |
value: | £ | £ |
Ordinary | £1 | 15,000 | 15,000 |
20. | RESERVES |
Group |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 July 2022 | 6,036,762 | 15,000 | 6,051,762 |
Profit for the year | 1,069,954 | 1,069,954 |
Dividends | (541,412 | ) | (541,412 | ) |
At 30 June 2023 | 6,565,304 | 15,000 | 6,580,304 |
Company |
Retained | Other |
earnings | reserves | Totals |
£ | £ | £ |
At 1 July 2022 | 5,848,166 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 June 2023 | 6,236,385 |
21. | NON-CONTROLLING INTERESTS |
Non-controlling interests total £118,576, which is made up of £19,138 brought forward from last year, plus £99,439 profit for the year ended 30th June 2023. |
C C Contracting Limited (Registered number: 02691252) |
Notes to the Consolidated Financial Statements - continued |
for the Year Ended 30 June 2023 |
22. | CONTINGENT LIABILITIES |
There were no known material contingent liabilities at the year end. |
23. | CAPITAL COMMITMENTS |
30.6.23 | 30.6.22 |
£ | £ |
Contracted but not provided for in the |
financial statements | - | 61,590 |
24. | POST BALANCE SHEET EVENTS |
There were no post balance sheet events at the year end. |